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Discussion of Fee Policy - Page 1 of 2 Request for HRA Discussion Date: 10-17-06 Item No: 9.a. Director Approval: Agenda Section: CB Discussion Item Description: Discuss Options for Reim bursement of Fees Associated with the Review of Funding Options for Private and Non-Profit Housing Projects. (HF0041) 1.1 The HRA requested discussion regarding methods to secure reimbursement of fees associated with the review of funding reque sts associated from private and non-profit housing projects. The following provides a fr amework for that discussion as well as some possible options to review in the future. 1.0 Issue: 2.1 In the last year, the HRA has been in the process of reviewing two projects that are requesting the HRA’s participation and support to promote and facilitate housing renovation for large multi-family complexes. The support and facilitation of this type of renovation is a key goal of the HRA as part of their Housing Plan. Both issues require the review of state legislative powers as well as financial analysis that is beyond the scope of staff. This has generated outside legal fees from the HRA attorney’s office Krass Monroe. 2.2 The analysis and review of the projects is with no guarantee that the projects will be approved in the future. Therefore, there is a risk that those fees may become part of the cost of doing business. However, if the projects were approved, the HRA would be able to recover all of their costs associated with the front end review of the projects. 2.3 There currently is no HRA policy to recover preliminary costs for doing business evaluation of projects. 2.0 Possible Options: 3.1 Each community deals with these preliminary costs differently based upon their specific goals and strategies to promote housing renovation and redevelopment. If a community wants to be a partner and promote housing renovation and redevelopment, there is a cost of business to get that project to move forward. However, if a community wants to be a reviewer and facilitator in processing requests, than all up front costs should be borne by the requester. The HRA needs to consider what they want their role in the process to be and should consider what their goal and mission is.