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7.5. HRSR 02-01-2021 V' City or Elk Request for Action River To Item Number Housing and Redevelopment Authori"T 7.5 Agenda Section Meeting Date Prepared by General Business February 1, 2021 Colleen EddyT, Economic Development Specialist Item Description Reviewed by HRA 2020 Annual Report Cal Portner, City Administrator Reviewed by Action Requested Receive the 2020 Annual Report. Background/Discussion Staff will present the 2020 Annual Report,which reflects the accomplishments achieved this past year. Financial Impact N/A Mission/Policy/Goal The Annual End-of-Year Report informs the HRA on the accomplishments achieved in 2020 and ongoing projects. Attachments ■ 2020 HRA Annual Report—to be distributed at the meeting The Elk River Vision A )relcom' community aa)ith revolutionary and spirited zesourcefulness, exceptional p o w E A E u e r service, and community engagement that encourages and inspires prosperity® 2 2020 was a year like no other! Although everyone changed the way they did business, the City of Elk River had many accomplishments. The worldwide pandemic taught us how to be agile and creative. We were able to accomplish our core mission, we took on new initiatives to help our community push through this unprecedented time. The City of Elk River strives to proactively facilitate redevelopment, housing diversity, and reinvestment in our community. The Housing and Redevelopment Authority (HRA) had an exciting year filled with redevelopment projects that will improve our overall community. 2020 IN REVIEW ■Single Family Residential ■Main and Gates Redevelopment ■New Permanent Planters ■Rehabilitation Loan Program ■Realtor’s Forum ■Marketing and Advertising HIGHLIGHTS 3 SINGLE FAMILY RESIDENTIAL The availability of single family homes for sale in Elk River were at their highest point in 2016. The inventory dropped substantially in 2017, rose slightly between 2017 and 2018 and inventory trended slightly upward again in 2019 and dropped considerably in 2020. The median sales price of single family homes in Elk River has risen to nearly $320,000. The demand for homes here and in the northwest metro and the low supply of buildable lots and low interest rates can be attributed to increasing home prices. The supply of homes for sale since Q1 of 2016 in Elk River has decreased from three months to just under two months supply in Q3 of 2018. We saw a comeback in 2019 settling off at a 2.8 month supply. In 2020, the supply was less than 1.25 months. 4 SINGLE FAMILY RESIDENTIAL (CONTINUED) Single family homes in Elk River do not stay on the market for long. In early 2016, homes were on the market for an average of 41 days. In 2019, single family homes stayed on the market for 25 days or less. And in 2020 houses flew off the market as soon as they were listed. The HRA acquired two more properties in 2020 as part of a redevelopment project that would align with the Mississippi Connections Plan. The two houses were moved and the remaining five were demolished. Seven properties have been pur- chased with one remaining. The HRA coordinated a Developer’s Forum in March of 2020, but due to the COVID-19 pandem- ic the meeting was cancelled. A new sell sheet was created and a two-sided sign was installed as marketing initiatives. The HRA plans to host a Developer Forum in 2021 as allowed and continues to market this exciting property. MAIN AND GATES REDEVELOPMENT 5 Economic De- PERMANENT PLANTERS The HRA recognized the need for permanent fixtures available for general public use to maintain a safe, clean, and accessible downtown area, to preserve the vitality of the business district and prevent the emergence of blighting conditions. In 2020, the HRA contributed half of the funds to purchase 24 planter hangars and hanging planters downtown. The purchase coincided with the EDA’s Together Elk River Campaign. The campaign included display banners, which were installed in the new light poles, which were purchased by Elk River Municipal Utilities. BLIGHTED PROPERTIES FORGIVABLE LOAN In the Fall of 2020, the HRA approved the Blighted Properties Program and policy to allow flexibility for builders to acquire these types of properties with the caveat that they become owner-occupied upon completion. REHABILITATION LOAN PROGRAM In 2019, the Center for Energy and Environment (CEE) took administrative management of the HRA Rehabilitation Loan Program. CEE partners with the Minnesota Department of Commerce, Minnesota Housing Financing Agency, and local utilities (CenterPoint Energy, Xcel Energy, and Great River Energy, to leverage additional program dollars. With the additional funds CEE was able to close on three loans for Solar and Home Improvements and five loans through the Minnesota Housing Financing Agency. Homeowners were able to make energy efficiency improvements, needed home repairs, install new windows, siding and landscaping 6 Staff worked with the city communications division to create an ad for the Elk River Community Guide. We advertise in this annual publication via a quarter-page full color ad. The guide is sent to all Elk River residents and will be distributed throughout the year in various venues. Marketing and advertising of the HRA Housing Rehabilitation Loan Program continued in 2020 with four quarter-page color ads in the Star News local newspaper and five weeks of billboard position online ads. The ads ran the last four weeks of the year as a kick off to the upcoming spring home improvement season. MARKETING AND ADVERTISING REALTOR’S FORUM The City of Elk River, partnered with the Saint Paul Area Association of Realtors (SPAAR) on the 2020 Realtor’s Forum. The forum was the last in-person meeting before COVID hit. Over 50 people attended the forum, which focused on the local housing market. Speakers included Mayor Dietz, Dan Dixon from Guardian Angels, Dr. Bittman from ISD #728 and city staff from Administration, EDA, Engineering and Environmental.