Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Monday, August 4, 1997 - 6:30 p.m.

Members present: Beach, Polovitz.

1. Matter of rental rehab. loans.
Terry Hanson submitted updated listing to the committee and reported that three applications received today and not listed. He reported that 212 applications totaling $2.78 million have been received, and have $1 million in funds from State and would like to propose to committee to proceed and start process in order as received and move down list until funds gone. He stated they have sent letter to the Governor requesting an additional $2 million from State to fund this program; if find money will continue to fund or propose to bring back utilization of supplemental CDBG funds to fund the difference. He stated that under this program have to have physical damage but use funds to repair more than physical flood damage (can repair windows, reshingle, etc.) or to pay off SBA loan with this money; and reviewed process (ap. des-cription, inspection with progress payments, etc.) He noted they would inform SBA of all advances on this program, so if they want to reduce loan by that amount. Committee stated that they had talked about sworn statement that not duplication of funds.

Beach asked if they fund this are they funding existing rental rehab. program with different source of funding. Mr. O'Leary stated it's rental rehab. program with new flavor, doesn't require match but essentially same program. He also stated that program income under this targeted to same uses as original program, similar except low/mod. benefits reduced, and doesn't know who will monitor that.

Mr. O'Leary suggested they process in order received; if city council allocates out of CDBG funds, major problem is it activates other kinds of regulations; rules change under supplemental application; however, low and mod. not apply if waiver signed.

Moved by Polovitz and Beach that we process rental rehab applica-tions in order received and fund in the same order, provided qualifications are met, up to the State Small Cities grant of $1 million or the depletion of program funds. Motion carried.

Committee questioned if they would need motion to cut off applications at specific date - that no additional applications will be considered unless additional funding appropriated. It was noted that applications still are being received. Committee stated that we have as many applications as funds available and those will be given priority for those funds. No further action by committee.

Moved by Polovitz and Beach to adjourn; meeting adjourned at 6:55 p.m.

Alice Fontaine, City Clerk
Dated: 8/05/97