12/01/08 Special Meeting - Laserfiche WebLink

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Chair Olson stated that there are loans that are available where you can escrow money to do those fixes after closing, up to $30,000. Chair Olson stated that the City could choose to escrow the money also, but she didn't know how this would work. Commissioner Elvig stated that he likes the idea that there are rehab dollars as a component of the program. He stated that he likes the idea of having available dollars to be escrowed, but he thinks it is important to make this bullet proof so the "wolves" don't come in and use the funds. He stated that he knows Anoka had a condition that a property had to be owner occupied for two years to be eligible for rehab dollars. He stated that there is also the question of keeping current information and it will be a moving target, so if something is started, the City needs to keep good records and keep an eye on the situation. He suggested an amount of 5% to help funding and that the whole idea is to try to get more buyers. Commissioner Gamec stated that it seems like the main things are home buyers assistance and rehab. He stated that it is very difficult for first time home buyers to get a loan now because they have to have such large down payments. Chair Olson stated that when she mentioned investors, she was not interested in funding investors who will rent properties, but she has seen a lot of properties that are in such poor condition that home buyers are just not equipped to renovate and investors, who do this all the time, don't think anything of it. She stated that they can invest this money and turn around and sell it to someone. Commissioner Elvig stated that he is more reluctant to supply funds to investors who will just turn a dollar. He stated that some people need the assistance and that this may get the City on a slippery slope until it learns more about how this will operate. He stated that however this is structured, the City will have to give them an opportunity to apply for a long period of time. He stated that a lot of these sales are very long processes, for example, up to 8 months. Commissioner Gamec asked if the City would need someone to manage this, otherwise that is a lot for staff to handle. HRA Executive Director Frolik stated that the City should start with an RFP for the services of a program administrator. She noted that answers to the questions she included on page 31 would help her draft this RFP. Chair Olson stated that she has dealt with investors, and the properties that are in rough condition are tough to sell to people, which is why she thinks investors are an important part of the mix. Commissioner Elvig stated that this was the same situation with Anoka, and the rehab program enabled people to move in and live and rehab the house. He stated that he had two of his workers that took advantage of that program and thought it was fantastic. Housing and Redevelopment Authority / December 1, 2008 Page 4 of9