2008-09-16_Agenda - Laserfiche WebLink

Home

Member Pust expressed a concern over the indemnity language contained in Mr. Hornik's contract. Mr. Trudgeon noted that staff will review the language and strike it, if necessary. Motion: Member Pust moved, seconded by Member Maschka to approve the consent agenda with the amended contract language. Ayes: 6 Nays: 0 Motion carried. 7. Public Hearing None. 8. Action/Discussion Items: a. Discuss Multi-Family Guidelines Ms. Kelsey noted that the RHRA in its Strategic Plan identified the rehabilitation of multi-family rental property as one of its long-term goals. Ms. Kelsey summarized the Multi-Family Rental Rehabilitation Loan Program guidelines proposed by staf£ Ms. Kelsey noted that the Housing Resource Center has agreed to administer this loan without additional charge to the RHRA. Member Tracy suggested that the loan-value ratio should not exceed 90%, instead of the 100% loan-to-value ratio proposed by the program guidelines. Member Tracy also opined that he would like to see in the guidelines a clearer definition of "acceptable credit history" for program applicants. Member Maschka wondered if the program guidelines should require a cash flow analysis of the program applicants to ensure that the loan can be paid off. Member Pust expressed a concern that the guidelines identify a blended interest rate of 6%. Ms. Kelsey noted that 6% is the interest rate currently charged by the state's loan program. Ms. Pust asked staff to amend the program guideline language to tie the interest rate to the current rate used by the state loan program and not specify a set value so that the program guideline language needn't be amended as the rate fluctuates. Member Masche expressed his opinion that this was a good program which encouraged applicants by streamlining the loan process. Member Kelsey noted that, once the loan program was approved, staff would begin to communicate with eligible multi-family rental property owners to encourage applications for 2009. Ms. Kelsey summarized the changes to the program guidelines based on the board's discussion: staff will amend the loan-to-value ratio to 90%, program applicants will need to exhibit the credit score which is currently used by the Housing Resource Center for other RHRA loan programs, staff will incorporate a cash flow analysis to ensure that the applicant can repay the loan and staff will tie the interest rate to the current state program interest rate.