06-02-2025 HRA MINJ
City of
Elk = _
River
Members Present:
Members Absent:
Meeting of the Housing and
Redevelopment Authority
Held at the Elk River City Hall
Monday, June 2, 2025
Commissioner Dennis Chuba, Commissioner Nate Ovall, Commissioner Lynn
Caswell, Commissioner Mel Beaudry, Mayor John Dietz
None
Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist
Joshua Mollan, and Recording Secretary Jennifer Green
I. CALL MEETING TO ORDER
Pursuant to due call and notice thereof, the meeting was called to order at 5:30 P.M.
2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.
3. CONSIDER AGENDA
Moved by Commissioner Beaudry and seconded by Commissioner Caswell to approve the
agenda. Motion carried 5-0.
4. CONSENT AGENDA
Moved by Commissioner Ovall and seconded by Commissioner Dietz to approve the
following consent items as outlined in their respective staff reports. Motion carried 5-0.
4.1 Draft Minutes - May 5, 2025
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Reports
5. OPEN FORUM
No one appeared for open forum.
6. GENERAL BUSINESS
6.1 Presentation from Central Minnesota Habitat for Humanity
Housing and Redevelopment Authority Minutes
June 2, 2025
Page 2 of 3
Mr. O'Neil presented the staff report. He introduced Chad Bouley, Executive Director for Central
Minnesota Habitat for Humanity, along with Amy Lord, Career and Technical Education Coordinator
with ISD 728. Together, they outlined a collaboration between both entities to provide hands-on
experience for high school students to learn the home-building trade, while providing an affordable
home for a family. This partnership, along with the HRA naming Habitat as a likely recipient of the city's
allocation of State Affordable Housing Aid dollars, will help aid the Habitat goals by assisting them in
identifying land for future Habitat homes.
Both Mr. Bouley and Ms. Lord expressed excitement about this partnership. It not only provides
students with additional construction experience, but the HRA can help fund the purchase of the lot,
which can be an expensive part of homeownership. Mr. Bouley explained how Habitat now partners
with Stearns Bank to hold the mortgage. The recently approved MHFA funding grant of $100,000
received by ISD 728 can be applied for each year but may not always receive the same amount. Those
annual funds will be additional financial aid to this program. The HRA discussed the process of finding a
lot to ensure a home could be constructed on it and met the size of the lot. The partnership details will
continue to be finalized, and the program will begin in September 2026.
6.2 Addendum to 724 Main Street MOU
Mr. Mollan presented the staff report.
Moved by Commissioner Caswell and seconded by Commissioner Dietz to approve the
First Addendum to the Memorandum of Understanding allowing the Downtown Elk River
Business Association (DERBA) to utilize the HRA property at 724 Main Street. Motion
carried 5-0.
6.3 Housing Rehabilitation Loan Program Update
Mr. Mollan presented the staff report.
Commissioner Caswell asked about the inconsistent payments on a particular property.
Mr. Mollan stated the inconsistent payments for the property has been discussed with CEE and they
don't see it as a delinquency because the property, even though the property oscillates between
overpayment and no payment, it is not behind on principal owed. The payments are current and Mr.
Mollan stated if the HRA would like to re -visit the topic, they could discuss it at the upcoming
worksession.
6.4 General Updates
The following updates were provided to the HRA:
-Mr. Mollan shared the Garden Gem Awards will launch this week with an article and announcement on
social media.
-Mr. O'Neil stated Ron Touchette has stated he is drawing up plans for building a 9000 ft. building on
the corner of Main and Gates and would like to connect with the EDA and HRA to market the
building.
-Staff has received a resignation from a member of the Joint Finance Committee, and another member
will also be resigning. Mr. O'Neil stated he and Mr. Mollan will work together prior to soliciting new
Housing and Redevelopment Authority Minutes
June 2, 2025
Page 3 of 3
members if the 9 members (2 HRA, 2 EDA, 5 at -large) is an appropriate number and if the professional
representations are adequate.
-The downtown small area plan will be on the City Council agenda for this evening for a vote.
7. MOTION TO ADJOURN REGULAR MEETING
Moved by Commissioner Dietz and seconded by Commissioner Beaudry to adjourn the
meeting and go into worksession at 6:01 p.m. Motion carried 5-0.
8. WORK SESSION
The HRA work session was called to order at 6:06 p.m.
8.1 Housing Rehabilitation Loan Program Discussion
Mr. Mollan presented the staff report. The commission discussed changing the debt to income ratio and
minimum credit score qualifiers to ensure applicants have the ability to repay the loan but noted there
are loans with consistent payments from borrowers and no one is in default.
Commissioner Ovall discussed the purpose of the HRA loan program, noting that the HRA was not
meant to compete with banks or to be a bank, but rather help the city's aging housing stock. The HRA
does this by providing low -interest money to make improvements to houses in the Urban Service
District on homes at least 20 years old. Critical improvements include energy -efficient windows and
doors, sewer and water improvements, and exterior structural items like roofing and siding.
The commission also discussed consideration of providing a different type of loan program to offer
funds for other types of home improvements for homes outside the Urban Service District.
It was the consensus of the HRA to keep the program parameters with a 43% debt to income ratio and
credit score no lower than 620. The program area will remain in the Urban Service District and
continue to be serviced by CEE.
9. MOTION TO ADJOURN
Moved by Commissioner Dietz and seconded by Commissioner Ovall to adjourn the
worksession meeting. Motion carried 5-0.
The meeting adjourned at 6:30 P.M
Minutes prepared by Jennifer Green.
r;
i
Denny Chuba, Chair
Tina Allard, City Clerk