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HomeMy WebLinkAboutResolution 94-44RESOLUTION 94- RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF COLUMBI& HEIGHTS, MINNESOTA APPROVING IHPLEHENTATION OF SHEFFIELD CDBG/HOHE DUPLEX CONVERSION AND O~ER OCCUPIED REHABILITATION WHEREAS, the City of Columbia Heights (hereinafter referred to as the "City") has received a grant of $120,000 (matched by $30,000 of local funds) through the federally funded HOME Program for use in renovating duplexes in the Sheffield Neighborhood into large single family houses; and WHEREAS, the City has allocated $249,010 of its FY1994 federally funded Community Development Block Grant (CDBG) allocation from the Anoka County CDBG Program for Acquisition and Clearance of Deteriorated Properties ($139,000) and Single Family/Duplex Housing Rehabilitation ($110,010) with use of the Acquisition funds restricted to the Sheffield Neighborhood until June 30, 1995 and with the owners of property in the Sheffield Neighborhood to receive preference over others for loan/grant funds through the CDBG Rehabilitation Program; and WHEREAS, a limited portion (up to $30,000) of the FY1994 CDBG Single. Family/Duplex Housing Rehabilitation is needed to complete housing rehabili- tation projects that the HRA has in process outside of the Sheffield Neighborhood and a portion of the FY1995 CDBG Program funds could be used in the Sheffield Neighborhood if needed; and WHEREAS, it is desirable to have housing rehabilitation programs for low income and non-low income property owners who occupy their property (duplex or single family) in the entire Sheffield Neighborhood with preference given to those with homes immediately adjacent to the "Target" block area (4600 Blocks of Pierce and Fillmore Streets); and WHEREAS, the City currently owns duplex units at 4519-21 and 4535-37 Taylor Street N.E. and 4531-33 Fillmore Street N.E. which are to be the first three (of up to eleven) duplexes to be converted to single family units; and WHEREAS, the architectural firm of Dovolis, Johnson & Ruggieri, Inc. (hereinafter referred to as the "Architect") has been involved with the City in preparing preliminary plans for the renovation of duplexes and has agreed, after substantial negotiation, to provide plans and specifications for the renovation of the three initial duplexes for $2,995 for each of the duplexes; and WHEREAS, the plans and specifications prepared by the architect will be usable with minor revisions on the other duplex conversions; and WHEREAS. the initial three (and any future) duplexes renovated into single family houses will be sold and the plan is to sell the houses (for $84,900 or appraisal value after renovation, whichever is less) via a lottery system with preference given to residents of Columbia Heights; and WHEREAS, the proceeds from the sales of the renovated units is to be deposited into a duplex renovation revolving fund to acquire and renovate additional duplexes into single family homes in the Sheffield Neighborhood; THEREFORE BE IT RESOLVED by the City Council of the City of Columbia Heights that it approves and City/HRA staff are authorized to implement programs as approved here and in the 1994 HOME and CDBG Programs (as previously approved by the City Council): (1) Use of up to $30,000 FY1994 CDBG Single Family/Duplex Housing Rehabilitation funds for completing rehabilitation projects in progress from Tamilies outside of the Sheffield Neighborhood with the understanding that ~e amount used outside of the Sheffield Neighborhood Will be replaced by _ _1995 CDBG funds after July 1, 1995 (if needed in the Sheffield Neighbor- hood). !2) Establishment of single a family and duplex owner occupied rehabilitation program with preference to those immediately adjacent to the Target Block of the 4600 Block of Pierce and Fillmore. In addition to assisting low income homeowners under the CDBG funded rehabilitation program, non-low income homeowners (single family and duplex) will be assisted with up to $50,000 of funds from the sale of City owned residential properties located outside of the Sheffield Neighborhood. Staff, with concurrence of the City Council, is authorized to grant loans with 2% interest and terms of up to 10 years to owner occupants of duplexes and single family homes in the Sheffield Neighborhood to enable them to complete interior and or exterior improvements to their properties. Preference is to be given to properties immediately adjacent to the "Target Block" area. Loans of up to $5,000 are authorized with those over $2,000 to be secured by mortgage against the property and those under $2,000 secured by a Promissory Note. (3) In regard to the duplex conversion to single family program in the Sheffield Neighborhood the following, in addition to those guidelines approved in the FY1994 HOME Program Application, are approved: (A) Families for ownership of the renovated homes will be selected by LOTTERY with preference given to Columbia Heights residents. (B) The price for the renovated houses will be established as the lower of the appraised value after completion of the renovations or $84,900. (C) The proceeds from the sale of converted properties is to be deposited into a duplex renovation revolving fund for aquisition and renovation of additional duplex units in the Sheffield Neighborhood. (D) The City Manager is hereby authorized to contract with Dovolis, Johnson &t Ruggieri, Inc to have them prepare the plans and specifications for he initial three duplexes to single family houses with two car garages for a fee of $2,995 each for a total cost of $8,985. Approved this 18th day of July , 1994. Motion by: Ruettimann Seconded by: Peterson 'Voting Aye: Jolly, Nawrocki, Ruettimann, Peterson. Sturdevant Voting Nay: None Absent: None ATTEST: /,/omnne ~4City Council Secretary //i ose~h' Sturdevant ts Mayor