7. HRSR 08-05-2013 El REQUEST FOR ACTION
River
TO ITEM NUMBER
Housing and Redevelopment Authority 7.
AGENDA SECTION MEETING DATE PREPARED BY
August 5, 2013 Brian Beeman,Director of Economic
Development
ITEM DESCRIPTION REVIEWED By
Hire CMHP or Tri-CAP to write&administer grants and HRA Jeremy Barnhart,Assistant
housing goals. Community Operations and
Development Director
IREVIEWED BY
ACTION REQUESTED
Hire CMHP or Tri-CAP to write and administer grants and HRA housing goals.
BACKGROUND/DISCUSSION
The HRA has indicated a strong interest in being more proactive in housing programs. At the May 6,
2013 HRA meeting, the HRA set some housing goals and directed staff to address some community
housing needs including: 1s`time home buyer's assistance, affordable housing,rehab assistance, and
foreclosure prevention.
In developing draft policies to address these goals, Staff has met with the Minnesota Housing Finance
Agency (MHFA),Minnesota Central MN Housing Partnership (CMHP),Tri County Action Partnership
(Tri-CAP),Brooklyn Park and Coon Rapids staff, and researched several other Minnesota housing
programs.
Through this process,it became clear that outside agencies provide the services desired by the HRA,at a
fraction of the cost of administering our own program. For example, CMHP or Tri-CAP can address the
HRA's preferences for l' time buyer's assistance, affordable housing, rehab assistance, foreclosure
prevention,and a variety of other housing programs. It is staffs recommendation that the City utilize
these resources more aggressively for the benefit of city residents.At the July 8, 2013 HRA workshop,it
became clear that the HRA would like to focus on rehabbing housing in Elk River and were interested in
the Small Cities Development Program (SCDP) to accomplish this goal.
The HRA met in a workshop July 8, 2013 to hear presentations from CMHP and Tri-CAP.The HRA
discussed pros and cons of both agencies and how each agency would or would not be able to meet the
HRA's housing goals. After discussing options, the HRA focused discussion on the Small Cities
Development Program (SCDP) and directed staff to gather information regarding each organization's
administration of the SCDP for the August meeting. The SCDP grants funds to local units of
government who then lend out to home or business owners for rehabilitation or new construction based
on community needs. In order to start applying for the SCDP for 2014, one of the agencies will need to
start the grant writing process in August or September 2013 to meet the pre-application deadline.
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Industrial Incentive Microloan Application PPC .docx NAME
Below is a table comparing the two agencies regarding administration of the SCDP grant program.
Comparison of SCDP Administration
CMHP Tri-CAP
Preliminary Application $350 $0
Fee
Experience 11 successful grant None
applications in the past
9 years
Other Programs Home Stretch,Will Lead Testing,Radon testing,
Offered work with Tri-CAP to Energy Audits,Financial fitness,
offer their programs Food Support,Tax Assistance,
Weatherization
Payback 0% deferred forgivable 0%deferred forgivable loan
loans with flexible term with flexible term
Use City Building Yes Yes
Inspectors
Tiered Loan Structure? Yes Yes
(Borrower pays a
portion of the loan and
the rest is forgivable)
Leverage funds $25,000 10-20%of funding request
recommended
Administrative Fees 15%of funding request 15%of funding request
Many of the requirements are mandated by the state,but there are some differences between the two
organizations. Each organization offers unique programs,however the two agencies work together often.
Regardless of which agency receives the grant,they will partner with the other agency to provide
information on both agencies'programs.
The leverage funds were estimates provided by each organization. Both have stated that the more the
HRA puts in,the more likely the application is to get funded. This figure would be determined by staff
and the HRA with the guidance of the administrating organization at the time of application.
Attachments:
None