11-04-2019 HRA MIN - Laserfiche WebLink

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Housing and Redevelopment Minutes Page 3 November 4,2019 Spooled TIF monies from the Best Buy redevelopment project. For the Lot Sale Program, the city's focus was on older small substandard homes that had been built in the 50s and appeared to require maintenance or remodeling. The homes were typically vacant.The city purchases the property after an inspection deems the property substandard and an RFP process occurs for anyone to purchase the house/lot.The price of the property is determined by an appraisal. Then whoever purchases the property works with a builder chosen by the city and demos the property to build a 3 bedroom/2 bath/2-car garage home. The builder is then credited$10,000 from the city for demolition costs,with those funds coming from the pooled TIF monies. Ms. Eddy stated Richfield has completed 150 homes using this process. Ms. Eddy outlined the Development Credit Program where a builder and buyer enter into a purchase agreement contingent on HRA approval and sub plans for approval by the HRA. Once approved,they demolish the existing home and construct a new home for a$50,000 credit by the HRA. The HRA discussed the current home stock in Elk River and what properties could be considered substandard.Ms. Othoudt stated around 20-30 homes in the city that would be potential substandard homes but that was only based upon a visual inspection during a recent police ride-along. She indicated homes would typically require an inspection to determine the true condition of the home.The HRA discussed if there are any older housing developments that have a cluster of homes in need of repair. • The HRA discussed what type of programs currently offered and what parts of other programs reviewed would best benefit the housing stock of Elk River. It was noted the HRA doesn't purchase any properties for resale,which is one main difference in what other communities offer.Another difference is allowing builders to purchase homes for remodel/rebuild/resell. It was the consensus of the HRA to review the city's current Blighted Properties policy and rework it to allow builders to purchase homes. Ms. Othoudt will bring the policy back at a future meeting for review and evaluation against the HRA's long term goals. 9. Adjournment Chair Toth adjourned the meeting at 6:22 p.m. Minutes rep y Jennifer Green. Tina Allard,City Clerk • L T ;Chair Housing&Redevelopment Authority