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~ QSA, Inc. W 861-2026 III!] 8/13/98 (0 11 :52 AM [) 3/6 Roseville Cornerstone Program TM ""Contemporary Living Loans" The Roseville Comerstone™ UContemporary Living Loans" program seeks to encourage the well-designed reconstruction of typical older Roseville homes to make them market competitive. The use of a qualified designer assures that there will be enduring value both to the homeowner and to neighboring properties. Strong economic inducement through the loan program will cause quality reconstruction to occur that without the program, would not otherwise occur. The "Contemporary Living Loans" program seeks to address a builder's market with rapidly escalating prices and a shortage of skilled contractors by making the payments required for a well-.designed home with contemporary amenities competitive with the payments a homeowner would pay for a home with similar features in the outlying "exurbs". This program could be elected by homeowners instead of the "Rambler Redesign" program, and would typically be chosen by homeowners doing extensive (over $50,000) reconstruction of their homes. The program should be publicized broadly in Roseville as follows: 1. For home improvements greater than $50,000, Roseville will Joan twenty percent of improvement costs (including design fees) up to $20,000 per home, at no or low interest, with payments amortized over twenty years. The city will allocate an annual program budget of $100,000. (This will permit at least five improvement loans per year.) The loans wil1 be secured, repayable in fuU if the homeowner sells the home within ten years. After ten years, the second half of the loan will be forgiven. 2. The city and the !';chools should each abate half the taxes that the homeowner would pay on the improvement, for ten years. This abatement nearly equals the amoW1t of the loan payments, making the homeowner's total repayment cost of the loan less than several thousand dollars.'" The city and the schcx::J}s will receive the remaining half of the tax increase on the improvement. The schools are aJso likely to realize an increase in their school population, receiving or retaining a per pupil revenue that exceeds the abatement, for each student who might otherwise not come to, or remain in Roseville because of housing choice. 3. Over twenty five years, the city will recover approximately seventy percent of the loan amount in new taxes (even with the rebate), plus fifty percent of the loan amount in loan repayments. Combined, over twenty five years, the city will realize a total of 120% of it's original loan amoUJ\t.'" While this does not provide much annual interest rate, it does reMn original investment for roll over into new loans. (The City COlmcil should designate that the increased tax revenue accruing to the city as a result of this program will be returned to a specified housing fund.)