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12-06-2010 HRA MIN• MEETING OF THE ELK RIVER Members Present: Members Absent: Staff Present: Also Present: HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, DECEMBER 6, 2010 Chair ~jv'ilson, Commissioners Lieser, Motin and Toth Commissioner Kuester Economic Development Assistant Annie Deckert and Recording Secretary Debbie Huebner 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment Authority was called to order at 5:30 p.m. by Chair Wilson. • 2. Consider December 6, 2010 HRA Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER LIESER TO APPROVE THE DECEMBER 6, 2010 HRA AGENDA AS PRESENTED. MOTION CARRIED 4-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER LIESER AND SECONDED BY COMMISSIONER TOTH TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. HRA MINUTES 3.2. CHECK REGISTER 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT MOTION CARRIED 4-0. 4. One~Mike - No one appeared for Open Mike. Presentation, Matthew Eichenlaub; Housing Attorney, HOME Line Mr. Eichenlaub explained that he provides tenant advocacy for tenants in homes that are going through foreclosure. He stated that one-half to one-third of homes of the tenants they have spoken with are in foreclosure. Mr. Eichenlaub noted that the number of calls is steadily increasing: 79 in 2006; 427 in 2007; 1,000+ in 2008; 1,200 in 2009 and 1,200+ are expected for 2010. He stated that most tenants find out the home is in foreclosure when the get the knock on the door for the sheriff's sale. Housing & Redevelopment .Authority Minutes December 6, 2010 Page 2 Mr. Eichenlaub stated that tenants should not panic because they do not have to move out • immediately, and actually have quite a bit of time before they have to be out He explained that every=thing stays the same during the 6-month redemption period and the tenant continues to pay rent. After six month, the bank is the owner of the property and the lease becomes month-to- month. The tenant has 90 days to move out if the lease was originally month-to-month and if the lease was aone-year lease, they may stay for the remainder of the lease. Chair Wilson asked how tenants can contact the HOME agency he represents. Mr. Eichenlaub stated that their contact information is included with the paperwork provided in the sheriff's sale notice, and can also be found on the Internet, through the United Way, and through various counties and cities. Ms. Deckert stated the information is also being provided during the community foreclosure forums, mass mailings, the city's foreclosure outreach materials, and online on the city's website and social media sites. Commissioner Moon asked what happens when a lease ends. Mr. Eichenlaub stated that the lease automatically becomes month-to-month and tenants must be given/or be given proper notice. Chair Wilson asked what type of rental units are most often in foreclosure. Mr. Eichenlaub stated that most are single-family homes or duplexes. He explained that there are more and more "accidental" landlords, due to people giving up their homes because they cannot afford to stay in them and renting them out. He stated that he also sees 4, 6 and 8-plexes and larger buildings in foreclosure. Chair Wilson asked if there are any rentals in Elk River in foreclosure. Mr. Eichenlaub stated there are in Sherburne County. He noted that ten percent of their total calls are foreclosure calls, and 15 - 18 percent are from Sherburne County. He noted that Wright County is also very high. Ms. Deckert asked if Mr. Eichenlaub had any advice for prospective tenants. He suggested that they • try to do their homework; call the sheriff s office to see if there is a pending sale. He suggested that tenants could ask for a separate clause in their rental agreement for a discount on the rent in the event of a foreclosure. Chair Wilson asked what are most tenants doing when they find out a home is going into foreclosure. Mr. Eichenlaub stated that most banks want the home empty when they take over so they can resell as quickly as possible. He stated banks may do a "cash for keys" offer, which is essentially relocation assistance, if the tenant is willing to get out sooner. Commissioner Toth stated he felt it would be difficult for a tenant to find out if a foreclosure is likely to happen. Mr. Eichenlaub concurred, stating that other than finding out if there is a sheriff's sale pending, they could try to find out if the mortgage is in arrears. He noted that most of this information is private until time of a foreclosure. Ms. Deckert stated that Sherburne County website has information regarding vacant or abandoned property which has gone through a sheriff's sale. She asked what tenants should do if they find out a home is in foreclosure. Mr. Eichenlaub stated that they should plan ahead, knowing that it will take at least the six months redemption period before they would have to be out. Chair Wilson asked what is the availability of rental housing. Mr. Eichenlaub stated that the number one issue is that it is expensive to move. The tenant may be able to save some money, since they likely will hot have to pay rent for the 90-dap period they have. But, he noted that most rentals . require first and last month's rent plus a security deposit. He stated that is difficult to get back a security deposit on a foreclosure, even though it is supposed to be returned or transferred on. A • tenant can pursue filing a claim in small claims court. Housing & Redevelopment AuthorityMinutes December 6, 2010 Page 3 • Ms. Deckert stated that the City of Elk River does require rental licenses and inquired as to other ways a city could help protect themselves from rental homes going into foreclosure. Mr. Eichenlaub stated that rental licenses are a good thing and helps ensure properties are up to code. He noted that the cityshould not tryto provide legal assistance and can refer tenants to his office. 6. Housing_Activities Update Ms. Deckert stated that that a free community foreclosure forum was held on Saturday, November 20th at the Elk River YMCA. A second forum will be held on January 15th at the YMCA from 9 - 11. She noted that she will be speaking at the Three River's Area Citizens League lunch on January 19, 2011 at noon to discuss the city's foreclosure initiatives and prevention strategies. Ms. Deckert stated that staff has begun attending the Police Department's monthly multi familyhousing crime preventing program meetings to build relationships with the rental property owners in the community. Housing tool-kit brochures and information on programs and utility rebates were provided to meeting attendees. Ms. Deckert stated that approximately $9,000 of NSP dollars remain for down payment assistance. Staff will be working with local realtors and lenders to market the remaining funds. 7.1. CommunityForeclosure Forum Commissioner Motin stated he attended the foreclosure forum held on Saturday, November 20th at the YMCA. He felt it was a good program and he was glad that it would held again. He strongly urged residents to report any abandoned, vacant properties they may see, so that measures can be • taken to prevent water lines from freezing. 7.2. Vision and Goals Chair Stewart stated that he met with Annie Decken, Cathy Mehelich and Ron Touchette to discussed the vision and goals. He stated that the HRA and EDA share of the same goals and felt it was good to discuss them so that they do not overlap. This issue will be discussed at a future meeting. December 13th was tentatively set for a joint meeting of the EDA, HRA and City Council. Ms. Deckert noted that staff will meet on December 8th to discuss the city-wide branding campaign. 8. Adjournment There being no other business, Chair Wilson adjourned the meeting. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:05 p.m. Minutes prepare byD bbie Huebner. ~_.._ Tina Allard City Clerk ~ ~-~? _. ~ r • Stewart Wilson Chair, Housing and Redevelopment Authority • • •