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REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY ACTION <br />Date: 1/09/2017 <br />Item No.: 9.d <br />Department Approval Executive Director Approval <br />Item Description: Contract for Services with Greater Metropolitan Housing Corporation <br />(GMHC) <br />B <br />ACKGROUND <br />1 <br />Greater Metropolitan Housing Corporation’s (GMHC) Housing Resource Center (HRC) division has <br />2 <br />been providing information about loan programs, technical services related to construction <br />3 <br />questions, and home rehabilitation for homeowners in Roseville for more than 15 years. The HRC <br />4 <br />has never been a self-supporting program and GMHC has relied on the single family program, grants <br />5 <br />and donations to support the day to day operations of the HRC. Based upon achange in market on <br />6 <br />those funding sources, GHMC is requesting to only have a three month contract for the HRC as the <br />7 <br />GMHC board will determine the long term operations for GMHC by that time. <br />8 <br />Based upon the upswing of use for construction advise services in 2016 it was determined to <br />9 <br />increase the amount in 2017 for those same services to $15,000 for the year or $3,750 per quarter. In <br />10 <br />2015 and 2016 those costs were $12,000. In addition, the HRC needs a minimum of $800 per loan <br />11 <br />closed for the Roseville Home Improvement Loan Program and has suggested to keep the borrow <br />12 <br />rates the same as 2017 which is $75 nonrefundable application fee and $350 at closing. The <br />13 <br />remaining cost of the $800 ($375) would be passed along to the Roseville Economic Development <br />14 <br />Authority (REDA). Staff is proposing that this additional fee of $375 be paid for out of the <br />15 <br />Roseville Home Improvement Loan Program. <br />16 <br />PO <br />OLICY BJECTIVE <br />17 <br />The housing loan and technical services provided in partnership with GMHC are a key tool in <br />18 <br />fighting blight and maintaining housing values city-wide. <br />19 <br />BI <br />UDGET MPLICATIONS <br />20 <br />The 2017 contract amount of $15,000 was budgeted in the levy. The REDA payment of $375 per <br />21 <br />loan closed would come out of the Roseville Home Improvement Loan Program. <br />22 <br />SR <br />TAFF ECOMMENDATION <br />23 <br />Approve a service contract for construction and loan services with GMHC for HRC services for first <br />24 <br />quarter of 2017. <br />25 <br />Page 1 of 2 <br /> <br />