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03-07-2011 HRA MIN• MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, MARCH 7, 201 I Members Present: Chair Wilson, Commissioners Kuester, Lieser, Motin and Toth Members Absent: None Staff Present: Economic Development Director Catherine Mehelich, Marketing and Business Development Administrator Annie Deckert, Recording Secretary Debbie Huebner Also Present: Laura Ostlie, Lutheran Social Services 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 March 72011 HRA Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER TOTH TO APPROVE THE MARCH 7, 2011 HRA AGENDA AS PRESENTED. MOTION CARRIED 5-0. Consider Consent Agenda MOVED BY COMMISSIONER KKUESTER AND SECONDED BY COMMISSIONER LIESER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. HRA MINUTES 3.2. CHECK REGISTER 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT 3.5. ADOPT REGULAR HRA MEETING SCHEDULE FOR YEAR 2011 MOTION CARRIED 5-0. 4. Open Mike - No one appeared for Open Mike. BASIC Outreach Update -Commissioner Lieser Commissioner Lieser provided an update on the Great River Family Promise program • (formerly known as BASIC Outreach). She explained that the program is a 501c3 nonprofit that is working to provide a network of temporary shelters for the homeless in the area. Housing & Redevelopment Authority March 7, 2011 Page 2 Five churches in Elk River participated by offering shelter for five weeks around • Thanksgiving, but there were no participants. She noted that there is a concern for finding a place for families to go during the day, as they would not be able to stay at the churches during daytime hours. She stated that their goal is to have a total of 13 churches so each church would rotate one week participation every three months. She explained that they are looking for volunteers to serve on four basic committees and reviewed the responsibilities proposed for each group: 1) Host Congregation Recruitment; 2) Day Center; 3) Transportation; and 4) Fundraising. Commissioner Lieser stated that the next meeting of the group will be March 10, 2011, 7:30 p.m. at Central Lutheran Church. She stated that the organization hopes to open permanent shelter housing in 2012. 6. Presentation -Foreclosure Prevention Counseling Services Provided b~Lutheran Social Services in Partnership with MN Home Ownership Center Ms. Deckert stated that the HRA partnered with the MN Homeowners Association in 2008 to create and distribute foreclosure prevention information to the local community. Staff has held foreclosure forums to educate homeowners about the free foreclosure prevention counseling that is available. Ms. Deckert introduced Laura Ostlie of Lutheran Social Services. Ms. Deckert stated that Ms. Ostlie is aHUD-certified foreclosure prevention counselor. Ms. Ostlie serves the Elk River area, working out of the Willmar and St. Cloud offices. She noted that Ms. Ostlie provides both in-person counseling and phone appointments. Ms. Ostlie explained that Lutheran Social Services is the HUD-approved housing counseling agency in Sherburne County, serving the Elk River area. LSS serves approximately 50 counties within the state. She stated that approximately three ago, the State of Minnesota • required all mortgage servicers to notify their homeowners behind on their mortgage payment who their housing counseling agency is. Ms. Ostlie stated that 4,000 foreclosure information packets were given out during 2009 - 2010, with approximately one-third of those people being from Elk River. Only 100 of those utilized foreclosure counseling services. She explained that they are currently working with people who have never been in financial distress before, due to unemployment. Also, they are dealing with homeowners who have been trying to work with their mortgage company on modifications for the past couple of years. The goal is to make sure homeowners are aware of their rights and responsibilities, and to assist them in working with their mortgage servicers/lenders. She noted that in some cases, saving the home may not be the best option. Chair Wilson stated he was concerned that only 100 families out of 4,000 utilized the counseling services and wondered why. He asked how an agency became "HUD-certified". He felt it would be helpful for people to know they are qualified. Ms. Ostlie stated she felt the numbers seeking counseling is because homeowners are scared. She stated that each lender is required to report to the nearest counseling agency that a mortgage is delinquent. Packets are mailed out to the individuals, but people going through hardships don't like to open their mail. Ms. Ostlie explained that in order to become HUD certified, counselors go through training, testing, and on-going trainings, due to the number of changes within mortgage industry and housing counseling services. In three years, lots of changes revamp services and stay on Home Affordability Modification Program is first option they look at in trying to save the home. She noted that homeowners are probably not aware of the latest information and changes. • Housing & Redevelopment Authority March 7, 2011 • Commissioner Toth asked if LSS is automatically notified when a homeowner is behind. Ms. Ostlie explained that when a homeowner is delinquent by one month, the lender must provide them with notice and a phone number to call if they are facing a hardship. The servicer/mortgagor must also notify housing counseling agency (LLS in this area). LSS sends numerous informational packets to them, but LSS cannot do anything until the homeowner contacts them. Commissioner Kuester asked when contacting banks, what difficulties are encountered. Ms. Ostlie stated that homeowners are often not prepared with all of the information they need. She explained that each state has a different process. She noted that lenders may not be aware of laws in specific states, and they are not the decision makers. She explained that the investors decide if it is possible to rework a mortgage. Commissioner Toth stated that he was told by someone going through the foreclosure process that they were continually told their information was "out of date" and kept asking for new information. Ms. Ostlie stated this is a common problem, since the information must be less than 30 days old. She stated that the biggest frustration of homeowners is that they get a different person and a different story every time they call. LSS's job is to make sure they have all of the information when they speak with the lender. Commissioner Kuester stated that providers are changing all the time, and can understand people getting very frustrated. Ms. Ostlie stated that LSS has specific phone lines they can go through to talk with the right person. She explained that Fannie May holds 30% of all the mortgages in Minnesota and that have now officed two of their staff to assist them. Ms. Ostlie stated that homeowners need to make sure complaints are filed with the Attorney General's office if there are problems. Chair Wilson asked what kinds of fees are being charged by scammers. Ms. Ostlie stated fees are anywhere from $200 to $3,500. She stated that she talks to at least one homeowner a day that has been approached by a scammer. She explained that foreclosures are public information, so homeowners are often bombarded with mailings, phone calls, and knocks on their doors. Commissioner Toth asked with the response has been to the foreclosure forums. Ms. Deckert stated that 15 attended the first forum; 20 attended the second; and 25 were in attendance when she spoke at the American Citizens League. She noted that many flyers with foreclosure information have been distributed. Staff will continue to keep the HRA updated on foreclosure issues. The Bluffs of Elk River Commissioner Moon stated that the intent of the Bluffs housing project was the units would be owner-occupied. Commissioner Toth suggested that it may be better to have the units occupied than empty, if they are not selling. Commissioner Motin stated that he would like to know what action could be taken if renting continues long term. Chair Wilson stated that by renting some of the units, the property owner will at least have some income to cover maintenance and taxes. Discussion followed regarding the status of some of the units. Ms. Mehelich stated that 16 of the units are finished, with 10 of those being occupied. She noted that originally some of the rental leases were structured for 3 months and some are now up to 12-month leases. • Page 3 Housing & Redevelopment Authority March 7, 2011 Page 4 Ms. Mehelich noted that the development agreement is with MetroPlains, not MinnWest • Bank. She explained that in March 2010, no action was taken by the HRA or City Council regarding enforcement of the development agreement. Ms. Mehelich stated that if it is the consensus of the HRA to further explore this issue, she will follow up with the city's attorney regarding enforcement of the development agreement. An update will be provided to the HRA and City Council next month. Adjournment There being no other business, Chair Wilson adjourned the meeting. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:15 p.m. Minutes prepared by Deb ie Huebner. ~~ Tina Allard City C Stewart Wilson Chair, Housing and Redevelopment Authority • •