03-07-2016 HRA MIN 6 z
'ElkMeeting of the Elk River
River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, March 7, 2016
Members Present: Chair Toth, Commissioners Burandt,Chuba, Eder and Kuester
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt, Economic
Development Specialist Colleen Eddy and Recording Secretary/Sr.
Administrative Assistant Debbie Huebner
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 5:30 p.m. by Chair Toth.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider 3/7/2016 Agenda
Moved by Commissioner Burandt and seconded by Commissioner Kuester to
approve the March 7,2016, agenda. Motion carried 5-0.
4. Consent Agenda
Moved by Commissioner Kuester and seconded by Commissioner Chuba to approve
the consent agenda:
4.1 February 1,2016 Regular Meeting Minutes
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Report
4.5 HRA Housing Rehab Report
Motion carried 5-0.
5. Open Forum - No one appeared for Open Forum.
6.1 Public Hearings -None
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March 7,2016
7. General Business-None
8.1 HRA Rehabilitation Loan Program Continuation and Allocation of Funds
Ms. Othoudt introduced Ed Zimney of CMHP,who present to answer questions regarding
the HRA's housing rehab loan program.
Ms. Eddy reviewed the success of the HRA's loan program and CMHP's role in the
program. Ms. Eddy stated that ads have generated a lot of interest and staff has been
tracking the location of those interested in the program. She noted that the majority of
those are outside the target area. Ms. Eddy reviewed the types of improvements that have
been made under the program,noting that there have been no late payment issues.
Commissioner Eder stated that if the target area was expanded, she felt they need to be
careful, as they might have an overwhelming response. She stated she would like to continue
concentrating their efforts in a smaller area.
Ms. Othoudt stated that there have been 8 projects in the 3 years of the program and she felt
there are more potential projects in this area. She asked if the HRA wished to continue the
program.
Chair Toth stated that he has noticed problem areas mixed in areas having newer housing.
Commissioner Chuba suggested criteria could include age of the home. Commissioner Eder
agreed,and asked if the current criteria addresses the age of the home. Ms. Eddy stated no.
Commissioner Eder asked if there was an opportunity to revise the criteria to include age of
the home. Ms. Othoudt stated yes.
Mr. Zimney discussed the history of how the criteria and target area were determined. Ms.
Othoudt stated that this program is strictly using HRA funds and they would have more
flexibility in revising the target area and qualification criteria. She explained that the HRA
would need to determine whether or not they wish to continue the program and how much
money they want to allocate to each of the programs (rehab,blighted residential and
commercial).
Mr. Zimney stated he is discussing with staff the option of having another informational
meeting to facilitate interest. Ms. Othoudt asked him if the HRA is able to change the
guidelines for the rehab program. Mr. Zimney stated yes, since it is their program.
Commissioner Eder stated she is in favor of changing the guidelines to expand the area.
Commissioner Kuester agreed,but added that she would like to see the age of the home
considered as qualifying criteria.
Ms. Othoudt asked Mr. Zimney to work with Jason Krebsbach to revise the agreement
language to include older homes.
Commissioner Chuba discussed the failure of organic shingles on newer homes and felt this
issue could be considered in the criteria for the rehab program loan. He explained the ��
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March 7,2016
problem is a result of product failure,which is not covered by homeowner's insurance and
homeowners would have to pay for replacement of the shingles out of pocket.
Discussion followed regarding the targeted area. Mr. Zimney stated that the reduced area
included 101 homes,and they received inquiries from 9 homeowners. Commissioner
Burandt stated that the program is still relatively new and people may not be aware of it.
The HRA reached a consensus that they would like to continue the housing rehab program
for another two years,making revisions to the program to include older housing stock. Ms.
Eddy asked that the HRA think about any other revisions they would like included. Ms.
Othoudt stated she will work with CMHP on the revisions and bring back to the HRA for
further discussion.
Chair Toth stated that two areas he would like to look at for inclusion in the target area are
1) the area west of the Orono Dam,and 2) the Schoolview Addition neighborhood located
west of Jackson Avenue and north of the high school.
Commissioner Eder suggested sending information on the housing rehab program to local
realtors to pass onto their clients.
Ms. Othoudt noted that staff is working on a video to promote the program, featuring
completed projects and testimonials from the homeowners. She stated she will present it to
the HRA when it is completed.
8.2 Blighted Properties Program Allocation of Funds
Ms. Othoudt presented the staff report for this item. She stated that there has been a lot of
interest in the commercial/industrial program and she has received their first application.
The HRA discussed allocation of the loan programs as follows:
Commercial/Industrial Blighted Properties Program $225,000
Residential Blighted Properties Program $125.000
Total Blighted Properties Programs $375,000
Housing Rehabilitation Program $625,000
Discussion followed regarding the Rehab Program and continuing it for two years.
Discussion followed regarding the language in the residential blighted properties loan
program which references connecting to city services. Chair Toth stated he would like this
information to be on the application so it is clear to the applicants.
Ms. Othoudt stated she will bring this item back to the HRA at a later meeting.
8.1 Adjournment
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March 7,2016
Chair Toth adjourned the meeting at this time.
The meeting adjourned at 6:25 p.m.
Minutes prepay-• by ebbie Huebner.
Tina Allard, City Clerk
Larry Toth, air
Housing&Redevelopment Authority