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08-01-2016 HRA MIN �rty of 1 Meeting of the Elk River River Housing and Redevelopment Authority Held at the Elk River City Hall Tuesday, August I, 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 Also Present: Ed Zimny,Central Minnesota Housing Partnership (CMHP) 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 8/1/2016 Agenda Moved by Commissioner Kuester and seconded by Commissioner Eder to approve the July 5,2016, agenda. Motion carried 5-0. 4. Consent Agenda Moved by Commissioner Eder and seconded by Commissioner Burandt to approve the consent agenda,with correction to the minutes, as follows: 4.1 July 5,2016,Regular Meeting Minutes 4.2 Check Register 4.3 Balance Sheet 4.4 Revenue/Expenditure Report Motion carried 5-0. S. Open Forum No one appeared for Open Forum. Housing and Redevelopment Minutes Page 2 July 5,2016 6.I Public Hearings There were no public hearings. 7.1 HRA Rehabilitation Program Update Ms. Eddy presented the staff report. Chair Toth asked if the Star News article will include the new projects. Ms. Eddy stated that the article will include before and after changes for the projects that have been completed. She noted that the new projects could be included in the winter edition of The Current. She asked that the Commission forward any comments or suggestions to Economic Development staff. 7.2 2017 H RA Budget and Levy Ms. Othoudt reviewed the staff report for the 2017 budget and levy. Chair Toth asked why there was no entry in Small Cities Development Fund line item. Ms. Eddy Othoudt stated that the city will not be applying for this program, since it is income- based and the community surpasses the income guidelines. Discussion followed regarding this program. Commissioner Chuba asked why there was a substantial increase in personal services. Ms. Othoudt stated that there was no Economic Development Director or staff person for some time. Motion by Commissioner Kuester and seconded Commissioner Chuba to approve Resolution 16-02, establishing the HRA Tax Levy for 2017. Motion carried 5-0. 8.I Worksession — HRA Rehabilitation Loan Program —Target Area Discussion (5:46 p.m.) Ms. Eddy explained that two options were discussed at the June 6 budget worksession regarding expansion of the targeted area; 1) include additional older neighborhoods, or,2) define a minimum age requirement of the home. She introduced Ed Zimny of CMHP. Mr. Zimny stated that he completed a "windshield survey" of the targeted area with Jason Krebsbach as part of the Small Cities grant application target area study. In looking at the Upland/Xenia area, they did find some homes in need of windows, siding or re-roofing. He noted that there were not as many homes in need in this area,but there were homes that could use one or two of these items. Ms. Eddy explained that if the proposed blue area was added into the targeted area, approximately 22 homes to the south and approximately 75 homes in the northern area would be included. Housing and Redevelopment Minutes Page 3 July 5,2016 Chair Toth asked if CMHP had looked at the small, older homes off Xenia in the area located along 6th Lane NW and across Highway 10 on Wand Avenue. Chair Toth asked if CMHP had looked at the small, older homes off Xenia in the area located along 6th Lane NW and across Highway 10 on Wand Avenue. He also asked about the area west of Upland which includes older houses located on the lake. Chuba was ok with expanding the current area to include the area in blue and utilizing it as a pilot program. Chair Toth suggested extending the current area to include Main Street up to the dam. Everything else is fairly new development. Ms. Eddy stated they can look at including those homes. Chair Toth asked if the other inquiries staff has received are in this area. Ms. Eddy stated the inquiries were mainly for roofing in the Trott Brook subdivision. Ms. Othoudt stated she had received an inquiry from the Deerfield area. Commissioner Eder noted that the Deerfield subdivisions are older than 20 years. Commissioner Burandt stated that the Coon Rapids program includes age of the home in their criteria and asked why the age of the home was not considered more seriously. Ms. Othoudt stated that the eligibility requirements already include a check box, confirming the home is older than 20 years. Chair Toth stated that if the 20-year age requirement was the only requirement, they could potentially have many homes all over the city that qualified. Commissioner Kuester asked what types of improvements home owners attending the meeting have expressed that they need. Ms. Eddy stated one expressed the need for a new septic system,and roof replacement in the Trott Brook Farms neighborhood. Discussion followed regarding the following: • Whether or not to expand the target area • Impacts of expanding the target area • Whether or not to revise the qualifying criteria • Option of expanding the target area in phases • How to deal with homes just outside the target area • Revising the criteria to require homes to be even older than the 20 years (30-40 years old) The consensus of the Commission was to expand the target area to include the proposed blue area,as well as the additional area proposed by Chair Toth. They concluded that they will continue to evaluate the success of the program yearly. Depending upon the success of the program, they could possibly include more homes in the target area. $100,000 budgeted per year,but does roll over. Chair Toth asked how much spent so far. Ms. Othoudt stated that $167,000 spent so far, but those loans are being paid back. Ms. Othoudt noted that they did receive payment in full one loan. Chair Toth stated that they can only spend what we have. Ms. Othoudt stated that the HRA could reallocate more funds fu ds to the program if they chose to. Othoudt stated that if the entire city was included, staff would be overwhelmed, as well Housing and Redevelopment Minutes Page 4 July 5,2016 as CMHP. She suggested taking"baby steps",by adding new sections each year to make expansion of the target area more manageable. Commissioners Kuester and Eder concurred, that it might be easier to add small sections. Ms. Eddy noted that what is being proposed would add approximately 100 more homes. Kuester stated that if they did it in an orderly fashion,it would be more acceptable to the public. Commissioner Burandt suggested they look at limiting the amount of projects they can do per year, and not limit the area the HRA can do them in. Chair Toth asked if expanding the area makes marketing more difficult. Ms. Eddy stated that they are limited by the amount of funds as to how many projects that they can do. Ms. Othoudt stated that four projects at the maximum loan amount of$25,000 would equal the budgeted$100,000. Mr. Zimny noted that they could possibly complete 5 or 6 projects, depending upon the amount requested. Commissioner Chuba stated he felt premature to open it up to the entire area. Othoudt agreed that the HRA needed to define the targeted area. Mr. Zimny noted that these are the city's funds, and they do not have to have a targeted area. He explained that the target area was necessary for the Small Cities Loan program application. Ms. Eddy noted that the targeted area did need to go to the Council for approval. Commissioner Eder stated she would support the criteria of 20-year age of the home, but if within the targeted area. Chair Toth stated he would support moving forward with the additional area as proposed for next year,with the Xenia area and see what ha pp ens. Commissioner Eder suggested they continue to track inquiries,to see where they are located. Ms. Othoudt stated that when city newsletter went out, did receive inquiries which staff has been tracking and will continue to track. Commissioner Burandt asked what would happen if a home were in urgent need and was located on the wrong side of the street. She felt there could be some flexibility. Ms. Othoudt suggested a clause for homes in need of funding through this program outside of the target area can apply on a case-by-case discretionary need. Mr. Zimny stated that he could understanding the desire to include hardship cases just outside the target area,but a line is needed somewhere to be able to treat everyone fairly. Discussion followed regarding pros and cons of allowing exceptions outside the target area. Commissioner Eder suggested leaving the program as it is for this year with the expansion, and next year,look at expanding the target area further, or including criteria for exceptions. She stated that they need to do the homework to see what other cities are doing. Ms. Othoudt stated that staff will gather information,make revisions of the policy,redefine targeted area,and look at Coon Rapids policy for 20-year age of home,and bring the policy back to future worksession. Commissioner Eder asked if Anoka has this type of program. Ms. Eddy stated she only was aware of programs like this in Coon Rapids and Brooklyn Park. Commissioner Chuba asked about the exception for garage door openers and air conditioning. He stated that he did not feel these were "elitist"items. He stated that garage Housing and Redevelopment Minutes Page 5 July 5,2016 door openers are good for person and door, and air conditioning is also good for the person and for the home. Commissioner Burandt stated that air conditioning necessary for older people, and not having it can cause death. Ms. Eddy stated staff will bring this issue back for another worksession. 9. Announcements There were no announcements. I 0. Adjournment Chair Toth adjourned the meeting at this time. The meeting adjourned at 6:30 p.m. Minutes prepared by Debbie Huebner. Tina Allard, City Cleric .,r arry To , hair Housing&Redevelopment Authority