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City of Roseville - Housing & Redevelopment Authority Meeting Minutes for October 18, 2005Page 2 of 3 Action Items 8. Consider Senior Housing Regeneration Program Purchase Process (HF33) a. Executive Director Bennett noted that the HRA approved a program outline and funding for the Senior Housing Regeneration Program (SHRP) for Roseville in August 2005 with the Greater Metropolitan Housing Corporation (GMHC). The approval allocated $200,000 for the purchase gap of homes sold by seniors and purchased by first time home buying families. However, a process for HRA to review the specific home purchases was not considered. Bennett noted that GMHC has made an offer to purchase the first home in Roseville under this program criterion. The home is small and needs approximately $40,000 in renovation. Because of its low purchase price and future market value, it is unlikely that there will be a second mortgage recapture option. However, this will be a true affordable home that can meet the HRA’s program goals. The gap for the project is estimated to be $30,000 which is also within the limits that GMHC has normally experienced on other projects. Bennett outlined three options for the HRA Board to consider in the reporting and/or approval of homes under the program. 1.Accept report from the HRA Executive Director as part of the quarterly report that outlines the number of homes purchased, location, amount of renovation and purchase gap including second mortgages. 2.Approve the purchase and gap funds for each home in Roseville under consent. 3.Approve the purchase and gap funds for each home in Roseville under regular action item. Bennett suggested the first reporting method as preferable from an implementation stand point. Member Bean noted there will be 4-5 homes purchased under the program and that these must be reviewed by staff to expedite the process. Bean noted that she is comfortable with staff providing a quarterly report and trusts the judgment of the professionals who implement the program. Bennett explained that GMHC has a proven track record in implementing the program and which projects make financial sense. Member Maschka described the pro forma for the home currently under consideration. Bennett explained that the $140,000 purchase price, renovation cost and expected resale would not result in a second mortgage. The overall process does not allow for a recapture in this particular case. Member Millasovich asked about the renovation costs and if they were mostly external or internal. Bennett explained that the structure is brick and has a new roof and that most of the work is earthwork and internal upgrades. Chair Majerus asked if there had been any issues in the past from other agencies regarding GMHC performance in this program. (No) Motion: Member Bean moved, seconded by Member Scheunemann, to approve method 1 outlined above as a process to provide gap funds to GMHC for the purchase and renovation of Roseville homes as part of the Senior Housing Regeneration Program with a cash-out limit of $35,000 on any one home transaction. Ayes: 5 Nays: 0 Motion carried. Information, Reports, and Other Business 9. Update on 2006 Preliminary Levy Certification by Council (HF31) a. Chair Majerus requested that the video from the City Council Meeting in September be played for the benefit of the HRA Board to review the comments associated with setting the HRA preliminary levy. After the video was played, Chair Majerus thanked member Maschka for his support of the HRA. Member Bean noted that it was good to see that the Council is hearing from residents and have an understanding that families are being helped by the programs of the HRA. http://archive.ci.roseville.mn.us/council/hra/minutes/2005/hram051018.htm3/12/2008