City of St. Louis Park

Housing Improvement

Area

November 10, 2010

Agenda

• Introductions– Stephanie Statz, Greensboro Condominium

Owners Association President & Board Members

– Matt Lupkes, On Site Property Manager– Steve Pfeiffer, Gassen Company– Kathy Larsen, City of St. Louis Park Housing

Programs Coordinator

Agenda

• Meeting Purpose

Inform Greensboro Association

members about potential tool to pay for common area improvements.

“St. Louis Park is committed to providing a well maintained and diverse housing stock.”

Housing Improvement Area (HIA)

Financial Tool

• Association borrows funds

• Common area improvements

• Owners repay through HIA fee collected with property tax payments

• HIA fee paid only by owners – not citywide

HIA Statute

• Association must initiate • Over 50% owners petition City • Public Hearing required • Veto period – 45% of owners submit

written objections• Typically unit fee based on % of ownership same calculation used to determine

monthly association dues

Why Borrow $ from City?

• Lenders & Associations– Collateral – By-laws

• Last resort financing

• Risk to city low – paid with property taxes (only owners pay – not citywide fee)

• More affordable payment for owners

Payment of Fee

• Owners pay fee with property taxes– If taxes escrowed, fee included with mortgage

payment – If taxes are paid on May 15th, Oct 15th – fee

paid at same time

• Prepayment – Pay fee in advance– 2-6 month prepayment period

Payment of Fee

• When owner sells unit – To be determined if fee transfers with unit

• Hardship deferral – 65 years and older AND low income

OR– Permanently disabled AND low income

Process

• Association determines improvements

• Submits application to city

• City reviews financials/improvements

• Association distributes petition

• City Council Public Hearing & 2nd meeting

• Veto Period – 45 days

Petition is Your “Vote”

• 50% or more owners must sign petition requesting HIA and imposition of fee

• Type of improvement

• Estimated cost

• Estimated Interest rate – less than 6%

• Length of loan - 10-20 years

• Unit fee based on % ownership

Q & A

Contact Information

Greensboro Square Association President• Stephanie Statz, 952-303-6944, c 612-245-0500• Stephanie.Statz@comcast.net

On-Site Property Manager• Matt Lupkes, 952-254-0477• greensboro_square@hotmail.com

Contact Information

Gassen Company • Steve Pfeiffer, CMCA, 952-253-4924 or 952-922-5575

• spfeiffer@gassen.com

City of St. Louis Park• Kathy Larsen, 952-924-2196• Klarsen@stlouispark.org