Title
Resolution to Approve Housing Rehabilitation Assistance Agreement for Clyde Sisson at 2065 Norfolk (Not to Exceed $10,000.00 CDBG Funds)
Memorandum
Attached for your review and action is a resolution to approve Housing Rehabilitation Assistance to complete rehabilitation assistance to address blight and safety concerns with the home at 2065 Norfolk owned by Clyde Sisson.
In May 2009, correspondence was received from a concerned citizen informing City Council of the structural issues with the home at 2065 Norfolk including but not limited to damage to the front soffit and visible deterioration of the roof. Staff from the Office of Community Development (OCD) and Planning and Development Services were asked to coordinate an inspection of the property and discuss financial assistance options for addressing the structural deficiencies. An initial inspection of the property was completed on May 7, 2009. Based on the information collected during the pre-assessment, OCD staff scheduled an intake appointment to determine the client’s eligibility for a deferred loan through the owner-occupied housing rehabilitation program. Prior to the intake appointment, OCD staff submitted a request for a title search to confirm ownership of the property. Upon reviewing the title search, it was discovered that the client had executed a reverse mortgage on the property. As stated in the OCD Housing Guidelines, recipients of a reverse mortgage are not eligible for financial assistance because the reverse mortgage releases all of the home equity out of the property as a lump sum or multiple payments. The reverse mortgage releases the equity needed to secure the mortgage and note recorded on the property as a condition of financial assistance through OCD. An ineligibility notice was mailed to the client in June 2009.
In August 2009, OCD and Planning and Development Services staff reconvened to examine cost-effective options for addressing the deficiencies with the property...
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