12-07-2020 HRA MIN - Laserfiche WebLink

Home Browse Search

Housing and Redevelopment Minutes Page 2 December 7,2020 6. Public Hearings There were no public hearings. 7.I HRA Housing Rehabilitation Loan Program Update Ms. Eddy presented the staff report. 7.2 Main and Gates Redevelopment Update Ms. Eddy presented the staff report. She stated she received notice from Veit Construction that they found suspected asbestos in the basement 419 3' Street.Veit contacted Techtron, who tested and confirmed the finding. Ms. Eddy indicated Veit is required to landfill the material which will increase costs due to trip charges. The Techtron asbestos testing will also be an additional cost. The HRA recessed into work session at 5:38 p.m. and reconvened at 5:38 p.m. 8.I Center for Environment and Energy (CEE) Programs Discussion Ms. Eddy presented the staff report and introduced Jim Hasnik from CEE,who presented a PowerPoint outlining their programs and compared them to the HRA program. He asked for the HRA to consider how they can increase participation in its loan program and consider possibly changing some of its parameters. He also asked if CEE should be using �." the HRA dollars first or use other programs that make the best financial sense for our residents. He stated the HRA's program interest rate at 4% seems higher than other programs that are available which is why residents are using lower interest rate offerings. He stated there have been some applicants needing more than $25,000 which is the cap on the HRA loan. He indicated state loans are also a more popular loan option because the funds are disbursed at closing and there is no escrow involvement. Mr. Hasnik explained a few programs that offer down payment assistance, senior deferral programs, and emergency funds are also offered in other communities. He stated if the HRA were interested in exploring more options for lending funds, CEE can make those loan requirements income- based or not, are easy to set up, and do not require interest. Commissioner Ovall state he felt that any advocacy and tools that help the residents achieve their goals in a cost-effective manner, and improves the city's housing stock,is meeting the goals of the HRA loan program. He felt the HRA loan program is adequate for our initiatives asked if CEE had any other initiatives to take on or recommendations to consider about their own program. He wondered if a future work session could address some current needs in our own or other communities that offer programs. Commissioner Swenson asked if separate loans were available for well and septic. Mr. Hasnik stated those needs would fall under a home improvement loan. He indicated the city of Mounds View took out a$2 million loan for three years through the Minnesota