11/14/2007 P&Z Packet - Laserfiche WebLink

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• • • AGENDA ITEM 5A STAFF ORIGINATOR: Michael Grochala P & Z MEETING DATE: November 14, 2007 TOPIC: Amending Section 3, Subd. 3.B. Unsewered Lots APPLICANT: City of Lino Lakes BACKGROUND At the Open Mike portion of the August 13, 2007 City Council Meeting, the owner of property located at 1612 Birch Street requested city assistance in his attempt to secure a reverse mortgage on the 15 acre property. The property is not currently served by municipal sanitary sewer and lies within the R, Rural Zoning District. Unsewered properties within the City are subject to a 10 acre minimum lot size. The owner stated that the reverse mortgage option was only available to properties that are three acres or less in size. The council directed staff to review the issue and report at a future work session. Reverse mortgages are a special type of home loan that lets a homeowner convert the equity in his/her home into cash. They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more. Homeowners 62 years and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in HUD's reverse mortgage program. The program allows homeowners to borrow against the equity in their homes. Unlike ordinary home equity loans, a HUD reverse mortgage does not require repayment as long as the borrower lives in the home. Lenders recover their principal, plus interest, when the home is sold. The remaining value of the home goes to the homeowner or to his or her survivors. If the sales proceeds are insufficient to pay the amount owed, HUD will pay the lender the amount of the shortfall. The Federal Housing Administration, which is part of HUD, collects an insurance premium from all borrowers to provide this coverage. This issue was previously before the City in 2004. At that time the property owners had requested approval of a minor subdivision requiring variances for both minimum lot area and lot width. The variance request was recommended for denial by the Planning & Zoning Board. The City Council denied the request on April 26, 2004. At the September 5, 2007 City Council work session the council directed the City Attorney to prepare an amendment to the City Zoning Ordinance for consideration. The council subsequently reviewed draft ordinance language at their October 1 and November 5, 2007 work sessions and directed staff to initiate the amendment process.