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OO <br />THER PTIONS <br />30 <br />Contract with the Center for Environment and Energy <br />31 <br />The REDA could movetheloan program over to another originator which is the Center for Environment <br />32 <br />and Energy (CEE). CEE has merged with the Neighborhood Energy Connection (NEC) which does the <br />33 <br />energy audit program whichthe REDA funds annually. CEE has contracts with other cities managing <br />34 <br />theirCity Loan programs. Based upon loan fees that CEE has in place with other cities,they could <br />35 <br />charge the REDA a loan origination fee of $550 and the borrow would pay an additional fee of 1% of <br />36 <br />the loan amount.CEE also can provide construction advisoryserviceswhich would cost the REDA <br />37 <br />$225 per visit to the home.For comparison information regarding HRC and CEE costs and services see <br />38 <br />Attachment A. <br />39 <br />One additional aspect of CEE is that they do offer a commercial energy loan program (attachment B) <br />40 <br />and commercial energy efficiencyadvisory service. This programis available even if the REDA does <br />41 <br />not move the residential advisoryprogram or rehabilitation loan program over to CEE to manage. <br />42 <br />If the Board decides to direct staff to work with CEE to take over the residential loan program and <br />43 <br />construction advisoryservices then staff recommends to continue another quarterly contract with <br />44 <br />GHMC for services through June 30, 2017 while staff and CEE work out all of the details of taking over <br />45 <br />services (Attachment C). This would allow for a contract to be negotiated as well as marketing material <br />46 <br />to be developed and printed, the website to be updated, and communication staff to assist with <br />47 <br />promoting the new service through social media and the city newsletter <br />48 <br />No Longer Offer City Loan Programs <br />49 <br />The other option is for the REDA to not offer any residential rehabilitation loan programs or <br />50 <br />construction advisoryprograms for homeowners in Roseville. <br />51 <br />PO <br />OLICY BJECTIVE <br />52 <br />The housing loan and technical services program are key toolsin fighting blight and maintaining <br />53 <br />housing values City-wide. <br />54 <br />BI <br />UDGET MPLICATIONS <br />55 <br />An amount of$15,000 was budgeted in the levyfor 2017construction advisoryservices. The REDA <br />56 <br />nd <br />has authorized $3,750 for first quarter construction advisoryservices with GMHC and after a 2quarter <br />57 <br />of construction advisoryservices with GMHC a remaining balance will be $7,500 for construction <br />58 <br />advisoryservices in 2017. <br />59 <br />The REDA payment of $375 per loan closed comesout of the Roseville Housing Rehabilitation Loan <br />60 <br />nd <br />Program.If the REDA contracts with CEE for 2half of 2017,any loan origination amount that the <br />61 <br />REDA will pay will come out of the same account. <br />62 <br />SR <br />TAFF ECOMMENDATION <br />63 <br />Staff recommends the REDA review the options presented by staff and consider maintaining the <br />64 <br />Roseville Housing Rehabilitation Loan Program, including construction advisoryservices, through CEE. <br />65 <br />REDABA <br />EQUESTED OARD CTION <br />66 <br />nd <br />Make Motion to Extend a Contract with GMHC through the 2quarter, and direct Staff to Negotiate a <br />67 <br />Contract with CEE for Home Loan and Construction AdvisoryServices. <br />68 <br />Prepared by:Jeanne Kelsey, Housing Economic Development Program Manager, 651-792-7086 <br />69 <br />Attachments:A:HRC and CEE Comparison <br />B: Commercial Energy Loan Program <br />C: Contract with GMHC <br />Page 2of 2 <br /> <br />