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Finance Commission Minutes November 9, 2016 – Draft Minutes Page 2 of 7 Overview of the Roseville Economic Development Authority Programs 47 48 Ms. Jeanne Kelsey, Roseville Economic Development Authority Staff, provided background on 49 the Roseville Housing Redevelopment Authority (RHRA) and the City’s transfer in 2016 from 50 the RHRA to the Roseville Economic Development Authority (REDA). She reviewed the list of 51 programs currently in place including the program scope, activity level, and budget information 52 for 2017. These programs included the Roseville Home Improvement Loan Program, Housing 53 Replacement/Single Family Construction Program, Roseville Multi-Family Housing 54 Loan/Acquisition Fund Program, Community Development Block Grant Funds (CDBG), 55 Housing Resource Center Construction Consultation, Roseville Green Building/Remodeling 56 Award, Roseville Energy Audit Program, Green Remodeling Plan Book (GRPB), Home 57 Improvement Workshops, Neighborhood Enhancement Programs, Roseville Abatement 58 Program, Marketing Studies, Economic Development, and general EDA expenditures. 59 60 Commissioner Bachhuber clarified when as part of the Housing Replacement Single/Family 61 Construction Program after the EDA acquires a property and demos the home they put the 62 property back on the market with restrictions on the value of the home that can be placed on the 63 property. 64 65 Ms. Kelsey stated this was correct. The EDA would remove the home and place the property 66 back on the market at the assessed value of the property. 67 68 Chair Schroeder asked if the cost to remove the home was factored into the sale price of the 69 property. 70 71 Ms. Kelsey stated these costs were not factored in on the last property the City sold because the 72 cost would be recouped in the increased taxes the City would receive from the increased property 73 value. The Board has decided they would like to have these funds recouped upfront so they 74 would be asking to have the costs covered as part of the sale. 75 76 Commissioner Bachhuber asked what the benefit would be to the developer or the homeowner to 77 using the loans available through these programs. 78 79 Ms. Kelsey stated the Single Family Loan Program offers a 3% interest rate and the applicant 80 pays the origination fee and underwriting costs for 10-years. The benefit for a rental property is 81 for those properties that are affordable housing to remain affordable housing. 82 83 Commissioner Murray asked if these loans would be considered a second mortgage and what the 84 loss risk would be. 85 86 Ms. Kelsey stated the City loans would be a second mortgage and over the time period that they 87 have used Roseville funds for the Single Family loans there has not been any foreclosures or loss 88 of a loan. The underwriting for these loans is the same as what other financial institutes would 89 require. 90 91 Item 3: Attachment A