How To Write A Disaster Fund Disaster Fund

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1 NORTHEAST ECONOMIC DEVELOPMENT, INC. NED, INC. BOARD OF DIRECTORS MEETING WEDNESDAY OCTOBER 29, :00 P.M. Conference Call Locations NENEDD Office, 111 S 1 st St, Norfolk, NE City of Hartington, 124 E Main St, Hartington, NE Scribner Economic Development, 412 Main St, Scribner, NE West Point Chamber of Commerce, 200 Anna Stalp Ave, West Point, NE MINUTES I. Call to Order: The Northeast Economic Development, Inc. (NED, Inc.) Board of Directors meeting was called to order at 7:09 p.m. by NED, Inc. President Nancy Braden. Nancy Braden informed the public about the location of the Open Meetings Act LB 898 and that it is accessible to the public. II. Roll Call: NENEDD Executive Director Thomas L. Higginbotham, Jr. read roll call. Board Members Present: Nancy Braden, NED, Inc. President, City of Wayne (Norfolk) Tina Biteghe Bi Ndong, NED, Inc. Secretary/Treasurer, West Point Chamber of Commerce (West Point) Loren Kucera, NED, Inc. Vice President, Nebraska Business Development Center (NDBC), Wayne (Norfolk) Deb Eggleston, NED, Inc. Board Member, Scriber Improvement and Industrial Corporation (Scribner) John F. Lohr, NED, Inc Board Member, NeighborWorks, Northeast Nebraska (Norfolk) Ron Vonderohe, NED, Inc. Board Member, Northeast Nebraska Community Action Partnership, Pender (Norfolk) Board Members Absent: Nadine Hagedorn, NED, Inc. Board Member, Citizens State Bank, West Point Others Present: BrenDee Reinke, Kruse, Schumacher, Smejkal & Brockhaus, PC (Norfolk) Rob Merrill, NENEDD Chairman, City of Norfolk (Norfolk) Mayor Shannon Stuchlik, NENEDD Vice Chairman, City of Pierce (Norfolk) Gaylord Wilcox, NENEDD Secretary/Treasurer, Howells (Norfolk) Chris Miller, NENEDD Board Member, Don Miller Land Company, Hartington (Hartington) Rich Jablonski, NENEDD Board Member, City of Columbus (Norfolk) Thomas L. Higginbotham, Jr., NENEDD (Norfolk) Tina M. Engelbart, NENEDD (Norfolk) Kristen Rosner, NENEDD (Norfolk) Judy Joy, NENEDD (Norfolk) Jeff Christensen, NENEDD (Norfolk) III. Introduction of Guests: NED, Inc. President Nancy Braden asked everyone attending the meeting to introduce themselves to the group.

2 IV. Secretary s Report: Deb Eggleston made a motion to approve the October, 2014 agenda and to approve the September, 2014 meeting minutes. Tina Biteghe Bi Ndong seconded the motion. AYES: Biteghe Bi Ndong, Braden, Eggleston, and Kucera, Lohr and Vonderohe. NAYS: None. ABSENT: Hagedorn. Motion V. Treasurer s Report: NENEDD Fiscal Officer Kristen Rosner presented the September, 2014 Treasurer s Report. Loren Kucera made a motion to approve the September, 2014 Treasurer s Report as presented. John F. Lohr seconded the motion. AYES: Biteghe Bi Ndong, Braden, VI. VII. Discussion Items A. Audit Presentation - Kruse, Schumacher, Smejkal & Brockhaus, PC BrenDee Reinke presented the Northeast Economic Development, Inc. audit. Board members will have a month to review the audit before it is voted on at the November meeting. Action Items A. Amend Nebraska Affordable Housing Trust Funds Disaster Owner Occupied Housing Rehabilitation Guidelines for Grant # 14-TFDH-069: NENEDD Housing Loan Specialist Judy Joy led discussion. The Nebraska Department of Economic Development recently amended the contract for Nebraska Affordable Housing Trust Fund Disaster Grant 14- TFDH-069 for owner/occupied housing rehabilitation to include the counties of Cedar, Dakota, Dixon, and Wayne. The housing guidelines for the 14-TFDH-069 need to be amended to reflect those changes to include the additional four counties of Cedar, Dakota, Dixon, and Wayne. The following sections of the Nebraska Affordable Housing Trust Fund Disaster Owner-Occupied Housing Rehabilitation Program Guidelines to include the counties of Cedar, Dakota, Dixon, and Wayne. Purpose Paragraph #1 It is the main goal of the Nebraska Affordable Housing Trust Fund (NAHTF) Disaster Owner- Occupied Housing Rehabilitation Program to assist low-to-moderate income persons affected by recent storm disasters of the storms of May-June 2014, in Cedar, Cuming, Dakota, Dixon, Stanton Thurston, and Wayne Counties. Funds are limited to owner-occupied homes in areas declared disaster areas by the Governor s Office. NED, Inc. has received funding from the Nebraska Department of Economic Development (NDED) to assist qualified homeowners with eligible repairs. The NAHP Subsidy will not exceed the maximum per home subsidy limit and will not exceed $10,000 per household. Compliance with Lead Hazard Reduction is waived for this program. Section 2.1 Unit Location Housing units must be located within the disaster target area of Cedar, Cuming, Dakota, Dixon, Stanton, Thurston, and Wayne counties as defined in paragraph one. Section 3.3 Per Unit Rehabilitation Limitation 1. The estimated cost of the rehabilitation will not exceed the maximum per unit NAHP subsidy as found on the NDED website. For this program, the maximum subsidy per unit is $10, The after-rehabilitation value cannot exceed 95% of the median purchase price as found on the NDED website for the counties of Cedar, Cuming, Dakota, Dixon, Stanton, Thurston, and Wayne.

3 Ron Vonderohe made a motion to approve the amendment to the Nebraska Affordable Housing Trust Fund Disaster Owner-Occupied Housing Rehabilitation Program Guidelines to include the counties of Cedar, Dakota, Dixon, and Wayne. Tina Biteghe Bi Ndong seconded the motion. AYES: Biteghe Bi Ndong, Braden, Eggleston, and Kucera, Lohr and Vonderohe. NAYS: None. ABSENT: Hagedorn. Motion B. Owner Occupied Rehabilitation Applicant (OOR) #101175: NENEDD Housing Loan Specialist Judy Joy presented. The house under consideration is deemed not economically feasible for the Housing Rehabilitation Program. Deb Eggleston made a motion to deny applicant # for $37,000 for Owner Occupied Rehabilitation Assistance. Ron Vonderohe seconded the motion. AYES: Biteghe Bi Ndong, Braden, C. Down Payment Assistance (DPA) Client #07234: NENEDD Fiscal Officer Kristen Rosner led discussion. In 2008, the Client was approved for down payment assistance on a home in Columbus. The house was purchased for $107,000 with United States Department of Agriculture Rural Development (USDA-RD) as the primary lender and NED, Inc. providing $20,000 in down payment assistance. The signed promissory loan stated that the $20,000 would be paid back over 60 months at a rate of $ per month beginning thirty days after the primary mortgage has been paid in full. DPA loans are 0% interest. The client married in June, The husband has a home also in Columbus which is now their primary residence. The client has received an offer of $100,000 on her home. After closing costs and paying off the primary mortgage and the NED, Inc. DPA loan, approximately $10,732 will remain to be paid on the NED, Inc. DPA loan. NENEDD staff has reviewed the information provided by the client and recommends denying loan forgiveness due to hardship as requested by the client, instead staff recommends issuing a new promissory note. Loren Kucera made a motion to approve a new promissory note to be issued with a principal amount of approximately $10,732, payable over 60 months at a rate of $178.87/month, 0% interest. John F. Lohr seconded the motion. AYES: Biteghe Bi Ndong, Braden, Eggleston, and Kucera, Lohr and Vonderohe. NAYS: None. ABSENT: Hagedorn. Motion D. Business Revolving Loan Fund (RLF) Loan Request Jennifer & Chadric Claussen, d/b/a Swans Apparel Wayne: NENEDD Business Loan Specialist Jeff Christensen presented. State Nebraska Bank & Trust in Wayne will provide a loan of up to $75,000 for this project. The bank s loan of will be amortized over 15 years at an interest rate of 6.00% (fixed). The bank will secure its loan with a first deed of trust on the business real estate and will require a Small Business Administration (SBA) Guaranty, 1 st lien on all chattel property, FFE, and general intangibles. NED, INC. will lend $52,500 for the purchase of the same real estate and business personal property. The $52,500 NED, INC. loan will have a term of 15 years at an interest rate of 5.00% (fixed). NED, INC. will have a 2 nd Deed of Trust on the business real estate being purchased and a Universal Commercial Code (UCC) lien on the business personal property subordinate to the bank on Jennifer & Chadric Claussen, d/b/a Swans Apparel. NED, INC. will require life insurance assignment from Jennifer and Chadric for the amount of the loan for the life of the loan. NED, INC. will also file a Deed of Trust on their personal residence as collateral for this loan. The City of Wayne will lend $52,500 for this project. These funds will be sub-granted to NED, Inc., as a Non-profit Development Organization (NDO), who will in turn lend the $52,500 to Jennifer & Chadric Claussen, d/b/a Swans Apparel for this project. The $52,500 NDO loan will also have a 15 year term at 5.00%

4 (fixed). Payments will be made to NED, Inc., thus resulting in a $105,000 loan with NED, Inc. This is the process approved by the Nebraska Department of Economic Development (DED) to de-federalize CDBG funds in our local communities. Other funds include $47,530 of Wayne s LB840 funds which will be forgivable at 0.00% interest, and $10,000 Wayne Area Economic Development, Inc. (WAEDI) funds with a 10 year term at 0.00% interest. The Northeast Revolving Loan Fund (RLF) committee was presented information on credit scores, net worth, collateral, and financial information as part of the loan summary discussion and unanimously recommends this loan for approval. Loren Kucera made a motion to approve a NED, Inc. loan of $52,500 for the purchase of the business real estate and business property and accept the sub-granted $52,500 CDBG funds from the City of Wayne utilizing the Non- Profit Development Organization (NDO) process. The total of $105,000 will be loaned to Jennifer & Chadric Claussen, d/b/a Swans Apparel for the purchase of the business real estate and property as presented and recommended by NENEDD staff and the Northeast RLF Committee. Ron Vonderohe seconded the motion. AYES: Biteghe Bi Ndong, Braden, E. Business Revolving Loan Fund Request (RLF) Danielle Thober, d/b/a The Boot Rack Albion: NENEDD Business Loan Specialist Jeff Christensen led discussion. The Petersburg State Bank in Petersburg will provide a loan of up to $105,620 for this project. The bank s loan of will be amortized over 20 years at an interest rate of 4.50% (variable/fixed for 7 years). They will also make an operating loan commitment of no more than $60,000 with an initial rate of 5.50% with interest to be paid monthly. The bank will secure its loan with a first position lien on the real property, business inventory, furniture, fixtures, accounts receivable, and all other business chattels and autos being purchased. NED, Inc. will lend $100,000 for the purchase of the same real estate and business personal property excluding the vehicles. The $100,000 loan will have a term of 20 years at an interest rate of 5.50% (fixed). NED, Inc. will have a subordinate Deed of Trust on the real estate being purchased and a Universal Commercial Code (UCC) lien on the business personal property of Danielle Thober, d/b/a Boot Rack. NED, Inc. will require life insurance assignment from Danielle for the amount of the loan for the life of the loan. BCDA and AEDC each will lend $29,452 for 10 years at 4.00% (fixed). The Northeast Revolving Loan Fund (RLF) committee was presented information on credit scores, net worth, collateral, and financial information as part of the loan summary discussion and unanimously recommends this loan for approval. Loren Kucera made a motion to approve a NED, Inc. loan of $100,000 to Danielle Thorber, d/b/a The Boot Rack as presented and recommended by NENEDD staff and the Northeast RLF Committee. Ron Vonderohe seconded the motion. AYES: Biteghe Bi Ndong, Braden, Eggleston, and Kucera, Lohr and Vonderohe. NAYS: None. ABSENT: Hagedorn. Motion F. Quarterly Loan Review: NENEDD Fiscal Officer Kristen Rosner presented the loan report. Down Payment Assistance Client #03463filed bankruptcy and NED, Inc. received a Discharge of Debtors notice. There was not any other collateral available except a life insurance policy. The loan balance remaining is $6, Tina Biteghe Bi Ndong made a motion to approve the write-off of DPA Loan #03463 in the amount of $6, John F. Lohr seconded the motion. AYES: Biteghe Bi Ndong, Braden, Eggleston, and Kucera, Lohr and Vonderohe. NAYS: None. ABSENT: Hagedorn. Motion G. Board Meeting Dates: NENEDD Executive Director Thomas L. Higginbotham, Jr. presented. Both the Northeast Nebraska Economic Development District (NENEDD) and Northeast Economic Development, Inc. (NED, Inc.) board members were surveyed in September. After the survey results were analyzed, it was decided that monthly meetings

5 would be held in Norfolk and by conference call. Ron Vonderohe made a motion to approve the revised board meeting schedule for the remaining fiscal year. Loren Kucera seconded the motion. AYES: Biteghe Bi Ndong, Braden, Eggleston, and Kucera, Lohr and Vonderohe. NAYS: None. ABSENT: Hagedorn. Motion VIII. IX. President/Board Comments: None. Next Meeting Date: The Northeast Economic Development, Inc. Board of Directors will meet on Wednesday, December 3, The meeting will be held by conference call and will start at 7:00 p.m. Locations for the conference call will be publicized November 17, Due to the Christmas holiday, the December board meeting has been moved to January 7, X. Adjournment: Loren Kucera made a motion to adjourn them meeting. Tina Biteghe Bi Ndong seconded the motion. AYES: Biteghe Bi Ndong, Braden, Eggleston, and Kucera, Lohr and Vonderohe. NAYS: None. ABSENT: Hagedorn. Motion NED, Inc. President Nancy Braden adjourned the meeting at 7:56 p.m.