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12-01-2008 HRA MINMEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, DECEMBER I, 2008 Members Present: Chair Wilson, Commissioners Kuester, Lieser, Motin and Toth Members Absent: None Staff Present: City Administrator Lori Johnson, Community Development Director Jeff Gongoll, Director of Economic Development Catherine Mehelich, Economic Development Assistant Annie Deckert, Recording Secretary Debbie Huebner Also Present: Mayor Klinzing Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment Authority was called to order at 5:30 p.m. by Chair Wilson. 2. Consider December 1, 2008 HRA Agenda MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER KUESTER TO APPROVE THE DECEMBER 1, 2008, HRA AGENDA AS PRESENTED. MOTION CARRIED 5-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER LIESER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. OCTOBER 6, 2008 HRA MINUTES 3.2. CHECK REGISTER -APPROVED 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT MOTION CARRIED 5-0. 4. en Mike There was no one present for Open Mike. ('onsider Grant Application for Neighborhood Stabilization Pro rgram (Foreclosure Recovery, Funds Mr. Gongoll stated that he attended a meeting with Ms. Mehelich and Mayor Klinzing on November 215L regarding an opportunity to utilize federal foreclosure funds through the "Neighborhood Stabilization Program (NSP). He explained that Congress established the Housing & Redevelopment rluthoritp December 1, 2008 Page 2 NSP program under the Housing and Economic Recovery Act (HERA) signed by the President in July 2008. Minnesota Housing is a grantee for the state in the amount of $38.7 million, and will administer use of the funds in highly impacted communities in greater Minnesota. He stated that certain Minnesota communities are eligible for up to $4.7 million of the funds; noting that Elk River, Isanti, Big Lake, Buffalo, St. Michael, Otsego, Monticello, Princeton, and Zunmerman have been identified in the draft plan as eligible to apply for portions of the funds in anon-competitive pool Also, communities in Sherburne, Isanti, Benton, Chisago, Stearns and Wright counties may apply for funds in a designated $6 million competitive pool. He noted that Elk River is eligible for $715,446 in NSP funds. Mr. Gongoll reviewed the list of allowed uses for the NSP funds and ineligible activities. He noted that the deadline for submittal of a plan is January 17, 2009. He noted that Mayor Klinzing has requested an extension on behalf of the city, a copy of which is attached to the staff report to the HRA. He stated that staff recommends proceeding with a formal application to the NSP and requested that the HRA discuss, prioritize and help coordinate the city's response. Mayor Klinzing stated that she felt this funding opportunity was too good to pass up. She explained that the areas have been defined by zip code. She stated that the housing area north of the Albertville Mall has a number of abandoned homes, some which have not been completed, and having debris and weed issues. She noted that townhomes have been the hardest hit by foreclosures in Elk River. Mayor Klinzing explained that the city could contract with Minnesota Housing and Tri-Cap for Elk River's application. She noted that the purpose of the program is to benefit neighborhoods and put people to work. Chair Wilson asked why the areas were defined by zip codes. Mayor Klinzing stated the information was tracked by address. She noted that Elk River does not seem to have the same problems as Otsego is having. Chair Wilson asked if it would make sense to partner with Otsego. Mayor Klinzing stated that the funds are non-competitive, but since Otsego seems to have been hit worse than Elk River, there may be some competition within. Commissioner Motin asked if there are any matching funds required. Mayor Klinzing stated no. She noted that MN Housing has funds for mortgage foreclosure projects. Chair Wilson asked if there has been any action on the request for an extension. Mayor Klinzing stated she has not received a response. She noted that if the city does not come up with a proposal for projects, the money will go elsewhere. She explained that if a sufficient number of applications are not received, the funds will go back into a pool and the process will be re-done. Mayor Klinzing stated that she was comfortable with partnering with the Central MN Housing, since the city is very familiar with the agency. She noted that they mainly have done senior housing projects in Elk River. She cautioned that the city will need to lead the project, to make sure it is what they want. Mayor Klinzing stated that Tri-Cap is also a good agency to work with. Commissioner Motin asked if there are lower income limit guidelines. Ms. Mehelich explained that the NSP program requires that 25 percent of Households served must have household incomes below 50 percent of area median income, and the balance of the household at 120 percent or less of area median income. As an example, in Sherburne County a family of 4 would be 120% of the median income ($97,080) and for that same household size $40,450 would be 50 percent of the mediar;,income. Housing & Redevelopment Authority December 1, 2008 Page 3 Ms. Mehelich stated that the are multiple areas where the funds could be utilized, as well as options and levels of involvement. She stated that the HRA must decide what level of involvement they are comfortable with, and that an additional meeting may be needed to make those decisions. Mr. Gongoll stated that staff will need clarification before making application, which will be available online this coming Friday. He noted that there is a 10 percent administrative fee for the program. Chair Wilson asked if was correct to assume the plan was not for homeowners akeady in foreclosure, but for homes already lost. Ms. Mehelich stated she believed that was correct. Commissioner Motin stated that he supported limited involvement. Commissioner Lieser concurred with Commission Motion, but that she could support moderate involvement for certain homes. Commissioner Motin stated that perhaps Habitat for Humanity could acquire homes, and that they have been a good partner for the aty. Commissioner Kuester suggested contacting builders to see if they are interested in partnering with the city. Commissioner Toth asked if individuals could get assistance to purchase a home, make repairs or complete it and then re-sell it. Mayor Klinzing explained that the only way the money can be accessed is through the city. Chair Wilson stated that if the city is interested in applying for the funds, there is a lot of work to be done and an additional meeting would be necessary. Discussion followed regarding a possible meeting date. Commissioner Motin stated he would like information regarding the percentage of homes in the various neighborhoods that are foreclosed or abandoned. MOTION BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER LIESER THAT THE HRA PROCEED WITH A FORMAT. APPLICATION TO THE NEIGHBORHOOD STABILIZATION PROGRAM. MOTION CARREID 5-0. CHAIR WILSON CALLED A SPECIAL MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY FOR MONDAY, DECEMBER 15, 2008 AT 5:30 P.M. 6. Other Business -None 7. Adjournment There being no other business, Chair Wiilson adjourned the meeting. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:30 p.m. ~n s prepareyi b e bie Huebner Tina Allar ,City Clerk