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HRA Meeting Minutes – Tuesday, May 17, 2011 Page 2 1 Mr. Finzell advised that the RLT now serves all of Ramsey County, while having started 2 serving only the Rondo neighborhood of St. Paul; and until the last few years, working almost 3 exclusively with families to get them into affordable new construction or homes available on 4 the open market. Over the last 18 months, Mr. Finzell advised that the focus of the RLT had 5 changed to work with vacant homes and foreclosed buildings that currently face all 6 communities within Ramsey County, Mr. Finzell noted that this was possible through 7 realignment of funding from the City of St. Paul, with those funds still remaining in St. Paul as 8 applicable, but also funding programs in the broader Ramsey County. To-date, Mr. Finzell 9 provided examples of two (2) different projects successfully completed and related to 10 foreclosures. 11 12 On a related note, Mr. Finzell noted the number of people whose homes already may be paid 13 for, but due to the current economic situation, may find themselves falling behind in property 14 taxes; and the ability of the RLT to use non-government funds to assist them with those 15 property taxes; and Ramsey County funds to rehabilitate homes up to $25,000 on deferred 16 maintenance items for homeowners attempting to survive on limited incomes. Mr. Finzell 17 noted the success of the RLT in closing on a home in St. Paul with a mortgage they could not 18 afford, and the RLT’s negotiation of that mortgage to remove the original lender and get the 19 family into a GMAC program, and an ultimate contract for deed program, so in three (3) years, 20 that family could move into an affordable regular mortgage. Mr. Finzell noted another family 21 in St. Paul who currently had an interest-only mortgage that was soon coming due, and they 22 realized they would be unable to afford the regular mortgage; and while they recognized their 23 mistakes in the original funding options, Bremer Bank agreed to make them a thirty-year fixed 24 rate mortgage, and the previous lender was completely removed. 25 26 Mr. Finzell noted that each homeowner’s situation was different and unique and needed to be 27 handled accordingly. Mr. Finzell advised that the RLT was attempting to be more of an 28 advocate for families, and to make loan modifications going parallel with other financial 29 considerations and situation; and attempting to determine their eligibility for loan modification, 30 often with foreclosure processes moving forward and policy issues to deal with at the same 31 time as these negotiations. 32 33 Member Pust arrived at this time, approximately 6:05 pm 34 35 Mr. Finzell advised that the City of St. Paul had realigned funding so the RLT could access it 36 for some of the projects he’d described, projects that the RLT was unable to do in the past. 37 Mr. Finzell noted that the City of St. Paul’s concern was for the RLT to concentrate on vacant 38 and foreclosed homes in St. Paul, and the NSP funding was soon to expire. Mr. Finzell noted 39 that of 1400 estimated foreclosures in St. Paul, 914 of those were single family homes. Mr. 40 Finzell noted that, while the RLT has families to work with in the inner city, they planned 41 similar efforts in the suburbs, with efforts to keep people in their homes, not just attract new 42 families to home ownership. Due to credit and debt ratio issues in the past, Mr. Finzell noted 43 the difficulty in many of these families qualifying for mortgages, based on past poor decision- 44 making. Mr. Finzell advised that a positive was that credit and debt ratios were coming back 45 in line, and many of the unsavory mortgage agencies were out of the picture; allowing people 46 to work on their credit for qualifying for thirty-year fixed rate mortgages. 47 48 Housing Program Manager Kelsey asked Mr. Finzell to expound on the pilot program and 49 ultimate structure for the land trust to provide and maintain affordable housing in a 50 community. 51 52 Mr. Finzell briefly reviewed the pilot program already in place in the City of Shoreview and 53 North St. Paul, and the RLT’s interest in working with the City of Roseville’s HRA on a 54 similar pilot program in Roseville. 55