HomeMy WebLinkAbout2002-10-09 MINUTESCity ot Cottage Grove Human Services/Right Commission
Meeting Minutes
Wednesday, October 9, 2002
Members Present: Kathleen Klein, Kristin Haertl, Jnn Shinn, and Bruce Schmidt
Members Absent: Bart Fischer, Michael Watts, and Grace Krumm
Staff Liaison: Scott Johnson
Council Liaison: Rod Hale
Guests: Barb Dacy, Washington County HRA
Kristin Degrande, Community Revitalization Resources
7:08 PM Call to Order
The Commission approved the minutes from the September meeting. Barb Dacy from
Washington County HRA gave a brief overview of the federal, state, and county
resources that are available to Cottage Grove residents for housing re-habilitation
programs. The City has access to CDBG grants through the federa] govemment.
Washington County still has an allotment of over $ l OQ000 from unused CDBG grants to
Washington County Cities and Townships. This money has been earmazked by the HRA
Board for developing affordable housing units in Washington County.
Ms. Dacy said an average housing rehabilitation project costs between $12,000 and
$15,000. Some City's in the Twin Cities metro azea have allocated funds to specific
neighborhoods for re-habilitation of older homes. Other cities have put together
mortgage programs for purchase/re-habilitation of older homes. Ms. Dacy said this
program works best through a chosen banker.
Bazb Dacy also mentioned the "This Old House Law" which allows homes that are over
35 years old to be rehabilitated and the Washington County Assessor will hold off
valuation of the property for up to ten years. The owner needs to fill out a form and file it
with Washington County. MHFA also offers home fix-up loans at ]ower interest rates
through private bankers. These programs aze open to anyone who meets the income
requirements. Ms. Dacy also mentioned that Cottage Grove has the lazgest amount of
split level homes in Washington County. MHFA offers remodeling plan books for split
level and rambler style homes. She said this is a perFect time to start looking at re-
habilitating homes in Cottage Grove.
Kristin Degrande from Community Revitalization Resources said that her nonprofit
program can tailor a program to Cottage Grove's needs. CRS has been in existence for
20 yeazs. They are the leader in the state for securing MHFA loans for home
improvements. They usually do 1,200 to 1,400 loans per year. They are able to meet
with home owners for a minimal fee to assess the problems and help with determining the
bid for the housing re-habilitation project. CRS is able to take a mailing list of all of the
current residents and send out a mailer on the existing MHFA loan programs at no cost to
the City. She suggested looking at educating Cottage Grove residents on the
opportunities that MHFA curtentiy offers for housing re-habilitation. The current MHFA
income ma�cimum is $88,000 per house hold. MHFA loans are able to cover a wide
variety of home improvements.
Ms. Degrande also suggested a Community Fix -up Fund which can be applied for by a
couple of communities. Bazb Dacy suggested that Cottage Grove apply with St. Paul
Pazk and Newport for the fund. CRS would fill out the application for the three Cities.
Under the Community Fix-up Fund a community needs to target a certain neighborhood
or housing stock. The Commission suggested targeting the Omn Thompson
neighborhood built in the 1950's and 60's on the west side of 80` Street. The City's
involved can allocate funds to buy down the interest rates.
Ms. Degrande also discussed a Home Energy Loan that is available up to $10,000 and
has no income limits. ivIHFA also offers rental re-habilitation ]oans. The application for
the MHFA loans consists of a one sheet application, a pay stub and a bid. The bid can be
an itemized list from a hazdware store if you are doing the project yoursel£ The loan
amount is the tota] of the bids. A titie search is completed and a closing is set on the
loan. There is a three day rescission to cancel the loan. The up front closing costs for an
MHFA loan range from $15 to $150. The loan limit is $35,000 and the household
income limit is $88,000 (based on gross income). CRS also offers a program called
Operation Insulation. For a fee of $150, a person meets with you and goes through your
home to determine where insulation is needed. They conduct a number of tests and
provide a sheet of recommendations to improve your energy efficiency.
CRS only requires a written contract if the City invests money in any oFthe funds or if
they provide a specific program that is only used by Cottage Grove. Ms. Degrande said
that CRS is able to tailor and mail a brochure to the City's specifications. Commission
members thought this would be a great way to invest in the community and allow people
to stay in the community. Scott Johnson will contact the Cities of St. Paul Pazk and
Newport to determine if they would be interested in moving forward with an application
for the Community Fix-up Fund.
A Motion was made to adjoum the meeting by Jim Shinn. The motion was seconded by
Kathy Klein and the motion carried unanimously. The meeting adjoumed at 8:05 PM.
Next meeting is 7:00 PM November 13, 2002