minhpd 09-07-21 - Laserfiche WebLink

Home Browse Search

developer/contractor they're in negotiations with now has a good track record in that area. Director Leininger added that the city will provide oversight. Chairman Shachner weighed considerations of the historic integrity of the street versus affordable housing. He questioned whether the city could use HOME funds to make the property affordable. Director Leininger stated that 6 of the city's properties will be listed at market value and 3 will be affordable in nature. The conversation then focused on the importance of time in the process due to the property's current poor condition. While the property is not in danger of collapse, it could continue to deteriorate and be an eyesore in the neighborhood. If not for the rehab, the city would have to pay for the demolition of the home. Director Leininger noted that any property can be made affordable with enough subsidy. Federal money can be used to help subsidize the construction, as the home has significant issues. However, the city is not in a position to put HOME funds into 1462 Belle, so the market is tasked with repurposing the property. This frees up HOME funds to be used for other properties. Councilmember Kepple asked why the city can't use the HOME funds for demolition. It was indicated that the city is trying to stretch HOME funds as far as possible and use limited resources. Ms. Kepple followed up with her understanding that the city is donating the value of the land and the physical structure toward the rebuild. She asked if it was within Lakewood Alive's capacity to supervise this project. Ms. Urbanek replied that the redevelopment provides learning opportunities for the community via Knowing Your Home workshops. She will monitor the progress at the property in partnership with the developer. This is the fourth such project that the city has undertaken. Councilmember Shachner inquired whether ARPA funds could be used to supplement HOME funds for properties in this situation and whether ARPA funds would be used at this location. Director Leininger indicated that ARPA funds would not be used at 1462 Belle, but would be put towards housing assistance related to COVID-19. Councilmember Rader asked whether the city had received an insurance payment related to the home. Mr. Leininger confirmed that it had. The conversation then focused on the chain of title. Lakewood Alive will receive a fee for the transfer of the property, which covers initial upfront costs of the property and a modest profit. The deed of the property will require rehabilitation of the home within 365 days and language will be crafted to communicate the desire to preserve historic elements within the project budget. Councilmember Kepple stated she would rather see Lakewood Alive receive compensation for the project and asked that the organization be fairly compensated in the deal. Chairman Shachner stated that in comparing historic preservation and affordable housing, he would err on the side of affordable housing, however he trusts that this deal will work out as intended and will defer to the judgment of the Planning Department. 2