HomeMy WebLinkAbout1991-02-27; Rehabilitation Loan Committee Ad Hoc; MinutesMINUTES
MEETING: REHABILITATION LOAN COMMITTEE
MEETING DATE: FEBRUARY 27, 1991
MEETING TIME: 1:30 PM
MEETING PLACE: HOUSING AND REDEVELOPMENT DEPARTMENT
2965 ROOSEVELT ST., SUITE B
CALL TO ORDER:
Meeting called to order by Chairperson John
McCoy at 1:30 p.m.
ROLL CALL:
PRESENT: Jim Elliott, Financial Management
Director; Jay Howard, Security Pacific
Bank; John McCoy, Housing and
Redevelopment Advisory Committee
Member; Marty Orenyak, Community
Development Director:
ABSENT: None
STAFF : Kathy L, Graham, Housing and
Redevelopment Director; Patricia A. Cratty, Senior Management Analyst; Lynn
Brown, Senior Management Analyst; Ralph
Anderson, Utilities/Maintenance
Director; Larry Wiley,
Utilities/Maintenance Assistant
Director.
APPROVAL OF MINUTES:
Yinutes of November 13, 1990. Only Member
Elliott present who attended November meeting.
Minutes of October 26, 1990, approved as
submitted.
ITEM 1. MODIFICATION TO RESIDENTIAL
REHABILITATION LOAN/DOOSE:
Utilities/Maintenance Director Ralph Anderson
presented background information on the Doose
property as outlined in department staff report.
Mr. Anderson used a site plan depicting the sewer
line and septic tank systems within the area of
Holly Brea Lane. Mr. Anderson presented a brief
history of the septic tank failure at the Doose
property which initiated her obtaining a
rehabilitation loan to connect to the City’s
sewer system.
Discussion continued on the City’s ability to
form a sewer district to connect to Doose
property sewer line and buy line for $12,000-
$13,000, which would be Ms Doose’s portion of
district formation,
Mr. Anderson stated that the project was a 3
street project and the City’s Municipal Projects
Division was currently ready to put together a
package to be forwarded to the City Council for
use of Sewer Enterprise Funds. Mr. Anderson also
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Y MEMBERS
MINUTES
Rehabilitation Loan Cmte. 2/27/91 Page 2
stated that the City would have to purchase the
improvements to the Doose property in easements
secured by Ms Doose on adjoining properties. ?Is
Doose has agreed to sell her improvement and pay
down her rehabilitation loan to $13,000 instead
of $25,000 which is currently owed.
Member Orenyak had a question regarding the
easements Ms Doose received. Mr. Anderson
answered question stating that the property
owners agreed to easements and the City has been working on this project for over a year.
Member McCoy questioned estimate of Doose’s
portion. Mr. Anderson explained that with Ms
Doose’s property there are currently 19 lots that:
can be served. Mr. Anderson further stated that
the sewer enterprise fund will float cost for
about 7-8 years, which is estimate of how long it
will take for all property owners septics to fail
and then they’ll also require hook-up to sewer.
Ms Cratty called attention to change in figure
totals. Member McCoy discussed loan package in
staff recommendation, item 4.
Ms Graham had question regarding the value of
property. It was noted that the value of the
property at $300,000 was in 1988.
Ms Cratty stated that we had to see if Ms Doose
was in financial position to take loan over. Ms
Cratty stated she had figures and data on
outstanding loans and that the 2nd loan she pays
interest‘only.
After further discussion, committee agreed to
staff recommendation 1-3:
1. Agree to the buy down of Ms. Doose’s loan by
the cost of the sewer improvements
(approximately $12,000).
2. Agree to permit Ms Doose to
consolidate/refinance not to exceed $150,000
at the time she qualifies for a loan
3. The City will be placed and remain in second
trust deed position
Committee further motioned to hold staff
recommendation number 4;
4. Upon refinancing, any funds that exceed the
current trust deeds totaling $142,000 will
be used to repay the City’s loan up to the
full amount.
until committee could re-evaluate terms of outstanding notes. Committee further agreed to
come back and re-evaluate loan terms on 1st trust
deed.
MEMBERS
ELLIOTT
MC COY
ORENYAK
HOWARD
MINUTES
Rehabilitation Loan Committee 2/27/91 PAGE '3
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ITEM 2. STATUS REPORT ON LOANS
Housing and Redevelopment Director, Kathy Graham,
pointed out revised rehabilitation loan fund .
balance report as contained in agenda packet.
Discussion held on status report with Patty
Cratty explaining location of each loan (sites).
No action.
ITEM 3. RESIDENTIAL REHABILITATION LOAN PROGRAM
Senior Management Analyst, Patty Cratty presented
staff report as contained in Agenda packet. Ms
Cratty stated that HUD had changes to the
Residential Rehabilitation/Commercial program
guidelines. Ms Cratty stated the committee could
put funds in low-affordable housing program.
Ms Cratty also explained that deferred loans are
being reviewed bi-annually. Also, that there
were currently 3-3 persons interested in
rehabilitation loan program.
Kathy Graham, Housing and Redevelopment Director,
said that the thought was to transfer money into
affordable housing and that there were a lot of
programs in the works.
Member Elliott asked if it was the committee's
place to do away with the residential
rehabilitation loans.
Discussion held on regulations governing available funds.
Member Elliott spoke about completing the bank agreement to do program. Mr. Elliott further noted that he would not advocate not doing
program.
Discussion held on possibility of choosing amount
to leave in Residential Rehabilitation Program for deferred loans and balance into affordable housing.
Lynn Brown, Senior Management Analyst, stated
there is $90,000 designated for rehabilitation in
the state treasury.
Member Elliott stated that he was trying to
understand the overall plan.
Member McCoy stated that he would like to leave
Residential Rehabilitation Program program and do
some loans.
MINUTES
Rehabilitation Loan Committee 2/27/91 PAGE 4
Member Howard asked to look at a marketing
program after program starts-up.
Member Howard further recommended that the Bank
Agreement be forwarded to City Council and then
to go out to representatives of other banks to
use as referral system.
Member McCoy agreed with consensus of committee
and motioned to return with agreement approved by
City Council and gear-up the Residential
Rehabilitation Loan Program.
ADJOURNMENT
By proper motion, the meeting of February 27,
1991 was adjourned at 2:30 p.m.
Respectfully Submitted,
KATHY L. GRAHAM
Housing and Redevelopment Director
BIB1 LEAK
Minutes Clerk
Secretary II/Housing and Redevelopment
v MEMBERS
ELLIOTT
MC COY ORENYAK
HOWARD