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HRA Meeting Minutes – Tuesday, April 15, 2014 Page 5 1 but a more comprehensive effort was needed. With the hiring of a new Director, and 2 formalization of these efforts, along with funding to do so, Chair Maschka opined that the 3 overall efforts would make those long-needed efforts even better for the entire community. 4 5 Ayes: 6 6 Nays: 0 7 Motion carried. 8 9 b.Use of CDBG Funds for SHRP Program 10 Ms. Kelsey reviewed the request of the GMHC for the use of Roseville Community 11 Development Block Grant (CDBG) funds for gap financing for affordable housing 12 opportunities for families. Ms. Kelsey noted that Ramsey County had also asked staff for 13 input on how they intended to use the funds, as they were often audited by the Federal 14 Government, originator of the funding, on how unexpended funds and why funds were not 15 being expended. 16 17 Ms. Kelsey opined that, when the GMHC presented their desire to target seniors wishing to 18 move into their proposed Dale Street Project or elsewhere in the community, but not wishing 19 to do improvements to their current homes, it provided a great opportunity to actively engage 20 those residents. Overall, Ms. Kelsey noted that the GMHC had a great reputation in providing 21 such assistance; and that their intent in this request would be for gap financing for down 22 payments to bring them into the affordability range for homeowners. 23 24 Ms. Kelsey noted that the GMHC would make application to Ramsey County, under the 25 CDBG program for City of Roseville-designated funds to be used for the purpose of 26 rehabilitating those homes, with one-third of their mortgage forgiven after a certain period of 27 time. Ms. Kelsey advised that, one caveat of this approval, would include RHRA staff review 28 and ultimate approval on a case by case basis, to ensure that no additional poverty issues were 29 created. Ms. Kelsey sought direction of the HRA in whether they were supportive of this 30 request that would essentially meet the goals and objections of its original Housing 31 Regeneration Program; and open opportunities for families in Roseville. Ms. Kelsey advised 32 that the HRA, at its discretion, could also restrict the funding to families with children under a 33 certain age. 34 35 At the request of Chair Maschka, Ms. Kelsey confirmed that these funds, if used to write down 36 the cost for a second mortgage, would be recycled; however, if they were used to fund 37 rehabilitation, they most likely would not be recycled. Ms. Kelsey advised that, depending on 38 the original purchase price of the home and its value after rehabilitation, first-time homebuyer 39 restrictions for Ramsey County would apply, based on income qualifications of less than 80%, 40 with no waiver available from that threshold, with income for a family of four at 41 approximately $64,000 to qualify for utilization of those funds. 42 43 At the request of Chair Maschka and Member Etten, Ms. Kelsey clarified that the majority of 44 first mortgage funding would come from Fannie May or the State of MN, with a maximum 45 purchase price not exceeding $298,000. 46 47 At the request of Member Etten, Ms. Kelsey reviewed practicalities of the program, in 48 providing assistance to home-buyers within the income range; with GMHC purchasing the 49 home, rehabilitating it and then reselling it on the open market. Ms. Kelsey noted that the 50 realtor of choice would most likely be the one representing the Dale Street Project, who was 51 willing to provide a discount on commissions, and it was anticipated they would do so for 52 selling on the back side as well. 53 54 Chair Maschka opined that the proposal made great sense to assist senior-aged, single-family 55 homeowners the ability to get into a townhome or other unit with less upkeep required.