4.1b HRSR 05-05-2014 DRAFT City of
fl1PAET
Elk , Special Workshop Meeting of the Elk River
River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, April 7, 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 Debbie Huebner
Also Present: Seth Kauffman, Central Minnesota Housing Partnership, Inc.,
Program Manager
. 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 5:55 p.m. by Chair Wilson.
2. Consider 04/07/2014 Agenda
Moved by Commissioner Motin and seconded by Commissioner Kuester to
approve the April 7,2014 workshop meeting agenda. Motion carried 4-0.
3.1 Discuss Small Cities Development Program Grant Preliminary
Application
Mr. Kaufman stated that he will provide an update next month on this topic.
3.2 Discuss Development of HRA Housing Rehabilitation Program Policy
Mr. Kaufman reviewed funding issues as follows:
• Total funding- $300,over 3 years with a 15%administrative fee
• Financing term options -
• 5 year loan at 2%below prime rate: $5,000 to$10,000 5 year loan
• 10 year loan at 1%below prime rate: $10,000 to $20,000 5 or 10 year
loan
• 15 year loan at prime rate: $20,000 to $25,000 5, 10 or 15
year loan
• Application& application process
Housing and Redevelopment Workshop Meeting Minutes Page 2
April 7,2014
Commissioner Motin asked where the funds will come from. Mr. Beeman stated
that the funds would come from the HRA reserve funds,which are currently
$927,000.
Discussion followed regarding the option of increasing the levy to replenish the
reserves, terms for repayment of the loans, and what kind of interest there would be
in using the loan program. The Commissioners were in agreement there likely would
be fewer applications the first year,but through"word of mouth", there would likely
be more interest the second and third years. Commissioner Motin stated he
supported staggering the total loan amount, such as$70,000 the first year,and
increasing in the second year. Mr. Kauffman stated that if he ends up with a waiting
list, he will inform the HRA.
Commissioner Chuba stated the only"hole"he sees in the HRA's rehab plan is the
lack of a program to rehab single family rental units. Mr. Kauffman stated there are
programs available,but the demand needs to be there in order to be worthwhile
pursuing. Commissioner Chuba stated that he felt the bottom line is that the HRA
wants to make the whole city look better. Chair Wilson stated that he would not
want to hold up this program to explore single family rental rehab now.
Commissioner Motin suggested that they start the program they are currently
working on and see what the needs are. Mr. Kauffman stated that often when they
start the rehab projects, they get calls from renters/landlords inquiring if they can
participate.
Mr. Kauffman asked if the HRA would like to expand the target area to the entire
city,as had been suggested. He stated that currently, the target area includes the area
identified in the Comprehensive Plan Land Use Map as Old Town,with the addition
of a triangular-shaped area of older housing north of the railroad tracks,west of
Evans Street,roughly between l' and 2"d Streets. Commissioner Chuba stated he
did not have a problem expanding to include the entire city. Chair Wilson stated that
he would like to focus more on Old Town. Commissioner Kuester stated she felt
the target area should be where there are houses closer together for the most impact,
as in the Old Town district. Commissioner Motin stated he agreed with Chair
Wilson that Old Town is more in need to rehab,and the HRA could always expand
to include other areas if property owners aren't applying for the program.
Chair Wilson asked if there would any coaching or help for applicants to fill out the
forms. Mr. Kauffman stated that the only paperwork the applicants need to
complete is the initial application,which includes providing the legal description of
their property, and then obtaining bids. He felt the process was quite simple for the
homeowners.
Commissioner Chuba asked how soon the HRA could implement the program. Mr.
Kauffman stated that after final approval, they would be ready to start immediately.
Mr. Beeman stated that the final documents can be presented to the HRA at next
month's meeting (May 5) for approval and go to the City Council that same night. A
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Housing and Redevelopment Workshop Meeting Minutes Page 3
April 7,2014
budget amendment would also be required in order to transfer the funds. Mr.
Kauffman stated that now is prime construction season and they could get started as
soon as the necessary approvals are completed.
4. Adjournment
There being no further business, Chair Wilson adjourned the meeting of the Elk
River Housing and Redevelopment Authority at 6:20 p.m.
Minutes prepared by Debbie Huebner.
Stewart Wilson,Chair
Housing&Redevelopment Authority
Tina Allard, City Clerk
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