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% <br />TOi Ren Moorse, City Administrator <br />FXOMt John R. Gerhardson, Public Works Director <br />OATBi November 22, 1993 <br />SUBJICTi Minnesota Housing Finance Agency Proposed Grant (MHFA) <br />Just recently we were advised that application amounts for the <br />Stubbs Bay Sewer connection grant program were far exceeding our <br />expectations. We thought initially that connection cosis would be <br />about 2000-2500 on the average. <br />However, due to very long sewer lines or necessary interio." <br />plumbing changes the costa are coming in at or near $5,000.00. <br />The City of Orono allocated approximately $16,000 of the year <br />19 Community Development Block Grant Program (CDBG) funds toward <br />the connection grant program. <br />We were just advised that there is additional funding for this <br />type of activity through the Minnesota Housing Finance Agency. <br />The funding availability is from $30,000 to $350,000 per <br />application. <br />Hennepin County Planning and Development would submit an <br />application for the City and administer the program the same way it <br />does for the CDBG program. <br />The City of Orono would reimburse the <br />administrating the program from future CDBG monies <br />monies do not allow for administrative expenses. <br />County for <br />as the MHFA <br />The County must submit an application by December 6, 1993. <br />Therefore we would like conceptual approval at this time to proceed <br />with the understanding that the City has the right to cancel <br />participation if for any reason we wish to do so.