6. HRSR 01-05-09 - Laserfiche WebLink

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Update on NSP Application HRA Meeting January 5, 2009 Page 2 of 2 The HRA directed staff to proceed in developing the following programs as eligible activities under the NSP Fund guidelines to address foreclosure issues in the target neighborhoods: • Establish financing mechanisms (e.g. downpayment assistance) for purchase of abandoned or foreclosed homes • Establish rehabilitation assistance program fox homes that have been abandoned or foreclosed in order to sell In addition the HRA approved contracting with S.E.H., Inc. for grant writing services at a cost not to exceed $5,000. Recent Activities In follow up to the HRA's direction staff has completed the following recent activities in preparation of the NSP application: • Continue to research, collect and sort current and historical foreclosure data through County Sheriff's sales, realtor listings and photo surveys • Attended technical assistance provided by MN Housing Finance regarding application submittal requirements • Met with local mortgage consultant and realtors for input on Elk River's foreclosure situation • Met with lead bank, MinnWest, on The Bluffs and their realtor • Exploring model downpayment assistance and rehabilitation assistance programs Next Steps/Actions Requested The Greater MN Housing Fund (GMHF) recently announced they are accepting applications for Foreclosure Recovery Planning and Technical Assistance Funds to assist cities in covering the costs to prepare NSP applications up to $10,000. The funds will be awarded as a "recoverable loan" that will be forgiven if the city's NSP application is not awarded. If the NSP application is awarded, GMHF would be repaid out of the NSP grant award as an eligible administrative cost. The HRA is asked to authorize staff to submit application to GMHF for up to $5,000 toward reimbursement of the grant writing services contract with S.E.H., Inc. GMHF Technical Assistance applications are due January 7`''. Details of the HRA's Neighborhood Stabilization Program activities and application are still being developed as information continues to be gathered on Elk River's foreclosure situation. Staff recommends the HRA consider calling a special meeting for later this month to review and consider approval of the NSP application prior to its submittal to MN Housing on January 28, 2009. This meeting would include details on the proposed program activities and administration. Optional dates for the HRA's consideration for a special meeting would be Tuesday, January 20~' or Monday, January 26~'.