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HomeMy WebLinkAboutJune 16, 2008 Emergency Meeting CITY OF COLUMBIA HEIGHTS 590 dOth Avenue N.E., Columbia Heights, MN SSd21-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Weh.cite ut: ~rn~w.c•i.cohrnrhiu-hr~i,~irt.c.nrn.rc.+' CITY OF COLUMBIA HEIGHTS EMERGENCY MEETING IMMEDIATELY FOLLOWING THE 6:15 PM SPECIAL EDA MEETING CONFERENCE ROOM 1 AGENDA ROLL CALL/PLEDGE OF ALLEGIANCE 2. CONSIDER PURCHASE OF HUD HOME AT X4011 5r~~ STREET 3. AD.TOURNMENT Walter R. Fehst, City Manager THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRItt'1INATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SF_RVIC F_S EQUAL OPPORTUNITY EMPLOYER JI:»or: CITY OF COLUMBIA HEIGHTS <'m}L. Peterson Councilmembel•s: I3rucc Nall rocki 590 40th Avenue N.E ., Columbia Heights, MN SSd21-3H78 (763) 706-3600 TDD (763) 706-3692 Bobby Williams /(Sf( ~)!fP ~~('~J.1'(IC' ((C: lt'N'lt'.('LCO~I(Ill ~Il (l-~iPl~f; ~l (.1'. 1711i.1(.S Tammera I~leillll Bruce Kelzenberg Cih ~lanagcr: Walter R. Pehst COLUMBIA HEIGHTS COMMUNITY DEVELOPMENT DEPARTMENT DATE: June 16, 2008 TO: Mayor and City Council CC: Walt Fehst, City Manager Scott Clarlc, Community Development Director _, ~ FROM: Sheila Cartney, Assistant Community Development Director-~~ .~ RE: Requesting authority to purchase HUD home for $1 The city bas the opportunity to purchase asingle-family borne for $1, plus the cost of closing costs and any assessments. This opportunity is possible through the HUD "Good Neighbor Program." This memo will provide background on this program, a timeline, intentions for the property and a budget. Staff is requesting approval of this purchase. Backgrorntd On Friday June 6, 2008 it was brought to our attention that there is a HUD program that allows cities to purchase a home for $1.00 plus closing costs and any assessments. The program is lalown as "Good Neighbor Program." HUD owned homes become available to local governments if they have been on the market for a minimum of 180 days. The program is to expand its partnership with local governments in helping to foster housing opporhmities for low to moderate income families, and address specific community needs. HUD conh~acts the marketing and management company Best Assets for this program. Property located at 4011 5`i' Street is available for purchase through this program to the City of Columbia Heights. The house was listed for $99,900.00 when on the market for public sale. Ti»~eline Best Assets advertises on their webpage when these homes are available for this program. Homes are available exclusively for purchase by local governments for 10 calendar days, or by the deadline indicated on the listing. hi this case the deadline is June 17, 2008 for a sales contract to purchase the single-family home at 4011 5`i' Street Staff is currently working with Best Assets on this transaction. Best Assets is aware that the City Council approval is necessary. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SF_RVICES EQUAL OPPORTUNITY EMPLOYER City hltentions Best Assets had a property inspection completed on October 17, 2007, based on that report and a visual inspection by staff; we would recommend the house be demolished if ptu•chased by the city. Listed below are some of the major reasons to support this conclusion (if Council members would like a copy of the Best Assets report, it is available in the CommLnit~~ Development Department, photos of home are attached): • Mold is present in walls • Extensively damaged ceilings, cabinets, doors, flooring, carpet and walls - needing replacement • All siding and windows need replacement • Roof may need replacement, including gutters and down spouts • Patio area should be removed due to damage • Light fixhu•es are damaged • No major appliances in house Blldget Purchase: Staff anticipates the cost of overall purchase will be $17,000.00. This amount includes the purchase price of $1.00, anticipated closing costs a $36.00 assessment and demolition costs. The newly formed housing fund created in 2007 will finance this project. Recolltlnendatioll Staff recommends the City Council approve the purchase of this property as presented in this memo. 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