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City of Roseville - HRA Minutes for June 20, 2006Page 3 of 5 Ayes: 4 Nays: 0 Motion carried. Consideration of Senior Housing Regeneration Program Purchase for 279 Elmer Street in b. Roseville (HF0049) Executive Director Bennett brought forward an additional request for gap funding for the purchase, renovation and resale of 279 Elmer in Roseville. Ms. Olson provided a summary of the project with a second mortgage of $60,000 and a permanent loss of between $5,875-$9,725 depending upon the Realtor costs. Member Kelsey noted that this could be a very small loss and would like to see the actual reports for all of these projects once they are complete. Ms. Olson noted that some of the projects come in much less if they are able to use other public sources of renovation funding but they need to project the costs not those programs just in case. Member Kelsey felt that they should not have to review projects that can be done only with second mortgage. But only review ones that have a permanent loss over a certain threshold. Member Elkins wondered what the threshold should be. Chair Majerus asked GMHC what the average permanent loss is on projects in other communities? ($10,000 - $15,000). Member Elkins feels that $15,000 as an average would be a good number. Member Kelsey wants to make sure that the project summaries are provided in the quarterly reports. Chair Majerus talked about the mission of the program and the overall goal of putting people and families in homes that they may not otherwise be able to afford. This is achieved with the program. Member Elkins asked who prepares the summary of the renovation costs? (GMHC construction manager staff goes through the home and puts together a scope of work.) Member Kelsey asked if the sale price is based upon an appraisal after the fact? (yes) Motion: Member Kelsey moved, seconded by Member Elkins, to approve the gap funds not to exceed $70,000 for the purchase, renovation and resale of 279 West Elmer Drive in Roseville under the Roseville Senior Housing Regeneration Program Ayes: 4 Nays: 0 Motion carried: 4-0 Motion: Member Kelsey moved, seconded by Member Elkins, to provide administrative approval for any Senior Housing Regeneration Program (SHRP) property purchase with a permanent loss below $15,000 and projects above $15,000 to come back to the HRA for approval. The Executive Director shall provide quarterly reports on all SHRP properties. Ayes: 4 Nays: 0 Motion carried: 4-0 Member Kelsey thanked the homeowner who made the effort to go through this program and that it will help to provide a first time buyer with a home in Roseville. Member Kelsey requested that addition media be provided for the project with the seller and buyer. http://archive.ci.roseville.mn.us/council/hra/minutes/2006/hram062006.htm3/10/2008