01-14-2019 HRA MIN SPECIAL - Laserfiche WebLink

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Regular Meeting of the Elk River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, January 14, 2019 Members Present: Chair Larry Toth, Commissioners Denny Chuba, Michelle Eder (4:22 p.m.), Louise Kuester, and Nate Ovall Members Absent: None Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy, and Sr. Administrative As Secretary Jennifer Green I . Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment Authority was called to order at 4:00 p.m. by Chair Toth. 2. HRA Housing Rehabilitation Loan Program Ms. Othoudt presented the staff report. The HRA reviewed the draft documents and revised them to fit the program guidelines and policy. The HRA discussed in detail the length of time the Center for Energy and Environment (CEE) would administer the loan program. Ms. Othoudt stated after meeting with CEE staff the Friday prior, she felt very comfortable with them to have a loan program term longer than 1 year. It was the consensus of the HRA to lock into a 3 -year term with CEE if they can commit to the same fees for those 3 years as well as having a termination clause in the contract. The HRA discussed the loan repayment interest rate. It was originally presented at 3% and the HRA considered raising the rate to 4% to recoup costs to regenerate the pool of loan funds. It was the consensus of the HRA to set the loan rate at 4%. The HRA discussed the credit requirements for applicants. It was the consensus of the HRA to require the borrower to be 24 months since a bankruptcy, have no more than two 30 -day late payments on an applicant's credit report in the past year, and a 620 minimum credit score. The HRA decided to remove from sweat equity the rental of tools and equipment and add that the borrower will be responsible for the cost of the site visit.