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HomeMy WebLinkAbout10/24/2001HOUSING AUTHORITY MEETING October 24, 2001 LOBBY CONFERENCE ROOM 7:00 P.M. A. Call Meeting to Order B. Roll Call C. Approval of the Minutes: October 3, 2001 D. Officers Reports E. Public Forum F. Unfinished Business 1. Condo Declaration 2. Deed Restrictions G. New Business 1. Discussion on Construction Manager - Alan Feinstein H. Other 1. Loan/Closing Status - 3747 Quail 1. Adjournment - to November 28, 2001 CITY OF WHEAT RIDGE HOUSING AUTHORITY Minutes of Meeting October 3, 2001 A. B. CALL THE MEETING TO ORDER The meeting was called to order by Chair DiTULLIO at 7:00 p.m., October 3, 2001, in the Lobby Conference Room of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. ROLL CALL Authority Members Present: Cheryl Brungazdt Mary Jo Cavarra Kent Davis Jerry DiTullio Authority Members Absent: Kathryn Fulton Others Present: Alan White, Planning Director Alan Feinstein, Jefferson County Housing Authority David Firman, Attorney Jim Bills, Vectra Bank Larry Nelson, Cornerstone Realty Betty Maybin, Cornerstone Rea1ty Bob Olson, The Chronicle Ann Lazzeri, Secretary C. D. E. F. - APPROVAL OF 1VIINUTE5 It was moved by Kent Davis and seconded by Cheryl Brungardt to approve the minutes of August 22, 2001. The motion passed unaoimously. OFFICERS REPORTS There were no officer reports. PUBLIC FORUM There were none present to address the Authority. UNFINISHED BUSINESS There was no unfinished business to come before the Authority. Housing Authoriry October 3, 2001 Page 1 G. NEW BUSINESS Diswssion of Condominium Declarations/Deed Restrictions - David Firman Attorney Mr. Firman reviewed a draft of the condominium declarations and deed restrictions. He requested direction from the Authority regazding deed restrictions and equity shaze. There was consensus to adopt the following: . Resale should be limited to income-qualified purchasers on the Wheat Ridge Housing Authority waiting list for a period of five yeazs. • The Housing Authority should have first right of refusal in order to obtain the property for resale to income-qualified purchasers. . After five yeazs, the owner should be able to sell unit at market price. Larry Nelson suggested that if units aze sold, for example, at $125,000, $5,000 could be carried back which the Authority could recoup at the end of five yeazs. The $5,000 would be reduced 20% each yeaz for five yeazs for the owner. There was a consensus to accept this equity shaze method. Also, after five yeazs, the owner should be able to sell unit at mazket price. A letter will be sent to current tenants notifying them of the Authority's intent to convert the units to private ownership. The letter will be sent out right after title is acquired. David Firman will incorporate suggestions and bring back a revised document. 2. Discussion of Permanent Financin¢ Alternatives/MortQa¢e Assistance Larry Nelson of Cornerstone Realty presented this matter. Vectra Bank, First Bank and US Bank have agreed to provide funding programs. He gave the following example: A buyer with perfect credit, etc., could have an income as low as $26,970 and be able to purchase a unit for $120,000 with $1,000 down. One current tenant has expressed interested in purchasing a unit. Two mortgage assistance organizations would be involved: Colorado Housing Assistance Corporation (CHAC) and the H20 Program administered out of Ft. Collins. It was moved by Kent Davis and seconded by Mary Jo Cavarra that authority be given to Cornerstone Realty to proceed with Vectra Bank, U5 Bank and First Bank. The motion passed unanimously. 3. Discussion of Work Cost Estimate for 3747 Quail Street This matter was introduced by Alan Feinstein. He presented some photographs of similaz properties in Wheat Ridge showing examples of porches and entryways that might be used on the Quail Street units. Housing Authority Page 2 October 3, 2001 Mr. Feinstein reviewed preliminary cost estimates of $370,000, or approximately $20,000 per unit, to refixrbish the units. A 10% contingency is built into the cost to hire a construction manager. A suggestion was made to approve all the exterior work and maybe eliminate some of the interior work. It would cost approximately $11,500 per unit to refurbish the exterior. Larry Nelson commented that compazable units in Wheat Ridge today would probably sell for about $135,000. It was moved by Mary Jo Cavarra and seconded by Kent Davis to approve the concept for common exterior work with the condition that if the cost goes over $161,000 it will come back to the Authority for review. The motion passed unanimously. Interior and code work was discussed. • Concern was expressed about lag time given the present economic condition. Lany Nelson said there is so little out there in this price range and there aze so many people with need for affordable housing that there shouldn't be a problem. . It was suggested that interior work consist of code work, painting and carpeting. Other improvements would be left to individual purchasers which would save approatimately $75,000 on rehab, or $5,300 per unit. . Options could be given to buyers to have extra work done such as replacing cabinets and this could be worked into the mortgage. • Concern was expressed about having a"show unit" completely refixrbished with new cabinets, etc., when the other units would only have new paint and new carpet. There was a consensus to give Alan Feinstein authority to hire a construction manager to oversee the entire remodeling project. H. OTHER 1. Loan/Closing Status - 3747 Quail Jim Bills, Vectra Bank, reported that the loan was approved in the amount of $1,444,000. This amount includes the entire cost estimate for remodeling the units. This is subject to the appraisal which should be completed by October 15 and closing could be scheduled for October 22. The loan will be in the name of Housing Authority. Insurance matters aze yet to be finalized. The floating interest rate wiil be based on the prime interest rate at time of closing. Vectra will chazge a$1,000 fee to process the loan. When the $500,000 grant is received from the State, it will be immediately applied to the loan. Housing Authority October 3, 2001 2. Authorization to Pav Rent on T6ird Unit Lazry Nelson reported that a third unit became available as of October 1 and requested authorization to pay rent on the unit until the purchase is closed. It was moved by Cheryl Brungardt and seconded by Mary Jo Cavarra that Comerstone Realty be authorized to pay rent on the third unit through October 26. The motion passed unanimously. 3. Marketing There was discussion about mazketing the project. • There were suggestions to invite members of the press to the closing and also invite them to tour the first renovated unit. . A project sign could also provide mazketing information. I. ADJOURNMENT The meeting was adjourned to October 24, 2001 at 825 p.m. Jerry DiTullio, Chair Ann Lazzeri, Secretary Housing Authority October 3, 2001 Page 4