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REQUEST FOR HRA ACTION <br /> <br />Date: April 17, 2007 <br />Item No: 8.b. <br />Staff Approval: JS Agenda Section: <br /> Action Item Description: Requested Modifica tion for Greater Metropolitan Housing <br />Corporation’s Senior Housing Regeneration Program Criteria (HF0033) <br />1.0 Background <br /> <br />1.1 In August 2005, the Roseville HRA provided $200,000 in funding to the Greater <br />Metropolitan Housing Corporation’s (GMHC’s) Senior Housing Regeneration Program. <br />The Senior Housing Regeneration Program pur chases homes from Roseville seniors at <br />fair market value, completes necessary repairs and renovations, and then sells the homes <br />to first-time home buyers at qualifying income levels. The purpose of the funding <br />provided by the HRA was to assist with writing down the gap between traditional bank <br />financing and the market value of the home. <br /> <br />1.2 The Roseville HRA provided several conditions on the funding provided to GMHC. To <br />qualifying for the funding buyers needed to be first-time homebuyers, households of two <br />or more with one member under the age of sixteen, income at or below 80 percent of <br />median income, participate in a certified homebuyer’s training prior to closing. In <br />addition GMHC was to first market these funds to public service employees (police, fire, <br />and teachers) and Roseville renters. <br /> <br />1.3 In 2006, GMHC purchased 960 Lovell, a two-bedroom, 715-square foot home, <br />completed renovations in July 2006, and have been marketing the property since then. <br />Due to the limited living area in this house, GMHC has found it difficult to find a buyer <br />for it that meets all of the criteria set forward by the Roseville HRA. <br /> <br />1.4 The holding costs associated with this house are approximately $1,000 per month. The <br />longer it goes unsold, the larger the affordability gap becomes, which ultimately costs the <br />HRA by increasing the gap between bank financing and cost of the home. <br /> <br />1.5 GMHC has asked that the Roseville HRA consider removing the requirement that the <br />buyer must have a household greater than two or more with one member under the age of <br />sixteen for this property specifically. More generally, they would also like the HRA to <br />remove this requirement after any property has been on the market longer than three <br />months. <br /> <br />2.0 Discussion of Alternatives: <br /> <br />2.1 The HRA has four alternative actions it could take on the request to remove the family- <br />with-children requirement for its GMHC Senior Housing Regeneration funding, which <br />includes: <br /> Roseville SHRP Program (04/17/2007) - Page 1 of 2