08-03-2020 HRA MIN - Laserfiche WebLink

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Housing and Redevelopment Minutes Page 2 August 3, 2020 6. Public Hearings There were no public hearings. 7.1 HRA Housing Rehabilitation Loan Program Update Ms. Eddy presented the staff report. She indicated the past due homeowner has not made their third $200 payment and staff is looking to the commission for direction. CEE suggested since the homeowner is back to work, it may make sense to offer them a loan modification and move the past due amount to the end of the loan and extending the loan term by one year. She stated staff is looking for direction. Commissioner Eder asked when their third payment was expected. Ms. Eddy indicated Friday, July 31, 2020. Commissioner Swenson asked if CEE received any communication from the homeowner. Ms. Eddy indicated the homeowner indicated she was back working. Chair Toth asked if the homeowner is open to CEE's suggestion. Ms. Eddy stated the HRA will make the decision on whether to offer a loan modification and then communicate that to the homeowner. Commissioner Ovall asked if the payment due on July 31 was their current payment or part of their past due repayment plan. Ms. Eddy stated this payment was part of the multiple $200 payment proposal. Commissioner Ovall struggles with this because of the commission's offer of a good faith compromise by allowing smaller increment payments and having continued broken promises by not performing as outlined. He feels if they cannot afford their payments, they are limiting the HRA's course of action and asked if the homeowner was considering living at the property or sell. He emphasized he was not being insensitive but was trying to come up with the best course of action that would benefit both parties. Commissioner Eder asked why they have not listed their home for sale if their intentions were to sell. Ms. Eddy stated previously the borrower stated in a conversation to CEE they intended to sell but she was not aware of their timeframe. Commissioner Ovall suggested the borrower either make their payment within the week or provide the HRA with a listing agreement with an established realtor with a known commodity.