07-16-07 Regular
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HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
July 16, 2007
CALL TO ORDER I
The meeting was called to order by Chair Sandahl at 7:05 p.m.
ROLL CALL
HRA Members
Present:
Sue Sandahl; Joan Heimberger; David Gepner; and Donna Drummond
(arrived at7:10 p.m.).
HRA Members
Not Present:
Martin Kirsch.
Staff Present:
Steve Devich, Executive Director; Bruce Palmborg, Community
Development Director; Nancy Gibbs, City Clerk; and John Dean, HRA
Attorney.
Item #1 APPROVAL OF MINUTES
M/Helmberger, S/Gepner to approve the minutes of (1) ReQular HRA MeetinQ of June 18,
2007 and (2) Special HRA MeetinQ of June 25.2007.
Motion carried 3-0.
Item #2 HRA APPROVAL OF AGENDA
M/Gepner, S/Helmberger to approve the aQenda.
Motion carried 3-0.
HRA Meeting Minutes
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July 16, 2007
litem #3 I CONSENT CALENDAR
,
Community Development Director Palmborg explained in detail the need for demolition of
these two properties.
Chair Sandahl asked HRA Attorney Dean if HRA needs to amend the agenda to talk about
Memorandum #23.
HRA Attorney Dean said this would be the time to amend the agenda before the meeting
goes any further.
M/Gepner, S/Drummond to amend the aQenda bv addinQ Memorandum #23 as Item 5A.
Motion carried 4-0.
A. Approved Livable Communities Team/Richfield Rental Property Program contract with
Julianne Schwietz from August 1 through December 31,2007 S.R. No. 27
B. Approved cooperative agreement for funding and demolition of 7214 Cedar Avenue and
1710 78th Street East with City of Richfield S.R. No. 28
M/Helmberger, S/Drummond to approve the Consent Calendar.
Motion carried 4-0.
Item #4
CONSIDERATION OF PROPOSED SETTLEMENT OF DEFERRED $14,000
LOAN WITHIN RANGE OF $1,700 TO $2,500 AT 901 RAE DRIVE S.R. NO. 29
Community Development Director Palmborg presented Staff Report No. 29.
Commissioner Drummond asked for clarification of this settlement.
Community Development Director Palmborg explained, this house is near foreclosure. No
Sheriff sale has taken place.
Executive Director Devich explained by not subordinating this loan we most likely would not
receive any money.
Chair Sandahl commented on the four subordination's of this loan. She also stated the
HRA needs to consider some policy changes.
M/Sandahl, S/Drummond to approve a proposed settlement of a deferred $14,000 loan
within the ranQe of $1.700 to $2,500 at 901 Rae Drive.
Motion carried 4-0.
HRA Meeting Minutes
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July 16, 2007
Item #5
CONSIDERATION OF STAFF DIRECTION FOR REDRAFTING
SUBORDINATION AND FORECLOSURE POLICIES S.R. NO. 30
Community Development Director Palmborg asked for direction from HRA and guidance.
from legal council on redrafting a foreclosure policy.
HRA Attorney Dean explained what subordinating loans entails.
Chair Sandahl stated she supports subordinating loans for homeowners to receive lower
interest rates.
Direction from HRA to staff was:
. 1 st subordination under 80% loan to value ratio, staff handles
. 2nd subordination HRA action required
. no subordination of reverse mortgages
. staff can subordinate with 80% ratio if funds are reinvested in property - debt service ok
. 80% ratio is limit
. increase fee for processing
Item #5A
REVIEW OF SUBORDINATION REQUEST HRAMEMORANDUM NO. 23
M/Sandahl, S/Drummond to approve the subordination once we confirm the loan is for a
refinance and no equity take.
Motion carried 4-0.
Item #6
EXECUTIVE DIRECTOR REPORT
None.
litem #7
CLAIMS AND PAYROLL
M/Gepner, S/Drummond that the followinQ claims and pavroll be approved. .
U.S. Bank
Section 8 Checks: 112122 - 112274
HRA Checks: 29932 - 29957
$ 174,817.36
$ 260,625.29
$ 435,442.65
TOTAL
Motion carried 4-0.
HRA Meeting Minutes
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July 16, 2007
I ADJOURNMENT
The meeting was adjourned by unanimous consent at 8: 15 p.m.
Date Approved: August 20, 2007
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City Clerk