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<br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />Request for Action <br /> <br /> <br />To <br />Housing and Redevelopment Authority <br />Item Number <br />8.1 <br />Agenda Section <br />Work Session <br />Meeting Date <br />December 3, 2018 <br />Prepared by <br />Amanda Othoudt, EDD <br />Item Description <br />HRA Housing Rehabilitation Loan Program <br />Administrative Agreement with CMHP <br />Reviewed by <br />Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Discuss the HRA Rehab Owner-Occupied Housing Rehabilitation Program Administrative Agreement <br />with CMHP to administer the HRA housing program and provide staff direction. <br /> <br />Background/Discussion <br />At the May 5, 2014, regular meeting, the HRA approved hiring the Central Minnesota Housing <br />Partnership (CMHP) to serve as the HRA’s housing consultant to develop and administer an internally- <br />funded Elk River housing program. <br /> <br />The loan program is now in its fourth year and has proved to be successful. <br /> <br />At their July 2, 2018, budget meeting, the HRA by general consensus, agreed to continue funding the <br />rehabilitation loan program under contract with CMHP to administer the program. <br /> <br />The annual administrative agreement with CMHP is up for renewal in January. CMHP is proposing major <br />changes to the administrative contract. In the past, program administrative fees were drawn quarterly in <br />the amount of $3,750 for a total of $15,000 annually. Following are their proposed adjustments: <br />1. Administration costs to be paid to CMHP on a per project basis in an amount equal to 15% of <br />the HRA loan funds used. Administrative fee to be drawn at the time of each project completion. <br />2. Track staff time for non-project specific program administration activities to include general <br />informational meetings, city/HRA meetings, and other marketing/outreach activities not directly <br />related to a specific project. CMHP will charge an hourly rate of $50.00 and bill quarterly. <br />3. Track travel mileage of non-project specific program administration and charge the applicable <br />federal mileage rate and bill quarterly. <br />4. Track direct non-project specific program administration costs such as postage and <br />printing/duplication and bill quarterly. <br />5. A continuous contract with an added termination clause stating either party may terminate the <br />contract in writing with a 30-day notice. <br /> <br />