5.1. DRAFT HRA MINUTES (2 SETS) 02-04-2019

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Housing and Redevelopment Minutes Page 3 January 7, 2019 ----------------------------- Commissioner Eder asked the process of adopting the CEE forms. She indicated she like CEE’s standard application form. She asked the process if a loan request would not meet the HRA’s standards and how that would be communicated to city staff. Mr. Hasnik indicated the loan application included in the packet was their standard application form, which was used for any loan request and allows CEE flexibility to use the information to determine the best program funding for the applicant. He stated the HRA can establish the underwriting guidelines and depending on those can become as involved as they want to be. He stated they will always reach out to the city to see if questions can be answered or exceptions could be reviewed if a loan doesn’t quite meet exact standards. He stated they pull one credit report from Trans Union. Commissioner Ovall noted the revolving loan program underwriting decision sheet did reference an item that CEE will contact the HRA for any questionable situations regarding underwriting. Commissioner Chuba asked questions regarding the fee structure and who was responsible for covering certain fees. Mr. Hasnik explained the one-time fee program set-up fee of $1500 would be paid by the HRA. He said the $550 fee per loan closed fee is invoiced monthly to the city and could either be paid by the HRA or passed onto the applicant. A 1% loan origination fee is paid by the borrower. He said when projects require an inspection, the city can verify a permit was pulled and inspection passes. If a permit isn’t required, Mr. Hasnik stated CEE can provide an inspection for a fee or suggested building or city staff provide an inspection. Commissioner Ovall asked questions about the loan documents in the packet. Ms. Othoudt suggested a special meeting of the HRA to work through the details of the loan documents and fee requirements. Following the presentation, it was the consensuses of the HRA to have CEE administer the HRA Rehab Loan Program to provide an improved loan program aligned with the commission’s desire to increase the underwriting standards and target a larger population of residents through the program. A special meeting will be scheduled to review and approve loan documents. 7.2 HRA Rehabilitation Loan Program Update Ms. Eddy presented the staff report. 7.3 Marketing Update Ms. Eddy presented the staff report.