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Full Agenda AGENDA JANESVILLE COMMUNITY DEVELOPMENT AUTHORITY REGULAR MEETING WEDNESDAY, APRIL 15, 2009 5:30 P.M. ** NOTE NEW LOCATION** FIRST FLOOR TRAINING ROOM MUNICIPAL BUILDING 18 NORTH JACKSON STREET JANESVILLE, WISCONSIN 1.Roll Call. 2. Minutes of the Regular Meeting Held on March 18, 2009. “C” 3. Questions and Comments from the Public on Matters Not on the Agenda. 4. Reports: a. Collections Report – First Quarter, 2009 b. Fair Housing Report – First Quarter, 2009 5. Neighborhood Services Director’s Report. 6. Matters Not on the Agenda. “C” Indicates an item that the Community Development Authority will take up under Consent NEXT MEETING REGULAR MEETING WEDNESDAY, MAY 20, 2009 5:30 P.M. COUNCIL CHAMBERS Minutes of the Janesville Community Development Authority Regular Meeting March 18, 2009 Present: Chairperson Jana Vegge, Vice-Chairperson Michael Bachmeyer, CDA Members: George Fenn, Sylvia Moore, Duke Ellingson, Russ Steeber. Absent: CDA Member Yuri Rashkin. Also Present: City Staff: Jennifer Petruzzello, Carrie Clark. Gideon Ngobi, K Andreah Briarmoon, Mark Fuller, Linda & Richard Campbell, Jim Alverson, Gina Smith, Burdette Erickson, Ray Jewell, Tonya Partee, Joyce Shea, Karen Lisser, Jessica Schafer, Debra Swanson, Karl Dommerhausen The regular meeting of the Janesville Community Development Authority was called to order by Chairperson Jana Vegge at 5:30 p.m. The minutes of the January 21, 18, 2009 regular meeting and January 21, 2009 Closed Session Meeting were approved by consent. There were no questions and/or Comments from the Public on Matters Not on the Agenda. Jennifer Petruzzello presented a brief overview of the 2008 Consolidated Annual Performance and Evaluation Report (CAPER) that is to be submitted to the Department of Housing & Urban Development (HUD) at the end of March, 2009. As part of the CAPER, a public hearing is required to gain citizen input. Chariperson Vegge opened the public hearing at 5:37 p.m. There were no comments from the public regarding the CAPER, the public hearing was closed at approximately 5:39 p.m. Jennifer Petruzzello presented a report to the CDA on an application for the Community Development Block Grant Supplemental Disaster Allocation Assistance Program. The Program is being made available through the State of Wisconsin Department of Commerce, Division of Housing to assist local governments that have recently experienced a natural or manmade disaster. As part of the grant requirement, a public hearing is required to gain citizen input. Chairperson Vegge opened the public hearing at 5:44p.m. There were no citizen comments, the public hearing was closed at approximately 5:47 p.m. Under agenda item number 6, a request was heard from Gideon Ngobi, potential purchaser of the Case Feed Building at 922 Rockport Road. Mr. Nogobi displayed a Powerpoint presentation outlining his objectives for the reuse of the building. He indicated that the building would be an ideal location for the Hand in Hand group, a Community Learning Center and the Rock Teen Club. Mr. Ngobi indicated he was requesting $450,000 in CDBG funding to assist with the remodeling of the building. Member Steeber asked staff which programs would have to be eliminated in order to fund his request. Petruzzello replied that most likely the Home Improvement, Rental Rehabilitation, Public Services, and Rehab Service Delivery would have to be eliminated. Member Vegge inquired whether the additional $145,000 in CDBG funds the City is expecting would be available. Petruzzello responded that to date, staff has not been given any direction on what those funds can be used for. After further discussion of where other funding may be available, Member Ellingson motioned to deny the request because Mr. Ngobi has not purchased the building, does not own the building and the amount of the request was too substantial. The motion was seconded by Member Fenn and passed. Under agenda item #7, Clark presented a proposal made by staff to modify the Down Payment & Closing Cost Program and Home Improvement Program manuals to change the current policy on loan subordinations. After brief discussion, Steeber motioned and seconded by Ellingson to approve the changes to the manuals. The motion passed unanimously. Under the Neighborhood Services Director’s Report, Petruzzello informed the members that under the new Federal Stimulus Package, the City of Janesville would be receiving about $145,000 in additional CDBG funding, however it was unclear at this time what the funds could be used for. There being no further business, the meeting was adjourned at approximately 7:12 p.m. These minutes are not official until approved by the Community Development Authority. Submitted by: Carrie Clark, Housing Financial & Rehabilitation Specialist NEIGHBORHOOD SERVICES MEMORANDUM April 10, 2009 TO: Community Development Authority FROM: Carrie Clark, Housing Financial & Rehabilitation Specialist SUBJECT: Agenda Item #4a 2009- 1st Quarter Collections Report Summary Neighborhood Services Staff has traditionally provided the CDA with a collections report detailing the status of our various loans and collection activities. This report will provide a summary of 2009 loan activity. Background The 2009 – 1st Quarter indicates we have approximately $4.1 million in outstanding loans, compared to $4.08 million in the fourth quarter of 2008. Of that figure, just over $1.05 million, or 118 loans, are structured as installment loans, where clients are required to make a monthly payment. The balance, or approximately $3.04 million is structured as deferred payment and/or forgivable loans, where no monthly payment is required. Seventy-five percent (75%) of those clients required to make a monthly payment are making those payments on-time, as agreed. The remaining twenty-five percent (25%) are in various stages of delinquency described in the following table: # Loans 30 days 60 days 90 days 120+ days 5 1 3 21 Collection activities are performed monthly by staff. Activities include sending a letter, of varying degree, and billing statement to each delinquent client. Clients are invited to appear before the CDA at the point they become 6 months delinquent. We are working with outside counsel on a number of foreclosure matters related to a number of Rental Rehabilitation Program loans in default. The following table describes the status of the fourth quarter of 2008 compared to first quarter of 2009. There is no action required on this matter as it is put forth for informational purposes only. Questions and/or comments from the CDA are welcome. 1 Report Data 4 th Qtr. 1 st Qtr. 2008 2009 $Value 1,084,707.39 1,058,554.71 Installment Loans $Value 2,997,194.41 3,049,625.54 Deferred Loans Total $ $4,081,901.80 $4,108,180.25 #Installment 117 118 Loans #Delinquent 30 30 Installment Loans $Value $78,370.63 $89,003.81 Delinquent Loans #Loans 4+ 16 21 pymts delinquent $Value loans $67,197.39 $76,899.31 4+ pymts delinquent Of the total $ delinquency, the majority can be attributed to the Rental Rehabilitation Program where multiple loans have been made to the same client. Included in the number of clients 4+ payments delinquent are those where the first mortgage holder has initiated foreclosure (4), the City of Janesville has initiated foreclosure (4), and the client has filed for bankruptcy protection (1). cc: Jennifer Petruzzello, Neighborhood Services Director 2 Agenda #4b NEIGHBORHOOD SERVICES DEPARTMENT FAIR HOUSING ORDINANCE ACTIVITY REPORT January 1, 2009-March 31, 2009 KL 04/15/09 Formal Complaints: Appears to be discrimination; Filed Investigated Pending Closed complaint filed with City 0 0 0 0 Informal Complaints: May be Received Did not Referred Referred Referred No Referred discrimin-pursue or to Fair to State-to HUD Basis Elsewhere ation; no filed Housing Equal for (Legal complaint elsewhere Council Rights Com- Action, filed Div. plaint etc.) 0 0 0 0 0 0 0 0 Protected Class Involved: Sexual Religion Race/ Age Handicap Marital Sex Family Orientation Status Status Ethnicity 0 0 0 0 0 0 0 0 Types of Action: Refusal to Rent or Sell Termination/Eviction Differing Terms Refusal to Accommodate 0 0 0 0 Inquiries Received: Total Security Refusal Termination/ Code Related Differing Other Received Deposit to Rent Eviction Terms 0 0 0 0 0 0 0 ____________________________ Kelly Lee Neighborhood Development Specialist CC: Jennnifer Petruzzello