5. HRSR 08-05-2013 - Laserfiche WebLink

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HOME FOR GENERATIONS A home remodeling program & exhibition Purpose In 2008 the Coon Rapids City Council directed the implementation of a program to buy a series of older single family homes,remodel them to contemporary standards, and showcase them to the community as demonstrations of how 1950's and 60's era homes can be updated to meet the needs of modern families. Homes that are facing or have fallen into foreclosure are ideal candidates for the program, as rehabilitation of such homes will stabilize neighborhoods and allow for a larger project budget. Process Team The Program Team will include City staff members familiar with the acquisition,financing, and remodeling process. In addition, staff will involve several private sector parties to assist in the process;these include a design/build construction firm and a real estate broker. The design/build firm will be selected based on requests-for-qualifications. Staff knowledge of the firm's work product as well as understanding of and commitment to the Scattered Site Remodel Program will be determining factors in the selection process. The firm will be involved in the selection of properties, development of project budgets,and the actual remodeling of the property. Similarly, a real estate broker will be selected based on requests-for-qualifications. Staff knowledge of the broker's work product, commission or fees,and understanding of and commitment to the Scattered Site Remodel Program will be determining factors in the selection process. The broker will be involved in the identification and selection of properties, advise on the project budget,which will include projecting a final sales price,and the marketing of the property to potential buyers. Criteria for Purchase Ideally,homes that are in foreclosure and/or are sitting vacant will be pursued for purchased. Homes in or near target neighborhoods are of particular interest. However, candidate homes must be structurally sound and able to be remodeled in such a way that value is added to the property. For example,especially small or slab-on-grade homes may not be good candidates, particularly if their deficiencies cannot be overcome within the project budget. Sources of Funding The Coon Rapids HRA is proposed to purchase and fund the remodeling of the first several properties. Once the program has several successful project proformas completed,the Mortgage Assistance Foundation may be approached to fund the program. It is anticipated that project properties will be purchased for$100,000 to $125,000 and then sold for$180,000 to $190,000. This will provide remodeling budgets of approximately$55,000 to $90,000. It may be possible to identify grant dollars that somehow assist the project,particularly if an eco-sensitive component exists. Additionally,the private sector partners may be willing to reduce labor costs and fees to extend the project budget if they are able to promote their involvement with the