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90-418 ;�� ��� � ��,�� � � � . - , � council File ,� q0' y/ Green Sheet ,� RESOLUTION CITY OF SAINT PAUL, MINNESOTA ; � � Pre..sented By Referred To .�- f `,� � , Committee: Date �/✓��-f� WHEREAS, it is anticipated that approximately 200 single-family properties will be offered for sale in Saint Paul annually as a result of FHA-foreclosures; and WHEREAS, properties offered for sale by FHA are frequently poorly maintained; and WHEREAS, FHA does not have the capacity to rehabilitate the properties in a manner to maxiraize their resale value; and WHEREAS, FHA does not market properties in a manner which is supportive of neighborhood revitalization efforts; and WHEREAS, FHA frequently sells properties to owners who do not intend to occupy the property as their primary residence; and WHEREAS, unrealistic list prices for FHA properties result in properties remaining vacant for extended periods of time, often resulting in vandalism and further deterioration of value; and WHEREAS, the City has. an impressive record of using FHA-foreclosed properties in its Urban Homestead program; and WHEREAS, the City could, through the control of these properties, protect and enhance the value of these and surrounding properties and increase homeownership opportunities. Yeas Navs Absent Requested by Department of: zm n osw � — on cc ee e man une i son BY� Form Approved by City Attorney Adopted by Council: Date Adoption Certified by Council Secretary By: ,�j��_ �; ���,����f./`. By' Approved by Mayor for Submission to Approved by Mayor: Date Council By: By� ,� �, �-� �`��� �-� , , � ('ac��o - �l�� �j � NOW THEREFORE, BE IT RESOLVED: That the Administration be requested to assign staff from PED to develop -at�--i��mertt�et.�ibrr�l��i�having the City of Saint Paul assume the � responsibility for the disposition of all FHA-foreclosed single-family properties in Saint Paul. Such plan should be conducted with the following assumptions: 1) That FHA would assign the properties to the City under a custodial relationship, with the City assuming full responsibility for the management and sale of the properties. all properties would be 2) That/-�r�-Fri�.y�ootrh� rehabilitated ai3-prop��t,-ie� as necessary prior to listing them for sale. at market rates. 3) That upon sale of the property, the City would remit to FHA the sale price, less all expenses incurred by the City. 4) That the City would assume responsibility for expenses incurred in excess of the sales price. BE IT FUR�����$OLVED that the Administration present the implementation to the Housing and Economic Development Committee of the City Council by no later than April 25, 1990. ����'���-t�r�r-t��Tri�-�ci.zrrr-i�rl�,mrc�rr,err��ran-�r�. s�a��-�a€-�e�fe�s-��r��ge-�-e��es-3�r-����-i-e�- BE IT FURTHER RESOLVED that the City Council supports implementation of the new HUD pilot property disposition plan. Y�,t� a s Absent Requested by Department of: ron oswitz � �on acca ee �- e tman �- iuson �— By: Adopted by Council: Date MAR 2 0 t�� Form Approved by City Attorney Adoption Certified by Council Secretary By: �.l�i!/J-f/ ,j'�i ,C-C��(/'-z.� By' ���� °v �� APProved by Mayor for Submission to Approved by Mayor: Date MAR 2 i i990 Council gy; < d�i��'7j� By: PII�tISNED MHR 31 199Q �`II ---I�� Council File � �� Green Sheet # RESOLUTtON ------� CITY OF SAINT PAUL, MINNESOTA �� � Presented By ��e��� Referred To Committee: Date WHEREAS, it is anticipated that approximately 200 single-family . properties will be offered for sale in Saint Paul annually as a result of FHA-foreclosures; and WHEREAS, properties offered for sale by FHA are frequently poorly maintained; and WHEREAS, FHA does not have the capacity to rehabilitate the properties in a manner to maximize their resale value; and WHEREAS, FHA does not market properties in a manner which is supportive of neighborhood revitalization efforts; and WHEREAS, FHA frequently sells properties to owners who do not intend to occupy the property as their primary residence; and WHEREAS, unrealistic list prices for FHA properties result in properties remaining vacant for extended periods of time� often resulting in vandalism and further deterioration of value; and �- WHEREAS, the City has.an impressive record of using FHA-foreclosed properties in its Urban Homestead program; and � " WHEREAS, the City could, through the control of these properties', . protect and enhance the value of these and surrounding properties and increase � - ' homeownership opportunities. Yeas Navs Absent Requested by Department of:• zmon oswitz on acca ee ettman �ne i son BY� Adopted by Council: Date Form Approved by City Attorney Adoption Certified by Council Secretary gy: • BY= Approved by Mayor for Submission to Council '��Approved by Mayor: Date • By: By� � ' � �'v-�1 � � ��._ , � NOW THEREFORE, BE IT RESOLVED: • � �ry✓> � That the Administration b requested to assign staff from PED to develop ���leme�-�a�t-�oir--p�an for having the City of Saint Paul assume the - responsibility for the disposition of all FHA-foreclosed single-family properties in Saint Paul. Such plan should be conducted with the following assumptions: 1) That FHA would assign the properties to the City under a custodial ' relationship, with the City assuming full responsibility for the management and sale of the properties. �'JrK�.�i z,.�„�,...%Gz 2) That rehabilitate�'.�_��__r_____s as necessary prior ' � to listing them for sale� d�'.fl+-a�,fe��-�• 3) That upon sale of the property, the City would remit to FHA the sale price, less all expenses i.ncurred by the City. 4) That the City would assume responsibility for expenses incurred in excess of the sales price. BE IT FU��RESOLVED that the Administration present the implementatio to the Housing and Economic Development Committee of the City Council by no later than April 25, 1990. BE I��'�THER �RES ED that the . inistration impleme�t the p�an o�q a men smal umber o homes in ta t areas in t interim. , BE IT FURTHER RESOLVED that the City Council supports implementation of � the new HUD pilot property disposition plan. Yeas Navs Absent Requested by Department of: .zmon oswztz on —1 acca ee ettman une B : i son y � Form Approved by City Attorney Adopted by Council: Date Adoption Certified by Council Secretary gY: ``' BY� Approved by Mayor for Submission to � Council " Approved by Mayor: Date By: By� � �• � ��- 4�/� ;.. � BRIEFING PAPER FHA PROPERTY DISPOSITION RESOLUTION This resolution requests that the Administration assign staff to develop an implementation plan for the City to assume responsibility for the disposition � of all FHA-foreclosed single-family properties in the City of Saint Paul. The resolution requests that the implementation plan be completed by April 25, 1990, and that the Administration report back at that time. A very preliminary assessment of this proposal shows the following: - It is expected that the City would be responsible for an average of 200 housing units on an on-going basis. - It is estimated that 8 to 10 additional people (employed or under contract) would be needed to manage, maintain, supervise rehabilitation, and close on the sale of the properties. - Rough estimates show that typical holding and administrative costs will be $5300 per unit. - It is estimated that properties will require an average of $30,000 - rehabilitation per unit. - It is estimated that the City will need available funds totaling $5 million to carry and rehabilitate the properties, and �that such funds could potentially be raised through the sale of bonds. - It is estimated that the City could incur rehabilitation expenses in excess of resale value totaling $500,000 annually. - It is estimated that FHA would receive $3 million less, on an annual basis, than it does from its current disposition methods. - It is estimated that, because all properties would be rehabilitated� property tax values on properties sold would be $3 million higher on an annual basis. The implementation plan would focus on the following issues: - more precise estimates of holding a administrative costs - proposal on how a property disposition unit would be structured and managed - examination of potential funding sources - a cost/benefit analysis . � - " � � � �aa-��� BRIEFING PAPER FHA PROPERTY DISPOSITION RESOLUTION This resolution requests that the Administration assign staff to develop an implementation plan for the City to assume responsibility for the disposition of all FHA-foreclosed single-family properties in the City of Saint Paul. The resolution requests that the implementation plan be completed by April 25, 1990, and that the Administration report back at that time. A very preliminary assessment of this proposal shows the following: - It is expected that the City would be responsible for an average of 200 housing units on an on-going basis. - It is estimated that 8 to 10 additional people (employed or under contract) would be needed to manage, maintain, supervise rehabilitation, and close on the sale of the properties. - Rough estimates show that typical holding and administrative costs will be $5300 per unit. - It is estimated that properties will require an average of $30,000 rehabilitation per unit. - It is estimated that the City will need available funds totaling $5 million to carry and rehabilitate the properties, and that such funds could potentially be raised through the sale of bonds. - It is estimated that the City could incur rehabilitation expenses in excess of resale value totaling $500,000 annually. - It is estimated that FHA would receive $3 million less, on an annual basis, than it does from its current disposition methods. - It is estimated that, because all properties would be rehabilitated, property tax values on properties sold would be $3 million higher on an annual basis. The implementation plan would focus on the following issues: - more precise estimates of holding a administrative costs - proposal on how a property disposition unit would be structured and managed - examination of potential funding sources - a cost/benefit analysis .. � ` ` . , - � - . . �U-��� BRIEFING PAPER FHA PROPERTY DISPOSITION RESOLUTION This resolution requests that the Administration assign staff to develop an implementation plan for the City to assume responsibility for the disposition of all FHA-foreclosed single-family properties in the City of Saint Paul. The resolution requests that the implementation plan be completed by April 25, 1990, and that the Administration report back at that time. A very preliminary assessment of this proposal shows the following: - It is expected that the City would be responsible for an average of 200 housing units on an on-going basis. - It is estimated that 8 to 10 additional people (employed or under contrac�} would be needed to manage, maintain, supervise rehabilitation, and close on the sale of rhe properties. - Rough estimates show that typical holding and administrative costs will be $5300 per unit. - It is estimated that properties will require an average of $30,000 rehabilitation per unit. - It is estimated that the City will need available funds totaling $S million to carry and rehabilitate the properties, and that such funds could potentially be raised ttirough the sale of bonds. - It is estimated that the City could incur rehabilitation expenses in excess of resale value totaling $500,000 annually. - It is estimated that FHA would receive $3 million less, on an annual basis, than it does from its current disposition methods. - It is estimated that, because all properties would be rehabilitated, property tax values on properties sold would be $3 million higher on an annual basis. The implementation plan would focus on the following issues: - more precise estimates of holding a administrative costs - proposal on how a property disposition unit would be structured and managed - examination of potential funding sources - a cost/benefit analysis . . , . ��,�l �. HOUSING AND ECONOMIC DEVELOPMENT MARCH 14, 1990 PAGE TWO 7. Selby/Western Parking Lot Tentative Developer Status. COMMITTEE RECOMMENDED APPROVAL, TO GO TO THE FIILL HOUSING AND REDEVELOPMENT AUTHORITY FOR FINAL REVIEW, 4-0 8. Resolution 90-230 -- An ordinance amending Chapter 81 of the St. Paul Administrative Code pertaining to purchasing from Set Aside businesses (Referred to HED 2-13-90; Laid Over in Committee 2-28-90) . COMMITTEE RECOrIl�IENDED TWO-WEEK LAYOVER TO THE MARCH 28, 1990, HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE, 4-0 9. Resolution 90-222 -- Receiving documents collectively referred to as "Purchasing Policy Report ��1: An Evaluation of Saint Paul' s Set Aside Program" and making them an official part of the record of Council deliberations on Chapter 81 (Referred to HED 2-13-90; Laid Over in Committee 2-28-90) . COMMITTEE RECOI�IENDED TWO-WEEK LAYOVER TO THE MARCH 28, 1990, HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE, 4-0 r� ��._�..�.a.�._.s.�.s�=�. � 10. Resolution 90-418 -- HUD Property Disposition Plan:'p COMMITTEE RECOrIl�IENDED APPROVAL WITH AME:NDMENTS, 4-0 � � �-""�._. ,°' __� ; - -__ �,- 2 � o'� k • paii�qi���;A �: .�' CITY OF SAINT PAUL � '��� a�� � � F THE CITY COUNCIL OFFICE O CITY HALL-7th FLOOR- SAINT PAUL,MINNESOTA 55102 . .. 612-298- 5506 TOM DIMOND Me�,eLS; COUNCILMEMBER =om u�mond, cha�r Dave Thune, Vice-Chair Paula Maccabee Date: March 14, 1990 ������� COMMITTEE REPORT ������ HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE - �.:i S�: �.�i,.��:,� 1. Approval of the Minutes of the February 28, 1990, Housing and Economic Development Committee meeting. COMMITTEE RECOt�R�IENDED APPROVAL, 4-0 2. Business Item -- Change in Meeting Time for Committee. COMMITTEE RECOI�Il�iENDED STARTING TIME REMAIN AT 2:00 P.M. 3. Arts Development Loan Program. COMMITTEE RECOMMENDED APPROVAL, 4-0 4. 730 North Fairview Avenue -- Request for Analysis and Recommendation Respecting Remedial Action (Laid Over in Committee 2-28-90) . COMMITTEE RECOMMENDED THAT THE CITY BE DIRECTED TO SOLICIT INTEREST FROM POTENTIAL DEVELOPERS, INCLUDING NON-PROFIT DEVELOPERS, FOR THE DEVELOPMENT OF THIS SITE AND TO INCLUDE IN THAT SOLICITATION A TIMELINE OF 60 DAYS IN WHICH THAT INTEREST HAS TO BE SHOWN AND THE CITY WORK WITH THE NON-PROFIT DEVELOPERS TO PROVIDE TECHNICAL ASSISTANCE; IF NO PROPOSAL HAS BEEN MADE IN 60 DAYS, OPTIONS 1, 2 & 3 WILL BE CONSIDERED WHICH COULD DEMOLISH THE BUILDING AND GAIN CONTROL OF THE SITE; APPROVED, 4-0 5. Resolution 90-353 -- Authorizing and ratifying execution by Minneapolis/St. Paul Housing Finance Board of Amendment No. 2 to the grant agreement with the Minnesota Housing Finance Agency relating to certain Exxon Oil overcharge : funds (Referred to HED 3-8-90) . - COMMITTEE RECO1rIl�lENDED APPROVAL� 4-0 6. Arundel Street Vacation. COMMITTEE RECOMMENDED TWO-WEEK LAYOVER TO THE MARCH 28, 1990, HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE, 4-0 - Chair, Housing and Redevelopment Authority, Committees: Public Works; Housing and Economic Development; Finance. �6�5 100%Recycleable �� � �� � !i� /,� � Council File � q�� ��� 1 \ t.� ? 1 �� ! 1 3_._. . - Green Sheet � RESOLUTION �� CITY OF SAINT PAUL, MINNESOTA : � � Presented By j/ferred To � ./!�!C-st/, � CO �c� . ��u.�' Committee: Date �"/.�'�l� � WHEREAS, it is anticipated that approximately 200 single-family properties will be offered for sale in Saint Paul annually as a xesult of FHA-foreclosures; and WHEREAS� properties offered for sale by FHA are frequently poorly maintained; and WHEREAS, FHA does not have the capacity to rehabilitate the properties in a manner to maximize their resale value; and WHEREAS, FHA does not market properties in a manner which is supportive of neighborhood revitalization efforts; and WHEREAS� FHA frequently sells properties to owners who do not intend to occupy the property as their primary residence; and , WHEREAS, unrealistic list prices for FHA properties result in properties remaining vacant for extended periods of time, often resulting in vandalism ; and further deterioration of value; and � WHEREAS� the City has. an impressive record of using FHA-foreclosed � properties in its Urban Homestead program; and : � WHEREAS, the City could, through the control of these properties� � i protect and enhance the value of these and surrounding properties and increase :� homeownership opportunities. i � ,� � '.i ,j :� i Yeas Nays Absent Requested by Department of:� .; imon •� oswitz ; on acca ee ettman �' un e ' i son BY� `� ,.� Form Approved by City Attorney 't± Adopted by Council: Date • ' Adoption Certified by Council Secretary gy; �%«_ /a: `1/Vl,(�,s��/c_ ;�: �� By: Approved by Mayor for Submission to Council � ,-� Approved by Mayor: Date ' By: By: . 4 . .. �qa-�r�� w r �• . BRIEFING PAPER FHA PROPERTY DISPOSITION RESOLUTION This resolution requests that the Administration assign staff to develop an implementation plan for the City to assume responsibility for the disposition of all FHA-foreclosed single-family properties in the City of Saint Paul. The resolution requests that the implementation plan be completed by April 25, 1990, and that the Administration report back at that time. A very preliminary assessment of this proposal shows the following: - It is expected that the City would be responsible for an average of 200 housing units on an on-going basis. - It is estimated that 8 to 10 additional people (employed or under contract) would be neeaed to manage, maintain, supervise r�habilitatian, and close on tne sale of the properties. - Rough estimates show that typical holding and administrative costs will be $5300 per unit. - It is estimated that properties will.require an average of $30,000 rehabilitation per unit. - It is estimated that the City will need available funds totaling.$5 million to carry ar.d rehabilitate the properties, and that such funds could potentially be raised through the sale of bonds. - It is estimated that the City could incur rehabilitation expenses in excess of resale value totaling $500,000 annually. - It is estimated that FHA would receive $3 million less, on an annual basis, than it does from its current disposition methods. - It is estimated that, because all properties would be rehabilitated, property tax values on properties sold would be $3 million higher on an annual basis. The implementation plan would focus on the following issues: - more precise estimates of holding a administrative costs - proposal on how a property disposition unit would be structured and " managed - examination of potential funding sources - a cost/benefit analysis � - . - � �� �a-��� �,: C� . � NO�d THEREFORE, BE IT RESOLVED: - ����� That the Administration b requested to assign staff from PED to develop � for having the City of Saint Paul assume the • responsibility for the disposition of all FHA-foreclosed single-family properties in Saint Paul. Such plan should be conducted with the following � assumptions: 1) That FHA would assign the properties to the City under a custodial � relationship, with the City assuming full responsibility for the management and sale of the properties. �t,I,�j�+�ch/J�e.��./� � 2) That� rehabilitate�??�r+�+- " s as necessary prior . r- r��_�... to listing them for sale� �d`�+-w,E�'�- 3) That upon sale of the property, the City would remit to FHA the sale price, less all expensas i.ncurred by the City. 4) That the City would assume responsibility for expenses incurred in excess of the sales price. BE IT FURTHER RESOLVED that the Administration present the implementation plan to the Housing and Economic Development Committee of = • the City Council by no later than April 25, 1990. i -� ��: BE IT FURTHER �RESOLVED that the Administration implement the plan on a small number of homes in target areas in the interim. �� ' � BE IT FURTHER RESOLVED that the City Council supports implementation of • the new HUD pilot property disposition plan. � Yeas Navs Absent Requested by Department of: imon oswitz on � acca ee ettman une i son BY� Adopted by Council: Date � Form Approved by City Attorney Adoption Certified by Councii Secretary By: ( By' Approved by Mayor for Submission to � __ Council Approved by Hayor: Date By: By'