01-14-2019 HRA MIN SPECIALRegular Meeting of the Elk River
Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, January 14, 2019
Members Present: Chair Larry Toth, Commissioners Denny Chuba, Michelle Eder (4:22 p.m.),
Louise Kuester, and Nate Ovall
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt, Economic
Development Specialist Colleen Eddy, and Sr. Administrative
As Secretary Jennifer Green
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 4:00 p.m. by Chair Toth.
2. HRA Housing Rehabilitation Loan Program
Ms. Othoudt presented the staff report.
The HRA reviewed the draft documents and revised them to fit the program guidelines and
policy.
The HRA discussed in detail the length of time the Center for Energy and Environment
(CEE) would administer the loan program. Ms. Othoudt stated after meeting with CEE staff
the Friday prior, she felt very comfortable with them to have a loan program term longer
than 1 year. It was the consensus of the HRA to lock into a 3 -year term with CEE if they
can commit to the same fees for those 3 years as well as having a termination clause in the
contract.
The HRA discussed the loan repayment interest rate. It was originally presented at 3% and
the HRA considered raising the rate to 4% to recoup costs to regenerate the pool of loan
funds. It was the consensus of the HRA to set the loan rate at 4%.
The HRA discussed the credit requirements for applicants. It was the consensus of the HRA
to require the borrower to be 24 months since a bankruptcy, have no more than two 30 -day
late payments on an applicant's credit report in the past year, and a 620 minimum credit
score.
The HRA decided to remove from sweat equity the rental of tools and equipment and add
that the borrower will be responsible for the cost of the site visit.
Housing and Redevelopment Minutes Page 2
January 14, 2019
The title company and closings were discussed. Ms. Othoudt indicated she is willing to close
the loans for no additional costs. The HRA agreed to use a local title company, such as
Sherburne County Abstract.
Ms. Othoudt would have a discussion with CEE regarding the loan servicing agreement on
page 3, the servicing delinquency, and when CEE would contact the borrower to tell them
they were 30 days late.
Ms. Othoudt stated she would ask CEE what their cost would be for absorbing and
servicing the 14 loans currently under CMHP. The consensus of the HRA was to allow CEE
to service the current CMHP loans with the cost of servicing to be determined by CEE.
The HRA discussed and agreed that a photo release should be obtained from the borrower
to use before and after rehabilitation pictures in marketing purposes with an option for them
to opt out.
Ms. Othoudt stated she would have these final versions of loan documents on the next
agenda for review and approval.
3. Adjournment
Chair Toth adjourned the meeting at 5:58 p.m.
Minutes prepared by Jennifer Green.
Tina Allard, City Clerk
doth, Chair
Housing & Redevelopment Authority