2007-11-20_Agenda - Laserfiche WebLink

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8. Action Items: a. Consider Price Modification for Senior H ousing Regeneration Program Home at 1000 Woodhill Ave. Mr. Darrow summarized the item fo r consideration noting that the home at 1000 Woodhill Ave. has been on the market for 160 days which has increased carrying costs as well as the amount of gap funding. Mr. Darrow explained that Paul Si gurdson, the realtor for the Greater Metropolitan Housing Corporation (GMHC), is suggesting a price reduction to $218,000 which would bring the property more in line with others on the ma rket. Since the reduction would increase the total gap beyond what is available for the program by $1,123, Mr. Darrow introduced three options for the HRA to consider: reduce the asking price and provide an additional $1,123 to the program from other HRA funding sources, reduce the asking price and rely only on the GMHC realtor to sell the home and remove the home from the Mu ltiple Listing Service (MLS), or reduce the asking price and require that the first mortgage amount be increased from $175,000 to $185,000. Mr. Darrow introduced the GMHC realtor, Paul Sigurdson to the board. Member Kelsey wondered about the marketing plan of the prope rty if the property was removed from the MLS and marketed only through the GMHC. Mr. Sigurdson explained that GMHC has a network of loan officers which can typically provide a pool of homebuyers. Mr. Sigurdson indicated that there had been homebuyers interested in the home but they failed to obtain a mortgage due to financial issues. Member Kelsey expressed concer ns over the current marketing of the property in terms of inaccurate information in the listing. Mr. Sigurdson indicated that comparable properties (those without the restrictions created by the program criteria) are being sold. Member Pust indicated that she would not be amenable to waiving the program criteria requiring that the home be sold to a household with one member under the age of sixteen. Member Kelsey inquired about Ramsey County home buying programs. Mr. Sigurdson indicated that homebuyers are elig ible for additional funding from Ramsey County if they have been employed in Ramsey County for three years. Mr. Sigurdson noted that a price reduction w as approved for a SHRP home on Lovell Ave, and that home sold a few weeks after the reduction. Member Masche wondered if a market analysis was completed by GMHC (yes). Member Kelsey expressed concerns over the market analysis presented to the board. Member Kelsey also expr essed her opinion that the listing should be kept on the MLS to reach as many buyers as possible. Member Masche opined that he would be reluctant to drop the home from the MLS without knowing the specific marketing plan for the home to be utilized by GMHC. Member Kelsey wondered about the carrying costs of the property every month. Mr. Darrow noted that Carolyn Olson from GMHC would be bett er able to answer that question; however she was unable to attend the meeting. The board members discussed tabling the motion until next month’s meeting to access the accuracy of the home’s listing and to allow staff to gather more information The board members agreed to k eep the home listed on the MLS and leave the program criteria in place. Motion: Member Majerus moved, seconded by Member Pust, to table action on the property at 1000 Woodhill Ave. until the next month’s meeting. Ayes: 7 Nays: 0 Motion carried.