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.
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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