2006-11-21_Agenda - Laserfiche WebLink

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3 Other Potential Housing Fund Sources: The City should consider that there are other possi ble sources of funding that could be reserved for this type of large project renovation le nding. The following is a brief summary of those sources: 1. Unobligated Tax Increment Revenues from Other Housing Related Projects – There could be some unobligated tax in crement revenues from other projects in the City that could be applied to providing loan funds for housing improvements. This option needs to be further evaluated but the city’s overall ta x increment plan for the entire city clearly identifies using tax increment for housing improvement purposes. 2. Individual Loans for only those with lower incomes – This could pr ovide a specific target to only those with lower incomes but wo uld also be a less secu re lending method as each loan would be subordinate to the owner’s 1 st mortgage. Taxes are generally in a higher position than mortgage and paid first. Financial Need of Owners: The Council may also wish to consider the fina ncial means of the property owners in Westwood Village I. According to Ramsey County Propert y Records, the average value of these town home units is approximately $211,000. The Citywide median value is $216,000. Providing financial assistance to average-valued homes sets an unusually low eligibility standard. If this were the only benchmark, approximately 5,000 home owners in Roseville would be eligible for similar assistance. However, many of these owne rs have lived in their unit for many years and their home value is not a factor of what they can financially affo rd but rather a factor of the market inflation over a long period of time. A self certification of income was prepared and mailed to all of the unit owners within Westwood Village. As of the date of this report the following is a summary of those results. (See attached sample provided by Ramsey County and used for the survey) 33 of the 47 units returned complete d surveys or a 70% return rate. Of those 33 units, 61% have incomes at or belo w 120% of the average me dian income for the metropolitan area as summarized below. The HR A has set 120% as an affordable workforce housing limit within other programs such as th e Family Affordable Loan Program, Housing Redesign Program and Applewood Pointe Project. According to funding requirements of other public entities for multi-family projects such as (HUD, MHFA, Met Council and Ramsey County), 51% of the units must be deemed affordable to be eligible for public assistance. This project meets and exceeds that definition based upon Roseville’s affordable housing limits. In addition, 54% of the house holds are over the age of 55. Income Level % of total affordable units Below 50% AMI 5% Between 51% - 60% AMI 10% Between 61% - 80% AMI 35% Between 81% - 100% AMI 30% Between 101% - 120% AMI 20%