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'crN OF SAN BERNARDaCb -
REQUe.1r FOR COUNCIL AC-hbN
From: Councilman Tom Minor
REC'D.li'iWWlif!iming Low/Moderate Income
. - Committee Report
1387 OCT 1 3 tfl ? J If' /I'
Dept: Council Office
Date: October 13, 1987
Synopsis of Previous Council action:
NONE
Recommended motion:
1. That minutes of Housing Low/Moderate Income Committee meeting
held October 9, 1987 be received and filed.
2. That Committee recommended actions be approved and appropriate
departments implement these actions as necessary and as soon
as possible.
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Signature! \
Contact parson: Ph; 1 II rv; 7.0
Phone:
1.QA_E;lQ$
Supporting data attached: Yes
Ward:
N/A
FUNDING REQUIREMENTS:
Amount:
N/A
Source: (ACCT. NO.)
(ACCT. DESCRIPTION)
Finance:
Council Notes:
H,.n,l!io,
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Agenda Item No. c:2 ~
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HOUSING LOW/MODERATE INCOME COMMITTEE
October 9, 1987
ATTENDEES:. Councilman Tom Minor - Chairman; Councilwoman
Valerie Pope-Ludlam; Community Development Director Ken
Henderson, Housing Development Specialist - Maurice Oliva;
Council Executive Assistant - Phil Arvizo; Housing Authority
- Al Harkins, Housing and Community Development Consultant
John Trauth; Dukes & Dukes - John Dukes.
1. PROPOSED CONCEPT PAPER - ACQUISITION/REHABILITATION
PROGRAM FOR HUD-ACQUIRED PROPERTIES - Item continued. Exten-
sive discussion took place. Issues that were posed on
Council floor at October 5 meeting were answered by Mr.
Trauth as follows:
a) Why not do program by buying large blocks (50-250)
of property at one time?
Process cannot work that way since auctions are
periodic and the largest block acquired at one time would be
ten.
Buying blocks that large would not be economically
feasible. Large blocks would not provide sufficient spread
to make money on. The City could not be selective and could
not do specific targeting.
b) The program does nothing for renters or the home-
less?
- True. That is not part of this program. This program
is for the homebuyer. If homebuyer goes into default the
property goes back to the City, not HUD.
c) What about rent skimming?
There are laws against this. Also since homes are
purchased, problems with rents are avoided.
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d) Since lenders only loan 50%, the program won't work.
This program isn't for real property. It fixes up
to 80%, the contractor is selected, the dollars are avail-
able.
e) The program will cut into realtors market.
This program is a small volume program. It needs
special treatment. Public intervention is justified.
f) High cost of rehab and acquisition causes home costs
to be prohibitive to the homeowner that the program is trying
to reach. Problem qualifying owners.
The program would have list of strong developers
willing to negotiate. Also would have a list of homebuyers
so that if one drops out another can jump in. There would be
rapid loan turnover. The program would go on a trial basis
with two or three homes at first.
The Committee recommended a further analysis and refine-
ment of the concept with a look at the "VA angleW and the Van
Osdel Program. Program strategy will be presented as soon as
ready but not later than second meeting in November.
2. DISCUSSION OF HOUSING MARKET STUDY. Item continued.
Community Development will draft a comprehensive Housing
Policy paper outlining an 18-month future strategy addressing
balanced housing mix, upscale housing (different definitions
to different areas), senior citizen housing, and how the City
can facilitate the policy.
3. COMMITTEE NAME - The Committee recommended changing
the name of the Committee to Housing Committee.
Meeting adjourned.
Respectfully submitted,
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COilncilman Tom Minor
Cha i rman
Housing Low/Moderate Income Committee
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