The President and Board of Directors reserve the right to adjourn into closed session as per Section of the Nebraska Open Meetings Act.

Transcription

1 NORTHEAST ECONOMIC DEVELOPMENT, INC. NED, INC. BOARD OF DIRECTORS MEETING WEDNESDAY, SEPTEMBER 24, :00 P.M. Uptown Brewery, th St, Stanton, Nebraska The President and Board of Directors reserve the right to adjourn into closed session as per Section of the Nebraska Open Meetings Act. AGENDA I. Call to Order: Inform the public about the location of the Open Meetings Act and that it is accessible to the public (LB 898). II. III. IV. Roll Call Introduction of Guests Secretary s Report A. Approval of September, 2014 Agenda & August, 2014 Meeting Minutes (as mailed & posted) V. Treasurer s Report A. August, 2014 Treasurer s Report VI. VII. Discussion Items - None Action Items A. Down Payment Assistance (DPA) Client #06157 Loan Subordination Request B. Authorize Northeast Economic Development, Inc. (NED, Inc.) President to Sign Sherwood Foundation Application VIII. IX. President/Board Comments Next Meeting Date: The next Northeast Economic Development, Inc Board of Directors meeting will be at 7:00 p.m. on Wednesday, October 29, 2014 by conference call. The call locations will be publicized October 15, Due to the Thanksgiving and Christmas holidays, the board meetings for those months have been moved. The November Board meetings will be held December 3, The December Board meetings will be held on January 7, X. Adjournment Braden Kucera Biteghe Bi Ndong Eggleston Vonderohe Hagedorn Lohr

2 NED, Inc Board Object: To approve the September, 2014 meeting agenda and the August, 2014 meeting minutes. Contact Person: Thomas L. Higginbotham, Jr. / Tina M. Engelbart For: Action Explanation: The September, 2014 agenda has been posted. The minutes from the August, 2014 meeting were mailed and posted. Motion: To approve the September, 2014 meeting agenda and the August, 2014 board meeting minutes. Braden Kucera Biteghe Bi Ndong Eggleston Vonderohe Hagedorn Lohr Secretary s Report Item IV. A

3 NED, Inc Board Agenda Object: Approval of August, 2014 Treasurer s Report Contact Person: Kristen Rosner, Fiscal Officer For: Action Background: Northeast Economic Development, Inc. s (NED, Inc.) August, 2014 Statement of Financial Position and the Statement of Revenues and Expenditures that reflect the monthly Budget, Actual and Budget Variance. Also stated is the Fiscal Year 2015 Budget for the nonaccrual accounts, July 1, 2014 through June 30, 2015 Actual, Budget Variance so far this fiscal year and Percent of the fiscal year 2015 Budget remaining. Explanation: Additional Information: Business Loan Principal Received $ 28, Housing Rehab Principal Received $ 18, Down Payment Assistance (DPA) Principal Received $ 20, New Construction Principal Received $ - Business Loan Disbursements $ 267, Housing Rehab Loan Disbursements $ - Down Payment Assistance (DPA) Loan Disbursements $ - New Construction Loan Disbursement $ - Housing Rehab Loan Payoffs: Client #860111: $11, Down Payment Assistance Loan Payoffs: Client # 01208: $20,000 Business Loan Disbursement: NDO Contributions disbursed as loans to Brehmer Manufacturing, Lyons and RC Holdings, West Point PKAS, LLC Motion: To approve the August, 2014 Treasurer s Report as presented. Braden Kucera Biteghe Bi Ndong Eggleston Vonderohe Hagedorn Lohr Treasurer s Report Item V. A

4 NED, Inc. Statement of Financial Position As of 08/31/2014 Period Balance Assets General Cash NDO-ED Funds Cash in Bank-SSB , Business RLF Cash IRP Loan Fund-BankFirst , RLF-BankFirst , IRP Loan Loss Reserve-BankFirst , RBEG Loans-BankFirst , NDO Loan Fund-Security National Bank RMAP Loan Fund-BankFirst # , # Wells Fargo-NEF Loan Loss Reserve 12, NEF CD IRP #2 Loan Loss Reserve 45, IRP #2 Loan Fund-Bank First # , RMAP LLR Fund-BankFirst # , NDO Loan Fund-Security National Bank , NDO-(Frmt) First Nat Bank # , NE Micro Loan-BankFirst # , Housing Cash Savings- DPA Payoffs-EVB , Rehab Payments-BankFirst , New Construction Savings-SSB , CD # Midwest Bank 106, CD # Midwest Bank 106, Housing Rehab Money Mrkt-Homestead Bank # , Pinnacle Bank - Savings 229, # Wells Fargo Bank NA 145, New Construction-EVB , Receivables Grants Receivable 1, Accounts Receivable Business RLF Notes Receivable Business RLF Notes Receivable 100, Business IRP Notes Receivable 71, IRP #2 Notes Receivable 780, NDO Business Notes Receivables 1,534, RMAP Business Notes Receivable 232, NE Micro Loan Receivable 280, Housing Notes Receivable DPA Notes Receivable 2,178, NC Subsidy Notes Receivable 54, Regional Rehab Notes Receivable 1,636, Fixed Assets Furniture and Equipment 27, Accumulated Depreciation (27,336.96) Allowance for Uncollectibles Allowance for uncollectable losses (3,074,030.64) Total Assets 6,380, Liabilities Accounts Payable Accounts Payable 15, Accounts Payable-Other 2, Miscellaneous (324.83) Treasurer's Report Item V. A

5 NED, Inc. Statement of Financial Position As of 08/31/2014 Period Balance Notes Payable RMAP Loan Payable 472, NEF Loan Payable 250, IRP Loan Payable 225, IRP #2 Loan Payable 748, Deferred Revenue Deferred Revenue 14, Total Liabilities 1,728, Net Assets Other 4,651, Total Net Assets 4,651, Total Net Assets and Liabilities 6,380, Treasurer's Report Item V. A

6 Percent Total Budget Remaining Treasurer's Report Item V. A NED, Inc. Statement of Revenues and Expenditures - Unposted Transactions Included In Report From 08/01/2014 Through 08/31/2014 Period Budget Period Actual Period Budget Variance Total Budget - Original Year Actual Total Budget Variance Revenues 402 Rehab Reimbursement Exp (4.17) (50.00) (100.00)% 405 Bad Debt Recovery 3, , , , , (27,000.00) (57.45)% 421 Housing Admin Rev 1, (1,000.00) 12, (12,000.00) (100.00)% 425 Lead Based Paint Inspection (187.50) 2, (2,250.00) (100.00)% 427 General Admin Rev (833.33) 10, (10,000.00) (100.00)% 428 Down Payment Assistance Loan Processing Fee (159.33) 1, (1,912.00) (100.00)% 439 CDBG ED NDO RLF Contributions 442 Microenterprise Lending Program Contributions 41, , , , , (44,903.48) (8.98)% 4, (4,358.33) 52, (52,300.00) (100.00)% 443 USDA RMAP TA Funds 1, (1,583.33) 19, , (15,609.00) (82.15)% 444 Business Loan Closing (250.00) 3, (3,000.00) (100.00)% Revenue 447 Housing Rehab Contributions 448 Acquisiton of Housing/Vacant Land 8, , (5,448.83) 100, , (90,534.00) (90.53)% 8, (8,333.33) 100, (100,000.00) (100.00)% 449 New Construction Subsidy 2, (2,083.33) 25, (25,000.00) (100.00)% 451 Business Loan Interest 5, , , , (57,676.14) (82.39)% 452 Loan Late Fees (335.38) (55.90)% 453 Business Loan Processing Fee (500.00) 6, (6,000.00) (100.00)% 454 Annual Servicing Fees (221.29) 7, (6,609.07) (94.42)% 471 HO Rehab Interest 1, (260.86) 15, , (13,069.56) (87.13)% 490 Interest Income , , (4,786.56) (79.78)% 492 Contributions , , , , (9,221.24) (78.15)% Total Revenues 82, , , , , (482,256.43) (48.77)% Expenditures 518 Down Payment Assistance Loan Exp % 523 Office Supplies % 538 Bank Note Payoff %

7 Percent Total Budget Remaining Treasurer's Report Item V. A NED, Inc. Statement of Revenues and Expenditures - Unposted Transactions Included In Report From 08/01/2014 Through 08/31/2014 Period Budget Period Actual Period Budget Variance Total Budget - Original Year Actual Total Budget Variance 539 Lead Testing Exp (500.00) (500.00) 0.00% 543 Bank Fees (6.67) % 546 Lead Inspection Exp , , % 548 Loan Closing Expense , , % 549 Housing Admin 1, , , , % 553 General Admin , , % 557 Memberships % 560 Legal Services (263.77) 1, % 565 Depreciation Expense , , % 573 Loan Interest Expense 1, , , , , % 574 NENEDD Management Exp 21, , , , , % 580 Loans Written Off 10, , , , % 583 NC Subsidy Loans Forgiven 6, , , , % 584 Rehab Loans Forgiven 10, , , , , % 589 Invest Nebraska NDO RLF Contributions 9, , , , , , % 592 Housing Program Income Administration Expense , (1,140.00) 0.00% 593 Contributions-NENEDD (150.00) 0.00% Total Expenditures 61, , , , , , % Total Revenues Over (Under) Expenditures 21, , , , , , %

8 NED, Inc. Board Agenda Object: Down Payment Assistance (DPA) Client # Contact Person: Kristen Rosner, Fiscal Officer For: Action Explanation: Subordination Request Loan #06157 Down Payment Assistance 0% Interest Loan Payable at transfer of title Loan Amount $15, Loan Date 7/17/2007 Principal Remaining $15, Situation Balance Wells Fargo Home Mortgage-$354.32/mo payment, 3.875% 1 st Lien $73, fixed interest, 30 years NED, Inc-due upon transfer of title, 0% interest 2 nd Lien $15, Total $74, Proposed Columbus United Federal Credit Union-$476.28/mo payment, 4.50% fixed interest, 30 years 1 st Lien $94, NED, Inc-due upon transfer of title, 0% interest 2 nd Lien $15, Total $109, Loan to Value Calculation Appraisal by Givens Bray Appraisal Center, LLC on 9/8/2014 $122,500 Total Loan $109,600 Loan to Value Percent 89% Housing Expense to Gross Monthly Income Total gross monthly income $3, $2, Mortgage Principle and Interest only $ $ Taxes $ $ Insurance Hazard $35.92 $62.50 Total Housing Expense $ $ Housing Expense to Gross Monthly Income Ratio 14.43% 23% Maximum ratio is 25% to 28% Notes: The clients constructed a new detached garage and concrete driveway. Funding came from the client s parents along with their own savings. Clients wish to refinance their existing mortgage to reimburse the parents for construction costs. Prior appraisal in 2013 was $107,000. The additional cash out of $20,006 includes $16, for construction costs and $3, for loan origination and settlement costs. The cost to the client would be $43,920 over 30 years. This is the third subordination request from the client. The cash out has always been for home improvement and loan origination and settlement costs. According to the mortgage processor, the parents wish to be paid back instead of having a loan with their child. Motion: To deny the subordination request for Down Payment Assistance Loan # Braden Kucera Biteghe Bi Ndong Eggleston Vonderohe Hagedorn Lohr Action Item VII. A

9 NED, Inc Board Object: To authorize President to sign an application to the Sherwood Foundation for The Community Catalyst Experiment program. Contact Person: Thomas L. Higginbotham, Jr. / Tina M. Engelbart For: Action Explanation: NED, Inc. was contacted by Matthew J. Rezac Director of Rural Community Partnerships at the Sherwood foundation to act as the fiscal agent for one of their programs. NED, Inc. would apply for these funds, which could be anywhere from $50,000 to $75,000 and disburse them to the group that will carry out the activities associated to the specific project. There is 7% administration fee (7% of the grant amount) built into the program to pay the fiscal agent for the time and expense. The Sherwood Foundation would also be responsible for putting the application together along with the group they are going to provide these funds too. This is very similar to what the Northeast Nebraska Economic Development District (NENEDD) has been doing for the Economic Development Administration s (EDA) peer review program for over 15 years. Motion: To authorize the President to sign an application to the Sherwood Foundation for The Community Catalyst Experiment program. Braden Kucera Biteghe Bi Ndong Eggleston Vonderohe Hagedorn Lohr Action Item VII. B