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<br />REQUEST FOR HRA ACTION <br />Date: 10-18-05 <br />Item No: 8.a. <br />Staff Approval: Agenda Section: <br /> CB Action <br />Item Description: Senior Housing Regeneration Program Purchase Policy (HF_0033) <br />Background <br />1.0 <br />1.1 <br />The HRA approved the program outline and funding for the Senior Housing <br />Regeneration Program (SHRP) for Roseville in August 2005 with the Greater <br />Metropolitan Housing Corporation (GMHC). The approval allocated $200,000 for the <br />purchase gap of homes sold by seniors and purchased by first time home buying families. <br />1.2 <br />The approved program structure includes the following: <br />Home Sold to First Time Homebuyer <br />Home Sold to households of two or more with one member age 16 years of age or <br />younger. <br />Household income must be at or below 80% of median income <br />New homeowner must complete Homebuyer Training <br />Homes will target public service employees (police, fire, teachers) and Roseville renters <br />Homes will be marketed through MLS to encourage marketing and participation by local <br />Realtors <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 />Purchase Opportunity: <br />2.0 <br />2.1GMHC has made an offer to purchase the first home in Roseville under this program <br />criterion. The home is small and needs approximately $40,000 in renovation. Because of <br />its low purchase price and future market value, it is unlikely that there will be a second <br />mortgage recapture option. However, this will be a true affordable home that can meet <br />the HRA’s program goals. The gap for the project is estimated to be $30,000-$35,000 <br />which is also within the limits that GMHC has normally experienced on other projects. <br />(See attached proforma). <br />2.2Recapture of the funds will be less direct. However, the home will be brought up to code <br />and modernized, the value of the home will increase, and the risk of the home converting <br />to rental without proper renovation is eliminated. In addition, the goals of the program to <br />provide housing for first time home buying families will be achieved. <br />Roseville SHRP Program (10-18-05) - Page 1 of 2 <br /> <br />