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Inc, 861-2026 8/13/98 �, J 1;5 2 AEI [ 3/6 QSA, Roseville Cornerstone PrograMT M "Contemporary Living Loans" The Roseville Cornerstone TM "Contemporary Living Loans" program seeks to encourage the well-designed reconstruction of typical older Roseville hones to make then market competitive. The use of a qualified designer assures that there will be endu 'e value both to the homeowner and to neighboring properties. g Strong economic inducement through the loan program will cause quality g . reconstruction to occur that without the program, would not otherwise se occur. The "Contemporary Living Loans" program seeks to address a builder's market with ra ids escalating prices and a shortage of skilled contractors by making the l > a ments required for a well-designed home with contemporary amenities . p competitive with the payments a homeowner would pay for a home with similar l' p features In the outlying "exurbs". This program could be elected by homeowners instead of the `fI ambler redesign" program, and wo-ild typically be chosen by homeowners doing extensive (over $50,000) reconstruction of their homes. The p ro rare should be publicized broadly in Roseville as follows: 1. For home improvements greater than $50,000, Roseville will loan twenty percent of improvement costs (including design fees) up to 20,000 per home, at no or low interest, with payments arnortized over twenty years. The city will allocate an armual program budget of $100,00 0. (This will permit at least five improvement p g . loans per ear.) The loans will be secured, repayable in full if the homeowner sells p y the home within ten years. After ten years, the second h alf of the loan will be forgiven. 2. The city and the schools should each abate half the taxes that the homeowner would a on c im rovement, for ten years. This abatement nearly equals the pay p amount of the loan payments, making the homeowner's total repayment cost of the loan less than several thousand dollars.* The city and the schools will receive the remainin g half of the tax increase on the improvement. The schools are also likely t o realize an increase in their school population{ receiving or retaining a per pupil revenue that exceeds the abatement, for each student who might otherwise not come to, or remain in Roseville because of housing choice. 3. Over twenty five years., the city will recover approximately seventy percent of the loan amount in new taxes (even wit i the rebate), plus fifty percent of the loam amount in loan repayments. Combined, over twenty five years, the city will realize a total of 12V'o of it's Origillat loan amour-it.* whale this does not provide much annual interest rate, it does return original investment for roll over into new loans. The City Council should designate that the increased to revenue accruing to the ( ty g . . . city s a result of this program will be returned to a specified housing fund.) y P g