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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 e 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 e 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