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Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Housing and Redevelopment Authority 6.1 <br />Agenda Section Meeting Date Prepared by <br />General Business December 4, 2023 Joshua Mollan, Economic Development Specialist <br />Item Description Reviewed by <br />Housing Rehabilitation Loan Program Update Brent O’Neil, Economic Development Director <br />Reviewed by <br />Cal Portner, City Administrator <br /> <br />Action Requested <br />Receive updates on the Housing Rehabilitation Loan Program and proposed 2024 loan origination agreement. <br /> <br />Background/Discussion <br />The Minnesota Center for Energy and Environment (CEE) reports that all accounts are current and the HRA’s <br />portfolio is performing as expected with no delinquencies or late payments. On October 2, CEE closed on a new <br />loan for $23,780.00. CEE invoiced the loan amount as well as the $750 origination fee leaving $17,322.27 in <br />remaining funds available for new loan disbursements in 2023. After more than two years with no loans issued, <br />this marks four loans issued directly from the HRA’s funds so far in 2023. We attribute this, in part, to shifts in <br />marketing the program. Further, five additional loans have been issued in Elk River through CEE’s partnership <br />with Minnesota Housing Finance Agency. <br /> <br />The loan origination contract with CEE is set to expire on December 31. A new contract or another one-year <br />renewal would be necessary to continue the partnership with CEE in 2024. The administration fee for all cities <br />was increased to $5,000 last year but it was negotiated to continue the existing $2,500 administration fee for Elk <br />River through 2023. However, CEE advised that the fee would need to be increased to $5,000 in 2024. Staff will <br />be working with CEE and will make a recommendation for HRA consideration in January. <br /> <br />Lastly, we have received an additional inquiry from a homeowner outside of the Urban Services District making <br />them ineligible under current guidelines. Based on board feedback, staff can propose revised guidelines to the <br />HRA in January. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />Improve existing housing stock by offering incentives or programs to repair and maintain residential properties. <br /> <br />Attachments <br /> CEE Monthly Loan Activity Report <br /> CEE Monthly Loan Activity Summary <br /> Existing CEE Agreement <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br />Updated: January 2023 <br /> <br />