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<br />REQUEST FOR HRA ACTION <br />Date: 07-19-05 <br />Item No: 7.a. <br />Staff Approval: Agenda Section: <br /> CB Action <br />Item Description: Adopt New Roseville Family Ownership Loan Program <br />Background <br />1.0 <br />1.1The HRA currently has an Owner Occupied Revolving Loan Program which provides 4 <br />percent interest loans at a maximum of $10,000 to Roseville residents for interior and <br />exterior home improvements. Administration of the loan fund is provided by the <br />Housing Resource Center. This program has been very successful in supplementing <br />resident’s minor renovation projects. There is no income restriction tied to the program. <br />1.2With an initial investment of $490,000 in 2000-2002, the Revolving Loan Program is <br />currently funding itself with an estimated $183,747 in fund balance. As of the end of <br />June, a total of 93 loans in the amount of $804,585 have been issued since April 2000. <br />The loan funds have helped to finance over $1.37 million in improvements. This <br />program does serve a good purpose and should not be changed at this time. <br />Revolving Loan <br />Loan Pool: $490,000.00 <br />Total number of applications received: 107 <br />Applications in process: 2 <br />Number of loans closed to date: 93 <br />Total dollar amount of projects: $ 1,376,495.81 <br />Total dollar amount of funds used for loans closed: $ 804,585.96 <br />Program Income through February, 2005 $498,333.58 <br />Total dollar amount of funds remaining in pool: $183,747.62 <br />New Program Summary: <br />2.0 <br />2.1Based upon the recommendation of the HRA finance subcommittee, a new program <br />should be created to target home improvements by young families with children. This <br />would provide a focus to the HRA goal to attract and retain young families, helping to <br />provide specific funds for them to invest in the older, more affordable homes in the <br />community. This goal helps to encourage neighborhood balance as well as strengthen <br />Roseville’s school districts. Based upon the HRA finance subcommittee <br />recommendation, the following is a summary of this new proposed loan program. <br />Program Overview <br />2.2: The loan program is designed to supplement existing loan programs <br />available from MHFA, Ramsey County, private lenders and other similar sources and is <br />targeted to families with younger children through the eligibility criteria. Eligible work <br />shall include repairs, replacement or new construction that will: <br />Roseville Family Home Ownership Loan Program (07-19-05) - Page 1 of 3 <br /> <br />