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RHRA Meeting <br />Minutes – Monday, May 25, 2016 <br />Page 19 <br />1 discretion of the REDA. Ms. Kelsey noted that the only place the program was <br />2 marketed was at the Home and Garden Fair rather than tied to any direct <br />3 mailing efforts to make people aware of the opportunities available. <br />4 <br />5 Member Willmus suggested tying the fixed interest rates of the Roseville <br />6 housing loan program to some type of index, with President Roe suggesting it <br />7 be tied to home values as well. <br />8 <br />9 Ms. Kelsey advised that the rates were reviewed annually at this point, and <br />10 adjusted to median home values, with material updated to reflect that annual <br />11 review. <br />12 <br />13 Upon clarification that Member Willmus didn’t intent this to be an Adjusted <br />14 Rate Mortgage (ARM) program, but a fixed rate for ten years, Member <br />15 McGehee noted the rate may vary for each new loan based on annual review <br />16 and revisions. <br />17 <br />18 Member Etten reported that the RHRA had discussed that when revising the <br />19 loan rate felt at that point a clear and straightforward 3%. This is still below <br />20 bank rates and provides that the city isn’t losing money but the program is <br />21 easily understandable by citizens. <br />22 <br />23 Member Willmus noted that was easy to do when interest rates were at a <br />24 historic low, but noted that could easily change in the future. <br />25 <br />26 Member Etten noted that was the rationale for the annual review. <br />27 <br />28 Ms. Kelsey advised that she would consult with the HRC since they had to <br />29 perform the loan originations on more loans than just those of Roseville, and <br />30 involving other municipalities, counties, and the state; to determine if an index <br />31 basis would add complexity to their process or to determine how best to <br />32 manage it. <br />33 <br />34 Noting that there appeared to be little REDA levy impact from these specific <br />35 programs, President Roe sought feedback from members as to any changes in <br />36 these programs. <br />37 <br />38 Ms. Kelsey referenced the spreadsheet (Attachment K) providing loan program <br />39 comparisons; and asked if the REDA wanted further staff research of other <br />40 community programs or any further evaluation. <br />41 <br />42 Without objection, staff was directed to return at a future REDA meeting with <br />43 this topic for further discussion on loans. <br />44 <br />d.Move-up Housing Discussion <br />45 <br /> <br />