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HRA Meeting Minutes – Tuesday, February 15, 2011 Page 7 1 supplies, fuel, and administrative assistance and professional services salaries were reallocated 2 as jobs were reclassified and the department restructured to better-reflect actual duties and 3 affiliated costs. Mr. Trudgeon noted that the revenues reflected additional cash reserves, not 4 any new revenue. 5 6 Motion: Member Masche moved, seconded by Member Pust to approve the 2011 RHRA 7 Amended Budget as presented and detailed in the Request for HRA Action dated 8 February 15, 2011. 9 10 Ayes: 6 11 Nays: 0 12 Motion carried. 13 14 e. New Item: Lake Josephine Association Resolution of Support for application of 15 Community Development Block Grant (CDBG) Funds for Financing of a Housing 16 Improvement Area (HIA) 17 Housing Program Manager Kelsey summarized this Request for HRA Action dated February 18 attached hereto and made a part hereof. 15, 2011; provided as a bench handout, and Ms. 19 Kelsey advised that the HRA had previously recommended that the City Council hold a Public 20 Hearing regarding establishment of an HIA; and that the Public Hearing had been held, but no 21 ordinance adopted. Ms. Kelsey advised that staff was making application to Ramsey County 22 for CDBG funds on behalf of the Lake Josephine Association, which required adoption of the 23 Resolution prior to the application deadline of February 25, 2011. Ms. Kelsey noted that this 24 would further serve to facilitate identification of the Association’s financing sources, a 25 requirement of further City Council action in enacting an ordinance related to establishment of 26 an HIA. 27 28 Discussion among HRA members and staff included, potential impacts in reduced federal 29 funding for CDBG funds; the highly competitive number of applications; the HRA’s role in 30 apply for a loan from Ramsey County on behalf of the Lake Josephine Association; limitations 31 of one application per year for CDBG funds; City bonding for the previously adopted HIA; 32 and the decision still pending on how Ramsey County would disburse funds – whether to the 33 HRA to disburse to the Lake Josephine Association and following their repayment through 34 property tax assessments, those funds serving as a Resolving Loan Fund for the HRA, or 35 whether directly to the Association. 36 37 Member Pust noted the greater public benefit if the funds were directed to the HRA and thus 38 increasing their ability to fund future housing issues. 39 40 Ms. Kelsey clarified that the funds would be a loan, not a grant, if provided directly to the 41 Association, and assessed on their property taxes; with the term for that assessment still 42 pending depending on what funds if any were awarded. Ms. Kelsey noted that if the HRA was 43 to receive the funds, the City would consider a fifteen (15)-year term for the assessments; 44 depending on what other funds were available to assist the total project cost, estimated at 45 $404,000. 46 47 Further discussion included the flexibility in the proposed total project cost compared to the 48 Association only pursuing bringing the elevator up to Fire Code and deferring other 49 improvements at this time; the past Villa Park project, prior to establishment of the HRA, 50 receiving CDBG funds loaned directly to the HRA and subsequently serving as a Revolving 51 Loan Fund now accessible by the HRA through the Roseville Local Development Corporation, 52 with those funds reallocated to other projects, such as the recent Sienna Green project. 53 54 Additional discussion included whether there were any advantages for individual HRA 55 members to lobby the Ramsey County Board of Commissioners, serving as the County’s HRA,