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
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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
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FROM: Sheila Cartney, Assistant Community Development Director-~~
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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. Upon Council direction, staff will later come back to the City Council
with a request authorizing staff to purchase these properties as they come up with out
having to go through a formal Council approval process.
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