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�� Request for Action <br /> Elk - <br /> River <br /> To Item Number <br /> Housing and Redevelopment Authority 7.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business June 1, 2020 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> HRA Housing Rehabilitation Loan Program Update Cal Portner, City Administrator <br /> Reviewed by <br /> Action Requested <br /> Receive update on the Rehabilitation Loan Program,provide staff direction on loan modification. <br /> Background/Discussion <br /> CEE is following up with the application from last month, otherwise originations are very quiet. For servicing, <br /> one homeowner has paid their loan in full. The HRA portfolio has been very stable despite the current <br /> conditions with only one account 365+ DPD. <br /> We have been in contact with this borrower and they will be making a $300 payment this week via money <br /> order.We have been in contact with the borrower and learned that they are back to working full-time. CEE <br /> wants to make sure that they are serious about bringing the account current and about making payments,and <br /> now that she is working full time,we are finally beginning to see good intentions. <br /> CEE proposes a three month modification of$300.00 and if the borrower makes her payments on time,the <br /> past due amount (including interest and late fees),will be capitalized and moved to the end of the loan, <br /> extending the loan for 12 more months. Staff is seeking direction from the HRA. <br /> Effective March 24, 2020, the Governor's Executive Order 20-14 prohibits mortgage holders from filing <br /> eviction actions to recover possession of a property after termination of a redemption period. Financial <br /> institutions are "requested" to enter a moratorium on all pending and future foreclosures and evictions against <br /> borrowers impacted financially by virus and "strongly urged" not to assess late fees and penalties for <br /> nonpayment related to epidemic. <br /> CEE's legal department is reviewing the COVID-19 foreclosure moratorium order and their opinion is the <br /> order does apply to the EDA (note owner);therefore,we need to wait until the end of the moratorium to <br /> proceed with the Notice of Default. The order does not preclude us from continuing contact with the <br /> borrower. <br /> Financial Impact <br /> N/A <br /> The Elk River Vision <br /> A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional P U W E H E o s r <br /> service, and community engagement that encourages and inspires prosperity ,g /` UR <br />