F. Habitat for HumanityINTEROFFICE MEMORANDUM
DATE: March 27, 1998
TO: Lawrence Gallagher, Director PECDD
FROM: Susan Moyer, Housing Manager PECDD
SUBJECT: Demolition of Structure Located at 1012 Sixth Avenue West
Larry, attached is a copy of the buy/sell agreement between Mr. and Mrs. Ownes and Habitat for
Humanity. As you can see, the agreement is contingent upon the City's participation in the
demolition of the structure and site clearance. I spoke with Greg Sandon this morning and he
will hold to the price quoted last January.
Will you please have the City Manager concur that the City will participate in the demolition and
site clearance so we can close on the sale. Until the sale takes place, the current owners are
unable to qualify for a mortgage on their new home in Woodland Court.
c:\homeowner\buyers\owens\city approval
interoffice
M E M O R A N D U M
To: Clarence Krepps, City Manager
From: Lawrence Gallagher, PECDD Director
Subject: 1012 Sixth Ave West
Date: January 13, 1998
Attached is a Memo from Susan Moyer, Housing Division Manager, regarding
demolition of the home at 1012 Sixth Ave. West. I have also attached the letter we
received from Habitat for Humanity, a letter from Thor Jackola, and an additional
Memo from Susan Moyer dated November 13, 1997, regarding a partnership with
Habitat for Humanity. Before I contact Habitat for Humanity regarding our ability
to proceed with this project, I need to discuss it with you and then request City
Council approval to use the pmergency housing Rinds set aside in our UDAG Budget
for this purpose.
I have not responded to Habitat's letter as of this date and will not do so until you
have advised me as to how you would like to proceed.
Atch 4
cc: Susan Moyer, Housing Manager
iheCin�otKalispell
Incorporated 1892
Planning, Economic &
Community Development Department
P.O. Box 1997
Kalispell, MT 59903-1997
DATE: January 12, 1997
TO: Lawrence Gallagher, Director
Planning, Economic and Community Development
FROM: Susan Moyer, Housing Manager PECDD
SUBJECT: 1012 Sixth Avenue West Demolition Request
248 Third Avenue East
(406) 758-7740
(406) 758-7739 (office fax)
(406) 758-7758 (City Hall fax)
Per industry standards, the following demolition prices were given with a thirty day term from
the date submitted.
LHC Incorporated $9,785
Timberland Construction $7,850
Bill's Construction $4,400
Sandon Construction Co., Inc. $3,950
If the City should choose to participate in the demolition of the above referenced structure, it
cannot happen until the new home for the occupants is constructed and they are able to move in.
The demolition prices were provided by the bidders because they anticipated they could do the
job within the very near future which is a slow time in the construction business. I would
suggest a $500 contingency to cover any increase in a future bid due to the demolition taking
place as the construction season starts back up.
In carrying this request forward, please keep in mind that we are attempting to place a very low
income family of seven in one of the City's four -bedroom homes. Every dollar from the sale of
the land will be used to pay off their existing debts to bring the family's debt ratio down to where
they can handle the monthly PITI of the new home.
The second bonus from this activity comes with Habitat building a home on the lot which will
sell to a family with an even lower income than we can address through our First Time Home
Buyer Program.
c:\homeowner\buyers\Owens\City demolition request
}Ga.:X::P.'v.
EUIJP.I MOIIGi:iG
OPPORTUNITY
Mr. Larry Gallagher, Director
Planning, Economic and Community Development
City of Kalispell
248 3rd Ave E.
Kalispell, MT 59937
Dear Sir:
I understand that the Owens family, living at 1012 6th Ave West, will be moving and the
property will be sold. This property was recently inspected by an engineer who found that
the house was not suitable for rehabilitation. Habitat for Humanity of Flathead Valley is
interested in acquiring this property for a Habitat for Humanity house. If Habitat were to
purchase this lot from the Owens we would do so only if we could build for a low income
family that meets the Habitat criteria. The current appraisal for the lot is $23,000 which is
more than Habitat could afford to pay for property and still keep the cost of the house
within the range of what our typical family can afford to pay (less than $250/m), however,
the Glacier Affordable Housing Foundation will help Habitat with a zero interest loan on a
portion of the cost of the property similar to the loan they have made on the other
affordable houses in the Valley.
The house currently on the property cannot be salvaged and will have to be removed or
demolished before a new house can be constructed. The removal would include the
foundations which the appraisal indicates is not salvageable. Would the City be amenable 1
to making a charitable contribution to Habitat by removing the existing house and the
foundation so that Habitat could finish preparing the site for a new house? This would
help us keep our building costs within the bounds of what the family assuming the
mortgage could pay. The City's help would be greatly appreciated and would place one
more low income family in a simple decent home.
Sincerely,
Gordon Rodewald, President
Habitat for Humanity of Flathead Valley
cc: Clarence Krepps, City Manager
censoring CCns
October 28, 1997
Ms. Susan Moyer
City of Kalispell
P.O. Box 1997
Kalispell, MT 59901
RE: House Review at 1012 6 t h Avenue W., Kalispell
Dear Ms. Moyer:
We were toured through portions of the house referenced above by
the person of the house. The primary purpose initiating a visit
was to look at the condition of the foundation. Serious problems
exist with the foundation, together with other aspects of the
house, and it became apparent that the rehabbing of the dwelling
is not economically practical. Many life safety issues exist.
We understand that your office is taking this file under
advisement. If we can be of further assistance, please give us a
call.
Ver truly yours,
Thor A ackola, P.E.
TAJ/se
Mailing Address: P.O. Box 1134. Kalispell, MT 59903 Location: 317 1st Avenue East phone t-4061 755 3208 lax i406i 755 3218
Incorporated 1892
Planning, Economic &
Community Development Department
P.O. Box 1997
Kalispell, MT 59903-1997
DATE: November 13, 1997
TO: Lawrence Gallagher, Director
Planning, Economic and Community Development
FROM: Susan Moyer, Housing Manager
Planning, economic and Community Development
SUBJECT: First Time Home Buyer Program/Habitat for Humanity Partnership
248 Third Avenue East
(406) 758-7740
(406) 758-7739 (office fax)
(406) 758-7758 (City Hall fax)
Larry, at the last public hearing for the CDBG Housing and Neighborhood Revitalization grant
application, a Mrs. Debbie Owens requested assistance with the seriously substandard condition of her
home. Kris Jackola happened to be in the audience that evening and volunteered someone from his firm
to make an inspection and recommendation as to the needs. It turned out that I went to the site with his
father, Thor Jackola, on Tuesday, September 3oth. Mr. Jackola is in the process of submitting a letter to
the City stating that, in his opinion, the house is beyond reasonable and prudent rehabilitation activities.
• The entire foundation of the house is crumbing away and the retaining walls in the cellar have
slumped into the center.
• The north exterior wall of the structure itself is bowing into the center of the building.
• The wiring throughout the structure is old, visibly frayed in many places, and very unsafe.
• The bedrooms are over crowed for the number of occupants in the unit. Many of the bedrooms
windows do not open for egress -- a life/safety issue. Additionally, the bedrooms and their
respective sizes are inadequate for the size of the family.
• Because the house is small and there are two adults and five children ranging in ages from 3 years
to 18 years, it is difficult to move freely throughout the hallways and bedrooms.
Around this same time, Glacier Bank was approached by Habitat for Humanity to see if the two entities
could joint venture in an attempt to provide a suitable site for a new home for a Habitat recipient next
spring. Steve Van Helden, Chairman of the Board of Directors of the Glacier Affordable Housing
Foundation (GAHF) called both Montana Department of Commerce and the Federal Home Loan Bank of
Seattle to see if existing Foundation CDBG and AHP dollars could be utilized to acquire the property
from the Owens, and both entities concurred this double activity would meet the criteria of their programs.
It is possible that two low income families can be assisted through the following efforts:
9. Gary Ryan has agreed to perform a pro bona>>appraisal on the site on behalf of Habitat for
ED]-LMMISING
OFFCRTUhi'.Y
Humanity. Habitat for Humanity has $15,000 towards the purchase of a cleared site, and Glacier
Affordable Housing Foundation (GAHF) will make up any difference through CDBG and HOME
finds. Thus, the current owners will have enough funds to clear all of their debts and be able to
qualify for a MBOH/Rural Development loan on one of the City's four bedroom First Time Home
Buyer units.
10. GAHF is requesting the City of Kalispell to participate in the project by doing the demolition and
site clearance. We have $5,000 in the emergency housing rehab line item. If the City chooses to
do so, a cost can be established through "small purchase" procurement on this construction
activity from a number of contractors because the activity would be under $25,000.
The lot is a typical 50' wide by 142' deep city lot with the normal 5' each side, 15' front and
10' rear set backs. This particular zoning is R-4 which allows for a single family or duplex
unit on this property. (See Diana's drawing)
11. Habitat for Humanity would become the owners of the property and allow the current owners to
remain in the unit until such time as the new, four -bedroom structure would be completed in
Woodland court. No relocation benefits are triggered because the City is not involved in the
acquisition of the property.
12. In Spring of 1998 a Habitat for Humanity family will be selected and construction will begin on
another unit to come on line at the full taxable amount.
Please advise if we can pursue council approval for demolition and site clearance.
c:\homeowner\buyers\owens\demo approval
AGREEMENT TO SELL AND PURCHASE
(Including Earnest Money Receipt) o
REALTORB PAGE 1 OF 2 �w■n
o voerurrnr
1 This contract stipulates the terms of sale of thi ro erty. 1R,ea c refully before signing (including information on page 2)).. jhis ys�Iegally binding contract. If not understood, seek competent acHti�.
2 axis e-L a jl 1 y
,Montana, ,1 g
3 Habitat for Humanity —,as O JTROS O T/C other
4 (hereinafter called "Buyer") agrees to purchase and the undersi ned Seller a re t` II h f II d
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1012 6th Avenue West
g g es o se t e o owing escr ed real estate hereinafter referred to as premises commonly known as ---------------------------
in the City of, Kalispell County of --- Flathead ,Montana, legally described as
Lot 11 �------- ----- ----
�Block 13 Fisher Addition_
TOGETHER WITH all fixtures attached to the above -described real property and attached buildings or structures
SMOKE DETECTOR(s): Property has k N /A smoke detector(s).
The following items of personal property, free of liens and without warranty of condition, are included:
N /A
RECEIPT FQR kARNEST MONEY: The undersigned Broker or Salesperson hereby acknowledges receipt from Buyer of earnest money in the amount of
U.S. Dollars($ 1V /A I as evidenced by ❑ cash, ❑ check, or ❑
All parties to this transaction agree that the earnest monies will be deposited pursuant to Montana law or
and such funds will be held in a depository account by N/A , Broker, Parties agree that interest accruing on earnest money, if any, while deposited shall be payable
to If interest is payable to the broker it is agreed that sums so paid are consideration for services rendered.
By, N/A
(Selling Real Estate Firm) (Signature of Salesperson)
TOTAL PURCHASE PRICE IS: Twenty-three .Thousand and no/100 ---------------'------^------------- U.S.
($ 23,000.00 )payable as follows:
$ "0— earnest money to be applied at closing.
$ as additional cash down payment, payable on or before closing.
s 23,000.00 balance of the purchase price will be paid as follows: Cash at closing from the proceeds of a loan from
Glnripr Bank, Possession shall hp pproximat-ely 60 days after datp of closing or upon
completion of sellers new home, whit ever occurs sooner.
SPECIAL PROVISIONS:
site suitable ror builaing. rabies agree that '.) UU.UU shall be a holdback from seller's_
-proceeds—to insure_ -fill_ work_and_--compaction is comp( efed within 90-AayG X1�s�X 1�i�XtS�t�a,Yl� vu
Addendum(s): k t(,•J None Type of Addendums:
DISCOUNT POINTS: If a Buyer obtains financing from a lender requiring discount points, Seller agrees to pay discount points up to a maximum of N A _ percent
(N A %) of the Buyer's loan. Buyer shall pay all other discount points.
CONVEYANCE: The seller shall convey the real property by Warranty Deed, free of all liens and encumbrances except those described in the title insurance
section of this agreement. The Seller shall convey the personal property by bill of sale.
TITLE INSURANCE: Seller, at Seller's expense, shall furnish Buyer Title Insurance evidenced by a standard form American Land Title Association title insurance commitment in amount equal to the
purchase price, committing to insure merchantable title to the real property in the Buyer's name, free and clear of all liens and encumbrances except: encumbrances herein mentioned, zoning ordinances,
45 building and use restrictions, reservations in federal patents, beneficial utility easements apparent or of record, easements of record, Special Improvement Districts (including rural SIDS) if any, which will
46 be: ❑ paid off by seller at closing ❑ assumed by buyer at closing, and
47
48 _
49 If the Seller's title is not merchantable and cannot be made merchantable before the stated closing date, 30 ADDITIONAL DAYS SHALL BE ALLOWED FOR THE SELLER TO MAKE SUCH TITLE
50 MERCHANTABLE. Encumbrances to be discharged by the Seller shall be satisfied prior to closing or from Seller's proceeds at time of closing.
51 TAXES AND ASSESSMENTS: Seller & Buyer agree to prorate taxes, special improvement assessments for the current tax year, as well as pre -paid rents, if any, as of the date of closing, unless
52 otherwise agreed.
53 CLOSING DATE: The date of closing shall be 19 The parties may, by mutual agreement, agree to close the transaction at any time prior to the date
54 specified. If third party financing is required by the terms of this agreement (includes assumptions, contracts for deeds, and lender financing). the closing shall occur on the date specified or as soon
55 thereafter as financing is complete but no later than 30 days after the stated closing date. The Buyer and Seller will deposit with the closing agent all instruments and monies necessary to
56 complete the purchase in accordance with this agreement. If Buyer fails to make written application for financing, apply for assumption of an existing loan or contract, or initiate any action required for
57 completion of a contract for deed by 5:00 p.m. (mountain time) , 19 , Buyer will be in breach and Seller can exercise Seller's remedies under this
58 agreement. If financing is called for herein and cannot be obtained, it is agreed that the earnest money will be returned to the buyer.
59 F.H.A. BUYER. The appraised value of the property being purchased, for mortgage insurance purposes, must not be less than `•""•"'•'"""•••."``•`••`•••••••"". ••
60
61 ($ Z Please refer to this section on page 2 of this form for additional disclosures of your rights.
62 ADDITIONAL TERMS THAT ARE AN INTEGRAL PART OF THIS AGREEMENT ARE PRINTED ON PAGE 2 OF THIS FORM. PLEASE READ PAGE TWO OF THIS FORM, AS THESE TERMS WILL
63 AFFECT YOUR RIGHTS AND RESPONSIBILITIES UNDER THIS AGREEMENT.
64 The parties to this agreement confirm that the real estate licensees identified hereafter have been involved in this transaction in the capacities indicated below and the parties have previously received the
65 required statutory disclosures setting forth the licensees duties and the limits of their obligations to each party:
66 N /A
67 of is acting as ❑ Seller's broker\salesperson; ❑ dual broker\salesperson; ❑statutory broker.
(name oflicensee) (name of brokerage company)
68
69 N/A
70 (name of licensee( (name of brokerage company)
of is acting as ❑ Buyer's broker\salesperson; ❑ dual broker\satesperson;❑ statutory broker;
71 ❑ Seller's brokeAsalesperson (includes Seller's subbroker or salesperson).
72 BUYER'S ACKNOWLEDGMENT: Buyer acknowledges that he/she has examined the real and personal property, that Buyer enters into this agreement in full reliance upon his/her independent
73 investigation and judgement, that prior verbal representations by the Seller or Seller's agents or representatives do not modify or affect this agreement, and that by signing this agreement Buyer
74 acknowledges having read and understood this entire agreement, including the terms printed on the second page of this document.
75 BUYER'S COMMITMENT: I/We agree to purchase the above -described property on the terms and conditions set forth in the above offer and grant to said Salesperson until
76 ,19_ at O am O Pm to secure Seller's written acceptance. Buyer may withdraw this offer at any time prior to Seller's written acceptance.
77 If Seller has not accepted by the time specified, this offer is automatically withdrawn.
78 I/WE HEREBY ACKNOWWDGE receipt of a copy of this RECEIPT AND AGREEMENT TO SELL AND PURCHASE bearing my/our signature(s). /
79 Buyer's Address:y Q 0,6Y -2p -2 6- Buyer Signat G C�•�^
80 Phone:._a l� - �'`'S.JL—.�O V v---__ Buyer Signature
81 SELLER'S COMMITMENT: I/We agree to sell and convey to Buyer the abu..: described property on the terms and conditions hereinabove stated. I/We acknowledge receipt of a copy of this agreement
82 bearing my/our signature(s) and that the 3uyer named above. Dated this day of _ at time am _—pm
83 Seller's Address: Seller Signature-�.-,.�
84 Phone: Seller Signature
0 Montana Associaflon Of RFAI.TORSO REVISED 10/10/9F ar.r-02) (3SELPUR PSI 2/96)