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HomeMy WebLinkAbout1994-024 EDAR1 Commissioner Todd Paulson introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 94 -24 RESOLUTION ADOPTING HOUSING COMMISSION RECOMMENDATIONS REGARDING THE ECONOMIC DEVELOPMENT AUTHORITY'S HOUSING REHABILITATION DEFERRED LOAN PROGRAM WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center (EDA) administers the Brooklyn Center housing rehabilitation deferred loan program; and WHEREAS, the goals of the housing rehabilitation deferred loan program include improvement of the City's housing stock and the City's neighborhoods; and WHEREAS, the EDA desires to administer the housing rehabilitation deferred loan program to provide the greatest benefit to the City's housing stock and neighborhoods; and WHEREAS, the EDA Board requested the City's Housing Advisory Commission to review certain issues and policies relative to the housing rehabilitation deferred loan program; and WHEREAS, the City's Housing Advisory Commission has made certain recommendations regarding the EDA housing rehabilitation deferred loan program; and WHEREAS, the EDA Board has received and reviewed the Housing Commission recommendations. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center to adopt the following recommendations of the City's Housing Advisory Commission relative to the housing rehabilitation deferred loan program: 1. Length of residence shall not be an eligibility requirement for the rehabilitation deferred loan program. 2. The grant repayment security lien shall be increased from five years to ten years and the lien amount shall be reduced five percent (5 per year for years one through five of the lien and fifteen percent (15 per year for years five through ten of the lien. 3. The housing rehabilitation deferred loan program shall include an exterior maintenance standard which shall be made a requirement of the program. Adoption of an exterior maintenance standard shall be adopted by a separate motion or resolution by the EDA. 1 EDA RESOLUTION NO. 94-24 4. No second deferred loans shall be awarded to applicants until there are no first time applicants remaining on the waiting list. Exceptions will be made only in extraordinary circumstances related to damage to the property as a result of events beyond the control of the applicant or relating to health and safety concerns, such as failure of plumbing, heating or electrical systems, or as determined by the program administrator. In such circumstances, provided that funding is available, the borrower, if still eligible, can receive assistance limited to correcting the damaged or failed system(s) only. No other eligible work can be carried out, except in the extraordinary circumstances described in this paragraph. This policy shall be applied to residents added to the waiting list after July 12, 1993. 5. On homes valued at $55,000 or less, as determined by the City Assessor, staff will prepare a cost repair estimate to determine if the property can be brought up to Section 8 standards with the funds available. Cost repair estimates shall also be made on properties where repairs necessary to bring the property up to Section 8 standards involve major repairs to the majority of the home's systems, including mechanical, plumbing, electrical, windows and doors and exterior, including roof and siding. BE IT FURTHER RESOLVED that the following amendments to the housing rehabilitation deferred loan program approved by Hennepin County shall be approved for the Brooklyn Center EDA's housing rehabilitation deferred loan program: 1. For all housing rehabilitation deferred loans approved after March 1, 1994, the maximum loan amount will be $15,000 for applicants who cannot be accessed to the Minnesota Housing Finance Agency (MHFA) deferred loan program funds either because household income is too high or because no MHFA deferred loan funds are currently available. 2. An additional $5,000 may be added to the maximum loan amount for households requiring accessible improvements. These additional funds can also be used for the abatement of hazardous materials, such as asbestos, lead -based paint and radon. 3. The policies and directives approved in this resolution shall become effective immediately upon approval of the resolution. June 27, 1994 Date Todd Paulson, President 1 EDA RESOLUTION NO. 94 -24 The motion for the adoption of the foregoing resolution was duly seconded by commissioner Celia Scott and upon vote being taken thereon, the following voted in favor thereof: Todd Paulson, Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann; and the following voted against the same: whereupon said resolution was declared duly passed and adopted.