4.1. DRAFT HRA MINUTES 03-02-2020

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Housing and Redevelopment Minutes Page 3 February 3, 2020 ----------------------------- 8.1 Blighted Properties Residential Forgivable Loan Program Discussion Ms. Othoudt began the discussion by addressing questions from last month’s review of the draft program policy. She stated the question remains if contractors can qualify and be eligible for this program as well as homeowners and how can this program seek ways to accommodate both. Ms. Othoudt stated she spoke with the building official to determine if city building inspectors could provide the HRA with a home inspection to determine if it is structurally substandard. The building official indicated they do have the ability to do the inspection. However, does the HRA want the city to inspect these properties and who is the city representing: the homeowner, contractor, or the HRA, and at what capacity are they doing the inspection. She stated currently the only way to do this type of inspection is to pull either a demo permit or a building permit and they would need to create an additional permit or application to trigger the structural substandard inspection. They are still determining the cost. Ms. Othoudt stated the other option would be to hire a licensed home inspector. Commissioner Eder asked if the contractor or the homeowner would hire a licensed home inspector. Commissioner Chuba stated to his knowledge there are no licensed home inspectors in MN because they aren’t certified by a legal government agency. He asked about using a structural engineer. Commissioner Eder stated in a traditional home purchase, a homeowner hires a home inspector to provide an inspection and a report which provides valuable information. Commissioner Ovall stated it’s for the benefit of the HRA to define what is substandard for a home to qualify for this program. He stated the inspection is just for the city’s use and purpose and stated he felt a city building inspector could do the inspection and it could be as simple as an internal work order. Ms. Othoudt stated a process would need to be put together as a mechanism doesn’t currently exist nor do they have a fee proposed. Commissioner Eder stated when the city did the inspections on the Main and Gates homes, a city building inspector was the one who inspected their condition to determine if they could be a rental property. Ms. Othoudt stated that was a rental inspection which is different then what this inspection would be. It was the consensus of the HRA to charge a fee for the inspection. Ms. Othoudt updated the HRA that sweat equity can be allowed. The HRA continued to review the draft policy: Terms –the loan demolition costs under section 1 raised the question by the attorney of who is obligated to repay the loan, the property owner (current or future) or the contractor. The HRA discussed the intent of the program and who is receiving the program incentive, noting it’s technically tied to the homeowner unless a contractor owns the property with the