HomeMy WebLinkAbout10/28/1997 Adjourned Meeting 4
CITY OF YAKIMA, WASHINGTON
OCTOBER 28, 1997
ADJOURNED MEETING
The City Council met on this date at 7:30 a.m. in the Second Floor
Training Room at the Police Station /Legal Center, 200 South 3rd
Street, Yakima, Washington. Council Members present were Mayor Lynn
Buchanan, presiding, Clarence Barnett, Henry Beauchamp (present after
7:35 a.m.), Ernie Berger, John Puccinelli (present after 7:40 a.m.),
and Bernard Sims. Council Member John Klingele was absent and
excused. Staff members present were City Manager Zais, Assistant City
Manager Rice, City Attorney Ray Paolella, Glenn Valenzuela, Director
of Community and Economic Development; Bill Cook, Office of
Neighborhood Development Services Manager; Larry Peterson, Assistant
City Attorney; and Deputy City Clerk Skovald.
Mayor Buchanan welcomed everyone and opened the meeting.
Bill Cook, Neighborhood Development Services Manager, noted that at
the September 16, 1997 Adjourned Meeting, the City Council requested
clarification about several properties which were included in the
Single- Family Rehabilitation list. The Council also requested a
comparison of Yakima's median income to the national average median
income. Additional information about the possible consideration of
selling the housing portfolio and possibly creating a Housing Trust
Fund was also requested. All of these issues are addressed in the
staff report for this meeting; however, a formal report will be
prepared and brought back after the first of the year. Council Member
Barnett requested a definition of the term Housing Trust Fund be
included in that formal report along with what it entails and how it
operates. Mr. Cook explained the creation of a housing trust fund
would be just one of several options for Council to consider should a
decision be made to sell the portfolio and invest the proceeds in
housing programs.
Mr. Cook then outlined his objectives for improving the City's
residential loan program. Those include maximizing private dollars to
,repay City funds; implementing support programs and contractual
obligations to continue the incentive for private investment; and
focusing on efforts to improve properties within target neighborhoods
which will have the most positive impact on the community. Mr. Cook
also summarized his recommendations to maximize federal dollars. He
suggested an income review of the homeowner after five years to
determine any change in income; he suggested a maximum dollar amount
per project be set, perhaps $20,000 per request. During discussion
among Council members and staff it was noted that the amount needs to
be in proportion to the value of the housing in relationship to the
neighborhood. Council also questioned whether $20,000 would be
adequate to improve some of the houses to a livable condition. Mr.
Cook reported past experience shows the average investment has been
approximately $50,000, and a $20,000 limit would encourage more
financial participation from the homeowner. The Council also
discussed the type of housing which would be rehabilitated and the
typical improvements included in a rehabilitation application.
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ADJOURNED MEETING: - - OCTOBER 28, 1997
The topic of discussion shifted to the deferred loan repayment program
and the need to establish a minimum pa The original purpose for
the housing program and the deferred loan program is to allow low and
moderate income people to participate. A review mechanism is needed
after the homeowner gets into the house, perhaps every three to five
years, and payment reminders would also be beneficial. A suggestion
was also made that a share of the profit should be paid to the City if
a house sells before the deferred loan is paid in full. In the past,
multi - family housing loan assistance was provided to upgrade
dilapidated rental units. Currently, those are no longer available;
however, during discussion a suggestion was'made to determine how many
people have both a single - family loan and a multi - family loan through
the City's housing programs.
Another issue discussed was the loan approval process and the very
good record with a low number of foreclosures and defaults of loans.
This is attributed to the staff knowing the HUD process; however, the
legal documents need to be c'reviewed on a regular basis to address
problems, i.e., environmental issues that can arise. Currently, all
documents are administratively reviewed, but formal delegation of
authority needs to be given to the City Manager to oversee the loans
and to ensure Legal Department review of contract documents.
Mr. Cook the following objectives to improve the City's
Residential Loan Program: (1) To maximize the leverage and the
recapture of dollars; (2) to assure the homes remain a long term
investment in the neighborhood; (3) to lay out careful policies and
procedures so everyone knows how they work; (4) to minimize the risk
to the city, and (5) to maximize the benefit to the community.
Other topics discussed by the Council include the Convention Center
parking project and the Acquavella adjudication case. It was MOVED BY
SIMS, SECONDED BY BEAUCHAMP, TO ADJOURN THE MEETING AT 8:45 A.M. The
motion carried by unanimous voice vote.
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READ AND CERTIFIED ACCURATE BY:
dO CIL MEMBER DATE
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COUNCIL MEMB2' DATE
ATTEST:
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CITY CLERK LYNN BUCHANAN, MAYOR
Minutes prepared by Deputy City Clerk Skovald. An audio tape of this meeting is available in
the City Clerk's Office
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