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Ci of Roseville Memo Community Development Department Jan 2, �998 TO: Steve Sarkozy, City Manager FROM: Dennis Welsch�`� Community Development Director (490-2232) RE: Progress on Housing Acquisition/Replacement Program Background on Roseville Housing Replacement Program. Using the Roseville Housing Fund as the primary source of initial funding, in 1995 the City established a housing replacement program. This program was established to help the City to annually enter into 3 voluntary purchase agreements of outdated or non-code compliant structures that could not be economically rehabilitated or sold on the open market. The City established a target by reviewing the County Assessor's records of the 200 lowest valued residential structures (under approximately $60,000) identified as "poor quality" in the assessor's property records. Once purchased by the City, the structure is razed, the tot is cleated and sold to a home builder. The City may be repaid in a number of methods: 1) the property value and taxes of the new house will nearly double, 2) the neighborhood property Values benefit from a more stable, compatible, new structure in the neighborhood, 3) a no interest second mortgage may be attached to the property, with a balloon payment payable upon safe, pro-rated over 10 years, the balance declining 10°/4 per year, 4} the City may receive some reimbursement from County CDBG or HOME funding, provided the homeowner qualifies for a law or moderate income loan or grant. Available Structures. Two structures have been identified for this program. One is located at 2'400 William (the Maureen Moore house) and is valued at approximately $39,000 (by appraisal). This is a rental property that the owner may wish to sell in the next six months. It is unclear whether rental assistance would be required, but if necessary, would not exceed $5,500. The City would also have to acquire the adjoining tax forfeited land from the County for approximately $6,300 to make one 87'x125' lot. The existing structure would be torn down and the lot sold to a developer or housing AV" fV9 1