4.1 HRSR 05-05-2014 HRA MIN 4 ITEM it 4.1
i
Elk Meeting of the Elk River
River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, May 5, 2014
Members Present: Chair Wilson, Commissioners, Kuester, Chuba and Motin
Members Absent: Commissioner loth
Staff Present: Economic Development Director Brian Beeman, Economic
Development Specialist Colleen Eddy, Community Operations and
Development Deputy Director Jeremy Barnhart, and Sr.
Administrative Assistant Debbie Huebner
Also Present: Jenny Boulton, Kennedy & Graven
I. 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 5:3() p.m. by Chair Wilson.
2. Pledge of Allegiance
The Pledge of_\llegiance was recited.
3. Consider 05/05/2014 Agenda
Moved by Commissioner Kuester and seconded by Commissioner Chuba to
approve the May 5, 2014 agenda. Motion carried 4-0.
4. Consent Agenda
Moved by Councilmember Motin and seconded by Councilmember Kuester
to approve the following consent agenda:
4.1 Minutes
• April 7, 2014, Regular Meeting
• April 7, 2014, Workshop Meeting
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Report
Motion carried 4-0.
5. Open Forum
No one appeared for Open Forum.
I Iousing and Redevelopment Minutes Page
May 3,2M14
6. Public Hearings - None
7.1 Housing & Redevelopment Authority (HRA) Owner-Occupied
Rehabilitation Policies & Procedures and Budget Amendment
Brian Beeman presented the staff report. The HR.\ was asked to approve the
following:
1) Resolution Approving Housing Rehabilitation Loan Program
2) The Elk River HRA Owner-Occupied Housing Rehabilitation Program Policies
and Procedures.
3) The HRA Rehab Owner-Occupied Housing Rehabilitation Program
Administrative Agreement with CMHP to administer the new housing program.
4) The Elk River HRA Rehabilitation Loan Application
5) Elk River HRA Rehabilitation Loan Program Contractor Owner Agreement.
6) Elk River HRA Rehabilitation Program Mortgage and Repayment Agreement
Owner-Occupied I-lousing Rehabilitation Program.
7) A budget amendment to transfer funds in the amount of$1()0,()00 from the
HRA fund balance to the HRA contractual services line item.
Jenny Boulton of Kennedy & Graven, explained the program revision with the
income limits. She stated that the PIRA may revise the program to remove the
income restrictions and recommend the City Council hold a public hearing for the
revised program, and also, to submit the plan to the Planning Commission to
determine if the plan is consistent with the city plans as a whole.
Commissioner Chuba asked what the income restrictions were. Ms. Boulton stated
that the limit is 115 percent of the median area income, using the Twin Cities metro
area ($89,200). 115 percent would be approximately S95,000 plus.
Commissioner Motin asked if the HRA has to have income restrictions. Ms.
Boulton stated no, and that if the HRA wished to allow more people to be eligible,
they could revise the program to have no income restrictions. Commissioner Motin
stated that the HRA designated the target area to entice people in this area to fix up
their property. He explained that once the 1-IRA learned they not receive state
funding for a rehab project, they wanted to put their money into this program. Chair
Stewart agreed that the I IRA wanted to focus on this particular area. NIs. Boulton
stated that the HR1\ could open it up to have no income restrictions and future
phases could focus on affordable housing or identify other target areas.
Commissioner Chuba asked if the income was based on gross income. Ms. Boulton
stated that the guidelines are for actual income and that she had forms available the
HRA could review that would explain how income is determined.
Chair Wilson asked if they left the income restriction language as is, could they still
identify a specific area. Ms. Boulton stated yes.
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I Iousing and Redevelopment Minutes Page 3
May 3,21114
Commissioner Motin stated he preferred there he no income restriction and felt the
more property owners that participated, the better.
Commissioner Chuba stated that he did not feel the S89,0()0 income was too
restrictive. (;ommissioner Kuester stated she did not feel the HRA should hold off
on getting the program jump-started. Commissioner Chuba agreed and stated that
the HRA will find out when people apply whether or not the income limit is too
restrictive.
Discussion followed regarding starting the program with the existing income
restriction and also proceed with the process to obtain the required approvals for a
program with no income restrictions. Commissioner Kuester suggested the two
programs could be merged when the proper steps have been taken.
Motion by Commissioner Chuba and seconded by Commissioner Kuester to
approve Resolution 14-02, a Resolution Approving Housing Rehabilitation
Loan Program. Motion carried 4-0.
Motion by Commissioner Motin and seconded by Commissioner Kuester to
recommend the City Council call a public hearing for July 7, 2014 to consider
a redevelopment plan without income restrictions. Motion carried 4-0.
Motion by Commissioner Motin and seconded by Commissioner Chuba to
recommend approval of a budget amendment to transfer funds in the amount
of$100,000 from the HRA fund balance to the HRA contractual services line
item. Motion carried 4-0.
8. Announcements - None
9. Adjournment
There being no further business, Chair Wilson adjourned the meeting of the Elk
River Housing and Redevelopment Authority at 6:00 p.m.
Minutes prepared by Debbie Huebner.
Stewart Wilson, Chair
I lousing e Redevelopment Authority
Tina Allard, City Clerk
P C N i? 'r. II Ii Y
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