2017-06-05_EDA_Packet (2) - Laserfiche WebLink

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BI UDGET MPLICATIONS 28 An amount of$15,000 was budgeted in the levyfor 2017construction advisoryservices. The REDA 29 has authorized $7,500 for first and second quarter construction advisoryservices with GMHC. A 30 remaining balance of$7,500 for construction advisoryservices in 2017will be applied to CEE charges 31 of $225 per construction advisory visit. 32 The REDA has approximately $540,000 in revolving loan balance. CEE will chargea fee of $550.00 33 per loan. A $100 fee will be charged per inspection when a permit is not required for a home 34 improvement loan. In addition,CEE will help monitor the loans that CRF will be servicing for 35 delinquency of $200 per quarter. All fees will be invoiced to the REDA and paid for out of the 36 revolving loan balance. 37 All fees for CRF will be taken out of the loanrepayment account balance. The REDA loan charges a 38 3% interest rate which is more than sufficient to pay the costs associated with the loan servicing fees. 39 SR TAFF ECOMMENDATION 40 Staff recommends the REDA enter into the attached contract with CEE for loan originationservicesfor 41 the Roseville Housing Rehabilitation Loan Programand construction advisoryservices, and authorize 42 staff to negotiatea contract with CRF for loan servicingfor the Executive Director and President to sign. 43 REDABA EQUESTED OARD CTION 44 Make Motion to enter into the attached contract with CEE for loan origination services for the Roseville 45 Housing Rehabilitation Loan Program and construction advisory services, and authorize staff to 46 negotiate a contract with CRF for loan servicing for the Executive Director and President to sign. 47 Prepared by:Jeanne Kelsey, Housing Economic Development Program Manager, 651-792-7086 48 Attachments:A:CEE Professional Service Agreement Page 2of 2