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HIA Recommendation (11-21-06) - Page 2 of 5 fund making financing less of an issue. Material prices, interest rates and transportation cost have all risen since the others did their complexes too. In addition, single-board, cedar siding was a big selling point for the original builder; owners were told when a board goes bad they could just pop it off and replace it. Since 1969 wh en the complex was built, previous owners believed what the contractor promised a nd never budgeted for full siding replacement. Today’s owners are faced with attempting a ma jor restoration without any funds reserved for this purpose. Preliminary estimates indicate this project will run about $1.2 million dollars for 47 units. The monthly payments from c onventional/shorter term financing would be hefty; causing an extreme hardship on most owners. In addition, it is virtually impossible to the “association” to borrow these funds with normal financing methods. Question – Can the fee be split between each unit? Answer - Each Westwood Village I unit has its ow n property address and PIN number which the total fee would be evenly split between each unit owner and applied to their taxes as a special assessment. Question – How will the City and/or HRA finance the up-front costs of the project? Consideration - The program is basically a pass-through financing mechanism with virtually no- risk to the City or taxpayers. The City could loan the HRA funds to finance the program. In turn, the HRA can designate that the funds be a pplied to the property within the HIA which are paid back through assessments over a period of year s. There can be an agreement between the HRA and City to payback the loan with inter est based upon the semi-annual collection of the fee from the taxes. The City finance staff is worki ng to evaluate the best mechanism to finance the program in partnership with the HRA. 3.0 Process: Housing Improvement Area 3.1 On September 12, 2006 a petition of the owners within Westwood Village I was received by Roseville City staff. (attached) The petition includes 39 signatures. Per the statutory requirements, the area must include 25% of th e owners within the proposed HIA to sign the petition before it can be considered by the C ity. With 47 total units, Westwood Village I have been able to collect signatures from 83% of the owners. The petition specifically requests that the City set a public hearing to consider the adoption of an ordinance establishment a housing improvement area. Ordinances can only be adopted by the City Council . 3.2 The following is the proposed process in response to the petition. a. October 9, 2006 Council Meeting – Completed i. Accept the petition as adequate in that the required numbers of signatures (at least 25%) have been obtained. ii. Set a public hearing to consider establishment of a Housing Improvement Area consisting of parcels encompassi ng Westwood Village I for December 18, 2006. b. December 18, 2006 Council Meeting – i. Hold public hearing ii. Consider adoption of an ordinance establishing the HIA