12-03-07 Special
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Meeting of HRA
December 3, 2007
The meeting was called to order by Chair Sandahl at 6:17 p.m.
HRA Members
Present:
Sue Sandahl, Chair; Mart[n Kirsch; Joan Heimberger, and David Gepner.
HRA Members
Not Present:
Staff Present:
Doris Rubenstein.
Steven L. Devich, Executive Director; Bruce Palmborg, Community
Development Director; and Cheryl Krumholz, Recording Secretary.
M/Helmberger, S/Kirsch to approve the aqenda.
Motion carried 4-0.
/
Item #1
Community Development Director Palmborg presented Staff Report No. 49, including the two
subordination guidelines established by the HRA that are not met: the loan to value ratio and the
approval of two subordination requests in the past. He stated that it appears the owner is on the
verge of losing the property if this request is not granted.
Chair Sandahl explained that because of the significant number of foreclosures, the HRA
established a subordination policy to meet today's market to provide the ability to recover funds that
could be provided to someone else to benefit the broader spectrum of the community.
Community Development Director Palmborg stated an appraisal has yet to be conducted but
the lender and homeowner suspect a loan to value ratio of between 85-90%. If the loan to value ratio
is higher than 90%, the lender will not move forward with the refinancing.
Special Meeting Minutes
-2-
December 3, 2007
Chair Sandahl asked about the assessed market value.
Linda Wallace, homeowner, stated the approximate value is $191,000.
Community Development Director stated the property value in payable 2008 provided from
assessing is $234,000.
M/Kirsch, S/Sandahl to approve the subordination request for the HRA deferred loan at 6529
Humboldt Avenue, includinQ a no more than 90% loan to value ratio and the requisite documents be
provided to staff prior to execution of the subordination aQreement.
Motion carried 4-0.
~rtr&:n~
Recording Secretary