08/26/08 Special Meeting - Laserfiche WebLink

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Community Developm~nt Director Miller noted that she had not distributed that chart to the whole group, but she could get that to everyone. Chairperson Olson stated that most builders and developers have their own mortgage company . that they work with and give people incentives if they go through that company. She stated that they offer things like no homeowners association fees for a year, but then the following year when it rolls in, people find they cannot afford it. She stated that she feels this is very misleading and the mortgage companies know what they are doing and she feels the City should do something about this situation. Commissioner Look stated that he agrees with this point that there are brokers that once the deal is closed, disappear, but if what they are doing is within the legal limits, he us unsure what the City could do to prevent this from happening. Chairperson Olson suggested that just getting the word out to other communities about the builders and developers that the City is having problems with would be a start. Commissioner Look stated that he would support an educational approach by infornling people that there are the people who seem to have predatory practices and here is.a list of questions that you should make sure to ask before proceeding. He stated that his fear is. that, similar to TIF districts, new businesses will go anywhere if they can cherry pick who will give them the best package and he wants to steer away from that. Chairperson Olson stated that she feels this situation is predatory for the City as well as the individuals and would like to share this information with other communities. Commissioner Strommen stated that she would like to see which foreclosures are builder owned. Community Development Director Miller stated that she can gather that information. She stated that many of the vacant homes are in homeowner's associations, so the people who still live there are starting to have problems. She stated that she thinks these associations will start coming in to ask that the City take over their maintenance issues. Commissioner Jeffrey stated that there was a recent association from MJB that recently asked the City to step in. He stated that the builder controls the homeowner's association and if they don't relinquish this control, the residents are basically held hostage. Chairperson Olson asked Ms. Snyder of GMHC to share a bit about what they can offer to the City. Ms. Snyder stated that she is the program director for GMHC which has been around for over 35 years. She stated that the program began in Minneapolis to create more. affordable housing, but has now branched out to work with about 17 communities in the metro area. She distributed copies of their 2006 annual report and brochures about the agency. She reviewed some of the programs they offer such as housing resource centers, and noted that there is a North Metro center located in Shoreview that serves Anoka County. She stated that they administer a broad Housing and Redevelopment Authority I July 22, 2008 , Page 5 of8 5