Loading...
041612completeagenda CITY OF RICHFIELD, MINNESOTA MONDAY, APRIL 16, 2012 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA Call to order Roll call 1. Approval of minutes of Regular HRA Meeting of March 19, 2012 2. Consideration of request for subordination of HRA deferred loan at 7005-16th Avenue Staff Report No. 15 Notes: 3. HRA discussion items Notes: 4. Executive Director report Notes: 5. Claims and payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. richfield: April 2012 Page 1 of 2 City of Richfield Calendar Calendars Net Navigate: 2011 Jan Feb Mar Apr May Jun Jul Aug Sop Oct Nov Dec 2013 April 2012 Monday Tuesday Wednesday Thursday Friday 26 I Mar 27 28 29 30 5:30p Human Services 6:OOp Special City SATURDAY,MAR.31 Planning Council Council Worksession 9:30 a.m.-10:30 a.m. 6:OOp Richfield 7:00p City Council Mayor's Hour-WLNC Bloomington Watershed Regular Meeting Management Organization @ Haeg Conference Room,City of Bloomington(meal at 5:30 p.m.) 6:15p Special Concurrent Richfield/Bloomington City Council Worksession @ Bloomington 7:OOp Planning Commission 2 3 4 5 6 6:30p Human Rights 7:OOp Joint Meeting with 7:OOp Arts Commission Commission Transportation ©7000 Nicollet Ave Commission and Community Services Commission- Bartholomew Room 9 10 11 12 1€3 7:OOp Planning 11:30a Tourism 7:OOp Friendship City Commission Study Promotion Board @ Commission Session 6601 Lyndale Ave,Suite 106 5:45p Special City Council/H RA/Plann ing Commission Worksession 7:OOp City Council Regular Meeting 16 17 1$ 19 20 6:OOp Advisory Board of 7:OOp Community 7:OOp Friendship City SATURDAY,APRIL 21 Health Services Commission @ Commission 9:30 AM-10:30 AM 7:OOp Regular Housing 7000 Nicollet Ave (rescheduled to April 12) MAYOR'S HOUR- and Redevelopment WLNC Authority Meeting 7:30p Special Concurrent City Council/HRA Meeting 8:OOp OR immediately following previous Special Meeting, whichever is later-- Special City Council/ HRA/Planning Commission Worksession 23 24 25 26 27 5:30p Human Services 5:45p Special SATURDAY,APRIL 28 Planning Council Concurrent City MAYOR'S HOUR 7:OOp Planning Council/Richfield School rescheduled to Sat., Commission Board Worksession April 21 7:OOp City Council Regular Meeting 30 1 I May 2 3 4. 11:30a Tourism 7:OOp Transportation 7:OOp Arts Commission Promotion Board @ Commission ©6335 Portland Ave 6601 Lyndale Ave,Suite 106 6:30p Human Rights Commission Display: Year Month Week Day Block List Condensed Abs Slide Calendars: Search http://www.my.calendars.net/richfield 4/12/2012 HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES gc: qiieed Richfield, Minnesota Regular Meeting March 19, 2012 CALL TO ORDER The meeting was called to order by Acting Chair Rubenstein at 7:00 p.m. OATH OF OFFICE TO HRA COMMISSIONER DAVID GEPNER City Clerk Gibbs administered the oath of office to HRA Commissioner David Gepner. ROLL CALL HRA Members Doris Rubenstein, Acting Chair; Debbie Goettel; and David Gepner. Present: HRA Members Sue Sandahl, Chair and Steven Quam. Absent: Staff Present: Steven L. Devich, Executive Director; John Stark, Community Development Director; Karen Barton, Community Development Manager; and Nancy Gibbs, City Clerk. Item #1 APPROVAL OF MINUTES OF (1)SPECIAL HRA WORKSESSION OF JANUARY 17, 2012; (2) REGULAR HRA MEETING OF JANUARY 17, 2012; (3) SPECIAL HRA/CITY COUNCIL/PLANNING COMMISSION WORKSESSION OF JANUARY 24, 2012; (4) SPECIAL HRA/CITY COUNCIL/PLANNING COMMISSION WORKSESSION OF FEBRUARY 14, 2012; AND (5) SPECIAL HRA/CITY COUNCIL/PLANNING COMMISSION WORKSESSION OF FEBRUARY 28, 2012 M/Goettel, S/Rubenstein to approve the minutes of(1) Special HRA Worksession of January 17, 2012; (2) Regular HRA Meeting of January 17, 2012; (3) Special HRA/Citv Council/Planning Commission Worksession of January 24, 2012; (4) Special HRA/City Council/Planning Commission Worksession of February 14, 2012; and (5) Special HRA/City Council/Planning Commission Worksession of February 28, 2012. Motion carried 3-0. HRA Meeting -2- March 19,2012 Item #2 HRA APPROVAL OF AGENDA M/Gepner, S/Goettel to approve the agenda. Motion carried 3-0. Item #3 CONSENT CALENDAR A. Consideration of approval of resolution authorizing use of Affordable Housing Initiative Fund loan for acquisition of 7401-18th Avenue by West Hennepin Affordable Housing Land Trust S.R. No. 8 HRA RESOLUTION NO. 1118 RESOLUTION AUTHORIZING THE USE OF AN AFFORDABLE HOUSING INCENTIVE FUND LOAN FOR THE PURCHASE OF 7401 18TH AVENUE This resolution appears as HRA Resolution No. 1118. B. Consideration of approval of revised guidelines for HRA funded Foreclosure Purchase Incentive Program S.R. No. 9 C. Consideration of approval of right-of-entry agreement with Hennepin County related to HRA- owned property at 211 West 76th Street (former Gleason Mortuary) S.R No. 10 M/Goettel, S/Gepner to approve the Consent Calendar. Motion carried 3-0. Item #4 CONSIDERATION OF REQUEST FOR TRANSFORMATION LOAN TO SARA AND MIKE WARNER FOR REMODELING OF NON-SUBSTANDARD HOME AT 7320 COLFAX AVENUE S.R. NO. 11 Community Development Director Stark presented Staff Report No. 11. Sara Warner, 6436 Oliver Avenue South, was available for questions. M/Goettel, S/Gepner to approve the request for transformation loan to Sara and Mike Warner for remodeling of non-substandard home at 7320 Colfax Avenue. Motion carried 3-0. Item #5 CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN HRA AND SCOTT AND CRYSTAL VANDER HEIDEN FOR REDEVELOPMENT OF 6507 BLOOMINGTON AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM S.R. NO. 12 Community Development Manager Barton presented Staff Report No. 12. HRA Meeting -3- March 19,2012 Scott Vander Heiden, 8716 Beard Road, Bloomington, was available for questions. M/Gepner, S/Goettel to approve contract for private development between HRA and Scott and Crystal Vander Heiden for redevelopment of 6507 Bloomington Avenue under Richfield Rediscovered Program. Motion carried 3-0. Item #6 CONSIDERATION OF RESOLUTION GRANTING ASSISTANCE IN AMOUNT OF $50,000 AND APPROVING FUNDING AGREEMENT WITH BILL WOLFSON FOR REDEVELOPMENT OF 6528 PENN AVENUE, ARC VALUE VILLAGE S.R. NO. 13 Community Development Manager Barton presented Staff Report No. 13. M/Goettel, S/Rubenstein to approve funding agreement with Bill Wolfson for redevelopment of 6528 Penn Avenue, Arc Value Village and that the following resolution be adopted and that it be made part of these minutes: HRA RESOLUTION NO. 1119 RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF A FUNDING AGREEMENT BETWEEN THE RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY AND BILL WOLFSON Motion carried 3-0. This resolution appears as HRA Resolution No. 1119. Item #7 CONSIDERATION OF RESOLUTION REQUESTING CITY COUNCIL CALL FOR PUBLIC HEARING ON THE PROPOSED MODIFICATION TO REDEVELOPMENT PLAN FOR RICHFIELD REDISCOVERED PROJECT AREA AND PROPOSED ESTABLISHMENT OF PILLSBURY COMMONS TAX INCREMENT FINANCING DISTRICT S.R. NO. 14 Acting Chair Rubenstein announced for the record that the Housing and Redevelopment Authority have all received a copy of an e-mail from the following person regarding the proposed Pillsbury Commons, which will be included in the record: • Rebecca Bowers, 6529 Knox Avenue. Received March 19, 2012. Community Development Director Stark presented Staff Report No. 14. Ron Clark, Ron Clark Construction and Design, was available for questions. Commissioner Goettel stated she has concerns with this project and the use of TIF with high density housing and would not be in favor of this project. Commissioner Gepner stated he would like to continue discussion and let the community be better informed. Acting Chair Rubenstein stated she has significant problems with this project. HRA Meeting -4- March 19,2012 Executive Director Devich reminded the HRA what is being considered tonight; the HRA is asking the City Council to call for a public hearing. Acting Chair Rubenstein stated she agreed with Commissioner Goettel on the TIF district concerns. Commissioner Gepner asked if the resolution fails tonight, does the project fail? Executive Director Devich stated he would need legal advice and asked the HRA if they would take a short recess until he could call legal counsel for advice. M/Goettel, S/Rubenstein to recess for advice of legal counsel. Motion carried 3-0. The HRA went into recess at 7:40 p.m. The HRA reconvened the open meeting at 7:49 p.m. Executive Director Devich stated that, after talking with legal counsel, the HRA does not stop the TIF process from going forward. The City Council could call for a public hearing on this item. If the item was then approved by the City Council it would still come back to the HRA for your approval. The TIF process would need approval by the City Council and HRA to pass. Kendra Lindall, representative from Landform, asked the HRA to grant the project its democratic due process and request the City Council to call a public hearing to review the application that was submitted and for the opportunity of public discussion. Commissioner Gepner stated that the HRA needs to give citizens an opportunity to receive more information and make an informed decision. Commissioner Goettel stated that we have gone through this many times and it has been at public meetings. Acting Chair Rubenstein agreed with Commissioner Goettel. M/Rubenstein, S/Goettel to approve resolution requesting City Council call for public hearing on the proposed modification to redevelopment plan for Richfield Rediscovered Project Area and proposed establishment of Pillsbury Commons Tax Increment Financing District. Motion failed 1-2. (Rubenstein & Goettel opposed) Item #8 HRA DISCUSSION ITEMS None. Item #9 EXECUTIVE DIRECTOR REPORT HRA Meeting -5- March 19,2012 Executive Director Devich reported that he was excited to see the Transformation Loan and Richfield Rediscovered residential programs on the agenda. He stated that Richfield was the first city to look at these programs. Executive Director Devich also reported that the city website has had some issues lately. He stated that LOGIS had a major failure which included our website. He stated that the website is working fine now and apologized to residents for any inconvenience. Item #10 CLAIMS AND PAYROLL M/Goettel, S/Gepner that the following claims and payrolls be approved: U.S BANK 02/21/2012 Section 8 Checks: 121527-121649 $ 156,151.09 HRA Checks: 31402-31424 $ 65,051.06 TOTAL $ 221,202.15 U.S BANK 03/19/2012 Section 8 Checks: 121650-121769 $ 152,298.31 HRA Checks: 31425-31445 $ 55,335.23 TOTAL $ 207,633.54 Motion carried 3-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 7:59 p.m. Date Approved: April 16, 2012 Doris Rubenstein Acting Chair Nancy Gibbs Steven L. Devich City Clerk Executive Director AGENDA ITEM#: 2 REPORT#: 15 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING APRIL 16, 2012 REPORT PREPARED BY: JULIE URBAN/MICHELLE LEWIS, HOUSING SPECIALIST NAME,TITLE REPORT PRESENTER: KAREN BARTON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: .�:+��� Offf REVIEWED BY EXECUTIVE DIRECTOR: rI ft ITEM FOR HRA CONSIDERATION: Consideration of a request for a subordination of a Housing and Redevelopment Authority Deferred Loan at 7005 16th Avenue. I. RECOMMENDED ACTION: By Motion: Approve or deny the request for a subordination of a Housing and Redevelopment Authority Deferred Loan at 7005 16th Avenue. II. BACKGROUND Synthia Stone of 7005 16th Avenue has requested a subordination of a $7,792.85 Deferred Loan received on November 3, 2010. At 111 percent, the combined loan- to-value ratio exceeds the Housing and Redevelopment Authority's (HRA) Subordination and Satisfaction Policy limit of 80 percent and is therefore being brought to the HRA for consideration. The 2012 Tax Assessed Value of Ms. Stone's property is $152,000, down 9.5% from $168,000 in 2011. This qualifies Ms. Stone for the federal Home Affordable Refinance Program (HARP). HARP is a streamlined refinance program that allows homeowners who currently have an FHA-insured mortgage and are impacted by decreased property values, the opportunity to refinance mortgages to secure better terms in order to help stabilize the housing markets in the United States. 04162012 7005 16th(Stone)subordination request appeal.doc The HRA's Deferred Loan is currently in second position behind the primary mortgage with a current balance of$143,854.02. Based on the value of$144,000, assigned by the HARP guidelines (a formal appraisal is not required by the program), the combined loan-to-value ratio is 111 percent. Ms. Stone would like to refinance the superior mortgage into a new mortgage of$151,500, which includes the total balance of the first mortgage, closing costs, and prepaid items. The amount of debt in front of the HRA's lien will increase by $7,646 (5%). The interest rate will be reduced from 6.375 percent to 4 percent, resulting in a savings of$300. per month. The refinancing Ms. Stone seeks reduces the interest rate and monthly payments. However, the combined loan-to-value ratio is above the HRA's Subordination and Satisfaction Policy limit of 80% (85% under administrative appeal guidelines). Although the superior debt to the HRA's lien is increasing, it is still within the 50% increase permitted under the Subordination and Satisfaction Policy guidelines. Ms. Stone's request meets all other requirements of the guidelines: property taxes are current, no equity is being removed, closing costs are 2.9 percent, payment terms are within financial means of Ms. Stone, and no other subordinations have been granted in the past five years. III. BASIS OF RECOMMENDATION A. POLICY According to the HRA Subordination and Satisfaction Policy: • The total debt secured by the property, including the HRA lien and all superior mortgages, shall not exceed 80 percent of the documented market value of the property. A staff-authorized administrative appeal of the Policy can be granted if the loan-to-value ratio does not exceed 85 percent or if the amount of superior debt does not increase. • The overall value of superior debt must not be increased by more than 50%. • Closing costs do not exceed three percent (currently at 2.9 percent). • Payment terms are within the financial means of the borrower. • Equity being removed must be no more than $5,000 or must be for qualified home improvements. • Property taxes must be current. • No more than one subordination has been granted to the loan within the past five years. B. CRITICAL ISSUES • The combined loan-to-value ratio is 111 percent. • The amount of debt in front of the HRA lien increases 5% from $143,854 to $151,500. The closing costs and escrow costs are being rolled into the principal mortgage. Ms. Stone is unable to pay cash for these costs. • The refinancing will lower the primary loan's interest rate and will reduce the amount of Ms. Stone's monthly payments. The refinance will improve Ms. Stone's ability to continue to make her mortgage payments. • The HARP program does not require an appraisal; however, the estimated value is $144,000. The 2012 estimated market value for tax purposes is $152,000. C. FINANCIAL • The amount of debt in front of the HRA lien is increased $7,646 or 5%. • The application fee has been received for the subordination request. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Approve the subordination request. • Approve the subordination request with financial counseling as a contingency of the approval. • Deny the subordination request. V. ATTACHMENTS • Letter from homeowner VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Synthia Stone 04/11/2012 16:57 FAX 6128665914 KINKOS RICHFIELD g001/o01 To:Synthla Stone (16126607546) 18:06 04/11/12 EST Pg 1-I a-- I To whom it may concern: This letter is to address the reason that I need HRA to subordinate so that I can complete a Refinance transaction. I am a single person with limited income. My hours at work have recently been reduced making it even harder to continue to make my monthly mortgage obligation in a timely manner. My current interest rate is a 6.375%. The new interest rate for my refinance is a 4%fixed rate. The difference between the 2 rates will save me roughly 300.00 dollars per month,thus making it much easier for me to continue to make my monthly payments on time. Between the closing cost and the set up for a new escrow account,there are several thousands of dollars that I simply cannot pay out of my pocket. I don't make a significant income and pretty much live month to month.So if I had to pay the costs out of my own funds, I simply wouldn't be able to do this transaction. Supreme lending has been helping me with this refinance for several weeks now. I am refinancing under the new Hope for Hume Owners program,also known as HARP 2.0. Under this loan,there is no appraisal required. Please take my request for subordination seriously.This new loan would be a significant change in my financial and living conditions. Thank you, Please feel free to contact my loan officer: Todd Mrazek Supreme Lending 763-576-9201 Synthia Stone 612-861-6082 7005 16`h Ave Richfield Ave MN 55423 "-� I •