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Home My WebLink About06/27/2006HOUSING AUTHORITY MEETING June 27, 2006 CITY COUNCIL CHAMBERS 5:00 P.M. A. CaR Meeting to Order B. Roll Call C. Approval of the Minutes: May 24 & June 12, 2006 D. Officers Reports E. Public Forum F. Unfinished Business G. New Business A. Discussion of New Project - 3884-94 Parfet Street (duplex) H. Other 1. Adjournment CITY OF WHEAT RIDGE HOUSING AUTHORITY Minutes of Regular Meeting May 24, 2006 A. CALL MEETING TO ORDER The meeting was called to order at 7:00 p.m. by Chair Brungazdt. B. ROLL CALL Authority Members Present: Cheryl Brungardt Kent Davis Kathy Nuanes Authority Members Absent: Janice Thompson Terry Womble Others Present: AlanWhite, Community Development Directar Henry Wehrdt, Project Manager Larry Nelson, Cornerstone Realty Betty Maybin, Cornerstone Realty Ann Lazzeri, Recording Secretary C. APPROVAL OF MINUTES D. It was moved by Kent Davis and seconded by Kathy Nuanes to approve the minutes of March 22, 2006 as presented. The motion passed unanimously. There were no officer reports. E. PUBLIC FORUM There was no one to appear before the Authority. F. UNFINISHED BUSINESS There was no unfinished business: G. NEW BUSINESS Amendment to Bvlaws Following discussion at the March meeting regarding election of officers, it was suggested that the bylaws by amended to state that "Subsequent to the Housing Authority Minutes - 1 - OS-24-06 appointment of the first Chauman of the Housing Authority by the City Council, the Officers of the Authority shall be elected annualiy by the Authority It was moved by Kathy Nuanes aud seconded by Kent Davis to approve an amendment to the Bylaws of the Wheat Ridge Housing Authority that allows for annual election of officers by the Authority. The motion passed unanimously. 2. Uodate on Sales . Larry Nelson of Cornerstone Realty reported on sales progress at Parkside. Two closings took place last week and four units remain to be sold. Flood insurance premiums increased and prices of the units were raised accardingly. Henry Wehrdt, Project Manager, reported on final construction details. 3. Possible Future Proiects Discussion regarding future Housing Authority projects included suggestions to do a project in District I and to provide some units with accessibility for. individuals with disabilities. Wheat Ridge 2020 has expressed an interest in working with the Housing Authority. H. OTHER Alan White requested direction regazding an agreement he received from Comcast which would allow access to the property at Pazkside for installation purposes. It was moved by Kent Davis and seconded by Kathy Nuanes to approve the Comcast access agreement contingent upon review and approval by city attorney, Jerry Dahl. The motion passed unanimously. 1. ADJOURNMENT The meeting was adjourned at 7:40 p.m. Cheryl Brungardt, Chair Housing Authority Minutes OS-24-06 Ann Lazzeri, Secretary 2 CITY OF WHEAT RIDGE HOUSING AUTHORITY Minutes of Special Meeting June 12, 2006 A. CALL MEETING TO ORDER The meeting was called to order at 9:51 a.m. by Chair Brungazdt. B. ROLL CALL Authority Members Present: Cheryl Brungardt Kent Davis Janice Thompson Authority Members Absent: Kathy Nuanes Terry Womble Others Present: Alan White, Community Development Director Larry Nelson, Comerstone Realty Betty Maybin, Cornerstone Realty Henry Wehrdt, Project Manager C. NEW BUSINESS • Authorization to Purchase propertv at 3884-94 Parfet Street Larry Nelson of Cornerstone Realty presented a proposal to purchase property located at 3884-94 Parfet Street. Henry Wehrdt has inspected the property in regard to needed renovations. An offer of $237,000 was made on this duplex and if is necessary for the Housing Authority to either approve or deny this offer today. With all anticipated renovations, the estimated total budget would be $352,000. The two bedroom, one bath, ranch unit could probably be sold for $175,000 and the four-bedroom, two-bath unit for $200,000. Each unit has a one-caz garage. Cheryl Brungazdt commented that she was excited about the proj ect and it would improve the entire neighborhood. It has been very difficult to find a duplex that is affordable for renovation. Kent Dauis expressed concern about possible mold and, also, whether this project could make a return of 5% which he considered to be reasonable. He would also like more time to consider this project. Housing Authority Minutes - 1 - 06-12-06 7anice Thompson stated that she thought this was a good proj ect. If mold becomes a problem she suggested eliminating air conditioning costs to be used for mold abatement. Henry Wehrdt commented that the $250,000 in Jefferson County Home Funds must be dedicated before the end of the year. He was not suxe if these funds could be used for purchase of this property. It was moved by Janice Thompson and seconded by Cheryl Brungardt to authorize the Housing Authority to purchase property located at 3884-94 Parfet Street for $237,000 with a contingency that if there are additional costs for mold abatement the Authority consider what improvements could be deleted to meet the cost of mold abatement and still have a 1.98% pro£t. The motion.passed 2-1 with Kent Davis voting no. D. OTHER • There was a consensus to change Housing Authority meetings to the 4th Tuesday of the month during the summer months of June, July, and August. E. ADJOURNMENT The meeting was adjourned at 10:33 a.m. Cheryl Brungazdt, Chair Ann Lazzeri, Secretary Housing Authority Minutes 06-12-06 l ~G R1~ MA}'OR Jerry DiTullio (303) 235-2800 CITI' CLERK Pam Anderson (303)235-28:3 CITI' TREASIRER Maz}' Cavarta (303) 235-2810 SCIL ME>IBERS (303)235-2816 UItiTRI(T 1 Karen Bem TemWom61e DItiTRI(T II Enos "Dean" Gokey Wanda Sang msreu-r w Aaren Adams Mike Swa uisi Hu-r iN l,ena Romla Izm'Schulz CITY OF WHEAT RIDGE 7500 West 29~' Avenue Wheat Ridge, CO 80033 Fax: (303) 234-5924 June 20, 2006 Westridge Sanitation District 3705 Kipling Street, Suite 101. Wheat Ridge, CO 80033 Re: Duplex conversions within the City of Wheat Ridge by the Wheat Ridge Housing Authority. To Whom It May Concern: I wanted to take this opportunity to inform you of the quality work being performed by the Wheat Ridge Housing Authority. In an effort to address the low rate of homeownership that existed within the City of Wheat Ridge, the City created the Wheat Ridge Housing Au:hority which is chazged with the task of increasing the overall level of owner occupied homes within the City. To accomplish this goal, the Housing Authority actively seeks properties that can be acquired, rehabilitated and then sold as "Affordable Housing" units to income qualified families. To date, the Authority has completed the rehabilitation and sale of three sepazate condominium projects. These projects have been greatly successful providing homes ownership opportunities for over twenty-five families within the City. In an effort to continue the important work of the Housing Authority, the Housing Authority has begun investigating the feasibility of acquiring and rehabilitating existing duplex units. The acquisition of these types of units will provide the Housing Authority a new type of product to offer as affordable housing. It will also permit the Housing Authority the opportunity to rehabilitate and sell more units per yeaz. Acquiring these duplex units will not only create additional opportunities to offer additional affordable housing within the City but it will also begin to address the current situation existing where duplex units aze served by only one water and sewer tap. At this time, the Housing Authority is currently researching several options that will benefit not only the Housing Authority and the City, but also the Westridge Sanitation District. By acquiring these types of units, the Housing Authority will be able to establish a form of ownership which will permit the Housing Authority to sell the units to individual owners without the necessity of installing a second water and sewer tap, while at the same time, protecting the District as well. Unfortunately, if the Housing Authority is required to add a new water and sewer tap for each duplex acquired, the units become cost prohibitive to offer for sale as affordable housing. As the City of Wheat Ridge is firmly behind the efforts of the Housing Authority, we hope that the Westridge Sanitation District will seriously consider the proposals that will be forth coming in the neaz future and I hope that the Water Company will offer its cooperation so that a mutually beneficial resolution can be reached. I would like to thank you in advance for your cooperation. jSSmce ly iTullio, Mayor cc: City of Wheat Ridge Council Members Randy Young Alan White City of Wheat Ridge Housing Authority Members file CITY OF oop' WHEAT RIDGE ninvoe Jerty DiTullio (303) 235-2800 CITlCLERK Pam Anderson (303) 235-2823 CITI" TREASI'RER Mary Cavarta (303) 235-2810 ~CIL NEM6ERS (303) 235-2816 DISTRICT I Raren Bert}' Tem Womble DISTRI('! 11 Enos "Dean" Gokey Wanda Sang DISTRI(T 111 F:aren Adams Mike Stites DISTRICT I\' lena Rotola larty Schulz 7500 West 29~' Avenue Wheat Ridge. CO 80033 Fax: (303) 234-5924 June 20, 2006 Mr. Walter S. Welton, President Consolidated Mutual Water Company 12700 W. 27th Ave. Lakewood, CO 80215 Re: Duplex conversions within the City of Wheat Ridge by the Wheat Ridge Housing Authority. Deaz Mr. Welton, I wanted to take this opportunity to inform you oF the quality work being performed by the Wheat Ridge Housing Authority. In an effort to address the low rate of homeownership that existed within the City of Wheat Ridge, the City created the Wheat Ridge Housing Authority which is chazged with the task of increasing the overall level of owner occupied homes within the City. To accomplish this goal, the Housing Authority actively seeks properties that can be acquired, rehabilitated and then sold as "Affordable Housing" units to income qualified families. To date, the Authority has completed the rehabilitation and sale of three separate condominium projects. These projects have been greatly successful providing homes ownership opportunities for over twenty-five families within the Ciry. In an effort to continue the important work of the Housing Authority, the Housing Authority has begun investigating the feasibility of acquiring and rehabilitating existing duplex units. The acquisition of these types of units will provide the Housing Authority a new type of product to offer as affordable housing. It will also permit the Housing Authority the opportunity to rehabilitate and sell more units per year. Acquiring these duplex units will not only create additional opportunities to offer additional affordable housing within the City but it will also begin to address the current situation existing where duplex units are served by only one water and sewer tap. At this time, the Housing Authority is currently researching several options that will benefit not only the Housing Authority and the City, but also the Consolidated Mutual Water Company. By acquiring these types of units, the Housing Authority will be able to establish a form of ownership which will permit the Housing Authority to sell the units to individual owners without the necessity of installing a second water and sewer tap, while at the same time, protecting the Water Company as well. Unfortunately, if the Housing Authority is required to add a new water and sewer tap for each duplex acquired, the units become cost prohibitive to offer for sale as affordable housing. As the City of Wheat Ridge is firmly behind the efforts of the Housing Authority, we hope that the Consolidated Mutual Water Company will seriously consider the proposals that wiil be forth coming in the neaz future and I hope that the Water Company will offer its cooperation so that a mutually beneficial resolution can be reached. I would like to thank you in advance for your cooperation. S illio, Mayor cc: City of Wheat Ridge Council Members Randy Young Alan White City of Wheat Ridge Housing Authority Members file June 5, 2006 3894 & 3884 Parfet Street I...,)ked at the two vacant properties on Saturday, June 3 and observed the following potential renovations: • Trim bushes and remove from in front of entry doors • Replace front and reaz sod and some zeroscape in rear • Repair or replace chainlink fence with privacy fence • Replace driveway and front porch at 3894 • Replace crawl space cover • Create positive drainage azound exterior foundation • Install sump pump and new pit in 3894 and to remove mold in crawlspace areas . Install new sump pump and pit in 3874 . Window wells to accommodate egress in basement bedrooms • Clean duct work and fiunaces evaluation as well as hot water heaters • Paint soffit, gutters, downspouts, siding and facia or cover with vinyl • Attic and wall insulation? • Gazage doors to be replaced . Replace entry doors front and rear and security doors front and storm door rear • Replace service doors to gazage both units • Replace all 22 windows with vinyl thermopane windows and aluminum mini-blinds $ 100 $7,500 $6,500 * $5,000 * $ 150 $1,500 $ 700 ? $ 700 $ 750 $ 800 $1,750/$3,500 • Replace 15 interior doors, jambs and trim ~ Replace closet doors 2-5' and 2-4' sliders mirrored . In main bathrooms R&R tub/mixer/vanity/sink/faucet/stooUmedcab/light/tile and accessories . In'/a bath install shower base/replace mixer/vanity/sink/fauceUstooUmedcab/light & accessories • Reframe lower entry to bath to be within existing bathroom • Replace cabinets, countertops both units and install cabinets in laundry areas • Replace linoleum in enhy, bathrooms and kitchen-laundry rooms • Repair subfloor, seal carpet and pad replaced • Replace dishwasher in 3894 and new in 3894 • Replace electric range and hood and refrigerator • Remove paneling in 38941iving room and basement living azea of 3884 and R&R dryv✓all • GFI's in gazage, kitchen and bathrooms • Replace all overhead light fixtures including garages • Repair drywall as needed and double coat paint interiors Total projected hazd costs 5% management fee TOTAL $77,100 $2,250 $1,800 $2,400 $ 800 $7,700 $ 900 $1,200 $4,000 $2,500 $ 750 $4,500 $2,250 $5,000 $1,000 $2,100 $1,200 $1,125 $ 900 3 000 $72,475 $ 3,625 Development Budget Duplex Conversion @ 3884-3894 Parfet St. Costs Acquisition 237000 Appraisal 0 Survey/Condo Map 3000 Flood Map Survey 0 Construction Interest 0 Loan Fees 0 Cfosing Costs 300 Architedure 0 HOA Dues 0 Construction Costs 72475 New Fumaces,H20,A/C 8000 Soft Costs JCHA 3624 Construction Maintenance 1000 Zoning AppGcation 500 Insurance 1000 Taxes 250 LegaUAccounting 2500 Uiilities 500 Trash Removal 500 Office Expense 250 Project Approval 0 Marketing 17760 Model Unit Siaging 1500 Title 1500 Seller Closing Costs 1000 Misc. 5000 Contingency 5000 Buyer Subsidies 0 Total Costs 362659 ftevenues 1 Unit @ 175000 1 Unit @ 195000 TotalRevenues 370000 Profit 7341 1.98% sm2oos PDF created with FinePrint pdfFactory Pro trial version www.qdffactorv.com Wheat Ridge Housing Authority 06n1106 Park Side Project All Transactions Jun 20,'06 % of Income Ordinary Income/Expense Income 500 • Sale of Units 708,000 99% 530 • Rent 9,233 1 % Total Income 777,233 100% Cost of Goods Sold 555 • Purchase ot Units 545,000 76% 560 • Acquistion Appraisal Fees 1,700 0% 662 • Acquisitions Costs 7,939 0% 563 • Architecture 600 0% 666 - Condo Map 5,658 7% 667 • Construction Period Maintenance 3,913 1% 568 • Construction Management 17,636 2% 670 • Garages 43,420 6% 571 • Homeowners Association 2,025 0% 577 • Rehabilitation -Appliances 12,210 2% 674 • Rehabilitation - Cabinets 43,121 6% 576 • Rehabilitaion - Eleclrical 15,950 2% 576 Rehabilitation - Exterior 82,409 11 % 577 • Rehabilitation - Floors 31,498 4% 578 • Rehabilitaion - Plumbing 31,082 4% 560 • Rehabilitation -Various 107,545 75% 561 - Supplies/Materials 932 0% 699 • Ending Cost of Units -339,713 -47% Total COGS 606,923 85% Gross Profit 110,310 15% Expense 700 • Selling Costs 7,868 0% 704 • Buyer Incentives 23,434 3% 705 • Closing Costs 3,484 0% 770 • Commissions 29,802 4% 750 • Accounting 8 Legal 365 0% 802 • Gardening & Maintenance 5,720 1% 807 • Insurance 5,234 1% 825 • OKce Supplies 70 0% 832•Postage 42 0% 849 - Repairs 1,686 0% 857 • Taxes - Real Estate . 300 0% 865 • Trash Removal 806 0% 872 • Utilities 1,890 0% Total Expense 74,701 10% Net Ordinary Income 35,610 5% Other Income/Expense Otherlncome 564 - CDBG Gront 75,000 10% Total Other Income 75,000 10% Net Other Income 75,000 10% Net Income 710,610 'IS°k Page I Wheat Ridge Housing Authority 0e121/06 Balance Sheet As of June 21, 2006 Jun 21,'06 ASSETS Current Assets CheckinglSavings 113 • Vectre Operating Account 767,482 TotalChecking/Savings 761,482 Other Current Assets 167 • ParkSide Project Invenlory 339,713 152 • Quail Project Inventory 119,804 153 • Partet Project Inventory 3,000 TotalOtherCUrrentAssets 462,577 Total Current Assets 1,223,999 Other Assets 271 • Note Receivable - Abel 3,000 273 • Note Receivable - Baca 9,308 Total Other Assets 12,308 TOTAL ASSETS 1,256,707 LIABILITIES & EQUITY Equity Net Income 33,243 465 • Fund Balance 1,203,064 Total Equity 7,236,307 TOTAL LIABILITIES & EQUITY 1,276,707 Page 1