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. Rectifying the blighted conditions of the property is a priority for City Council as the client's home is exposed to the elements increasing the urgency of this matter. OCD staff recommend that City Council appropriate and approve Community Development Block Grant (CDBG) financial assistance for Clyde Sisson in the form of a non-recoverable grant not to exceed $10,000.00. The proposed rehabilitation work is eligible under the CDBG program guidelines. OCD staff also recommends that City Council approve a one-time waiver of the Housing Program guidelines.
A similar request will be submitted to the Urban County Executive Committee for discussion and action at the next scheduled meeting on September 22, 2009.
Staff
Sponsored by: Councilmember Teall
Prepared by: Damon E. Thompson, Operations Manager
Reviewed by: Mary Jo Callan, Community Development Director and Jayne Miller, Community Services Administrator
Body
Whereas, Correspondence was received in May 2009 from a concerned citizen informing City Council of structural issues with the home at 2065 Norfolk;
Whereas, 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 options for addressing the structural deficiencies;
Whereas, Rectifying the blighted conditions of the property is a priority for City Council as the client's home is exposed to the elements increasing the urgency of this matter; and
Whereas, OCD staff recommends that City Council appropriate and approve Community Development Block Grant (CDBG) financial assistance to Clyde Sisson in the form of a non-recoverable grant not to exceed $10,000.00, which is eligible under the CDBG program guidelines;
RESOLVED, That City Council approve a waiver of the OCD Housing Program Guidelines and approve Housing Rehabilitation Assistance with Clyde Sisson for the home at 2065 Norfolk in an amount not to exceed $10,000.00 in CDBG Funds as a non-recoverable grant;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute a Housing Rehabilitation Agreement with Clyde Sisson at 2065 Norfolk 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; and
RESOLVED, That the City Administrator, or his designee, be authorized to take necessary administrative actions and to execute any documents necessary to complete this transaction and to implement this resolution.
Sponsored by: Councilmember Teall