Redevelopment Agency / North Walke Housing Corp

3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org TO: Members, Norwalk Redevelopment Agency FROM: John Igneri, Chairman DATE: July 8, 2022 RE: Regular Meeting Notice ************************************************************************ NORWALK REDEVELOPMENT AGENCY July 12, 2022 5:30 P.M. REGULAR MEETING AGENDA The next meeting of the Norwalk Redevelopment Agency will be held on TUESDAY, JULY 12, 2022 at 5:30 p.m. Due to the ongoing public health situation the meeting will be held as a Zoom virtual meeting via the link below. The meeting will also be broadcast on the Norwalk Redevelopment Agency YouTube channel: https://www.youtube.com/channel/UCHMiAZt32k6BnjaKdnUaIug?view_as=subscriber. ZOOM Meeting Link: https://us06web.zoom.us/j/87819590706?pwd=c2dMWnRGcEV2Q0h0Vm5USDdWRjNmQT09 I CALL TO ORDER II ROLL CALL III PUBLIC PARTICIPATION IV ADMINISTRATION a) Approval of Minutes i) Approve minutes of the June 14, 2022 regular meeting b) Financials i) Approve Norwalk Redevelopment Agency Statement of Revenues and Expenditures for Operating Fund 100 for Year-to-Date May 31, 2022. V BUSINESS a) Residential Rehabilitation Loans i) Approve Residential Rehabilitation Loan 22-01 and authorize Executive Director, Brian T. Bidolli, to execute contracts for value not to exceed $52,500. 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org ii) Approve Residential Rehabilitation Loan 22-02 and authorize Executive Director, Brian T. Bidolli, to execute contracts for value not to exceed $70,000. VI NEW BUSINESS VII OLD BUSINESS VIII ADJOURNMENT  CITY OF NORWALK NORWALK REDEVELOPMENT AGENCY REGULAR MEETING JUNE 14, 2022 ATTENDANCE: John Igneri, Chair; Kelly Bloom, Mary Peniston, David Westmoreland STAFF: Katie O’Leary, Community Engagement, Brian Bidolli, Redevelopment Agency Executive Director, Eugenia Lupinski, Director of Finance CALL TO ORDER Mr. Igneri called the meeting to order at 5:32 p.m. PUBLIC PARTICIPATION There was no public participation ADMINISTRATION a) Approval of Minutes of the May 10, 2022 regular meeting ** MS. PENISTON MOVED THE MINUTES ** MS. BLOOM SECONDED ** MOTION TO APPROVE THE MINUTES OF THE MAY 10, 2022 REGULAR MEETING PASSED UNANIMOUSLY b) FINANCIALS i) Approve Norwalk Redevelopment Statement of Revenues and Expenditures for Operating Fund 100 for Year-to-Date April 30, 2022. Ms. Lupinski stated that for the year-to-date period ending April 30, 2022, Operating Fund 100 had actual revenues of $1,183,000 versus budgeted revenues of $1,184,000 which resulted in an unfavorable variance of $1,000. Total actual expenditures of $1,200,000 versus budgeted expenditures of $1,182,000 resulted in an unfavorable variance of $18,000. She said this was Norwalk Redevelopment Agency Regular Meeting June 14, 2022 Page 1 due to an unfavorable variance of $28,000 in personnel expenses offset by favorable variance of $10,000 in administrative expenses. The actual net operating deficit of $17,000 versus a budgeted operating surplus of $3,000 resulted in an unfavorable variance of $20,000. ** MS. BLOOM MADE A MOTION TO APPROVE THE STATEMENT OF REVENUES AND EXPENDITURES ** MR. IGNERI SECONDED** MOTION PASSED UNANIMOUSLY ii) Approve FY 2022-23 Agency Operating Budget Mr. Bidolli said most of the budgeted revenue comes from grant revenues and the Agency expects additional funds from ARPA this year to offset additional occupancy expenses. He further highlighted additional grant revenues that are reasonably expected over the upcoming year to offset any deficit reflected on the budgeted profit and loss statement. ** MR. IGNERI MADE A MOTION TO APPROVE THE 2022-23 OPERATING BUDGET ** MR. WESTMORELAND SECONDED ** MOTION PASSED UNANIMOUSLY BUSINESS a) Brownfield Area-Wide Revitalization (BAR) Planning Grant. i) Authorize Norwalk Redevelopment Agency to apply for and execute any required documents associated with the Brownfield Area-Wide Revitalization Planning Grant Mr. Bidolli spoke about the Brownfield area regarding a grant for $200,000 to update the city’s GIS inventory, link available documents from the state in an online web portal, and conduct GIS site selection analysis. The total grant will be $220,000 including the required 10% match. He said the completion of the project will take 12-18 months once initiated. ** MR. WESTMORELAND MOVED THE ITEM ** MS. BLOOM SECONDED ** MOTION PASSED UNANIMOUSLY b) MLK Facade Improvement Grant Phase II Property review Norwalk Redevelopment Agency Regular Meeting June 14, 2022 Page 2  i) Approve the funding for the above listed projects in the MLK Facade Improvement Area ii) Authorize Brian Bidolli, Executive Director, to enter into contracts with the above described projects for the MLK facade improvement not to exceed $450,000 of total funding and not to exceed maximum funding as described in the guidelines. Mr. Bidolli spoke next about MLK facade improvement program. He said the Agency completed seven projects last year which were owner occupied and are now working on renter occupied units. Mr. Bidolli said the request is for $450,000 of grant resources to complete the projects as reviewed and approved by the committee. ** MS. PENISTON MOVED THE ITEM ** MR. WESTMORELAND SECONDED ** MOTION PASSED UNANIMOUSLY c) Connecticut Communities Challenge Grant Application Submitted i) Authorize Brian Bidolli, Executive Director, to enter into any and all agreements related to implementation of the CT Communities Challenge Grant pending requisite legal review by the Agency & Corporation Counsel. Mr. Bidolli said the program is focused on infrastructure and tied to the 15-17 Chestnut project in South Norwalk. Mr. Bidolli said it will include streetscapes and sidewalk improvements to support development of 200 mixed units. Mr. Bidolli provided an overview of the overall grant budget, award details and requirements. Mr. Westmoreland asked if the city is using the cost of the land for the match. Mr. Bidolli said that is correct. Mr. Bidolli noted the $6 million grant was awarded to the Agency and he is acting as the city’s business agent for development of the related Land Disposition Agreement at 15-17 Chestnut. ** MR. WESTMORELAND MOVED THE ITEM ** MR. INGERI SECONDED ** MOTION PASSED UNANIMOUSLY NEW BUSINESS Mr. Bidolli said the date for the Open House will be June 27 at either 5 or 5:30. Norwalk Redevelopment Agency Regular Meeting June 14, 2022 Page 3  MOTION TO ADJOURN ** MR. IGNERI MADE A MOTION TO ADJOURN ** MOTION PASSED UNANIMOUSLY Meeting adjourned at 6:12 p.m. Respectfully submitted, G. Venuto Norwalk Redevelopment Agency Regular Meeting June 14, 2022 Page 4 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org TO: Norwalk Redevelopment Agency Loan Committee FROM: Redevelopment Staff DATE: July 12, 2022 RE: Rehab Loan 22-01 Review ************************************************************************ Loan Overview The proposed property is a 2,100-square foot, single-family home built in 1973 (See Attachment A). The owner seeks to replace the existing wood siding with new vinyl shank siding and also looks to convert the existing laundry room into a full bathroom. The bathroom conversion will include framing to reorient the existing washer and dryer to the hallway and installing new piping to facilitate the installation of a new shower. The owner currently makes payments on a Redevelopment Agency-issued loan for the same property, with a principal balance of $20,800 and monthly payments of $127. The owner is up to date on payments and has no overdue payments. These values are reflected in the maximum loan affordability in the below underwriting structure. Location Details The home is located in Census Tract 435, which is a non-Low Moderate Income Census Tract. The house is occupied by a low income family. Image 1 – Exterior 1 Image 2 – Exterior 2 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org Image 3 – Basement Bathroom 1 Image 4 – Basement Bathroom 2 Scope of Work Exterior • Removal of existing wooden siding. • Installation of new weather sheathing. • Installation of new Cedar Impressions siding. The Cedar Impressions line is a vinyl siding shank intended to mimic the look of a more standard cedar siding shank. Basement Bathroom • Framing to create a new laundry room in the basement hall that will include the installation of new sheetrock, minor trim work and reorienting the existing washer and dryer to face the hallway. • Installation of new toilet and vanity. • Installation of new drainage and supply lines to facilitate new shower installation, including framing, tiling and installation of glass shower door. • Installation of new floor tile. • Painting and other minor cosmetic improvements. 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org Bidding Process for Proposed Loan Upon approval of the loan 22-01 the project will be posted in the Norwalk Hour as a public bid invitation as well as sent to an email list of qualified contractors. Three bids will be required and the owner will be obligated to select the lowest, reasonable bid. A low bid above the owner’s affordability described in our guidelines and underwriting is not expected. In the event that pricing comes back higher than expected, items will be eliminated from the scope of work or less expensive materials will be used so that the loan values presented are not exceeded. Underwriting and Loan Structure The underwriting was conducted using the current Residential Rehabilitation Program’s guidelines. The presented structures are based on our maximum 30-year loan and 2% interest rate. The owner has indicated that she wishes to keep payments as low as possible using the 30-year term. There are no penalties for early payments. Maximum Amortized Loan: Loan Principal $52,500 Interest rate: 2% Term: 30 Years Monthly Payment: $222 The current guidelines allow for a Combined Loan to Value ratio of 85% and a Debt to Income Ratio of 40%. As structured, the combined loans will meet the guidelines as outlined below: cLTV: 80% (85% maximum allowed DTI Ratio: 37.5% (40% maximum allowed) The proposed loans represent underwriting following the current Residential Rehabilitation Program’s underwriting guidelines. With the proposed values, the present loan is within the standards proposed in the guidelines. ACTION: Approve Residential Rehabilitation Loan 22-01 and authorize Executive Director, Brian T. Bidolli, to execute contracts for value not to exceed $52,500. Attachments: A: Property Card B: Underwriting Sheet for Maximum Loan Underwriting Worksheet Date: 7/6/2022 Borrower(s): Photo: Rehab Case #: 22-01 Owner Occupied Address: # Units: 1 Property Value: $367,170 Existing Loans: $241,096 Property Address: Proposed Loan: $52,500 Same cLTV: 80.0% Guidelines allow up to 85% A. GROSS MONTHLY INCOME Borrower Co-Borrower Totals AGI 1 Base 6,287 6,287 $75,445.80 2 Overtime - Based on Pay 3 Pension - Stub 4 Dividend/Interest - AMI 5 Net Rental (= 75% gross rent) - 52% 6 Other (Social Security) - 2-person family Total Gross Monthly Income: $6,287 $0 $6,287 B. MONTHLY CREDIT LIABILITIES Creditor Type Payment Balance As Agreed: 1 2 3 4 5 6 7 8 Total Liabilities: $0 C. MONTHLY HOUSING EXPENSES D. ASSETS Forbearance loans only PITI Current Proposed 1 Savings $ 66,727.00 1 Existing Mortgage Payment 2,007 2,007 2 Savings 2 Second Mortgage Payment 127 127 3 Savings 3 Property Taxes 4 Checking $ 11,923.00 4 Homeowner's Insurance 5 Checking 5 Mortgage Insurance - - 6 Retirement 6 Common Charges - - 7 Retirement 7 Proposed Loan(s): 8 Retirement Principal: $52,500.00 9 Other Term: 300 10 Other Interest Rate: 2% 11 Other Payment: $222 12 Other Total Monthly Housing Expense: $ 2,133.48 $2,356 Total Assets: $ 78,650.00 E. MONTHLY EXPENSE RATIOS Current Housing Proposed Housing Housing to Income Ratio: $2,133 33.9% $2,356 37.5% $6,287 $6,287 Debt to Income Ratio: $2,133 33.9% $2,356 37.5% Liabilities & Housing Expenses/Income $6,287 $6,287 Guidelines allow up to 40% for amortized loans (Proposed Housing) & 45% for forbearance loans (Current Housing Costs) F. UNDERWRITING COMMENTS: Mortgage payment includes, mortgage, taxes, insurance. Credit Score: 831 tjc/my documents/rehab documents/underwriting Rev 5-06  Location Mblu Acct# 20502 Owner Assessment $257,020 Appraisal $367,170 PID 20502 Building Count 1 Current Value Appraisal Valuation Year Improvements Land Total 2018 $187,970 $179,200 $367,170 Assessment Valuation Year Improvements Land Total 2018 $131,580 $125,440 $257,020 Owner of Record Owner Sale Price $0 Co-Owner Certificate Book & Page Address 79 1/2 WALTER AVE Sale Date 12/07/2011 Instrument 4 NORWALK, CT 06851 Ownership History Ownership History Owner Sale Price Certificate Book & Page Instrument Sale Date $0 7498/54 4 12/07/2011 $330,000 7172-329 7172/329 04/21/2010 $492,000 6407-231 6407/231 12/22/2006 $0 894/127 03/07/1974 Building Information Building 1 : Section 1 Year Built: 1973 Living Area: 1,086 Replacement Cost: $226,469 Building Percent Good: 83 Replacement Cost Less Depreciation: $187,970 Building Attributes Field Description Style Raised Ranch Model: Residential Grade C Stories 1.00 Building Photo Occupancy 1 Exterior Wall 1 Wood Shingle Exterior Wall 2 Roof Structure: Gable Roof Cover Asphalt Shingl Interior Wall 1 Drywall Interior Wall 2 Interior Floor 1 Hardwood Interior Floor 2 Heat Fuel Gas (https://images.vgsi.com/photos/NorwalkCTPhotos//default.jpg) Heat Type Hot Water AC Type Central Bedrooms 3 Full Baths 1 Half Baths 1 Extra Fixtures 0 Total Rooms 8 Bath Style Average Kitchen Style Average Extra Kitchens 0 Frame Wood Insulation Typical Bsmt Garage 1 Foundation Conc Block  FBM Area 504 Building Layout FBM Quality 4 Fireplaces 1 # of Heat Systems 1.00 Central Vac Solar HW Electrical Typical Heat Percent 100 (ParcelSketch.ashx?pid=20502&bid=20502) Building Sub-Areas (sq ft) Legend Gross Living Code Description Area Area BAS First Floor 1,086 1,086 BGR Basement Garage 240 0 RBM Raised Basement 768 0 RWD Wood Deck 498 0 2,592 1,086 Extra Features  Extra Features Legend No Data for Extra Features Land Land Use Land Line Valuation Use Code 101 Size (Acres) 0.18 Description Single Family Frontage Zone B Depth Neighborhood 0134 Assessed Value $125,440 Appraised Value $179,200 Outbuildings Outbuildings Legend No Data for Outbuildings Valuation History Appraisal Valuation Year Improvements Land Total 2020 $187,970 $179,200 $367,170 2019 $187,970 $179,200 $367,170 2018 $187,970 $179,200 $367,170 Assessment  Valuation Year Improvements Land Total 2020 $131,580 $125,440 $257,020 2019 $131,580 $125,440 $257,020 2018 $131,580 $125,440 $257,020 (c) 2022 Vision Government Solutions, Inc. All rights reserved. 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org TO: Norwalk Redevelopment Agency Loan Committee FROM: Redevelopment Staff DATE: July 12, 2022 RE: Rehab Loan 22-02 Review ************************************************************************ Loan Overview The proposed property is a 2,060-square foot, single-family home built in 1987(See Attachment A). The owner seeks to renovate the existing master bedroom, rebuild the existing deck and replace the side entrance door to the property. The household is comprised of two adults and three children. The applicant is the sole owner of the property but shares living expenses with their partner who also resides at the property. Following CDBG regulation, the income of the entire household was verified and the family qualifies as low-moderate income. The owner of the property also qualifies as low-moderate income on her own. Housing payments from the owner’s partner are being considered as additional income, which is compliant with all federal regulations. Location Details The home is located in Census Tract 428, which is a non-Low Moderate Income Census Tract. The house is occupied by a low income family. 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org Scope of Work Exterior • Removal of existing decking and railing. • Replacement of any rotted deck framing • Installation of new composite decking and railing materials. • Installation of new exterior side entryway. Master Bathroom • Gut existing Master Bathroom. • Installation of new subfloor. • Installation of new floor tile. • Installation of new vanity, light fixtures, shower and toilet. • Painting and other minor cosmetic improvements. Bidding Process for Proposed Loan Upon approval of the loan 22-02, the project will be posted in the Norwalk Hour as a public bid invitation and sent to an email list of qualified contractors. Three bids will be required where the owner will be obligated to select the lowest, reasonable bid. A low bid above the owner’s affordability described in our guidelines and underwriting is not expected. If pricing comes back higher than expected, items will be eliminated from the scope of work or less expensive materials will be used so that the loan values presented are not exceeded. Underwriting and Loan Structure The underwriting was conducted using the current Residential Rehabilitation Program’s guidelines. The presented structures are based on our maximum 30 year loan and 2% interest rate. There are no penalties for early payments. Maximum Amortized Loan: Loan Principal $70,000 Interest rate: 2% Term: 30 Years Monthly Payment: $296 The current guidelines allow for a Combined Loan to Value ratio of 85% and a Debt to Income Ratio of 40%. As structured, the combined loans will meet the guidelines as outlined below: cLTV: 61% (85% maximum allowed DTI Ratio: 39.7% (40% maximum allowed) The proposed loans represent underwriting following the current Residential Rehabilitation Program’s underwriting guidelines. With the proposed values, the present loan is within the standards proposed in the guidelines. 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org ACTION: Approve Residential Rehabilitation Loan 22-02 and authorize Executive Director, Brian T. Bidolli, to execute contracts for value not to exceed $70,000. Attachments: A: Property Card B: Underwriting Sheet for Maximum Loan  Location Mblu Acct# 3394 Owner Assessment $338,850 Appraisal $484,070 PID 3394 Building Count 1 Current Value Appraisal Valuation Year Improvements Land Total 2018 $284,540 $199,530 $484,070 Assessment Valuation Year Improvements Land Total 2018 $199,180 $139,670 $338,850 Owner of Record Owner Sale Price $318,000 Co-Owner Certificate Book & Page 8037/31 Address NORWALK, CT Sale Date 08/01/2014 Instrument 06851 Ownership History Ownership History Owner Sale Price Certificate Book & Page Instrument Sale Date $318,000 8037/31 08/01/2014 $275,000 2112/319 10/02/1987 $275,000 2112/319 10/02/1987 $0 0/0 Building Information Building 1 : Section 1 Year Built: 1987 Living Area: 2,061 Replacement Cost: $315,380 Building Percent Good: 90 Replacement Cost Less Depreciation: $283,840 Building Attributes Field Description Style Colonial Model: Residential Grade C+ Stories 2.00 Building Photo Occupancy 1 Exterior Wall 1 Vinyl Siding Exterior Wall 2 Roof Structure: Gable Roof Cover Asphalt Shingl Interior Wall 1 Drywall Interior Wall 2 Interior Floor 1 Hardwood Interior Floor 2 Heat Fuel Gas (https://images.vgsi.com/photos/NorwalkCTPhotos//00\00\09/33.jpg) Heat Type Forced Air AC Type Central Bedrooms 3 Full Baths 2 Half Baths 0 Extra Fixtures 0 Total Rooms 7 Bath Style Average Kitchen Style Average Extra Kitchens 0 Frame Wood Insulation Typical Bsmt Garage 0 Foundation Slab FBM Area Building Layout FBM Quality Fireplaces 0 # of Heat Systems 1.00 Central Vac Solar HW Electrical Typical Heat Percent 100 (ParcelSketch.ashx?pid=3394&bid=3394) Building Sub-Areas (sq ft) Legend Gross Living Code Description Area Area BAS First Floor 956 956 FUS Finished Upper Story 754 754 TQS Three Quarter Story 468 351 FGR Garage 240 0 FOP Framed Open Porch 44 0 WDK Wood Deck 286 0  2,748 2,061 Extra Features Extra Features Legend No Data for Extra Features Land Land Use Land Line Valuation Use Code 101 Size (Acres) 0.15 Description Single Family Frontage Zone B Depth Neighborhood 0327 Assessed Value $139,670 Appraised Value $199,530 Outbuildings Outbuildings Legend Code Description Sub Code Sub Description Size Value Bldg # SHD1 Shed VN Vinyl 80.00 S.F. $700 1 Valuation History Appraisal Valuation Year Improvements Land Total 2020 $284,540 $199,530 $484,070 2019 $284,540 $199,530 $484,070 2018 $284,540 $199,530 $484,070 Assessment Valuation Year Improvements Land Total 2020 $199,180 $139,670 $338,850 2019 $199,180 $139,670 $338,850 2018 $199,180 $139,670 $338,850 (c) 2022 Vision Government Solutions, Inc. All rights reserved.