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Roseville Finance Commission Agenda Item Page 2 of 8 Housing Replacement/Single Family Construction Program The City of Roseville first adopted the Housing Replacement Program in 1998. The RHRA took over administering the program in 2002 but did not budget resources to continue purchasing properties. In 2013 the RHRA updated the program and set aside levy funds in 2013, 2014, and 2015 to assist with the acquisition of properties. The goal of the program both then and now is to acquire older homes that have a limited floorplan or footprint or are too costly to improve, demolish them, then sell the land to a qualified builder and/or homeowner to construct a new home. The program does require the newly constructed homes to meet specific design and site criteria guidelines. Since 1998, the housing replacement program has been used to purchase 5 properties and 4 of the 5 lots have had new homes built on them. The 5th property was sold recently to provide easement access for the Cherrywood Estates development (on Lexington, across the street from City Hall). Attachment B shows the valuation on 3 of the properties since acquiring and putting new homes on the lots. The 4the property evaluation has not had one full year of full market value since construction was just completed in 2015. Currently the EDA has a purchase agreement to acquire a 6th property 196 S. McCarrons for $110,000 through this program. The closing is scheduled for November 30, 2016. In addition, this program has provided loans to first-time home buyer programs to either assist in rehabilitating existing homes or constructing new homes that met affordable housing needs in Roseville. The account balance for this program is $531,000. No additional funds have been budgeted for in the 2017 levy. The overall budget amount for the Ownership Rehab is $27,850 Multi-Family Loan & Acquisition Funds Roseville Multi-Family Housing Loan/Acquisition Fund Programs The RHRA established this program in 2008 to assist existing rental property owners with 5 or more units to reinvest and update their properties. The program uses levy funds and has been included in the budget every year since 2008. The RHRA determined that they would need substantial loan proceeds to build a revolving loan program and to assist with acquiring property that could be developed into multi-family housing. The program has been utilized for two developments thus far: Rehabilitation of Sienna Green (previously HarMar Apartments) and Garden Station Homes. Information on the program is provided to support the building codes division as they continue to implement the rental licensing program. In addition, the program has supported RHRA and now the REDA activities for acquiring property that can be redeveloped into higher-density housing. The account balance is $1,580,000. No additional funds have been budgeted for in the 2017 levy.