Public Hearing Minutes

CDBG Housing Rehabilitation Program Amendment Hearing

Monday October 25, 2010 at 5:45 pm

Warwick Town Coordinator David Young called the hearing to order at 5:45
pm.

Thirteen individuals attended the hearing including a Warwick
Selectboard member, Whately and Warwick Selectboard staff, two
individuals from the housing authority and eight residents of Warwick.
The sign-in sheet is attached and incorporated by reference.

Everyone present had or was supplied with a copy of the one page public
hearing notice.  A reading was waived by consensus.

The reason for the proposed program amendment was discussed. While
forgiving a portion of the loaned amount over time is a change it is not
an uncommon activity design.  HRA staff noted that there is reluctance
on the part of applicants to either participate in the offering or take
on sufficient debt to accomplish needed work. Current contract ends in
Dec. of 2010 and we need to explain how we are going to complete the
work by the end of an extension. Lynn Sibley agreed that getting the
money "out" to the community is important. Chris Ryan and David Young
favored the design change noting that the objective is to benefit low
income residents and making a part of the loan forgivable will increase
the number of applications.

Jan Conover opposed the design change stating that the repaid grant
money is supposed to go back to the Town to use again and that forgiving
50% undercuts the double use of the money. Les Goodman and Kevin Alden,
both Finance Committee members agreed.  After further discussion, David
Young asked those present to indicate by "straw poll" whether they favor
the proposed change. The vote was about 50:50 that all the grant money
should be repaid versus a portion forgiven. Donna Cote stated that the
amendment would include application to change the design for the entire
FY09 program - on loans already made. David Young stated that the
Warwick Selectboard's vote in support of the amendment applies to future
projects only and the Selectboard would have to vote to make this
retroactive to rehab loans already recorded. Jan Conover noted that to
do so would be to reduce the town's future revenue by $60,000 on loans
made already under the FY09 program.

Jan Conover stated that program income repayments have been coming in to
town at a rate of $30,000 or more per year. David Young says the average
since 1980 is about $10,000 per year totaling about $300k.

There was question about the position of a loan following foreclosure
and how many HR loans to Warwick projects have been discharged by
bankruptcy or foreclosure.  Conover in answer to this stated she had
identified two of these. The hearing adjourned at 6:30 p.m.

Respectfully submitted

J. David Young
Administrative Coordinator Town of Warwick