6. HRSR 03-02-2009Item # 6
ver
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`h 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.
S:~EDAU-IRAWOUSING~Foreclosure~3.2.09 CC memo.doc
Prevention
• To prevent foreclosures through free foreclosure prevention counseling
(through the MN Home Ownership Center) and a public outreach and
information campaign.
2. Preserve & Secure
• Partner and coordinate with City sta f f and Elk River Municipal Utilities
(ERMU) to identify and secure these properties by using a centralized
communication system to track vacant and foreclosed homes, avoiding
duplication o f staf f e f forts.
3. Recovery
• Revitalize properties and provide other applicable assistance to quickly make
homes home-owner ready by remediating impacts to neighborhoods (Through
the HRA's application for Neighborhood Stabilization Program (NSP)
Foreclosure Recovery 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 Count Sheriff sale information month)
Elk River Munici al Utilities ERMU Water & Electric shut
offs
dail
Connexus & CenterPoint
data rovided to ERMU
GaS Shut offs weekly/as
u dated
Environmental Division Garbage 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.
S:\EDAWRAU-IOUSMG\Foreclosure\3.2.09 CC memo.doc
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.
Cable Channel
• Information encouraging residents to contact City 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
1
Minnesota t` t~~ s~
Home Ownership
Center
Ver www.hocmn.org
Or your home equity payment?
Concerned about your interest rate changing?
Elk River Residents should contact:
a~i Lutheran Social Service
~~ for changing lives
Toll Free: ~-800-777-749
Elsewhere in Minnesota, contact:
t, t1 i~
Minnesota r~
__
Home Ownership
Center
_" 651.659.9336 ~ G- 651.659.9518
ink; a~~=° 866.462.6466
www.hocmn.org
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