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7K <br />HENNEPIN <br />DATE; <br />TO: <br />FROM: <br />April 7, 1993 <br />John Gerhardson, Orono <br />Larry Blackstad, Senior Plann <br />SUBJECT: <br />Office of Planning and Devel^prtenc <br />SEUER CONNECTION ASSISTANCE GRANT PROGRAM <br />Accompanying are Che current very low and low incoire guidelines by family <br />size for the Metropolitan Area. My suggestion based on the assessment <br />payment requirement.*- of the CDBG program are to provide 100% grants, with <br />repayment liens, to very low income home owners. Given that home owners are <br />being provided varying time limits within which to hook up, priority should <br />be given to those required to complete the connections this summer, after the <br />July 1 program start date. This may provide the city the opportunity to <br />defer some households until the 1994 funds become available. Should funds <br />remain available ray suggestion would be to provide assistance next on a <br />sliding scale to the largest household with the lowest incomes. For example, <br />a family of four with an income of $27 000 would receive the assistance <br />grant, with lien, before a smaller family with an equal income. The $27,000 <br />figure is based on the one person low income figure. In proposing this type <br />of system the emphasis is to assist fara.lies who may not have much equity in <br />their property to use as security for financing the connection. The details <br />need to be completed hut hopefully the ioea is clear. <br />.‘U <br />ftPR 9 1SS3