7.1. HRSR 01-07-2019 - Laserfiche WebLink

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Can you tell me how long you have used CEE to administer your Rehab program? New Hope has been using CEE to administer our home loans since 2012. Since the program's inception which was in 2005.Since the mid 90's.Just over 1 year. We switched when Greater Minnesota Housing Center closed their Housing resource center. Since 2008 We are nearing the end of our first year using CEE. Before 2018, we used Greater Metropolitan Housing Corporation's Housing Resource Center for 17 years, but GMHC closed the HRC in late 2017 and we had to find a new administrator. We have contracted with CEE to administer our home improvement loan programs since 2005. Are you satisfied with how they administer your program? We are very satisfied with the way they handle our program. We just recently sat down with one of their reps to figure out a way to restructure the program to make it more attractive to a wider audience. They are very flexible to what cities want. Yes, we have been very happy with CEE. I would recommend them. Extremely satisfied.Yes, we have seen improvement in the process and communicating the results. Yes, we are, since 2008 Yes, although the number of home improvement grants was about 3x higher when GMHC's HRC. We attribute some of that participation decline to normal transitional losses caused by the switch to a new provider. Hopefully the participation numbers will rebound somewhat.However, we also attribute some of the participation decline to CEE not having a physical office nearby like the HRC did - so, some of this decline in participation may be permanent.In any case, one gets what one pays for - CEE’s administrative fees, as a percentage of actual assistance paid out to homeowners, are less than half what HRC’s were.We think it’s a fair trade-off. I am most definitely satisfied with how they administer our programs. They are very responsive to any of my inquiries and are able to provide any additional information when needed. They also give me a heads up any time a homeowner may be calling me with anything concern/complaint about their loan application/process. They have offered loan closings to take place at city hall instead of requiring homeowners to go to their office in Minneapolis. They are always available when I need their attendance at a meeting to discuss funding/contracts/etc and also are always present at community events such as our annual home improvement show and our annual home remodeling tour. In full disclosure, I did work at CEE for 8 years (2000-2008). It’s a great organization and they really know what they are doing! On average, how many loans per year do you do as a city? Not a lot, which was the major reason why we wanted to restructure the program. Through CEE, the New Hope has only administered 4 loans since 2016. Along with restructuring the program, we've made an emphasis on trying to advertise the services as well. At the beginning of the program we did more, but for the past eight years we have done between 6 and 10 loans. 20 - 25 They did 14 in 2018 ytd and they were limited by the funds available. About 8 for this particular low interest loan program. 26 home improvement grants (projected 2018 figure; prior years with GMHC/HRC were roughly 3x higher). 6 interest subsidies for community fix- up fund loans (projected 2018 figure; prior years with GMHC/HRC were about the same) Are you asking about how many City- funded loans we do each year? If so, we have done an average of 17 loans per year over the past 13 years. That doesn’t take into consideration our down payment assistance program or the grant/rebate portion of our Home for Generations II program since we administered those in- house. What is the average loan amount?Average loan amount is around $8,000.The maximum loan amount id $25,000 and most of the loans are at the max. $20,000 roughly.They range from $20,000 to $30,000 $22,000 $60,268 / 26 = $2,318 avg. grant per home improvement grant (extrapolated full year 2018 figures). $10,753 / 6 = $1,792 avg. interest subsidy per community fix-up fund loan (extrapolated full year 2018 figures) Our average loan amount is $35,582 but it is that high because our Home for Generations II program requires a minimum project amount of 35,000 and allows loans up to $50,000. Our other, more traditional loan programs have lower loan maximums and therefore a lower average loan amount. If you look at just the 103 loans we did through what was called the Home Improvement Incentive loan, the average loan amount was $13,584. If you look at the 77 loans (low interest loans and some deferred loans) we did through one of our other programs (called the Home Rehabilitation Program), our average loan amount was $14,623. Brooklyn Park Crystal Coon RapidsHome Rehabilitation Loan Program City of New Hope St. Louis Park Fridley Brooklyn Center