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4.1. DRAFT HRA MINUTES 02-03-2020 Regular Meeting of the Elk River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, January 6, 2020 Members Present: Chair Larry Toth (5:55 p.m.), Commissioners Denny Chuba, Michelle Eder, Nate Ovall, and Jayme Swenson Members Absent: None Also Present: Retiring Commissioner Louise Kuester Staff Present: Economic Development Director Amanda Othoudt 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 5:35 p.m. by Vice-Chair Chuba. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider January 6, 2020, Agenda Motion by Commissioner Eder and seconded by Commissioner Ovall to approve the January 6, 2020, HRA agenda. Motion carried 4-0. 4. Consent Agenda Moved by Commissioner Eder and seconded by Commissioner Ovall to approve the January 6, 2020, consent agenda as follows: 4.1 November 4, 2019, minutes. 4.2 Check Register as outlined in the staff report. 4.3 Balance Sheet as outlined in the staff report. 4.4 Revenue/Expenditure Report as outlined in the staff report. 4.5 Notice of Annual Meeting. Motion carried 4-0. 5. Open Forum No one appeared for Open Forum. Housing and Redevelopment Minutes Page 2 January 6, 2020 ----------------------------- 6. Public Hearings There were no public hearings. 7.1 HRA Housing Rehabilitation Loan Program Update Ms. Othoudt presented the staff report. She reviewed details regarding the 270+ day delinquent loan. Commissioner Ovall asked Ms. Othoudt about amending the original loan agreement as discussed at the November meeting. Ms. Othoudt stated the loan modification discussion at the November meeting wasn’t for this borrower. She stated she is open to modifying the loan documents for this borrower unless the Commission has other solutions or unless they feel they are beyond that due to the length of the borrower’s delinquency. Commissioner Eder asked if Ms. Othoudt knew how soon the borrower felt he could get back to a regular payment schedule. Ms. Othoudt stated the borrower just informed her they would be back on a regular payment schedule very soon but did not give her a timeline. Commissioner Eder requested a more definitive timeline and future payment schedule from the borrower as that would determine how the Commission would respond regarding the future of this loan. Ms. Othoudt stated she will discuss this with the borrower and bring back that information to the next meeting. Ms. Othoudt then discussed the borrower who typically makes their payment at the end of the month. She stated the last payment made was December 29, 2019, just before the 30-day late period. The borrower requested a 3-month payment plan to avoid any collections and instead of modifying their loan documents. Commissioner Eder stated if the Commission approved a 3-month payment plan, that would require a loan document modification. Commissioner Ovall noted CEE would have those loan documents in their system and CEE would have the borrower sign a debt modification. He stated this will keep the amortization and maturity on schedule and no late fees will be accrued. Vice-Chair Chuba asked what stage the loan was at. Ms. Othoudt stated the loan was in its second year. The HRA was supportive of the debt modification for this borrower and Ms. Othoudt will contact CEE to have them prepare the proper documents. Housing and Redevelopment Minutes Page 3 January 6, 2020 ----------------------------- 7.3 Main and Gates Update Ms. Othoudt presented the staff report. Commissioner Ovall stated he had concerns presented to him by some constituents regarding the burning and fumes from the proposed controlled burns and stated they will be relieved to hear there will no longer be controlled burns of these homes. Ms. Othoudt indicated the marketing pieces are being put together and she’s received a lot of interest in the area. Vice-Chair Chuba asked about salvaging any parts of the homes for Habitat for Humanity. Ms. Othoudt stated she hadn’t looked into that yet and noted the demolition bids may require those items remain in the home. She stated there were no updates on the other two properties in the area. 7.2 Louise Kuester Recognition Vice-chair Chuba introduced the newest commissioner, Jayme Swenson, who stated she was thankful for the opportunity to serve the community and very eager to learn. She is open to direction and guidance and wishes to do the best she can. Vice-Chair Chuba presented an award to recognize the years of service of Louise Kuester. Ms. Kuester was thankful for her family, who were also city servants, and she enjoyed the good company serving alongside other commissioners. Chair Toth arrived (5:55 p.m.). HRA recessed at 5:58 p.m. in order to go in to work session. The meeting reconvened at 6:04 p.m. 8.1 Blighted Properties Residential Forgivable Loan Program Discussion Ms. Othoudt presented the staff report. The HRA reviewed the attorney-suggested changes made to the city’s current Blighted Properties policy: Page 3: Qualifying Project – 4. Structurally Substandard The Commission discussed the structurally substandard definition, which was directly taken from state statute. Commissioner Ovall asked if the city’s building inspectors could inspect and certify the substandard condition and for what cost. Ms. Othoudt stated early discussions indicated staffing concerns with the building inspectors unable to fulfill this request. She didn’t know any costs associated with such an inspection. Commission Eder stated the inspection cost is important because it will have to be decided who will pay for it. Commissioner Chuba stated he didn’t anticipate there were be many properties to inspect so he doesn’t see why staff couldn’t inspect them if they are qualified to do so. Commissioner Ovall stated the building department staff could charge a fee. Ms. Othoudt stated she will revisit the structure inspection process to consider having the city staff perform the inspection and at what cost. Housing and Redevelopment Minutes Page 4 January 6, 2020 ----------------------------- Page 4: Eligible Applicants Property owners sweat equity. Commissioners wanted to ensure the work done to the home was quality work done up to code and wondered if this was necessary to include. Staff will refer this question to the attorney. Page 4: Eligible Program Costs The Commission discussed lowering the loan program maximum dollar amount from $25,000 to $20,000. Commissioner Eder stated her concerns with a higher forgivable dollar amount which could result in padded demo costs and forgiving more dollars than needed. Commissioner Chuba discussed the goal of the program was trying to get rid of the substandard properties by remodeling and returning them to the tax rolls. Commissioner Eder asked how many bids would be required. After some discussion, the Commission changed the requirement from submitting one bid to two bids. Due to time constraints, Ms. Othoudt will add this policy discuss to a future meeting for continued review and evaluation against the HRA’s long-term goals. 9. Adjournment Chair Toth adjourned the meeting at 6:29 p.m. Minutes prepared by Jennifer Green. _____________________ Tina Allard, City Clerk _____________________ Larry Toth, Chair Housing & Redevelopment Authority