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prepare program guidelines for Multi-Family Rental Rehabilitation Loan Program. 3.0 Discussion 3.1 Staff has been researching existing loan programs that are available for rental properties in order that we may address the gap in programming. In addition RHRA Staff have had discussions with the Crime Free Multi-Family Association and Sarah Mahmud the Community Relations Officer for the Roseville Police Department in order to further gain insight as to the main problems that need addressing related to crime in our apartment complexes. Some of the main problems that can be addressed through RHRA assistance would be related to theft inside and around the building, vandalism, loitering, energy efficiency of building, exterior and interior updating and any rehab/remodeling work that is needed to the multi-family rental properties in our community. 3.2 Some of the financing that is available currently use federal funds from the County or State which require that all work is monitored for Davis Bacon (union wages) requirements. This requirement does add more work to the project as well as cost. Most of the financing available is for buildings that rent to 50%-80% of the area median income. In addition larger complexes in Roseville would most likely take advantage of these programs and combine them with bond financing, along with Housing Tax Credits to do a substantial rehabilitation. Based upon limited financing that is available to use this type of funding Roseville would most likely only be able at to complete one proj ect approximately every 3-5 years. This would also really on property owners that understand and want to have long term affordability reporting criteria on there properties when they use the above funding as well. 3.3 Staff also has had discussions with smaller property owners regarding what type of assistance would be needed for the age of rental property that they own. We had varying perspective from property owners. Some owners believe in reinvestment to attract good tenants and some do no minimal reinvestment since they believe tenants damage there properties. The overall consensus from the discussions was that a favorable interest rate would be something of interest in order to assist in making improvements to the property. 3.4 Staff also looked at other communities to see what programs have been implemented. Richfield in 2004 created a loan program to assist rental property owners of the City of Richfield to make basic improvement to their properties. The program was designed to supplement existing loan programs available through Minnesota Housing Finance Agency (1V�IFA), Center for Energy and Environment, private lenders and other resources. Richfield's program was not intended to be the sole source of rehab funds available in the City and required the property owner match Richfield's funds at a one to one (1:1) ratio for all improvement projects. Richfield's interest rate was 0% and the loan was deferred for 15 years and forgiven. 3.5 Staff would recommend a similar program to be implemented with some of the following criteria and as outlined below. Roseville Mulri-Family Rental Loan Program (08-19-08) -Page 2 of 4