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HRA Meeting Minutes – Tuesday, January 17, 2012 Page 10 1 property at 2325 Dale Street (HF0117), and provide that additional research and 2 information to the February meeting of the HRA. 3 4 Ayes: 7 5 Nays: 0 6 Motion carried. 7 8 f.2941 Rice Street 9 Ms. Kelsey advised that Mr. Munson and she had inspected this property the previous week to 10 ascertain the quality of the structure, given previous code deficiencies cited at this property 11 based on current building code requirements, of approximately $20,000 for exterior repairs. 12 As detailed in the staff report dated January 17, 2012, Ms. Kelsey noted that the City Council 13 authorized abatement of the property in June of 2011 in tearing down the garage, with several 14 other code issues remaining, in addition to questioning the structure’s condition; as well as the 15 property having been cited and an abatement process by the City Council in 2003. Ms. Kelsey 16 advised that staff had noticed HUD of the pending assessment. 17 18 Ms. Kelsey noted that, prior to the existence of the HRA, it had been past practice for the City 19 to purchase properties of this nature, demolish the homes, and market the property for the 20 construction of new homes for first-time homebuyers. Ms. Kelsey advised that this was 21 possible through the City obtaining funds through the GMAC for first time homebuyers. Ms. 22 Kelsey suggested that the HRA may wish to authorize purchase of the property for potential 23 repurposing. 24 25 In analyzing the existing home, Ms. Kelsey advised that it was a 1920 farm house with those 26 typical amenities, and while the structure appeared sound, other than a slightly updated 27 kitchen, its design limited reinvestment and rehabilitation by a new owner. Ms. Kelsey 28 advised that the building department was concerned that the home would be purchased and 29 turned into a rental property, with current code deficiencies continuing. Ms. Kelsey reviewed 30 immediate problems, advising that at a minimum, both the front and back porches needing 31 removal and completion of roof repairs. Ms. Kelsey advised that it was the recommendation 32 of Mr. Munson that the HRA should purchase and demolish the existing home, making the lot 33 available for new construction. 34 35 Mr. Trudgeon advised that staff thought the City was challenged in performing this abatement, 36 based on concerns that the City could recoup its investment, and the challenges of being 37 successful in assessing the costs on property taxes, since it was a HUD property. Mr. 38 Trudgeon advised that, according to HUD representatives, the listing price for the property was 39 $69,000.00. 40 41 Ms. Kelsey advised that HUD was open to an offer, but may not be willing to negotiate. 42 43 Chair Maschka suggested offering HUD $50,000 for the property. 44 45 Ms. Kelsey advised that, it was customary for HUD, after six (6) months of active marketing in 46 the community of a property without any viable buyers or negotiated offers, HUD could 47 approach the City to purchase the property for $1.00. However, she questioned if this practice 48 would be amenable to HUD in this circumstance. Ms. Kelsey reiterated code staff’s concerns 49 that this property would turn into a rental property. 50 51 At the request of Chair Maschka on the viability of repurposing this Rice Street parcel, Ms. 52 Kelsey advised that the property to its immediate north was well-maintained, with substantial 53 capital improvements completed, creating a beautiful property owned by older residents, and in 54 an area of standard rambler designs. Ms. Kelsey noted that the value of this property was that