CC_Minutes_2011_0725 - Laserfiche WebLink

Home

Regular City Council Meeting Monday,July 25,2011 Page 15 Councilmember Willmus asked Ms. Kelsey to address the mechanics of the HRA's participation in the Rondo Land Trust program. Ms. Kelsey advised that this was a tool used by the HRA to prevent people from being removed from their homes between eviction notices and final foreclosure of the home. Ms. Kelsey noted that this provided experts to work with these people and provide assistance for families if they have the economic means to stay in their homes, through buying down their mortgage to a more affordable level. In this program, Ms. Kelsey advised that the homeowner would sign over ownership of their land to the Trust and lease it back for 99 years. Ms. Kelsey advised that only two (2) had been done to-date, one in Shoreview and one in St. Paul. Ms. Kelsey noted that this infrequency was due in large part to lack of timely informa- tion to assist families before it was too late. Councilmember Johnson reviewed an interesting analogy he received from some- one in the mortgage industry, likening the housing market return and its timing with that of a failing collegiate sports team. Councilmember Johnson noted it was like a new coach coming in, and taking four(4) years to improve the performance of the team, similar to the need for existing adjustable rate mortgages (ARM's) to expire and more healthy loans taking over. Councilmember Johnson noted this would then allow the mortgage and banking industry to improve performance and return to a healthy position. Chair Maschka concurred, along with noting the younger generation cycle in their marital and employment status over that 3-5 year timeframe. Chair Maschka noted that he and Councilmember Pust had also discussed the look of retirement going forward, and opined that it would be substantially different than that of previous generations; creating the need for review of existing and fu- ture policy. Chair Maschka noted the changing health and lifestyles needs of the new retirees and their longevity; and the relevancy sought by this new retirement generation; and the opportunities available for housing and other community needs. Mayor Roe and Councilmember Pust noted changes in retirement ages; and from a federal perspective to raise those retirement ages to address financial issues. Councilmember McGehee questioned if the HRA had a specific target number for affordable housing units for Roseville, whether City or Metropolitan Council pre- ferences. Ms. Kelsey pointed out that the 2009 Comprehensive Market Study done would need to be updated every five (5) years; and that the market and demand would also change. Ms. Kelsey noted an update was scheduled for2014; and clarified that the study provided specific numbers in various categories and price points for