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Sources: <br />2.2 There are several sources of funds associated with the HRA. The primary sources <br />to fund HRA specific non-income restricted programs and administrative costs are the cash <br />balance, levy funds, home & garden fees and interest. These are highlighted in the Sources <br />section of the draft budget. I have provided two budget options (full levy and ½ levy) which <br />affect the sources of funds by a difference of $300,000. In addition, the cash balance is <br />based up what is available at the end of the year (refer to estimated 2004 revenue/expense <br />worksheet). I tried to determine what programs will have expenditures by year end to <br />estimate that cash balance. If those dollars are not spent, the amount of the cash balance <br />could increase. My estimate for the maximum increase to the cash balance, based upon <br />program’s coming under budget and/or not being implemented is $50,000. <br />Restricted Funds (CDBG/LDC) funds <br />2.3 – There is an estimated $350,000 in federal funds <br />available to the HRA for use on a program(s) for housing. These funds, however, can only <br />be used if the project complies with federal guideline. Generally this means that the program <br />must serve people with incomes at or below 80% of median incomes. This must be proven <br />through income verification. Unless that requirement can be substantiated, the funds are not <br />recommended for use. I have highlighted restricted use fund program options such as - first <br />time homebuyer, multifamily renovation and housing replacement program. These funds <br />can not be used for any administrative costs associated with the administration of the HRA <br />or its programs. <br />Why invest in housing maintenance and preservation through an HRA Levy? <br />3.0 <br />3.1An HRA Levy is important to provide a dedicated and continuous source of funding to <br />achieve the vision and goals of the HRA Housing Plan. The vision and goals of the HRA <br />strive to provide the residents of Roseville with a high quality of life, sense of community <br />and safe quality neighborhoods. In addition, the programs are structured to housing that <br />is balanced in price and product for people of all ages. <br />The HRA housing fund is fairly stagnant, meaning that limited new dollars are dedicated <br />to the fund each year except interest income and loan repayments. The HRA has three <br />Loan Funds <br />categories of funds – 1.) – amount of dollars tied up in the revolving loans <br />Restricted Funds <br />funds and program income (estimated at $500,000) 2.) – Federally <br />Unrestricted Funds <br />mandated funds ($370,000) and 3.) - Annual Levy and cash – <br />estimated at ($200,000 - $300,000 depending upon cash available). It is estimated, based <br />upon the last 3 years that between $250,000 - $300,000 has been used to fund existing <br />HRA/City housing programs – mostly single family renovation. <br />This is not enough funds to support any new programs related to Multi Family <br />. The <br />Renovation, Rental Licensing and expansion of First Time Home Buyer programs <br />restricted funds could support programs where the renovation and/or purchase are <br />restricted to those with incomes at or below 80% of median incomes. These funds <br />can not be used for any administration costs. <br />If the HRA wishes to continue to provide consistent and ongoing housing programs and <br />implement new initiatives - a dedicated funding source must be provided. The 2004 levy <br /> HRA Budget Discussion - Page 5 of 7 <br /> <br />