7.1. HRSR 01-07-2019 - Laserfiche WebLink

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Request for Action To Item Number Housing and Redevelopment Authority 7.1 Agenda Section Meeting Date Prepared by General Busines January 7, 2019 Amanda Othoudt, EDD Item Description Reviewed by HRA Housing Rehabilitation Loan Program Cal Portner, City Administrator Reviewed by Action Requested Hear a presentation by the Center for Energy and Environment and provide staff with direction on the administration of the Rehabilitation Loan Program. Background/Discussion At the May 5, 2014, regular meeting, the HRA approved hiring the Central Minnesota Housing Partnership (CMHP) to serve as the HRA’s housing consultant to develop and administer an internally- funded Elk River housing program. The loan program is now in its fourth year and has proved to be successful. At their July 2, 2018, budget meeting, the HRA by general consensus, agreed to continue funding the rehabilitation loan program under contract with CMHP to administer the program. The annual administrative agreement with CMHP is up for renewal in January. CMHP is proposing major changes to the administrative contract. In the past, program administrative fees were drawn quarterly in the amount of $3,750 for a total of $15,000 annually. Following are their proposed adjustments: 1. Administration costs paid on a per-project basis in an amount equal to 15% of the HRA loan funds used. Administrative fees drawn at the time of each project completion. 2. Track CMHP staff time for non-project specific program administration activities to include general informational meetings, city/HRA meetings, and other marketing/outreach activities not directly related to a specific project. CMHP will charge an hourly rate of $50.00 and bill quarterly. 3. Track travel mileage of non-project specific program administration and charge the applicable federal mileage rate and bill quarterly. 4. Track direct non-project specific program administration costs such as postage and printing/duplication and bill quarterly. 5. A continuous contract with an added termination clause stating either party may terminate the contract in writing with a 30-day notice. At their December 3, 2018, Work Session, the HRA discussed the CMHP changes to the administrative agreement. Staff provided information on the Center for Energy and Environment. It was the consensus of the commission to allow the CMHP contact to lapse and direct staff to get The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity