2010-11-16_Minutes - Laserfiche WebLink

Home

HRA Meeting Minutes – Tuesday, November 16, 2010 Page 8 their elevator would only serve to further decrease the value of the property. Member Maschke expressed his support for the HRA having had sufficient dialogue and established criteria prior to additional HIA or other requests coming forward, to provide a consistent review and rating for those requests., in addition to an available list of funding sources, including private banks. Member Maschke suggested that perhaps the HRA should serve in the role of facilitator between banks and one or more applicants, providing assistance to them I preparing documents and necessary approvals, making the bank more willing to look at requests as business loans rather than as housing loan requests. Member Maschke suggested potential workshops or educational opportunities hosted by the HRA for associations and multi-family complexes in the community. Ms. Kelsey noted staff’s attempt to serve as a facilitator between the bank and Westwood Village II, but the term of the loan couldn’t equal the amortization because of the balloon payment not allowing for enough interest upfront; creating the need for the project to proceed as an HIA and fully amortized for the bid process. Ms. Kelsey opined that, given current market place terms, similar rejections would occur. Chair Maschka noted that the LJA was a classic example of twenty-three (23) units being too small and unable to get private financing; and suggested the HRA might research similar associations and/or complexes in the community, with consideration of bundling them to achieve economies of scale for private financing and/or using the HRA’s bonding authority. Member Pust questioned the delay in the LJA not yet increasing their monthly association fees to ensure long-term viability of the complex through sufficient reserves. Ms. Kelsey advised that they had recognized the problem and were in process to resolve the issues; and that as part of the development of the legally-required financial plan and study of long-term capital improvement needs, those documents would serve to educate all unit owners in the building of their responsibilities as property owners for the long-term investment in their property. Chair Masche concurred, opining that the owners, and/or self-managed association had been in denial until the elevator’s code compliance issue became a reality. Ms. Kelsey clarified that recent State Building Code and local ordinance revisions had prompted the elevator’s noncompliance. Member Masche noted multiple complicities that occurred in an association environment, multiplied by a number of unit owners and a board of directors making choices to continue deferring maintenance issues Member Lee noted the need for recognition by the HRA of those associations who actively maintained their reserves, and the potential negative message when they perceived special favors upon those not having sufficient forethought in maintaining those reserves, and likened it to negative perceptions with the recent government “bail out” programs. Chair Maschka opined that self-managed associations were notorious for ending up in these situations, as a result of human nature. Member Pust, returning to additional items for the 2011 RHRA Work Plan, suggested the need to continue incorporating and promoting the message for the community to be better students of the environment. Member Masche opined that the Neighborhood Enhancement Program (NEP) had been a great success for the community as a whole, in addition to providing great credibility and visibility