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REQUEST FOR HRA ACTION <br /> <br />Date: 05-15-07 <br />Item No: 8.a. <br />Staff Approval: Agenda Section: <br />CB Action Item Description: Roseville Owner Occupied Loan Program Funding <br /> <br />1.0 Background <br /> <br />1.1 In March, the HRA discussed the activity of the Roseville Owner Occupied Revolving <br />Loan Program which provides 4 percent interest loans at a maximum of $20,000 to <br />Roseville residents for interior and exterior home improvements. The background <br />information included a status of the number of loans issued, amount of loans, loan fund <br />balance and summary of incomes of residents who have received a Roseville HRA low <br />interest loan. Questions and comments from RHRA members regarding the program <br />include: <br /> <br /> Concern that the HRA is supporting government-subsidized loans for people <br />making $175,000 a year since the program is not income restricted. <br /> Question regarding the amount that is being collected in interest and payments on <br />a monthly basis. <br /> The amount of fees to administer the program on a monthly basis. <br /> The need to market the program to tho se that have a real need for the funds. <br /> <br />2.0 Program Status: <br /> <br />2.1 The Revolving Loan Program has been very in strumental in helping homeowners finance <br />their home improvement projects. As the end of April 2007, the HRA has financed a total of <br />121 loans in the amount of $1,164,936 since Apr il 2000. The loan funds have helped to <br />finance over $3.3 million in home improvements. <br /> <br />2.2 There currently is $73,604 available to fi nance additional loans throughout 2007 unless <br />additional funding is provided by the HRA. This could finance only three more loans. On <br />average $8,000 in loan principal and interest re volve back into the loan pool. In addition, <br />approximately 4-5 loans are fully paid each year and the funds are filtere d back into the loan <br />pool to provide additional loans. <br /> <br />2.3 Looking over the life of the program since 2000, th e average income of residents who have <br />received loans is $69,000. Therefore, the program has historically been providing funds to <br />households with median income. There is no income restriction on the program and there <br />are approximately 20 loans or 17% of the total number of loans that have been issued to <br />households making more than $94,200 which is above the current 120% of median income <br />limitation for a family of 4. <br /> <br /> <br /> Roseville Owner Occupied Loan Progr am Funding (5-15-07) - Page 1 of 3