HRA Meeting Date: April 4, 2024
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
HRA to Hold a Public Hearing for the Sale of 2007 Hidden Valley Road.
Body
Action Requested:
HRA to hold a Public Hearing for the sale of 2007 Hidden Valley Road Valley Road to the Rice County Habitat for Humanity and Starfish.
Summary Report:
On February 12, 2024, the HRA held a Special Meeting to discuss the sale of a vacant HRA rental property to Rice County Habitat for Humanity (RCHH) and Starfish.
RCHH is exploring different ways they can keep homeownership affordable to the "next" RCHH participant family. With an eye on innovating, and shooting for the ever moving target known as "permanent affordability", RCHH and Starfish proposed the following three scenarios for the HRA Board's consideration (Attachment #1) when determining what to set the sale price at.
Below is an analysis of the scenarios proposed.
Based on their inspection and analysis of the property, RCHH and Starfish believe that the repairs and rehab needed prior to the sale of the property to a participant family, can be completed for approximately $50,000.
The "1st mtg w/ USDA/RD of $175,000" that is used, is for illustrative purposes. The first mortgage is determined on a case-by-case basis and is unknown at this time. RCHH endeavors to ensure that a participant family's maximum monthly payment (principal, interest, taxes, insurance (PITI), and utilities) does not exceed 30% of the household's income.
Based on the example with a household annual income of approximately $63,753, or with a full-time (defined as forty (40) hours a week, fifty-two (52) weeks a year) wage earner making $22.77 an hour, would be eligible for a mortgage through the United States Department of Agriculture (USDA) and Rural Development (RD) of $175,000.
The examples also assume:
* Household monthly income of $5,312.75;
* 30% of household monthly income $1,593.83;
* ...
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