Rehabilitation Review Committee

MINUTES OF THE REHABILITATION REVIEW COMMITTEE MEETING February 12 , 2014 9:15 AM Members Present: Rodney Bowie, Jim Troeger, Jim Roberts, Joe East, & Gary Evans Absent: Terrell Wilson Others Present: Wayne Sharkey and Jacquie Barbarossa, Recording Secretary Chairman Rodney Bowie called the Rehab Review Committee meeting to order at 9:25 AM. A quorum was determined. Rodney Bowie asked for approval of December 11, 2013 Meeting Minutes. Motion was made by Joe East and seconded by Jim Roberts to accept the minutes – unanimous . Old Business – Joe East questioned the results of the email vote due to lack of quorum in January. Jacquie stated that she had received four response votes (Bowie, Troeger, Roberts & East) for approval on the three applications not including Gary Evans. New Business – Gary Evans stated that due to a drop in values on the assessor’s data base which we use to calculate LTV’s at time of application, our current program LTV needs to be changed. He stated we have been using 100% LTV and had reviewed the current drop in appraisals/assessments with the City’s Assessor. Gary stated that per the assessor, the average drop was 36%. He recommended a policy change increasing the LTV to 140% temporarily to maintain the level of applicants that could qualify for the program. Ms. Barbarossa had reviewed the RRC approvals since October 1, 2013 and calculated the average drop in value stating it was 37%. Joe East questioned if properties were selling at the appraisal amounts on the current data base and stated there could be an upturn in the market at any time. He also stated that the cost of improvements had not changed in relation to the value drop. Gary stated that program improvements increase the value of the property an average of 16%. He also stated that if an applicant has a current appraisal we would use that value versus the database. He stated there would be more applicants with negative equity if we use the current data base amounts which could cripple the program. If we use a revised increased LTV they could qualify for the program. He added that we were trying to reach the people that qualified before the property value drop which was no fault to them. Joe East questioned if there were any federal guidelines for the LTV’s and Gary stated there were not. Rodney Bowie made a motion to increase the LTV to 140% at time of application which will be reviewed in 6 months and adjusted if needed, second by Jim Roberts. Mr. Troeger questioned the credit worthiness of applicants and ability to pay back the debt due to the proposed change. Gary stated we don’t use credit reports now but do verify that an applicant is current on the mortgages and taxes. Rodney Bowie stated that the program used to be a “grant program” with no payback. Wayne Sharkey reiterated that we are still trying to capture the same base clientele that we have been serving prior to the assessment drop. Mr. Troeger stated he would support the change – motion carried - Rodney Bowie, Jim Troeger, Jim Roberts, & Joe East, in favor - Gary Evans – abstained. Application Approvals/Denials/De-obligation of Funds Wayne Sharkey provided members present with 3 Property Rehabilitation/Lead Based Paint Hazard Control Program applications recommended for approval and stated that the applicants met eligibility requirements and taxes were current. The applications were as follows: Project Application Number of Lead Rehab type units Award Award LP1236/RP1328 Owner 2 $26,000.00 $20,000.00 LP1237 Investor 5 $65,000.00 LP1239/RP1330 Owner 1 $16,000.00 $15,000.00 Joe East made a motion to approve the applications, second by Rodney – Gary Evans abstained - all applications APPROVED . Appeals/ Requests - None Final Payments - None Open Discussion - None Adjournment Rodney Bowie made a motion to adjourn, second by Gary Evans - unanimous . Meeting adjourned at 10:05 AM. Respectfully submitted, Jacquie Barbarossa Recording Secretary