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FAIRRMITITIM, V.111 d. In addition, 54%, of the households are over the age of 55. 4.3 Is the Association fund balance insufficient to pay for the improvements?— City/HRA staff has not reviewed the association finances at this time. However, it is suggested that if the council wishes to proceed with the evaluation, they should direct staff to review this information. The association has indicated that they have been unable to secure outside private financing at a reasonable level and that they currently do not have sufficient reserves to cover the improvement cost. The association is currently in the process of updating their legal documents and is prepared to have a long term financial plan prepared to cover future capital improvements as part of this project. 4.4 What is the total cost of the improvements? According to the association, they have received estimates for 1 s*d* 1 1 ing, fasc*a and roof replacement *n the amount of $1 - $1.2 ill ion. As part of this pr *ect, the c* 1 1 1 m 01 ity building offs * al w * 11 review any bids received * ved to determine if they will meet their specifications for improvements and include an adequate contingency amount for unforeseen deterioration that may be found as the improvements are made. a. This information will need to be collected and certified by the City prior to the conclusion of 6months from the date of the public bearing— June 11,200 6 so that a fee resolution can he considered. The final amount of the improvements plus administration costs and interest will determine the total amount of the fee. The fee resolution does not take affect until 45 days after adoption. Within that timeframe if 35%, or more of the owners file an objection to the establishment of the ordinance for the HIA, the ordinance does not become effective. Of, if owners of 3 5 percent or more of the housing units' tax capacity subj ect to the fee that is set by resolution file an objection with the city, the resolution does not become effective. b. Like any other city assessment, the fee can he prepaid to avoid payment of accrued interest. 4. What at would be the estimated financial advantage of a HIA compared to private financing? The town home association would require a payback term of either 15 or 20 years. One of the benefits and advantages of the HIA is a longer term than traditional financing. Typical home equity financing is 7 years. Based upon a $1 million total project amount that would he split evenly between all of the 47 units, the following illustrates bank financing compared to HIS. financing. For residents with low-moderate incomes, a savings of $1,800-$2,000 per year is significant. HLA Public Hearing (12-18-06) -Page 6 of 8