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REDA Meeting Minutes — Monday, June 21, 2016 Page 13 President Roe clarified tonight's discussion was not to apply additional details for loan programs, but suggested that could be part of future policy discussions for the REDA. Member Willmus noted the initial interest in tying the loan programs to square footage was to capture additional tax receipts. Ms. Kelsey concurred, but noted that some communities with smaller homes similar to those in Roseville were enhancing homes to make them more desirable to a new buyer in today's market and in the interests of today's families (e.g. family rooms). Member Etten asked for an explanation (bottom of Attachment B) related to borrower total costs and the costs paid by the HRA. Ms. Kelsey advised that from 2009 — 2014, the RHRA had been paying for all loan origination fees for RHRA loans; but in 2014, they had decided to no longer subsidize origination fees, since the city already paid for Housing Resource Center (HRC) building inspection fees to meet milestones to close on those loans (e.g. energy audits, etc.) and to meet that $12,000 contracted rate. While not remembering that part of the RHRA discussion, Member Etten opined it was important for an applicant to have some skin in the game upfront, and based on the interest rate discussion and meeting minutes from the previous meeting and his corrections to their wording, he noted his whole concern was to have a loan program in place that allowed improvements to happen. Member Etten noted part of that was removal of the income cap; and suggested the important thing and purpose for the city was to make Roseville homes of higher quality rather than for the city to make money. Member Etten noted that most of the loan programs already had money in the bank and should continue to incentivize investment in housing stock; but if the loan interest rate was comparable or too close to the private financial market, it would no longer prove viable. To counter that comment, Member Willmus opined that he wasn't sure Roseville or its EDA should compete with private sector banks, noting the City of Shareview consistently based their loan program rates on the Wall Street Journal's reported prime rate plus 2%). Ms. Kelsey noted the City of Shoreview also forgave the loans after 10 years of ownership. At the request of Member Willmus as to how much higher usage the loan programs had received after their most recent revisions by the RHRA, Ms. Kelsey referred to Attachment A showing activity levels. Ms. Kelsey advised