2005-08-16_Agenda - Laserfiche WebLink

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will make the renovations needed for resale to a first time buyer at an affordable price (affordable to those making 80-115% of median income). The pilot program did not require City and/or HRA funds. Eight single family homes were purchased and sold to first time buyers under the program with state and county funding. The funding covered the gap between the cost of purchase, renovation and the sale at an affordable price. A portion of the gap is covered by a second mortgage. The average gap in Roseville is between $50,000 and $60,000. To continue to implement this program in Roseville, the HRA is being asked to provide gap funding to GMHC. The financing subcommittee suggested providing $200,000 to the program out of the restricted fund 721. These funds would provide gap funding for the purchase of an estimated three to four homes. Based upon the condition of the home and required rehab costs, most of the gap funds would be recaptured in a second mortgage held by the HRA. Chair Majerus and Cathy Bennett provided a summary of a meeting with GMHC President, Carolyn Olson and the possibility of a partnership with local realtors to implement the program. It was suggested to table the action on the program until member Hermes could provide comment regarding the suggested partnership with Realtors for the program implementation. Member Kelsey asked when payments are made on the “soft second” mortgage. (not until the house is sold). She also wondered if interest on the soft second could be increased to encourage long term ownership with a write down at the end of a longer mortgage period. Staff will review. Member Maschka asked about a “shared equity” relationship with the homeowner. Staff will review. Motion: Member Millasovich moved, seconded by Member Kelsey, to table agenda item 7.b. until August 16, 2005 for further evaluation by the full board. Ayes: 6 Nays: 0 Motion carried. Review and Approve Neighborhood Enhancement Action Steps (HF0025) c. Chair Majerus reportedthatthe presentation by Barbara Raye to the City Council was tabled until August 8, 2005 due to scheduling conflicts. Therefore, Chair Majerus suggested tabling action on the possible action steps until August 16, 2005 for input from the City Council. Motion: Member Kelsey moved, seconded by Member Maschka, to table item 7.c. until August 16, 2005 for further comment by the City Council. Ayes: 6 Nays: 0 Motion carried. 3