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<br />REQUEST FOR HRA ACTION <br />Date: 07-19-05 <br />Item No: 7.b. <br />Staff Approval: Agenda Section: <br /> CB Action <br />Item Description: Approve Funding for GMHC Senior Housing Regeneration Program <br />for Roseville <br />Background <br />1.0 <br />1.1 <br />The Senior Housing Regeneration Program (SHRP) through the GMHC has been very <br />successful in Roseville to address the first time homebuyer need as well as provide an easy <br />alternative for seniors selling their home. If a senior sells their home under this program, <br />they receive fair market value and they would be free of the hassles of making needed <br />updates, repairs or holding open houses. If the home is purchase by GMHC, they will make <br />the renovations needed for resale to a first time buyer at and affordable price (affordable to <br />those making 80-115% of median income). <br />1.2 <br />The pilot program did not require City and/or HRA funds. Eight single family homes were <br />purchased and sold to first time buyers under the program with state and county funding. <br />The funding covered the gap between the cost of purchase, renovation and the sale at an <br />affordable price. A portion of the gap is covered by a second mortgage. The average gap in <br />Roseville is between $50,000 and $60,000. <br />1.3 <br />To continue to implement this program in Roseville, the HRA will need to provide gap <br />funding to GMHC. <br />HRA Finance Subcommittee Recommendation: <br />2.0 <br />2.1 <br />The HRA finance subcommittee recommended that this program be funded using the <br />existing restricted funds which already requires income pre-qualification. In addition, the <br />program meets the HRA’s goal to attract new families to the community. However, the <br />HRA finance subcommittee requested that a better partnership with existing area realtors be <br />explored to jointly promote the program. Staff and Chair Majerus are meeting with GMHC <br />on Monday to discuss the structure of that partnership. <br />Suggested 2005 Restricted Fund Distribution & Admin Fees: <br />2.2 The financing <br />subcommittee suggested providing $200,000 to the program out of the restricted fund <br />721. These funds would provide gap funding for the purchase of an estimated 3-4 homes. <br /> Based upon the condition of the home and required rehab costs, most of the gap funds <br />would be recaptured in a second mortgage held by the HRA. (See attached example). <br />Roseville SHRP Program (07-19-05) - Page 1 of 2 <br /> <br />