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Minutes Housing Comm. 4 25 06 " MINUTES OF HOUSING COMMISSION MEETING DATE: TIME: PLACE: 25 April 2006 4p.m. Housing and Community Development Department Chairperson Kapler called the meeting to order at 4:03 p.m. following staff assurance of compliance with Iowa Open Meeting Law. Commissioners Present: John Plein Bill Helling Harry Neustadt Dave Kapler Char Eddy Danita Grant Dorothy Culbertson Dorothy Schwendinger, OSF Commissioners Absent: Angie Mozena Jim Holz Staff Present: David Harris Joleen Patterson Janet Walker Tusdee Blus Public Present: None Chairperson Kapler opened meeting with reference to the grand opening of the Teresa House shelter later this evening. The Commissioners were welcome to attend after the Housing Commission meeting adjourned. Review and Certification of Minutes of 28 March 2006 Commission Meeting Commissioner Grant noted that she had been listed in both the present and absent columns. Tusdee Blus noted that Commissioner Eddy did not open and chair the meeting, but instead Chairperson Kapler did. Commissioner Schwendinger motioned to approve the 28 March 2006 meeting minutes with changes as submitted. Commissioner Eddy seconded. Roll call. Commissioners Grant and Helling abstained. All others present in favor. Motion passed. New Business Family Self-Sufficiency Program Application Janet Walker explained the FSS Coordinator Funding Application. There are two grants, one for the position itself, and the second is the contract for homeownership and financial counseling, which we contract with Dubuque County Extension. We are asking for a 1% increase. Commissioner Schwendinger motioned to recommend approval of the FSS application to the City Council. Commissioner Helling seconded. Roll call. Commissioner Eddy abstained. All others present in favor. Motion passed. Shelter Plus Care Application; Partnership with Project Concern David Harris explained the new partnership. We will act as the fiscal agent for Project Concern. The grant will fund rental assistance for disabled homeless persons. Commissioner Neustadt motioned to approve the application. Commissioner Eddy seconded. Roll call. All present in favor. Motion passed. 4: 1 0 pm - Chairperson Kapler excused himself from the meeting due to potential of conflict of interest regarding next agenda item. Rehab Loan Policy Exception Considerations for Washington Neighborhood: 2nd Mortgage Assistance: $15,000; Due-On-Sale Financing Joleen reviewed the Requested Waiver for Homeowner Applicant for the Commission. She stated that the couple is interested in purchasing the home at 1502 Washington St, currently owned by DB&T. DB&T purchased it from a private individual, and paid more than it is actually worth. The asking price from the bank is $40,000 and the property will need complete rehabilitation at a cost of $57,000. Joleen proposed a $20,000 first mortgage from D8&T, and recommended the buyer be approved for a $15,000 CDBG Due on Sale second mortgage to encourage them to purchase the property. They would also be given an IFA-Trust Fund $5,000, 0%, five-year forgivable loan. She stated that they are a young couple with one child and are under the 50% income guidelines. David explained the exception but stated that this could become more typical in this neighborhood. The Commission asked about the couple's employment and Joleen stated that they are in fact employed and have good credit. The property was originally a single-family, changed to a duplex, and they now wish to restore it to its original state. They are contributing 3% down payment. Commissioner Helling asked about how many structures were in this neighborhood, to which David responded 450 in a 55 square block area. The neighborhood runs from 11 th Street to 22"d Street. Commissioner Helling motioned to approve the loan. Commissioner Schwendinger seconded. Roll call. All present in favor. Motion passed. Reduction in Required Downpayment; Waiver of Prior Year Ownership Requirement In Case of Divorce; Waiver of Requirement for Payment of Collections; 2- Year Guarantee of 1st Mortgage to Primary Lender Joleen provided background for the second Request for Waivers for Homeowner Applicant. The applicant is a divorced mother of three. Her credit is not outstanding and she has old debt from her marriage, which is not medically-related. According to our current regulations, all non- medical debt must be paid prior to the loan being approved. Commissioner Eddy and Dubuque County Extension will counsel her until she is able to payoff the debt. Her ex-husband has also agreed to help with this. She's been employed for two years. According to our current regulations, she is not considered to be a first-time homebuyer. However, by IFA's standards, she is based upon her status as a divorced person with children. She is only able to come up with 1 % for the down payment (instead of the required 3%). The seller is paying $2,500 towards the downpayment/closing costs to assist her. DB& T will approve the loan for $59,000 and keep it in house if the City guarantees the loan for 2 years, effectively eliminating the PMI insurance. In two years it would go to an adjustable rate mortgage and she would have to obtain refinancing at that time. Joleen will monitor the loan payments monthly and the applicant will do automatic withdrawal for the payments. The Commission would like to address the policy of divorced persons with children and their ability to be considered first time home buyers at a later meeting. They would like more information prior to making an informed decision. After further discussion, Commissioner Neustadt made the suggestion of a Due-On-Sale Loan of $10,000 and the City would pay the bank upfront. We would effectively guarantee the loan for 2 years to the bank, reducing the first mortgage to $49,000, while providing a CDBG second . mortgage in the amount of $10,000. In two years she would have good credit and be in a better financial position. Commissioner Neustadt motioned to grant Jessy Jones a $10,000 Due-On-Sale mortgage and to approve the waivers as submitted. Commissioner Helling seconded. Roll call. All present in favor. Motion passed. Adiournment There being no further business to come before the Commission, Commissioner Schwendinger motioned to adjourn the meeting. Commissioner Grant seconded. Motion passed by acclamation. Meeting was adjourned at 4:55 p.m. Minutes taken by: Zudee .8k Tusdee Blus Assisted Housing Secretary ~:~rbm~d by ~Vid Harris Department Director