HomeMy WebLinkAbout[05a] Rental Housing Working GroupCITY OF ST. JOSEPH
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DATE: September 15, 2010
MEMO TO: St. Joseph Economic Development Authority
Administrator FROM: Cynthia Smith - Strack, Municipal Development Group
Judy Weyrens
RE: Student Rental Working Group
Mayor
Al Rassier Background
A second meeting of the Student Rental Working Group is scheduled for Wednesday, September
Councilors 22nd at 1 p.m.
Steve Frank
Bob Loso As you recall, consensus from the initial meeting was that public participation in the process of
Renee Symanietz transitioning student rentals to some other use is warranted. However that participation type /form is
Dale Wick yet to be defined. Additional Working Group members will be invited to the September 22nd meeting.
EDA
Perspectives shared at the initial meeting included:
Carolyn Yaggie-
Heinen
1. The method of determining the value of rental property is based on rent generated. If
Ken Jacobson
anticipated, a loss of rental income is capitalized, therefore, the actual economic impact of
Al Rassier
loss of rental payments exceeds actual rent payments. Such loss directly equates to basic
Tom Skahen
sale value of property.
Dale Wick
2. Property values and City taxable market value will be affected by decreased rental property
values; based on this fact, public involvement is warranted.
3. St. Joseph Student Housing reports 126 of 169 units rented this year. This is down
dramatically from previous years.
4. Rental property owners note a difficulty in obtaining financing and refinancing for rental
property based on unknowns and assumed decrease in demand.
5. Investigate the potential availability of external funding to transition single family rental units
to use by first time home buyers. Perhaps set a goal of transitioning 3, 5, or 10 houses per
year.
6. Consider and be mindful of timing of issues.
7. Others should be invited to join Working Group — CSB, SJU, more SF rental unit owners,
owners of other apartments.
8. Next session — Sept. 22, 2010; 1 p.m. same location. For next session Working Group
members are to brainstorm transitional strategies
An update from the meeting will be provided for the Board.
Action:
This item is for your information.
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