Hall: I am project manager for HUD. I received a notice from the previous FSM and
they didn’t’ do anything about it. That was before it came to HUD. It looks like we got it
February 5, 2024. Everything you are talking about is from 2023?
Moermond: the tree removal happened April 2024.
Hall: April it was with a different FSM. April 9, inspection ongoing. Ok. Like I said we
got this into our inventory with HUD July 18. It became our maintenance liability then,
to take care of it until it sells. It has a current offer. I don’t want anything like this to
hold up the seller so we can get someone in there. I wanted to see if it was possible to
waive the responsibility from us or anyone purchasing the house. I’m not sure what to
do at this point outside of explaining that. The lady I talked to was very helpful.
Moermond: this is a common problem with HUD, and that is HUD has a way of selling
properties without disclosing things. Condemnations, Vacant Building program, or a
removal on it. That’s all happened on my watch. In terms of disclosure of pending
assessment for removal of a tree before it comes into your possession, I get it is
inconvenient, but the City would be in the act of subsidizing this for the Federal
government. I know the Feds don’t have to pay taxes for us. But it was assessed and I
am not hearing it wasn’t properly noticed. I don’t know that the City should have to
subsidize the work done.
Hall: I guess the difference for me is everything that happened to and with this property
up until this point happened under the umbrella of the mortgagee, Hmong Care, before
it even came to us. I only found out was doing research for the asset manager trying to
sell the house. We didn’t directly receive notice for. That’s why I wanted to move this
on from us.
Moermond: I hear you. It was properly noticed to the owner of record at the time the
nuisance was identified. It became a pending assessment as of May 1, 2024. A couple
of months prior to HUD assuming the mortgage. It would have been out there at that
time.
Hall: the responsibility is supposed to be with the mortgagee. They are supposed to
cure these things before it gets to HUD so we don’t have these issues. I wanted it
pushed back on them or get a reduced rate. We would have taken care of it; we don’t
let something sit. It sounds like none of that is going to go into any equation?
Moermond: the assessment for work done on the property attaches to the property
under MN statute 429. Is it the responsibility of the people holding the bag at the time?
There’s a moral argument to be made. We typically advise people to go after the
previous owner. If nothing else it should have been disclosed. All those orders went to
them, no question about it. Is it a case where the City failed in its responsibility? That
would be a circumstance where I’d say yes let’s delete it. If you didn’t get notice during
your ownership, that would be something I could say you should have and delete.
When it happens under a previous owner it still attaches to the property. How different
financial institutions communicate amongst themselves I don’t know. I know you don’t
have to pay it. But does it attach? Yes. I can talk to the City Attorney about it and see
if the administrative branch looks at it and sees something different. What I’m
repeating is the experience I’ve had and what I’ve been told previously. I’m happy to be
talking to someone ahead of the game. For all my frustration it is because of a lack of
communication, so I do truly appreciate you wanting to talk this through.
Hall: we have an offer and will get a family back in. It sounds like you’ve had a bad
encounter with HUD throughout the years. That has everything to do with when these
homes are in the mortgagee care. I don’t have the ability to not take care of