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HRA Meeting Minutes – Tuesday, October 21, 2014 Page 7 1 2 Ms. Malrick noted that in the past loans could be bundled together; however, now a 3 homeowner would have two separate loans, one at 4% and one at 5.99% every month, making 4 it difficult for homeowners to qualify for both. 5 6 At the request of Chair Maschka if the maximum loan amount was increased to $45,000 to 7 $50,000, Ms. Kelsey noted that the HRA only had a total of $600,000 to work with, unless it 8 deemed fit to increase that amount. Even with money ultimately revolving back into the 9 program, Ms. Kelsey advised that it would limit the number of people that could be assisted. 10 11 Ms. Kelsey asked that staff be allowed to complete their research on a specific neighborhood, 12 with the SE Roseville study being performed; and suggested future consideration may be 13 needed to consider if a specific neighborhood should have reinvestment in homes through an 14 incentive program. After completion of the study, Ms. Kelsey asked that the HRA have more 15 in depth discussions. Ms. Kelsey noted the overlaying improvement data requested of Mr. 16 Bilotta previously tonight may also provide additional information from building permit 17 information on average improvement values that may suggest modification of loan amounts 18 and how favorable to make the terms. Ms. Kelsey suggested another consideration may be in 19 expanding the program for owners of condominiums or townhomes to make energy efficient 20 improvements for their units if income-qualified for association improvements or one at a time, 21 since no other lender was willing to participate in those situations. Ms. Kelsey suggested the 22 HRA may want to consider targeting those incentives and loans based on the age of the 23 townhome association, or a specific neighborhood, or simply a blanket loan program. 24 25 Chair Maschka stated that he would certainly rather see the $600,000 being used for 26 improvements than just sitting there, even if it meant increasing the maximum loan amounts. 27 However, he also noted the need for townhome and condominium improvements to increase 28 their energy efficiency. 29 30 Member Etten questioned if there was anything needed on the part of the HRA to reduce 31 interest rates to meet the market in an effort to incentivize the loan programs. 32 33 Ms. Kelsey asked time to perform more research on market rates, whether the loan rates 34 offered in the private market were floating rates or for the entire term; opining that she thought 35 they were artificially low right now, and she wanted to ensure the HRA provided stability in 36 rates for homeowners over the long-term. 37 38 Member Etten suggested it may be wise for the HRA to look at the loan program annually to 39 examine and adjust interest rates to make for a more useful and user-friendly program. 40 41 At the request of Member Elkins, Ms. Malrick advised that the Ramsey County loan program 42 rate was at 0% now, with a certain amount forgiven after eight years and up; however, she 43 clarified that the program was intended to bring homes up to housing standards, and not for 44 remodels. 45 46 Chair Maschka noted that the HRA was more interested in home remodels. 47 48 Ms. Kelsey, in noting that the HRA had one more meeting scheduled in 2014 before the 49 holidays, asked that staff be allowed time to get some final information to the HRA on their 50 research to-date; and also pull up the other information to overlay as requested tonight, as well 51 as hold discussion with County Assessors to see what type of improvement increased a home’s 52 value compared to other improvements. Ms. Kelsey suggested that this additional information 53 may provide an opportunity for the HRA to target things to bring those homes up to market 54 conditions by today’s standards (e.g. additional garage stalls). 55