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ENFIELD TOWN COUNCIL
MINUTES OF A SPECIAL MEETING
MONDAY, MAY 3, 2004
A Special Meeting of the Enfield Town Council was called to order by Chairman Tallarita in the Enfield Room, Enfield Town Hall, 820 Enfield Street, Enfield, Connecticut on Monday, May 3, 2004 at 6:00 p.m.
ROLL-CALL - Present were Councilman Dodd, Edgar, Egan, Fiore, Kaupin, Mangini, Peruta, Tait and Tallarita. Councilmen Crowley entered the meeting at 6:05 p.m., and Councilman Reveruzzi entered the meeting at 6:25 p.m. Also present were Town Manager, Scott Shanley; Assistant Town Manager, Daniel Vindigni; Town Clerk, Suzanne Olechnicki; Town Attorney, Christopher Bromson; Director of Community Development, Peter Bryanton; Director of Economic Development, Raymond Warren.
COMMUNITY DEVELOPMENT STRATEGIC FINANCIAL PLAN
Mr. Shanley stated sometime ago there was discussion about the fact they have to reallocate their rolling balances in some of the community development accounts. He noted Mr. Bryanton has been working on a plan to re-energize the division and focus it on accomplishment.
Mr. Bryanton stated they have about $540,000 in CDBG program income, and about $465,000 in eight CD funds which is the predecessor to CDBG. He noted this amounts to a little over a million dollars. He explained program income is money that's been turned back into the program through loan proceeds. He noted in order to be able to go to the State and apply for more money, they have to spend down quite a bit to get down to $25,000.
Mr. Bryanton stated one of his first tasks when he came on board was to start to structure a program of work and come up with some new programs. He noted the program of work will address two major Town goals - the first is to target the million dollars toward Thompsonville which is in need of revitalization and the second is to spend down the money to become eligible to apply for more State and Federal grant funds.
He stated one of the first things he did was try to insert grant components into the two existing loan programs that they have. He noted the housing rehab program is a good program, but is not as widely used as it could be. He explained an incentive to bring people into the program is to give a small grant, i.e., $2,500 to a homeowner. He noted to get the grant a homeowner has to be in the loan program. He stated this allows the Town to get more loans and create more revenue and spend down the program income they have.
Mr. Bryanton stated one of the goals of the Council a year ago was to develop a First Time Home Buyer Program, and that is included and to develop programs that benefit the general public, i.e., the Freshwater Pond project. He stated they would also promote and advertise these programs to the general public so people are aware of these programs and use them.
Mr. Bryanton stated the State has approved the programs he is presenting this evening.
He then highlighted the following programs:
Housing Rehabilitation Program
The Housing Rehabilitation Loan component already exists, and they would use $300,000 of the existing program income. The eligible people for this program are low/moderate income, owner-occupied, single-family homeowners and property owners with low/moderate income tenants. This is targeted to the Thompsonville census track, however, it's eligible to all low/moderate income applicants town-wide. This program provides a 3% loan up to $25,000 per homeowner. The loan has to be paid back in 15 years. It provides a 3% loan up to $12,500 per unit for property owners. It provides a deferred loan option for very low income homeowners that has to be paid back when the property is sold or conveyed. All of these loans are currently reviewed by the loan committee. The grant component is new and essentially it provides $100,000 in loan funds that would provide $2,500 to the homeowners which can be spent on any materials or equipment that needs to be put into the house and it provides a $5,000 incentive grant to landlords and property owners that have tenants. The grants may also be used to address existing conditions that pose serious and eminent threat to the health and welfare of the applicant, i.e., a furnace replacement.
Councilman Fiore questioned why they're targeting multi-family property owners, people who are making a profit from their property. Mr. Bryanton stated they have a number of properties that are considered sub-standard and are owned by landlords. He noted the only way they can get them to comply at times is through the Housing Enforcement Officer. He added they're also trying to provide an incentive for investors that may want to come in and take over such a property.
Councilman Peruta requested clarification on low/moderate income. Mr. Bryanton stated the median income for Enfield is approximately $58,000. He noted anyone that makes 80% of that $58,000 is considered a moderate income for a family of four. Mr. Shanley added the federal guidelines are such that this has to be targeted to people in that income bracket.
Councilman Egan questioned whether property owners have to fall within a certain income bracket, and Mr. Bryanton responded the tenants do. He explained the intent is to get the money to benefit the tenants, not specifically the property owner. He noted there are safeguards, i.e., there are also provisions that if the property owner takes the money, they can't hike up the rent.
Councilman Tait questioned the total housing rehab budget, and Mr. Bryanton responded $540,000, and they're proposing using $300,000 for the loan portion. Mr. Shanley pointed out this is an on-going program and it is currently operating, however, they don't execute it with the speed and intensity that they should.
Councilman Tait stated his understanding they're trying to use up the money so they can get more money. Mr. Warren stated they are trying to use the money to improve the housing condition in Thompsonville. He added Enfield is in a position whereby it does not compete well for available funds for housing rehabilitation because they're not spending the money.
Councilman Tait questioned why they are not spending the money. Mr. Warren stated some of the programs were not that attractive, in that people didn't want to take on new loans at any cost, however, the grant incentive is a way for people to find the program more attractive. Mr. Shanley pointed out they also had a prolonged vacancy in the position of the Director of Community Development and during that period the program completely lost momentum. He added the division spent the better part of the last two years doing the planning function and doing a lot of work with the Enfield Revitalization Strategy Committee and put together an action plan for them. He noted the attention of that department's small staff has not focused on the execution of getting this component of CD done. He stated the plan presented this evening is an attempt to get back to the core of what this program is about.
Councilman Tait stated it appears they're giving landlords money to improve the condition of their property and supposedly helping the tenants. He feels the fact is they're absolutely increasing the asset of that property through this loan. Mr. Shanley responded yes, the taxable asset. He noted this might result in neighborhoods that begin to take on a different look and a different feel because there has been some significant investment. He stated a neighborhood could become more attractive and people may be more anxious to move to that section of town or buy and live in a property in that area.
Councilman Tait questioned what the guidelines are as concerns raising rents after properties have been rehabilitated. Mr. Bryanton stated there are federal laws that if they provide this money to a landlord, they have to keep the apartments affordable. He noted those affordability rates go up every year with inflation. He noted the rates are based on income.
Mr. Warren stated one of the problems with the Enfield Housing Rehabilitation Program is that not a lot of people know about it. He noted the problem is that this program developed balances of nearly a million dollars. He stated at the present rate of activity, it would take them about 15 years in order to spend what they have and not really have much production. He noted this is an opportunity to organize a program and then communicate it through some literature, the Town website and other means so that people can take advantage of this opportunity.
Councilman Mangini stated a lot of the loans that do come through are not strictly for commercial or profit, but rather a lot of these loans are for individuals that don't have the financial means to make necessary repairs, i.e., a boiler, a roof, or a wheelchair ramp. She noted she would be interested in seeing a mission statement for the Loan Review Committee.
Referring to the Housing Rehab/Grant Component and the multi-family property owners, Councilman Crowley questioned whether the $5,000 incentive grant would go to a new buyer. Mr. Bryanton stated that's the hope, but it doesn't have to be a new property buyer. He noted they also have another component for first-time homebuyers.
AmericaCares/Homefront Project
Mr. Bryanton stated this is a new program and explained AmeriCares is a non-profit organization whereby volunteers rehab homes, similar to Habitat for Humanity except they do rehabs and don't build new homes. He stated AmeriCares approached the Town to provide $2,000 per home and that pays the cost for materials to get the project off the ground. He stated the nice feature about this program is that there's no public procurement required because the non-profit is doing it. He noted they're proposing providing AmeriCares $20,000 which would accomplish ten home projects in a year. He stated this organization has a great track record and they do good work, therefore, it was believed this would be a good program to be involved in.
He stated AmeriCares does the work and provides the receipts for the materials. He noted they do have a housing inspector that looks at the work, and once the Town is satisfied a check for $2,000 will be issued.
First-Time Homebuyer Loan Program
Mr. Bryanton stated this would be funded through HCD Funds, and the eligibility would be low/mod first-time homebuyers. He noted there's a HUD definition for first-time homebuyers. He stated the program will be targeted at Thompsonville. He noted Thompsonville has a very low homeowner ratio, and one of their goals is to get that percentage up. He added this would also be eligible to any low/mod applicants town-wide. He explained the homebuyer can get up to $20,000 in gap financing to complement mortgages from any credible bank or lending institution.
He stated if an applicant has enough good credit to be approved for a mortgage, i.e., $100,000, but they may need $115,000 to buy the house, the gap financing would allow them to "get over the hump" to buy the house. He noted he worked on this in two other communities, and it's a great program.
Chairman Tallarita questioned whether this would allow someone to take advantage of this program with no money down. Mr. Bryanton responded that's possible, but it really depends on the lending institution.
Councilman Reveruzzi noted they run this program in Hartford as well, but it's structured as a loan. He explained the gap financing burns off after a seven-year period so that if the owner stays in the house for seven years, the gap financing is forgiven.
Chairman Tallarita questioned as a condition of the loan, can it be a requirement that the applicant participate in an educational program regarding home buying. Mr. Bryanton and Mr. Warren indicated they'd look into this.
Councilman Crowley questioned whether real estate agents have knowledge of this. Mr. Bryanton stated if they don't, they will.
Mr. Warren stated they have not communicated these programs to the community well, and that needs to be improved quite a bit.
Mr. Shanley stated they first have to develop a clear plan with all the guidelines and structure it. He noted secondly, they have to ensure they can deliver it with some reasonable speed.
Councilman Reveruzzi questioned why there's so much funding in the Housing Rehab Program and not as much with the gap loan program. Mr. Bryanton stated if the program income is reallocated, it has to go back into the housing loan program and it can't be diverted to another program. He noted the biggest balance of the $540,000 is dedicated to the housing loan program.
Councilman Reveruzzi stated he would rather have more funding in the ownership program than the rehab program. Mr. Bryanton stated it's hoped when they spend down the $200,000, they'll be able to go to the State and claim this is a successful program deserving funding.
Chairman Tallarita questioned whether people can take advantage of two programs, and Mr. Bryanton responded yes, as long as they meet the income guidelines, they can take advantage of all these programs.
Commercial Loan Programs
Mr. Bryanton stated this used to be called the Façade Program, and it has been funded for a few years. He noted they are looking to re-fund that program and reinvigorate it. He stated this would be a combination of CDBG and HCD funds and would be eligible to commercial property owners in the Thompsonville census tracks because this is a low/mod area. He went on to explain this would provide a 3% loan up to $20,000 for façade and code improvements with a required private match of 50% of the total loan. He noted loans can be deferred up to two years and must be paid back within ten years. He stated applicants can receive up to $5,000 in incentive grants towards the purchase of required equipment. All applicants must comply with the provisions of the Davis/Bacon Act, which is prevailing wage rates.
Mr. Bryanton stated this program would be new to the Loan Committee.
Councilman Reveruzzi stated his belief they should consider whether or not the Loan Committee is the right committee to manage all of these different programs. He stated his understanding that at one point Mr. Warren was looking at the possibility of the Economic Development Commission taking on the responsibility of the grant program for the commercial rehab loans. He noted having one group handle all these programs could be complicated not only for that group, but complicated for the applicant as well.
Mr. Bryanton stated it's hoped the Committee will have less work, not more because he believes the applicants can do more ground work up front and then come to the Loan Committee with everything all set so that Committee can make a yes or no decision.
Councilman Reveruzzi stated his belief this is an opportunity to blend this with the restructuring of how they create the approval process. He suggested coming up with a way to streamline the process.
Councilman Fiore stated he's bothered by the indefinite terms of the Loan Committee. He feels they should be thinking about what the Loan Committee does and what it's going to do in the future and streamline it. He added he would like to come up with some term limits. Mr. Bryanton agreed and noted the charge hasn't been updated since 1983, and that really needs to be done.
Public Facilities Programs
Mr. Bryanton stated the Town has touched on this with the Freshwater Pond Restoration Project. He noted he inserted a program that he did in two other communities and it was very successful. He explained that's the ADA Compliance Program, and it can be done anywhere at anytime. He noted the federal government is very receptive with this program, and this is needed in a lot of the Town's public facilities. He stated he identified this for town-owned facilities and other public facilities where the public has access.
He stated they will put $60,000 toward the completion of the Freshwater Pond Project and add some amenities.
Mr. Bryanton stated the Loan Committee needs updating and training. He added they could use some new recruits. He noted in speaking with Enfield Federal Savings, he got the impression they could try to recruit some members who have loan experience, and this would be a great resource for this committee.
MOTION #7146 by Councilman Mangini, seconded by Councilman Kaupin to go into Executive Session to discuss Personnel Matters, Pending Litigation, and Real Estate Negotiations.
Upon a SHOW-OF-HANDS vote being taken, the Chair declared MOTION #7146 adopted 11-0-0, and the meeting stood recessed at 7:00 p.m.
EXECUTIVE SESSION
The Executive Session of the Enfield Town Council was called to order by Chairman Tallarita at 7:02 p.m.
ROLL-CALL - Present were Councilmen Crowley, Dodd, Edgar, Egan, Fiore, Kaupin, Mangini, Peruta, Reveruzzi, Tait and Tallarita. Also present were Town Manager, Scott Shanley; Assistant Town Manager, Daniel Vindigni; Town Clerk, Suzanne Olechnicki; Town Attorney, Christopher Bromson.
Personnel Matters, Pending Litigation, and Real Estate Negotiations were discussed with no action or votes being taken.
Chairman Tallarita adjourned the Executive Session at 7:35 p.m. He reconvened the Special Meeting at 7:36 p.m. and stated during Executive Session they discussed Personnel Matters, Pending Litigation, and Real Estate Negotiations with no action or votes being taken.
ADJOURNMENT
MOTION #7147 by Councilman Tait, seconded by Councilman Mangini to adjourn.
Upon a SHOW-OF-HANDS vote being taken, the Chair declared MOTION #7147 adopted 11-0-0, and the meeting stood adjourned at 7:37 p.m.
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