Draft-Minutes are not official until approved by council at the next regular meeting.

City of Effie January 14th, 2008 Minutes for Public Hearing

In attendance: Mayor Matt David, Council Members: Liza Erickson, Lil Black, Bill Hastings, and T.J.Grady See attached for list of community members in attendance.

The hearing was called to order. Scott Zahorik, the Director of Asset/Housing Development for KOOTASCA Community Action was present to talk about the rehabilitation grant the City of Effie has applied for. He began by saying that the city has applied for a grant through the Small Cities Development Program. This grant would be for single family owner occupied rehabilitation. The grant is not for remodeling but for things that need work or are hazardous. Items such as hazardous electrical issues, handrails, smoke alarms and lead paint issues will be addressed.

The financing package will consist of 3 tiers based on income. · The bottom tier, very low income, would be income that is less than 50% of the Itasca County median. People qualifying for fuel assistance would be in this tier. A deferred loan would be available to these home owners up to a maximum of 100% of the rehabilitation costs from SCDP funds with a 10 year term. · The middle tier, low income, would be income that is between 50% and 65% of the Itasca County median. An 80% deferred loan and 20% revolving loan would be available to these home owners with a 10 year term on both. · The top tier, moderate income, would be income that is between 65% and 80% of the Itasca County median. A 60% deferred loan and 40% revolving loan would be available to these home owners with a 10 year term on both.

A maximum amount of $21,500 will be spent per home for a minimum of 18 homes. Once it is confirmed that the city has received the grant, applications will be taken on a first come, first served basis.

Scott went on to say that if there are too many hazards a house may deselect itself but these are extreme cases. All health and safety issues have to be taken care of. In these cases, they try to pool other funding programs to make it work.

It is required that all contractors be licensed and insured.

Some of the questions asked were: · Would there be a lean taken on the property? Yes, the city would hold the lean. · How does this affect the sewer project? The IRRRB gave the city $30,000 less than what the grant was written for. So, if necessary, part of the grant money from DEED would go towards hook-up costs. · When will the city find out if the grant has been awarded? March. Accepting applications from home owners would be the next step. · What is the time period between accepting applications and construction? Applications would be received after March and construction could possibly begin in the fall. 25-30% could be done in 2008 and the rest in 2009. · Would it be possible to get some of the money by July for hook-ups? Yes · This is for houses within the city limits? Yes · Will some home owners not qualify? Yes. Some will have too much yearly income. · How do disabilities factor in? Disabilities do not come into play with this program. · Would landscaping be able to be included for where lines were put in and tanks abated? No

After all questions were addressed, the Public Hearing was adjourned.