Agenda - Council Work Session - 05/12/2026

Home

family of four in Ramsey is $132,400. The ownership projects need to benefit people with household incomes of less than 115% AMI, with preference given to household incomes less than 80% AMI. Rental projects (construction or emergency renal assistance) are limited only to those incomes below 80% AMI. The money can be used in the form of a loan or a grant. There can be a cost -share component. Any money that is repaid from a loan or a claw -back provision will need to be re -used for affordable housing. Staff met to discuss what we are seeing in the field based on code enforcement complaints, business interactions, and other anecdotal information as to what might be beneficial to the community. Staff also met with Anoka County Housing staff to discuss various program options. The following are some ideas that staff feels will be beneficial while not majorly impacting staff time. Single -Family Home Exterior Improvements Large -cost projects like new windows, new siding, new roofs, (potentially) repaving driveways, utility connections, and large tree removal can be cost -prohibitive for families at and below 115% AMI. These types of improvements to a home can have positive effects on the surrounding neighborhood. These items can usually be planned for several months, and the city can offer an application window scheduled around when staff has more time. Cost range estimate: $10,000 to $50,000 per house. Single -Family or Town home Interior Improvements Having a furnace, water heater, or air conditioner replaced can be an urgent and costly issue. Cost range estimate: $1,500 to $10,000 per home. Construction Grant for Multi -Family Development Assist a developer in constructing multi -family rental units with a portion dedicated to meeting affordability standards. Cost range: using up to all the funds the City has received and is holding. Issues to Consider In putting together a program or policy on how to spend the money, staff is taking into account the following issues when making recommendations to the Council: Income Verification: Staff will be responsible for verifying the recipient's income and household size for any of the home -improvement programs. This commonly -accepted way of doing this is to examine the recipient's most recent tax returns. Some jurisdictions rely on a "self reporting" form, but that would become extremely time -intensive should allegations of fraud be made. In a multi -family situation, the developer/management company will be responsible for reporting to City staff and likely will be using additional money from other sources that will require reporting anyway. Administering Payment: Staff will be responsible for paving the recipients of the funds and then assuring that the money is spent for its intended purpose. Our program could be set up in a wav that the contractors are paid directly —both down and final payments. Admin Fees: Right now, cities cannot use any of the money to cover staff time in administering these programs. There may he some legislation introduced this year to allow cities to tack on an administrative charge for the grants or loans. Repayment of Loans: Staff does not have the capacity to process monthly loan payments. Should a loan program be desired, cities can contract with third party agencies to administer one, but those costs cannot be funded through LAHA money. Often, these agencies tack on a fee for their services that is paid by the homeowner or an arrangement through the citv's general fund. The city could structure a program as a zero-percent/zero-payment/forgivable after X-years program (essentially a lien on the home) so that the money is not used to "flip" a house or build resale value instantly before selling. Should it sell before the specified time, the money is paid back at the time of closing in full or by a reduced amount. Multi -Family Grants: The Council would need to be committed to assisting a developer constructing multifamily