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HomeMy WebLinkAbout05/23/2001 CITY OF WHEAT RIDGE HOUSING AUTHORITY Minutes of Meeting May 23, 2001 1. CALL THE MEETING TO ORDER The meeting was called to order by Chair DiTULLIO at 7:00 p.m., May 23,2001, in the Lobby Conference Room of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. 2. ROLLCALL Authority Members Present: Jerry DiTullio Mary Jo Cavarra (arrived at 8:00 p.m.) Kathryn Fulton Kent Davis Authority Members Absent: Cheryl Brungardt Others Present: Alan Feinstein, Jefferson County Housing Authority Michelle Mitchell, Colorado Housing Assistance Corporation (CHAC) Jim Bills, Vectra Bank Keith Marsden, Vectra Bank Interested Citizens 3. MINUTES The minutes of April 25 and May 9, 2001 were presented for consideration. It was moved by Kent Davis and seconded by Kathryn Fulton to approve the minutes of April 25 and May 9 as presented. The motion passed 3-0 with Mary Jo Cavarra and Cheryl Brungardt absent. 4. OFFICERS REPORTS There were no officer reports. 5. PUBLIC FORUM There were three citizens present who attended the meeting to gain information on housing assistance. 7. NEW BUSINESS A. Presentation from Michelle Mitchell . CHAC offers home buyer education and offers 8-15 classes a year throughout Colorado. Ifthere should be an overwhelming response to the Wheat Ridge Housing Authority program, she would be willing to arrange for a class to be held in the Wheat Ridge Vicinity. This class could also include information specific to the Wheat Ridge Housing Authority program. People who attend classes are then encouraged to attend a Housing Authority May)r,2001 ~ Page 1 one-on-one counseling session to discuss mortgage options, credit reports, etc. . CHAC offers down payment assistance via a federal program operated through Jefferson County. Presently the Jefferson County rules provide for loans to be at 6% simple interest for 4% of the sales price with a cap of$5,000. It is possible that different rules could be set for the Wheat Ridge program. . CHAC works with local banks and prefers that applicants be given names of at least three lenders to choose from. . There are ample loan funds available at present; however, there is a shortage of properties. B. Presentation bv Jim Bills and Keith Marsden. Vectra Bank . Vectra Bank has the capability of providing many different kinds of financing to aid the city in acquiring properties and has experience working with private investors on rehab . projects as well as working with housing authorities. . The bank would prefer to start off with smaller projects at first. . Vectra could also provide mortgages. . Mr. Bills and Mr. Marsden would like to come back to the Housing Authority to review underwritiog criteria, once it is developed. 6. UNFINISHED BUSINESS A. Property Purchase - Review and discussion of potential property available for purchase. Alan Feinstein reported that he, and members of his staff, as well as representatives from Cornerstone Realty visited the property at 3839 Reed Street that contains a house and three duplexes which could be converted into three single family homes. The house seemed to be in very good shape; however, the duplexes would require a lot of work. Consideriog the cost of acquisition and renovation, it appears the final resale price would be around $150-160,000 per 1200 square-foot unit. This price is really not in the affordable price range for low-income home buyers. The owner has indicated he would not lower his price. Following discussion, it was moved by Kathryn Fulton and seconded by Kent Davis that the Housing Authority pass on the Reed Street property. The motion passed 3-0 with Mary Jo Cavarra and Cheryl Brungardt absent. Mr. Feinstein discussed two other potential properties. Jerry DiTullio asked if it would be feasible for the city to sell the duplex on the Richards Hart Estate to the Housiog Authority. This duplex is presently a rental. Kent Davis commented that this might require a vote of the citizens of Wheat Ridge. Jerry DiTullio will look into this. 8. OTHER . Alan Feinstein reported that he was working on an application for matching funds with the Division of Housing. A public hearing on the application will be held on June 1. . Alan Feinstein will encourage Cornerstone Realty to aggressively seek possible properties for purchase by the Housing Authority. Housing Authority May)l;"200 1 &13 Page 2 . Kathryn Fulton commented that it is important to learn of these properties before they are placed on the multi-list. . One of the citizens attending the meeting asked if the Authority would consider "sweat equity." One option for the Authority to consider might be to do minimal rehabilitation with the owner completiog the work. . Mary Jo Cavarra submitted, for the Authority's consideration, copies of an evaluation sheet she developed that would serve as a guideline in ranking prospective properties. The evaluation sheet will be discussed at the next Housing Authority meeting. . Kathryn Fulton suggested that the Authority should look for properties that are large enough for families since that seems to be a big area of need. . Due to the lack of a quorum on June 27, it was moved by Mary Jo Cavarra and seconded by Kathryn Fulton to change the date ofthe next meeting to June 19. The motion passed 4-0 with Cheryl Brungardt absent. In the meantime, Alan Feinstein will alert the Authority if a property is available that needs immediate consideration and a special meeting will be called. 9. ADJOURNMENT The meetiog was adjourned to June 19 at 8:18 p.rn. Jerry DiTullio, Chair Ann Lazzeri, Recording Secretary Housing Authority Ma~ 2001 <?i3 Page 3