Rehabilitation Board of Appeals

City of Royal Oak Rehabilitation Board of Appeals Minutes of the regular meeting held on September 23, 2014 A regular meeting of the Rehabilitation Board of Appeals was held at 7:00 p.m. on Tuesday, September 23, 2014 in Room 309 of City Hall. Present: Absent: Commissioner Kyle DuBuc Chairperson James Johnson Vice Chairperson Pete Mancour John D’Agnillo Ilene Lanfear Marshall Thompson Carl Stone Staff also present: Debbie Murray, Rehabilitation Finance Officer Joseph Murphy, Planner ********** Call To Order Vice Chairperson Mancour called the meeting to order at 7:00 p.m. ********** Public Comment Vice Chairperson Mancour opened the Public Comment, hearing none, the Public Hearing was closed. ********** Minutes August 27, 2014 meeting Moved by Mr. Stone Supported by Mr. Thompson To approve the minutes of August 27, 2014 as presented. Motion Approved Unanimously ********* Rehabilitation Appeals Case No. L/G-2588/13 Case No. L/G-2588/13 Ms. Murray stated that the applicants are asking for a subordination to refinance their primary loan to a lower rate, to consolidate debt, and to obtain a greater amount in a home equity line of credit. The city’s position for a lien against the property would remain unchanged. The property had a loan-to-value (LTV) ratio of 95% at the time of their most recent loan through the housing rehabilitation program. The resulting LTV ratio would be 90%. The applicant is seeking to establish a line-of-credit with the proposed refinancing. The proposed refinancing would increase the applicant’s housing expenses from 19%, at Rehabilitation Board of Appeals – September 23, 2014 mtg the time of the most recent loan through the housing rehabilitation program, to 25%. The program’s guidelines do not permit administrative approval of the subordination request which results in the applicant establishing a line-of-credit or “taking cash out”. The applicants were present to discuss their request with Board members. At the meeting, the applicants stated that they want to pay off the city-issued loan however their application did not indicate this scenario. Moved by Mr. Stone Supported by Mrs. Lanfear To approve the subordination request. Motion Approved Unanimously ********* Public hearing on community needs toward the development of the Consolidated Plan (5 Year Plan) and Program Year 2015-2016 Annual Action Plan Mr. Murphy stated that HUD regulations require public hearings to obtain input regarding the community needs during the development of the Consolidate Plan (5 Year Plan) and resulting yearly Annual Action Plan. The city hold at least two (2) public hearings per year to obtain citizen’s views and to respond to proposals and questions, to be conducted at a minimum of two (2) different stages of the program year. Together, the hearings must address anticipated housing and community development needs and the development of proposed activities to address these needs. This public hearing shall fulfill the requirement of obtaining citizen’s views of housing and community development needs in the development of the Consolidated Plan (5 Year Plan) and resulting PY 2015-2016 Annual Action Plan (1st Year Plan). This is the needs assessment stage of the process. Vice Chairperson Mancour opened the Public Comment, hearing none, the Public Hearing was closed. No further action was necessary. ********** Program Year 2015-2016 tentative schedule Mr. Murphy outlined the estimated timeframe to complete the PY 15-16 Annual Action Plan, related Consolidated Plan, completion of last program year (PY 13/14), and completion of the current program year (PY 14/15). No action was necessary. ********** 2 of 4 Rehabilitation Board of Appeals – September 23, 2014 mtg Approval to release application for assistance form – Program Year 2015-2016 Mr. Murphy provided the Board with the application for financial assistance for next program year. He further provided the Board with a list of community, civic, and governmental agencies that would receive direct notice of the availability of the application. The Board will begin its review of the submitted applications after the application deadline (December 30, 2014). No action was necessary. ********** Meeting schedule for calendar year 2015 Mr. Murphy reminded the Board of the City Commission’s established Policy on Scheduling Meetings Relevant to Holidays. The Board was provided with a tentative meeting schedule for calendar year 2015 and a list of religious holidays as identified by the Interfaith Council. Mr. Murphy reminded the Board that the City’s policy requires that “All departments must make every effort to schedule meetings on days or evenings that will not interfere with major religious holidays”. The Board did not wish to adjust its tentative meeting schedule, as it did not identify any conflicts with “major religious holidays.” Moved by Mr. Thompson Supported by Mr. Stone That the Rehabilitation Board of Appeals, after reviewing the materials presented and weighing its options and with all due respect to the various religious affiliations, hereby reaffirms its calendar year 2015 meeting schedule as presented. 2015 Meeting Schedule Rehabilitation Board of Appeals Regularly Schedule Meetings Held Fourth Tuesday Of Each Month At 7:00 p.m. in City Hall January 27 2015 February 24 2015 March 25 2015 April 28 2015 May 26 2015 June 23 2015 July 28 2015 August 25 2015 September 22 2015 October 27 2015 November 24 2015 December 22 2015 Motion Adopted Unanimously ********** 3 of 4 Rehabilitation Board of Appeals – September 23, 2014 mtg Other Business The Board and staff discussed the program’s current threshold ($50,000) of cash convertible liquid assets for applicants to qualify for a deferred home rehabilitation loan. Staff provided a summary of all applicants for the past two and one half years. Staff reminded the Board that all applicants must qualify based on a yearly income calculation. While such retirement savings are designed to allow applicants to spend only the income, such as interest and dividends, that their portfolio generates, often times retires must draw from the “principal” set aside. The Board agreed that the program should not be designed to penalize applicants who have accumulated modest savings in an effort to establish income-generating investments. The Board unanimously agreed that the threshold was too low. Moved by Mr. Stone Supported by Mr. Thompson To recommend that the program’s guidelines and policies be altered to permit applicants to retain no greater than $200,000 of liquid assets to qualify for a deferred home rehabilitation loan. Motion Approved Unanimously Adjournment Moved by Mr. Mancour Supported by Mrs. Lanfear Motion Adopted Unanimously The meeting was adjourned at 7:57 p.m. The next meeting regularly scheduled meeting is October 28, 2014 4 of 4