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REQUEST FOR LDC ACTION Staff Approval: ��., Date: 11-18-08 Agenda Section: II a. Item Description: Roseville Local Development Corporation (LDC) Agenda Items 1.0 REQUESTED ACTION The transfer of Calibre Ridge loan funds from the Roseville Local Development Corporation (RLDC) to the Ramsey County Housing Redevelopment Authority. 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 project on County Road B called Villa Park Once the LDC was incorporated there were several other loans made to various other developments that used HUD funds to assist in the development of affordable housing for new construction or rehabilitation. For the City to secure the HUD funds for these purposes, HUD required the establishment of a Local Development Corporation (LDC). 2.2 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 dissolved. From some of the remaining loans program income (loan and interest payments) the Roseville HRA can use those funds for eligible proj ects that serve low-to-moderate income residents. The HRA primarily has the same authority as the LDC for use of the federal funds. 2.3 Normally that LDC has only had one meeting a year to elect officers from the members of the HRA to serve as President, Vice President, Secretary and Treasurer. This will be the first time that the LDC will have an action item for consideration. Calibre Ridge is a 49-unit rental townhome development constructed in 1993 and located at 151 Capitol View at the corner of Rice Street and Hwy. 36. Forty-eight (48) of the units have three bedrooms and one (1) unit has two bedrooms. Three bedroom units have 1.5 baths and 10 units have basements. Two units are handicap accessible. Each unit has an attached single car garage. There is a management office on the property, a small laundry facility and a small playground. 2.4 The renting of units within the project is restricted by a Declaration of Land Use Restrictive Covenants for Low-Income Housing Credits (known as a LURA) through 2023. Rent and income restrictions are at 60% of Area Median Income (AMI) except for four (4) HOME units, two of which are restricted at 50% of AMI. This means that the maximum rent for most of the units is currently $1,124 per month plus utilities. LDC RHRA Action (111808) — Page 1 of 3