inspector was at the property on January 15, 2023, and a compliance report was just
given to me today.
We acknowledge that no cash deposit has been made. However, there is No Cash
Deposit if property is being rehabbed by the City department of planning and economic
development. St. Paul Code Sect. 33.03 (5). MN Housing again asks to have a similar
exempt status due to the similar nature, purpose and governmental function of our
state agency and the City. On the Order to Abate, the City gave until January 11, 2023
to address the code concerns. As I stated before, MN Housing became owners on
December 7, 2022. This gave MN Housing about a month as the property owner to
address the concerns. As a state finance agency, MN Housing does not have the
legislative authority necessary to restore the building to a habitable condition prior to
sale. MN Housing is a state agency and does not have a program that provides rehab
for properties the agency owns due to foreclosure. The rehab programs funded by MN
Housing are for individual, low-income homeowners to receive forgivable loans to hire
contracts to complete the rehab work - this is our Fix Up program. Since we are an
agency and not an individual, we couldn't access the Fix Up program for Loeb - we
can't loan to ourselves as we don't qualify as an eligible homeowner.
After a foreclosure, MN Housing will retain ownership only as long as it takes to sell
the property. Our goal is to get properties back out in the market for other low-income
homeowners. We have a wide array of first time and low-income programs lenders can
access for the benefit of the homebuyer. MN Housing is not in the business of flipping
and does not repair homes in preparation for sale. MN Housing does not do any rehab
work prior to selling- we don't have the capacity or the enabling legislation to do such.
Everything we do must be authorized by statute or rule- we can't function outside that
authority. MN Housing listed the Loeb for sale on January 19, 2023. MN Housing
retained a realtor to list the property. MN Housing had a lot of interest from the
community including several buyers could wanted to rehab it for re-sale. However,
when we disclosed the sale limitations of a Category III, the buyers backed out.
I did contact the City regarding a sale addendums. However, the typically used by
private owners are not within MN housing's scope of practice. The sample addendums
provided by the City create a lease- a landlord/tenant relationship- that allows use of
the property for improvement without ownership. MN Housing does not have the
capacity, resources or enabling legislation to become a landlord and oversee the rehab
of a property.
Moermond: I can give you a few answers right away. I agree that MN Housing could be
considered to have a similar mission and be a partner org to the HRA. If the HRA did
the rehab they have been subject in their interactions with purchasers that they have to
post the $5,000 Performance Deposit. That part of the code applies here too. If you did
the rehab, you wouldn’t have to do post it. If they transfer to anyone else, that entity or
person must post it and do all the conditions I spoke about earlier.
Moermond: I agree that MN Housing has a similar mission as the Housing and
Redevelopment Authority. That is clear. If the HRA were to be undertaking a
rehabilitation they have been subject in their interactions with purchasers that the
purchaser has to post the $5,000 Performance Deposit. Any requirement in the Code
that applies to anyone else, applies here. You, if you were to do the rehab would not
have to post it. If the HRA itself does the rehab they would not have to post it. If they
transfer to anyone else, that entity or person has to post it and do all the other
conditions associated that I described earlier.
With respect to making it a Category 2, no. That has never happened. Once we are at
this stage, we move forward with it as such. Am I willing to look at time? Yes, a
reasonably shorter window of time than six months. I’m concerned about one of the