Rehabilitation Review Committee

MINUTES OF THE REHAB REVIEW COMMITTEE MEETING APRIL 14, 2010 8:45 AM Members Present: Chairman Rodney Bowie, Joe East, Jim Troeger, Jim Roberts, and Susan Goldman Others Present: Denise Blake, Wayne Sharkey, and Linda Lee Smith Chairman Rodney Bowie called the meeting to order at 8:48 AM. Motion was made by Jim Roberts and seconded by Susan Goldman to accept the minutes of the March 10, 2010 meeting. The motion carried unanimously. Motion was made by Susan Goldman, seconded by Rodney Bowie to suspend the rules to have Mr. Charles present his sewer situation to the committee. Motion carried unanimously. Denise Blake gave a brief overview on property located at 9 West Avenue. They were approved at the last meeting for the Lead Program because there were children under the age of 6 living there. Since there is a negative equity status, the homeowner was denied funding for the Property Rehab Program. A letter from the homeowner to the RRC members was handed out explaining the severe problem he is having with his septic system, where it can’t be located and it backs up frequently. The homeowner is asking for just enough funding to rectify the septic issues through the Property Rehab Program. Mr. Sharkey said after reviewing it, the CD staff is supporting the appeal for just the septic system issue because it is a potential health and safety item. There are 2 septic tanks, and one system has been discontinued and not viable. They’ve had several contractors out to look at it, and they also tried to snake it but the other tank can’t be found. They need to actually dig it out to find out what the status is. There is nothing on record and no permit was ever pulled. They are not eligible because of the negative equity. This would be an exception based on a potential health hazard. A letter from the Health Department supporting their concerns was also handed out. Rodney Bowie made a motion, seconded by Joe East to allocate $11,000 the remainder of funding for 9 West Avenue to hire a contractor, inspect and identify the problem and provide a cure. Furthermore to also get three price estimates to get written assessment and then look at those costs. Motion carried unanimously. The CD office will call NPU to check and see if new sewers are scheduled to be installed in the near future. Suspension of the Rules to talk privately to Mr. Charles. Old Business 1 Reverse Mortgages Wayne Sharkey handed out the Proposed Policy regarding Property Rehabilitation Program applicants with existing reverse mortgages which is stated below: In keeping with the programs standard minimum 0% equity requirement the following language is proposed to set the standard guidelines for the acceptance/denial of properties with pre-existing reverse mortgages. Applicants with existing reverse mortgages shall be eligible for Rehabilitation funding based on the following criteria: 1. The existing reverse mortgage, in addition to any other property liens may not exceed the total appraised property value. 2. The Rehabilitation lien may not exceed 3rd position. Susan Goldman made a motion, seconded by Joe East to approve the above language for reverse mortgages as presented by Wayne Sharkey. Motion carried unanimously. New Business Discuss Regulations for Homeowners Acting as their Own Contractors After some discussion Rodney Bowie asked that for the next meeting to have language written up with the regulations for homeowners acting as their own contractors. Wayne Sharkey will also talk to Corporation Counsel with what the legal ramifications are. New Applications Mr. Sharkey told the committee that there were quite a few new property applications to be approved for the Lead and Rehab Programs. They all meet the eligibility requirements, including eligibility funding for lead and rehab and paid taxes. Motion was made by Rodney Bowie and seconded by Jim Roberts to approve the list of new applications. Motion carried unanimously. Max. Rehab Max. Lead LP0918 Owner/Occupied 2 units $26,000 LP0919 Owner/Occupied 1 unit $13,000 RLP0920 Owner/Occupied 1 unit $30,000 $13,000 LP0921 Investor 1 unit $13,000 RLP0931 Owner/Occupied 1 unit $30,000 $13,000 Max. Rehab Max Lead RP0922 Investor 2 units $40,000 2 LP0923 Investor 3 units $39,000 RP0924 Owner/Occupied 1 unit $30,000 RLP0925 Owner/Occupied 2 units $40,000 $26,000 Max Lead Rehab Wait List RLP0933 Owner/Occupied 2 units $26,000 $40,000 RLP0932 Owner/Occupied 1 unit $13,000 $30,000 RLP0926 Owner/Occupied 1 $13,000 $30,000 RLP0927 Investor 4 units $52,000 $60,000 RLP0928 Owner/Occupied 1 $13,000 $30,000 RLP0929 Owner/Occupied 1 $13,000 $30,000 RLP0930 Owner/Occupied 2 $26,000 $40,000 RLP0934 Owner/Occupied 2 $26,000 $40,000 RLP0935 Owner/Occupied 2 $26,000 $40,000 Rehab application #09-22 has been approved for lead funding, but has negative equity and therefore does not meet the program requirements for rehab. Recommendation is for denial. Joe East made a motion, seconded by Jim Roberts to deny Application #09-22 for rehab because it has negative equity. The motion carried unanimously. Susan Goldman made a motion, seconded by Rodney Bowie to pay two final checks - RLP0815 $3,750.00; and RLP0812 $9,850. Motion carried unanimously. Rodney Bowie made a motion to adjourn and Jim Roberts seconded the motion. The motion carried unanimously. The meeting adjourned at 10:00 AM. 3