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HomeMy WebLinkAbout10/03/2001 ORIGjNAl CITY OF WHEAT RIDGE HOUSING AUTHORITY Minutes of Meeting October 3, 2001 A. 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 ofthe Municipal Building, 7500 West 29th A venue, Wheat Ridge, Colorado. B. ROLLCALL Authority Members Present: Cheryl Brungardt Mary Jo Cavarra Kent Davis Jerry DiTullio Authority Members Absent: Kathryn Fulton Others Present: Alao White, Planning Director Alao Feinstein, Jefferson County Housing Authority David Firmao, Attorney Jim Bills, Vectra Bank Larry Nelson, Cornerstone Realty Betty Maybin, Cornerstone Realty Bob Olson, The Chronicle Ann Lazzeri, Secretary c. APPROVAL OF MINUTES It was moved by Kent Davis and seconded by Cheryl Brungardt to approve the minutes of August 22, 2001. The motion passed unanimously. D. OFFICERS REPORTS There were no officer reports. E. PUBLIC FORUM There were none present to address the Authority. F. UNFINISHED BUSINESS There was no unfinished business to come before the Authority. Housing Authority October 3, 200 I Page I G. NEW BUSINESS 1. Discussion of Condominium DeclarationsIDeed Restrictions - David Firman, Attorney Mr. Firmao reviewed a draft of the condominium declarations aod deed restrictions. He requested direction from the Authority regarding deed restrictions aod equity share. 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 years. . The Housing Authority should have first right of refusal in order to obtain the property for resale to income-qualified purchasers. . After five years, the owner should be able to sell unit at market price. Larry Nelson suggested that if units are sold, for example, at $125,000, $5,000 could be carried back which the Authority could recoup at the end of five years. The $5,000 would be reduced 20% each year for five years for the owner. There was a consensus to accept this equity share method. Also, after five years, the owner should be able to sell unit at market price. A letter will be sent to current tenaots 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 Firmao will incorporate suggestions aod bring back a revised document. 2. Discussion of Permanent Financing Alternatives/Mortgage Assistance Larry Nelson of Cornerstone Realty presented this matter. Vectra Bank, First Bank aod US Bank have agreed to provide funding programs. He gave the following example: A buyer with perfect credit, etc., could have ao income as low as $26,970 aod be able to purchase a unit for $120,000 with $1,000 down. One current tenaot has expressed interested in purchasing a unit. Two mortgage assistaoce organizations would be involved: Colorado Housing Assistaoce Corporation (CHAC) and the H20 Program administered out ofFt. 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, US Bank and First Bank. The motion passed unanimously. 3. Discussion of Work Cost Estimate for 3747 Quail Street This matter was introduced by Alao Feinstein. He presented some photographs of similar properties in Wheat Ridge showing examples of porches aod entryways that might be used on the Quail Street units. Housing Authority October 3, 200 I Page 2 A suggestion was made to approve all the exterior work aod maybe eliminate some of the interior work. It would cost approximately $11,500 per unit to refurbish the exterior. Mr. Feinstein reviewed preliminary cost estimates of $370,000, or approximately $20,000 per unit, to refurbish the units. A 10% contingency is built into the cost to hire a construction maoager. Larry Nelson commented that comparable 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 aod code work was discussed. . Concern was expressed about lag time given the present economic condition. Larry Nelson said there is so little out there in this price raoge aod there are so maoy people with need for affordable housing that there shouldn't be a problem. . It was suggested that interior work consist of code work, painting aod carpeting. Other improvements would be left to individual purchasers which would save approximately $75,000 on rehab, or $5,300 per unit. . Options could be given to buyers to have extra work done such as replacing cabinets aod this could be worked into the mortgage. . Concern was expressed about having a "show unit" completely refurbished with new cabinets, etc., when the other units would only have new paint aod new carpet. There was a consensus to give Alao Feinstein authority to hire a construction maoager to oversee the entire remodeling project. H. OTHER 1. Loan/Closing Status - 3747 Quail Jim Bills, Vectra Bank, reported that the loao 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 aod closing could be scheduled for October 22. The loao will be in the name of Housing Authority. Insuraoce matters are yet to be finalized. The floating interest rate will be based on the prime interest rate at time of closing. Vectra will charge a $1,000 fee to process the loao. When the $500,000 graot is received from the State, it will be immediately applied to the loao. Housing Authority October 3, 200 I Page 3 2. Authorization to Pay Rent on Third Unit Larry Nelson reported that a third unit became available as of October I aod 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 Cornerstone Realty be authorized to pay rent on the third unit through October 26. The motion passed unanimously. 3. Marketing There was discussion about marketing the project. . There were suggestions to invite members of the press to the closing aod also invite them to tour the first renovated unit. . A project sign could also provide marketing information. I. ADJOURNMENT The meeting was adjourned to October 24,2001 at 8:25 p.m. ~ /, /! ( LC~VA^" Ann Lazzeri, Secretary < . air Housing Authority October 3, 2001 Page 4