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Home My WebLink About2002-02-25 01-117 ORDERItem N002-117 Date: February 25, 2002 Item/Subject ORDER - Establishing a Trust and Agency Account for Park Woods Responsible Department Healtb lk Welfare Commentary: The City was able to accumulate $M,000 in ret sale proceeds from the sale of the surplus housing In the area M Randolph Drhm. Staff recommendaton Is that the proceeds, which w derived from increase! Musing opportunities for eligible persons within the same area that the Pah Woods complex is betted, be used to astonish a Trust and Agency Ax0uM for the opeaMn and maintemnce of the Park Woods complex. The Park Woods complex provides housing and a servimdch environmeri families and indNbuals who are homeless, and wino are willing to enter info transitional activDes Which will land m selfsuffwerrry. By way of background, during the process of selling the aforementioned properties, a number of the sewer ling servicing these hones required repair or replacement. On February 2, Not, the Business and Economic Development Cummittce passed a rescue accepting the Randolph Drire/Maowa l lane policy on private sexier line replacemer. The Park Woods complex currently receives an annual operating subsidy, for "02 this amounted to $29,090. To date, there have been M signi leant maintenance requirements for this complex. However, Bangor Housing Authority In conjunction win the HeaIM It Welfare department has leashed a number of issues that must he addressed within the nen ) years. The projects range from new entrance and stone doors to replacing garage trim and doors and the replacement of roofs and windows. These maintenance used; can be spread out over multiple years, but some of these projects must am foni ImmMately, (i.e. land paint issues). This order would establish a Trust account to act as cine funding mechanism for loth the operating and maintenance costs noccand with the Park Wools complex as well w address eligible private sewer line replacement undl Septmnber 12, 2004. lastly, the trust account would reduce or eliminate park Wool's reliance on the General FUM for furMirg. Department Head Mangers Comments: This was reviewed by the Finance Committee on Febmary 20, 2002. Race? al q/ty Manager (' RRandolphhDrtv¢r /Maxwell Lane Pricy, on private Sewer Line Replacement /11}fR7i1 f k11 S-6onsh ' Budget Approval: Finance Dlrecl0r Legal Approval: So kilter Introduced for _X Passage _ First Reading Page _ of Raferrol a`^ Assigned to Councilor Palmer February 25, 20o2 CITY OF BANGOR me (TREE.) ORDER, Establishing a Trust and Agency Amount for park Woods By the Ory Ciowm yoftlre 02Y oyOxw. WHEREAS, dre On, of Bangor necemily completed the sale of 51 unbs of feceml surplus housing on Randolph Din", Union Sbeet and Maxwell lane; and WHEREAS, the sae Of s units resulted in appmxinudely$168,000 in net sale pnx ds; and WHEREAS the Oty mauveA 0 units of Musing pursuant to the MOOnie Honeiess AmIkM eAQ, now known as Pah Woods; and WHEREAS, khe park Woods complex povkks omn0tional housBg for homtlem families and iidWidwit; and WHEREAS, the cest aoperations and maintenance of the Park Woods complet In excess of the rents recehetl are currently funded though a General Wnd WMM subsidy; BOW, THEREEOBE• BE R ORDERED•THAT: Nae is hereby estaWisheci a Tmst and Agency Account far the Operation and Maintenance of the Pah W ownpkx. The M sale proreeds fi an the sae of the 51 units of Miami sur&s IxMsirg and Interest eamirgs theeon will provide the corpus athe trust account Undl September 12, 2000, fulls may he expended in as rdance with the Nbrary J, 2001 msoke of Ole Business and Economic Development Committee fn eNIW sewer line rgAacements In the Randolph Drim Union!bee[ and Hanwell lane propMks. All other funds may M expended tom this account alter automation by the City Council, for the nonunion and maintenance athe Park Woods complex. W CIn COUNCIL £ February 25, 2002 Notion Made and Seconded 02-I17 for Passage ORDER Passed Title, Establishing a Trust Asency Accomt I1Y CL far Park Woods Assigned to �Councilor 061- p"r — Summary of ARivity Surplus Housing FY 98 FY 99 F1' 00 %Ol Fy 02 Total Swurwa Sae Proce s -Gmss Non WK 112,35848 1,50,820.62 80$27.74 59,438.49 2,517,893.31 Bond Pmffis - 1,320,000.0 1,370,00.00 Interest on Bond PrORedS 6,554.49 0.22 - - 6,55911 MSG Funds 09)54.14 Other 39800 398.00 Tool 1,498,912.95 1,541,218.84 805,27504 59,43BA9 4,584600.16 Uses oepanmmGl - 3,984.28 8].]4 597.00 1,3o1.n 5,9N.n Fud 011 - 2,20.93 190IBG20 8,811.47 76.0 30,324.69 Elec ty - 6,678.38 6,652.21 2,304.35 II.m 15,707.64 Misr - 593.45 2,764.78 1,0]8.3] 54.59 4,491.19 Seger - BN.SD 10,343.09 13,598.33 6,210.27 31,02.19 Lawn Wre - 7,624.00 9,084.14 3,644.0 36fi.50 20,718.94 Imurance 8,919.70 5,542.0 20619.n In.n 17,235.62 Munson - 10944.28 11944.28 Code Entanemv0 120.50 - IM.OB Pubk Wogs 40260.00 5,127.15 - 1,424.9 168.0 11,09.33 EnglnaMg 50526.7 15,720.45 21, 84 Mlmlewus - 24.00 - - 24.00 Buildup MguUb n - 1130,W0.00 - - - 1,300000.0 legal SeMw BwN Cowl - 3,023.62 3,023.62 C a&no lSaNnR - 3,719.26 - - 3,719.26 Engnevin9 - 7,558.40 50.0 - 8,127.70 atlwmnraMn - - 689,754.14 WnvvLKtlm 48,3M.00 4],69].0 10200.110 9],26].00 9g86.n 7016,60.70 101,927.36 35,3]6.0 8,3]3.]4 2,261,85.93 pebtsemise FTnelpal - 1,07,60.19 362,313.81 1j70,00.00 Inerest 25,0537 54,010.70 61883.95 0,78p.02 25,885.37 1,061,696.89 369,19].]6 1,456,]8,02 (9,]8639) 46.420.18 32].594.59 40p,BO1.OB 51,06475 06,099.21 U-11] RANDOLPH DRIVE/MAXWELL LANE POLICY ON PRIVATE SEWER LINE REPLACEMENT For Homebuyers BELOW 80% of Area Median Income for their family size: • Up to 90 days after purchase: The City will take full responsibility for any repairs necessary to permit proper long-term function of the private sewer line. • 91-365 days after purchase: The City will offer through its Community Development Residential Rehabilitation Loan Program a 0% interest Deferred Payment loan, secured by a mortgage. This loan would be due on sale of the property, or could be repaid anytime at the choice of the owner. • 366 days — 3 years after purchase: The City wlll offer through its Community Development Residential Rehabilitation Loan Program a 3% interest Deferred Payment loan, secured by a mortgage. This loan would be due on sale of the property, or could be repaid anytime at the choice of the owner. • After 3 years: The City will offer loans through Its Community Development Residential Rehabilitation Loan Program using the terms current to the Loan Program at that time. ➢ For Homebuyers ABOVE 80% of Area Median Income for Meir family size: • Up to 90 days after purchase: The City will take full responsibility for any repairs necessary to permit proper long-term function of the private sewer line. • 91-365 days after purchase: The City will offer (from a "set-aside" from sale proceeds) a 3% interest, up to 20 year ban, secured by a mortgage. • 366 days — 3 years after purchase: The City will offer (from a "set-aside" from sale proceeds) a 6% Interest, up to 20 year loan, secured by a mortgage. • After 3 years: Homebuyers will have to pay for the repairs themselves. APM M'&mness 8 Eamamic DWWIPwa Oznmi(tre Wthe a3� Qty, Co /Febnrary 1,"1