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HomeMy WebLinkAbout08/13/1996BOOK AGENDA MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY AUGUST 13, 1 7:00 P.M. CITY HALL MAPLEWOOD ROOM 1. Call to Order 2. Roll Call 3. Approval of Minutes a. July 9, 1996 4. Approval of Agenda 5. Communications 6. Unfinished Business a. Truth-in-Housing Code Change- Evaluator Licensing b. QSA Maplewood Housing Program Study 7. New Business 8. Date of Next Meeting a. September 10, 1996 9. Adjournment c:HRAAGEND.MEM MINUTES OF THE MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY MEETING OF JULY 9, t996 I. CALLTO ORDER Chairperson Fischer called the meeting to order at 7 p.m. 2. ROLL CALL HRA Commissioners: Lorraine Fischer, Gary Pearson, Larry Whitcomb, Joe O'Brien Steve Quam and Dave Sunicht of QSA Staff: Ken Roberts, associate planner, and Melinda Coleman, director of community development A. Chairperson Fischer and staff welcomed Joe O'Brien, the newly-appointed HRA commissioner. 3. APPROVAL OF MINUTES A. May 14, 1996 Commissioner Pearson moved approval of the minutes of May 14, 1996, as submitted. Commissioner VVhitcomb seconded. Ayes-all 4. APPROVAL OF AGENDA Commissioner Whitcomb moved approval of the agenda as submitted. Commissioner Pearson seconded. Ayes-all 5. COMMUNICATIONS A. Summer Tour--July 29, 1996 Ken Roberts, associate planner, reported on the upcoming tour. He said the commissioners will be called soon to confirm attendance. 6. UNFINISHED BUSINESS There was no unfinished business. 7. NEW BUSINESS A. QSA Maplewood Housing Program Study---Steve Quam Ken Roberts, associate planner, presented the staff report and answered questions. Steve Quam of QSA offered some personal background information. He then spoke about the proposed housing program study. Mr. Quam said the three goals of the program in Maplewood were: (1) keep the market viable and values increasing by upgrading and improving houses, (2) eliminate problem housing, and (3) create a sense of unified action in the housing program. He said Maplewood has a variety of age, character, and value in housing and these are often mixed in neighborhoods. Mr. Quam and the commission Maplewood HRA Minutes of 07-09-96 -2- reviewed the various geographic characteristics of Maplewood. They also discussed housing programs in other parts of the metropolitan area. Mr. Roberts asked for confirmation of the two major recommendations as scattered site housing replacement and formation of an advisory housing task force. These recommendations were then discussed. Melinda Coleman, director of community development, said the city council seems interested in encouraging a community/ neighborhood involvement with the city. Dave Sumnicht of QSA was also present. Mr. Sumnicht also answered questions about housing programs and QSA's role. Commissioner VVhitcomb moved the Maplewood Housing and Redevelopment Authority recommend accepting the proposed physical improvement and procedural recommendations in the City of Maplewood Housing Program Concepts Evaluation for improving the housing stock in Maplewood. The Maplewood Housing and Redevelopment Authority will also table further action and direct staff to confer with the city manager about the possibility of a council workshop session. Commissioner Pearson seconded. Ayes-all B. Truth-in-Housing Code Change Ken Roberts, associate planner, presented the staff report. Commissioner Fischer suggested that the total Maplewood truth-in-housing program needed to be reviewed. Melinda Coleman, director of community development, asked that the commission address Stephen Dellwo's request to be a Maplewood housing inspector based on his Minneapolis license. Ms. Coleman said the Minneapolis testing for a housing inspector seems to be as good as that in St. Paul, or even better. Mr. Roberts said that St. Paul was not giving the test this year because they had a sufficient number of inspectors. Therefore, someone new to the business would not be eligible to be a Maplewood inspector because Maplewood now requires a St. Paul license. The commission discussed the wording of the ordinance as it pertains to revocation of licenses. Commissioner VVhitcomb moved the Maplewood Housing and Redevelopment Authority table the truth-in-housing code evaluator licensing amendment for more information about the definition of, and criteria for, revocation/cancellation/surrender of licenses used by the cities of Minneapolis and St. Paul. Commissioner Pearson seconded. Ayes-all 8. Date of Next Meeting A. August13,1996 August 13, 1996, is a tentative date for the next meeting. Commissioner Fischer thought the commission should invite the realtors to the meeting to talk about why truth-in-housing compliance is not what it should be. She suggested that the current inspection form could also be evaluated. Maplewood HRA Minutes of 07-09-96 -3- Commissioner O'Brien spoke about a St. Paul housing rehabilitation program that he is familiar with. He said a study on the impact these project had on neighborhoods in creating additional property maintenance is nOW being done. The commission discussed the use of tax-increment financing. 9. ADJOURNMENT The meeting adjourned at 9:51 p.m. MEMORANDUM TO: FROM: SUBJECT: DATE: City Manager Ken Roberts, Associate Planner Truth-in-Housing Code Amendment - Evaluator Licensing August 7, 1996 INTRODUCTION The city council directed city staff to change the licensing requirements for evaluators in the truth-in-housing ordinance. The current ordinance requires evaluators in Maplewood to have a Saint Paul truth-in-housing evaluator's license. BACKGROUND On July 9, 1990, the Maplewood City Council adopted Ordinance Number 668, truth-in-sale of housing. This ordinance set the requirements for truth-in-housing in Maplewood including the licensing requirements for housing evaluators. Specifically, Section 9-240(a) of the code has the language about the licensing of housing evaluators. It says "the city will only approve housing inspectors that have passed competency tests as truth-in-housing evaluators in Saint Paul. The housing inspectors must submit certification papers to Maplewood from the city of Saint Paul as truth-in-housing evaluators. The city of Maplewood must license each housing inspector that works in the city. Maplewood will automatically revoke a housing inspector's license if it is revoked in Saint Paul." On April 22, 1996, the city council approved a truth-in-housing license for Stephen Dellwo. Mr. Dellwo has a Minneapolis truth-in-housing license and had a truth-in-housing license in Saint Paul that was later revoked. On May 20, 1996, the council gave the attached ordinance first reading. The council, however, had several questions they wanted staff to answer before proceeding with the code amendment. DISCUSSION The proposed code change would allow evaluators with either Saint Paul or Minneapolis truth-in- housing licenses to be evaluators in Maplewood. In addition, the proposed code change also would strengthen the language in this part of the code. I spoke to the administrators of the truth-in-housing programs in Minneapolis and Saint Paul about the licensing of the evaluators. Both said that they do not consider the actions or practices of an evaluator in the other city when reviewing the evaluator's license in their own city. That is, they would only consider the actions of the evaluator in their city when reviewing the license of the evaluator. They did suggest that the city cancel an evaluator's license if that person violates the law or the truth-in-housing evaluator's code of ethics. The council asked about the number of inspections that a house may have before the owner sells it. These might include inspections by the Farmers Home Administration (FHA) and Veterans Affair (VA) for potential buyers using one of these types of financing. That is, if a house buyer wants to use FHA or VA financing, these agencies require one of their inspectors to inspect a house before approving a loan. These agencies require their own inspections to ensure that the houses they lend money for meet their standards. Home sellers do not know what type of financing a buyer is going to use when they put their house on the market. Once a buyer selects a particular house, then the buyer has to satisfy the lender's requirements before they can close on the purchase. If that the lender requires another inspection to meet its own standards, it is out of the control of the seller. The truth-in-housing inspection is to provide all potential buyers with more information about the house before they decide whether to buy it or not. Home sellers are to have the truth-in-housing evaluation done before they show or list the property for sale. The truth-in-housing evaluators are independent contractors and set their own fees and schedules. RECOMMENDATION Adopt the code change on page 3. kr/tiheval.mem Attachment: Code Amendment Ordinance ORDINANCE NO. AN ORDINANCE ABOUT THE LICENSING OF TRUTH-IN-HOUSING EVALUATORS The Maplewood City Council approves the following changes to the Maplewood Code of Ordinances: SECTION 1. This section changes Section 9-240(a) of the code as follows (I have underlined the additions and crossed out the deletions.): (a) No person shall fill out a truth-in-sale-of-housing disclosure report in Maplewood without having a valid certificate of competency or truth-in-housin.q evaluator's license from Maplewood. The city of Maplewood must issue the certificate of competency or license. Maplewood ~ will only approve people as housing inspectors or evaluators that are licensed have-i~asse~l co~m~:tcncy t,~st: as truth-in-housing evaluators in Saint Paul or Minneapolis. The housing inspectors must submit a copy of their truth-in-housin.q license and any certification papers to Maplewood from the city of Saint Paul or Minneapolis. c: t,'?,h !n hc~:~n,~ =,::l'~:*,cr~. :F-he-c~-y-ef Maplewood must license each housing inspector or evaluator that works in the city. Maplewood will automatically revoke or cancel a housing inspector's license if it is revoked or canceled for violation of law or violation of code of ethics or surrendered in either Saint Paul or Minneapolis. The City of Maplewood may require the passing of a test that shows the inspector's knowledge of the city's housing code. The city may then issue a certificate of competency which is valid for one year. The city may issue renewals of all such certificates. If a certificate of competency lapses for one year or more, the person who held such certificate shall reapply to Maplewood for renewal of such certificate. No holder of a certificate of competency or license from Maplewood shall allow another person to use said certificate or license. SECTION 2. This ordinance shall take effect after the city council approves it and the official newspaper publishes it. The Maplewood City Council approved this ordinance on ,1996. TO: FROM: SUBJECT: DATE: MEMORANDUM City Manager Ken Roberts, Associate Planner Maplewood Housing Program Concepts Evaluation July 31, 1996 INTRODUCTION The city council agreed to have Steve Quam of Quam, Sumnicht and Associates (QSA) do a study about possible housing rehabilitation programs for substandard housing in Maplewood. QSA prepared the attached Housing Program Concepts Evaluation for Maplewood based on the direction of the city council and city staff. The housing program study outlines the possible programs to help update housing in neighborhoods and the funding sources and the cost effectiveness of such programs. BACKGROUND On November 14, 1994, the city council approved a $500 budget transfer for Quam, Sumnicht and Associates to do a housing program concept evaluation study. On July 9, 1996, the HRA reviewed the proposed housing program concepts evaluation for Maplewood. The HRA recommended accepting the proposed physical improvement and procedural recommendations from the housing evaluation. The HRA also tabled further action on the housing plan to allow staff to set a workshop meeting with the city council. DISCUSSION The Housing Program Concepts Evaluation (starting on page 2) lists the types of possible housing programs for updating neighborhoods in Maplewood. In addition, the study also lists possible funding sources and the cost effectiveness of housing programs. The Director of Community Development asked the City Manager about meeting with the council at a workshop session to discuss the proposed housing program concepts evaluation. He said that the council could meet to discuss the housing plan on October 7, 1996. The HRA needs to decide how to present the housing plan to the city council. That is, should QSA, city staff or the HRA present the study to the city council? I recommend that the HRA ask Steve Quam from QSA to attend the workshop meeting to present the housing study and answer questions from the council. RECOMMENDATION Review the proposed housing program and decide how to present the plan to the city council. kr/p:misc/qsa-3.mem Attachment: 6-12-96 QSA Maplewood Housing Program Concepts Evaluation June 11, 1996 Ms. Melinda Coleman Community Development Director City of Maplewood 1830 E. Country Rd. B Maplewood, IVIN 55109 Re: Maplewood Housing Program Concepts Evaluation Dear Ms. Coleman: We are pleased to submit the enclosed Maplewood Housing Program Concepts Evaluation. This has been prepared at the request of the Maplewood City Council for the benefit of the Council and the HRA. QSA appreciates the opportunity to be of service to Maplewood, and we look forward to presenting the ideas contained in this Evaluation to the HRA and the City Council, along with illustrative materials for presentation. After reviewing this, if you have any questions, please contact me. ~oY°Urs truly, 6421 James Avenue South Richfield, Minnesota 55423 Telephone 612.861.2026 e-mail qsa@bmn.net Housing Program Concepts Evaluation City of Maplewood June, 1996 Quam, Sumnichl' & Associal:es, 1~c. Maplewood Housing Program Concepts Evaluation Introduction The Maplewood City Coundl has requested that Quam, Sumnicht and Assodates, Inc. (QSA) provide this housing program evaluation and report. Scope and Purpose QSA's evaluation is to provide the City Council and the HRA with a summary of the following Maplewood program issues: The type of programs (home replacement, existing home "transformation", whole district redevelopment, etc.) that would be most effective in updating neighborhoods and conserving existing open lands, e The sources of funding that might be available to Maplewood (internal fund loans, private local lender participation, TIF financing, etc.) to initiate appropriate housing incentives, and o The cost effectiveness of the initiatives (For example, could loans to start a program be recovered, along with administrative costs?) and the positive impact they might have on the taxes and revenues of the city and its school districts. 1 Backsround The aging of the "Baby Boom" generation means a decline in the number of new families being formed, and hence a decline in the demand for starter homes, particularly those of the type built through the 1960's. First ring cities are threatened if housing becomes "market obsolete". Left to its own consequences, a perception of spreading deterioration and diminished positive citizenship can lead to disinvestment. If this occurs, the scope and cost of programs to restore the neighborhoods becomes unmanageable. A Metropolitan Council study entitled, Housing Markets in 2000, suggests that the course of events in these communities may follow any of three trends: -If the current residents like the area they are living in well enough, they could decide to stay in their homes and remodel or add space to suit their needs. If this situation is widespread in the neighborhood, the condition of the homes and the desirability of the neighborhood could be greatly enhanced. -Owners could sell their homes at lower prices than they had hoped for, enabling individuals or families with low or moderate incomes to buy the houses. This situation, if widespread, could provide opportunities for home ownership to people who rent housing that may be inadequate for their needs because they cannot afford to buy the lowest-priced home on the market. -Owners could buy new homes and rent their current homes as either a short- term or long-term solution. If this occurs to many houses in a particular area, neighborhoods that had been primarily owner-occupied housing could gradually become areas with a greater mix of owner occupied and rented housing. Poor maintenance of a number of homes in a given area could influence other homeowners to move from the area, perhaps resulting in additional rental housing. Housing Markets in 2000, pages 16,17 In communities that want to provide contemporary quality housing for growing families, there is a strong sentiment to assist in the accomplishment of the first of these scenarios. By encouraging quality home improvements, and even new home replacements, in existing areas of the community, the condition of the homes and the desirability of the neighborhoods will be significantly enhanced, rather than eroded, while at the same time, the risks incident to decaying or unstable neighborhoods can be avoided. 2 Framework for Evaluation The Metropolitan Livable Communities Act. New recognition of the need for communities to take an active role in the maintenance and improvement of their housing, is evidenced by the recently enacted Metropolitan Livable Communities Act. The Urban Strategies Task Force states: The challenges cities face, such as deteriorating neighborhoods, crime and drugs, need the cooperative efforts of public, private and business interests to solve. Cities should take the lead in developing local and regional strategies that will assist them in dealing with growing neighborhood problems. Report on Urban Revitalization, 1994 Maplewood has elected to partidpate in this program. As a consequence, a set of recommended Housing Goals, Polities and Activities has been developed. The following facts are pertinent to these goals: 1. Metropolitan benchmarks state that at least 69 percent of ownership and 35 percent of rental housing in a community should be affordable. Because of the substantial portion of housing developed prior to the 1970's Maplewood exceeds these benchmarks. 2. At least 29 percent of housing units should be other than single-family detached. Again, Maplewood is dearly in compliance and, given market trends and land availability issues, is likely to remain so without extraordinary city initiatives. 3. A dty goal is to continue to provide dispersed locations for a diversity of housing styles, types and price ranges. A further goal is to maintain or strengthen the character of existing neighborhoods by addressing the problem of deteriorating properties. One activity to achieve this goal, is HRA partidpation in programs to help property owners with home maintenance and improvements through loans and, if available, grants. Comprehensive Plan Legislation. Legislation governing the adoption and updating of comprehensive land use plans, calls for the updating of Maplewood's comprehensive plan by the end of 1998. Existing Government Programs. A variety of programs exists to assist various housing needs, at the Federal, State, Regional, and County level. While too ntunerous to outline within this report, (see appendix) QSA has considered their existence and purpose, and has selected relevant programs for discussion in the context of its evaluation of current Maplewood needs. 3 Program Goals At the inception of this evaluation, with input from Maplewood staff, the following goals were developed, against which to evaluate recommended programs: °Keep the Maplewood housing market viable and values increasing by constantly improving and upgrading housing, and · Eliminate problem housing, inddent costly services and enforcement by removing housing which can only deteriorate because its basic quality is inherently low. QSA Observations-Underlying Maplewood Characteristics After physically reviewing the community, and evaluating information about Maplewood, QSA observes the following community characteristics: · Maplewood is characterized by a discontinuity of identity both as to geographic shape and boundaries, and as to bonding social structures (such as school and postal districts). · Established Maplewood neighborhoods mix properties of disparate quality, esthetics and value, to an extent that might confuse investment and a clear sense of development potential. · Despite these observations, a better than average 82 percent of its residents (according to its 1995 survey) regard Maplewood's sense of community as excellent or good. Additional Program Goal Based upon these observations, QSA has adopted an additional Program Goal: · Create a sense of unified action in a housing program that is seen to confer a benefit on the whole community and each of its residents. The basis for this addition is two-fold. First, local government should do enough in any housing program so that the effort creates an ongoing faith in the commtmity's commitment to better its housing. Otherwise, spot efforts or minimal assistance may result only in temporary or isolated results. A larger, broadly understood city commitment to ongoing improvement has the benefit of catalyzing additional private action throughout neighborhoods, based on its residents' faith that their investments will yield a positive return. Second, Maplewood is unique. While its physical appearance and configuration militate against a strong sense of community, nevertheless, one exists. It is critical to tap this asset, to overcome what is otherwise a difficult program goal--that of achieving housing activity that is symbolic to, and representative of the whole community. 4 Evaluation of Program Types and Funding Sources. QSA has selected the following four types of Housing Activity for evaluation. Remodelling and Repair. Typically aimed at low to moderate income households, this activity is essential to any healthy community. As virtually every city does, the dty of Maplewood, through its HRA, already participates or plans to participate in this type of Housing program through Metropolitan Council HRA and MI-IFA assistance. Implementing this type of assistance requires targeting and informing appropriate homeowners and, in some cases, as in the case of Ramsey County CDBG and HOME programs, applying to appropriate administering agencies. Maplewood staff and the HRA are well-qualified to pursue and administer this desirable type of ongoing assistance, which typically does not require a major municipal revenue source. Home Replacement. This activity addresses the most basic redevelopment problem faced by fully developed neighborhoods. Since some of the housing in older Maplewood neighborhoods was built before zoning and building restrictions were in place, properties exist that are deteriorated and inconsistent in character from the rest of the neighborhood. There is no more effective single action that can be taken in a small residential neighborhood, than to remove existing eyesore property, replacing the worst home, with a new home that sets a new area quality standard. QSA recommends that a program for this activity be developed and presented to the HRA and City Council for approval. While some private and government programs exist for this purpose, such as Habitat for Humanity, or CDBG grants, typically these are limited to low income replacement housing. Since Maplewood is in no present danger of falling below Metropolitan Council benchmarks for this type of housing, it would be beneficial to explore municipal funding, utilizing scattered site Tax Increment, for somewhat higher value home replacement. An example recommendation is described below. 5 Existing Home "Transformation". The term "Transformation" is used to define a major reconstruction of an existing home that, rather than simple remodeling, converts it to a market competitive home that offers the amenities found in a new home. QSA's experience indicates that the market will not bear the cost of this type of reconstruction, without city loans or grants. In addition, banks are hesitant to lend on this type of loan, first because the "transformed" home may not appraise out at a price high enough to justify the loan, and second, because the process (which first tears apart the collateral, before improving it,) seems risky to an uninvolved lender. In another community, QSA has successfully helped develop a home "Transformation" loan program through a major lender. QSA suggests that this type of program be deferred until a successful home replacement program is in place in Maplewood. After that, the improving climate in older neighborhoods will provide a greater inducement to residents who live there, to make a major investment in their existing homes, and it will be easier to get Transformation homes appraised at higher values. Funding for this type of activity would typically come from a revolving loan fund, from the city. District Redevelopment. In communities where major deterioration has occurred, whole district redevelopment is sometimes advisable. Funding is typically from Tax Increment Financing, with possible Livable Communities Act funding, or Federal low income assistance for some portion. QSA does not recommend this approach in Maplewood. Except where it might be appropriate to convert residential fringe areas to commercial, there are no major areas in Maplewood that have reached the stage of deterioration that would suggest this costly and wholesale approach. Other. Some types of housing development, such as New Subdivision Development, or Multiple-Family Unit development are not evaluated here. The character of Maplewood limits the areas in which new subdivisions can be created, and the market generally drives such development without unique city programs or subsidy. The creation of new multi-family housing typically occurs by traditional means of development or redevelopment, and is typically market driven. Evaluation of special Niche Housing. for example, executive attached homes, senior housing or cluster housing typically requires separate market studies, and usually occurs at the initiative of a developer. 6 Physical Improvement Recommendation QSA recommends that Maplewood initiate a program for new home replacement. The program might begin with as few as one or two homes, if the concept is properly presented. An ongoing target of additional homes should follow. The program should start by tearing out old eyesores and replacing them with new, higher value homes. The prospect of developing a second program to encourage residents to "Transform" their existing homes should remain a possibility. At present, the mix of housing in Maplewood does not create an imminent demand for larger homes that would impel residents to transform existing housing into market competitive larger homes. But, after eyesore homes have been improved in given neighborhoods, this will encourage private citizen improvement of housing, including, as a natural consequence, some home transformations, if the city is willing at that time to help encourage it. For the present, fix the worst first. Procedural Recommendation QSA recommends that the City Council enlist and appoint residents from each planning district of the community to serve as an advisory housing task force for the following action to: · Identify an initial target area for housing improvement that would a. Symbolize the whole community to most residents, and b. Send a signal that Maplewood's residential areas will not be permitted to decline, · Identify that area's most critical housing improvement need · Select and recommend a prototype project (or projects) to sponsor a. Using the Program Types and Funding Sources outlined below b. Working closely with dty staff and coundl/HRA liaison, · Help support and broadly publicize the prototype project, and · Expand into broader program activity, in more geographic areas. 7 Rationale Based upon the need to begin with isolated homes, in individual neighborhoods, it is important to create a sense of broader community involvement. A task force of representatives from distant neighborhoods would tap into the sense of community from which Maplewood benefits, (and address the fact that residents feel a stronger tie to their own neighborhoods than to the community as a whole.) The planning and publidty effort will then be truly community wide. While first prototypes will not be constructed in every neighborhood, the input of residents from other neighborhoods can help identify the areas of concern that represent, to all areas, a threat of community decline. In addition, the selection of a separate group of respected community dtizens (rather than solely members of the Planning Commission, the HRA, or the Coundl), will communicate to the community, the dty's intent to take a serious new initiative specifically tailored to assure the improvement of Maplewood housing. It will also permit the task force members to devote their meeting time exclusively to this goal. (It might also serve a second purpose, in providing valuable community evaluation for the 1998 revision of the Housing portion of the Comprehensive Plan.) The cost of this procedural recommendation would primarily be city staff time, with some possible outside consultation. The source of funding could be made a part of the general budget. 8 Typical Example While the specific decisions about new prototypes should be developed by the task force, this hypothetical example illustrates what might be pursued. An area of Maplewood that represents "typical" older Maplewood might be selected by the task force for its first prototype. An area near English Street south of Frost might signify an area where there is concern that the effects of aging nearby St. Paul housing might spread into Maplewood. A consideration in selecting the area might include the desire to maximize the potential for new home development along the abandoned rail line. The advantage that new homes already exist along Frisbie Avenue might help other nearby residents to get higher appraisal values when improving their homes in the future. Funding for the project could be from a general fund loan, repaid by tax increment. (Typically school districts recover more from the funding they receive when new children move into the new home, than they forego in new tax increment.) An older home appraised at $60,000 could be acquired by voluntary purchase, and razed. The lot, then worth $25,000 could be sold to a private builder under an agreement prescribing design and value requirements. A new $145,000 home might then be built on the site. Over approximately twenty years, the tax increment it would generate would pay off the lot write-down, (from $60,000 to $25,000) along with reasonable site clearance and administrative costs. (See example on Appendix B). Conclusion Over the next decade a general fund loan of $200,000 to $300,000 could potentially produce new homes in all thirteen planning districts of Maplewood. Revolving use of the funds would produce a permanent commitment likely to spur confidence among Maplewood's residential homeowners. After a few years, when word of the program spreads, a second program to help homeowners "Transform" their own homes would be appropriate, creating a rich selection of older, well-kept homes, thoroughly "transformed" market competitive homes, and design-integrated new homes. The result of active planning and commitment will eventually spur many times the dty's investment in owner initiated upgrades and improvements, even in areas where no public money has been provided. The result will be seen in spin-off benefits both in new tax base revenues and in citizen confidence in Maplewood. 9 Appendix A Program Types-Tools for Physical Development · Public - City Sponsored CDBG (low income) HOME Program (low to moderate) TIF (Removal and replacement) Transformation (grant/loan) MFHA constxuction (low income credits) · Joint Venture - City acquires/Private rebuilds Home Transformation CDBG (low income) &HOME Program with e.g. Habitat Pilot Projects · Public/Private - City Encouraged CDBG (low income) & HOME Program with e.g. Habitat acquiring MFHA (low income) deferred loan and fix up programs Publicity and Support Seminars to spur private remodeling/rebuilding Advisory services to the public · Private - Market Driven CRA Creative Lending Programs Zoning Changes Funding Sources .CDBG -Low income 50% of median income -Second mortgage, 5 years - 50% back, 10 years could be a forgiven grant -Federal money involves relocation costs if property is acquired · HOME program -Grant to acquire property (Davis/Bacon act to govern) -Can be housing grant for city created rental housing (backlog) · City resources -Loan from the general fund for TIF scattered site redevelopment -General budget allocation to fund citizen task force involvement -Revenues from Charitable Gambling · Livable Communities grants -Demonstration projects -Community driven projects 'MFHA -Mortgage and home ownership assistance loans -Low income and new housing ~ax credits -Great Minnesota Fix-up Fund -Mortgage Revenue Bonds and Credit Certificates