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REQUEST FOR HRA ACTION Date: 11-16-10 Item No: 9 a. Staff Approval: Agenda Section Action Items Item Description: Lake Josephine Association Petition for establishing an Housing Improvement Area (HIA) (HF0102) Background On November 16, 2009 the Roseville City council adopted the attached Housing Improvement Area Policy (Attachment A) in order to guide future requests for establishing HIAs. The Lake Josephine Association (LJA) recently met with HRA staff to discuss the needs of their association. The LJA is a 23-unit complex located at 3076 Lexington Ave., behind the Dairy Queen, and across from Lake Josephine beach. The building was originally constructed in 1969 as an apartment building and in 1979, it was converted into a condominium association. The LJA was self managed until January 2006 when they hired Advantage Townhome Management (ATM) to manage their association. ATM has assisted LJA in order to make yearly maintenance improvements that are budgeted around $10,000. The LJA has come to the HRA because they lack the funds necessary to make major improvements. The LJA needs to update their elevator to meet 2012 state building code, replace windows, boilers, siding, and make common area improvements such as flooring, doors, fixtures, paint and mechanical work related to ventilation. The estimated costs for these improvements are $403, 800. LJA does not have the replacement reserves needed to make the improvements and has sought financing from two banks which have denied their request (Attachment B). LJA has approached the RHRA to ask for a HIA to be established. Staff met with the LJA to discuss the project and go over the City’s HIA policy. The LJA meets the two eligible uses for the HIA Financing under section 3.01 of the policy; namely Item B “to correct housing or building violations as identified by the City Building Official” and Item D “to increase or prevent the loss of the tax base of the City in order to ensure the long-term ability of the City to provide adequate services for its residents”. The LJA held their annual board meeting on November 11, 2010 and will be supplying the RHRA a petition requesting the City hold public hearing to establish the HIA for LJA. The petition is signed by more than 51% of the property owner’s. The City Council is the only body that can adopt an ordinance to establish a HIA. This project is before the HRA for two reasons: 1.Review and to make recommendation to the Roseville City Council to hold the public hearing for adoption of the ordinance; 2.The RHRA could be the implementing entity for the fee on the association. This means that if the City does not bond for the HIA improvements than the RHRA may Lake Josephine Petition for HIA (11-16-10) -Page 1 of 2