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Ms. Thunstrom stated that the issue with comps /property values — this does not go out <br />nationally to appraisers. As far as staffing — that is her department — or basically her. <br />She added that CDBG funds have to be tracked forever; this is a 20 -year declaration. <br />Councilmember Wise stated that maybe for now she could manage to do that — but <br />wondered if she could continue to manage it in three to five years. <br />Councilmember Dehen asked what Ms. Thunstrom. is proposing — what are we trying to <br />accomplish. <br />Ms. Thunstrom stated she is here to inform Council of what she is doing in these <br />neighborhoods. She stated that if Council does not want these stabilization funds, they <br />need to let her know. <br />Councilmember Look stated that no one knows where the bottom of this is. The County <br />will step in on a bank owned house and say we will pay you this amount of money - now <br />the bank is contacting investors — and now it becomes a bidding war. That starts <br />motivating investors to buy rental property. <br />Ms. Thunstrom stated that they have banks coming to them — they do not want to be <br />sitting on these houses for 100 days — 240 days, etc. We are walking away from <br />marketable houses. They are looking at detached homes and they are not going into the <br />"high priced" neighborhoods. <br />Councilmember Elvig felt they are "hitting the nail on the head ". A lot of the houses you <br />are talking about are uninhabitable. The program to buy middle of the road stuff is what <br />works. <br />Councilmember Look stated that if it is not general knowledge about the comps and the <br />County is only going after distressed property, then he is in favor of this program. <br />Councilmember McGlone asked about the income qualifications. <br />Ms. Thunstrom stated that it would be middle income — meaning a family of four could <br />make $100,000. HUD just raised all income levels. <br />City Administrator Ulrich stated that if we could continue to get reports back as to what <br />is going on in Ramsey, then if we are not satisfied we could drop out of the program or <br />ask for modifications. <br />Councilmember Wise felt that he could not make a judgment today. We are talking about <br />a lot of money and a long term. <br />Councilmember Jeffrey stated that he agrees with Councilmember Look — if the market <br />values are not affected and if it is distressed properties only; however, he was concerned <br />about the 20 years as well. <br />City Council Work Session — May 5, 2009 <br />Page 7 of 14 <br />