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3.2 The amendment would allow for lour to no interest loans up to a maximum of <br /> $10,000 for a term of 20 years. The loan would be subordinate to the bank and <br /> the bank or mortgage company would need to agree to service the loan. <br /> 3.3 Like the existing program, the City would have the ability to require that the <br /> guidelines for a new home are met by entering into an agreement with the <br /> homeowner* <br /> 3.4 The goal of providing the loan is to make the transaction financially feasible by <br /> writing down the cost to purchase the home to the market value of the <br /> underlining land. This amount is typically close to the cost of demolition of the <br /> substandard home. <br /> 3.5 An additional provision could be that the loans are only available to Roseville <br /> homeowners and that they would need to prove why they would not financially <br /> be able to Dandle the entire transaction (purchase, demolition, rebuilding). In <br /> addition, the loan would treed to be paid in full if the home is sold or becomes <br /> rental property. <br /> 4.0 Reg e t for 992 Burke Avenue <br /> 4,1 The Dee's are requesting a low interest loan in the amount of $10,000 so that they <br /> can economically finance the construction of a new home at 992 Burke Avenue (see <br /> attached photo of horne). <br /> 4.2 The cost of the existing home ($54,000) plus the demolition cost ($5,000) and the <br /> construction of a new home ($110,000) is cost prohibitive and takes away from what <br /> the Dee's can invest in the quality and design of the new construction. <br /> 4.3 Their ro osal is to purchase a Wausau Home (elevation and site plan attached) <br /> p p <br /> and keep the existing garage that was constructed two years ago. The p roposai <br /> includes three bedrooms, two baths, living room, dining room, kitchen, deck and <br /> fireplace and a full basement. They intend to incorporate the exterior siding to <br /> match that of the garage. <br /> 5,0 Staff Recommendation <br /> 5.1 Staff recommends amending the existing Housing Replacement Program as follows: <br /> Provide a low interest loan up to a maximum of$10,000 to finance the cost <br /> of demolition of a substandard home in the City of Roseville. <br /> Applicants must be a Roseville resident and be able to show why they <br /> financially need the loan. <br /> The bank or mortgage company who will finance the permanent mortgage <br /> must service the loan. <br /> RCA—H RP Amendment 06/22/98-Page 2 of 3 <br />