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Housing and Redevelopment Minutes Page 2 <br />December 3, 2018 <br />----------------------------- <br /> <br />5. Open Forum <br /> <br />No one appeared for Open Forum. <br /> <br />6. Public Hearings <br /> <br />There were no public hearings. <br /> <br />7.1 HRA Rehabilitation Program Update <br /> <br /> Ms. Othoudt presented the staff report. <br /> <br /> Chair Toth asked about the status of expanding the targeted area to include the Urban <br />Services District. <br /> <br /> Ms. Othoudt explained that the HRA will further discuss this rehabilitation program during <br />tonight’s work session. <br /> <br />--------------------- <br /> <br />The HRA recessed the meeting at 5:35 p.m. and reconvened into work session at 5:42 p.m. <br /> <br />8.1 HRA Housing Rehabilitation Loan Program Administrative Agreement with <br />CMHP <br /> <br /> Ms. Othoudt presented the staff report. She outlined and discussed each of the major <br />changes to CMHP’s administration agreement. She indicated because of the increase is costs <br />to manage and administer the internally-funded Elk River housing program, she felt it was <br />time to look for an alternative organization to manage this program. She researched and <br />found other cities using the Center for Energy and Environment (CEE), administering a <br />revolving loan fund for Minnesota cities for over 15 years. She stated they work with many <br />cities in the metro area and are trying to branch out into the greater metro area. She <br />distributed documents of comparison of costs between the two companies for administering <br />a $25,000 loan, along with an email from Jim Hasnik, Director of Lending Services with the <br />CEE, along with their proposed loan documents. <br /> <br />She discussed concerns with expanding the housing project area into the Urban Services <br />District if the HRA would consider changing the loan administrator. She can do more <br />research but she wasn’t finding many other entities take on this type of project. <br /> <br />The HRA discussed the differences between CMHP and CEE: <br />-CMHP has virtually no loan application standards <br />-CMHP works directly with the general contractor and sub-contractors; CEE <br />requests the applicant is responsible to obtain bids from contractors but CEE will <br />vet those contactors to make sure their reputable <br />-CEE doesn’t require a lead paint risk assessment as it’s a federal obligation and the <br />city isn’t required to get an assessment as we don’t use federal dollars <br /> <br />