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REQUEST FOR LDC ACTION Date: 01-15-08 Staff Approval: Agenda Section: PT LDC Agenda Item Description: Roseville Local Development Corporation (LDC) Agenda Items 1.0 REQUESTED ACTION Adopt minutes from the 2007 LDC meeting and elect officers for 2008. 2.0 BACKGROUND 2.1 The City's Local Development Corporation was formed in 1988 with the purpose of securing Federal Housing and Urban Development (HUD) funds to establish a low interest loan program specifically for the senior housing proj ect on County Road B called Villa Park The purpose of the loans was to provide seniors with an alternative for financing the purchase of condominiums at Villa Park, therefore making many of the units affordable. For the City to secure the HUD funds for this purpose, HUD required the establishment of a Local Development Corporation (LDC). This enabled the City to collect the program income once the loans were paid back Any program income must be used in accordance with current HUD guidelines serving those with incomes at or below the current 80% of inedian income. 2.2 There are currently three loans outstanding with residents in the Villa Park complex. The LDC is collecting the interest only on these loans. They are due and payable in full upon sale of each Villa Park unit. The loans were issued in 1989-90 and held 2% interest which is being collected. The total fund balance, liabilities and retained earnings in the account as of the end of 2007 is $308,315. $258,315 is available cash to use for programming and $50,000 is the outstanding loans. However, these funds are shown as a liability since they originated as Federal funds and must be reused in accordance with their guidelines as noted above. 2.3 In 2003 the HRA accepted the assets and liabilities of the LDC from the City Council. The LDC should remain in force until all of the loans are repaid. Once the loans are fully paid, the LDC could be abolished and the program income can be used by the HRA in Roseville for eligible projects that serve low-to-moderate income residents. The HRA primarily has the same authority as the LDC for use of the federal funds. 2.4 Per the requirements of the LDC Bylaws, Section 3.9 on January 8, 2008 public notice was posted for the January 15, 2008 meeting of the LDC. 2.5 In addition, each year officers are elected from the members of the HRA to serve as President, Vice President, Secretary and Treasurer. Refer to the draft minutes from 2007 LDC RHRA Acrion (011508) — Page 1 of 2