Item Coversheet

9.B.1.


Shakopee City Council
August 7, 2024

FROM:Michael Kerski, Planning/Development Director
TO:Mayor and Council Members
Subject:
Proposal from Scott County CDA on creating an Owner Residential Rehabilitation Loan Program.
Policy/Action Requested:
Approve the Proposal from Scott County CDA for a Rehabilitation Loan Program and prepare a Joint Powers Agreement per these terms to be brought back to both bodies for approval.
Recommendation:
Approve concept.
Discussion:

In 2023 the Minnesota Legislature approved a new 0.25% Metro Area Sales and Use Tax for housing called the Local Affordable Housing Aid (LAHA) to the counties on the 7-county metro area.

 

The city of Shakopee is expected to receive $212,327.70 from tax receipts in 2024.  

 

The CDA has proposed, through a Joint Powers Agreement, the creation of a owner occupied rehabilitation program in the city of Shakopee with a minimum loan of $15,000 and a maximum of $35,000.  The program would be available to homeowners that are at 80% or below the Area Median Income as defined by HUD.  

 

The law currently does not allow for an administrative fee but the CDA has proposed using 10% of the funds for capital rehab needs of the CDA-owned rental units in the city of Shakopee.

Budget Impact:
ATTACHMENTS:
Description
CDA proposal