06-30-1980 Council Minutes - Laserfiche WebLink

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� ' , Page 40 June 10 , 1980 �. Walter R. Benson City of Orono , , Box 66 Crystal Bay, Minnesota 55323 SUBJECT: Urban Hennepin County Advisory Committee - Alternative Housing On February 10 , 1980 , the Advisory Committee noted in a letter to you that Orono should continue its exploration of assisted housing alternatives. As Orono ' s represent�tive on the Committee, I agree with this suggestion. I have no problem with the Council ' s current policy of using available Federal funds for home rehabilitation; however , from a practical standpoint, the need in this area will gradually diminish and there is an ever increasing need for senior citizen housing. Most of the Area 5 municipalities have done, or are doing, something about this issue and I feel that the current administration in Orono should initiate a plan to meet this very important social need. Personally,' I am not in favor of programs that increase our taxes and the rent subsidy program will certainly do this, due to the long-term commitments for such subsidies. The rent subsidy program, however, has a much greater payback to the community than any other use of available funds and if we do not get the maximum benefit of available funds, 'other municipalities will, and the tax dollars of our local citizens will be paying for the programs of other communities. Here' s an example - Our $70 , 000 a year spent on home rehabilitation is a one-shot deal, and no one knows how lo�ng it will continue. Using the Boardwalk Apts. in Wayzata as an example, the tenants are receiving approximately $200 , 000 annually in rent subsidies and the subsidies are guaranteed for 20-40 years. The $200 ,000 actually represents additional income to��the 80 f amilies living there. Nationwide, the Federal Government is committed to over 100 billion dollars in rent subsidies, and as I noted above, we will be paying taxes to support the �program without receiving any benefit.