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3.0 Review of HRA Program Budget, Housing Plan, Accomplishments and Levy Request 3.1 Staff has prepared and attached a preliminary budget for the levy fund (723) for pro�raznming in 2007 The information outlines the need for a levy in the amount of $255,750 in 2007 to support existing programs and to provide $100,000 grant to the renovation of Har Mar Apartments at the comer of Hwy 36 and Snelling 2007. .2 Har Mar Apartments — Central Community Housing Trust (CCHT) has purchased the struggling Har Mar Apartments and is in the process of compiling their funding sources for a full renovation and restructuring of the property. The renovation will include a full rehab of the interior and exterior of the buildings and site. In addition, the renovation will include conversion of one bedrooms to two bedrooms to allow for a more marketable and miYed unit complex. HRA attorney with Krass Monroe has done a preliminary analysis of the project and indicates, even with the multitude ofpublic funding sources from the State, Met Council and Ramsey County, that the project has a fmancial gap. CCHT has requested $350,000 in a grant from the HRA to support the renovation and help to fill the project gap. The HRA only bas $250,000 available from restricted (CDBG) funds to apply to the project and is requesting, with Council support, a 2007 levy contribution of $100,000 to make up the additional gap. The HRA is still in the process of reviewing the potential of tax increment financing for the project that could reimburse the up front funding in the future. More detail will be provided to the HRA and Council regarding this analysis and the project in the next several months. The HRA budget and levy request can be reduced prior to December by the City Council if the additional funding is founc� not to be needed and other sources of fundiug can he provided to �11 the gap. 3.3 The HRA continues to be very conservative in their evaluation of existing housing programs that are funded with the HRA levy. They believe that the request accurately reflects what is needed to continue the existin� pro�rarns but does not fund additional programs or address larger housing issues. The HRA and City Council should begin to consider longer term fundiug of housing in the community with the HRA levy tool. Based upon State Statute the HRA, with Council support, can levy up to 0.0144% of the total taxable market value of the City. If the HRA and City chose to levy at the maximum allowed by state law, there would be an estimated $560,000 annually available to fully address housing issues. Depending upon the outcomes of the Roseville visioning process, the Council and H� may want to consider addressing the longer term housing conditions through additional levy funding in the future. Attachments: Levy Resolution, 2007 Draft Budget Summary (723) Prepared by: Cathy Bennett (651-'�92-7015) Presentation on HRA Budget & Levy Request - Page 2 of 2