4.1 HRA DRAFT MINUTES 12-03-2018
Regular Meeting of the Elk River
Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, November 5, 2018
Members Present: Acting Chair Denny Chuba, Commissioners Michelle Eder, Louise Kuester,
and Nate Ovall
Members Absent: Chair Larry Toth
Staff Present: Economic Development Director Amanda Othoudt, Economic
Development Specialist Colleen Eddy, and Sr. Administrative
Assistant/Recording Secretary Jennifer Green
1. 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 5:31 p.m. by Acting Chair Chuba.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider 11/05/2018 Agenda
Motion by Commissioner Ovall and seconded by Commissioner Eder to approve the
November 5, 2018, HRA agenda.
Motion carried 4-0.
4. Consent Agenda
Moved by Commissioner Ovall and seconded by Commissioner Kuester to approve
the November 5, 2018, consent agenda as follows:
4.1 September 5, 2018, Regular and Joint meeting minutes.
4.2 Check Register.
4.3 Balance Sheet.
4.4 Revenues and Expenditures report.
Motion carried 4-0.
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5. Open Forum
No one appeared for Open Forum.
6. Public Hearings
There were no public hearings.
7.1 HRA Rehabilitation Program Update
Ms. Eddy presented the staff report.
Motion by Commissioner Eder and seconded by Commissioner Kuester to approve
the Mortgage and Repayment Agreement between Eileen L. Gadach, a single person
as Life Estate Holder and Teresa Gadach, Gerald Gadach, Edward W. Gadach, Lynn
Gadach, Mary J. Gadach and Janet Tschida, as joint tenants and owners of the
property located at 870 Vernon Ave. NW, and the Housing and Redevelopment
Authority in and for the City of Elk River, in the amount of $25,000 as outlined in the
staff report.
Motion carried 4-0.
7.2 Director Update
Ms. Othoudt presented the staff report.
Commissioner Ovall asked about the status of the garage removal at 414 Main Street and
wondered if there was a sunset removal date.
Ms. Othoudt indicated the garage had not yet been removed and there was no sunset date.
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The HRA recessed the meeting at 5:39 p.m. and reconvened into work session at 5:42 p.m.
8.1 HRA Housing Rehabilitation Loan Program Targeted Area Discussion
Ms. Othoudt presented the staff report.
The HRA discussed the possibility of including sewer and water hookups on aging
infrastructures and failing systems as an eligible rehabilitation item.
Ms. Othoudt indicated that the policy would have to be updated to allow this as an eligible
rehabilitation item.
Commissioner Ovall indicated his concerns with accomplishing this mission but also having
the HRA weigh the risks associated with the current market, considering a downturn of the
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market and wondered if it were time to reassess the underwriting criteria. He asked if the risk
reasonable and wondered if CMHP checks to see if there are liens on the property when
reviewing the loan requests.
Commissioner Eder stated the homeowner insurance policy should list all lien holders.
Ms. Othoudt stated she will clarify with CMHP their underwriting standards.
Commissioner Ovall noted that CMHP is processing our program and they will administer
based upon our standards, noting the prescreening process may be a little weak.
Commissioner Eder asked if self-disclosure on the loan request application could be used to
verify current outstanding lien holders on properties. She stated she does like that they’re
requesting federal tax returns to verify income levels. She also stated that the HRA wouldn’t
want to be in third position.
Ms. Othoudt stated she will have CMHP provide eligibility requirements and specific
guidelines they use for qualifying applicants in a staff memo for the December meeting.
It was the consensus of the commission to expand the targeted area for the HRA Housing
Rehabilitation Area into the Urban Service Area and authorized staff to contact CMHP to
update the Policies and Procedures/Application documents. Staff will determine if we can
include sewer and water hookups on aging infrastructures and failing systems as an eligible
rehabilitation item.
9. Adjournment
Acting Chair Chuba adjourned the meeting at 6:15 p.m.
Minutes prepared by Jennifer Green.
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Tina Allard, City Clerk
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Larry Toth, Chair
Housing & Redevelopment Authority