4.1B 04-07-2014 HRA MIN DRAFT City of
El* Special Workshop Meeting of the Elk River
River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, March 3, 2014
Members Present: Chair Wilson, Commissioners,Kuester,Toth, Chuba, and Motin
Members Absent: None
Staff Present: Economic Development Director Brian Beeman, Community
Operations and Development Deputy Director Jeremy Barnhart, and
Sr. Administrative Assistant/Recording Secretary Debbie Huebner
Also Present: Seth Kauffman, Central Minnesota Housing Partnership, Inc.,
Program Manager
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0 Puns .� . to d ll and e thereof e `, ting of lk River Housing. '®
Rede ,,4**me Authority was called rd• 6:00 p.m Chair Wilson.
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Mov t+y Co issio-;,-.4 Kuest ', b . ,,,.4d by missioner Moti
app « -: the March 3,2€.�,r=,wor 'p"meeti == !en Motion carried 5-
+ass Sm ities rtlfent Prog G Preliminary
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Seth Kauffman, CMHP Program Manager,was present to discuss the HRA's
preliminary application. Discussion followed regarding including commercial and
rental rehab to the next proposal. He recommended that the HRA continue with
developing their own housing rehab program to address the issues of highest
importance. Commissioner Kuester asked how non-profit organizations would be
classified. Mr. Kauffman stated they would be viewed the same as commercial
businesses.
3.2 Discuss Development of HRA Housing Rehabilitation Program Policy
Mr. Kauffman reviewed the target area identified by their windshield survey.
Commissioner Toth asked if the triangular-shaped area west of Vernon Estates could
be included in the target area. He stated that some of the homes are over 100 years
old.
Mr. Kauffman addressed the following in his presentation:
Housing and Redevelopment Workshop Meeting Minutes Page 2
March 3,2014
• Housing type and location (target area)
• Ownership, taxes and insurance
• Outcomes of program
• What funds cannot be used for
• Financing terms
• Construction process
• CMHP's responsibilities
Chair Wilson, Commissioner Motin and Mr. Beeman left at 6:30 p.m. to attend the
City Council meeting.
Members of the HRA discussed various financing term options including
minimum/maximum loan amounts, deferred forgivable loans/owners'match,
number of years of the loan,number of years owner must stay in the home in order
to be forgiven and interest rates. Further discussion was given to the purpose/goal
of the program and whether or not to include rental properties.
Mr. Kauffman stated that they have had good success with a 7-year forgivable loan.
He explained that a deed restriction is placed on the property, so that if the
homeowner sold the project early, they would pay back a portion of the loan based
on the number of years already paid, out of the proceeds of the sale.
The question was raised as to what CMHP's fee would be to administer the HRA's
program. Mr. Kauffman stated the fee would be 15 percent of the project dollars
(i.e., $100,000 in funds disbursed—fee would be $15,000).
Discussion followed regarding a dollar amount to begin the program. Suggestions
ranged from$100,000 to $300,000 over the next two years.
Mr. Kauffman reviewed the following documents provided to the HRA:
• Sample application
• Sample policy and procedures
• Sample scope of work
• Sample contract between homeowner and contractor (deferred loan)
• What to expect and what not to expect during owner-occupied rehab
• Renovate right
Mr. Kauffman stated that CMHP would like to see a 3-year agreement with the City
of Elk River. It was the consensus to discuss this issue further at another HRA
workshop in April following the regular meeting (April 7,2014).
PRWERER I ?
NATURE
Housing and Redevelopment Workshop Meeting Minutes Page 3
March 3,2014
4. Adjournment
There being no further business,Vice Chair Toth adjourned the workshop meeting
of the Elk River Housing and Redevelopment Authority at 7:25 p.m.
Minutes prepared by Debbie Huebner.
Stewart Wilson, Chair
Housing&Redevelopment Authority
Larry Toth,Vice Chair
Housing&Redevelopment Authority
Tina Allard, City Clerk
POwEaE0 OY
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