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265945 WH17E - CITY CLERK 1 /V�y�� PINK - FINANCE COl1TlC11 �t �✓ BLUE:RY._- MAYORTM� GITY OF SAINT PAITL File NO. � ouncil e lu ' n � Presented By ` , Referre{d To ommittee: Date Out of Committee By Date RESOLUTION DESIGNATING THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA AS THE ENTITY � EMPOWERED TO CARRY OUT AN URBAN HOMESTEADING PROGRAM IN THE CITY OF SAINT PAUL, MINNESOTA WHEREAS, Section 810 (a) of the Housing and Community Development Act of 1974 authorizes the Secretary of the Department of Housing and Urban Development to transfer without payment to a unit of general local govern- ment or a state or public agency designated by a unit of general local government or a state, certain real property suitable for use in an urban homestead program which meets the requirements of Section 810 (b) of said Act; and WHEREAS, the Secretary of the Department of Housing and Urban Devel- opment has invited the City of Saint Paul to participate in its Urban Homesteading Demonstration implementing the urban homesteading provisions of Section 810 (b) of the Housing and Community Development Act of 1974; and WHEREAS, the Secretary o£ the Department of Housing and Urban Devel- opment has requested the City to submit an Application by August 29 , 1975 if the City desires to participate in said Urban Homesteading Demonstration which Application must include a homesteading plan approvable by the Secretary and certain other documentation; and WHEREAS, the Council of the City of Saint Paul desires to participate in the Urban Homesteading Demonstration and to therefore designate an appropriate local entity to be responsible for administering an urban homesteading program and for submitting an Application to participate in the Urban Homesteading Demonstration on behalf of the City of Saint Paul, Minnesota; and COUNCILMEN Requested by Department of: Yeas Nays Hunt Konopatzki In Favor Levine Meredith Against BY Sprafka Tedesco Mme.President Butler Form Approve y C y Att ey Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by Mayor: Date Approved�by M r for Submission to Gouncil By BY WH17E - CITY CLERK 2�5945 PINK - FINANCE GITY OF SAINT PAUL . Council �, CANARY - DEPARTM'�NT BLUF� - MAYOR File NO. � - Council Resolution � � Presented By Referred To Committee: Date Out of Committee By Date -2- WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota is a public body corporate and politic, duly organized pursuant to the provisions of the Municipal Housing and Redevelopment Act, 1974 Minnesota Statutes �462.411 et seq. , and having all the powers necessary or convenient to carry out the purposes of said Municipal Housing and Redevelopment Act including the following powers : (a) To accept from the Secretary of the Department of Housing and Urban Development the transfer without payment of any real property within the City of Saint Paul to which the Secretary holds title, the statutory source of said power being 1974 Minnesota Statutes �462.445, Subd. 1 (6) and (7) ; (b) To conditionally convey unoccupied residential property to an individual or a fam�.ly without any substantial consideration, the statutory sou�ce of said power being 1974 Minnesota Statutes �462:525, Sub�. �9, and �462.445, Subd. 1 (5) ; and (c) To assist in or undertake the financing of the rehabilitation of real property conveyed to persons selected as homesteaders pursuant to the provisions of a local homesteading plan, the statutory source of said power being 1974 Minnesota Statutes �462. 525, Subd. 1; and WHEREAS, the Housing and Redevelopment Authority of the City of Saint Pau1, Minnesota, by its Resolution No. 75-8/20-7, did adopt and approve certain guidelines for the administration of a local urban homesteading program and certain other documentation entitled, "Application For Urban Homesteading Demonstration" which appears to meet the requirements COUNCILMEN Yeas Nays Requested by Department of: Hun t Konopatzki In FaVOr Levine Meredith Against BY Sprafka Tedesco Mme.President Butler Form Approved b Cit ttorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by Maxor: Date Approved by Mayor for Submission to Council . gy By WHITE - CITY CLERK 1 �� PINK - FINANCE COU1lC11 BLUERV- MAVORTM�,NT GITY OF SAINT PALTL File NO. = Council Resolution , Presented By Referred To Committee: Date Out of Committee By Date -3- of an Application for local participation in the Urban Homesteading Demonstration described above; and WHEREAS, the Council of the City of Saint Paul intends to designate the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota as the unit of general local government or public agency to carry out a local urban homesteading program and to make Application to the Secretary of the Department of Housing and Urban Development to participate in the Urban Homesteading Demonstration described above. NOW THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul as f ol lows: l. That the Council does hereby declare its desire that the City of Saint Paul shall participate in the Urban Homesteading Demonstration being undertaken by the Secretary of the Department of Housing and Urban Development, pursuant to Section 810 of the Housing and Community Develop- ment Act of 1974 . 2. That the Council does hereby find that the Housing and Redevelop- ment Authority of the City of Saint Paul, Minnesota is a public body corporate and politic capable of carrying out a local urban homesteading program pursuant to Section 810 of the Housing and Community Development Act of 1974. 3. That the Council does hereby designate the Housing and Redevelop- ment Authority of the City of Saint Paul, Minnesota as the unit of general local government or public agency to carry out a local urban homesteading program in the City of Saint Paul through participation in the Urban Homesteading Demonstration described above. COUNCILMEN Yeas Nays Requested by Department of: Hun t Konopatzki In Favor Levine Meredith � Against BY Sprafka _ Tedesco , Mme.President Butler Form Approve by C'ty Attor Adopted by Council:. _ Date - �� Certified,_P�ssed y�dunci ta By � . \ - " � Approved by MaXor: Date Approved by Mayor for Submission to Council 4 gy By WHI7E - CITV CLERK �� PINK - FINANCE CO1111C11 BLUE�Y - MAYORTMETIT GITY OF SAINT PAITL File NO. � �� Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -4- 4. That the Council does hereby direct the Housing and Redevelop- ment Authority of the City of Saint Paul, Minnesota to submit a timely Application to the Secretary of the Department of Housing and Urban Development to participate in the Urban Homesteading Demonstration described above, together with such administrative guidelines and other documentation as may be necessary in conjunction with said Application. COUIVCILMEN Requested by Department of: Yeas Nays Hu Ko opat�8�� In Favor vine •�� O edith�ayjrp Against BY pr ka �� ede o�� Mme. reside TedEi00 � Z� � Form Approved Cit Attorney Adopted by Coun ' � Certified�P'as ed ouncil S retary• BY B Appro Ma or• e Approved by M y r f Submission to Council , By �us�is�t��-A1l6 3 019 55 East Fifth Street, Saint Paul, Minnesota 551 01. Edward N.Helfeld,executive director.phone 298 52 18 � � ��" ,��•�� HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA Mr. William Q. Patton August 20, 1975 Community Development Coordinator 366 City Hall Annex RECEIVFD Saint Paul, Minnesota 55101 AU G 2 2 1975 Re: Urban Homesteading Demonstration Program �RQNI-1N•AID P_ROGRAM� Dea.r Mr. Patton: At this afternoon's Board of Commissioners meeting the attached application and guide- lines were approved for an Urban Homesteading Program for Saint Paul. I am requesting that this program be brought before City Council for approval at the earliest possible date. As you are aware, we have a time deadline of August 29 to have this application into the HUD office in Washington, D. C. There are certain minor technical modifications that may be necessary over the next few days. I will inform you of the status of these prior to City Council action. Please advise as to how many copies you need for submission to City Council. Sincerel�, • ��.'°�. Allan Bloc Deputy Renewal Director AJB/ap Enclosure cc: Bruce Beneke Dorothy Schlesselma.n ^�,n��s�z Robert Sylvester, Donald P. Del Fiacco, David H. Houa, Willie Mae Wilson, Kenneth J. Lynch, Ron Madtlox, Mary Ann Sutleith t�s�lAp�°„o Cbaiiman � _ : ��5 � . , � �.e. , DA�.r M�r7' Ann� �„_._ �G(/(. In re�din� over th� fin�l drAf'.t of the Guidelinea for ' � IIrbs�n Homeste�din�, it see�s to me thAt two ch�ngea �� ahould be suggc�tcd; 1) Section �.3 - 6�. �hould be cY►_9nged to read; � "The percentage o�' the �pplica.nt� s grosa inco�te s�llowed i'or housing-rclated axpenses, �fter eoMplction of reh�bilitation, should be deter�ined ' according to tn.e Guidolines of the loa�n program which the applic�nt intends to uae to f inance the reh�bil�tationo" 2) Section 9o3A shou2d be chu� ged to read; . �'An� Homeateador or �nq applicant aelected in the first lotterv��;onsii��A�i�h��Fe gro�3�ions � ' O S�c ion �a�wno iee � ��;r cve � tna � �, inzs rata.on or �pplication of the Urban Ho�e- ateading Progr�.�. r�ay appe�l the �ri�v�nce to . tho Appc�.ls Cor�itteeo" . .� ' Alwo, one quc3tion ca.rne up which should probabl7 be �sked � ��' �,�of the Reha.b Staff: �C�n 312 loan� b� �ade Av�3lablc to� ` persor�s undor the le�.ffic a�gr•e��ent? In other word�+, a�re . non-owner$ el�gible under the guideline3 of the progran, � would. also like to $ugge st th�.t the Board be madc aw�re oP the ti:ae constr::int� undcr which theso guidelines were drAf�edo A conaequence of those constra.ints im that �� it will probably be neces��.r� to suggeat sor.ie technica.l. ch�.ngc� to the guidelinea at the tir�e ths�t the De�on�trs�- tion Grant Application ia oithcr a�pproved or denied, �uch change s would be of the tgpogr�.phic�.l error tTpe' rather th�n of .a aubsta►ntiv� nat��see Ths.nka� . � . `�'� �_^-� ��`''� t � . . � � ; . , . � � , � HOUSING AI�D REDEVtLOPPJIENT AUTNORITY OF THE CiTY OF SAINT �AUL, MIfJNESOTA � VI.B.8 REPORT TO THE COMMISSIONERS � QATE august is, 1975 ��9�� R E G A R D t N G AppLICATION FOR IiUD URBAN HOMESTEADING DEMONSTRATION PROGRAM On Friday, August 1, the Housing Task Group met to discuss the possibility of applying for funding for HUD's Urban Homesteadin� Demonstration. The funding is available through Section 810 of the Housing and Community Development Act of 1974, Nationally there are two amounts available: $5 million for purchase of HUD-owned properties, and $S million in 312 rehabilitation loans to be provided to homesteaders. Application is made directly to the Washington HUD office and must arrive by August 29, 1975. If Saint Paul is designated as one of the cities for the HUD Demonstration Program, it is expected that the city of 3aint Paul will contract with the Housing and Redevelopment :uth;,rit� tc �d...�:.ister tha grcgr4m. It has bzer. determir.e� tr.�t existir.g reha�i�ita� tion, .administration, and planning personnel could staff the program. The target areas chosen by the Housing Task Group are Su�nit-University, Thanas-Dale, aad the West Side (boundaries used are consistent with the districts recently approved by the City Council for citizen participation.) These areas have been chosen because o£ the concentration of HUD-owned properties contained in them (S.U. - 11, T. D. - 3, and West Side - 4) . Application is being made for 18 properties; however, they may not be � exactly the same properties that are shown on the application maps because of the turn- over in HUD properties which may occur by the time the program is put into action. The attached guidelines describe the procedures necessary to implement the program. � There are several other parts to the ap�lication, including a time line and documentation supporting the choice of target areas. Because of the extremely limited time available, these parts were not completed in time to be mailed to the Commissioners. They �will, however, be available at Wednesday's meeting. REN:DS � �f�5�� HOUSING AND REDEVELOPMENT AUTHORITY � OF THE CITY OF SAINT PAUL, MINNESOTA APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION AUGUST, 1975 s . � ��59�5 APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION SAINT PAUL, MINNESOTA INrRODUCTION In the past few years, the city of Saint Paul has made a strong commitment to • neighborhood preservation. Seeing the preservation of the existing housing stock as the backbone of this effort, the City sought enabling legislation from the State Legislature to make possible the sale of municipal bonds to £inance a local housing rehabilitation loan and grant program. In a special attempt to achieve maximum impact with the program's limited resources, the City chose to . place the majority of the available funds in six concentrated areas around the city. In addition to a guaranteed availability of funds, these concentrated areas receive public improvements, without assessment to the home owners. Com- munity organization efforts were made a part of the program for the purpose of securing neighborhood, as well as individual, coa�mitment to preservation efforts. Strong, active neighborhood organizations in Saint paul are an important element fu the C�ty'S Luuuuitu�t�t tu pY�sei`vE: the ��isting .►�using s��ck. �uGii. organizations have been responsible for initiating the following efforts: 1. The passage of a "red-lining" ordinance, which makes illegal the practice of not granting loans in certain areas of the .City by private lenders simply because the area is not considered a good risk. 2. The passage of a vacant buildings ordinance, which requires the regis- tration of vacant buildings with the City and imposes a fine for failure . to comply. 3. The use of a group contracting, which allows several home owners, all of whom intend to have the same kind of rehabilitation work done (e.g., r electrical wiring) , to realize savings by contracting jointly with one contractor. � In addition to these efforts, neighborhood organizations expressed their commit- menC to neighborhood preservation in their requests for Community Development funds i.n the first year. Proposals from virtually every neighborhood included substantial requesta for housing rehabilitation funds. � r ; , APPI.ICATION FOIt URBAN HOMESTEADINiG DEMONSTRATION � ,_� SAINT PAUL, MINNESOTA �` Qy� �/'�� Interest in housing preservation programs continues. The foZlowing is a partial list of programs that are now in the developmental stages: 1. The development of a housing information service, which would pravide call-in and walk-in services on a broad range of housing matters. 2. The development of a home maintenance program which would allow home owners to purchase an ongoing maintenance arrangement to keep homes in good condition at low cost. _ An Urban Hamesteading Program is considered an important element in preserving Saint Paul's existing housing stock. Vacant houses have long been a perplexing problem to .those hoping to revitalize older, inner-city neighborhoods. City officials and neighborhood groups have sadly watched as basically sound houses, which could have provided homes for families, have fallen to the wrecking ball. Their inability to make the purchase of these homes economically feasible is a sou�ce of constant frustration. They have seen not only the waste of destroy- ing such structures, but also the detrimental effect which vacant houses have � had on the surrounding area. The city of Saint Paul sees the HUD Urban Homesteading Demonstration program as a valuable opportunity. to initiate an ongoing Urban Homesteading Program. It is the intention that the Demonstration Project will provide only the first stage in a larger program aimed at eventual elimination of deteriorated vacant housing in the city of Saint Paul. � , -2- Introduction 4 . . ��5945 APPLICATION FOR URBAN HOI�STEADING DEMONSTRATION� SAINT PAUL, MINNESOTA APPLICATION DOCtTI�NrATION A. LEGAL DOCUMENTS The following pages contain: 1. Staff Counsel's opinion stating that the Housing and Redevelopment Authority is empowered to perform the functions necessary for implementation of the Urban Homesteading Demonstration. 2. Saint Paul City Council Resolution which specifies the Housing and xedevelopment Authority as the entity empowered to carry out the Urban Honaesteading Demonstration, . 3. The Urban Iiomesteaders Lease and Purchase Agreement. 4. Condition com�eyance agreement including conditions to be met by Homesteader and acts which constitute a breach of agreement. This is contained in the above Urban Homesteaders Lease and Purchase Agreement. 5. Descrigtion of ??ox�stea3er Selecti�n Process , a. The City is anticip.ating a significant amount of interest in this program and a large. number of applications for each property to be made available. In order to ensure that applications can be processed in a timely, efficient and equitable manner, a double lottery system shall be instituted for each property. b. This double lottery system will function as follows; In the first lottery, tweaty applicants' names shall be drawn. The Authority together with interested neighborhood organization representatives pursuant to Section 7.11 of these guidelines and procedures will then consider the applicants to determine those who could qualify for the program. In the event that there is more than one of the twenty applicants who could qualify, a second lot- , tery shall be held to select the principal homesteader. , c. In carrying out application selectioa, the following procedures shall be utilized: • (1� Properties shall be advertised as being available��through Chis program for a period of two weeks. . -3- Application Documentation � � � . . � ��45 _ ___�______. ___ --____.__- _ __� s O � Mv ~ � r � ' G +�pcv[�p � �� . o �- v-r.;�V�yj . ��Gp�� OR �`Y�9 �^�._ll—_ o � �a � Y �- `��< � ,�o,�� rt�� ATTOR, I�TEYS 4PINION ,O��,r >h� .c�s��0 1 �@ 0°v~E�,h� DATE: August 15, 1975 RE6ARDING: Urban Homesteading Demonstration Application Pursuant To Section 810 of the Housing and Community Development Act of 1974 I, the undersigned attorney for the Housing and Redevelopment Authority of the City of Saint Paul , Minnesota (hereinafter "HRA") , do hereby certify that the HRA has al� the necessary power and authority to implement a local homesteading pl an as requi red by Secti on 810(b) of the Housing and Corrmuni ty Devel opment Act of 1974. Specifically, the HRA is a public body corporate and politic, duly organized pursuant to the provisions of the Municipal Housing and Redevelopment Act, 1974 Minnesota Statutes �462.411 et seq. , and thereby is empawered under Minnesota law as follows: 1. The HRA is empowered to accept from the Secretary of the Department . �of Housing and Urban Development {he reinafter the "Secretary") the transfer without payment of any real property within the City of Saint Paul , its area of operation, to which the Secretary holds title. . Thn rt�t��+nv.v rn��nnn� �R r��.l nn�.rnv. n lA7/� M4r�nn�-n}� C+�+��-�r . • �1 �. J IAYMNVI,' JVM/ VI.J VI JUIIA fJVYV�.I (All. YJ/T 1'llllll\.JVVtA J{.U{.MV<.J . �462.445, Subd. 1 (b) and (7). 2. The HRA is empowered to conditionally convey unoccupied residential property to an individual or a family without. any substantial . consideration. The statutory sources of said power are 1974 Minnesota Statutes §462.525, Subd. 9, and §462.445, Subd. 1 (5).. 3. The HRA is empowered to assist in or undertake the financing of the rehabilitation of real property conveyed to persons selected as homesteaders pursuant to the provisions of the abov� mentioned local homesteading plan. The statutory sources of said power are 1974 Minnesota Statutes §462.525, Subd. 9. � anie B. Jo nson, Staff Counsel 601 Northwestern Bank Building 55 East Fifth Street � Saint Paul , Minnesota 55101 � __________. __._ _.._ , , __,_ __ ..__ _ _ , __.- _ _ _. _. ._ ____ _ . .._____._ _ . r�.°�-.' , _,.�_ �.,r�....�.�,�.,,:: . , ��`�� _,__.._.--__._ , , _. . . __ _____.._.. ___ ___.__._ ___--- - _._. .----___._____.. �,... r,,, •. ..___ .�. � � URBAN HOMESTEADERS LEASE AND PURCHASE AGREEMENT THIS AGREEMENT made this day of , 19 , between the . HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA, hereinafter referred to as the "HRA" and . , �ointly and separately, hereinafter referred to as "Homesteader" � WITPdESSETH: WHEREAS, the HRA, acting pursuant to Minnesota Statutes, Section 462.415 to 462.711, desires to foster development and use of unpro- ductive real property; to� bring substandard buildings and improvements in compliance with public standards for decent, safe, and sanitary housing; and to provide home ownership opportunities to qualified agpl.icants; and WHEREAS, the HRA, in order to carry out these purposes, desires to lease and ultimately to convey in fee simple the property herein- � after described to the Homesteader for a nominal consideration; and WHEREAS, the success of the Urban Hoiuestead Program requires strict compliance by the Homesteader with the terms, agreements, covenants, and conditions hereinafter more particularly set forth to the end that any violation or failure of performance thereof or any of them shall cause immediate forfeiture pursuant to the terms hereinafter provided. NOW, THEREFORE, in consideration of the mutual covenants contained � herein, the� HRA and the Homesteader do hereby agree as follows: 1. The HRA and the Homesteader shall accept the obligations and responsibilities imposed upon the respective parties to this agreement. 2. The HRA does hereby agree to demise and lease and ultimately to convey to the said Homesteader and the latter does hereby agree to rent and to ultimately purchase from the former together with the improvements thereon and subject to any easements and/or restric- tions, if any, the following property, known as , situate and lying in e i y o Paul, County o Ramsey, State of Minnesota, and legally described as , -----_,,,._ ____ __ ,. _._ _ � _ _._ . ___ __ _ _ _ _ __ _---_ _ _ _..... ._ _ _ __ ..1,�,,...,, � � �� _ . . --___ __ ____�_ _ ___ ____ _ k ! ' � i • � 1 • follows, to-wit: � Said premises shall hereinafter be referred to as "Homestead. " .� ! 3. The purchase price to be paid for the Homestead shall be � Dollars � ) . As urther consi eration, the Homesteader does hereby agree to rehabilitate said Homestead as hereinafter provided. 4. The HRA has simultaneously herpollars�($itted _ � to the Homesteader pursuant to the St. Paul Rehabilitation Loan and � Grant Program, as evidenced by a copy of a Promissory Note attached he re to as Exhibit "A" , the proceeds of whi.ch shall be used to finance � rehabilitation of the Homestead as hereinafter provided. Following completion of all rehabilitation work and conveyancing of fee simple , title, the parties to this Agreement shall execute mortgage documents ; attached hereto as Exhibit "B" . 5. At all times during the term of this lease �and first three (3) years following the transfer of title, the Homesteader shall occupy and use the Homestead for residential purposes only. The Homesteader shall not utilize said property for the production of income during said time. Production of income' shall not include payments to the Homesteader in compensation for providing board and room to blood relatives of the Homesteader. 6. Prior to conveyance of fee simple title and during the f period of the lease as hereinafter provided, but not after, this agreement is binding upon the contracting parties alone, is not assignable, and shall not be binding or inure to the benefit of the heirs, executors, administrators, successors, or assigns of the parties. 7. The HRA, in consideration of the rent and covenants herein- after mentioned, does hereby demise, lease and let unto said Home- steader, and said Homesteader does hereby hire and take from the HRA the above described premises, far a maximum term of ( ) months, commencing on the day of • 19 , and ending on the day o� � ' both dates inclusive unless sooner terminated as hereinafter provided. 8. The Homesteader shall occupy the Homestead only after an occupancy certificate •is issued by the HRA, such certificate to be issued only upon compliance with provisions of Section 10, C. 1. , of thi� agreement or at such earlier time as it may be determined -2- _ _ _ _ . _ _ _ __ � _ .� � _._�._.-_-__._.._______._. ____._._ _ , _� __ . � �� _ _ _ _ _ � � ��A �� by the HRA that the Homestead is safe and habitable. Such occu- pancy certificate shall merely authorize occupancy and shall in no way warrant the condition or state of repair of any bui�ldings, improvements, and/or equipment on or in the Homestead. 9. The Homesteader shall pay the HRA as consideration for rental for the term provided in Section 7, above, the sum of One Dollar and no/100 ($1. 00) . 10. The Homesteader, shall as additional consideration, agree to the following: A. To alter, repair, improve, rehabilitate, or construct on the Homestead, at his sole cost and expense, in accordance with the plans and specifications contained in Exhibit "C" attached hereto and made a part hereof or as modified by agreement of the parties hereto and evidenced by a writing hereafter. B. To commence such rehabilitation or construction not later than thirty (30) days after the date of execution of this agreement. C. To complete all rehabilitation and construction work in accordance with the City of St. Paul Housing and Building Codes pursuant to the following provisions: . 1) To complete such minimal repairs as mav be determined by the HRP, ta be necessary in order to make the HomeStead safe and habitable, within ninety (90) days of commencement of work as provided in B. above. In the event that th� Homestead shall have been condemned as "Unfit for Human Habitation" by an appropriate enforcement officer of the City of St. Paul, the Homesteader, within ninety (90) days of commencement of work as provided in B above, shall also make such repairs as said officer may require as minimally necessary to secure said � off icer' s written approval to use the ' Homestead for human habitation. The Homesteader shall not occupy the Fiome- stead until the requirements of this subparagraph C.1. have been satisfied. 2) To complete all rehabilitation and con- struction work within ( ) months after the date of execution of this agreement, which time period shall not in any case exceed twenty-four (24) � months. Such time period has been deter- mined by the parties hereto in accordance � with the amount of such rehabilitation -3- _ • ..__.__._..______.._..�. _ __ __ __ ---__,. __ _ _ _ ... _. _ � _ - ,.�--� � . . ��v�� . , _ , _ .�___ . _ . _ ._. . . ----�---- _ . --._ __... . ._.___ _ ►_� .._� and construction which is to be performed by outside 'contractor (s) and/or by the Homesteader. D. To secure any and all permits and approvals required by the City of St. Paul to perform any and all of the work contemplated to be done or performed by the Homesteader, � and to pay any and all fees and charges due to and collec- ted by the City of St. Paul in connection with the issuance of any such permits and approvals. E. To pay and discharge punctually any and all • charges and rents due to and collected by any and all private utility company (s) and governmental unit(s) for utility services of any kind whatsoever during the term hereof. F. To comply with such additional reasonable terms as the HRA may designate in order to insure that the rehabilitation of the Homestead is success- fully completed. 11. During the time period provided in Section 10, C. , above, the Homesteader shall permit periodic inspections by the various City of St. Paul inspectors and/or HRA rehabilitation counsellors , ^ -�ctice, pr�vidir_� for � m„t„a?i� cnn��Pn�Pnt �imP; upon r�us�;.ab�� , -� for a determination by these inspectors and/or counsellors that reasonable, satisfactory progress, as defined by the HRA, is being made by the Homesteader in rehabilitating or constructing the Homestead. A. Except as provided in Section 10, C. 1, above, the Homesteader shall be permitted to occupy the Homestead prior to completing such rehabilitation and construction work as is required by paragraph 10 � above. If, as a result of a periodic inspection, such inspectors and/or counselors determine that a hazardous condition exists in or on the Homestead, which condition may endanger the health or safety of the occupants, the City of St. Paul and/or the HRA � � may require the Homesteader to correct such hazardous condition in accordance with the time provisions of the City of St. Paul Housing Code. B. If, as a result of a periodic inspection, the HRA concludes that the Homesteader is unable or un- willing to proceed reasonably or satisfactory toward � fulfilling the objectives and conditions of this section; or that satisfactory progress has not reasonably been forthcoming for any other reason within the control of the Homesteader, the Homesteader may be required to retain a contractor approved by the HRA to complete ' the remaining rehabilitation or construction work, or to surrender and quit the Homestead and thus terminate all Homesteader' s rights in the lease upon thirty (30) days' notice by the HRA. -4- � --- .�__._�_____.---- _ _ _ . _ . _. . . _ _ _ _. _ . _ �,.,^.,�,. ,v ,.._.,,,.,�.,..._._._ _ __ .� _ . �_..... �... ...;. F.:....�,.o.�.W.� _ a,:.�.. . , . _,.__r___ . .(� : . _ __--- _ __-----_- ___ ..._____.__._ _ �..___� �,�-- � • C. Any Homesteader who receives notice to quit provided in B, above, may come before the HRA Board of Commissioners and is entitled to present any defenses to termination by reason of this section which said Homesteader may desire to present, and said Board of Comr.iissioners shall at that time render a final decision not reviewable by any other entity of the City of St. Paul. D. If the Homesteader is required to surrender and quit the Homestead prior to the completion of rehabilitation or construction and/or conveying of fee simple title, the HRA shall apply any recovery made in the subsequent sale or use of the Homestead toward reimbursing the Homesteader for the amount of any payments theretofore made in satisfying the promissory note executed by the parties pursuant � to the St. Paul Rehabilitation Loan and Grant Program, and any out-of-pocket expenses incurred by the Home- • steader and/or the reasonable value of his personal , labor which expenses and labor are determined by the HRA to have materially contributed to the increased value of the Homestead. 12. The Homesteader� agrees that when rehabilitation upon said Homestead is completed the use of said Homestead shall be a permitted use under the City of St. Paul Zoning Ordinance and the Urban Renewal P1an or DPVP].c�pment District Plan �f ��i� u�mestead is locate� wit::�:. a designated renewal area. . 13. During the lease .period provided in Section 10. , C. , � above, the HRA shall provide, maintain and keep in force fire and extended coverage insurance protecting and covering the YRA' s interest in the Homestead and the amount of any loan executed through the St. Paul Rehabilitation Loan and Grant Program evidenced by the promissory note attached hereto as Exhibit "A" . In the event ' the Homestead is destroyed during said lease period, this agreement shall become null and voict and of no further effect, and the proceeds from insurance required under this term shall be applied first to the reduction of said promissory note and secondly toward reimbursing the Homesteader for the amount of any payments theretofore made in satisfying said note. A. The Homesteader shall not in any manner do, permit or suffer any act or thing in or upon the Homestead which may make void or voidable any insurance required under this term of the agreement. B. The Homestead shall furnish and keep in force fire and extended coverage insurance following conveyance of fee simple title in accordance with provisions of the mortgage to be simultaneously executed therewith which is attached hereto as Exhibit "B" . 14: The Homesteader shall be in exclusive control and possession of the Homestead, as provided herein, and the HRA shall not be liable for any injury or damage to any property or to any person happening � -5- , _-___._._.,_. _ -____.--- . ____ . _.. _ _ _ ,�,,.-..- � __._�_.___ ._ ' � _.._6..._...._ _.. _ _ ._ ....---.__ ��5 on or about the Homestead, or for any injury or damage to the Home- stead, or to any property of the Homesteader, or o£ any other person contained therein. , A. Provisions hereof permitting representatives of the City of St. Paul and/or the HRA to enter and inspect the Homestead are made solely for the purpose of enabling the HRA to be informed as to whether the Homesteader is . complying with the agreer.lents, terms, covenants, conditions hereof. B. The Homesteader shall indemnify and save harmless the HRA from and against all costs, expenses, liabilities, losses, suits, claims and demands of every kind or nature by or on behalf of any person whomsoever arising out of any accident, injury, or damage which shall happen in, on, or about the Homestead and on the streets, alleys, and sidewalks adjacent thereto, and for any matter or thing growing out of the condition, occupation, maintenance, alteration, repair or use of the Homestead during the term thereof. 15. At the commencement of the lease term hereof, the Homesteader shall accept the buildings, improvements, and any equipment on or in the Homestead in their existing condition and state of repair, and the HRA covenants that no representation, statement or warranties expressed or implied, have been made by or on behalf of the HRA in respect thereto and that the Homesteader has inspected the F�omestead prior hereto, and that tne tiiu� snall in no event be liable for any latent defects therein. � 16. If at any time during the lease term hereof, the Home- steader shall: A. Abandon the Homestead and such abandonment shall continue for a period of five (5) days after written or published notice by the HRA; or B. Assign or sublet in whole or in part, except as provided herein, the Homestead and such assignment or sublease shall continue for a period of fifteen (15) days after written or published notice by the HRA; or C. Default in complying with any other agreement, term,� covenant or condition of this agreement, and if such default shall continue for a period of sixty (6Q) ' days after written notice of the HRA specifying a claimed default, and if the Homesteader shall fail to commence � in good faith, appropriate action within said period to . remedy such default, or fail to diligently and continu- ously proceed therewith; Then, in any event, the HRA may distrain for any breach of covenant contained herein on the part of the Homesteader to be performed after due notice herein- after has been given, and upon such distrain, at the option of the HRA, this agreement shall become null and _6_ ., ____.__-------�_ _-. __,. . __ ,_ _ _ _ �-� � � � . ��5�4� ...._ ,..._... __. . . . _ - ., .. .. ... . . .. ._ . _.,_....._.. .... . _.._. _....,._"".._........... .._"_'_.'."_.`___. _ 4....�..i � � ' void and of no further effect, and all improvements made to the Homestead shall become the property of the HRA. The HRA shall apply any recovery made in the subsequent sale or use of the Homestead toward reimbursing the Homesteader for the amount of any payments theretofore made in satisfying the promissory note executed by the parties pursuant to the St. Paul Rehabilitation Loan and Grant Program, and any out-of-pocket expenses incurred by the Homesteader and/or the reasonable value of his personal labor which expenses and labor are deter- mined by the HRA to have materially contributed to the increased value of the Homestead. 17. If and where the conditions of Section 10, hereof, are � fulfilled, as determined and certified by the HRA, the HRA shall issue a certificate of completion and shall execute all documents necessary to convey a marketable fee simple title by Quit Claim Deed, attached hereto as Exhibit "D" , to the Homesteader subject only to the condition that the Homesteader shall occupy and use the Homestead for residential purposes only for a period of three (3) years from the date of transfer of title. The costs of trans- fer, including title examination, conveyancinc�, documentary stamps, and transfer and recordation tax shall be paid by the Homesteader. Any property taxes shall be levied during the year in which fee simple title is conveyed shall be apportioned pro rata between the HRA and the Homesteader. A. ,�uring such tnree �sj �ear period, the Home- steader shall not vacate the Homestead and retain owner- ship of said property not utilize said property for the � pro�.uction of income while continuing to occupy and use the Homestead for residential purposes. Production of income shall not include payments to the Homesteader in compensation for providing board and room to blood relatives of the Homesteader. In the event the Home- steader sha11 in any manner violate this term of the Agreement, the HRA sh�all have the right to re-enter and take possession of the property and to terminate and revest in the HRA the estate conveyed by the Quit Claim Deed to the Homesteader, its assigns or successors in interest. The HRA shall apply any recovery made in . the subsequent sale and use of the Homestead toward � reimbursing the Homesteader for the amount of any pay- ments� theretofore made in satisfying the promissory note and the mortgage securing the same executed by the parties � pursuant to the St. Paul Rehabilitation Loan and Grant Program, and any out-of-pocket expenses incurred by the "�' Homesteader and/or the reasonable value of his personal . labor which expenses and labor are determined by the HRA to have materially contributed to the increased value of the Homestead. B. In the event, the Homesteader shall sellthe Homestead within three (3) years from the date of transfer of' title, the Hamesteader shall pay the HRA a percentage -7- _—.�.T._._._..�___�_____.._____. .___._._ ___ _ _ _ _ __ _ _ _. _ _ ►-----� . . . .' _ _ _ _-��. __ -- �.._�... e . � ' of any increased value received upon the sale of the Homestead. 1) The amount of increased value, to which the percentage shall be applied, shall be determined by subtracting Dollars , � representing t e indebtedness originally incurred by the Homesteader at the time of the execution of this agreement, and any �xpenses incurred by the Homesteader to market the Homestead, including the payment of any property taxes from the price at which the Homesteader sold the . property. 2) The percentage paid to the HRA shall be: . a) Ninety percent (90$) , if sold within the first year since abtaining title; . b) Sixty percent (60�) if sold during the second year since obtaining title; c) Thirty percent (30�) if sold during the third year since obtaining title. 3) In the event of hardshig, ths ARA may elect to waive this repayment provision. � � C. The Homesteader shall agree to maintain the Home- Homestead, following completion of renabilitation or con- struction and transfer of title, in accordance with all electrical, plumbing, building, fire prevention, and related codes of the City of St. Paul. D. This agreement shall, from and after the date of transfer of title, bind and inure to the benefit of the heirs, executors, administrators, successors and assigns o� the parties hereto. • E. None of the provisions of this agreement are intended to or shall be merged by reason of any deed transferring title to the Homestead from the HRA to the Homesteader or any successor i,n interest, and any such deed shall not be deemed to affect or impair the pro- visions and covenants of this agreement. 18. All notices required or permitted under the terms of this agreement to be given by either party to the other, shall , be in writing, except as hereinafter provided, and unless and until otherwise specified in writing by the respective parties, shall be sent to the parties and addresses as follows: , � -8- . ., v_,..�.�.,.._...�..�..___._ __�._. _� .._.___ --- _ _. _ __ _ . _ . �,T,,.,,�,. ' _.__,. _, .___ ___ .__�._ .��L.;��_.._L._ ..____ �� w � f ' Housing and Redevelopment Authority of the City of Saint Paul, Minnesota 601 Northwestern,Bank Building 55 East Fifth Street � Saint Paul, Minnesota 55101 ATTN: Urban Homesteading Coordinator Representing ( . the .( ( - Home steacler ( ( All notices shall be deemed to have been properly served only if sent by registered or certified mail to the persons at the addresses designated above,or to any other person at the address which either party may hereinafter designate by written notice to the other party. Service of any such notice shall be considered as made two (2) days after the date of mailing. If the Homesteader defaults in any manner described in Section 16 A. or B. , above, and if the HRA determines that written notice as hereinbefore provided, is not reasonably calculated to reach the HoMesteader the HRA may publish notice of its intent to distrain for breach of contract by �irtue of such default in a general circulation daily publication, such published. notice to appear for tive (5) consecutive days. 19. The failure of the HRA to insist upon a strict per- formance of any of the agreements, terms, covenants, and conditions hereof shall not be deemed a waiver of any rights or remedies that the HRA may have and shall not be deemed a waiver of any subsequent breach or default in any of such agreements, terms, covenants and conditions. 20. This agreement contains the entire agreement between the partiPS anci shall not be modified in any manner except by an in- strument, in writing, executed by the parties. IN WITNESS WHEREOF, the parties hereto have executed this agr•eement on the day and year first above written. In the Presence of: HOUSING AND REDEVELOPbiENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA . By � Its . By Its By . . HOMESTEADER By MESTEADER , -9- __��________.. ________._ . _ _ �,,.... . ; ��,..._._...___... .,... I ' �. _ ��.q�5 _ --,�_.., � . a . STATE OF MINNESOTA ) ) SS. COUNTY OF RAMSEY ) ' On this day of , 19 , before me, a Notary Public within and for said County, personally appeared and , to me persona y nown, w o, y me duly sworn, di say t at t ey are the and , respectively, of the Housing and Redeve opment Authority of thP City of Saint Paul, Minnesota, named in the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Commissioners; and said � and ac nowledged said instrument to be the free act and dee o said corporation. � STATE OF MINNESOTA } ) SS. � COUNTY OF RAMSEY ) On this �_ day of - , 19 , before me, a Notary Public within and for said County, persona�ly appeared to me personal y nown, w o, y me u he Y sworn, i say t at � instrument and acknowledged saidsinstrumentetolbethe foregoing free act and deed. . � � . � � y -10- .� ..._____ ._____..__ _. _ � _ ._ _ . _ . .. .. .. •_ _ . .. _ . .. . _.. .. . . . .r, . APPLICATION FOR URBAN HOMf:STEADING DEMONSTRATION ��'�(�j�� SAINP PAUL, MINNESOTA � (2) For the first lottery, all applications received will be screened pursuant to Section 2.1 of these guidelines and procedures to ensure that the applicant is initially eligible. (3) The names of all eligible applicants will then be placed in a suitable receptacle for the lottery. (4) 1�aenty applicants names �hall then be selected. (S) The Authority staff and interested neighborhood organizations shall then work with these applicants to determine if they • could qualify for the property. Authority staff review of an applicant's request for financial assistance through the • federal, state or local rehabilitation loan program shall be included. In all steps of the process, the confidentiality of the individual applicant shall be maintained. (6) The twenty applicants drawn in the first lottery will be interviewed and reviewed in accordance with the following criteria: (a) As a guideline in determining eligibility, the applicant's monthly housing-related expenses after completion of ` rehabilitation work shall not exceed 25% of the applicant's - combined household monthly gross incame. (b) Applicants shall be able to demonstrate adequate abilities � andfor financial resources to undertake the rehabilitation of the property, to maintain it over a period of years, and to otherwise assume the responsibilities of home owner- ship. (See Assistance to Purchaser section) (c) To avoid creating an overcrowded situation, the Authority shall ensure that the applicant's family sfze is not too _ large for the st ructure being offered according to Housing s Code requirements. (d) Ensure tl�at the applicant is willing to satisfy the various � prograra requirements. (See Program Requirements section) -1�- . Application Documentation APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION ��59�� SAINT PAUL, MINNSSOTA (e) The Authority shall make the applicant aware of his/her option to perform "sweat equity" in order to reduce the total cost of rehabilitation. (7) In the event that it is determined that there is more than one � , applicant from the twenty names selected in the first lottery who could qualify for the propertq, a second lottery shall be held within thirty days of the first lottery. In the second . loCtery, the Hamesteader shall be selected. At least three alternates will also be drawn, when numbers permit, in the event the Homesteader becomes disqualified before the execution of the Homesteaders Agreement. In the event the Homesteader or the alternates are disqualified, twenty more names will be drawn from the first lottery. (8) Any applicant from the tweaty names not included in the second lottery shall be given a written stateraent by the Authori�y or the neighborhood organization detailing the reasons. Legal opinion that selection process is equitable. 6. There are no legal impediments to Saint Paul's proposed Urban Hamestead- ing Program. A.2 Council Resolution � (ta be inserted after iC is adopted) B. ADMINISTRATIVE ANA PROGRAM MANAGEMENT 1. Description of Staffing Pattern The city proposes to utilize the Housing and Redevelopment Authority (HRA) as an administering agency for the Urban Homesteading Program. �This agency has a full complement of staff capable of administering all types � of activities with respect to urabn renewal and housing development. The HRA has experience in the areas of relocation, co�unity organization, real estate, rehabilitation, housing development and general administra- tion. The Rehabilitation Division includes 18 Rehabilitation Advisors -5- Application Documentation . . � ��u�� APPLICATION FOR URBAN HOMESTEADING DEMQNSTRATION SAINr PAUL, MINNESO�TA and 5 expeditors as well as technical and financial staff to facilitate the Urban Homesteading Program. Qualified services by adequate staff are available in each of these disciplines mentioned abave so that an appropriate number of people can be assigned to Urban Homesteading to assure the implementation of the program describe� herein. 2, Tfine Schedule for Implementation of Demonstration BVENr TIMING " Inspection - work write-up (City inspection team 1 week and HRA) Advertise - �Show house - open house) 2 weeks Accept Applications 2 weeks Process Application 1 week First Lottery 4 weeks Second Lottery �, t,.I: u_,,..: + 4V 1V �iGO<tia� i ��iG� Property Coriveyance � Hoaaesteaders Agreement � 1 week Contractors Arrangements Co�nencement of Work - urithin 30 days of the execution of Homesteader�s Agreement Completion of Work - within 7.80 days of the execution of Homesteader's Agreement . 3. Goals and Obiectives In Saint Paul, Urban Homesteading, used in coordination with the Saint Paul Rehabilitation Loan and Grant Program, implementation of the Community ' Development Block Grant Program, the Minnesota Housing Finance Agency Loan and Grant Program, .the implementation of the Hazardous Building Act, the � Neighborhood Housing Services Program, as well as other new and existing revitalization programs, can be instrumental fn achieving the following goal's: a. Revitalizing of neighborhoods by increasing their econanic vitality. •, -6- Application Docv�entation APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION ��`"�" SAINT PAUL, MINNESOTA b. The provision of a home ownership opportu�ty for those who could not otherwise afford it. c. The reduction of hazards created by vacant structures. " d. The stimulation of housing rehabilitation efforts where it may not otherwise have occurred, e. The increase of tax productivity of residential property. C. NEIGHBORHOOD SELECTION 1. Map of geographic jurisdiction of the city of Saint Paul with target neightiorhoods outlined. This map is attached to this outline. 2. Map of each proposed target neighborhood with geographic boundaries, � census tract lines, locations of vacant single-family properties, and �locations of HUD-owned properties. These taaps are attached to this outline. The city of �Saint Paul owns no single-family properties. 3. Description of residential characteristics of each proposed target area; Suumnifc-Univers i cy The Summit-University area, as shown on the map under No. 2 had a popu- lation of 22,216 as of the 1970 Census (Block Statistics) . The approxi- mate median family income is $7,672, according to the 1970 census tract �data. Those same figures show that 56.2� of area families have incomes below 80% of the local median family income, while 39.6� are below SOx of the local faadly median. Using 1970 Census Block Statistics, it is estimated that 21.7% of Suamnit- University's year-round housing units are owner-occupied. The Saint Paul Area Board of Realtors' annual publication "Year End Statistical ' Marketing Analyses" (Jan. 1 - Dec. 31, 1974) was used to estimate average price of single-family sales. For Stmm�it-University this average is approximately $20,135 for the past 12 months (September 1, 1974 thru �iugust 31, 1975). '7• Application Documentation APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION SAINT PAUL, MINNESO'rA ��5945 Thomas-Dale According to the 1970 Census Block Statistics, Thomas-Dale has a population of 16,759. The approximate median family income is , $8,849. An estimated 46.570 of families in Thomas-Dale have incomes below 80% of the local family median, about 25.8�6 are below 50°� of 'the local median family income. Incame figures are from 1970 census tract data. Using Block Statistics, it is estimated that 47.8% of the housing units in Thomas-Dale are owner-occupied. The Saint Paul Area Board of Realtors annual publication "Year End Statistical Marketing Analyses" (Jan. I - Dec. 31, 1974) was used to estimate average price of single-family residential property sales. The average was $20,135 for Thomas-Dale during the past 12 months (Sept. 1, 1974 thru Aug. 31, 1975) . West Side The pcpulaticn af th� West Side, according to the 1970 Census, is 17.239. Census tract data for 1970 was used to estimate the median family income, $8,849. The approximate percentage of families with incomes below 80% of the local family median is 41.3�, while 25.8% are below 50� of the local median (1970 census tract data) . About 56.59', of the West Side's housing units are owner-occupied, according to 1970 Census Block Statistics. � The Saint Paul Area Board of Realtors' annual publication "Year End Statistical Marketing Analyses" was used to estimate the average price of single-family residential property sales. The estimate average price vor the West Side was $24,307 during the past 12 months (Sept. 1,. 1974 thru Aug. 31, 1975) . . � 4. �nformation for the City as a Whole The estimated average price of city-wide sales of single-family residen- tial properties over the past 12 months is $28,118 for existing housing stock. Of the approximate total of 1,522 single-family sales during °8- Application Documentation . APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION SAINT PAUL, MINNESOTA � �c�� C.R 1974, only 7 were new homes. Their average sale price was $36,657. Similar data for the target areas ia included in Part 3. above. These estimates came from the St. Paul Area Board of Realtors' Year End Statistical Marketing Analyses. Based on census tract data, the local median fanaily income is $10,544. � The estima.ted percent of families below the poverty line ($3,743) is 6.49'e. 5. Saint Paul has chosen three neighborhoods in which to begin its Urban Homesteading Program. Each of these neighborhoads has distinctive characteristics and problems. The three together cover a broad range of conditions. They were chosen because the varied nature of these neighborhoods offer an opportunity to assess the effect of urban hane- steading in Saint Paul so that the second stage of the Program may be designed for maximum impact. The three neighborhoods, their characteristics and goals are as follows: Summit-University Summit-University is one of the oldest neighborhoods in Saint Paul located �ust west of downtown. A section of the neighborhood has been under consideration by the Minnesota Historical Society for designation as a National Historic District. Summit-University was originally a � : middle-class neighborhood; its housing for the most part consisting of large, well-constructed, single-family residences. Eighty percent of . the housing was built before World War II. After World War II, the area experienced an influx of low-income whites � and blacks. Most of the blacks in Saint Paul became concentrated in this area and the resulting social and physical problems have been 'documented and dealt with abundantly elsewhere. The worst housing in the neighborhood was immediately around the State Capitol, and was removed beginning in the mid-50's. The residents -9- Application Documentation APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION ��'�('j�� SAINT PAUL, MINNESOTA �� relocated westward into the rest of Sumcnit-University. This aggravated slready existing problems. In 1959-60 land was acquired and families relocated for Interstate 94 which made a cut across the � northern part of the neighborhood. Once again this aggravated the problems of what was becoming a captive population due to racial dis- . crimination. The area has the highest crime rate in the city. Twenty percent of its residents receive some type of welfare, and only 22°,6 of the residences � are owner-occupied, well below the city average. The neighborhood also has a concentration of vacant, boarded-up houses. All this is in spite of the fact that Summit-University was designated a Model Cities Neighborhood in August-September 1968 and some of its worst problems addressed. Since 1968 the MNPC and the HRA have accomplished the rehabilitation of 100 large houjes rented and purchased by low-income families, � voluatary rehabilitation using Sec. 312 loans and Sec. 155 grants, building and rehabilitation of homes under Sec. 235 of multi-family dwellings. In addition, public improvements were made in large areas of the neighborhood. Development of a shopping ce nter at Dale and University . • is taking place, and new single and multiple-family residences are beirig developed in the Northeast Quadrant. . The goal of an Urban Homesteading Program in S�nit-University would be to increase�the level of home ownership, especially for low and moderate-income families. If chosen carefully, Urban Homesteading properties could serve as a stabilizing factor and as a visible example , of what could be done with the large homes in the areas. Urban Home- steading would serve as one more tool for an area which has already done much for itself, but which still has a long way to go. • -10- Application Documentation APPLICATION FOR URBAN flOMESTEADING DEMONSTRATION SAINr PAUL, MINNESOTA � ��45 Thomas�Dale The Thomas-Dale neighborhood as we now know it dates back to the latter half of the 1800',s when it was known as "Frogtown." The � residents of this coamiunity were blue collar workers and today the neighborhood remains characteristic of the same. The homes date back . to the late 1800's, early 1900's, and are small and closely grouped. The 1960's and the 1970's brought a transition from urban to suburban � residency, aad the Thomas-Dale neighborhood lost many of the new�r . generation of older families and had difficulty in attracting younger families until just recently when the urban renewal program began to remodel the community. Recently, the urban renewal programs have shifted from demolition and rebuilding to concentrating on rehabilitation of many of the older homes that are in need of just basic rehab items such as plumb�ng or wiring (code it�ms)� Thomas-Ual? contains an Inter.sified Treatment araa un3er the city's Rehab Program. Some people are reluctant to rehab in an older neighborhood such as Thomas-Dale, but a program such as Urban Homesteading would balance out same of the negatives of the fact of rebuilding or remodeling an older home in an old neighborhood. Many of the homes that could qualify for this Program are spotted throughout the neighborhood and therefore have a damaging effect on surrounding neighbors. If the City or , • HRA could acquire some of these homes, it would halt the spread of deterioration. Thomas-Dale's goals are to save the characteristic of the old "Frogtown" . neighborhood. This means that we would rather rehabilitate, but there are definitely s ane a reas that cannot be rehabilitated and therefore would like to rebuild. Through a combination of rehabilitation and rebuilding, we can attract a variety of people and Thamas-Dale can conti- � nue as the "melting pot" of the city. ,� -1Z- Application Documentation APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION SAINT PAUL, MINNESOTA Wes�t Si.de ��^� � The West Side is a crescent-shaped part of Saint Paul, comprising four census tracts on the west bank of the Mississippi Itiver, but south of the rest of Saint paul. Ztao bluff lines separate the "flats" or industrial area, the "Hill" or Concord Terrace area and the "t�pper bluff" area. The West Side was a traditional area for settlement of i�igrants from many nations. Ethnic communities developed in the "flats" along the river; which were subject to annual flooding until the land was filled in by sanc3 from the river. "Flats" housing, now demolished, was not ' of a permanent nature as was housing further up the bluffs dating from .the early days of Saint Paul. The largest population of second-language speaking people in the city live on the West Side. Since the 1920's in migrant Mexican-Americans, Spanfsh-speaking individuals of Mexican descent, have chosen to live — • first on the lower West Side and then gradually moving to the upper West Side. The religious and cultural flavor of the neighborhood creates a focus for the community. Many young families live on the West Side where 64� of the papulation is under 45. Only 16% receives some form of welfare. About half of the housing is aver 50 years old and the percentage of substandard units in combination with the high level of home ownership qualify the area for the City's Rehabil3tation Program. The West Side is designated as a Concentrated Rehabilitatiori Area under this Program. Aousing on the West Side is in a period of transition. Although many of the homes have been brought up to code by the individual home awner; many others are in need of repair and some have reached a point of no return and should be torn down. If the West Side is to remain a strong, vi,able neighborhood, home rehabilitation programs are essential to attract '12- Application Documentation APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION ��,�� SAINr PAUL, MINNESOTA and to keep young families in the area and so to create a stabilizing influence. , Urban Homesteading is seen as a program that can camplement and even eacourage rehabilitation by creating an awareness of the housing stock, of the neighborhood and of the opportunities available for rehabilita- tion. D. FINANCING 1. Description of federal, state or local public funds available for rehabilitation. The need for rehabilitation, accompanied by a growing interest in rehab, has resulted in the involvement of a variety of public agencies, cammunity organizations, neighborhood associations, private developers, and citizens all working in�ariaus ways to rehabilitate houses and revitalize neighbor- hoods. The city of Saint Paul has used and is presently using a variety of goverimnent programs for financing rehabilitation through federal, state and local levels. The federal goverriment provides funds for rehabilita- tion through several programs as follows: �a. Funding to local Housing and Redevelopment Authority for 312-115 Loan and Grant Program. A rehab and maintenance loan at low interest • rates or a grant for people with low and moderate incomes. They are available to property owners in designated federal pro�ect areas ' which include all NDP's plus all Code Enforcement Areas, b. The Hane Ownership Program for low and moderate-income families is a program whereby the mortgage is paid while ownership is earned for single-family units, offered by the HRA. � c. Newly suthorized Community Development Funds are available for local rehab programs. . -13- Application Documentation APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION � : SAINr PAUL, MINNESOTA �4��v-�� d. Sectfon 236 subsidy funds for the rehabilitation of multi-family units through Pro3ect Rehab, administered by Community Housing Corporation, for families of low and moderate incomes. e. The State of Minnesota, through its Housing Finance Agency, has autharized a Hame Improvement Program whereby hane owners of low and moderate incomes are eligible for low-interest home improvement loans. f. The Saint Paul Home Rehabilitation Loan and Grant Program, administered by the Housing aad Redevelopment Authority, is available city-wide to eligible home owners of]aw and moderate incomes. The loana are available at flexible interest rates depending upon family income. - A priority of the prograsn is the establishment of a concentrated rehab program in six designated areas of the city. g. The Urban Reim�estment Task Force through its Neighborhood Housing Services Organization offers the use of a High Risk Revolving Loan Fund. Loans are made at flexible interest rates and terms to home owners who do not meet commercial credit standards. The following is a listing of the amounts. of funds available for rehabili- J tation loans and grants; a. City General Obligation Bonds (1) City-Wide - $3.0 million ($1.5 million sold) (2) NDP Areas - $2.0 million (none sold, 1975 Legislature approved) • b. Community Development - Year I (1) Loans - $400,000 " (2) Grants for NDP Areas - $400,000 (3) Grants for City-tdide and Concentrated Rehabilitation . � Projects - $200,000 (4) Citizen Participation/Administration - $732,250 (5) Code Enforcement - $300,000 ' (6) Pro3ect Improvements - $900,000 � c. Minnesota Housing Finance A�ency A reservation of funds system is being proposed. Saint Paul could -14- Applicatio n Documention APPLICATION FOR URBAN HOMESTEADIN�G DEMONSTRATION SAINT PAUL, MINNESOTA ��'�()�� J reserve up to $300,000 - $400,000 for the first six months. This would be for the period fran approximately August l, 1975 to Feb- ruary 1, 1976. d. Leveraging with Local Banks Amount is unknown. 2. At the present time, no final agreements have been made concerning the private financing of rehabilitation. However, the Guidelines of the City Rehabilitation Loan and Grant Program and of the Urban Homesteading Program call for discussions as to the feasibility of such agreements. These discussions have been under way for some time, but certain Iegal questions have prevented any final agreements. Refer to Paragraph 7.4 in the Guidelines and Procedures. $. SUPPORTIVE SERVICES � 1. Technical assistance, counseling, supportive services to be given Homesteaders Homesteaders would have available to them through the HRA the resources of a rehab advisor, a program of maintenance and home ownership counsel- ing similar to that offered under the HOPLIF Program, and financial counseling of the type offered through the City's Loan and Grant Program. Technical assistance and supportive services would also be available from neighborhood associations and from camnunity organizations. The most active community organization in Saint Paul is ths Community Hous- • ing Corporation, a non-profit organization, which offers technical assistance to home owners, assistance to neighborhood groups in getting organized and applying for funds, and the direct acquisition, rehab, and resale �of housing units to low and moderate-income families. 2. Encouragement and/or assistance to be given home owners . Neighborhood associations throughout Saint Paul have initiated a variety of programs intended� to improve the physical and social conditions in y their areas. They have conducted trash collections and ecology drives, and prevented the demolition of older housing units and the boarding up of vacant units. Most importantly, they have worked to encourage their residents to maintain and improve their homes, and to take advantage of the programs available for rehab assistance. -15- Application Documentation APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION SAINT PAUL, MINNESOTA ��`n�� The number of private developers and contractors involved in rehab- ilitation has been growing in recent years. B�cause public agencies cannot do the job alone, their efforts play a vital role in the rehab- ilitation of the area. A number of older apartment buildings in Saint Paul have been rehabilitated privately, as have single-family homes and rowhouses. Rehab assistance groups offer help to howe owners and non-profit hous- ing sponsors. Technical rehab assistance includes and is supplied through: a. Evaluation of rehab work needed, and cost estimates. b. Referrals to rehab contractors. c. Assistance with do-it-yourself rehab. d. Help or referral in applying� for financial assistance. e. Design and architectural services. _ f. Assistance in organizing neighborhood groups. � g. Purchase, rehab, and re-sale of housing units to low and moderate- income families. h. Tool lending "library." i. Arranges moving of houses from clearance areas to new loca�cions j. Financial counseling Rehab Assistance Gr.oups: . � a. Community Design Center. .................... ...... ...a,b,d,e b. Coannunity Housing Corporation.. ....... ... ......... ...d,f,g,j c. Model Neighborhood Development Company, Inc. . . . . . ....a,b,c,d,g,h d. Urban Affairs Commission-Archdiocese of St. Paul. .. ..a,b,c,d e. Urban League of St. Paul. . ... .. .......... .. ... .. . ....c,d,f,g,i ' 3. Adequacy of public services � The programming of public improvement and the continuance of public services has been a part of Saint paul's Neighborhood Development Program and will continue to be part of the Community Development Program. -16- Application Documentation APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION R SAINT PAUL, MINNESOTA ,�;�� The programming of public improvements and services would affect the majority of the homesteading properties becauae most potential hame- steading properties fall within ongoing project areas. Code surveil- lance, enforcement program, refuse collection, street improvements, curbs, gutters, sidewalks, and street lighting are all part of the effort to improve neighborhood properties and facilities. • 3. Source of administrative funds The HRA feels that staff from existing programs can be assigned part- time to perform ths necessary administrative and technical functions for the Urban Homesteading Program. A request for the funding of other administrative costs, fair appraisals, title insurance, etc., will be filed at the tiuse of the Community Develo�ment Mid-Year Review in October. These costs are expected to be modest (approximately $10,000 for the entire demonstration program) and obtaining funding for ti�em should present no difficulty. � F. PROPERTY DISPOSITION 1. Timetable for property disposition EVENT TZMING Inspection - work write-up (City inspection team and HRA 1 week Advertise - (Show house - open house) 2 weeks Accept Applications 2 weeks Process Application 1 week First Lottery 4 weeks Second Lottery � Public Hearing � 1 week Property corrveyance � 1 week � Homesteaders Agreement . Contractors Arrangements - CoQanencement of Work�- within 30 days of the execution of Homesteaders Agreement Completion of Work - within 180 days of the execution of Homesteaders Agreement � The timetable and marketing procedures are discussed further in Section 5.3 of the Guidelines and Procedures. -17- Application Documentation � . • APPLICATION FOR URBAN HOMESTEADING DEMONSTRATION SAINT PAUL, MINNESOTA . n, � G. EQUAL OPPORTUNITY �� 1. Actions taken and procedures followed to maximize equal opportunity and affirmative acCion in demonstration program . The city o£ Saint Paul and the HRA have been and continue to be com- mitted to a policy of non-discrimination on the basis of race, color, national origin, sex, age, religious or political affiliation ia the ' areas of employment, eligibility for programs, and relationships with � firms, vendors, and contractors. During the Demonstration Program, present employees of the HRA will serve as staff. They are subject to the policies and procedures of the HRA's Equal Employment Opportunity Program and the Affirmative Action Program, a copy of which is included. i i In the selection of Homesteaders, the HRA shall not discriminate � i against any applicant because of race, color, national origin, sex; � age, religious or political or other affiliation. Conversely, no ! � preference shall be shown any applicant because of political affili- ation. In addition, there shall be no discrimination against any applicant occupying public housing providing such applicants ar� othezwise eligible for the program. � '18' Application Documentation � CITY OF ST. PAUL URBAN HOMESTEADING PROGR.AM � � �� OVERVIEW � . .Urban Homesteading is a relatively new tool being used by cities to revitalize inner-city neighborhoods, Inspired by the National Homestead and Exemption Act of 1862, Urban Hocnesteading icrvolves the transfer of public property to privaCe citizens at a nominal cost. In return for the property, the Homesteader must agree to construct a new house on the property or to rehabilitate the exist- ing house to meet housing codes. Also included in the homesteader's agreement is a promise to live in the property for a specified period of time. The under- lying principle is simple: The gavertnnent disposes of unused, unproductive property, while simultaneously providing a home ownership opportunity to persons who could not otherwise afford it. Urban Homesteading has proved effective in reducing the inventory of vacant houses in cities where the program has been implemented. Minnesota Session Laws 1974, Chapter 228 enables the creation of an Urban Home- steading program in the city of St. Paul. This legislation allows the city of St. Paul, through the HRA, to sell abandoned homes and open laad which it has acquired, to persons of low and moderate incame for less than fair market value. .The purchasers of these properties must agree to bring the house into compliance � with applicable codes or to camplete new construction within a specified period of time. Following the completion of work, the property is deeded to the Home- steader. In order to avoid personal gain at the public expense, the Homesteader must also agree to live in the property for a specified period of time following the transfer of fee simple title to him. While Urban Homesteading is not a panacea of city revitalization programs, it is an important part in any complete revitalization effort. Attempts at rehabilita- tion of occupied properties in declining neighborhoods have often been thwarted by the blighting influence of adjacent vacant properties. Previously, restric- i.i"vG Zaw� C:viii:nii�ii►� i.iin i.Yai�Siti �i 5ut:�t k)LO1JCl1.LC� 8iiC3 �'i1C CC;dilGiuii: i�iiCa3iuii- ity of both purchasing and rehabilitating severely deteriorated houses hampered local suthorities in their ability to dispose of vacant properties effectively. Consequently, in many areas, the nuniber of vacant houses multiplied and the decline of the neighborhood accelerated. Urban I�omesteading offers one method of effective disposal of vacant properCies, by making the rehabilitation of such properties economically feasible. The city of St. Paul, through the Housing and Redevelopment Authority, will undertake a two-stage program for Urban Homesteading. The first stage will be made possible through the proposed HUD demonstration program. The houses made available through this program are located in three target areas in the city. The three areas are diverse in character, housing type, and exposure Co previ- ous renewal activity. These variations will pravide for the evaluation of the program across a broad range of variables. Based on t�is evaluation, the Author- ity may decide where the program may best be expanded in the second-stage of the program. Monitoring of the program implementation will be the responsibility of the city of St. paul Housing Rehabilitation Program Advisory Co�nittee. This co�aittee, .. composed of representatives from community groups, business and labor interests, public officials and the private financial sector, was appointed to monitor St. Paul's RehabilitaCion Loan and Grant Program. In St. Paul, Urban Homesteading, used in coordination with the SC. Paul Rehabili- tation Loan and Grant Program, implementation of the Community Development Block GranC Program, the Minnesota Housing Finance Agency Loan and Grant Program, the implementation of the Hazardous Building Act, the Neighborhood Housing Services Program, as well as other new and existing revitalizati�n programs, can be instru- mental in achieving the following goals: 1. R�vitalizing of neighboxh oods by increasing their economic vitality; 2. The provision of a hoa�e ownership opportunity for those who could not otherwise afford it; � ov��v�w 2•�S�C�� , 3. The reduction of hazards created by vacant structures; 4. The stimulation of housing rehabilitation efforts where it may not otherwise have occured, and 5. The increase of tax productivity of residential property. ; . _ y . . ��.�� - CITY OF ST. PAUL URBAN HOMESTEADING PROGRAM GUIDELINES AND PROCEDURES 1. DEFINITIONS � :For purposes of these guidelines and procedures, the terms defined in this section shall have the meanings ascribed to them. 1.1 ADVISORY COMMITTEE Shall mean the City of St. Paul Housing Rehab ilitation Program Advisory Committee acting pursuant to any duties or functions assigned to it under these Guidelines and Procedures. 1.2 AUTHORITY shall mean the Housing and Redevelopment Authority of the City of St. Paul, Minnesota, acting pursuant to powers granted it by the City Council and Minn. Stat. 462.415 to 462.711 and any rules or regulations promulgated by the U. S. Department of Housing and Urban Development pertaining to the administration or implementation of the City of St. Paul Urban Homesteading Program. 1.3 CERTIFICATE OF COMPLETION shall mean the document given to the Homesteader by the Division of Housing and Building Code Enforcement certifying that the rehabilitation work has been completed for the property being homesteaded. . 1.4 CITY shall mean the City of St. Paul, Minnesota. 1.5 C�NTRACTOR shall mean any person, persons, associations or corporations performing cons.truction or rehabilitation or providing other technical assistance to the Homesteader for which a fee for services is paid. 1.6 DEMONSTRATION PROGRAM shall mean that portion of the City of St. Paul Urban Iiomesteading Program which is developed, administered and implemented pursuant to anq rules or regulations promulgated by the U. S. Department of Housing and Urh�n npy?lo�menr_ fc,r; or as a conditi.on of the Urban Homesteadine Demonstration Grant. 1.7 ELIGIBLE PERSONS OR FAMILIES shall mean those natural persons or families who fulfill the requirements set forth in these guidelines and procedures for eligibility as a Homesteader. For purposes of these guidelines and procedures, "families" shall include non-blood related adults and tenant cooperatives. 1.8 ELIGIBLE PROPERTIES shall mean any real propertq determined by the Authority to be eligible pursuant to Section 3 of these Guidelines and Procedures. 1.9 HOMESTEADER shall mean an eligible person or family designated by the Authoritq pursuant to these guidelines and procedures to participate in the Program. 1.10 HOMESTEADER'S AGREEMENT shall mean that agreement executed bq and between the Authority and the Homesteader setting forth those conditions, terms and covenants necessary for the conveqance of fee simple title from the Authority to the Homesteader. 1.11 HOUSING RELATED E?�PENSES shall mean the normal and ordinarq expenses related to home ownership, including but not limited to; the principal and interest on any loan for the purchase, construction, improvement or rehatiilitation of the structure and any related taxes, special assessments, insurances, maintenance costs, utilities and the like. � , , � � ��t� ' 1.12 HUD PROPERTIES shall mean those real properties of from 1 to 4 units which are held in possession by the Secretary of the U. S. Department of Housing and Urban Development, and are determined by HUD and the Authority to be eligible for inclusion in the Demonstration Program. 1.13 I2�IEDIATE HEALTH AND SAFETY HAZARDS shall mean those violat�.ons of applicable codes which materially and immediately endanger the health and. safety of occupants or potential occupants of a structure, pursuant to Section 1.14 of the Guidelines of the City of St. Paul Housing Rehabilitation Loan and Grant Program. Such violations include, but are not limited to; a. Heating sqstems that are unsafe due to: burned out or rusted out heat exchanges (fire box); burned out, or plugged flues; not being vented; being � connected with unsafe gas supplies; or being incapable of adequately heating the living space. b. Water heaters that are unsafe due to: burned out or rusted out heat exchanges (fire box); burned out, rusted out, or plugged flues; not being vented, being connected with unsafe gas supplies; or lack of temperature and pressure relief valves. c. Electrical systems that are unsafe due to: dangerous overloading; damaged ar deteriorated equipment; unproper�y tapped or spliced wiring; e�cposed unins�lated wires; distribution systems of extension cords or other temporary methods; ungrounded systems, ungrounded appliances in contact with earth. d. Plumbing systems that are unsanitary due to: leaking waste systems, fixtures and traps; lack of a water closet, lack of washing and bathing facilities; or cross connection of pure water supply with f ixtures or sewage lines. e. Structural systems, walls, chimneys, roofs, foundations, ceilings, and floor sqstems, that will not safely carry imposed loads. f. Refuse, garbage, human waste, decaying vermin or other dead animals, animal waste, other materials rendering it unsanitary for human occupancy, including lack of light or air. g. Infestation of rats, insects, and other vermin. h. All existing handrails that are not permanently and solidly mounted to provide sale service. i. Lead paint that is peeling, chipping or exposed in areas that may be hazaxdous to children and others. �. Conditions of windows, doors and other electrical, mechanical and structural items that are condusive to fire and safety hazards. . 1.14 INCOME shall mean the applicant's or homesteader's combined household annual gross income. 1.15 PROGRAM shall mean the City of St. Paul Urban Homesteading Program. 1.16 SECOND STAGE shall mean that portion of the Program developed and administered by the Authority utiliz�ng sources other than HUD Properties, and not necessarilq sub�ect to the requirements of the Demonstration Program. 1.17 SWEAT EQUITY shall mean any construction, improvement, remodeling or rehabilita- tion of a structure performed without the assistance of a Contractor. ' �_..;.�:� �... :.< -��...:..:�...� , . , ��9�� 2. ELIGIBLE PERSONS OR FAMILIES 2.1 To become initially eligible as a candidate to become a Hamesteader, applicants must meet the following criteria: A. Be at least 18 years of age. B, Pursuant to Minnesota Session Laws 1974, Chapter 228, be a person or family of low or moderate income, whose combined household . annual gross income shall not exceed; . FAMILY SIZE INCOME 1 $16,550 Z 16,850 3 17,150 4 17,450 5 17,750 6 18,050 `' � I8,350 $ 18,650 ; 9 � 18,950 10 19,250 2.2 The Authority, together with the Advisory Committee, shall review these income limits from time to time to determine potential ad,justments. 2.3 Applicants may list any work they could perform through Sweat Equity; however, such information shall not be used by Che Authority in the determination of initial eligibility. 2.4 All applicants shall be considered without regard to race, creed, color, age, sex, national origin, disability, marital status, affectional preference or status regards public assistance in accordanes c�itt, a�i �ppiicabie federal, state and local laws, flrdir.a:.ces and regulations. 2.5 Only eligible persons or families as herein defined shall be a ccepted -- as candidates to became Homesteaders. � , . c��945 3. ELIGIBLE PROPERTIES 3.1 The selection of homestead properties shal�. be based on an investiga- tion by the Authority of the following categorical land iriventories. Selection of properties during the Demonstration Program shall be limited to HUD properties of from l to 4 dwelling units. .Within each category, properties with vacant dwellings shall be given first pri- ority for inciusion in the Program. A. HUD repossessed property . B. Authority-owned property C. City-owned property� . D. County-owned property E. State-owned property F. VA repossessed property G. Privately-owned property 3.2 The property when rehabilitation is completed must be a permitted use under the City Zoning Ordinance and the use must be pernaitted under and consistent with an Urban Renewal Plan, Redevelopment Plan, Development � District Plan or General District Plan if the property is located within an area where such a plan or plans are in effect. � 3.3 As a �general rule, the Homesteader's cost of acquiring the property plus the cost of rehabilitating the structure through this program shall not exceed the after-rehabilitation fair market value of the property. In making the determination of the after-rehabilitation value, the Authority shall take into consideration the extent of improve- ments and rehabilitation taking place in or being planned for in the neighborhood. 3.4 The Authority shall consider properties acquired in urban renewal projects as eligible for transmittal to a Homesteader subject to HUD concurrence during the Second State of the Program. However, the feasibility condition specified in 3.3 above must be met. The sale priee o= zne uniL si►ail conform co Hut� requi.rements. 3.5 The Authority shall work with interested neighborhood organizations � during the process of acquiring properties which the Authority desires to make available through Urban Homesteading. The decision to purchase a property shall be made only after consideration of the sentiment of interested neighborhood groups relative to that property, especially if the neighborhood group submits an alternative use or disposition for that property. � .� ��5 ` 4. 'PROGRAM REQUIREMENTS The Romesteader must meet the following requirements as a condition for parti- cipation in the St. Paul Urban Homesteading Program. 4.1 The Homesteader must agree to complete all required rehabilitation work within a specified period of time. This period of time shall be negotiated between the Authority and the Homesteader, but in no � • case shall that time exceed two years fran work co�nencement. In the case of properties which the Authority has purchased or received from HUD, all required rehabilitation shall be completed in eighteen months. As a general guideline� particularly in cases where all the repairs are being performed by contractor, all work must be completed within six months of the execution of the "Homesteader's Agreement". Extensions to this six-month period shall be granted depending on the extent of the Homesteader's involvement in the rehabilitation of the property through "sweat equity". 4.2 Work shall begin within 30 days of the execution of the "Homesteader's , Agreement". 4.3 Those items defined as immediate health and safety hazards shall be corrected within ninety days from the date of work co�encement. The Homesteader may not occupy the premises until these items have been corrected and the Division of Housing and Building Code Enforcement has cerCified that the structure is fit for human habita- � tion. 4.4 The Homesteader muat agree to permit periodic inspections at �tually agreed upon times by city inspectors and/or the HRA rehabilitation Counselor for the purpose of determining the quality and progress of the work. 4.5 The Homeateader shall agree to maintain the,dwelling after co mpletion rehabilitation so as to satisfy all electrical, plumbing, building, fire prevention and related codes. 4.6 The Homesteader shall agree to carry adequate fire and liab�Llity in- surance on the dwelling at all times. The Authority shall be named � as a co-insured on such coverage until the time at which the hrnne- steader obtains fee simple title. 4.7 The Homesteader shall be encouraged to occupy the property for a period of three years after obtaining fee simple title. Due to Federal legislation, in the case of properties acquired from HUD, the Homesteader shall agree to occupy the property for a period of three years. _ 4.8 In the event the Homesteader sells the property within three years from the date on which the Homesteader obtains title to th� property, the Homesteader shall pay to the Authority a percentage of any in- creased value the Homesteader may receive upon the sale of that property. The amount to which that percentage would be applied would be derived by subtracting the indebtedness which the Homesteader orginally .incurred at the time of property purchase (total of mortgage principal, if any, and rehabili�ation loan principal) plus any expenses incurred by the Homesteader to market the property from the price at which the Homesteader sold„ the property. The percentage paid to the Authority shallbe based upon the following schedule: a. If sold within first year since obtaining title, 90'%; b. If sold during second year since obtaining title, 60�; � � c.� If sold during third year since obtaining title, 30%; In the event of a hardship, the Authority may waive the repayanent pro- vision. Denial of such a request ahall be subject to the appeals process. 4.9 Because this program ia intended to provide homeownerahip opportunities, the liomesteader may not vacate the property and retain ownership of the property and utilize it to produce income. �� ' '�he following requirements will be primarily the responsibility of the Authority. 4.10 Prior to purchasing any property for the program, the Authority shall have determined that rehabilitation of the property is structurally and financially feasible. 4.11 The Authority shall prepare a rehabilitation analysis which details the nature of Che work to be performed as well as estimates of the costs of � � those repairs. This estimaCe shall reflect conaiderations for cost increases which may take place (due to inflation) during the course of the rehabilitation. That analysis shall be available to all interested applicants and neighborhood groups. 4.12 The Authority shall arrange for an inspection by the Division of Housing and Building Code Enforcement of the City of St. Paul to determine that those items defined as immediate health and safety hazards have been _ corrected. , 4.13 The Authority shall arrange for a Certificate of Completion to be issued by the Division of Housing and Building Code Enforcement of the City of St. Paul when the rehabilitation has been performed. 4.14 After comp2etion of the rehabilitation work and a Certificate of Completion has been issued the Authority shall grant fee simple title to the property Co the �tomesteader. Prior to that time the Homesteader shall have leased the property from the Authority for $1.00. 4.15 If, during any time while the agreeci upon rehabilitation is being per- formed, an inspectioa reveals the Homesteader's inability or unwilling- ness to camplete the required work, the Authority may require the Homesteader to coc�tract the work or to vacate the property under the reuredies provided in the "Homesteader's Agreement". Any such requirement shall be subject to the appeals process. 4.16 In the event the Homesteader should be required to vacate the property prior to obtaining fee simple title, the Authority shall make every effort to ensure that the Homesteader is able to recover expenses pncauntered relating to the progress that the Homesteader achieved toward rehabilitating the structure. 4.17 In the event the Homesteader is an awner-occupant of the property in which the Homesteader currently resides, the Authority shall encourage the Hnmesteader to sell that property after assuming occupancy of the homeateaded property in order to relieve the potential burden of maintaining that property. , ��5�4� 5. PROPERTY DISPOSITION The following steps shall be taken during the course of selling properties through Urban Homesteading. 1.. Price esCablishment 2.. General advertisement 3.. Applicant selection 4. Homesteader counseling 5, public hearing 6. •property conveyance . 7. Homesteader's Agreement 5.1 Price Establishment Present Urban Homesteading legislation does not provide the funding to "write-down" the cost of property acquisition, During the Demonstration Program, no funds will be available to write down the cost of homes acquired from sources other than HUD. In the event that additional funds or new legislation allowing write downs become available, and the City � is able to absorb a difference in the cost of the property (to the Cit�) and the sale price (to the Homesteader) , a price will be set that in the City's 3udgment will provide sufficient incentive so that low and moder- ate-incotne persons or families will apply. 5.2 General Advertisement A. The availability of a property through Urban Homesteading shall be publicized on as broad a base as possible. All methods of inedia-- television, radio, co�►unity and city-wide newspapers--should be utilized. . B. As a minimum, public infornaation for each property shall specify: . 1. Street address � 2. Genera2 descripticr. �f hcus2 chara�teristics 3. Cost of property purchase . . 4. Cost estimate of needed work 5. General description of needed work 6. Applicant eligibility 7. How to apply 8. Selection system 9. Potential availability of low-interest loan 5.3 Applicant Selection A. The City is anticipating a significant amount of interest in this program and a large number of applications for each property to be made available. In order to ensure that applications can be processed . in a timely, efficient and equitable manner, a double lottery system � shall be instituted for each property. . B. This double lottery system will function as follows: In the first lottery, twenty applicants' names shall be drawn. The Authority together with interested neighborhood organizaCion representatives pursuant to Section 7.11 of these guidelines and procedures will then consider the applicants to determine those who could qualify for the program. In the event that there is more than one of the twenty applicants who-could qualify, a second lottery shall be held to select the principal homesteader. .C. In carrying out applicaCion selection, the following procedures shall be utilized: 1. properties shall be advertised as being available through this program for a period of two weeks. �f�� 2. For the f.irst lottery, all applications received will be screened pursuant to Section 2.1 of these guidelines and procedures to ensure that the applicant is initially eligible. 3. The names of all eligible applicants will then be placed in a suitable receptacle for the lottery. � ' 4. Twenty applicants names shall then be selected. 5. The Authority staff and interested neighborhood organizations shall then work with these applicants to determine if they could qualify for the property. Authority staff review of an applicant's request for financial assistance through the federal, state or local rehab- ilitation loan program shall be included. In all steps of the process the confidentiality of the individual applicant shall be mafntained. � 6. The twenty applicants drawn in the first lottery will be interviewed and reviewed in accordance with the following criteria: a. As a guideline in deterraining eligibility, the applicant's monthly housing-related expenses after campletion of rehabili- • �ation work shall not exceed 257, of the applicant`s combined household monthly gross income. . b. . Applicants shall be able to demonstrate adequate abilities • and/vr financial resources to undertake the rehabilitation of the property, to maintain it over a period of years, and to otherwise assume the responsibilities of hame ownership. (See Assistance to Purchaser section) c. To avoid creating an overcrowded situation, the Authority shall ensure that the applicant's family size is not too]arge for the structure being offered according to Housing Code requirements. d. Ensure that the applicant is c�illing te satisfy the varicus program requirements.(See Program Requirements section) e. The Authority shall make the applicant aware of his/her option to perform "sweat equity" in order to reduce the total cost of rehabilitation. � 7. In the event that it is determined that there is more than one . applicant from the twenty names lected in the first lottery who could qualify for the property, a second lottery shall be held within thirty days of the first lottery. In the second lottery, the Homp- steader shall be selected. At least three alternates wi21 also be drawn, when numbers permit, in the event the Hamesteader becomes disqualified before the execution of the Homesteader's Agreement. In the event the Homesteader or the alternates are disqualified, twenty more names will be drawn from the first lottery. 8. Any applicant from the twenty names not included in the second lottery shall be given a written statement by the Authority or the neighbor- � hood organization detailing the reasons. 5.4 Homesteader Counseling A. After being chosen as the principal Homesteader, the applicant and Author- ity staff shall meet to thoroughly discuss the various program require- ments. The HRA staff shall carefully explain the "Homesteader's Agree- �gent" to ensure that the applicant understands the responsibilities inher- ently involved in this program. The Homesteader may be represented by legal counsel during all or part of this counseling. �� B. During this counseling period, target dates shall be established for the public hearing and the St. Paul HRA Board of Commissioners action, property purchase and loan closing, work commencement, and occupancy. C. In the event that it appears the "Homesteader's Agreement" will not or cannot be executed with the Homesteader, the first alternate � ' shall become the Hamesteader, and the second alternate shall become the first alternate, etc, Counseling would then comtnence with the new Homesteader. 5.5 Public Hearing A. The HRA`s statutory requirements specify that the sale of all property shall be made after a public hearing. Therefore, after both lotteries have been held, and the property purchaser designated, the sale of the property to that purchaser must be advertised and a public hearing held. Upon approval by the Authority Board of Com- missioners, after conducting the hesring, the "Homesteadar's Agree- ment" shall be executed by the Executive Director and the Chair of the Board. . B. This public hearing shall be conducted and advertised in accordance with statutory requirements. . , 5.6 Property Conveyance A. A property leasing and ]oan closing date shall be established to be as soon as possible after the Board of Co�nissioners authorize sale. of the property. B. Fee simple title �shall be acquired by the Homesteader after cample- tion of all the rehabilitation work. During the period prior to being granted fee simple title, the Homesteader shall lease the structure � from the Authority for a fee of $1.00. C. In the second stage of the St. Paul Urban HomesCeading Program in , the event that $1.00 is not the purchase price of the property, the cost of the property (less the $1.00) may be added to the loan which provides £or the cost of the work being performed pravided that this procedure is in agreement with the guidelines of the program through which the loan is ohtained. D. Every effort shall be made by the Authority to �velop a mechanism for trans£erring title to the Homesteader which shall impose the least possible burden upon the �omesteader in regard to assumiag payment of property taxes, The Homesteader shall not be placed in a position to pay any back taxes. 5.7 Homesteader's Agreement • A. As a condition of the purchase of the property, the Homesteader shall be required to enter into a Homesteader's Agreement setting forth the terms and conditions of occupancy and title conveyance. B. In certain cases, on the basis of need, the Authority may grant a Homesteader an extension of time in which to come into compliance � with the terms of the Homesteader's Agreement and, thereby, avoid reversion of the property to the Authority. However, during the Demonstration Program, such extensions are subject to rules and .regulations. of HUD. � ��59�� 6. ASSISTANCE TO PURCHASER ' 6.1 The Iiomesteader shall be processed for eligibility for a low-interest rehabilitation loan through either a federal, state or local program to provide the financial assistance necessary to achieve the repair of the property. If a locally financed loan is used, the determination of eligibility shall be made by the Authority in accordance with the Guidelines of the City of St. Paul Housing Rehabilitation Loan and Grant Program, excepC that no grants shall be provided to Homesteaders. 6.2 To reduce the potential financial burden, each Homesteader shall be encouraged to perform some of the work. In the event Sweat Equity is being performed, the Authority and neighborhood organizations are encouraged ta seek out, on behalf of the Homesteader, technical expertise in various aspects of the rehabilitation. The Authority will also develop a working relationship with the St. Paul Division of Housing and Building Code Enforcement to assist Homesteaders in making correct and sound repairs. 6.3 The Authority may provide, upon request of the Homesteader, the names of Contractors. However, if a Contractor is to be employed, the choice shall be made by the Homesteader, so long as that Contractor meets the requirements set forth in Section 8 of these guidelines and procedures. ' � � 2�59�� 7. ADMINISTRATIVE RESPONSIEILITIES The Authority, in implementing, administering and carrying out the provisions of the City of St. paul Urban Homesteading Program shall, in additfon to the . . duties, responsiblities, detersninations, functions and other provisions con- tained in these guidelines, be responsible for and carry out the following duties and functions: 7.1 Administer the City Urban Homesteading Program in such a manner so as to complement other public rehabilitation and related programs, _ and not be in competition with or as a substitute for any other public program. Also, the Authority shall monitor the Program, particularly during the early stages of implementation, to detect any trends inconsistent with the fntent of Minnesota Laws 1974, Chapter 228 and HUD rules and regulations. 7.2 Adopt the provisions of these guidelines, further administrative guidelines, procedures and/or rules and regulations necessary to implement and administer this program. To this end the program shall be implemented by the Authority with as few administrative rules and proced'ural steps as possible and should be a corresponding flexible program which satisfies the intent of Chapter 228 and where applicable, � RUD rules and regulations in this regard, the Authority shall recommend to the City Council necessary changes in these guidelines on a con- � tinuing basis. _ 7.3 Coordinate with the Mayor and City Council in the assignment of the City of St. Paul Housing Rehabilitation Program Advisory Committee to act in an evaluation and advisory ca�acity during and after implementation of this program. 7.4 Borrow or leverage monies pursuant to Minn. Stat. 462.415 to 462.711 irom priv�tce ienders �inu tne 'ruire i:o oe ur�ed i:o mi�ke reh�bilii.rsiivn losns and to refinance existing indebtedness under the Urban Homesteading Program, in such amounts, and under such terms and conditions, as the . ' Authority, in coordination with the City Council deems appropriate. 7.5 Provide necessary administrative and technical assistance in carrying out the provisions of the Urban Homesteading Program. 7.6 Coordinate with and, to the extent legally permissible, contract with other state public bodies as that term is defined in Minn. Stat. 462.421 (4) such as the Community Services Housing Code Inspection Division and the City Planning Department concerning the delineation of responsibilities and functions in carrying out the provisions of Minnesota Laws, 1974, Chapter 228 and these guidelines including but not limited to the inspection of residential housing; and the suthorization and delivery of public and other related improvements. 7.7 Coordinate with the City Planning Department to inform interested neighborhood organizations and citizens on the specifics of the Urban Homesteading Program and to disseminate information concerning this program on a City-wide basis. � , 7.8 Provide, an adequate information and referral system, whereby persons and families who are potentially eligible for and desire to avail themselves of other public and private programs and funds relating to rehabilitation ' and homcownership, are given full information concerning the use and availability of such funds and proRrams and proper referral to rehabilitation prograns and administerin� entities. . ��5945 7.9 Provide an appeal or review process and procedures and information so concerning, wherein any person�who feels he or she is aggrieved by the applications of these guidelines may appeal such grievance . • for independent review and determination pursuant to Section 9 of their guidelines and procedures. 7.10 Work with interested neighborhood organizations during the process of acquiring properties which the Authority desires to make avail- , able through Urban Homesteading. The decision ta purchase a progerty shall be made only after consideration of the sentiment of interested neighborhood groups relative to that property, especially if the neighborhood group submits an alternative use or disposition for that property. 7.11 Work with interested neighborhood organizations during the process of selecting the Homesteader and alternates. The Authority shall also inform the neighborhood organizations of the names of the twenty applicants selected in the first lottery. Neighborhood organizations representatives may assist the Authority in familiar- izing the applicants with the various program requirements. In- volvement of neighborhood organizations in this process shall be � eonducted in a manner to preclude a violation of the rights of privacy of individual applicants. Applications may be reviewed by neighborhood organizations with the assistance of Authority staff, provided that names and addresses are removed. All of the above procedures are subject to the consent of the individual applicant. � � _ __ ' ' ��59�5 8. CONTRACTOR PERFORMANCE 8.1 Nothing in these guidelines and procedures shall be construed to limiC or restrict the applicability of state or city laws or ordi- nances relating to the home improvement business or the repair, . . rehabilitation, or improvement of residential property, and all Contractors performing such repair, impravement or rehabilitation must be licensed as required by such laws or ordinances. 8.2 To be eligible to be awarded a contract under the Program, a Contractor must be willing to abide by the requirements demanded of eligible contractors under the city of Sfi. Paul Housing Rehab- ilitation Loan and Grant Program, as follows; A. The quality and workmanship standards required by the Authority. B. The business ethics required while under contract. , C. The proper method of bidding contracts cavered by the Program, as consistent with the city of St. paul Housing Rehabilitation Loan and Grant Program. D. The Authority's arbitration policy for resolving disputes � arising from contract execution. ' 8.3 All Contractors performing work under the Program must demonstrate that they are in compliance with a}.1 applicable laws and ordinances regarding equal employment opportunity. 8.4 All Contractors being. awarded a contract under the Program must provide the Homesteader and the Authority with evidence of a 100� ' performance bond, in the full amount of such contract, effective for one year beyond the date of completion and acceptance by the - :?��teaa�r wr.d the .^.u*_!:orit, of *_t�e a�rL. To *_re �r>t�n� leb�??; permissable, these bonciing requirements may be waived or modified if the Authority determines that the Contractor is "bondable" and that • such bonding requirements will be met within 12 months of the date of executton of the Homesteader's A,greement. 8.5 All work performed pursuant to the Program must be cavered by an Authority approved warranty concerning the quality of materials used and workmanship to be conducted in the performance of such work. The warranty system will be monitored and enforced by the Authority in coordination with, where appropriate, the Minnesota Housing Finance Agency. 8.6 All Contractors performing work under the Program must: A. Carry all adequate, and required by law, insurances. B. Possess all, necessary and required by law, licenses and permits necessary to perform such work. 8.7 Final payment cannot be made tb a Contractor until the Homesteader and the Authority have accepted the eligible rehabilitation or repair work in writing. If the Contractor requests periodic draws on completed work, during the period of such work, such draws must be accompanied by appropriate lien waivers concerning the work completed and will be subject to a 10% holdback on the overall contract. Lien waivers must also be provided prior to making final payment on the completed work 'contract. � . , ��5�� 8.8 Any such holdback shall be used to correct unsatisfactory work and to defray any cosCs required to be incurred by using a replacement Contractor, should the first Contractor be removed from the job by . , the Authority or the Homesteader, pursuant to Section 8.9 of these guidelines and procedures. 8.9 Any Contractor, selected to parti�ipate in the Program, may be removed from the performance of work, if in the determination of the Homesteader with the concurrence of the Authority, such Contractor has failed within a reasonable time to meet the obligations set forth in any contracC thereof, or if such performance is deemed by the Homesteader with the concurrence of the Authority to be inadequate relative to any and all provisions of these guidelines and procedures. 8.10 The Authority shall provide necessary administrative and technical assistance and procedures so that minority contractors and sub- contractors are provided equal opportunity to be awarded contracts to perform work under the Program. S . . ��C�'�3'"�V 9. URBAN HOMESTEADING GRIEVANCE PROCEDURE 9.1 General Pursuant to the authority contained in the Urban Homesteading Guide- lines, Section 7v9 the followfng procedure shall be used as a method of settling all individual disputes arising from the administration � or the application of the City of St. Paul Urban Homesteading Pragram. 9.2 Information Concerning Grievance Procedure A. A Homesteader who has applied to have repayment provision waived due to hardship, pursuant to section 4.8 of the Concept and Guide- lines, may appeal a denial of that request to the Appeals Committee. B. A Homesteader required to contract work or to vacate the propertq under the remedies provided in the Homesteader's Agreement, pursuant �to Section 4.13 of the Guidelines and procedures may appeal the decision of the Authority to the Appeals Committee. C. A Homesteader with a point of grievance over the administration of the Urban Homesteading Program may request a written statement of the Authority's position and information outlining the Grievance Procedure. 9.3 Notice of Grievance . A. Any Homesteader who feels aggrieved by the administration or applica- tion of the Urban Homesteading Program may appeal the grievance to the Appeals Committee. B. A grievance notice shall include the following: 1. Name and address of the complainant; 2. Names of persons or agencies agafnat whom the coaaplaint is made; 3. A statement containing the specific grounds which gave rise to the grievance, including but not limited to specific acts and amissions, dates, locationa and names of witnesses to the specific acts or omissions. 9.4 Conciliation � Within fifteen (15) days after the filing of the grievance notice, the Authority shall arrange for a conciliation meeting with the complainant. Such meetings shall be held at such time and location as is reasonably convenient to the complainant and .shall be for the purpose of explaining and conciliating the matter. Other interested parties or persons may attend the conciliation meeting. Any party can request an additional meeting and no complainant shall have the right to request a hearing und�r Part until after at least one conciliation meeting has been held. Within seven (7) days of the final conciliation meeting the Authority shall provide the complainant and other interested parties with a writ'ten memorandum outlining the results of the meeting. Such memorandum shall also inform the complainant that if they continue to feel aggrieved, they have a right to appeal the grievance pursuant to the provisions of Part and shall include a statement concerning the manner and tfine in which to do so. � � ^ . ��9�5 9.5 Pre-Hearing Procedure I A. Request for Hearing. � ; If the complainant after serving of the memorandum referred to in ; Part 5 still feels aggrieved that person may request the matter be ; heard by the appeals committee. Such a request shall be in writing ' � • and whenever practiced shall be made on a form developed by the I Authority and must be filed with the appropriate office of the Authority within 10 days after receipt of the memorandum. The Authority shall immediately forward the request to the Chairman of , the City of Saint Paul Housing Rehabilitation Program Advisory Committee. Consistent with the provisions contained in paragraph the chairperson shall appoint the Appeals Committee. B. Notice of Hearing. Written notice of the time and place of the hearing will be given the complainant and other interested parties by the Appeals Committee as soon as it is known and in any event at least 7 days in advance of the grievance hearing. C. Pre-hearing Discovery. ', At a reasonable time prior to the hearing the complainant and other interested parties shall be entitled to examine, in accordance with state and federal laws relating to access of records and confidentiality, all HRA and other records pertaining to the grievanee, Any record or part thereof, the examination of which is denied to the person after request, except where access to such records is limited by state or federal law, shall not be introduced or considered at the grievance hearing. � D. Obtaining of Witnesses. Any inceresLed p�xrLy mt�y rrqueai: iti wri�iiig Zii&i. Li�e i�pp�+ii� l,tllt811�.L�.CC or its designee cause to be served a "request for appearance" upon any witness. Such request must be made at least three days in advance ' of the �rievance hearing. If any person, so requested to appear, does not appear at the hearing and submit her or himself to cross examination, that person's testimony or allegations shall not be received into evidence. 9.6 Grievance Hearing A. Time and Place of the Hearing The Grievance Hearing shall be held at a location and time decided by the Appeals C�munittee after cnnsidering the needs and convenience of all persons likely to be involved in the hearing. However, at , the request of any of the parties, Appeals Committee may order the termination hearing be held at another suitable location. Notice of any change in location of the hearing must be given at least 3 days in advance to all interested parties, In any event, the hearing shall be held within 30 days after the receipt of the request for hearing by the chairperson of the Rehabilitation Program. B. Appeals Co�nittee The Chairperson of the Rehabilitation Advisory Conm►ittee shall appoint an Appeals Committeeconsistin� of three persons for each grievance meeting from the members of the City of Saint Paul Housing and Rehab- s ilitation Program Advisory Conenittee. The Appeal Committee members have no conflict of interest and shall be impartial and knowledgeable concerning the procedures contained in these guidelines. The Appeals Committee shall preside oqer and conduct the grievance hearing and . may appoint a presiding officer to rule on procedural and evidentiary ' matters. , . � �� I C. Witnesses, Evidence and Procedures at the Grievance Hearing j Persons who prepared the Notice of Grievance shall appear at the I� grievance hearing and explain to the appeals co�nittee the circum- i . . stances and allegations contained in the notice. Thereafter, should they so desire, either party may cal.l witnesses to testify; cross examine all adverse witnesses, and make arguments. Al1 reliable and trustworthy evidence having probative value may be offered into evidence and should be given weight in accordance with its reliabilitq, Consistent with federal and state laws and rules and regulations concerning confidentiality, reports, records, memorandum, or other documents prepared in the ordinary course of business may be received into evidence unless they are incompetent, irrelevant or immaterial. Hearsay evidence may be received if it appears, in the judgment of the appeals board, to be reliable and trustworthy, and the probative Value, considering the circumstances under which the statement is made. One purpose for the hearing shall be to develop evidence of specific facts concerning the alleged grievance. Nothing in these guidelines shall limit the right of the appesls committee to question witnesses or request information. To this end, the Appeals Committee shall investigate the grievance thoroughly, may call such witnesses as . it deems appropriate and may meet and make the decisions in executive � session. D. Records � Grievance hearings shall be recorded and the tapes shall be preserved by the Authority for one year after the date of the hearing. The parties shall have such access to the tapes as provided by law and may cause the tapes to be transcribed. The party ordering the transcripts shall pay for the same, except where a transcript at no cost may be provided pursuant to Minn. Stat. 563.01. Adequate measures shall be taken to insure that the recoraing is compiete and accurate. Either party may have a stenographer present at the hearing at his or her own expense. ' E. Continuances Continuances of the time or date of any procedure or hearing referred to in these guidelines is to be discouraged. However, if either or both parties request a continuance be granted, or if the appeals board determines, at the conclusion of the hearing that there remains disputes of fact which in the interest of fairness and justice requires testimony of additional witnesses, then in either case the appeals committee may continue the hearing for not more than ten days provided that the rights of either party are not materially and detrimentally restricted or abrogated by such continuance. The appeals committee may subsequentlq request attendance of such additional witnesses. Copies of the request shall be given to all interested parties and the parties right to cross examination and confrontation and the other rights and procedures set forth in these Guidelines shall continue in full force and effect. If any witness so requested to appear does not appear at the subsequent hearing, that person's testimony or allegations ahall not be received into evidence. � F. Representation Any party may hire an attorney to represent him or herself or be represented by any other person. G. Findings and Decision At the conclusion of the grievance hearing the Appeals Committee shall prepare findings of fact, conclusions of law and make them part of � the proposed decision. The decision shall be based only on evidence introduced and received at the hearings and shall addreas itself to to the following: • � � �a r ��4� 1. If the decision to sustain, not sustain or sustain in part the grievance shall be decided by a majority of the appeals conanittee and shall specify the facts which establish grounds for the decision. Such grounds provided in the Concept and Guidelines, Rehabilitation Plan or as otherwise exist by law shall govern the decision and such grounds shall be specified. 2. A statement explaining any appellate rights or other avail- able remedies shall be included in the decision. Within fourteen days of the hearing the decision shall be served upon the complainant and other interested parties. The decision � shall have the effect of a final decision and shall continue in force until or unless it is subsequentlq modified or reversed on appeal. 9.7 Additional Ri��ts Noth�ing in these guidelines shall prohibit any complainant or other interested party from appearing in front of the Authority Board of Commissioners; the Rehabilitation Advisory Com�nittee; the City Council; or appealing to an appropriate court. Provided, however, that except as where elsewhere provided by law, the decision of an appeals committee is final and binding. � -,