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277326 WHITE + - CITY CLERK ����� PIKK - FINANCE �T COURCII •vANARY - DEPARTMENT G I TY OF SA I NT �� V L BLUE - MAYOR ' City Attny/SDM File N . C cil Resolution Presented By � Referred To Committee: Date Out of Committee By Date RESOLUTION AUTHORIZING CERTI�TN AMENDI�ENTS TO THE SELECTTVE CLEARANCE PROGRAM' S GUIDELTNES WHEREAS, the Council of the City of Saint Pau1. da.d originally approve and adopt guidelines for the Selective Clearance Progxam on October 13, 1977 by Resolution #269909; and WHEREAS, the purpose of the Selective Clearance Program i.s to supplement the Saint Pau1 Rehabilitation Loan and Grant Progr�m providing an alternative to rehabila.tation of building in the loan and grant processing stage which are determined to be structurally substandard and infeasible to rehabilitate due to minimal origin�l construction and the effects of age, deterioration and lack of proper maintenance; and WHEREAS, staff of the City of Saint Paul's Department of Planning and Economic Development and staff of the Housing and Redevelopment Authority of Saint Paul, Minnesota, (HRA) who have been involved with the implementation of this program have dis- cussed problems and concerns encountered to date. As a result of these efforts, staff is proposing certaa,n changes in the City of Saint Paul Selective Clearance Program Reva.sed Guidelines dated August 27, 1979, in order to meet changing circumstances, including the cost increase for purchasing, building and rehab- ilitating a home, as well as permitting greater flexibility �n program administration; and WHEREAS, the Mayor's Rehabilitation Advisory Committee, at their April 27, 1981 meeting reviewed and approved the proposed changes; and COUNCILMEN Yeas Nays Requestgd by Department of: Hunt T �� Levine In Favor Maddox McMahon snoweite� - __ Against BY Tedesco Wilson Form Approved by City Attorney Adopted by Council: Date — Certified Passed by Counci9 Secretary BY By `_ Approved'hy ;Navor. Date _ App e by Mayor for m 'or»to Council � By: — BY WHITE - CITY CLERK ����� PINK � - FINANCE n FA�:WARY - DEPARTMENT G I T Y O F S A I N T 1 �u L COUflC1I BLUE - MAYOR File N O. Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -2- WHEREAS, the HRA at their August 13, 1981 meeting reviewed and approved the proposed changes. NOW THEREFORE, BE IT RESOLVED, that the proposed changes as recommended are hereby -approved and the document entitled City of Saint Paul Selective Clearance Program Revised Guidelines (August 27, 1981) which incorporates said changes is hereby approved and adopted. COUNCILMEN Requestgd by Department oE: Yeas Nays ��� Hunt Levine In Favor Maddox sr o,�,eite � __ Against By Tedesco �� AUG 2 7 1981 Form Approved City orne Adopted by Council: Date — � Certified � ssed b ouncil cre y BY r ' � By _ � Approved r: ate �_ Ap o by Mayor f Council By - - PuB�iSxEO S E P 5198t � � August 27, 1981 . IG /�tJ�U CITY OF SAINT PAUL SELECTIVE CLEARANCE PROGRAM REVISED GUIDELINES A Program utilizing Code Enforcement/Relocation/Demolition to supple- ment the City-Wide Rehabilitation Program consistent with the Residential Improvement Strategy of the City of Saint Paul. I. PURPOSE: To supplement the St. Paul Rehabilitation Loan and Grant Program by providing an alternative to rehabilitation of buildings in loan and grant processing which are determined to be structurally substandard and infeasible to rehabil- itate due to minimal original construction and the effects of age, deterioration and lack of proper maintenance. II. OBJECTIVES: 1. To provide relocation assistance to Rehabilitation Loan and Grant applicants when their structures are determined to be infeasible to rehabilitate and structurally substandard. 2. To demolish substandard and infeasible structures. 3. To provide immediate ].and re-use by present owners whenever poss�.ble. 4. To avoid acquisition and �va1 of land from the tax rolls. III. CONTENT AND OPERATION: l. Eligibility w�.11 be restricted to City-Wide Rehabil- itation Loan and Grant applicants who meet the following criteria: a. Must be owner occupants of 1 or 2 family dwellings a minimum of 3 years prior to the date of application for rehabilitation. � � � � ���� � � . -2- b. Must execute an agreement to rebuild whenever feasible or have a letter of intent from a developer to rebuild within one year from the date of placarding, or be recommended for ex- clusion from this requirement in accordance with the criteria in Section 3 . below. c. Must have an annual income consistent with the St. Paul Rehabilitation Loan Program. d. Must be credit worthy regarding financing of replacement housing. 2. Eligibility will be restricted to those dwellings which meet the following criteria: a. Must be structurally substandard in the . opinion of .the City of St. Paul, Department of Community Services, Housing and Building Codes Division, and therefore not suitable for the Urban Homestead Program. b. Must be infeasible to rehabilitate utilizing all available rehabilitation programs as deter- mined by the Rehabilitation Section of the Hous%ng Division of the Department of Planning and Economic Development. c. Must be determined to be structurally substandard and infeasible to rehabilitate by an independent fee appraiser. The cost of the appraiser will be an eligible program expenc�iture. d. Must have an appraised"as is"value of $15,000 or less (exclusive of land) for a single-family dwelling or $20,000 or less (exclusive of land) for a two family dwelling. e. Must be listed on the Rehabilitation Refusal List established by the Refusal Policy as adopted by City Council Resolution. Y � . ��3�6 -3- 3 . The following policies will be applicable to re-use determinations: a. Improvement III Areas: Properties are eligible only if located in an approved ITA, and w�11 be either redeveloped for residential re-use within 12 months, where suitability for such re-use is clearly determined, or the lot is contiguous to a programmed acqui- sition or site assembly areas which is scheduled for implementation within 12 months from the date of placarding. Properties not within an approved TTA are eligible if: (1) the lot wi11 be redeveloped � for resident reuse within 12 months, or be developed in conjunction with other programmed site acquisition; and (2) a finda,ng can be made on the basis of existing City and/or District Plans and housing conditions in the immediate vicinity of the pzoperty, that the proposed re-use o� the property is clear7,y appropriate. b. Improvement II Areas: Properties within an approved ITA are eligible if the lot is to be redeveloped for residential re-use within 12 months, or to be developed in conjunction with other programmed site acquisition, or the lot cannot be redeveloped due to zoning limitations. Properties not within an approved ITA are eligible only if the lot will be redeveloped within 12 months and suitability for such re-use is clearly determined through the extent of rehab activity within the block, or to be developed in conjunction with other programmed acquisition. ► ' IGr I ��e�V -4- c. Improvement I Areas: Properties within an approved ITA are eligible if the lot is to be redeveloped for residential re- use within 12 months, or to be developed in con- junction with other programmed site acquisition, or the lot cannot be redeveloped due to zoning limitations. Properties not in an ITA are eligible if the lot will be redeveloped within 12 months, or to be developed in conjunction with other programmed acquisition. d. Conservation I and II Areas: Properties within an approved ITA are eligible if the lot' is to be redeveloped for residential re-use within 12 months, or to be developed in conjunction with other programmed site acquisition, or the lot cannot be redeveloped due to zoning limitations. Properties not in an ITA are eligible if the lot will be redeveloped within 12 months, or to be developed in conjunction with other programmed acquisition. e. In order to insure that a lot remains available, which has been approved as part of a site assembly or other acquisition program, an option agreement may be executed between the City and the homeowner reserving the lot for future development for a period of 18 months . An additional supplementary grant may be provided, pursuant to Section IV. l.a. , 2. in lieu of the purchase price of the lot. Any proceeds from the eventual sale of the lot for redevelopment would be used to reimburse the City for the supplementary grant, to the extent possible. � ' . �G► � ��rG� -5- NOTE: In conformance with the intent of Council Resolution 272713, adopted March 27, 1979, criteria applicable to ITA' s will also be applicable to target improvement areas in the Merriam Park Neighborhood Housing Service (NHS) Program area in District 13, the West Side NHS Program area in District 3, and the Dayton's Bluff NHS Program area in District 4. The same criteria will be applicable to any additional neighborhood areas in the City for which a NHS program is formally established with the approval and participation of the City. IV. FUNDING: 1. Relocation benefits shall be governed by the Uniform Relocation Act. - a. Applicants .who fulfill the program eligibility criteria and purchase/rebuild their replacement dwelling shall be eligible for relocation benefits entitled to "180-day homeowner occupants" under the Uniform Relocation Act. - b. Applicants who fulfill the program eligi.bility criteria and rent their replacement dwelling � shall be eligi.ble for relocation benefits entitled to "tenants" under the Uniform Relocation Act. 2 . In addition to the above referenced relocation benefits, supplementary grant or deferred loan assistance may be paid for expenses related to the provision of replace- ment housing for those Selective Clearance participants who either purchase, rebuild or rent their replacement dwelling. Such expenses may include, but are not limited to: cost of demolition, existing mortgage or contract for deed pay-off, replacement of utility lines, payments to secure option agreement pursuant to Section III. 3 . e. and such other assistance as may be determined necessary to obtain replacement housing. Total supple- mentary grant or deferred loan assistance may not exceed 1 , , - � � ���t.j�� -6- $15,000. The Selective Clearance Project Manager and Relocation Specialist of P.E.D. will analyze the financial resources and needs of the applicant on a case-by-case basis to determine the amount, if any, of supplemental grant or deferred loan assistance the applicant would be eligible for. a. Selective Clearance participants who purchase or rebuild their replacement dwelling may be eligible for a portion or all of the deferred loan assistance. The deferred loan is a zero percent (0�) interest loan. If the replacement dwelling is sold or transferred within ten (10) years of the date of the deferred loan, the entire amount of the loan must be repaid at the time of sale or transfer. If the replace- ment dwelling is sold or transferred after ten (10) years of the date of the deferred loan, the entire amount of the loan is forgiven and the owner shall have no obligation to repay the deferred loan or any portion thereof. i Recipients may appeal to the Mayor' s Advisory Committee for a waiver or extension of repayment obligations . ii The Deferred Loan must be secured by recording a lien on the property. b. Selective Clearance participants who rent their replacement dwelling may be eligible for any or all of the supplementary grant assistance. The Selective Clearance participant shall have no obligation to repay the supplementary grant assistance. � � � � i . - . ��t��� -7- 3. The Department of P.E.D. shall disburse all funds after all the above criteria have been met. 4. The maximum number of eligible properties shall be limited to available funding. V. SELECTION PROCESS: 1. All properties listed on the Refusal List will be processed through this program on a first come first served basis, except that priority shall be given to structures with Rehabilitation Loan and Grant applications in process in areas designated Improvement III, II, and I, and Conser- vation II and I Areas in that order. 2. All properties to be included in this program must be reviewed and recommended by the appropriate District Council and P.E.D. District Planner for conformance with the District Housing Plan, the City's Comprehensive Plan, and the Residential Improvement Strategy guidelines; and approved by the Housing Division Director of P.E.D. 3. Any suspension or waiver of these guidelines must be approved by the HRA Board of Commissioners. ti ^ , �� � IX�1 Ol: 12/197� Rev. : /8/76 Rev. : /7/8p � EXPLANATIt�I 4f R�MI�l�STRI�TI� ORDE`R�, Rev. : /3(�/81, � RESOLUTIt)MS� ANQ`t�Rt1l:t�l�#10ES REC�I'��'(� nate: ���u�t 20, igsi AUG Z 01981 : f�lr��°"^�� ��� +���� . T0: Mayor George Latimer . n,�' . FROM; Mary Br�u, Pro�ect Management Teehnician � Ccu.s� ���— RE: ATTACHED COUNCIL RESOLUTION � � � �� �--� � ACTI�+1 REQUESTED: _ Your approval (signature) of the �tt�ched resolution an�ending tt�e Selective ;C1ea a�nce � Program Guid�lines for submission to Council . � � Pt1RPf�5E ANO RA'FIfNIALE FOR TNIS ACTIQN: To n�et ct�anging circumstances, including the cost increase for purcMasing, buil ing and rehabilit�ting a home, as well as permitting greater flexibility in the �dmi is- tration of:�the Sele�tive Clearance Program. , � ' `;'. F���� F�: ' This dction does not change the Selective Clearance budget a�mount. AfiTACI#tENTS: .rev�sed Resol ution and ���d guidel i nes