2006-02-21_Agenda - Laserfiche WebLink

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MEMO TO: Cathy Bennett FROM: Greg Finzell RE: Request for support of RCLT DATE: February 9, 2006 Request to Ramsey County for Funding; Request of Support from Roseville HRA. The Rondo Community Land Trust (Rondo CLT) is requesting support from Ramsey County in the amount of $250,000. Funding from Ramsey County will be applied towards the implementation and expansion of the Homebuyer Initiated Program (HIP) and Homebuyer Initiated Program /Homeownership Program (HIP/HOP) programs and new single-family construction in 2006. The Homebuyer Initiated Program (HIP), launched in early 2003, is a homeownership program through which Rondo CLT assists income-qualified households in purchasing and fixing-up houses of their choice that are for sale on the open real estate market in Saint Paul. HIP/HOP serves families that are currently in St Paul Public Housing or that have a Section 8 certificate with children whose adjusted gross incomes does not ex ceed 80% of the HUD metro median income, to purchase a Rondo CLT land trust home in St. Paul. Rondo has also built single-family Energy Star rated new construction within the City of St. Paul. Rondo CLT is requesting the Roseville HRA’s support in the funding request to Ramsey County in the amount of $250,000 for the expansion of the HIP, HIP/HOP and new construction programs to be used in Roseville and other Ramsey County suburban communities. Background and Organizational Summary: Rondo Community Land Trust (CLT) is a comm unity-based affordable housing land trust that was started in the Summit-University neighborhood of St. Paul. Rondo CLT is named after Rondo Avenue, a main commerce avenue that was renamed Concordia Avenue during the construction of Interstate 94. The construction dislocated many long- term residents and cut through the predominantly African American neighborhood of Rondo. Rondo CLT is a publicly supported, tax-exempt organization, the By-Laws require that all community land trust homes are sold to households at or below 80% of the area median income. The Mission and the Land Trust Model Rondo CLT provides quality, permanently affordable housing for low and moderate- income, multi-generational households. The purpose of the Rondo CLT is to creatively meet housing needs while preserving the economic and cultural diversity of the community. Rondo CLT’s mission is achieved by acquiring properties in disrepair, managing the rehabilitation process, and reselling the homes to income-qualified families and individuals. While the land trust model has been proven successful for over 25 years in other land transactions, it is still unique in the affordable housing industry. Rondo CLT achieves permanent, long-term housing affordability through the use of a Ground Lease. To ensure affordability upon the resale of the home, Rondo CLT’s Ground Lease includes a limited appreciation resale formula. Upon resale, the homeowner takes any investment plus 25% of the appreciation in market price. The sales price to the next buyer remains affordable because the new sales price is