Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Rehab Programs topic
No spam. Unsubscribe anytime.
EDA continues Gate City home-improvement referral program amid permit and tracking concerns
Summary
The EDA agreed to continue referring applicants to a Gate City Home Improvement loan program but asked staff to pursue better permit and reporting coordination after finding only two permit pulls from 17 applications last year.
The East Grand Forks Economic Development Authority voted Feb. 26 to continue participation with the Gate City Home Improvement Program, a loan-referral program in which Gate City earmarked funds and the city provides application and permitting support.
Gate City has earmarked $2,000,000 for home-improvement loans statewide; in East Grand Forks staff reported $53,500 in commitments last year and that 17 applicant forms were submitted from the city, while only two applicants ultimately pulled permits. Staff described challenges tracking whether loans led to permitted work and whether work was completed and permits closed.
Under the model described to the board, residents requesting assistance complete an application with city staff, the city forwards the application to Gate City, and Gate City evaluates loan eligibility. The city does not receive the loan funds directly; Gate City makes lending decisions and manages loan confidentiality.
Board members expressed two recurring concerns: (1) applicants who appear to receive loans but do not pull required permits and (2) limited information flow from Gate City back to the city on whether a loan transaction completed. Staff said the program can produce inconsistent results if borrowers do not follow city permitting rules, and that in at least one prior year people obtained loans for work (for example, a garage) that was not permitted.
The EDA voted to continue offering the program locally but asked staff to follow up with Gate City to seek better coordination, including a potential applicant release that would let Gate City confirm to city staff whether a loan closed and whether permits were pulled. Board members and staff noted the city’s inspectors now do more active fieldwork and will catch some unpermitted work, which staff said should reduce the risk of work proceeding without a permit.
Members also discussed the program’s role as a referral and promotional partnership rather than a city-funded loan program. The board asked staff to share concerns with Gate City and to report back if Gate City will modify its application or release language to allow the city limited status updates (not confidential loan details) that would confirm whether a loan closed and whether permit activity followed.
