Rehabilitation Review Committee

MINUTES OF THE REHABILITATION REVIEW COMMITTEE MEETING August 13 , 2014 9:15 AM Members Present: Rodney Bowie, Jim Troeger, Joe East, and Gary Evans Absent: Jim Roberts and Terell Wilson Others Present: Wayne Sharkey, Jacquie Barbarossa, Recording Secretary and Summer Interns -Tanner Slade and Miranda Murray 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 the minutes. Joe East made a motion to approve the May 14, 2014 & July 9, 2014 minutes – unanimous. Old Business – Gary Evans stated the 140% LTV policy for property rehabilitation and loan subordinations needed to be discussed. He explained that based on our current subordination policy and property value declines, customers may not qualify at an LTV of 115%. Customers may try to refinance their current 1st mortgage or modify and the lender will not grant the loan unless the City subordinates. The goal is to keep the owners in their properties and avoid future foreclosure. There was a brief discussion regarding the revised terms. Mr. Evans handed out the “Temporary Loan Subordination Policy” in addition to the current policy stating the committee would revisit the policy in 6 months. The following was stated: 1. No cash-out to borrower, 2. Refinance must benefit the borrower (lower payment and/interest rate) and 3. Modification Agreement and/or new loan terms and LTV will be reviewed by Intake/Outreach Specialist and Director before submitting to Corporation Counsel for approval. The LTV ratio requirement will temporarily be suspended for subordinations to allow for subordination when the terms are met. Rodney Bowie agreed and asked for a motion to approve the temporary policy with Mr. Evans statements. Motion made by Jim Troeger, second by Joe East – unanimous. Mr. Evans stated that the current property rehabilitation value of 140% seemed to be working to still allow property owners to participate in the program and suggested extending it for another 6 months. Jim Troeger made a motion to extend the policy for another 6 months, Rodney Bowie seconded- unanimous. New Business – Application Approvals/Denials/De-obligation of Funds Mr. Sharkey stated there were 3 applications for approval and all the required information was received and verified and recommended approval. Joe East made a motion to approve the applications as presented, Jim Troeger seconded the motion - applications APPROVED - unanimous. Wayne Sharkey stated that the applicant for de-obligation was per the owner request. Joe East made a motion to de-obligate the funding, second by Jim Troeger - application de- obligated , unanimous. The applications were as follows: Applications Project Application Number of Lead Rehab type units Award Award LP1247/RP 1340 Owner 1 $16,000.00 $15,000.00 LP1248/RP1341 Owner 1 $16,000.00 $15,000.00 LP1249/RP1342 Owner 1 $16,000.00 $15,000.00 DE-obligate LP1239/RP1330 Owner 1 $16,000 $15,000 Appeals/ Requests - None Final Payments - None Open Discussion – There was a brief discussion as to what happens when a property owner doesn’t have enough funds to complete the project. Wayne stated that we won’t be general contractor for a homeowner but would require a work plan and/or commitment from a bank to protect our investment in the property so the project can be completed. Adjournment Jim Troeger made a motion to adjourn, second by Rodney Bowie - unanimous . Meeting adjourned at 10:00 AM. Respectfully submitted, Jacquie Barbarossa Recording Secretary