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REQUEST FOR Cz� COUNCIL ACTION Date: 04-10-00 Item No: � - 4 Manager Approval: Agenda Section: Consent Modifications to the oseville Housing Replacement Program 1.O REQUESTED ACTION City staff is requesting the approval of amendments to the Housing Replacement Program (HRP) to accommodate changes to the demolition loan program and to more effectively tie the HRP to future land use designation under the comprehensive plan rather than existing zoning. :.O BACKGROUND 2.1 The City adopted a Housing Replacement Program (HRP) in 1996 targeted to removing houses within the community that cannot meet code requirements or economically cannot maintain a livable standard. The HRP is voluntary and has been used to acquire three structures in two years. Two new single family homes have replaced structures on two lots. Each of the new homes has been valued at least twice the value of the previous structure ranging from $40,000 prior to the program, to over $180,000 after the new construction. 2.2 A number of innovations and additions have been added since the inception of the HRP including the lot and building clearance program, allowing the same owner to start over on the site, with a small loan from the city to pay for removing the old structure. Currently, the loan is tied to the first mortgage on the new home and must be serviced by a bank or mortgage company. This arrangement has not been successful and no loans have been issued. City staff is suggesting that the loan be serviced by the Housing Resource Center and not tied to the first mortgage. 2.3 Currently, the HRP is tied to the e�sting zoning on the site. There has not been a case where single family homes have been replaced by more housing such as duplexes, quads, or senior housing. But there is an indication that this may occur. The City has few remaining developable sites but the vast majority of them are multifamily designations on the comprehensive plan. 2.4 When the city acquires a non-code compliant single family structure and razes it, the future land use designations of the comprehensive plan for the site should be adhered to if at all possible. For example, if the City acquires a non-compliant single family home or a home on a non-compliant lot which is in an area designated for multifamily, to comply with the comprehensive plan, development should be multifamily, and the site should be prepared and sold to comply with that designation. The current HRP does not cover this situation.