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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br />Request for Action <br /> <br />To <br />Housing and Redevelopment Authority <br />Item Number <br />6.1 <br /> <br />Meeting Date <br />December 1, 2025 <br />Prepared By <br />Joshua Mollan, Economic Development Specialist <br /> <br />Item Description <br />Housing Rehabilitation Loan Program Agreement <br />Renewal and Update <br />Reviewed by <br />Brent O'Neil <br />Cal Portner <br /> <br />Action Requested <br />Approve, by motion, the 2026 loan origination amendment with the Minnesota Center for Energy and <br />Environment (CEE). Receive updates on the Housing Rehabilitation Loan Program. <br /> <br /> <br />Background/Discussion <br />The loan origination contract with CEE expires on December 31. An amendment for another one-year <br />extension has been drafted. The annual administration fee to CEE will remain the same at $5,000. The loan <br />origination fee will increase from $750 to $775. Additionally, the remodeling advisor visit fee will also increase <br />from $250 to $275. The administration fee is paid by the HRA; the other fees are paid by clients using the <br />program. CEE facilitates additional loans that support the goal of the HRA's program to improve the housing <br />stock in Elk River. <br /> <br />Year-to-date, CEE has closed two Elk River Housing Rehabilitation Loans and two other loans provided by <br />CEE and the Minnesota Housing Finance Agency, totaling $59,326. Staff recommends amending the loan <br />origination contract with CEE, extending the agreement through 2026. <br /> <br />Regarding existing loans, CEE reports that all accounts are current, and the HRA’s portfolio is performing as <br />expected with no delinquencies or late payments. One loan closed in October for $35,000 for a four-season <br />porch project. $106,849 remains available for new loan disbursements for the remainder of 2025. <br /> <br />Financial Impact <br />$5,000 drawn from budgeted contractual services account. <br /> <br />Mission/Policy/Goal <br />Improve existing housing stock by offering incentives or programs to repair and maintain residential <br />properties. <br /> <br />Attachments <br />1. 2026 Proposed Amendment to Origination Agreement <br />2. CEE Monthly Loan Activity Summary <br />3. CEE Loan Activity Report Q3 2025 <br />Page 11 of 40