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<br />REQUEST FOR HRA ACTION <br />Date: 08-16-05 <br />Item No: 8.b. <br />Staff Approval: Agenda Section: <br /> CB Action <br />Item Description: Approve Funding for GMHC Senior Housing Regeneration Program for <br />Roseville – ( <br />Tabled from July Meeting) <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 <br />easy alternative for seniors selling their home. If a senior sells their home under this <br />program, they receive fair market value and they would be free of the hassles of making <br />needed updates, repairs or holding open houses. If the home is purchase by GMHC, they <br />will make the renovations needed for resale to a first time buyer at and affordable price <br />(affordable to 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 <br />were purchased and sold to first time buyers under the program with state and county <br />funding. The funding covered the gap between the cost of purchase, renovation and the <br />sale at an affordable price. A portion of the gap is covered by a second mortgage. The <br />average gap in 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 <br />be explored to jointly promote the program. Staff and Chair Majerus met with Carolyn <br />Olson of GMHC on Monday to discuss the structure of that partnership which is <br />summarized below. <br />GMHC will meet with Realtors to promote the program and partnership and send out <br />information via email for that that are unable to attend. <br />A seller represented by a Realtor will pay the Realtor fee for homes purchased by <br />GMHC at no additional cost to GMHC. <br />If Realtor brings first time buyer to GMHC the Realtor will agree to a reduced <br />commission of 2.5% of the sales price. That additional cost will be added to the <br />proforma that calculated the second mortgage and gap funds. <br />Homes will be marketed through MLS but with the above understanding by local <br />realtors. <br />Roseville SHRP Program (08-16-05) - Page 1 of 2 <br /> <br />