Red Wing Housing & Redevelopment Authority

428 West Fifth Street, Red Wing, MN 55066Telephone (651) 388-7571 FAX (651) 385-0551TDD/TTY 711 www.redwinghra.org

April 12. 2016

To: Red Wing Housing and Redevelopment Authority Board of Commissioners

From: Randal Hemmerlin, Executive Director

Subject: Small Cities Program Income Owner Occupied LoanReagan Kilbride RWH-021

Background;

Michelle Vrieze of CEDA processed an Owner Occupied Single Family Housing deferred loan of up to $22,000.

Analysis:

Ms. Vrieze has contacted the applicant and provided us an application and letter stating they are eligible. Theletter is attached. She is recommending that we move forward and approve the loan.

The application is not attached as it has income information that is considered confidential. We would processthis housing rehab loan in a manner identical to our 2014 Award Small Cities Owner Occupied loans. What thismeans is that we would file a Loan Repayment Agreement with the 10 years of compliance as a lien on theproperty. The loan would be forgiven after 10 years if the borrowers remain compliant. CEDA would take careof this as part of the loan processing.

Budget Impact:

We have the Program Income Funds available for this loan.

Recommendation:

Staff and the Finance Committee give a favorable recommendation to the Red Wing HRA Board ofCommissioners to approve a $22,000 Small Cities Program Income Deferred Loan to Regan Kilbride with a termof ten years, upon which the loan will be forgiven if the borrowers stay compliant. The Executive Director andCEDA will process the loan in accordance to the same procedures as our 2014 Small Cities DevelopmentProgram grant Owner Occupied program.

EQUAL OPPORTUNITY HOUSING / EQUAL OPPORTUNITY EMPLOYMENT

jVC E daCommunity and Economic

H|(r Development Associates www.cedausa.com

1500 South Hwy 52PO Box 483

Chatfield, MN 55923Phone-507.867.3164

Date: March 21, 2016

Loan Applicant: Regan KilbrideAddress: 415 Arkin Street

Red Wing, MN 55066

RE: Program Income Funds for Housing RehabilitationProject #RWH-021

I, Michelle Vrieze, have processed the application for Regan Kilbride's housing rehabproject and have found that she is income eligible. All documents will be forwarded toRandall Hemmerlin. At this time I would request that the Red Wing HRA review andproceed with the approval process for Regan Kilbride.

The property is listed to Regan Kilbride, a single woman. She meets the low to moderateincome guidelines as required to participate in this program, herself and two minor children.She finds it difficult to keep up with the repairs on the home as needed. The home was builtin 1870, and is in need of repairs. Attached is a list of the repairs that the homeowner hasprovided for our review and a photo of the home. In 2012 Habitat for Humanity repaired theretaining wall, installed windows and siding at a 0% loan. 3-Rivers weatherized the homearound the same time. A walk-thru inspection will be conducted by myself, upon approvalof the loan. SHPO and a lead assessment are both required as the home was built in 1870.

The loan request is for $22,000.00. The Program Income funds will be structured asfollows:

Deferred Loan - $22,000, not to be paid back as long as Regain Kilbride retains the propertyfor 10 years.

I believe that all program requirements have been met and that the applicant is incomeeligible. I therefore am requesting that we proceed with this deferred housing loan forRegan Kilbride.

Sincerely,

Michelle Vrieze

Michelle Vrieze

Director of Grants

CEDA

Regan Kilbride415 Arkin Street

Red Wing, MN 55066

List of improvments desired:

1. Dining Room Floor Covering2. Front Sidewalk

3. Back patio4. Outside Basement Entrance Door

5. Electrical - additional outlets in upstairs bedrooms6. Interior Parlor Door

7. Structural - replace beams in crawl space8. Upstairs Bathroom (toilet, vanity & sink, wall and floor covering, electrical, expand

walls outward for additional space that is required).9. Basements Windows (2)10. Living Room Lights11. Kitchen Cabinets & Countertop

Exterior photo's of home are attached.

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