2008-08-19_Agenda - Laserfiche WebLink

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• Provide funding assistance to building owners that have more than 51% of the tenants with incomes below 80% of the Area Median Income at the time the loan is applied for. This income limit is $64,720 for a family of four in 2008. • Gross rents including utilities should not be above the Metro Area Section 8 Housing Choice Voucher Payment Standards that are determined by the Metro HRA. The current payment standards for the area are $600 for an efficiency, $768 for a one-bedroom, $932 for a two-bedroom, $1221 for a three bedroom, and $1371 for four-bedroom. • Charge an interest rate that is blended with any other loan program that would not exceed 6% when using another lender. For example if rental property owner wants to use 1V�IFA rental rehab loan program of 6% then Roseville's interest rate would 0%. Staff recommends that a maximum of 3% interest rate to be charged if a property owner uses equity or replacement reserves. • Loan term should be 15 years with normal amortizing payments. Full repayment of the loan would be due upon transfer or sale of the property. The ratio of all loans secured by the property, including the new loans must not exceed 100% of the property value. • Property must be a minimum of 25 years old. This requirement is consistent with our single family rehab loan program. In addition we are recommending the property is to be 5 or more units in size. • Loan amounts minimum of $5000 with a maximum loan amount of $5,000 per unit and $50,000 per building. If properties need substantial rehabilitation then staff recommends that applicants can come to the board to request more funds than the maximum allowed. • Require membership to the Crime Free Multi-Family Association, that meets once a month, in order to continue to have Sarah Mahmud stay engaged with our building owners/manager/caretakers in our community. Currently, for all Roseville Properties that belong to the association Ms. Mahmud prints off a monthly report for the property owners/managers to make them aware of the police calls and crime activity at their buildings. Continued community engagement will help with reducing crime in Roseville. In addition Ms. Mahmud does assist any single family, multi-family, or commercial properties in Roseville with recommendation on exterior and interior improvements (landscaping, lighting, placement of community gathering places, safety enhancements) that can be done in order to reduce crime. • RHRA priority has been on incorporating green construction into RHRA programs. Consideration should be given to require rental properties to have an energy audit done in order to have the property owner understand the operating deficiencies of the building and then address those deficiencies in the rehabilitation. In addition have a Housing Quality Standards (HQS) Inspection completed. HQS are the minimum required property operating conditions as promulgated by the U.S. Department of Housing and Urban Development. • All applicants must have an acceptable credit history: Property owners must be current on mortgage/contract for deed payments and property taxes. Borrower will pay all mortgage filing fees, title fees, and inspection fees. • All of the requirements above would allow the RHRA program to parallel financing Roseville Mulri-Family Rental Loan Program (08-19-08) -Page 3 of 4