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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 06-24-2009APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY June 24, 2009 PRESENT: Chairman Jeff Kulaszewicz, Commissioners Steve Ludovissie, Bob Stein, Paul Caryotakis, and David Miller STAFF PRESENT: Housing Program Manager Jim Barnes and Office Support Representative Chele Kovacevick OTHERS PRESENT: Grace Management Representative Jody Boedigheimer 1. CALL TO ORDER Chairman Kulaszewicz called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 P.M. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from April 23, 2009. B. Approve HRA Meeting Minutes from May 27, 2009. C. Plymouth Towne Square. Accept monthly housing reports. D. Vicksburg Crossing. Accept monthly housing reports. MOTION by Chairman Kulaszewicz, seconded by Commissioner Ludovissie to approve the consent agenda. Vote. 5 Ayes. MOTION approved unanimously. 3. NEW BUSINESS A. Vicksburg Crossing. Marketing Report. Grace Management Representative Boedigheimer reported that there are only eight units unspoken for at this time plus there is one good prospect as well and one more secured by a deposit. There have been a lot of positive comments on the model and the value of the second bedroom as a den or office space. It has been taking two to three visits for a lease -up to occur. Two of the affordable units became available and have subsequently been filled. Currently there are no specific publicity events planned except for National Night Out. Approved Plymouth Housing and Redevelopment Authority June 24, 2009 Page 2 Commissioner Ludovissie asked Grace Management Representative Boedigheimer how comparable housing developments are doing currently. She responded that their staff will be looking at comparables in July. Housing Program Manager Barnes stated that the HRA has not done a rental survey as it is not currently required by HUD for Section 8 purposes. Chairman Kulaszewicz asked Grace Management Representative Boedigheimer if she had any thoughts about implementing a small rent increase at this time. She responded that they have been doing small increases. Housing Program Manager Barnes said that we don't want to lose tenants as a result of aggressive rent increases. Chairman Kulaszewicz asked if HUD regulates the maximum rent increase allowed. Housing Program Manager Barnes said they do but only for the 34 low-income units, which are approximately fifty dollars below the maximum allowed. B. Consider policies regarding amendments to restrictive covenants. Housing Program Manager Barnes gave an overview of restrictive covenants as a tool in maintaining affordable housing stock. After the initial sale, a restrictive covenant keeps the unit in the affordable housing pool. Requests for waivers have increased in this difficult market because the restrictive covenants put the owner/seller in a tougher spot for resale. The two requests to date have been handled on a case to case basis. Some factors taken into consideration for a potential waiver is how long and at what price the property has been aggressively marketed, and if the waiver might prevent an immanent foreclosure and the subsequent credit issues. Commissioner Stein asked for an example of the restrictive covenant. Housing Program Manager Barnes explained that 125 units were offered at affordable sales prices in the Reserve by Rottlund and seven of the units have restrictive covenants on them that require the unit to be sold to a buyer who meets certain criteria, and that restrictive covenant survives each subsequent sale. Commissioner Stein asked if it is waived does it get removed permanently. Housing Program Manager Barnes replied yes. Commissioner Stein asked if First Time Home Buyer monies would be forfeited also. Housing Programs Manager Barnes stated that is a possibility. Chairman Kulaszewicz asked if restrictive covenants would survive a foreclosure. According to Housing Program Manager Barnes no, the restrictive covenants would be removed at that time. Commissioner Ludovissie remarked that he is troubled by managing this issue on a case-by-case scenario and would prefer to adopt a policy or at least a set of guidelines. Commissioner Stein asked Housing Program Manager Barnes how many times the HRA has been approached on this issue. He responded four or five times out of the 22 loans issued. Housing Program Manager Barnes commented that a policy has value in that it can be applied uniformly to any request for a waiver. Commissioner Stein added that it should be noted that under no circumstances does a variance or exception create a precedence. Chairman Approved Plymouth Housing and Redevelopment Authority June 24, 2009 Page 3 Kulaszewicz asked if there is an "intent to foreclose" notice given the homeowner or mortgagee at which point the HRA could step in. Housing Program Manager Barnes stated that the HRA is not notified on every foreclosure because in the past we did not request to be notified when the documents were recorded. Commissioner Caryotakis remarked that his hope would be to get involved early in the case of a foreclosure scenario. Commissioner Ludovissie said he considers all restrictive covenants to be a liability to the owner. Commissioner Caryotakis said he would not want to incentivize a sale by removing the restrictive covenant. Commissioner Stein suggested amortizing the payback amount based on years of occupancy and then the restrictive covenant would be permanently removed. Commissioner Stein asked how the board would define a "hardship." Housing Program Manager Barnes suggested that the 90 day notice may be the trigger point. After 90 days of aggressive marketing, well-documented showings, etc. then we can offer a removal of the restrictive covenant. Commissioner Ludovissie commented that he is not a big fan of rewriting rules in the middle of the game as it tends to penalize the 75% of the participants who are living with their circumstances. He also asked if there is any down side in letting the owners know there may be an option if they are in a foreclosure situation. Chairman Kulaszewicz suggested that a hardship be defined as it is for 401K programs noting that if a foreclosure occurs, we lose the restrictive covenant, an affordable housing unit, and the second mortgage proceeds. Housing Program Manager Barnes said there are currently two families who have approached the City about waiving a portion or all of their loans and removing the restrictive covenants. Commissioner Ludovissie suggested that the HRA staff structure a limited survey to take the temperature as to how the program is serving their needs. Housing Program Manager Barnes said it may be difficult to get accurate information especially in the case of a pending foreclosure. He also suggested that the HRA could send out a letter to FTHB participants acknowledging that the economic situation has hurt many households financially and let the participants know that there are resources available. Commissioner Ludovissie added that with this information in hand, we can better serve their needs. Housing Program Manager Barnes will direct staff to come up with some basic tenants of what constitutes a hardship. He also recommended that in the interim Executive Director Juetten would be directed to enter into negotiations with the family currently facing foreclosure until a policy can be formulated. MOTION by Commissioner Miller, seconded by Commissioner Kulaszewicz to entitle Executive Director Juetten to enter into negotiations with the family currently experiencing a foreclosure, until a policy can be formulated. Vote. 5 Ayes. MOTION approved unanimously. Approved Plymouth Housing and Redevelopment Authority June 24, 2009 Page 4 4. ADJOURNMENT MOTION by Commissioner Ludovissie to adjourn without exception. Vote. 5 Ayes. MOTION approved unanimously. The meeting was adjourned at 8:10 p.m.