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City Council Minutes <br /> July 2, 2019 <br /> Page 3 of 8 <br /> ----------------------------- <br /> funded he stated they need to stay within the target area. In determining the <br /> target area they need to determine the number of low to moderate income <br /> families that would qualify and submit a list of interested parties to DEED. The <br /> funds are offered to the people that responded to survey. Once funded Mr. <br /> Schommer goes out to the property to develop a scope of work which typically <br /> consists of roofs, windows, and electrical. They use housing quality standards to <br /> develop the scope of work with the goal of having a safe home when the project <br /> is done. With older homes, a lead risk assessment is required and any issues <br /> need to be addressed. Mr. Schommer works with the homeowners to write <br /> contracts for the contractors and he works with the cities to pay the contractors. <br /> Rental rehabilitation is a 70/30 split, which means the owner needs to contribute <br /> at least 30% to the project and owner occupied and commercial is an 80/20 split. <br /> Discussion ensued about income guidelines, Congress' approval of funding, and <br /> the experience that Crow Wing County HRA has with this grant. The grants are <br /> structured in a form of a deferred loan and forgiven after 10 years; 10% forgiven <br /> per year. If the property is sold a portion of the deferred loan needs to be repaid <br /> which is based on the percentage remaining on the loan, for example, if the <br /> property is sold after 5 years 50% of the loan needs to be repaid. <br /> The Crow Wing County HRA hired a company called Community Fundraising <br /> Solutions to look at the cities individually within Crow Wing County to help <br /> determine areas that would qualify for the grant. The application needs to include <br /> certain statistics when applying for the grant and this Company helped sum up <br /> this information for Pequot Lakes. Within Pequot Lakes' population, the <br /> percentage of low to moderate income was at 51% and they surveyed 213 owner <br /> occupied units of which 82 were considered substandard. The commercial <br /> property surveyed was 71 properties which 9 were considered substandard. <br /> The Crow Wing County HRA would like to know if the City of Pequot Lakes is <br /> inte�ested in the grant. If so, the HRA is willing to help throughout the entire <br /> process beginning by identifying what type of application to apply for; identify a <br /> target area; survey the property owners; and prepare the pre-application and <br /> submit it to DEED. The City Council authorizes the process every step of the way <br /> and there are public hearings that are required to be held both prior to <br /> submission and also during the operation of the Program. After the preliminary <br /> proposal is selected they will help with the final application. <br /> Council Member Swanson asked if the HRA requires a fee from the City. Ms. <br /> Bergman stated that they will take an administrative fee from the grant between <br /> 10-14% and there is no money required if the grant is not funded. <br /> Mark Jurchen noted the City of Pequot Lakes tried several years ago to start this <br /> process and the challenge was getting buy in from homeowners because of the <br /> amount they needed to contribute. Mr. Schommer stated that when they submit <br /> the application they propose how the owner contribution is funded which may <br /> include weatherization which is the owner's contribution towards the grant. They <br /> also have the MN Housing Deferred Loan that can be accessed as well. MN <br />