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6.1. HRSR 01-02-2024Request for Action To Item Number Housing and Redevelopment Authority 6.1 Agenda Section Meeting Date Prepared by General Business January 2, 2024 Joshua Mollan, Economic Development Specialist Item Description Reviewed by Housing Rehabilitation Loan Program Agreement Brent O’Neil, Economic Development Director Reviewed by Cal Portner, City Administrator Action Requested Approve, by motion, the 2024 loan origination amendment with Minnesota Center for Energy and Environment (CEE). Background/Discussion The loan origination contract with CEE expires on December 31. An amendment for another one-year extension has been drawn up. As the administration fee to CEE is increasing from $2,500 to $5,000, the board requested staff to provide supporting information for this change. CEE facilitates additional loans that support the goal of our program to improve the housing stock in Elk River (6 closed loans totaling $80,990 outside of the HRA’s Home Rehab Loan in 2022 and 2023). In addition, CEE provides prompt customer support, accurate monthly reporting, and occasional social media guidance. Staff recommends amending the loan servicing contract with CEE, extending the agreement through the remainder of 2024. Regarding existing loans, CEE reports that all accounts are current and the HRA’s portfolio is performing as expected with no delinquencies or late payments. There have been no new loans issued this period and $150,000 would be available for new loan disbursements pending an approved amended agreement for 2024. 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  Proposed Amendment to Origination 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:12/1/2023 REPORTING PERIOD:Nov-23 INVESTOR:CITY OF ELK RIVER 212 3rd Avenue North, Suite 560 Minneapolis, MN 55401 REPORTING MONTH: NOVEMBER 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 INDEXSum of TRNX INDEX Sum of DELINQ INDEXSum of PMNT AMOUNTSum of PRN COLLECTEDSum of INT COLLECTED HRA REHAB 9 0 0 0 $2,149.12 $1,539.85 $607.27 $0.00 $0.00 $54.00 $0.00 $54.00 $2,095.12 Grand Total 9 0 0 0 $2,149.12 $1,539.85 $607.27 $0.00 $0.00 $54.00 $0.00 $54.00 $2,095.12 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 11/10/2023 $192.33 $184.80 $7.53 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 19-015204 1420 5TH ST NW 1/25/2017 $22,069.00 11/20/2023 $208.04 $191.63 $16.41 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 19-015209 609 GATES AVE NW 9/22/2017 $19,665.00 11/10/2023 $187.63 $168.37 $19.26 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 19-015217 1811 MAIN ST 5/4/2018 $21,640.00 11/10/2023 $162.79 $107.27 $55.52 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 19-016564 403 3RD ST NW 7/15/2019 $15,252.22 11/15/2023 $154.43 $122.13 $32.30 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 23-029012 18990 TWIN LAKES RD NW 4/21/2023 $34,749.06 11/18/2023 $260.00 $144.92 $115.08 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 23-028654 13222 179 1/2 AVE NW 6/16/2023 $33,925.67 11/20/2023 $300.00 $187.08 $112.92 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 23-029085 17931 GARY ST NW 6/20/2023 $30,223.00 11/20/2023 $306.00 $206.12 $99.88 0 0 0 ELK RIVER RESIDENTIAL HRA REHAB 23-029618 13366 181ST LN NW 10/2/2023 $23,780.00 11/14/2023 $375.90 $227.53 $148.37 0 0 0 $2,147.12 $1,539.85 $607.27 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 $3,753.69 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 11/10/2023 $192.33 19-015204 1420 5TH ST NW 1/25/2017 $7,537.55 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 11/20/2023 $208.04 19-015209 609 GATES AVE NW 9/22/2017 $8,079.60 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 11/10/2023 $187.63 19-015217 1811 MAIN ST 5/4/2018 $15,276.30 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 11/10/2023 $162.79 19-016564 403 3RD ST NW 7/15/2019 $9,385.12 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 11/15/2023 $154.43 23-029012 18990 TWIN LAKES RD NW 4/21/2023 $33,729.16 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 11/18/2023 $260.00 23-028654 13222 179 1/2 AVE NW 6/16/2023 $33,051.86 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 11/20/2023 $300.00 23-029085 17931 GARY ST NW 6/20/2023 $29,192.83 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 11/20/2023 $306.00 23-029618 13366 181ST LN NW 10/2/2023 $23,552.47 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 11/14/2023 $375.90 $163,558.58 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2,147.12$ AGING DELINQUENCY DETAIL PER ACCOUNT AS OF 11/30/2023 Nov-23 CEE Monthly Loan Activity Summary 1/2/24 6.1 at2 Amendment 3 2024 Elk River HRA AMENDMENT 3 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 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 (“CEE”) is hereby amended. 1. Section 2 and 5 of the Agreement are hereby revised as follows: Section 2. Compensation of the agreement shall be amended to read: 2.1 The Authority shall compensate CEE for services provided under this agreement according to the following schedule and more fully described in Exhibit B3 attached hereto: Loan Origination Fee $750 The Authority shall pay CEE an Origination Fee for each loan closed using the Authority Funded Program. Annual Administrative Fee $5,000 This shall be due January 1st of each calendar year the contract is in effect. Remodeling Advisor Visit (RAV) $250 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, 2024 and continue through December 31, 2024. Amendment 3 2024 Elk River HRA 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 _________________________ # By ___________________________ TAX ID 41-1647799 Executive Director Date __________________________