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6.1. HRSR 12-04-2023Request for Action To Item Number Housing and Redevelopment Authority 6.1 Agenda Section Meeting Date Prepared by General Business December 4, 2023 Joshua Mollan, Economic Development Specialist Item Description Reviewed by Housing Rehabilitation Loan Program Update Brent O’Neil, Economic Development Director Reviewed by Cal Portner, City Administrator Action Requested Receive updates on the Housing Rehabilitation Loan Program and proposed 2024 loan origination agreement. Background/Discussion The Minnesota Center for Energy and Environment (CEE) reports that all accounts are current and the HRA’s portfolio is performing as expected with no delinquencies or late payments. On October 2, CEE closed on a new loan for $23,780.00. CEE invoiced the loan amount as well as the $750 origination fee leaving $17,322.27 in remaining funds available for new loan disbursements in 2023. After more than two years with no loans issued, this marks four loans issued directly from the HRA’s funds so far in 2023. We attribute this, in part, to shifts in marketing the program. Further, five additional loans have been issued in Elk River through CEE’s partnership with Minnesota Housing Finance Agency. The loan origination contract with CEE is set to expire on December 31. A new contract or another one-year renewal would be necessary to continue the partnership with CEE in 2024. The administration fee for all cities was increased to $5,000 last year but it was negotiated to continue the existing $2,500 administration fee for Elk River through 2023. However, CEE advised that the fee would need to be increased to $5,000 in 2024. Staff will be working with CEE and will make a recommendation for HRA consideration in January. Lastly, we have received an additional inquiry from a homeowner outside of the Urban Services District making them ineligible under current guidelines. Based on board feedback, staff can propose revised guidelines to the HRA in January. Financial Impact N/A Mission/Policy/Goal Improve existing housing stock by offering incentives or programs to repair and maintain residential properties. Attachments  CEE Monthly Loan Activity Report  CEE Monthly Loan Activity Summary  Existing CEE Agreement The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: January 2023 CEE SERVICING REPORT TYPE:INVOICE REPORT DATA SET DATE:11/1/2023 REPORTING PERIOD:Oct-23 INVESTOR:CITY OF ELK RIVER 212 3rd Avenue North, Suite 560 Minneapolis, MN 55401 REPORTING MONTH: OCTOBER 2023 Ph.: 612.455.7805 POOL Total Count of Loans New Loans Added Loans Transferred for Serviving Count of Active Delinquent Accounts Total Amount Collected During the Month Principal Collected During the Month Interest Collected During the Month New Loan On- boarding Fee @ $20/Account Loan Transfer On- Boarding Fee @ $20/Account Monthly Servicing @ $6/Account Delinquent Loan Management @ $3/Account Total Monthly Fees Netted Amount to Transfer to Investor Row Labels Count of LOAN #Sum of NEW LN INDEX Sum of TRNX INDEX Sum of DELINQ INDEX Sum of PMNT AMOUNT Sum of PRN COLLECTED Sum of INT COLLECTED HRA REHAB 9 1 0 0 $1,771.22 $1,322.92 $448.30 $20.00 $0.00 $54.00 $0.00 $74.00 $1,697.22 Grand Total 9 1 0 0 $1,771.22 $1,322.92 $448.30 $20.00 $0.00 $54.00 $0.00 $74.00 $1,697.22 ACCOUNT DETAIL FOR INVOICING PORTFOLIO POOL LOAN #PROPERTY CONTRACT DATE LOAN AMOUNT PMNT DATE PMNT AMOUNT PRN COLLECTED INT COLLECTED TRNX INDEX NEW LN INDEX DELINQ INDEX ELK RIVER RESIDENTIAL HRA REHAB 19-015215 606 JEFFERSON LN NW 8/3/2015 $20,650.00 10/10/2023 $192.33 $184.20 $8.13 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 19-015204 1420 5TH ST NW 1/25/2017 $22,069.00 10/20/2023 $208.04 $191.77 $16.27 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 19-015209 609 GATES AVE NW 9/22/2017 $19,665.00 10/10/2023 $187.63 $168.60 $19.03 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 19-015217 1811 MAIN ST 5/4/2018 $21,640.00 10/10/2023 $162.79 $108.67 $54.12 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 19-016564 403 3RD ST NW 7/15/2019 $15,252.22 10/15/2023 $154.43 $122.77 $31.66 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 23-029012 18990 TWIN LAKES RD NW 4/21/2023 $34,749.06 10/18/2023 $260.00 $148.15 $111.85 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 23-028654 13222 179 1/2 AVE NW 6/16/2023 $33,925.67 10/20/2023 $300.00 $190.10 $109.90 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 23-029085 17931 GARY ST NW 6/20/2023 $30,223.00 10/20/2023 $306.00 $208.66 $97.34 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 23-029618 13366 181ST LN NW 10/2/2023 $23,780.00 NEW LOAN $0.00 $0.00 $0.00 0 1 0 $1,771.22 $1,322.92 $448.30 CEE SERVICING REPORT TYPE:AGING DELINQUENCY REPORT DATA SET DATE:11/1/2023 REPORTING PERIOD:Oct-23 INVESTOR:CITY OF ELK RIVER AGING DELINQUENCY DETAIL PER ACCOUNT AS OF 10/31/2023 LOAN #BORROWER ADDRESS CONTRACT UNPD PRN BAL DPD TOTAL DUE 1 TO 15 DPD 15+ DPD 30+ DPD 60+ DPD 90+ DPD UNPD LATE FEES STATUS LAST PMNT DATE LAST PMNT AMNT 19-015215 606 JEFFERSON LN NW 8/3/2015 $3,938.49 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 10/10/2023 $192.33 19-015204 1420 5TH ST NW 1/25/2017 $7,729.18 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 10/20/2023 $208.04 19-015209 609 GATES AVE NW 9/22/2017 $8,247.97 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 10/10/2023 $187.63 19-015217 1811 MAIN ST 5/4/2018 $15,383.57 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 10/10/2023 $162.79 19-016564 403 3RD ST NW 7/15/2019 $9,507.25 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 10/15/2023 $154.43 23-029012 18990 TWIN LAKES RD NW 4/21/2023 $33,874.08 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 10/18/2023 $260.00 23-028654 13222 179 1/2 AVE NW 6/16/2023 $33,238.94 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 10/20/2023 $300.00 23-029085 17931 GARY ST NW 6/20/2023 $29,398.95 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 10/20/2023 $306.00 23-029618 13366 181ST LN NW 10/2/2023 $23,780.00 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NEW LOAN NEW LOAN $0.00 $165,098.43 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 1,771.22$ CEE Monthly Loan Activity Summary 12/4/23 6.1 at2 Amendment 1 2 2022 2023 Elk River HRA AMENDMENT 2 to the LOAN ORIGINATION AGREEMENT Between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER And CENTER FOR ENERGY AND ENVIRONMENT The Agreement made the 4th day of February, 2019 by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER, with offices at 13065 Orono Parkway, Elk River, MN 55430, (the “Authority”), and the CENTER FOR ENERGY AND ENVIRONMENT, with its offices at 212 3 rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 (“CEE”) is hereby amended. 1. Section 5 of the Agreement are hereby revised as follows: Section 5. Term and Termination of the agreement shall be amended to read: 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on January 1, 2022 and continue through December 31, 2023. IN WITNESS WHEREOF, the parties hereunder set their hands as of the date written below: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER CENTER FOR ENERGY AND ENVIRONMENT By ___________________________ By __________________________ Chair Person Date __________________________ Date _________________________ #4113 By ___________________________ TAX ID 41-1647799 Executive Director Date __________________________ DocuSign Envelope ID: 3ABB0D59-6593-4070-81E2-1B6B8E84D607 1/3/2023 Chief Operating Officer 1/6/2023 1/8/2023 Certificate Of Completion Envelope Id: 3ABB0D596593407081E21B6B8E84D607 Status: Completed Subject: Elk River Amendment for 2023 Source Envelope: Document Pages: 1 Signatures: 3 Envelope Originator: Certificate Pages: 5 Initials: 0 Jim Hasnik AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 212 3rd Avenue North Minneapolis, MN 55401 jhasnik@mncee.org IP Address: 65.132.174.106 Record Tracking Status: Original 12/29/2022 10:04:53 AM Holder: Jim Hasnik jhasnik@mncee.org Location: DocuSign Signer Events Signature Timestamp Stephanie Haddad shaddad@mncee.org Chief Operating Officer Center for Energy and Environment Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 65.132.174.106 Sent: 12/30/2022 7:57:25 AM Viewed: 1/3/2023 2:37:11 PM Signed: 1/3/2023 2:37:17 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Brent O'Neil BOneil@elkrivermn.gov Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 156.99.27.161 Sent: 1/3/2023 2:37:19 PM Viewed: 1/6/2023 9:43:05 AM Signed: 1/6/2023 9:43:32 AM Electronic Record and Signature Disclosure: Accepted: 1/6/2023 9:43:05 AM ID: 42c6858e-d053-4877-ac4e-57e0dd47be0e Dennis Chuba dchuba@chubaco.com Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 97.116.165.236 Sent: 1/6/2023 9:43:34 AM Viewed: 1/8/2023 3:38:09 PM Signed: 1/8/2023 3:39:26 PM Electronic Record and Signature Disclosure: Accepted: 1/8/2023 3:38:09 PM ID: 994bed29-3d4f-44fb-a0ef-f8ab969bf03d In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Ryan Ellis rellis@mncee.org Legal Counsel Center for Energy and Environment Security Level: Email, Account Authentication (None) Sent: 1/8/2023 3:39:28 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 12/30/2022 7:57:25 AM Certified Delivered Security Checked 1/8/2023 3:38:09 PM Signing Complete Security Checked 1/8/2023 3:39:26 PM Completed Security Checked 1/8/2023 3:39:28 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, Center for Energy and Environment (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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