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HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 02-20-1992PLYMOUTH HRA REPORTS MEETING OF FEBRUARY 20, 1992 J. MEND CITY OF PLV OUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MINNESOTA 55447 DATE: February 13, 1992 for Housing and Redevelopment Authority Meeting of February 20, 1992 TO: Charles E.'Dillerud, Executive Director FROM: Milt Dale, Housing SpecialisL/4.0— SUBJECT: NOMINATION AND APPOINTMENT OF OFFICERS According to the HRA bylaws, the nomination and appointment of officers normally takes placeat the time of the annual meeting held in January. each year. However, since .the Plymouth City Council has not selected a Camnissioner yet, the HRA could nominate and elect officers c.7w or the item could be deferred (postponed) until a later meeting which would include the new member or Commissioner Ludovissie should he be. reappointed. Housing Authority bylaws require that all officers be approved annually. Currently, the offices for the Housing and Redevelopment Authority are held bythefollowing: Chairman . . . . . . . . . Commissioner David Crain Vice -Chairman . . . . . . (open) Secretary/Treasurer . . . Commissioner Stephen Ludovissie hra/md/app.1-30:0) H1 MEND CITY OF PLYMOUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MINNESOTA 55447 DATE: February 14, 1992 TO: Housing an ev opment Authority Commissioners FROM: Charles E i d, Executive Director SUBJECT: FINANCIAL LYSIS OF SENIOR HOUSING ALTERNATIVES From my notes it appears the HRA Commissioners requested staff address two areas for further consideration by the Commissioners at their February 20, 1992 meeting. Attached to this memorandum in response to the initial HRA request, as I understand it, arethree spreadsheets that I. have prepared that are basically a mirror image of the work done by Ehlers and Associates for the HRA in 1991. The three spreadsheets address project development cost items; project rental income; and, a overall financial pro -forma. I have made some minor modifications to the Ehlers materials to accommodate our spreadsheet formats and to, perhaps, better focus on the issue of alternative approaches that the HRA is now considering. The key feature of this work is the ability for us to change virtually any of the variables within any of the spreadsheets to reflect a different construction or rental scenario which will result in the spreadsheet recalculating all totals and formula to correspond. For example, an increase in the rents proposed by my second spreadsheet will result in changes to tTie income portions of the pro - forma and to the net operating cash surplus (loss) and required subsidy which is the effective bottom line of the pro -forma. Any time a rent variable is changed, the entire spreadsheet recalculates. In this manner, we can, by using a "split screen" follow the bottom ling impact of any changes °n the project scenario that we may wish to "try" on either the expense or revenue side. The print outs that are attached tc this memorandum reflect variables that are set virtually identical to those presented by Ehlers and Associates for its 100 unit/G.O. taxable scenario. As you can see, the "operating cash loss" in the ebrly yearssTs—Urtually equal to the anticipated HRA levy revenues. This was,of course, intentional - in fact it was probably determined using a similar spreadsheet procedure as I have done here. I intend to have the computer overhead projector set up on February 20th with this spreadsheet installed in a "split screen" mode. We can then watch the bottom line impacts of any revenue/cost scenarios Commissioners may wish to try". I would encourage you to review the various variables that are assumed here (anything from project size to cost per square foot to interest rates assumed or anything else that appears to be ..a variable) and develop some potential scenarios that you would have interest in. seeing calculated as to the bottom line impact on the required HRA levy. The NRA has also asked us to provide some manner of comparative analysis amongst the concepts that have been presented to us and tha'original Ehlers financial proposal. Since the HRA maeting I have received information from two of the firms that were among the four that attended our last meeting; and, I have received an indication of interest from another firm, but no financial information at this point. As of Friday, February 14, 1942 I have not had the opportuni•.j to complete my comparative analysis of the respective proposals, but I expect to have that available by the February 20, 1992 meeting date - and hopefully, somewhat before that day for delivery to the HRA Commissioners. Attachments: 1. Senior Citizen Financial Spreadsheet 2. LaSalle Corporation Coammunication hra/cd/analysis) n SENIOR FISCAL A11ALTSI8 - PROJECT DMLOMEM ASSWWTIONS As8mTION8: Interest During Construction Rate 6.881 Investment During construction Rate Finance Discount Rate 1.800 Soam TOTAL TOTAL UNIT PROJECT UNIT HARD OOIISTRUCTION: NUMBER AREA COST COST COST One (1) EDRM Units 50 650 846 01,495,000 029,900 Two (2) BDRM Units 50 915 046 02,104,500 042,090 Common/Service Areas 31300 846 01,439,800 014,398 Basement Parking 50 313 030 0469,500 09,390 rurniture/Decorate 095,000 0950 TOTAL. 85,603,000 056,038 LAND: Site Value 80. 00 00 PROMBSIONAL SERVICES / GOVERNMENT TEES: Boil Testing 020,000 0200 SAC/MC/PARR roes 0242,500 02,425 Architect/Engineer 0219,000 82,190 Legal 030,000 8300 Miscellanioue 65,000 850 TOTAL 0516,500 05,165 ACCOUNTING/TITLE, SERVICING: Title, Recording 07,500 875 Accounting 810,000 8100 TOTAL 817,500 8175 TOTAL GROSS INTERIM INTEREST: 10 montes 66.8750 0379,353 Investment Earnings During Construction 890,409) CAPITALISED INTEREST: 8288,944 ` 82,889 rINANCING roars: financial Advisor 834,000 8340 Issuance Espouses 025,000 0250 Discount (1.80) 0123,390 01,234 TOTAL 8182,390 01,824 MARKETING Expp318E8 875,000 0750 CONTINGE37CY: 0150,000 81,500 TOTAL DEVSLOPNNT COSTS: 86,034,134 068,341 BOIOR PZWM ANALTBIB - RMML 250= AgSMgTI0N8 Nasbsr of unit Monthly units Sypa Rant Total 25 1 bad wry low 4900 7,300 25 2 bad very low 4500 412,500 23 1 bed low 4373 49,975 25 2 bad low 4573 414,373 Monthly Unit Rental 443,750 0226R INCOM PARKING (1/2 STALL/ONIT) 30 spaces 9 435 per space 41,750 TmAL mrmy nK=m 45,500 TOTAL AM= INCCSE 4546,000 ANIOM FISCAL ARALTSI5 - .'-RD FOIM11 JIMULL INCREASE IN MESSES 6.006 ASSUMED ANNUAL DEBT SERVICE MTB 8.656 JORIA:. RENT INCREf,58 6.006 ASSUMED INTEREST ON CASH BALANCES 5.006 3SU ED VACANCY RATE 6.006 IMP TERN ITBARS) 2S Teat 1 Tear 2 Pear 3 Year 4 Tear 5 Tear 6 Tear 7 Teat 6 Tear 9 Tear 10 Tear 11 cogs Annual Income 566,000 567,860 590,556 616,176 638,763 666,292 690,864 718,699 3767,239 3177,128 sea Vacancy 32,760 34,070 35,433 36,651 36,325 339,858 S61,452 43,110 44,834 46,628 ffective Gross SO 513,240 533,170 555,120 577,325 600,418 624,435 649,412 675,389 702,404 730,501 ap-ses: AMain./Ngma./Aevett. SO 48,000 549,920 551,917 53,993 556,IS3 58,399 560,735 63,165 65,691 568,319 Operations 374,600 77,564 580,687 83,915 87,271 390,762 94,393 98,169 102,095 106,179 Repairs/Maintenance 21,300 22,152 23,038 23,960 324.918 525,915 26,951 20,029 29,151 30,317 Insurance 317,750 10,460 19,198 519,966 20,765 21,596 22,459 23,358 24,292 25,264 Toa Payment 21,932 522,009 523,722 24,671 25,637 26,684 27,751 26,861 30,015 Miscellanious 9,600 9,984 10,363 10,799 11,231 11,660 12,14? 12,633 13,138 13,664 otaf Espouses - SO 3171,250 200,032 208,033 216,355 225,009 234,009 243,370 253,104 263,228 273,758 6(46 annual increase) ET OPERATING INCOME 50 341,990 333,738 347,087 5360.971 5375,409 390,426 406,043 5422,285 439,176 5456,743 eft Service s0 687,320 5687,320 607,320 687,320 487,320 687,320 687,320 667,320 687,320 5687,320 ask Surplus (10991 o 5345,330) 15353,5821 5740,2331 5326,3491 I3:11,9101 5296,0941 5281,2771 15265,0351 5248,1441 230,577) eplacenent Regervee 30 15,397 16,013 16,654 17,320 61.,013 18,733 19,402 20,262 21,072 27,915 3.006 of Effective Gross Income) IPERATING CASH SURPLUS (Less) SO 3360,727) 15369,5951 15356,8861 5343,6691 13329,9231 5315,6271 1$300,7591 1S28S,2971 1$269,2161 5252,492) ND REpUIED SUBSIDT i mlative Cask Surplus 7Loa9) 30 43360,7271 13730,3221 151,087,2001 431,430,0771 131,760,8001 1$2.076,4271 2,377,186) 182,662,4631 132,931,6991 53,184,1911 atereat m Cask Surplus so SO 50 30 50 0 60 60 00 0 50 otal Cumulative Cask Surplus so 3360,7271 13730,322) 151,087,2081 151,430,0771 131.760,0001 132.076,4271 32,377,186) 132,662,4831 152,931,6991 133,184,1911 January 91, 1992 Mr. MR Dale Housing - Plymouth MRA 9400 Plymouth Boulevard Plymouth, MN 55447 Dear Mr. Dale: FEB I fees CITY OF PLYMOUTH omwi motvttanwotrt: Thank you for discussing the senior housing options being considered by the City of Plymouth. As I mentioned to you in our telephone conversation. we have been Much In a variety of senior housing developments throughout the United States. Locally, we developed Nokomis Square Cooperative and Bremer Way Condominiums which were epsdfically designed for seniors. We were also part of the development team for the Ednboreugh project in Edina and designed the Internal subsidy program that exists in that. project. Iw endose i our company brochure. After your review. 0 you have any questions or need additional inlonnation, please dont hesitete to contact me. I'm hopeful we will have an opportunity to meet with you to further discuss any possibilities of our Involvement In your program. sincere r W. Isi President TWUbe end. 001 imJ B6W D6. 00"O-- ftft.wo am= ov'1./ let axrsM PAT 8124"4LU THE ADJACENT DOCUMENT WAS SUPPLIED BY AGENCY NAMED BELOW. DURING THE REGULAR COURSE OF SIT INKSc Tn ar err scan nv Ana irQ .....,.Don in we-.--w 5 - NEW CITY OF PLYMOIITN 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MINNESOTA 55447 DATE: February 13, 1992 For Housing and Redevelopment Authority MeetingofFebruary20, 1992 TO: Charles E. Dillerud, Executive Director FROM: Milt Dale, Housing Specialist SUBJECT: ANNUAL CONTRIBUTIONS CONTRACT FOR SECTION 8 PROGRAM ACTION REQUESTED: Approval and signatures required for the HousingAuthoritytocontinuetotheSection8. Program at its current level of 87 certificates through October 11, 1993. BACKGROUND: On February 10; 1992 we received four counterparts of the proposed Annual Contributions Contract to extend our Program's funding through October 11, 1993. Our current funding cycle is scheduled to end on June 30, 1992. The last extension to our Annual Contributions Contract was signed in the summer of 1991 which extended the Program funding for one year. The ending date indicated in the HUD letter is based on the HUD fundingcycleforSection8Programs. This is a 15 year cycle. The next 15 year cycle or term comes due on October 11, 1993. CONCLUSIONS AND RECON ENDATIONS: Enclosed is a copy of the proposed annual Contributions Contract and theletterfromHUD. I recaonend that the Housing Authority approve this AnnualContributionsContractNumberC-4070 E and direct the chairman to execute the contract. ATTACIBENTS: 1. Resolution 92- 2. Letter from Steven•Gronwald of HUD dated 2/6/92 3. Copy of Annual Contributions Contract with Exhibits 1 and 2 4. Consolidated Annual Contributions Contract hra/md/acc) HRA RESOLUTION 92 - RESOLUTION AUTHORIZING EXECUTION OF ANNUAL CONTRIBUTIONS CONTRACT WHEREAS, the Housing and Redevelopment Authority of Plymouth, Minnesota herein called the PHA') proposes to enter into an Annual Contributions Contract (herein called the "Contract°) with the United States of America herein called the "Government°). NOW, THEREFORE, BE IT resolved by the PHA as follows: Section 1. The Contract, substantially in the form of the contract hereto attached and marked "Exhibit AN, is hereby approved and accepted both as to form and substance and the Chairman is hereby, authorized and directed to execute said Contract in triplicate on behalf of the Local Authority, and the Secretary is hereby authorized and directed to impress and attest the official seal of the Local Authority on each such counterpart and to forward said executed counterparts, or any of them, to the Government together with such other documents evidencing the approval and authorizing the execution thereof as may be required by the Government. Section 2. The Executive Director is hereby authorized to file with the Government from time to time, as monies are required, requisitions together with the necessary supporting documents requesting advances to be made on account of the contribution provided in the Contract. Section 3. This Resolution shall take effect immediately. Adopted by the Housing and Redevelopment Authority on February 20, 1992. res/hra/acc) 4 r+Yi O OrM M M IIII s/ IAMs O M/MI 161. ahhlO o.IMwsY aoshhmhrhaamt e b uwhh.r.r. awuu. s>;fo1d1M Fd=a y 6, 1992 Mr. James Willis Executive Director Housimig and hit AuthorityofPlymmt 340C Plymnath Hhxnlevard •-' ! Plymouth,55441 Dear Mt. Idllist S087 M Section 6 Existing Hosing Certificate Program Ob have enclosed four counterparts of the pa+opoeed AMMI Contributions Contract No. 0-4070E and supporting documents for your Section S Existing Housing Certificate Program, together with a supply of blank fomne. There is also included a sheat of instructions regarding execution and return of the documents. The purpose of this new Part I is to now Project No. M46 -E170-001 from Edhibit I to Exhibit II and to extend the tarn of the remaining projects listed an Endsiiri.t I to October 11, 1993. Also enclosed is a revised Part Ii for your retention. If you have any questions regarding the execution and return of the documents, please call Al Chandler at (612) 370-3011. Very sincerely yours, u L'anagez ACC Part I Number: C-40708 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SECTION 8 EXISTING K.){ , • . y:.. :. I`00 #K00"VVAN _ 0:1 60 1.1 DEFINITIONS. A. Ate.. As used in Part I of this MCC, •ACC• means the Annual Contributions Contract for each project. As used in Part II of this CAM, •ACC means the CACC. B. Budget Authority_ The maximum aggregate amount which may be paid by HUD for each project in the Program over the duration of the CACC. Budget Authority is reserved by HUD from amounts authorized and appropriated by theCongress. (Exhibit ii lists budget authority for projects funded.with amounts appropriated in Federal Fiscal Year 1988 and later years.) C. CACI_ Consolidated Annual Contributions Contract. D. Contract Authority_ The amount of contract authorityforeachprojectislistedinExhibitIorExhibitII of this CACC Part I (subject to reduction in accordance with section 1.4.D. and section 2.3 of this CACC). E. -Cost Amendment_ An amendment to the CACC which provides additional contract or budget authority to cover increased Program Expenditures to maintain the Program at the number of units originally approved byHUD. F. Fiscal Year. The PHA Fiscal Year. G. MEL U.S. Department of Housing and Urban Development. H. Maxim= Annual Contr4bhnt n Comm4tment Seb !lection 1.4,C.i.b. of this CACC. ACC Part I: Page i of 6 pages HUD 52520 B (August 1988) I. pJUL Public Housing Agency. J. PPMgram. The PRA's Housing Certificate Program under the CACC. R. Program Receipt Amounts paid by HOD to the PRA for the Housing Certificate Program, and any other amounts received by the PRA in connection with the Program. L•Pragram NUenditures. Amounts which may be charged against Program Receipts in accordance with the CACC and HOD requirements. N. project- A funding increment for the Program. (The project may be for additional unite or for a cost amendment.) u 1. List of PrQjen Iahe Projects in the Program are listed in Exhibit I and Exhibit II of this CACC Part 1. 2. Exhibit t- Exhibit I lists projects funded with amounts appropriated before Federal Fiscal Year 1988. 3. Exhibit =_- Exhibit II lists projects funded with amounts appropriated in Federal Fiscal Year 1988 and later years. B. Number of Unite ft number of bedre9MRL..TO the maximum extent feasible, the PER shall enter into contracts for housing assistance payments for units under the Program in accordance with the unit distribution stated in this section. No substantial deviation, as determined by HOD, from this unit distribution is allowed without prior HOD approval. Number of bedrooms 0 Number of unite e 1 17 2 67 3 a 4 e 87 ACC Part I: Page 2 of 6 pages ROD 52520 8 (August 1968) C. PHA Fiscal Year, 1. The first fiscal year for the Program shall begin on Ausust 12. 3,977 (Enter the effective date for the first project listed in Exhibit I of Part I of the CACC. If this date is not entered before the CACC is signed by the PER, the date may bip entered subsequently by ROD, upon written notice by HOD to the PHA.) The first Fiscal Year for the Program shall end on the last day of the PER Fiscal Year which ends not less than 12 months, or more than 23 months, after this date. 2. Thereafter, the fiscal year for the Program shall be the 12 month period ending dans 30 of each calendar year. (Enter the day and month used as the Fiscal Year ending date for other section a assistance administered by the PEA under an Annual Contributions Contract with HOD.) 1.3 TERM, A. Exhibit T Proje s For all Projects listed in Exhibit 1, the term of the CACC shall end on october 11. 1993 Insert last date of CACC term for all Exhibit I projects. If this date is not entered before the CACC is signed by the PEA, the date may be entered subsequently by HOD, upon written notice by HOD to the PHA.) B. Exhibit II Projects-, For each project listed in Exhibit II: 1. Exhibit II states the first date and last date of the ACC term for the project. 2. The first date of the ACC term for the project shall be the first day of the month when HOD signs the CACC which adds the project to the Program, or another date as determined by HOD. 3. If the first or last date of the ACC term for the project is not entered before the CACC is signed by the PHA, the date may be entered subsequently by HOD, upon written notice by HOD to the PER. 4. HOD may revise Exhibit II at any time, upon written notice by HOD to the PHA (a) to add a cost amendment project, or (b) to remove a project for which the ACC tett has expired. ACC Part is Page 3 of 6 pages HOD 52520 8 (August 1988) CII l; __ :• \Y Y' = Y • C A. PAMMUt_ HUD shall pay the PHA annual contributions for the Program in accordance with HUD regulations and requirements. i7T-q--77-IW-749,kI)&1I 1. The annual contribution for the Program shall be the amount approved by HUD for each Fiscal'Year to cover:. a. The amount of housing assistance payments by the PHA.. b• The amount of PHA fees for Program administration. 2. The amount of the HUD annual contribution may be reduced, as determined by HUD, by the amount of Program Receipts (such as interest income) other than the HUD annual contribution. C. Hank= Eamnrn for P=g am 1. a*+++Lai L•i_m t on Pavmms for Progra+L a. Except for payments from the CACC reserve account as provided in section 1.4.H. of this CACC, the HUD annual contribution for the program under section 1.4.8. during the Fiscal Year shall not be more than the Maximum Annual Contribution Commitment for the Program. b. The Maximum Annual Contribution Commitment for the Program for each PER Fiscal Year shall be equal to the sum of the contract authority amounts reserved by HUD for the projects in the Program. The amount of contract authority reserved for each project in the Program is stated in Zxhibit I and Ii of this CACC Part I (subject to reduction in accordance with section 1.4.D. and section 2.3 of this CACC). If the first Fiscal Year for the Program is more than 12 months, the Maximum Annual Contribution Commitment for the Program for the first Fiscal Year may be adjusted in an amount as determined by HUD by the addition of the pro rata amount applicable to the period in excess of 12 months. ACC Part I: Page 4 of 6 pages HUD 52520 8 (August 1988) 2. Limit on Total Payments for Proaram. The sum of HUD payments under section 1.4.8. for the Program over the duration of the CACC (including any payments from the CACC reserve account as provided in section 1 A.B.) shall not be more than the sum of the budget authority amounts reserved by HUD for the projects in the Program from amounts authorized and appropriated by the Congress. D. Reduction of Amount Payable. HUD may reduce the amount payable by HUD for any project or for the Program, and may reduce the amount of the contract authority or budget authority for any project, by giving the PHA written notice of reduction in accordance with section 2.3 of this CAM The notice by BUD may include a revision of Exhibit I or II to state the reduction to the amount of contract authority or budget authority for a project. E. CACC Reserve Account. A CAM reserve account shall be established and maintained by HUD, in an amount as determined by HUD consistent with its responsibilities under section 8(c)(6) of the U.B. Housing Act of 1937. The CACC reserve account may be used by HUD for payment of any portion of the payment approved by HUD under section 1.4..8. for the Fiscal Year. F. SBnarate ACC. HUD's commitment to make payments for each project listed in Exhibit iI shall constitute a separate ACC. 1.5 CACC - A. The CACC consists of this CACC Part I (including Exhibit I and ii) and the form ACC Part II prescribed by BUD for the Housing Certificate Program and Housing Voucher Program, designated as form BUD 52520 B, and dated January, 1990. These documents constitute the whole CACC for the Program. ACC Part is Page 5 of 6 pages HUD 52520 B (August 1986) B. This CAM supersedes any previous Annual Contributions Contract for the projects or Program. Matters relating to operation of the projects or Program under .a prp`vious Annual Contributions Contract shall be governed by this CAM. Signatures: PMLXC HOUSING AGENCY Y .—I Signature Date signed Print or type name and official title of signatory Signature Date signed Minnesoolis-St. Paul Office Print or type name and official title of signatory ACC Part I: Page 6 of 6 pages BUD 52520 8 (August 1988) ACC Part I Number: C-40708 PROJECT ACC LIST CONTRACT PR06TECT ACC NUMBER NUMBER AUTHORITY EFFECTIVE DATE MHQ46-81746001 C-78-209 123,648.00 08/12/77 MRQ46-8170-002 C-78-5878 76,416.00 10/12/76 MRJ4.6-8170-003 C-85-457 81,180.00 09/30/85 M8Y46-81.70-001 C-78-209 123,648.00) 08/12/77 Date signed Exhibit I: Page _&_ of ,jL_ pages HUD 52520 B (August 1988) ACC Part I'Number: 9LIQ2AI B8BI8IT II Protects Annronriated in Federal Fie a7 Year +988 M &tgx YE Abbreviation: CA • Contract authority. BA • Budget authority. PROJECT CA BA FIRST DATE LAST DATE UNIT NUMBER OF TERM OF TERM Dl=- BUPSsi 46-8170-901 55,808.00 111,616.0009/21/88 06/30/90 46-8170-902 45,826.00 91,652.00 09/21/88 06/30/90 46-8170-9.03 99,723.00 299,169.00 06/01/89 05/30/91 30146-8170-904 268,019.00 268,019.00 07/01/91 06/30/92 46-8170-901 55,808.00) 4111,616.00) 09/21/88 06/30/90 46-8170-902 45,826.00) 91,652.00) 09/21/88 06/30/90 M66-8170-903 99,723.00) 299,169.00) 06/01/89 06/30/91 32146-8170-001 123,648.00 1,854,720.00 08/12/77 08/11/92 1318 U 2 38l al 3 DR -1 Date signed Bxhibit II: Page -„L_ of _.L_ pages BUD 32520 B (August 1988) Consolidated U.S. Deparueent of Mousing and Men DevelopmentAnnualContributionsContractOfficeofHousing Housing Certificate Program and Housing Voucher Program ACC Part II 2.1. HUD Requirements. A. The PHA agrees to comply, and shall require owners to comply, with the requirements of the U.S. Housing Act of 1937 and all applicable HUD regulations and other requirements, including any amendments or changes in the Act or HUD requirements. B. The PHA shall comply with its HUD -approved administrative plan, equal opportunity housing plan and HUD -approved applicatigns for the Programs. C. The PHA shall use the forts requibed by HUD. D. 7be PHA shall proceed expeditiously with the Programs under this ACC. 2.2. Annuai Contribution. A. The PHA shall submit to HUD each Fiscal Year an estimate of the annual contribution required for the Programs. The annual coltribution estimate, and supporting data for the estimate, shall be submitted at such time and in such form as HUD may require, and are subject to HUD approval and revision. B. The PHA will requisition periodic payments on account of each annual contribution. The requisition shall be in the form prescribed by HUD. Each requisition shall include certification by the PHA that 1. Housing assistance payments have been • made in accordance with contracts in the form prescribed by HUD and in accordance with HUD requirements; and 2. Units have been inspected by the PHA in accordance with HUD requirements. C. U HUD determines that payments by HUD to the PHA for a Fiscal Year exceed the amount of the annual contribution approved by HUD for the Fiscal Year, the exam shall be applied as deiermined by HUD. Such cpplications determined by HUD may include, but are not limited to, application of the excess payment against the amount of the annual contribution for a subsequent Fiscal Year. The PHA shall take any actions required by HUD respecting the excess payment. and shall, upon demand by HUD, promptly remit the excess payment to HUD. 2.3. Reduction in Annual Contribution Payable by HUD. A. Upon written notice by HUD to the PHA. HUD may reduce to an amount determined by HUD the amount of the annual contribution payable for any project or for the Pipgram, and may reduce to an amount determined by HUD the contract authority reserved by HUD for any project included in the Program, if HUD determines that the PHA has failed to comply with any obligations under the ACC. B. 'lite notice by iiU'J to the PHA shall state any reduction, pursuant to section 2.3.A of the ACC, in the amount of the annual contribution payable for any project or for the Program. and shall am any reduction in the amount of contract Authority reserved by HUD for a project. The notice May SHY a revised unit distribution. HUD notice of reduction or revision shall constitute an amendment of the ACC. However, HUD shall not reduce the amount of annual contribution payable by HUD for any project or for the Program, and shall not reduce the amount of contract authority reserved by HUD for a project, below the amount, as determined by HUD, necessary for dwelling units under ccntracts for housing assistance payments with owners on the date when the PHA receives the HUD notice. 2.4. Use of Program Receipts. A. The PHA shall use Program Receipts to provide daunt, safe and sanitary housing for eligible families in compliance with the U.S. Housing Act of 1937 and all HUD requirements. Program Receipts may only be used to pay Program Expenditures. B. The PHA shall not make any `r-&.; am Expenditures except in accordance with the err_..--iAbution estimate and supporting data for suches, : ;•proved by HUD. C. The PHA shall maLaWn an C. • Reserve account that shall be credited with die a=: .! i,y which the total of administrative fees tamed and ini, ,. r .timed on the Operating Reserve exceed FHA ad -nm;-. of:tive expenses during a Fiscal Year. In subseque-r -,ears, the PHA must use funder in the Operating Reserve top,. V. +.iristrativeexpenses Ln excess of Program Rawip4;. i+ iotwithstandirg the provisions of section 2A.A, if there remain funds in the Operating Reserve, the PHA tray we such funds for other hoeing purposes consistent with State and local law. However. HUD may prohibit use of funds in the Operating Reserve for other Musing purposes if tie PHA is not adequately administering its Housing Certificate Program or its Housing Voucher Program or has failed to comply with any of its obligations under the ACC. 2.5. Books of Account and Records; Reports. A. The PHA shall maintain complete and accurate books of account and records for the Progaun. The books and records shall be in accordance with HUD requirements. and shall permit a speedy and effective alldiL B. The PHA shall furnish HUD such financial. operating, and statistical reports. records, statements, And documents at such times, in such foto. and accompanied by such supporting data as required by HUD. Pape t of 3 form HUD42ME (I=) ref. handbook 7420.3 C. HUD and the Comptroller General of the United States, or their duly authorized representatives, shall have full and free access to all PHA offices and facilities, and to all the books, documents, papers, and records of the PHA that ate pertinent to operatfae and management of the Program. including the right to audit. and to make excerpts and transcripts from the books and records. D. The PHA shall be responsible for engaging and paying an independent public accountant for the making of audits as regained by HUD. The cost of audits required by HUD may be charged against program Receipts. 2.6. Depositary. A. The PHA shall enter into one or more agreements, which are collectively tailed the "Depositary Agreement'. with financial institutions which aro selected as depositary by the PHA. and whose accounts are insured by an agency of die Federal Goverment. The.Depositary Agreement shall be in the form prescribed by HUD and the PHA shall fimnish to HUD such copies of the Depositary Agreement as HUD may require. B. All Program Receipts -shall be promptly deposited with the Depositary under the Depositary Agreement unless otherwise regAted or permitted by HUD. The PHA may withdraw Program Receipts subject to the Depositary Agreement only for use in connection with the Program in accordance with HUD regulations or other requirements. No withdrawal shall be made except in accordance with a voucher on Me in tine office of the PHA stating in proper detail the purpose of the withdrawal. C. As required by HUD, PHA funds in excess of current needs shall be promptly remitted to HUD a shall be invested in aea.adance with HUD requirements. Interest on the invest nem of Program Receipts shall constitute Program Receipts D. The Depositary Agramernt shall provide that the provisions of the Depositary Agreement may not be sermfmred at changed without written consent by HUD, and that if required under a written notice from HUD to the Depositary. (1) the Depositary shall not permit any withdrawal by the PHA of funds held under the Depositary Agreement unless withdrawals by the PHA are expressly authorized by written rwtice from HUD to the Depositary, and (2) the Depositary shall permit withdrawals of such funds by HUD. U approved by HUD, the PHA may deposit under the Depositary Agreement monies received or held by the PHA in connection with any contract between the PHA and HUD. 2.7. Default by PHA. A. Upon written notice to the PHA. HUD may take possessiorh of all or any PHA property, rights or interests in connection with the Prupson, including funds held tinder the Depositary Agreement. Program Receipts, and rights or interests under a contact for hewing assistance payments with an owner, iu HUD determines that I. The PHA has failed so comply with any obligations under this ACC. or L The PHA has failed to comply with obligations under i contract for housing assistance payments with an owner, a has failed to take appropriate action, to HUD's satisfaction a as directed by HUD. for enforcement of the PHA's rights under a contract for housing assistance payment; (includint requiring actions by the owner to cure a default, termination a reduction of housing assistance payments. termination of die contract for housing assistance payments, or recovery of overpayments), or The PHA has made any mingnsenotion to HUD d any material fact. HUD shall issue a omice to the PHA giving the PHA a reasonable opponu ut% w take conative action before HUD takes possession of PHA property. rights or interests under this taction 2.7.A. B. U HUD has taken possession of PHA property, rights, or interests under section VA. HUD shall redeliver possession of the property. rights or interests as constituted at the time of the return when HUD is satisfied that all defaults have been cured, and that the Program will thereafter be administered in accadance with this ACC. C. HUD's exercise or non -exercise of any right or remedy under the ACC shall not constitute a waiver of HUD's right to exercise that or any other right or remedy at any time. D. During the term of this ACC. HUD shall continue to pay annual contribution for the purpose of making housing assistance paymeng with respect to dwelling units under contracts with owners, entered into by the PHA in the form prescribed by HUD and in accordance with HUD regulations and other mquiranents. The housing assistance payments shall be made in accordance with the terms of such contracts. 2.8. Fidelity Boned Coverage. The PHA shall carry adequate fidelity bond coverage, as required oy HUD, of its offices, agents or employees haninog cash or authorized to sign checks or certify vouchers. 2.9. Nondiscrimination in Housing. A. The PHA shall comply with the nondiscrimination requirements of Title VI of the Civil Rights Act of 1964 prohibiting discrimination based on race. cola or national origin and Executive Order 11063 with respect to those provisions prohibiting discrimination based our religion or sex. and with implementing HUD regoLuons. B. The PHA shall comply with Title VM of the Civil Rights Act of 1968 whish prohibits du crimitution in the sale, rental or financing of housing an the basis of race, cola. religion. sex. handicap. familial status or national origin and with any implementing C. The PHA shall comply with Section SO4 of the Rehabilitation Act of 1973. as amended, which prohibits discrimination Papa 2013 form HUD52520-E against handicapped persons who would otherwise qualify to 2,12. Cooperation in Equal Opportunity participate in the Program and, where applicable, the Age Compliance Reviews. Discrimination Act of 1975. as amended, which prohibits discrimination on the basis of age. D. Unwed parents, families with children born out of wedlock, and recipients of public assistance shall not be excluded from participation in or be denied the benefit of the Program because of such status. 2.10. Equal Employment Opportunity. A. Tho PHA shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex. handicap or national origin. The PHA shall take affirmative action to ensure that applicants are employed, and that emplq ices are treated during employment, without regard to race, color. creed, religion, sex. handicap or national origin. Such action shall include, but not be limited to, due Wowing: employment. upgrading. demotion. or t sasfm recruitment or recruitment advertisi.V. layoff or terrninuion; tater of pay or other forms of compensation: and selection for training, including apprenticeship. B. The PHA agrees to post in conspicuous places, available to employ -mss and applicants for employment, notices to be provided by HUD seuiug forth the provisions of this nondiscrimination clause. The PHA will in all solicitations or advertisements for employees placed by or on behalf of the PHA state that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, handicap or national origin. The PHA will incorporate the foregoing requirements of this paragraph in all of its contacts for project work, except contacts for standard commercial supplies or raw materials, and will require all of its contractors for such work to incorporate such requirements in all subcontracts for project work. 2.11. Training, Employment, and Contracting Opportunities for Business and lower Income Persons. The PHA shall comply with Section 3 of the Housing and Urban Development Act of 1968 and HUD regulations. To the greatest extent feasible, employment and training opportunities in connection with planning and carrying out any project assisted under the Program shall be given to lows income persons residing within the unit of local government or the metropolitan area (or nonmetropolitan county). as determined by HUD, in which the project is located. and contracts for work to be performed in connection with any project shall be awarded to business firms which are located in or owned in substantial pan by persons residing in the Satre metropolitan area (or notunetropolitan county) as die project The PHA shall cooperate with HUD in conducting compliance reviews and complaint investigations pursuant to applicable civil rights statutes. Executive Orders, and related rules and regulations. 2.13. Conflict of Interest Provisions. A. Neither the PHA nor any of us contractors or thcu subcontractors shall enter into any contract subcontract. oi arrangement. in connection with the Program in which any d the following classes of persons has an interest, direct of indirect, during tenure or for one year thereafter. 1. Any present or former member or officer of the PHA except a tenant commissions). 2. Any employee of aloe PHA who formulates policy to who influences decisions with respect to the Program. 3. Any public official, mamba of a governing body, or State or local legislator who exercises functions or responsibilities with respect to the Program. B. Any members of the classes described in paragraph A must disclose their interest or piosp^ctive interest to the PHA and HUD. C. The requirements of section 2.13A may be waived by HUD for good cause. No person to whom a waiver is granted stialt be permitted (in the capacity as member of a class described in section 2.13.A) to exercise responsibilities or functions with respect to a amtact for housing assistance payments executed, or to be executed, on his or her behalf, or with respect to a contract for housing assistance payments to which this person is a party. D. The provisions of section 2.13.A, section 2.13.11 and section 2.13.0 shall not be applicaW to the Depositary Agreement. or to utility service the rates for which are fixed or controlled by a governmental agency. 2.14. Interest of Member of or Delegate to Congress. No member of or delegate: to the Congress of the United States of America or resident commissioner shall be admitted to any share or part of this ACC or to any bew."ts which may arise from it. 2.15. Exclusion of Third Party Rights. Nothing in the ACC shall be construed as lead - .•ny'right of any third party to enforce any provision of this .XC, or to asses any claim against HUD or the PHA under this ACC. Page 3 of 3 farm HUD42520-E W. MEND CITY OF PLYMOUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MINNESOTA 55447 DATE: February 14, 1992 TO: Housing and R pment Authority Commissioners FROM: Charles E. it, Executor Director SUBJECT: COMMUNITY 0 P.OPMENT BLOCK GRANT --TRANSFER OF GRANT FUNDS AGREEMENT On February 14, 1992 I received the attached letter and attachments from Hennepin County. This documentation is to execute the transition by the City of Plymouth from the Urban Hennepin County CDBG Program to the Entitlement City COBG Program. The agreement addresses outstanding CDBG contractual arrangements between the City and Urban Hennepin County and is brought forwaM at this point because the contract between the City and Urban Hennepin County continued in existence until the end of the 1991 calendar year. The bottom line purpose of the agreement is to transfer directly to the City all funds that were allocated to it in prior years, but unexpended as of December 31, 1991, through the Community Development Block Grant Program. These funds then are added to the "new" funds that have been allocated to Plymouth under its entitlement relationship directly with HUD. The "earmarks" with respect to how previously committed allocated funds are to be expended remain however as you can see in the agreement. A major component of the $367,800 that will be transferred by this agreement is $213,300 from the sale of the senior site to the City of Plymouth. All of that amount is included under Item 51079 "Scattered Site Housing". Of course, the City has approved transfer of $140,000 of this amount to the 10th Avenue Park Project. Since the allocation was made in Program Year XVII (after we became Entitlement) the County's CDBG accounting does not recognize the allocation for the •purposes of this closeout agreement. The reallocation remains valid however so the HRA should assume that $140,000 of the $294,176 shown as Item 51079 "Scattered Site Housing" is the 10th Avenue North Neighborhood Park. 1 have received the approval of the HRA Attorney as to the form and content of this agreement, and I recommend the HRA adopt a motion recommending the City Council approve the Transfer of Grant Funds Agreement as drafted. hra/cd/tran.funds) OFFICE OF PLANNING & DEVELOPMENT Development Planning Unit 822 South Third Street, Suite 310 HENNEPIN Minneapolis, MN 55415 NECHWEpD 612) 348-6418 FEB 14 %W February 13, 1992 Mr. Charles B. Dillerud, Director Community Development City of Plymouth 3400 Plymouth Boulevard Plymouth, HH 55447 CITY OF PLYMOUTH C W ITY DEVE ILOPf.1011T DEPT. Dear Chuck: Subject: Transfer of Grant Funds Agreement, Contract No. A06292 As you know, the participation of the city of Plymouth in the Urban Hennepin County CDBG program effectively ends with the close of the Year XVI CDBG Program. In order to transfer responsibility for projects started under the Urban County CDBG program to the City as a HUD designated *Metropolitan City• it is necessary to execute a Transfer of Grant Funds Agreement. Please review the subject agreement carefully. If the agreement meets with your approval please proceed immediately to have the agreement executed by the Mayor and City Manager. Three original vapies are enclosed for execution. Submit all three copies of the signed agreement and a certified copy of the Council resolution. After the agreement has been executed by Hennepin County, one original copy will be returned to the City. The transfer of funds from the Urban Hennepin County P. or of credit to the city of Plymouth letter of credit will take place aft., the final execution of the agreement. A final program monitoring will take place prior to the transfer of funds. Please call me if you have any questions. Also, please let me know when the agreement will go before the City Council. Sincerely, s— Mark Hendrickson Senior Planner MH:dc enclosures HENNEPIN COUNTY an equal oppoft ft on~ Contract No. AOA292 TRANSFER OF GRANT FUNDS AGREEMENT THIS AGREEMENT. made and entered into by and between the COUNTY OF HBNNEPIN, hereinafter referred to as •COUNTY, and the CITY OF PLYMOUTH. hereinafter referred to as •CITY,• said parties each being local governmental units of the State of Minnesota; WITNESSETH; CITY and COUNTY are parties to a. Joint Cooperation Agreement. COUNTY Contract No. 70488, to authorize CITY and COUNTY to cooperate to undertake, or assist in undertaking, community renewal and lower income housing activities and authorises COUNTY to carry out these and other eligible activities for the benefit of eligible recipients who reside in the corporate limits of CITY and which will be funded from annual grants'made to Urban Hennopin County from the Community Development Block Grant program for fiscal years 1988, 1989 and 1990, and _ Projects funded under the Agreement to the benefit of CITY which have not been fully implemented as of January 31, 1992, are, with the remaining budget: 50083 Scattered Site Housing $14,852.36 51077 Child Day Care 1,126.63 51078 Rebab of Private Property 57,644.66 51079 Scattered Site Housing 294.176.00 Total $367,799.65, and Property acquired by CITY at 3533 Pilgrim Lane North under the Scattered Site Housing project for the purpose of benefitting a low- or moderate -income family through the resale of said property remains in CITY ownership and therefore, CDBC.program benefit has net been established, and CITY, by virtue of attaining a population in excess of 50,000 has been designated by HUD as a Metropolitan City for purposes of the CDBG program and therefore eligible for a direct program grant, elected to become a Metropoli- tan City and no longer be a participant In the Urban Hennepin County CDBGprogram. and ODBC Regulations, 24 CPR, Part 570.510 provides for the transfer of projects and unobligated grant funds from an urban county to a metropolitan city. and As determined from the above covenants of process and project status, the total amount of CITY unobligated grant funds as of January 31, 1992 totals367.799.65. AGREEMENT A. $367,799.65 shall be transferred from the COUNTY Urban HennepinCountyODBCletterofCredittoCITYCDBCLetterofCredit. B. The activities to be carried out by CITY with the funds so trans- ferred shall be as determined by CITY. C. COUNTY shall maintain responsibility for all expenditures and unliquidated obligations associated with the activities before +fie time of transfer, including responsibility for all audit and moni- toring findings associated with those expenditures and obligations. D. CITY shall assume responsibility for all other audit and monitoringfindLnp E. Program income derived from activities funded witi s t'he amount trans- ferred as specified in A. above shall be retained by CITY. F. CITY shall promptly notify COUNTY of the sale of the property at3533PilgrimLaneNorthandsubmitsuitabledocumentationofprogrambenefit. G. The effective date of the terms and conditions of this Agreement isJanuary31, 1992. EXECUTION _ CITY, having signed this Agreement, and the Hennepin County Board ofCommissionershavingdulyapprovedthisAgreementon1992, and pursuant to such approval and the proper County official having signedthisAgreement, the parties hereto agree to -be bound by the provisions hereinsetforth. Upon proper execution, this Agreement will be legally vali binding. Assistant Coun /A tt Date: .7 f If APPROVED AO TO EXECUTION: COUNTY OF HENNEPIN, STATE OF MINNESOTA By: Chairman of its County Board And: Deputy/Associate County Administrator Attest: Deputy County Auditor CITY OF PLYNOUTH Assistant County Attorney Date: By: Its And: Its CITY NUST CHECK ONE City is organised pursuant to: 2/10/92 Plan A _ Plan B _ Charter _ PLYCRANT.ACR 1' C:TY Or IPLIMMDQ 9400 PLINOM BOULEVARD, FLYNUM, l n=BOTA 55447 OATS: February 11, 1992 TO: David Crain, Chair - Rousing `i Redevelopment Authority FROM: Janes G. Willis, City Manger BMIJ=:. ATTORNEYS FOR ROUSING 6 RBDEVM9LOPMMT AUTHORITY The City Council has retained new legal counsel effective February 4. The City's new legal counsel is Mr. Robert Meller with the Best i Flanagan firm. Since the BRA was originally establisheO, the law firm representing the City has been the attorney for the HRA. That relationship emerged as a result of the f*qt. that the. HRA was originally composed of the City Councilmembers. The Mh has never sought its own independent legal cpaseel, but has relied upon the legal counsel of the City. The ZRA is independent of the City Council. it has the authority to select its own legal counsel, and that legal counsel need not be the some counsel as retained by the City. Since the City has recently changed its legal counsel, I wanted the HRR to be aware of that fact. The HRA Commissioners may wish to discuss whether or not they wished to have Mfr. Meller of Best i Flanagan serve as their legal counsel, or remain with the Holmes 6 Graven firm. JK:kec cc: Dale Haan, Finance Director Chuck Diilerud, Executive Director of RRA/ Now CITY OF PLYMOUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MINNESOTA 55447 DATE: February 13, 1992 FOR HOUSING AND REDEVELOPMENT AUTHORITY MEETING OF FEBRUARY 20, 1592 TO., Charles E. Dillerud, Executive Director FROM: Milt Dale, Housing Specialist #kk— SUBJECT: INFORMATION ITEMS Attached are several pages from a the January, 1992 Dakota County HRANewslett-pr titled "NRA Update". Some Commissioners may recall that Dakota County fiRA Executive Director Mark Ulfers spoke to Commissioners regardingsubsidizedseniorhousinginAprilof1990. Page 1 shows a groundbreaking for a 65 unit Senior Citizen Subsidized HousingProjectinEagan. The one bedroom to two bedroom breakdown indicates twice as many one bedrooms as two bedrooms. It also indicated that they received a total of 175 applications for the 65 units. On Page 3 the newsletter indicates two more recently completed subsidized senior housing developments, i.e.. one in Burnsville and one in Hest St. Paul. The one bedroom to two bedroom ratio is approximately 2:1 for both buildings. On Page 7 additional information is given on the Senior Housing Program in Dakota County indicating income limits, monthly rents, and a 30% of income for participants within a rent "floor" and "ceiling". Financing for the housing developments is indicated through a variety of sources including an NRA taxlevyandtheuseofCDBGfunds. Page 5 is a listing of other senior housing both proposed and existing inDakotaCounty. On Page 4 of the newsletter a description is given of a down payment assistance program available for first-time homebuyers. Page 2 relates in part to various features of the newly created HOME program. It should be noted that during the first year of HOME program funding, HRAs will receive some administration dollars. hra/md/info) HRA Update Serving People and Communities volume 3. No.1 January. 1992 Oak Woods of Eagan Ground Breaking Ceremony Held A ground breaking ceremony for the Dakota County Housing and Redevelopment Authority's (HRA) newest senior housing de- velopment, LOU Woods of Eagan, was held on Fri- day, September 27, 1991. The building will be located at 2065 Park Center Drive in Eagan. The site is situated across Cliff lake Road from Target and Cub and bor- dered by beautiful oak trees on the north and west. Mayor Tom Egan There were several speakers at the ground breaking ceremony including Tom Egan (Mayor of Eagan). Donald Chapdelaine (Dakota County Board Member) and Theodore Wachter (Representing Eagan Seniors tad the Eagan City Council). The project began construction in October of 1991 and is expected to be completed in August of 1992. This 65 -unit project will ceosist of 44 -one bedroom and 21 -two bedroom apartments, and parking space in the underground garage will be leased to DARTS (Dakota Area Referral and Transportation Service) for two vans. We received a total of 175 applications for the 65 units. A lottery drawing to determine the initial occupancy for Oak Woods of Fagan was held on November 26, 1991. Because of a significant local financial contribution by the City of Eagan, we are able to construct 65 units on this site rather than the typical 40 -unit building using HRA and County resources. The City of Eagan contributed Community Development Block Grant dollars and other local resources which will allow us to construct these much needed additional housing units. The HRA commends the City of Eagan for this outstanding financial contribution and the assistame that it will provide area Pictured Left to Right, Back Row: Dale Runkle, Eagan Community Development Director; Thomas Hedges, Eagan City Administrator; Donald Chopdelaine, Dakota County Commissioner;'F.obert Alpers, Dakota County HRA Commissioner; Theodore Ted" Wachter, Eagan City Council Member; Wilhtm Reed, Eagan Senior; Thomas Egan, Mayor of Eagan; Ed Kurth, Dakota County HRA Commissioner Front Row: Lidy Knutson, Eagan Senior, Unidentified Eagan Senior senior citizens. Ltside r Vlewpoint': r . -2. First Time Homehuyer Program 3 Housing Development S Senior Housing 7 Two More Senior Housing Buildings Open Two new senior housing developments, Eagle Ridge Place in Burnsville and HarkeR Court in West St. Paul, were completed in December, 1991. Both buildings were fully leased at initial occupancy. An open house and building dedication will be held for each building in the spring. Eagle Ridge Place is located at 12600 Eagle Riyge Haskell Court is located at 140 East Haskell in West Drive in Burnsville (on Eagle Ridge 16-a%sen Travelers St. Paul (this is one -halt' block east of Robert Street on Trail and Bt rnsville Parkway). Thi:, is a 40 -unit complex Haskell). This is a 42 -unit complex with 27 -one' that was built to .ccommodate a 20 -unit expansion in bedroom 'units and 15 -two bedroom units, with two the future. Yhere are currently 25 -one bedroom units apartments designed to be handicapped accessible. .. and I5 -two bedroom units, with two apartments designed picture below shows the building at the time of initial to be handicapped accessible. Pictured below is the occupancy. Because of the early winter, some exterior building at the time of initial occupancy. A small work and landscaping remains to be completed in the' amount of landscaping remains to be done in the spring. Wig• 0 HRA Update Is published seat -annually. by the Dakota County Housing and Redevelopment Authority (HRA), 2496 - 145th Street West, Rosemount, MN 55068, 612) 423.4800. ff you have questions or ammants or wish to be added to or removed from the malling Ilst, contact Lori 2ierden at d3-8108. Special thanks to all staff members who assisted In production of this newsletter. MISSION STATEMENT The Dakota County HRA utilises available federal, state and local resources to serve the residents of Dakota County by wcrWng to upgrade and maintain the existing housing stook, encourage the construction of new housing affordable to low and moderate Income households, promote economic develo;rrtent efforts and provide assistance to Dakota County communities through community development programs, and to prrwide low and moderate Income family and senior households with decent, safe and affordable rental housing opportunities. WRA Board of Commisslonera radariro Weosnor, Chairperaw, Third District Robert Alpers. Vim Chakperson, F1hh DI6trict 6hlrley d2odd, Secretary, First District Galleon Loney. Second Distrld Donna Bag, Fouts District Steven Loading, County Commiaslpnnr, NRA sag':. tWwx EaecuWo Director: Mark S. Ulfere 4, 4. ail Vii.•_ r 'fit't:.. For more information see Daae 7. TAPEMARK to Open New Manufacturing Facility On September 12, 1991, TAPEMARK Incorporated broke ground for its new manufacturing facility in West St. Paul. The new facility, which will hold TAPEMARK's medical products and industrial fabricating divisions, will create 30 new jobs with an annual payroll of $685,500 and will enhance tLe City's tax base. At the request of the City of West St. Paul, the Dakota County Housing and Redevelopment Authority (HRA) issued Industrial Development Bonds to finance the new facility. The in exempt bonds provided favorable financing to TAPEMARK at no risk to the HRA or the City and encouraged the company to expand within West St. Paul. TAPEMARK had been considering an expansion in St. Paul. TAPEMARK manufactures products and components using adhesive materials and has been a major employer in West St. Paul since 1"964. TAPEMARK currently employs 300 people at its site on Marie Avenue. In addition, TAPEMARK has contributed to the community by donating the proceeds of its annual golf tournament to benefit developmentally disabled ch9dmo and adults. Since 1972, the company has raised and donated over $2,000,000. The HRA is pleased to have a :sisted West St. Paul and TAPEMARK and, upon request, wil! work with other Dakota Count; cities to help them retain and expand their manufacturing businesses. a Senior Housing Development Program Three buildings have now been completed under the Senior Housing Development Program. Winsor Plan in Lakeville (1990), Eagle Ridge Place in Burnsville (1991) and Haskell Court in West St. Paul 1991). Oak Woods of Eagan is under construction with construction expected to be completed in 1992. It is anticipated that a building in Hastings will be designed and begin conation in 1992. The housing developments are funded through a variety of sources including an Dakota County Hous- ing and Redevelopment Authority HRA) tax levy specifically for these developments, community assistance, Community Develop- ment Block Grant Funds, Tax Increment Financing and the issu- ance of bonds. All of the .apartments were designed specifically for indepen- dent senior living. An emergency call system, bathroom grab bars, elevator, underground parking, security system, and sprinldered buildings are some of the structural design elements incorporated to accommo- date the specific needs of seniors. Common areas in the buildings include community rooms, commer- Funding Denied 71a community ro^.n at Fork Ridge Place (&am) is similar to don at oder armor hawing facilides da NRA has developed. cial grade kitchens, and lounge areas. To be eligible for the buildings, applicants must be age 33 or older. Annual income cannot exceed 80 percent of median income. Cur- rently, income limits are $26,600 for a sing;3p person and $30,400 for a two -person household. Monthly rents start at $250 for a one bedroom unit and $350 for a two bedroom unit; the maximum vent for a unit is the current fair market rent On October 10, 1991, the Dakota County Housing and Redevelopment Authority (HRA) wait notified that the application submitted to the U.S. Department of Houc:ng and Urban Development HUD) for additional certificates or voucher for the Section 8 Program was denied for the 1991 fiscal year. On the same date. the HRA was notified that the application submitted to HUD far additional units for the Low Rent Housing Program wait also denied. Both programs will won be submitting applications for funding under the Family Self Sufficiency Program. less the established utility allow- imce. Tenants pay 30% of their income for rent within the minimum and maximum rectal amounts. Underground parking stalls we rented separately for $35.00 per month. All of the completed buildings are fully leased with waiting lista for both one and two bedroom units. For rental information. call Brooke at the Dakota County HRA at 423. 8141. Section 8 Waiting List The Section 8 rental assistance program operated by the Dakota County Housing and Redevelopment Authority has a very long waiting list. The waiting list was open during the week of September 16, 1991 through September 20, 1991. Prior to that, the waiting list had been closed. with the exception of one bedroom units, for approximately 13 month- due to a large number Of existing applicants on the waiting Wt. Throughout the week, 978 applications were seat to families of all sizes for Section 8 Rental Assistance. Out of the 978 sent. 645 were retuned and included in a random drawing to determine the applicant's placement Downpayment Assistance Available For First Time Homebuyers First time homebuyers may receive up to $3,000 for downpayment assistance and closing costs when they purchase a home through the Dakota County Homing and Redevelopment Authority (HRA) First Time Homebuyer Program. Downpayment assistance may be used for the downpayment or closing costs and is only repaid when the home is sold. The First Time Homebuyer Program provides 7.97% mortgages to purchase an Wsting single family house, townhouse or condominium. The mortgage loans are 30 -year fixed rate. FHA or VA insured mortgages. There are 2.5 discount points and a 1 % origination fee. To be eligible for a fust time homebuyer mortgage and downpayment assistance a family must: be a fust time homebuyer (may not have owned their principal residence within the last three years). Have an adjusted gross income less than $38,400 (adjusted gross income means gross family income less $1,000 for each family member, for example, if a family of three has a gross annual income of $41,000. they would deduct $3,000 to determine their adjusted gross income of $38,000). Purchase an existing single family house, townhouse, or condomk4u..t. funds are available for new construction on tax forfeited property; .or a listing of tax forfeited properties, call Diane at 423-8112). The maximum purchase price is $83,000 in West St. Paul and $97,840 in all other cities in Dakota County. To apply for a mortgage and downpaymeot assistance, just contact one of the participating lenders. M PARTICIPATING LENDERS CommonwealtWUnited Bloomington 832-5533 Arden Hills 486.8850 lot Bank iLakedu 8924000 F.BS. Meetgage ' Blairsville 435-3273 Coon Rapids 786.0466 Edina 922.2030 Minneapolis 704461 Plymouth 544-2566 Roseville 636.2456 G,M.A.C. Mortgage Eagan 45&9004 Brooklyn Pack 361-9002 Eden Prairie 943-2410 Metropolitan Fiomeial Bloomington 8884176 Woodbury 738.1860 Rmseet nt Nationrl 432-5000 T.CF. Mortgage Edina 921-0317 Maplewood 722-2055 Minneapolis 370.2645 St. Paul 291-4113 HRA Converts Tax Forfeited Lots Into Home Ownership Opportunities Over the past years, the number of tax delinquent properties in Dakota County forfeited from private ownership for non-payment of property taxes and special assessments has grown steadily. Records from the Dakota County Assessors office show the number of delinquent properties jumped from 38 in 1983 to 366 in 1991. These properties cres;e a financial burden to the county and municipa? ", in not only delinquent taxes but also unpaid special assessments. The properties are not main- tained and many lots have become neighborhood dumping grounds. in 1988, the Dakota County Housing and Redevel- opment Authority (HRA) de- veloped the Tax Forfeiture Development Program to help The primary objective of the Tax Forfeiture Development Program is to convert vacant tax forfeited lots into tax paying residential properties through re -sale to private owners. At the same time, assessments owed to the city arc paid. solve some of the problems This hone was built on a tar forfeited lot using caused by tax forfeited property Bing from firm time homebuyer program. See in We County. related article above. The HRA has a current inventory of 35 lots in various cities. Since 1988, the HRA has sold 33 lots and has provided for the payment of 415,000 in outstanding spe- cial assessments to cities. The HRA markets the lots, offers a maltoes commis- sion. and offers flexible financing. ff you are interested in the Dakota County HRA Tax Forfeiture Development Program, please cull Diane at 423-8112 for more information. VIEWPOINT - By Mark S. Ulfers, Executive Director Recently, the counties of Dakota. Washington. Ramsey and Anoka came together to create a partnership' that will have significant implica- tions for meeting affordable housing needs in the area. This partnership came about as a result of the National Affordable Housing Act passed by Congress in 1990. This law created a significant new affordable housing program called the HOME Investment partnership Ain. For Federal fiscal year 1992. the HOME program received an appropriation of S1.5 billion. As a result of this collaboration partnership, the four county group has qualified for nearly two million dollars in funding from Me U.S. Department of Housing and Urban Development. Although falling far short of the needed funding for affordable housing, the program does represent the most significant new federal initiatives for some time. The program itself is a "Block Grant" vehicle that provides for a certain amount of local flexibility as to how funds arc used. In general, the funds can be used to develop and support affordable rental housing and home ownership through acquisition, construction, reconstruc. tion or substantial rehabilitation. Since none of the four counties qualified for a direct allocation of HOME funds on their own, the four county partnership was created to take advantage of a provision Ed Kurth Recognized for Service to HRA Board Ed Kurth of lava Grove Heights was recognized by the Dakota County Housing and Redevelopment Authority (HRA) Board at their December 10th meeting for ten years of outstanding service to the Agency. Mr. Kurth served on the HRA i Board from November 9, 1981. to November 12, 1991. HRA Commis- sioner Robert Alpers thanked M. Kurth for his dedicated efforts to provide affordable housing to Dakota County residents and presented him with a plaque recognizing his service. Mr. Kurth has truly made a difference through his life long dedication and outstanding civic service to the Inver Grove Heights area and the entire County. a of the new law that permits "consortium" applications. By forming the four county consortium the group will receive a total of approximately S1.9 million. Dakota County's share of this amount is e- timated at $635,000 or about one-third of the total. w. the request of the other !hree counties, Dakota County has agreed to act as tie lend agency for the partnership. All administrative responsibilities for the program will be coordinated by the Dakota County Housing and Redevelopment Authority (HRA). Although We HOME program represents a needed source of additional hurtling for the HRA, it does have some drawbacks. For instance, the same law creating HOME also terminated three smaller housing programs that have occasionally been used by the HRA including the Section 312 Loan program, Section 17 Renal Rehab program and the Urban Homesteading program. In addition, the program provides 114 funds for program administration. Unlike the federal Community Development Block G, -at (CDBG) program where up to 20% of finds can be .,sed for administration, HOME has zero administrative dollars. As a result, the HRA must find a way to pay for operating the program. Nevertheless, the HRA is excited about the prospect of the fust significant new federal assistance program since the creation of the CDBG program in 1974. We are hopeful that the challenges of the program can be overcome and that the partnership with our fellow counties may tear rewards beyond the HOME program. 1992 Rental Market Survey To Be Conducted The Dakota Couniy 1992 Rental Market will be available May 1, 1:92. This study is done annually by the Dakota County Housing and Redevelopment Authority (HRA) staff to obtain a better Imowledge of the rental housing market in Dakota County. The rental units represented throughout this study are identified through voluntary responses to the study. The market survey contains summaries, 8rel?ks and maps of each city's housing rental market. It also includes average rents by unit sizes. vacancy rates, and trend information. This information is useful in determining rent reasonableness for the Section 8 Prop= and is also useful for related housing, community planning and development purposes. Copies of the 1991 Rental Market Suryerr are still available. Please contact Lori Zierden at 423-8108 if you are interested in obtaining a copy. 0