11/26/2007 Council Packet - Laserfiche WebLink

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if there is an identified problem with lending practices then changes should come from the lending industry not the City. The board also expressed concems that the possibility of foreclosures, while limited, could result in a number of nonconforming unsewered lots. The board recommended denial of the proposed ordinance amendment. The vote was unanimous. OPINION The Council's intent is to provide property owners (specifically seniors) with the opportunity to utilize the available equity in their properties primarily through a reverse mortgage instrument. The reverse mortgage option, established by the Federal Housing Administration (FHA), does provide supplemental financial assistance for seniors to meet a variety of needs. However, it should be noted, that the amendment is not restricted to the use of a "reverse" mortgage. The City Attorney has noted that, from a legal perspective, the City cannot distinguish between types of mortgages. Staff is uncertain of the potential impacts that the proposed amendment could have with our rural service policies. However, the requirement that the newly created lots cannot be transferred separately should minimize negative impacts. From a policy standpoint however, staff is concerned with the practice of amending the City's zoning ordinance to satisfy a private institutions and /or an individual's financial requirements. The amendment, in this case, is driven by a financial institutions requirement that limits the applicability of the "reverse" mortgage option to parcels equal to or less than 3 acres. In addition, staff is not in a position to determine what other financial "requirements" there may be that could necessitate further ordinance changes. As such staff is not recommending the proposed ordinance amendment. ATTACHMENTS 1. Ordinance No. 19 -07 • • •