Rehabilitation Review Committee

MINUTES OF THE REHAB REVIEW COMMITTEE MEETING October 14, 2009 8:45 AM Members Present: Rodney Bowie, Joe East, Susan Goldman, Jim Roberts, and Jim Troeger Others Present: Denise Blake, Jennifer Gottlieb, and Wayne Sharkey Chairman Rodney Bowie called the meeting to order at 8:49 AM. Motion was made by Joe East to accept the minutes of the June 10, 2009 meeting. Jim Roberts seconded the motion. The motion carried unanimously. Old Business Nothing to discuss. New Business Wayne reiterated that the amendments to the Lead Grant discussed at the previous meeting were accepted, making the total award per unit $13,000.00, and a decrease in total number of units from 90 to 72, based on Davis-Bacon Wage Requirements. Wayne stated that the reports for the second quarter for the Lead Program have been submitted to HUD, in addition to the new online Federal Stimulus Reports now required. Community Development is currently above in spending, and several units above in production. All benchmarks are being met, and he anticipates receiving a high rating on the next evaluation. Susan Goldman mentioned the recent PR story featured on WFSB Channel 3 News. Congressman Joe Courtney and the staff of Community Development met with a family whose children had elevated blood lead levels prior to the rehab/lead work done at their home. Following completion of the project, all three children’s blood lead levels decreased dramatically. This was a very positive piece to promote the Lead Program and to highlight the direct effects Stimulus funding is having in this community. Neighborhood Stabilization Program: Jennifer Gottlieb explained that NSP was specifically designed with non-profits in mind. The intent is to give them funding to purchase properties, rehab them, and rent them as affordable housing units. The non-profits are requesting a home ownership option, largely because many of the properties they are interested in are single or two -family structures that they don’t wish to manage for several years. They are requesting to access lead funds in addition to using NSP rehab funds, and since they have the ability to purchase these homes quickly, they could then offer the home(s) for sale to qualified buyers; Jennifer is requesting that once this is done, that the new homeowner holds the lead debt according to homeowner terms, and not investor terms. Joe East asked if the potential homeowner is pre-established; Jennifer explained it would not be determined beforehand, but she said it will not be difficult to attract applicants. These applicants assuming the debt would need to qualify under normal program guidelines. Wayne suggested a set time limit be established between non-profit purchase/NSP rehab and transfer to homeowner. Jennifer thought nine months would be a reasonable time frame. Jennifer added that the NSP funds will only allow for 2 to 3 properties to be “flipped” in this manner anyway. Wayne asked what the contingency plan is if the houses are unable to be sold – Jennifer stated the property funding would remain under investor terms. Jim Troeger agreed, saying that the time period is not all that relevant in that the non-profit enters into the agreement as an owner-investor, they are obligated to those terms until or unless they find a qualified buyer, at which time the terms would change to owner-occupant. Wayne stated that this is just something that would need to be presented to the Rehab Review Committee as with any other potential project, and we only need to have Mike Driscoll draw up the necessary legal paperwork to reflect the changes discussed. Rodney Bowie suggested the Rehab Review Committee vote to go forward with this amendment to the NSP, allowing non-profit investors, upon project completion and transfer of property to individual homeowner, to change the terms of the lead funding loan from investor terms to owner-occupant terms. Sue Goldman seconded, Joe East, Jim Troeger, and Jim Roberts were all in favor. The vote passed unanimously. New Applications All projects listed as RLP/LP qualify for lead and/or property rehab funds, are current in property taxes, have met income requirements and are recommended for approval. Rodney Bowie made a motion seconded by Sue Goldman to approve the following applications for the maximum lead/rehab funding as follows: LP 0901 Owner-Occupied $13,000 (Lead) LP 0902 Investor-Owner $26,000 (Lead) RLP 0903 Owner-Occupied $40,000 (Rehab) $26,000 (Lead) LP 0904 Owner-Occupied $13,000 (Lead) Motion carried unanimously. Adjournment Motion made by Rodney Bowie to adjourn. Jim Roberts seconded the motion. The motion carried unanimously. The Rehab Review Committee meeting adjourned at 9:27 a.m.