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SPECIAL MEETING OF THE ELK RIVER <br />HOUSING AND REDEVELOPMENT AUTHORITY <br />HELD AT THE ELK RIVER CITY HALL <br />MONDAY, JANUARY 26, 2009 <br />Members Present: Chair Wilson, Commissioners Kuester, Lieser and Toth <br />Members Absent: Commissioner Motin <br />Staff Present: Community Development Director Jeff Gongoll, Director of Economic <br />Development Catherine Mehelich, Recording Secretary Debbie Huebner <br />Also Present: Mayor Klinzing, Heidi Peper of S.E.H., Inc. and Dan Roberts of Tri -Cap <br />Call Meeting To Order <br />Pursuant to due call and notice thereof, the special meeting of the Elk River Housing and <br />Redevelopment Authority was called to order at 5:30 p.m. by Chair Wilson. <br />2. Consider January 26, 2009 HRA Special Meeting Agenda <br />MOVED BY COMMISSIONER KUESTER AND SECONDED BY <br />COMMISSIONER LIESER TO APPROVE THE JANUARY 26, 2009 HRA <br />AGENDA AS PRESENTED. MOTION CARRIED 4-0. <br />Discuss HRA Grant Application for Neighborhood Stabilization Program (Foreclosure <br />Recovery Funds <br />Mr. Gongoll reviewed the letter to the City of Otsego which proposes a split in the $715,446 <br />funding for the 55330 zip code as follows: <br />Otsego foreclosures: 48 Otsego 17% of funding $121,626 <br />Elk River foreclosures 228 Elk River 83% of funding 593,820 <br />Total foreclosures 276 Total NSP Funds in 55330 zip $715,446 <br />Commissioner Lieser asked what would happen to Otsego's funds if they did not use them. <br />Heidi Peper, S.E.H., Inc., stated that the MN Housing Finance Agency will be monitoring <br />use of the funds at 6, 9 and 12 months. If adequate progress is not being made, the funds <br />would be put back into a statewide pool. Chair Wilson asked if the city could apply for <br />those funds. Ms. Peper stated she would expect that the high need cities could apply for the <br />pooled funds. Mr. Gongoll noted that Elk River has only one zip code, and Otsego has <br />three zip codes. Chair Wilson asked if Otsego would be able to use monies for all three zip <br />codes. Ms. Peper stated yes. <br />Ms. Peper explained how the targeted neighborhoods were chosen and the three types of <br />assistance that would be offered: downpayment assistance, purchase rehab, and acquisition <br />rehab. Partners in the program include Tri -Cap, Central Minnesota Housing Partnership, <br />area realtors and lenders, and MHFA/GMHF. Ms. Peper also discussed income limits for <br />eligibility and possible assistance scenarios. She noted that Connexus Energy has offered to <br />partner by donating Energy Star appliances for buyers under 80 percent of the median <br />