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