INFORMATION #3 03-02-2009
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MEMORANDUM
TO: Housing & Redevelopment Authority
Mayor & City Council
FROM: Annie Deckert, Economic Development Assistant
DATE: March 2, 2009
SUBJECT: Update on Elk River's Foreclosure Initiatives
The purpose of the memo is to advise the HRA & Council on efforts to coordinate the
city's response to foreclosure issues per the Mayor's request at the January 26~', 2009 HRA
meeting.
BACKGROUND
At the January 26`~ meeting of the HRA, the Mayor requested City departments to work
together on a process to track abandoned homes. She stated it is imperative to do so to
ensure the water is shut off and the home is winterized to prevent the home from being
damaged and try to avoid vandalism from occurring.
Below is a chart depicting the number of foreclosed homes in Elk River from 2006-
present. The '09 number is only for the month of January. A verbal update of '09
foreclosures as of the end of February, will be given at the meeting.
ELK RIVER FORECLOSURES 2009 2008 2007 2006.
TOTAL 14 229 176 86
% OF SHERBURNE COUNTY
TOTAL
23 ~
25 ~
27%
24%
FORECLOSURE INITIATIVES
Staff has developed three strategies to stabilize and improve the city's housing stock by
offering prevention initiatives to decrease the number of foreclosed homes, keeping homes
well maintained and transitioning foreclosed homes back into homeownership as quickly as
possible.
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I. Prevention
• To prevent foreclosures through free foreclosure prevention counseling (through the M1V
Home Ownership Center) and a public outreach and information campaign.
2. Preserve & Secure
• Partner and coordinate with City staff and Elk Kiver Municipal Utilities (EBNI U) to
ident~ and secure these properties by using a centralised communication system to track
vacant and foreclosed homes, avoiding duplication of staff ~orts:
3. Recove
• Aevitali~e properties and provide other applicable assistance to quickly make homes
home-owner ready by remediating impacts to neighborhoods (through the HKA's
application for Neighborhood Stabilisation Program (NSP) Foreclosure Kecovery
Funds)
Staff efforts are currently underway to help implement and achieve these strategies.
Economic Development staff has met with the Building Department, Police,
Administration and ERMU to discuss issues and brainstorm ideas to efficiently track and
manage foreclosed and vacant property data.
Economic Development staff has created a spreadsheet and coordinated a system which
collects and tracts information from the following:
PARTNERSHIP DATA PROVIDED HOW OFTEN
Sherburne Coun Sheriff sale information monthl
Elk River Munici al Utilities RMU Water & Electric shut offs dail
Connexus & CenterPoint
data rovided to ERM
Gas shut offs weekly/as
u dated
Environmental Division Garba a Service Sto ed as u dated
Police Vacant homes list as re uested
This information is being utilized and shared on a spreadsheet. Economic Development
staff communicates on a regular basis with the Building Department and ERMU to identify
those homes in need of water-shut off. Partnerships with both ERMU and the Police
ensure vacant homes are secure, maintained and patrolled as necessary.
PUBLIC OUTREACH
'The Economic Development Department has taken several steps to communicate the
City's foreclosure efforts to the community.
MN Home Ownership Center
• HRA partnered with in October of 2008 to create and distribute informational
materials regarding free foreclosure prevention assistance and resources to various
businesses, organizations and churches in the community.
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Cable Channel
• Information encouraging residents to contact Ciry Hall regarding vacant/foreclosed
homes in their neighborhood
• Staff statement regarding current foreclosure initiatives
Website
• Information and links to resources and agencies regarding foreclosure prevention,
housing rehabilitation and first time homebuyers
The Current
• Article regarding general foreclosure information, City's initiatives and partnership
with ERMU to be published in Spring issue