HomeMy WebLinkAbout1989-12-22; Rehabilitation Loan Committee Ad Hoc; MinutesMINUTES
Meeting of: Rehabilitation Loan Committee
Meeting Date: December 22, 1989
Meeting Place: City Council Chambers
Meeting Time: 9:30 a.m.
CALL TO ORDF: R:
Meeting called to order at 9:30 a.m.
ROLL CAI. L:
Present : Committee Members: Jim Elliott; Finance Director, Jay Howard; Financial
Institution, John Mc Coy; Hsg. & Redev. Advisory Committee, Marty Orenyak; Community Development Director
Staff: Chris Salomone; Hsg. & Redev. Director, Lynn Brown; Senior
Mgmt. Analyst, Patricia A. Cratty; Senior Mgmt. Analyst
Ms. Brown explained the that Housing Assistance
Plan of the City calls for rehabilitation of 75
owner units and 30 rental units as well as home
improvement of 75 owner units and 35 rental units.
Several months ago the City conducted a survey of
two census tracts to determine the need for
rehabilitation. Over 138 units were identified as
needing some degree of rehabilitation.
ITEM 1
SAN DIEGO TRUST AND SAVINGS AGREEMENT
The proposal from San Diego Trust and Savings was
reviewed. Member John Mc Coy asked if we were
going to consider commercial loans. Lynn Brown explained that HUD had increased their
requirements on commercial rehabilitation in terms
of hiring low-moderate income persons. It has
made it extremely difficult to do the program.
Also the city is concerned about the issue of homeless and housing low income persons. Chris Salomone said that redevelopment tax increment
(except the 20% housing set aside) could be used
for commercial rehabilitation. Member Orenyak indicated he was comfortable with dropping commercial at the present. The Committee concurred.
Member Jay Howard asked whether the criteria the bank had for loans would keep people from using the program. Chris Salomone indicated that the bank said they would be as flexible as possible.
Member Jim Elliott asked about differences between the bank proposal and what the city wanted. Lynn Elrown explained that the bank wants a proposal back from us and that the proposal they submitted was negotiable. Mr. Salomone asked whether the
$35,000 maximum was necessary. Committee felt if
there were requests over that amount we could go
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MINUTES
Rehabilitation Loan Committee 12/22/89 Page 3
to council for an exception. Member Orenyak
expressed concern for the $5,000 minimum. It was
agreed we would ask the bank to lower the minimum to $2500. The City will submit a counter proposal to the bank.
POLICY DECISI ONS FOR PROW? AM DES IGN
The Committee voted to accept the following policy decisions regarding program design.
1. Change the name of the program to Home Improvement/Rehabilitation Program.
2. In the Below Market Interest Program change the interest to 3-5% for the customer. The
program with the bank is an interest subsidy. Term of the loan would be 10-15 years. The minimum loan amount would be $2500 and the maximum would be $35,000.
3. Deferred loans would change to a minimum of
$0. The maximum to $35,000. There will be a
3-5% interest.
4. Grants would be maximum of $5,000.
The administrative budget was discussed. Staff
would not be considered until marketing is conducted and the demand for the program is determined. Member Orenyak suggested using one on one contact for marketing in the area of the survey rather than newspaper ads. It was agreed staff would explore Roy Sanchez as a possible person who could promote the program door to door. We also will prepare public service announcements for cable and radio. Staff will prepare the flyers, brochures, talk to Mr. Sanchez and come back to another meeting to be scheduled in January.
The bank agreement and administrative items will be discussed at the next meeting. The agreement
and the program design will be taken to Council
for approval by the beginning of February.
By proper motion the meeting of the Rehabilitation
Loan Committee was adjourned.
Respectfully Submitted,
LYNN BROWN
Senior Management Analyst
ADJOURNMENT
LB:al
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