Economic Development Authority - Elizabeth Showalter, Community Development Specialist
Title
Title
Loan Origination Contract Renewal
end
Executive Summary
The EDA’s contract with the Center for Energy and Environment is expiring at the end of the year and must be renewed.
Background
The Center for Energy and Environment (CEE) has served as the loan originator for the home improvement loan program since it was created in 1998. As the EDA’s contract with CEE is expiring at the end of year, staff issued a Request for Proposals (RFP) for loan origination services. CEE was the only respondent to the RFP and staff recommends renewal of the contract. They have provided excellent service to borrowers and the EDA.
The contract outlines the fees charged to the EDA for the services provided. The current and new fees are shown in the following table:
|
|
Current |
Proposed |
|
Origination |
$550 |
$750 |
|
Down Payment Origination |
N/A |
$850 |
|
Residential Advisor |
$225 |
$250 |
|
Post Installation Inspection |
$100 |
$125 |
The services provided by CEE are not able to be completed by city staff due to the volume and specialized nature of the work. CEE also administers other loan programs that Blaine residents are eligible for, giving prospective borrowers a greater range of lending options.
Strategic Plan Relationship
Not applicable.
Board/Commission Review
Not applicable.
Financial Impact
The costs are based on the number of loans originated and are paid out of the revolving loan fund which grows based on the interest charged on loans and earnings from the investment of program funds. The increase in administration costs can be met with the existing funds in the account and the income generated.
Public Outreach/Input
Not applicable.
Staff Recommendation
Approve the resolution authorizing the renewal of the loan origination contract.
Attachment List
Center for Energy and Environment Proposal
Body
WHEREAS; Improving the quality of existing housing stock is a goal in the 2040 Comprehensive Plan; and
WHEREAS; The EDA has provided home improvement loans to promote housing maintenance and reinvestment in the housing stock; and
WHEREAS; The Center for Energy and Environment is an established organization with the capability to administer the Home Improvement Loan Program;
NOW THEREFORE, BE IT RESOLVED, that the Blaine Economic Development Authority hereby approves a three-year contract with the Center for Energy and Environment and the President and Executive Director are hereby authorized to execute the contract.
PASSED by the Blaine Economic Development Authority this 6th day of December, 2021.