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Roseville Finance Commission Agenda Item Page 1 of 8 Memo To: Roseville Finance Commission From: Jeanne Kelsey, Roseville Economic Development Authority Staff Date: November 9, 2016 Re: Item #6: Overview of the EDA Programs Background In 2002, the City of Roseville established the Roseville Housing and Redevelopment Authority (RHRA) in and for the City of Roseville to administer all housing programs and matters that the City had with housing related issues. Since that time the RHRA managed the existing programs but also initiated new housing programs to stabilize and enhance the housing tax base. In 2013 the RHRA had expanded its mission to include stabilization of the Business/Commercial tax base. As the RHRA got more into business retention and expansion programming, the City Council decided, in 2015 to establish an Economic Development Authority, which would be better suited to administer both housing and economic development programs. In January 2016 the RHRA transferred all existing programs to the Roseville Economic Development Authority (REDA). The following is a list of the programs currently in place with a brief description of each program’s scope, activity level, and budget information for 2017. Housing Replacement/Single Family Construction Funds Roseville Home Improvement Loan Programs Roseville has offered residents low-interest home improvement loans since 2000. The loan programs have been revolving and self-sustaining since 2009 with no new levy funds being added to the program. The criteria for the loan programs has varied over the years and is re-evaluated from time to time to make sure the programs are meeting the needs of the residents when considering property values, demographics, and income limitations. For example, in 2015 the program’s criteria was modified to remove income restrictions and to establish a maximum property value (before improvements) of $216,500 (which is the 2016 median value of residential properties in Roseville). The maximum loan amount was also increased from $25,000 to $40,000. After these changes were implemented, the number of loans closed in 2015 increased (see Attachment A, The current balance for funds as of September 30, 2016 was $570,948. Activity for this program is heaviest in the summer months. Attachment A provides data for the activity from 2000 through 2015, as well as the year-to-date activity in 2016. This is a revolving loan account and no additional funds have been budgeted for in the 2017 levy.