2007-04-17_Minutes - Laserfiche WebLink

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Member Masche wondered if the RHRA could resell the property at an affordable price if it accepted the right of first refusal. Ms. Bennett replied that the property would once again need to be written down to arrive at an affordable price which she thought would be around $209,000.00, according to Metropolitan Council guidelines. Member Kelsey surmised that if that were the case, the RHRA would need to come up with another $90,000.00. Mr. Stark informed the members that if the RHRA accepts the right of first refusal, another appraisal may be done on the property. That appraisal may be lower than the homeowner’s initial appraisal and therefore reduce the home’s asking price. Chair Majerus noted that this was a learning experience and going forward, some changes may need to be implemented to capture more appreciation value from these projects. Member Pust shared her concerns that the RHRA create revolving affordable housing versus one-time opportunities. Ms Bennett agreed with Member Kelsey that shared appreciation may be a way to achieve continued affordability. Member Kelsey wondered if the homeowner would be willing place the RHRA on his “protect list”. This would allow the RHRA to purchase the home directly from the homeowner. Without a real estate agent involved in the sale and therefore receiving approximately 7% in fees, the homeowner could reduce his asking price. This would allow the RHRA to reconsider the purchase of the home if the price drops significantly. Mr. Stark suggested writing a response to the homeowner that would indicate the willingness of the RHRA to reconsider the right of first refusal should the asking price change. Member Kelsey added that the RHRA, if it does purchase the home, ask the homeowner to agree to reduce the price as the services of a real estate agent (and their fee) would be waived. Member Kelsey also suggested that staff research additional sources of state and county funding if the RHRA decides to purchase the home to make it a permanent affordable property in the city of Roseville. Motion: Member Pust moved, seconded by Member Maschka, to decline making a purchase offer on 1487 Applewood Court at the existing asking price of $348,500.00 and the RHRA requests, if the homeowner lists the property with a real estate agent, that the RHRA be designated under the “protect list”. Furthermore, the RHRA may reconsider making an offer at a later time and that any such offer should reflect that realtor fees are not included. Furthermore, staff will research state, county, and any remaining restricted funding that can be applied toward the purchase of the property 1487 Applewood Court. Chair Majerus wanted the minutes to reflect that, based upon what had been learned at this meeting, the RHRA will consider providing for shared appreciation on future contracts. Ayes: 6 Nays: 0 Motion carried. 3