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Housing and Redevelopment Minutes Page 2 May 5,2014 6. Public Hearings - None 7.1 Housing & Redevelopment Authority (HRA) Owner-Occupied Rehabilitation Policies & Procedures and Budget Amendment Brian Beeman presented the staff report. The HRA was asked to approve the following: 1) Resolution Approving Housing Rehabilitation Loan Program 2) The Elk River HRA Owner-Occupied Housing Rehabilitation Program Policies and Procedures. 3) The HRA Rehab Owner-Occupied Housing Rehabilitation Program Administrative Agreement with CMHP to administer the new housing program. 4) The Elk River HRA Rehabilitation Loan Application 5) Elk River HRA Rehabilitation Loan Program Contractor Owner Agreement. 6) Elk River HRA Rehabilitation Program Mortgage and Repayment Agreement Owner-Occupied Housing Rehabilitation Program. 7) A budget amendment to transfer funds in the amount of$100,000 from the HRA fund balance to the HRA contractual services line item. Jenny Boulton of Kennedy& Graven, explained the program revision with the income limits. She stated that the HRA may revise the program to remove the income restrictions and recommend the City Council hold a public hearing for the revised program, and also, to submit the plan to the Planning Commission to determine if the plan is consistent with the city plans as A whole. Commissioner Chuba asked what the income restrictions were. Ms. Boulton stated that the limit is 115 percent of the median area income,using the Twin Cities metro area ($89,200). 115 percent would be approximately$95,000 plus. Commissioner Motin asked if the HRA has to have income restrictions. Ms. Boulton stated no, and that if the HRA wished to allow more people to be eligible, they could revise the program to have no income restrictions. Commissioner Motin stated that the HRA designated the target area to entice people in this area to fix up their property. He explained that once the HRA learned they did not receive state funding for a rehab project, they wanted to put their money into this program. Chair Stewart agreed that the HRA wanted to focus on this particular area. Ms. Boulton stated that the HRA could open it up to have no income restrictions and future phases could focus on affordable housing or identify other target areas. Commissioner Chuba asked if the income was based on gross income. Ms. Boulton stated that the guidelines are for actual income and that she had forms available the HRA could review that would explain how income is determined. Chair Wilson asked if they left the income restriction language as is, could they still identify a specific area. Ms. Boulton stated yes. P-0111 / BEY Y1 NATURE