Minutes of HRA Regular Board Meeting

Minutes of HRA Regular Board Meeting Monday, April 11, 2011, 12:00 p.m.

1. Call to Order. Vice Chair Mensing called the meeting to order at 12:02 p.m. in the Main Office of Crescent Apartments.

2. Roll Call. Members present: Vice Chair Dan Mensing, Les Hintz and Rick Scholtes. Chair Bierly arrived at 12:05 p.m. Staff present: Kathy Bailey, City Administrator and Nancy Cole, Executive Director/Housing Manager. Also present: Mayor Rob Hammond, Linsey Warmka and Ann Kluenenberg from FCDC.

3. Approval of Minutes. The minutes from the HRA Regular Board meeting of March 14, 2011 and the HRA Special Board meeting of April 1, 2011 were provided in the HRA packet for the board to review.

Mensing addressed the past discussion regarding the vacancy policy at the Crescent Apartments. Scholtes recommended discussing policy changes moving forward at the May HRA meeting.

SCHOLTES MADE THE MOTION, HINTZ SECOND TO APPROVE THE MINUTES OF THE HRA REGULAR BOARD MEETING OF MARCH 14, 2011. THE MOTION WAS APPROVED UNANIMOUSLY.

BIERLY MADE THE MOTION, SCHOLTES SECOND TO APPROVE THE MINUTES OF THE HRA SPECIAL BOARD MEETING OF APRIL 1, 2011. THE MOTION WAS APPROVED UNANIMOUSLY.

4. Budget update and approval of bills. Housing Manager Nancy Cole shared that she was advised by HUD to move part of the remaining 2010 Capital Funds into operations.

SCHOLTES MADE THE MOTION, HINTZ SECOND TO APPROVE THE BILLS AS PRESENTED TO THE BOARD. THE MOTION WAS APPROVED UNANIMOUSLY.

5. Correspondence. There was no correspondence.

6. Old Business. A. Review Contractor’s Housing Meeting – Linsey Warmka. FCDC Director Linsey Warmka and Administrative Assistant Ann Kluenenberg were present to report on their recent meeting with area contractors to discuss the Housing Rehab and Blighted Property Programs. Warmka shared that the contractors have requested a scope of work to be done for the bidding process. Warmka recommended making this the responsibility of the contractor who will be serving as the advisor for the project.

Scholtes discussed that he would prefer to allow the homeowner to have the final say on the style and choice of their building materials. Warmka agreed that the homeowner should have a say on the type of materials used for their rehab project. Scholtes questioned if two bids would be necessary for the project. Warmka responded yes and noted that if the homeowner does their own work they will also be required to get two bids on the materials.

1 Mensing questioned when the rehab advisor would become involved in the housing rehab process. Kluenenberg responded that the advisor would provide assistance to the homeowners when determining the rehab needs of their residence. Kluenenberg added that this assistance would be especially helpful for the elderly and first time homeowners. Scholtes noted that the advisor would be ineligible to bid on the rehab project that they are assisting with. Scholtes questioned the fee for the advisors’ services. Warmka shared that she is writing a RFP to obtain advisors for the housing program.

Bailey shared that the contractor meeting was well attended with approximately 30 contractors in attendance that were both local and from neighboring communities and licensed in different areas for the scope of work. Bailey stated that at the contractors’ meeting it was noted that the City’s proposed program is a little different than what the contractors are used to and added that housing rehab programs generally have a full-time contractor on staff in addition to having minimum specs set for the improvement projects.

Bierly addressed the issue of contractors using inexpensive materials for the rehab projects. Scholtes questioned if it would be a requirement for the contractor to be licensed. Warmka responded that the bids must be from a licensed contractor and shared that a handout which lists the licensed contractors will be provided to the applicants.

Warmka reported that she had recently met with the local realtors and will be meeting with the bankers today to discuss the housing programs. Warmka shared that the realtors recommended including the option of installing central air conditioning in homes with a forced air furnace. The realtors felt that this would increase the value of the house. This option would not be available for a boiler heating system due to the increase in cost for duct work. Bierly stated that he did not see an issue with including central air conditioning. Warmka questioned if a bathroom ventilation system could be included in the rehab program. Bailey responded yes and noted that this is a new building code requirement.

The board discussed the attractive housing program fliers that were inserted in the April 11th edition of the Faribault County Register. Scholtes questioned the cost of the fliers. Kluenenberg did not have the costs available at this time but noted that 3,000 fliers were printed for the program. Warmka discussed that they have enough fliers to insert in the newspaper for 3 weeks. Warmka shared that they received a price reduction from the Faribault County Register to run the small ad through August in addition to printing and inserting the flier for three weeks. The cost for the ads and fliers were for the original budgeted amount of $2,448.00. Warmka noted that they have already received inquiries since the fliers went out in the newspaper.

B. New Build Housing Incentive Program – Rob Hammond. Mayor Rob Hammond provided a handout on a new home construction grant program that was implemented in 2004 by the City of Estherville, Iowa to encourage new home construction within the city limits. Hammond discussed that a new house has not been built in the City of Blue Earth during the last two years and shared that this program could give added incentive for new. construction. Hammond noted that it may be necessary to make an adjustment to the house values due to the difference in Estherville’s residential market values when compared to those of the City of Blue Earth.

Hammond shared that the incentive program was discussed at a recent Council meeting and it was recommended that the HRA have involvement in implementing the program. Hammond shared that the payback period of the grant is between 3 – 5 years and noted that it would be similar to a TIF for private housing. Hammond discussed that the City could borrow funds from the HRA and pay them back with payments from property taxes received from the new homes that are constructed.

Mensing questioned if there would be a defined accounting of the HRA funds that would be loaned to the City for the program. Bailey responded that it would be considered an internal 2 TIF. Bailey shared that a fund could be set up with money budgeted each year for the fund. The board had further discussion on the procedure for repayment of the funds to the HRA and the formula for determining the amount of the grant that is awarded. Bailey noted that the grant levels need to be reviewed by the board. Bierly recommended readdressing the incentive program at the May HRA Board meeting.

Mensing shared that he was recently contacted by Jeff Lang to serve on a new housing development taskforce. Mensing recommended involvement from the Blue Earth Light & Water Department, City Engineer and City staff for this project.

C. Emergency Exit Only sign posted. Housing Manager Nancy Cole reported that an “Emergency Exit Only” sign has been posted on the door in the dining room.

D. House Rules. Cole provided an updated copy of the House Rules for the Blue Earth Housing & Redevelopment Authority. Cole presented to the board for signature Resolution #2011-05 approving the House Rules.

Bailey informed the board that window air conditioner units that can be plugged into an outlet and are not hardwired do not require a building permit.

SCHOLTES MADE THE MOTION, HINTZ SECOND TO APPROVE RESOLUTION #2011-05 APPROVING THE HOUSE RULES AS PRESENTED. THE MOTION WAS APPROVED UNANIMOUSLY.

7. New Business. A. Generator contract with Interstate. Cole reported on the 3-year contract with Interstate to inspect the generator annually for $744.00 and to replace the battery once every three years for $242.00.

B. New apartment numbers. Cole shared that due to the issue of apartment number listings being broken off the doors new numbers were recently purchased and will be applied to the glass insert on the doors in the commons areas.

C. HUD Depository Agreement. Cole discussed the General Depository Agreement that is required by HUD. Cole shared that a signed copy of the agreement will be provided to the three local banks.

D. Capital Funds 2010 – money moved into operations. This agenda item was discussed during the budget update and approval of bills.

8. Other Business. There was no other business to discuss.

9. Director’s Reports. A. Housing Manager Nancy Cole discussed a recent eviction that occurred at the Crescent Apartments. Scholtes questioned Cole on the eviction process that she utilizes at the Crescent. Cole shared that a two week notice is required prior to the eviction and added that she prefers working with the tenant prior to moving forward with an eviction.

Cole reported that the vacancy rate in the Crescent Apartments is currently at four.

B. City Administrator Kathy Bailey did not have a report at this time.

10. The next HRA Board meeting will be held on Monday, May 9, 2011.

3 11. Adjournment. Chair Bierly adjourned the meeting at 1:00 p.m.

______HRA Chair

Minutes approved on ______