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City of Roseville - HRA Minutes for June 20, 2006Page 2 of 5 administrative services. In addition, the HRA approves annual contract for Executive Director staffing as well as legal counsel. The review of Executive Director fee for service and legal fee for service is reviewed on a quarterly basis along with the quarterly report of time spent on HRA activities. The next quarterly report will be presented to the HRA in July for April-June time period. Chair noted that the HRA is a separate legal entity which is why they contract for City and outside professional services. Motion: Member Scheunemann moved, seconded by Member Elkins, to approve the consent agenda as presented. Ayes: 4 Nays: 0 Motion carried: 4-0 7.Public Hearing None 8.Action Items Consideration of Senior Housing Regeneration Program Purchase (HF0048) a. Executive Director Bennett provided a brief summary of the program and request for gap funding for the purchase, renovation and resale of 1000 Woodhill Drive in Roseville. Kelsey noted and asked about the loss factor on properties and did not feel that it was portrayed to the Council in their discussion with them. She thought that these programs only provided second mortgages. Carolyn Olson with Greater Metropolitan Housing Corporation (GMHC) noted that most will have small loss and some will have a small profit so that it usually evens out in the end. Most losses are recaptured in a second mortgage since a small interest factor is captured as well. Member Elkins noted that she understands that this is the way it works to make these affordable housing projects a reality and she sees this in her business. Chari Majerus noted that the HRA needs to consider what it the best return on the city’s investment and that each project should be evaluated in that way. Ms. Olson noted that for the Senior Housing Regeneration Program (SHRP) the gap range is between 40,000 – 60,000 in second mortgages. So a program that includes a $35,000 second mortgage would come back to HRA when the home is sold plus a small interest factor. Member Elkins asked why the homes are listed on the Multiple Listing Service (MLS)? Ms. Bennett noted that this was based upon the HRA’s criteria for the program to get the local Realtor community involved but that it does add to the project costs. Ms. Olson noted the difference in cost due to the local Realtor requirement and that they are not allowed to just market to the local Realtor community but it must be put on MLS. Member Kelsey asked if this has worked and if the Realtors have brought forward any buyers and homes? (None to date). Ms. Olson will do a mailing to the Realtors once a home is ready for purchase. Motion: Member Elkins moved, seconded by Member Kelsey, to approve the gap funds not to exceed $65,000 for the purchase, renovation and resale of 1000 Woodhill Drive in Roseville under the Roseville Senior Housing Regeneration Program. http://archive.ci.roseville.mn.us/council/hra/minutes/2006/hram062006.htm3/10/2008