7.1. HRSR 09-03-2019Request for Action
To Item Number
Housing and Redevelopment Authority 7.1
Agenda Section Meeting Date Prepared by
General Business September 3, 2019 Amanda Othoudt, EDD
Item Description Reviewed by
HRA Housing Rehabilitation Loan Program Update Cal Portner, City Administrator
Reviewed by
Action Requested
Receive update on the Rehabilitation Loan Program.
Background/Discussion
The Center for Energy and Environment (CEE) received 25 requests for information since they took
over the administration of the program earlier this year. Since February, 16 formal applications were
received and two have been approved and funded.
Two applications currently under review, two applications were declined; one because of income and one
due to a recent bankruptcy filing. One other application expired due to no response after 90 days. Two
more applications were sent to homeowners earlier this month.
Our Aging Delinquency Report shows three loans delinquent. One borrower is 90+ days past due.
Attempts are being made by both CEE and staff to work with the homeowner to get their account
current. One of the delinquent homeowners pays through auto-pay on the last day of the month, they are
on the late side, but there is not a single problem with their payments. The other homeowner makes a
payment over the phone on the last day of the month, every other month, and pays two months at a time.
They are very consistent and very easy to work with.
Financial Impact
The total 2019 program budget is $117,854. Two loans were funded for a total of $42,852.22 which
includes loan origination and administrative fees. The remaining fund balance is $75,001.78. One loan
will be paid off in September adding $19,856.13 back into the program, for a new fund balance of
$94,857.91.
Attachments
CEE Monthly Loan Reports
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
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