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Housing and Redevelopment Minutes Page 3 May 4,2020 • Page 4: Eligible Applicants Ms. Fiorini provided feedback, stating the most straightforward approach is working with a contractor to demolish and rebuild a house on behalf of a buyer. Allowing sweat equity becomes more difficult to apply the cost of work and protection that the work is done to city code. Because the focus of the policy is demolition and building of a property,it did not seem sweat equity could work in this situation. It was the consensus of the commission was not to allow for sweat equity. Eligible Program Costs After discussion,noting recent demolition bids were coming in under$20,000,it was the consensus of the commission to lower the loan program maximum dollar amount from$25,000 to $20,000 towards demolition costs. Terms After discussion, the commission agreed the policy will be more in alignment to require a Certificate of Occupancy (CO) issued, and at that point the initial buyers will sign paperwork the property will be an owner-occupied property, applying for homestead and after that is completed, the loan will be forgiven. The commission discussed potential minimum design requirements, noting the home should require design elements that are more in alignment with the neighborhood it is in, and should include city standards. The consensus of the commission determined the home should have at a minimum 2 car garage, 2 bedrooms, 1.5 bath and have at least 1500 or 1600 finished square feet. Page 5: Forgiveness and Required Appraisals or Assessments Ms. Fiorini discussed the • inclusion of the requirement for obtaining an appraisal was designed to allow the HRA to evaluate and show the value the city is getting from the increase in property values and this requirement isn't legally required. This could be removed if the HRA can decide if an appraisal is required.The consensus of the commission was to remove this requirement and use the assessed value of the property. Call of the Loan—Ms. Fiorini will modify this language and bring back to a future discussion. Commissioner Ovall asked if by removing the five-year component,he asked if there should be a time requirement for completing the demolition and receiving a CO within a timeframe, such as six months to one year. The commission will discuss this topic at the next meeting. Commissioner Chuba requested to discuss situations on how the HRA would handle properties with unique lot sizes that require specific design requirements or if the lot, once demolished,could even be rebuilt upon based upon current city code. 9. Adjournment Chair Toth adjourned the meeting at 6:32 p.m. •