03-02-2009 HRA MIN - Laserfiche WebLink

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Housing & Redevelopment Authority March 2, 2009 Page 2 Ms. Mehelich stated that the City/HRA's application for Neighborhood Stabilization Program (Foreclosure Recovery) funds in the amount of $593,820 was approved by the Minnesota Housing Finance Agency on Thursday, February 26th. Ms. Mehelich stated that the next steps include executing NSP funding agreements, environmental review, and agreements with Tri -Cap. She stated that staff anticipates a kickoff open house event in April. Ms. Mehelich stated that the program will provide down payment assistance, purchase and rehabilitation of abandoned/ foreclosed homes (both buyer and entity -driven). Commissioner Motin asked if the funds are just for Elk River. Ms. Mehelich stated yes, noting that Otsego applied for funds for the 55330 zip code but were not approved. Commissioner Lieser asked if Sherburne County made application for the funds. Ms. Mehelich stated yes, that their application was a joint application with the St. Cloud HRA. Chair Wilson asked if Elk River would have an opportunity to apply for any unused funds. Ms. Mehelich stated that they may have an opportunity for a second round of funding, and staff will wait to hear from the MN Housing Financing Agency in this regard, as they will be monitoring the process. Commissioner Toth asked when the funds will be awarded. Ms. Mehelich stated that they hope to be able to market the program in April. Commissioner Lieser asked if the city will be working with Tri -Cap to identify damaged homes. Ms. Mehelich stated that is the purpose of the program, to identify foreclosed homes that need rehabilitation, to make the improvements, and then sell the homes. 6. Update on Elk River's Foreclosure Initiatives Ms. Deckert stated that staff has developed three initiatives to stabilize and improve the city's housing stock including foreclosure prevention, preserving and securing vacant and foreclosed homes, and recovery (revitalizing properties by providing assistance to quickly make homes market -ready). Ms. Deckert noted that 60 homes have been identified as having unpaid utility bills or have had service stopped, and have not been listed on the sheriff's sale information. Commissioner Kuester asked if staff has found the pattern to be similar to other communities. Ms. Decker stated yes. Commissioner Kuester asked where flyers with the assistance information will be distributed. Ms. Deckert stated that flyers will be available at Goodwill, the Salvation Armey, local banks, CAER, and with some of the larger employers. She noted that the information is also available on the city's website, cable channel, and will be posted in the next issue of The Currre city newsletter. Ms. Mehelich noted that a direct mailing could be done for the list of homes, or local realtors or added as insert to the utility billing. Chair Stewart stated that once properties have gone to the sheriff's sale it is probably too late. He encouraged listeners to contact City Hall if they are aware of abandoned homes in their neighborhoods, or if they are aware of people in need of help. Commissioner Motin stated that the City Council will consider an ordinance amendment to allow city intervention if a utility bill is over 30 days delinquent. He noted that the sheriff's