03-03-2014 HRA MIN SPEC MTG - Laserfiche WebLink

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Housing and Redevelopment Workshop Meeting Minutes Page 2 March 3,2014 • Housing type and location (target area) • • Ownership, taxes and insurance • Outcomes of program • What funds cannot be used for • Financing terms • Construction process • CMHP's responsibilities Chair Wilson, Commissioner Motin and Mr. Beeman left at 6:30 p.m. to attend the City Council meeting. Members of the HRA discussed various financing term options including minimum/maximum loan amounts, deferred forgivable loans/owners'match, number of years of the loan,number of years owner must stay in the home in order to be forgiven and interest rates. Further discussion was given to the purpose/goal of the program and whether or not to include rental properties. Mr. Kauffman stated that they have had good success with a 7-year forgivable loan. He explained that a deed restriction is placed on the property, so that if the homeowner sold the project early, they would pay back a portion of the loan based on the number of years already paid, out of the proceeds of the sale. • The question was raised as to what CMHP's fee would be to administer the HRA's program. Mr. Kauffman stated the fee would be 15 percent of the project dollars (i.e., $100,000 in funds disbursed—fee would be $15,000). Discussion followed regarding a dollar amount to begin the program. Suggestions ranged from$100,000 to$300,000 over the next two years. Mr. Kauffman reviewed the following documents provided to the HRA: • Sample application • Sample policy and procedures • Sample scope of work • Sample contract between homeowner and contractor (deferred loan) • What to expect and what not to expect during owner-occupied rehab • Renovate right Mr. Kauffman stated that CMHP would like to see a 3-year agreement with the City of Elk River. It was the consensus to discuss this issue further at another HRA workshop in April following the regular meeting (April 7,2014). • POUERE0 el' NATURE