2009-10-20_Agenda - Laserfiche WebLink

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mcrximum amount of time that the City has ever issued for any bond is I S years. ✓ The Association in a HIA will need to provide financial guarantees to ensure the repayment of the HIA financing. ✓ The proposed project, including the use of HIA financing, should be supported by a petition of at least 51% of the owners within the Association requesting the creation of the HIA. The law only requires 25% of the owners sign the petition. However it is staff's recommendation to the City to have a majority of the Association Home Owner's request the HIA be createc� ✓ The Association must have adopted a financial plan, prepared by an independent third party. ✓ HIA financial assistance is considered `last resort financing'. ✓ The Association will be required to enter into a development agreement and disbursement agreement. ✓ The improvements financed through the HIA should primarily be exterior improvements and other improvements integral to the operation of the proj ect, e.g. boilers. ✓ The average market value of units in the association should not exceed the maximum home purchase price for existing homes under the State's first time homebuyer program. (In 2009, the metro amount is $298,125) ✓ Options for financing the HIA can be City-issued bonds, Existing City fund balances or Roseville Housing and Redevelopment Authority fund balances. ✓ The association will pay the city an assessment fee of 2% of the total amount of project to cover administrative costs. ✓ The division of the costs for the proposed improvements (i.e., how the fee is spread to unit owners) shall follow the method utilized in the Association's by- laws and declarations, except that if the Associations by laws and declarations call for the fee to be imposed on a basis other than tax capacity or square footage, the City Council must make a finding that the alternative basis is more fair and reasonable. This provision is needed because of 2009 legislation. ✓ If it is determined that RHRA funds will be used, the City Council will still be required to make the findings of need regarding the creation of the HIA; adopt an ordinance establishing the HIA; and designate the RHRA as the implementing agency. The attached policy has been reviewed by the RHRA attorney Steve Bubul to make sure that the RHRA HIA Policy Discussion - Page 2 of 3