2006-06-20_Agenda - Laserfiche WebLink

Home

Roseville SHRP Program (06-20-06) - Page 1 of 1 REQUEST FOR HRA ACTION Date: 6-20-06 Item No: 8.a. Staff Approval: Agenda Section: CB Action Item Description: SHRP Gap Funding - 1000 Woodhill (HF_0048) 1.0 Background 1.1 The HRA approved the program outline and funding for the Senior Housing Regeneration Program (SHRP) for Roseville in August 2005 with the Greater Metropolitan Housing Corporation (GMHC). The approval allocated $200,000 for the purchase gap of homes sold by seniors and purchased by first time home buying families. 1.2 As part of the program approval process, the HRA provided administrative approval for gap funding up to a cash-out limit of $35,000 on any one home transaction . This was to allow purchases of property to occur in a timely manner rather than delay 1 month for HRA approval. It is unclear if the cash-out limit includes second mortgages or is limited to overall program loss which should be clarified for future transactions. 2.0 Request for Gap Funds – 1000 Woodhill: 2.1 GMHC would like to make an offer to purchase a home at 1000 Woodhill Drive in Roseville under this program criterion. The home is a small bungalow and needs approximately $12,500 in renovation which includes kitchen upgrades, replace doors, repair tile in bath, repair wood floors, repainting interior, mechanical upgrades and electrical upgrades. 2.2 Based upon the purchase price, renovation costs and the estimated resale value, the project will need a $65,000 second mortgage. This will provide an affordable purchase by a first time homebuyer under the program criteria. However, based upon the estimated appraised value and the purchase and rehab costs, there will be an estimated profit of $10,100. Therefore, the total gap funding needed from the HRA would be $54,900. (See attached proforma). 2.3 The benefit of the assistance by the HRA is that the home will be brought up to code and modernized, the value of the home will increase, and the risk of the home converting to rental without proper renovation is eliminated. In addition, the goals of the program to provide housing for first time home buying families will be achieved. 4.0 Suggested HRA Action By motion , approve the gap funds not to exceed $65,000 for the purchase, renovation and resale of 1000 Woodhill Drive in Roseville under the Roseville Senior Housing Regeneration Program Attachments: Proforma, site map. Prepared by: Cathy Bennett (651-792-7015)