070114SpecialComplete Agenda CITY OF RICHFIELD, MINNESOTA
TUESDAY, JULY 1, 2014
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
8:15 A.M.
AGENDA
Call to order
1. Consideration ofi a request to forgive an HRA Deferred Loan at 6641 Clinton Avenue
Staff Report No. 27
Notes:
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.
AGENDA ITEM# 1
REPORT# 2]
STAFF REPORT �
1► � �'' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 1, 2014
REPORT PREPARED BY: JULIE URBAN, HOUSING SPECIALIST
NAME,TITLE
REPORT PRESENTER: STEVEN L. DEVICH,HRA EXECUTIVE
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NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: �
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REVIEWED BY EXECUTNE DIRECTOR: �
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ITEM FOR HRA CONSIDERATION:
Consideration of forgiveness of a Housing and Redevelopment Authority Deferred Loan at
6641 Clinton Avenue.
I. RECOMMENDED ACTION:
By Motion: Approve or deny a request to forgive a Housing and
Redevelopment Authority Deferred Loan at 6641 Clinton Avenue and
authorize staff to re are a release of mort a e.
II. EXECUTIVE SUMMARY
In 1985, Linda Heeney, owner of 6641 Clinton Avenue (Homeowner), received a
Deferred Loan for $8,238 to make improvements to her home. The loan carries a
30-year term with no interests and no payments, and is due to be forgiven next year
(October 8, 2015).
Due to severe medical issues, the Homeowner has become disabled and is no
longer able to live in her home and has entered into a purchase agreement to sell
her home. Because she is no longer able to live in her home, and because the
Deferred Loan is due to be forgiven next year, the Homeowner is asking the HRA to
forgive the loan.
06012014 Loan Forgiveness Request 6641 Clinton.docx
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• The loan was used to provide a new roof and gutters, siding, and a
new furnace.
• The loan is due to be forgiven on October 8, 2015.
B. PoLICY
• The Deferred Loan Program is funded with federal Community
Development Block Grant (CDBG) funds. There is no federal
requirement that the money be repaid. Program guidelines give the
HRA the authority to make grants instead of loans.
• It is HRA policy to issue loans as 30-year, deferred loans as a way to
recycle funds when a loan recipient sells his or her home.
• The entire loan amount is normally due and payable if the property is
sold within the 30-year period, regardless of the number of years
remaining on the loan.
C. CxITICAL Trn�rNG IssuEs
• The Homeowner's closing is scheduled for July 2, 2014.
D. FINANCIAL
• Any repaid funds would be returned to the Deferred Loan Program.
• The Deferred Loan Program is funded with federal Community
Development Block Grant (CDBG) funds.
E. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S�
• Propose a settlement of the loan.
V. ATTACHMENTS
• Letter from Mary Claire Jenson, Burnet Title, on behalf of the Homeowner.
VI. PRINCII'AL PARTIES EXPECTED AT MEETING
• NA
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June 2fi�h,2Q14
Re: Linda J. He�ney . .
� 6641 Clinton Ayenue South
To Whom it rnay concern:
My name (s Mary Claire Jenson with Burnet Title. I am writing to you on behalf l.inda J. Heeney and her
HRA Loan dated 10/8/1985. Ms. Heeney is selling her home due to a medicaf condition.She is currently
living at the Courage Center in Golden Valley during her rehab. Ms Heeney will not be able to go back to
her home after her rehabilitation. If it wasn't for her medical condition she would continued to live in
her home for the additional 15 months necessary for the loan to mature and be forgiven. Ms. Heeney is
asking for HRA/The City of Richfield to forgive this loan before its expiration date of 10/8/2015. Ms..
Heeney is unable to attend the HRA meeting due to her current medical condition. I Icnow that she
would appreciate the consideration of her request. The home is currently scheduled to close to the new
buyer in eariy July of 2014
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Sincerely
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�la y Claire Jenson .