2008-03-18_Agenda - Laserfiche WebLink

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Ramsey County and State of Minnesota housing programs. 3.2 The recently completed RHRA strategic plan contemplated the combining of certain programs as well as the elimination or retooling of programs and the creation of a new program. The RHRA has indicated that it is interested in combining the Revolving Loan program with the Family Affordable Loan program. In regards to the SHRP, the RHRA did not allocate any funds in the 2008 budget but indicated that the program should be modified. The RHRA strategic plan indicates that the existing Roseville Housing Design program should be retooled to focus more on providing resources to promote green design and building. There has also been an interest in looking at our current multi- family programs to see how they can be improved. Both the RHRA strategic plan and 2008 budget included continuing the use of the Housing Resource Center and the holding of the Home and Garden Fair. 3.3 As part of the RHRA budget, money was allocated for the creation of a part-time Housing Program Coordinator to assist the RHRA in implementing and administering its programs and services. Jeanne Kelsey will be starting on March 17th, 2008 and will be the lead staff person in implanting the changes to the RHRA's programs and services. 3.4 Given Ms. Kelsey's experience and expertise with housing programs, the RHRA Executive Director would like to utilize her skills as part of our program evaluation in upcoming meetings. However, there are some programs that the RHRA should discuss now to begin making the needed changes. Specifically, the RHRA should make some decisions on combining the Revolving Loan program and the Family Affordable Loan program. 3.5 Revolving Loan Program and the Family Affordable Loan Program 3.6 The Revolving Loan Program (RLP) has a balance of $31,272 as of Februrary 29, 2008. The RLP allows for loans up to $20,000 at 4% interest to make exterior and interior improvements in owner occupied homes. There are no income limits in qualifying for eligibility. The RLP loans are paid back on a monthly basis. (For example a$20K loan on a ten-year term has a monthly payment of $203). A typical month sees payments back to the fund between $8-10,000. This money is then available for additional loans. Occaisionally, when the homeowner refinances their house, the second mortgage is paid off and the program income for a month is greater than $10,000. Since all of the original funds have been committed and the small amount of payback each month, there will be limits on making on many loans unless there is additional cash infusion. The 2008 budget did allocate additional funds to be allocated ownership rehab programs, but the actual amount was not decided pending a decision on the future of the ownership rehab programs. 3.7 The Family Affordable Loan Program (FALP) has a balance of $104,962 as of February 29, 2008. The FALP allows for loans up to $35,000 at 4% interest for a period up to ten years. To be eligible for the FALP, applicants must be at or below 120% of Area Median Income ($94,200 for a family of 4) and have at least one person under the age of 16. Like the RLP, FALP loans are paid back on a monthly basis. Unlike the RLP, FALP RHRA Program Evaluation (03-18-08) -Page 2 of 4