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HRA Fee Reimbursement - Page 1 of 2 <br />Request for HRA Action <br /> <br />Date: 11-21-06 <br />Item No: 8.c. <br />Director Approval: Agenda Section: <br /> CB Action Item <br /> <br />Description: Policy on Reimbursement of Program and Development Fees (HF0054) <br /> <br />1.0 Requested Action: <br /> <br />1.1 After discussion: <br /> <br /> By motion , adopt a policy and staff direction regarding methods to reimburse the HRA <br />for fees associated with the review of housing development. <br /> <br />2.0 Policy Suggestions for Fee Reimbursement: <br /> <br />2.1 As the HRA becomes more involved with housing development and housing renovation <br />financing additional outside resources will be needed. The resources used to review <br />financial implications of providing assistan ce for housing projects come as a cost of <br />service. The HRA Board has requested that a policy be developed to recover those costs <br />and ensure that the developments are paying for the fees associated with the review of <br />providing public assistance regardless if the project is approved or denied. <br /> <br />2.2 HRA Staff and Board Members requested policies from several developed and <br />undeveloped cities. The following is a summary of information that was gathered from <br />Columbia Heights, Elk River, Chaska, Blai ne and Richfield. This information was <br />gathered either directly from those cities or from working experiences in those cities. <br /> <br />a. In most cases, all developments are responsible for the costs related to any <br />financial review or legal work that will be done for the City (HRA) on behalf of a <br />development regardless if it is from a private or non-profit developer. Usually the <br />process is the City employee will do the initial financial review to make sure that <br />the request for assistance is reasonable and needed for the development. Then if <br />any costs are to be incurred by outside legal counsel or fiscal consultants a budget <br />is put together and put in as part of th e developer/development costs. Typically, <br />the City does not pay for theses outside consulting costs. Some Cities require <br />deposits. Some Cities require that the developer enter into an agreement with the <br />City/HRA. <br /> <br />b. The City of Columbia Height provided a sample agreement that they use for their <br />projects that make it through the initial staff review process. (see attached). This <br />document is provided just as a sample. If the HRA wishes to have a specific <br />agreement, staff is suggesting that an agreement be drafted by the HRA attorney