Title
Resolution to Approve Housing Rehabilitation Agreement with Gloria Trautz for 8 Metroview Court ($27,799.00 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to approve a Housing Rehabilitation Agreement with Gloria Trautz to complete rehabilitation assistance to her home at 8 Metroview Court.
This low income homeowner is confined to a wheelchair and initially applied for assistance from Community Development in October 2007 to correct the accessibility deficiencies with the property. The City will address the following rehabilitation work on this property: install a new exterior aluminum door, replace and re-hang gutter guards, dispose of the fence gate and install chain link fence, cut and remove tree and grind tree stump, rewire house to electrical code, install central air conditioning unit, install electronic automatic door opening system complete with opener and closer, dispose of defective electric wall oven and replace with electronic wall oven, install metal range hood in the kitchen, remove and dispose of existing kitchen flooring down to sub-floor, install a ceramic tile handicap accessible shower along with support bars and new tub surround, remove and dispose of existing ceramic bathroom floor tile, and increase existing attic insulation to R-38.
On September 25, 2008, the Office of Community Development received five (5) bids for this housing rehabilitation project. The lowest bid amount was submitted by J & S Properties, Incorporated with a base bid of $25,272, to which a 10% contingency of $2,527 was added, bringing the total amount to $27,799. The $27,799 in HOME funds will be provided in the form of a 5% simple interest, deferred payment loan to be repaid in full after 30 years or at the time the property changes ownership either by sale, gift, mortgage, land contract, conversion to rental property, inheritance or change of the use of the property from a single-family residence. The 5% simple interest will be forgiven after ten (10) years based on the terms and conditions of the security documents.
Community Development staff recommends that City Council approve the Housing Rehabilitation Agreement with Gloria Trautz in the amount of $27,799 in HOME funds as a 5% simple interest, deferred payment loan for improvements to her home at 8 Metroview Court.
Staff
Prepared by: Damon E. Thompson, Operations Manager
Reviewed by: Jayne Miller, Community Services Administrator
Mary Jo Callan, Community Development Director
Body
Whereas, An application was received from Gloria Trautz for housing rehabilitation assistance for her owner-occupied dwelling located at 8 Metroview Court;
Whereas, The homeowner meets the City's criteria for participation in the Housing Rehabilitation Program; and
Whereas, Five (5) bids were received on September 25, 2008, and Gloria Trautz will be executing an agreement with J & S Properties, Incorporated, the lowest responsible bidder, which received Human Rights approval on March 21, 2008 and meets the City's Living Wage Ordinance as of March 16, 2008, to complete the rehabilitation work;
RESOLVED, That City Council approve the Housing Rehabilitation Agreement with Gloria Trautz in the amount of $27,799 in HOME Funds as a 5% simple interest, deferred payment loan, to be repaid in full after 30 years or at the time the property changes ownership either by sale, gift, mortgage, land contract, conversion to rental property, inheritance, or change of the use of the property from a single-family residence with the 5% simple interest forgiven after ten (10) years based on the terms and conditions of the security documents;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute a Housing Rehabilitation Agreement with Gloria Trautz consistent with this resolution, subject to approval as to substance by the City Administrator and approval as to form by the City Attorney with funds to be available without regard to fiscal year;
RESOLVED, That as a condition of loan disbursement, Gloria Trautz will execute a mortgage and promissory note, subject to approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator, or his designee, is authorized to take necessary administrative actions and to execute any documents necessary to complete this transaction and to implement this resolution.