Rehabilitation Board of Appeals

CITY OF ROYAL OAK REHABILITATION BOARD OF APPEALS MINUTES OF REGULAR MEETING HELD ON November 26, 2013 A regular meeting of the Rehabilitation Board of Appeals was held at 7:00 p.m. on Tuesday, November 26, 2013 in Room 309 of City Hall. PRESENT: ABSENT: John D’Agnillo Commissioner Kyle DuBuc Chairperson James Johnson Vice Chairperson Pete Mancour Carl Stone (arrived at 7:09) Marshall Thompson Bill Willard STAFF ALSO PRESENT: Debbie Murray, Rehabilitation Finance Officer ********** Chairperson Johnson called the meeting to order at 7:04 p.m. ********** PUBLIC COMMENT Chairperson Johnson opened the Public Comment, hearing none, the Public Hearing was closed. ********** MINUTES of October 22, 2013 MEETING MOVED by Mr. Willard SUPPORTED by Mr. Thompson To approve the minutes of October 22, 2013 as presented. APPROVED UNANIMOUSLY (5-0) ********* REHABILITATION APPEALS Case G-2584/13. Ms. Murray stated that the applicants were a married couple who lived at 518 Woodlawn and were denied a grant and loan by the Board of Review based upon the loan to value, the high housing expense and the low credit score. The homeowners are requesting a grant of $19,000 based on a bid from Mansfield Construction. Mr. Willard asked why the applicant’s credit score was so low, Ms. Murray stated that their credit report stated serious delinquencies, number of delinquencies, time since delinquencies was too recent and proportion of balances to credit limits too high on revolving accounts. Applicant stated that he moved from California with a promise of a job. When he got here the economy changed and the job was not available, they had a time-share that was underwater and they stopped paying on it. Mr. Willard asked if they were income qualified, Ms. Murray replied yes. Mr. Thompson asked for a copy of the Schedule C, Ms. Murray supplied the form. The applicant had given the Board an updated profit and loss schedule. Mr. D’Agnillo asked what work was being done to the property. Applicant stated that they were re-grading around the garage to stop the water from coming in. Ms. Murray added that they were siding the garage, replacing a window and entry door in the garage, gutters and concrete. MOVED by Mr. D’Agnillo SUPPORTED by Mr. Willard To APPROVE the grant for $19,000 as presented. APPROVED UNANIMOUSLY (6-0) ******** Case DL-2478/09. Ms. Murray stated that the applicant had been approved for a deferred loan in 2010 with the first payment deferred until 2016. The applicant is trying to refinance the first and second mortgage, the refinancing is conditional upon her loan with the City being deferred until she sells the house or is deceased. Mr. Thompson asked the applicant about the second mortgage, the applicant replied that she had taken out loan for repairs to her late sons’ house. Mr. Willard asked if the applicant’s income would go up, she replied that she has a pension from her deceased husband and Social Security and she cleans houses for extra money. She did not see it going up. MOVED by Mr. Thompson To defer the loan until 2016 MOTION WITHDRAWN MOVED by Mr. Stone SUPPORTED by Mr. Willard To defer the loan until sale of house or death of applicant. APPROVED UNANIMOUSLY (6-0) ******** Case L-2250/04. Mr. D’Agnillo recused himself because he knew the applicant. Ms. Murray stated that applicant is requesting that his regular loan be changed into a deferred loan as he is unable to pay at this time. Ms. Murray further stated that the applicant has not paid on the loan since 2007 and his income is above the maximum income limit for a deferred loan. MOVED by Mr. Thompson To defer the loan for one year MOTION WITHDRAWN MOVED by Mr. Willard SUPPORTED by Mr. Stone To remove existing late fees if payments are made on time for one year beginning January 1, 2014. MOTION APPROVED (5-0) Mr. D’Agnillo recused himself ******** 2 Case 2424/07. Ms Murray stated that the applicant is asking for a subordination so that she may lower her interest rate and payment with a streamline refinance with her current mortgage company. The case is before the Board as staff may not sign off on the subordination because the applicant is over on the debt to value (98%, requirement 80%), and housing expense (59%, requirement 50%). At the time of original loan approval, 2008, the applicant’s debt to value was 88.5% based on the outstanding mortgage debt of $134,000 and the SEV x 2 of $175,000. MOVED by Mr. Stone SUPPORTED by Mr. D’Agnillo To approve the subordination request. APPROVED UNANIMOUSLY (6-0) ******** OTHER BUSINESS None. ********** ADJOURNMENT MOVED by Mr. D’Agnillo SUPPORTED by Mr. Willard TO ADJOURN the meeting. APPROVED UNANIMOUSLY (6-0) The meeting was adjourned at 8:00 p.m. The next meeting regularly scheduled meeting is December 17, 2013 3