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REQUEST FOR HRA ACTION <br /> <br />Date: 09-18-07 <br />Item No: 8 b. <br />Staff Approval: Agenda Section: <br />CB Action Item Description: Consider Refunding and Program Modifications to the HRA <br />Ownership Loan Program <br /> <br />1.0 Background <br /> <br />1.1 In March and May, the HRA discussed the activity level, potential restructuring and <br />refunding of the HRA Owner Occupied Revolving Loan Program. The loan program, <br />which provides 4 percent interest loans at a maximum of $20,000 to Roseville residents <br />for interior and exterior home improvements, has been available to residents and <br />managed through the Housing Resource Center since April 2000. <br /> <br />1.2 The background information provided at these meetings included status reports on the <br />number of loans issued, amount of loans, lo an fund balance, summary of incomes of <br />residents who have received a loan, fees to ad minister the program and amount of interest <br />and principal being collected from the loan pool. Questions and comments from RHRA <br />members regarding the program included: <br /> <br /> Concern that the HRA is supporting government-subsidized loans for people who <br />have a household income over the 120% of AMI. <br /> Possible change to the criteria for elig ibility to include income and valuation <br />limits. <br /> The need to market the program to tho se that have a real need for the funds. <br /> What the median value of homes are in Roseville. <br /> Unclear how this loan program fits within the “tool box” of all programs <br />provided by the HRA. <br /> <br />2.0 Program Summary: <br /> <br />2.1 There currently are insufficient f unds in the loan pool to issue new loans. There are <br />four loan applications on hold based upo n the decision of th e HRA to refund the <br />program. The household incomes for these four applications are $54,457, $55,377, <br />$62,000, and $76,000. <br /> <br />2.2 The Revolving Loan Program has been very in strumental in helping homeowners finance <br />their home improvement projects. As the end of June 2007, the HRA has financed a total of <br />124 loans in the amount of $1,121,837 since Apr il 2000. The loan funds have helped to <br />finance over $3.4 million in home improvements. (Review summary of loan amount and <br />improvements). <br /> <br /> <br /> Roseville Owner Occupied Loan Progr am Funding (8-18-07) - Page 1 of 4