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HomeMy WebLinkAbout24-Council Office - '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. \---'c- ". , "'. rv 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, ~ Agenda Item No. c:2 ~ c ,-.. '...... ........ -- } '.. .' 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. c c ......., / 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, --;:&m ~ / COilncilman Tom Minor Cha i rman Housing Low/Moderate Income Committee TM:ej