01-06-2020 HRA MIN - Laserfiche WebLink

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Housing and Redevelopment Minutes January 6, 2020 6. Public Hearings There were no public hearings. 7.1 HRA Housing Rehabilitation Loan Program Update Ms. Othoudt presented the staff report. She reviewed details regarding the 270+ day delinquent loan. Commissioner Ovall asked Ms. Othoudt about amending the original loan agreement as discussed at the November meeting. Page 2 Ms. Othoudt stated the loan modification discussion at the November meeting wasn't for this borrower. She stated she is open to modifying the loan documents for this borrower unless the Commission has other solutions or unless they feel they are beyond that due to the length of the borrower's delinquency. Commissioner Eder asked if Ms. Othoudt knew how soon the borrower felt he could get back to a regular payment schedule. Ms. Othoudt stated the borrower just informed her they would be back on a regular payment schedule very soon but did not give her a timeline. Commissioner Eder requested a more definitive timeline and future payment schedule from the borrower as that would determine how the Commission would respond regarding the future of this loan. Ms. Othoudt stated she will discuss this with the borrower and bring back that information to the next meeting. Ms. Othoudt then discussed the borrower who typically makes their payment at the end of the month. She stated the last payment made was December 29, 2019, just before the 30 -day late period. The borrower requested a 3 -month payment plan to avoid any collections and instead of modifying their loan documents. Commissioner Eder stated if the Commission approved a 3 -month payment plan, that would require a loan document modification. Commissioner Ovall noted CEE would have those loan documents in their system and CEE would have the borrower sign a debt modification. He stated this will keep the amortization and maturity on schedule and no late fees will be accrued. Vice -Chair Chuba asked what stage the loan was at. Ms. Othoudt stated the loan was in its second year. The HRA was supportive of the debt modification for this borrower and Ms. Othoudt will contact CEE to have them prepare the proper documents.