07-15-13 Regular HRA HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
cCOzed Richfield, Minnesota
Regular Meeting
July 15, 2013
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:01 p.m.
ROLL CALL
HRA Members Sue Sandahl, Chair; Doris Rubenstein; and David Gepner
Present:
HRA Members Steven J. Quam and Debbie Goettel
Absent:
Staff Present: Karen Barton, Acting Executive Director/Acting Community Development
Director and Theresa Schyma, Deputy City Clerk.
Item #1 APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF JUNE 17, 2013
M/Rubenstein, S/Gepner to approve the minutes of(1) Regular HRA Meeting of June 17,
2013.
Motion carried 3-0.
Item #2 HRA APPROVAL OF AGENDA
M/Gepner, S/Rubenstein to approve the agenda.
Motion carried 3-0.
Item #3 CONSIDERATION OF A REQUEST BY THE OWNER OF 7600 LYNDALE
AVENUE, UNIT 408 TO FORGIVE A HOUSING AND REDEVELOPMENT
AUTHORITY COMMUNITY REVITALIZATION FUND PROGRAM MORTGAGE IN
THE AMOUNT OF $10,080 S.R. NO. 38
Acting Executive Director/Acting Community Development Director Barton presented Staff
Report No. 38.
HRA Meeting -2- July 15,2013
Jill Sklader, homeowner, was available for questions.
Chair Sandahl inquired as to how long the home has been on the market.
Ms. Sklader responded that she did not list the home but rather tried to find a private buyer.
Commissioner Gepner questioned if the lender was approached to share in the loss.
Ms. Sklader responded that she did not approach the lender.
Commissioner Gepner stated that there are certain guidelines that were not met and that is
why staff decided to deny the request.
Commissioner Rubenstein stated she was reluctant to forgive the entire loan but questioned
if there was some room to negotiate by either reducing the amount to give credit for the time that
the property was owned by Ms. Sklader or to have the amount paid in full with a promissory note.
Chair Sandahl asked about the current policy for short sale properties.
Acting Executive Director/Acting Community Development Director Barton responded that in
traditional short sales there is room for negotiation. She continued that this is not a short sale
because the lender is not sharing the loss. The entire loss would be with the HRA.
Commissioner Gepner asked the homeowner how long since she has lived at the property.
Ms. Sklader responded four years.
Commissioner Gepner stated that the loan should have been paid back at that time since
the Community Revitalization Fund Program is for those who are going to live at the property not
rent it out.
Chair Sandahl inquired as to if the rent covered her monthly costs.
Ms. Sklader stated that it covered the mortgage but not association fees and taxes. She
stated she was losing approximately $200 per month.
Chair Sandahl stated that part of the reluctance to forgive this loan is that it goes back into a
fund for others to use. She asked the homeowner if they would be willing to sign a promissory note
to pay back the full amount of the loan.
Ms. Sklader was hoping the HRA would help with this loss.
Commissioner Gepner stated that he would like to stick to the guidelines that are in place.
Chair Sandahl asked the homeowner if she was selling to a friend or relative.
Ms. Sklader responded that she was selling to a relative.
Commissioner Rubenstein stated that she felt the best option was to have the homeowner
sign a promissory note for the full amount.
Acting Executive Director/Acting Community Development Director Barton stated her
concern that the HRA would lose security on the loan.
Commissioner Gepner stated his disappointment that the lender wasn't approached to share
in the loss.
HRA Meeting -3- July 15,2013
M/Rubenstein, S/Gepner to deny a request by the owner of 7600 Lyndale Avenue, Unit 408
to forgive a Housing and Redevelopment Authority Community Revitalization Fund Program
mortgage in the amount of$10,080.
Motion failed 1-2. (Sandahl, Rubenstein opposed)
M/Sandahl, S/Rubenstein to approve a request by the owner of 7600 Lyndale Avenue, Unit
408 to forgive half of the amount of a Housing and Redevelopment Authority Community
Revitalization Fund Program mortgage in the amount of$5,040.
Motion carried 2-1. (Gepner opposed)
Item #4 HRA DISCUSSION ITEMS
Acting Executive Director/Acting Community Development Director Barton announced the
August 12 annual Planning Commission bike tour on August 12. The HRA and City Council are
invited to attend as well.
Item #5 EXECUTIVE DIRECTOR REPORT
Acting Executive Director/Acting Community Development Director Barton provided an
update on Lyndale Gardens Center.
Item #6 CLAIMS AND PAYROLL
M/Gepner, S/Rubenstein that the following claims and payrolls be approved:
U.S. BANK 07/15/2013
Section 8 Checks: 123608 - 123788 $ 156,253.44
HRA Checks: 31787 - 31806 $ 47,020.26
TOTAL $ 203,273.70
Motion carried 3-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:21 p.m.
Date Approved: August 19, 2013
Suz-rt M. San•,'I
h`;�.
T esa Schyma K:ren Ba :•
D-•uty City Clerk Acting Executiv Director/
Acting Community 6- •- ••ment Director