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<br /> <br />REQUEST FOR HRA ACTION <br /> <br />Date: 04-15-03 <br />Item No: 7.b. <br /> <br />Agenda Section: <br />Action Items <br /> <br />Approval of Roseville Local Development Corporation and Election of <br />Officers for 2003 <br /> <br />Staff Approval: <br />CB <br /> <br />Item Description: <br /> <br />1.0 <br /> <br />2.0 <br /> <br />2.1 <br /> <br />2.2 <br /> <br />2.3 <br /> <br />2.4 <br /> <br />REQUESTED ACTION <br /> <br />Accept the assets and liabilities of the Roseville Local Development Corporation and~~c~l~ <br />Officers for 2003. ~, <br />l,..C<., ..'\] <br /> <br />BACKGROUND <br /> <br />The City's Local Development Corporation was fonned in 1988 with the purpose of <br />securing Federal Housing and Urban Development (HUD) funds to establish a low <br />interest loan program specifically for the senior housing project on County Road B called <br />Villa Park. The purpose of the loans was to provide seniors with an alternative for <br />financing the purchase of condominiums at Villa Park, therefore making many of the <br />units affordable. For the City to secure the HUD funds for this purpose, HUD required <br />the establishment of a Local Development Corporation (LDC). This enabled the City to <br />collect the program income once the loans were paid back. The program income must be <br />used under the HUD guidelines for low-moderate income residents. <br /> <br />There' are currently four loam; outstanding with residents in the Villa Park complex. The <br />LDC is collecting the intel'e?t only on these loans. They are due and payable in full upon <br />;,;... .i' ~ <br />sale of the Villa Park unit. . <br /> <br />At the 2002 annual meeting of the LDC the City Council, acting as the Board of <br />Directors, requested that staff research the continued need for the LDC. In discussion <br />with Ramsey County, it was recommended that the LDC remain in force until all of the <br />loans are repaid. Once the loans are fully paid, the LDC could be abolished. Ramsey <br />County also suggested that the use of the program income currently collected could be <br />used by the newly established HRA. in Roseville for eligible projects that serve low-to- <br />moderate income residents. The HRA primarily has the same authOIjty as the. LDC for. <br />use of the federal funds. ~., J.I.-JA t.M.t (X..~. ~~~ ~ (j <br />i'~J.[- ~ ~ '#o)~ (1,U. f/JkJ-'1YkJ0I. <br />In January 2003, the City Council,'as the Board of Directors of the LCD, transferred the W'l~ <br />responsibility of the LDC to the HRA. This includes the management of assets and <br />liability as well as serving as the Board of Directors. <br /> <br />LDC RHRA Action (041503) - Page 1 of2 <br />