2007-09-18_Agenda - Laserfiche WebLink

Home

Roseville Owner Occupied Loan Progr am Funding (8-18-07) - Page 2 of 4 2.2 On average $8,000 in loan principal and inte rest revolve back into the loan pool. Approximately 4-5 loans are fully paid each year and the funds are filtered back into the loan pool to provide additional loans. (Refer to principal and interest report). 2.3 Looking over the life of the program since 2000, th e average income of residents who have received loans is $69,000. Therefore, the program has historically been providing funds to households with median income. There is no income restriction on the ownership loan program and there are approximately 20 loans or 17% of the total number of loans that have been issued to households making more th an $94,200 which is above the current 120% of median income limitation for a family of 4. Ther efore, it is estimated that 83% of loans are serving households of median income. 2.4 The originating goals of the ownership loan program are: a. Spur reinvestment in Roseville’s housing stock. b. Target mid-income households. c. Be simple and easy to use d. Be sustainable and revolving. e. Not duplicate other available programs. 2.5 The ownership loan program is designed to m eet the needs of middle income families. There are many other state and county programs that specifically serve lower income households with deferred payment and lower interest. The RHRA has established that an affordable workforce income limit be 120% of th e area median income for a family of four. The State and County programs typically serve in comes that are 80% of median income or below and the RHRA’s programs are not de signed to duplicate these state and county programs but supplement them. *2005 Median Income: $77,000.00 *2006 Median Income: $78,500.00 80% of Median: $61,600.00 80% of Median: $62,800.00 120% of Median: $92,400.00 120% of Median: $94,200.00 2.6 In 2006, the median single family home asse ssed market value was $233,000. In addition, 63.8% of the single family homes are under an assessed value of $250,000 and 91% are under $350,000 (Refer to attached valuation map). The existing Family Ownership Program and Redesign Program both have assessed value limitations of $251,856 for 2007. There have only been 4 family loans issued since its inception in 2006. A direct mail campaign for this program was sent to all households that were below the assessed value limit in May 2006. This generated many calls but did not resu lt in a large amount of loans. The lower activity level could be due to the assessed valu e limit but is also due to the child under the age of 16 limitations. In the last month, staff has turned down several inquiries from families (the HRA’s target market) for the Redesign Program due to those residents having a home assessed value above the current limit.