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09-17-07 Agenda . . . CITY OF RICHFIELD, MINNESOTA MONDAY, SEPTEMBER 17,2007 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING . RICHFIELD CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE .7:00 P.M. AGENDA Call to order Roll call 1. Approval of minutes of Regular HRA Meeting of AU9ust 20, 2007 2. HRA approval of agenda 3. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. . Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of mortgage foreclosure response program procedural guidelines S.R. No. 37 B. Consideration of approval of resolution requesting City Council to call for public hearing on modifications to City Bella, Interstate-Lyndale-Nicollet, Interchange, Gramercy, Urban Village, Interchange WestlLyndale Gateway, Richfield Rediscovered, Richfield Rediscovered II and Lyndale Gateway West tax increment financing districts S.R. No. 38 C. Consideration of approval of contract with Nilles Builders, Inc. for remodeling 7422 Fourth Avenue S.R. No. 39 D. Consideration of approval of housing services agreement with West Hennepin Affordable Housing Land Trust and authorizing use of Affordable Housing Initiative Fund for 7201 Nicollet Avenue development S.R. No. 40 Notes: . . . 4. Public hearing regarding Richfield Housing and Redevelopment Authority's annual Public Housing Authority Plan for Section 8 housing assistance program Staff Report No. 41 Notes: 5. Consideration of recommended Penn Crossings Task Force membership Staff Report No. 42 Notes: 6. Executive Director report 7. Claims and payroll - Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. . . . AGENDA ITEM # REpORT # 3A 37 ........ STAFF-REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 17, 2007 REpORT PREPARED By: VANESSA HAIGHT, HOUSING SPECIALIST NAME, TITLE REpORT PRESENTER: BRUCE P ALMBORG, COMMUNITY DEVELOPMENT DIRECTOR DEPARTMENT DIRECTOR REVIEw: NAME, TITLE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of the attached Mortgage Foreclosure Response Program Procedural Guidelines. I. RECOMMENDED ACTION: By Motion: Approve the attached Mortgage Foreclosure Response Program Procedural Guidelines_ I II. BACKGROUND I Following discussion at the May Housing and Redevelopment Authority (HRA) meeting, staff drafted the attached Mortgage Foreclosure Response Procedural Guidelines. The document provides an outline of options to pursue when given notice of foreclosure on an HRA lien. I III. BASIS OF RECOMMENDATION I I A. POLICY I . Previously, the HRA authorized an administrative process for responding to mortgage foreclosures. The attached guidelines offer staff more guidance when receiving a notice of foreclosure than the current administrative process provides. 091707 Foreclosure Guidelines . . . lB. CRITICAL ISSUES I . The guidelines outline a process to follow when receiving a notice of foreclosure and outlines options to consider. I C. FINANCIAL I . The HRA has established a revolving fund for foreclosure redemption. .1 D. LEGAL I . Legal counsel has been an ongoing resource on policy relating to foreclosures and as each foreclosure notice is reviewed and actions are taken to redeem. I IV. ALTERNATIVE RECOMMENDATION(S) I . Do not approve the Procedural Guidelines. . Recommend revisions to the Procedural Guidelines. I V. ATTACHMENTS I . Mortgage Foreclosure Response Program Procedural Guidelines I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A . . . \ ~A- / -.. ..~ Mortgage Foreclosure Response Program Procedural Guidelines This document has been developed as a guidance tool for program administration. This document should not be interpreted as constituting any contractual agreement or liability by the City or HRA. Statement of Purpose The goal of the Richfieid Mortgage Foreclosure Response Program is to consider the various options when a property with a HRA mortgage interest enters foreclosure. Proaram Objectives . To protect the HRA's mortgage interest. . To improve the housing stock for future homeowners. . To prevent foreclosure and keep homeowners in their home whenever feasible. Proaram Basics 1. After receiving a notice of foreclosure, staff contacts City Manager and HRA Chair. 2. Staff visits homeowner with information regarding foreclosure prevention. 3. Analysis on property, mortgage amount, foreclosure status, etc. is completed. 4. Decision is made to: purchaselrehab/sell, purchase/demolish/sell, or negotiate repayment of HRA lien. Redemption/Purchase 1. Redemption should only be pursued when a comfortable margin exists between the potential resale price and the estimated costs of redemption, rehabilitation, and sale. Rehabilitation 1. The purchased homes will be rehabilitated to meet the Point of Sale requirements. This level of rehabilitation will ensure a safe living environment for the future homeowner and conserve HRA resources. 2. Staff will coordinate the rehabilitation, with assistance from non-profit organizations as needed. Demolition 1. In some instances, the property in foreclosure may be a qualifying substandard dwelling that is in a condition that it should be demolished as substandard and by removal becomes a vacant lot for an affordable New Home or a Richfield Rediscovered home. Sale 1. Once the HRA purchases the property, the HRA will consider an offer from former owner to purchase the home back at market value. 2. The rehabilitated homes, at a minimum, will be sold at a price to cover HRA costs. The HRA will decided the level of sale on a case by case basis (Le. market-rate, 80% AMI, 60% AMI, etc.). 3. Staff will market the home for sale and facilitate the sale. The use of non-profit organizations or realtors may be used when needed. Legal counsel will be utilized during the resale process. 091707 Foreclosure Guidelines . . . SA-2 "Short Sales" 1. It is not unusual for a mortgage company to approach the HRA with an offer to buy the HRA's mortgage interest due to a "short sale". A short sale typically occurs under dire circumstances. In such. sales, the lender lets the borrower sell the house for less than the outstanding loan amount, takes the proceeds and forgives any remaining overage. Banks are willing to do so because they often lose less on these deals than they do in foreclosures. Short sales are pre- foreclosure strategies that allow a homeowner to get out before foreclosure proceedings occur. 2. Staff will consider short sale offers and negotiate as high of repayment as possible. Action will be taken quickly as to not to disrupt the short sale opportunity and cause the homeowner to enter into foreclosure. AGENDA ITEM # 3B REpORT # 38 . .... STAFF REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 17, 2007 REpORT PREPARED By: MYRT LINK, COMMUNITY DEVELOPMENT ACCOUNTANT NAME, TITLE REpORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR DEPARTMENT DIRECTOR REVIEW: NAME, TITLE rn/ ,// L.:J l ; REVIEWED BY EXECUTIVE DIRECTOR: . ITEM FOR BRA CONSIDERATION: Approve a resolution requesting the City Council to call for a public hearing on the Modifications of the City Bella, I nterstate-Lyndale-Nicollet, Interchange, Gramercy, Urban Village, Interchange WestlLyndale Gateway, Richfield Rediscovered, Richfield Rediscovered II, and Lyndale Gateway West Tax Increment Financinq Districts. I. RECOMMENDED ACTION: By Motion: Approve a resolution requesting the City Council to call for a public hearing on the Modifications of the City Bella, Interstate- Lyndale-Nicollet, Interchange, Gramercy, Urban Village, Interchange WestlLyndale Gateway, Richfield Rediscovered, Richfield Rediscovered II, and Lyndale Gateway West Tax Increment Financing Districts. I II. BACKGROUND I Every year the Housing and Redevelopment Authority (HRA) completes an annual Tax Increment Report, which is required by State Statue, for each Tax Increment District with activity. This report is sent to the Office of the State Auditor (OSA) for review and comment. . . . . These reports contain a section that presents by line item the proposed district budgets and compares them to the actual district revenues and expenditures. The reports present the financial activity starting from the creation of the district and ending in the last budget year. The OSA has given guidelines as to how the budget and accounting sections should be reported. The objective of this modification is to adjust the line item district budgets and the actual district revenues and expenditures so they reflect the current OSA guidelines. This modification does not increase any of the Tax .Increment Districts' budgets, revenues or expenditures. It also does not increase the term or size of any of the districts. It is a technical modification. I III. BASIS OF RECOMMENDATION I I A. POLICY I . It has been the direction and policy of the HRA and City Council to follow any and all of the OSA policies and guidelines. lB. CRITICAL ISSUES I . By not modifying the line item budgets, revenues or expenditures of the Tax Increment Districts, it may result in a finding of noncompliance from the OSA in the future. I C. FINANCIAL I . The HRA and City's financial advisor, Ehlers and Associates, has reviewed the proposed modification and has stated that the approval of this modification will not have any financial impact on the HRA or City. I D. LEGAL I . The HRA and City's legal counsel, Kennedy & Graven, has reviewed the proposed modification and have stated that the approval of this modification will not have any legal impact on the HRA or City. I IV. ALTERNATIVE RECOMMENDATION(S) I . Do not recommend that the City Council hold a public hearing. I V. ATTACHMENTS . Resolution I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . Sid Inman, Ehlers and Associates j6-1 . RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY CITY OF RICHFIELD HENNEPIN COUNTY, STATE OF MINNESOTA RESOLUTION NO. RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF RICHFIELD CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE MODIFICATIONS OF THE CITY BELLA, INTERSTATE- L YNDALE-NICOLLET, INTERCHANGE, GRAMERCY, URBAN VILLAGE, INTERCHANGE WEST/L YNDALE GATEWAY, RICHFIELD REDISCOVERED, RICHFIELD REDISCOVERED II, AND LYNDALE GATEWAY WEST TAX INCREMENT FINANCING DISTRICTS. (REDEVELOPMENT DISTRICTS) BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Richfield Housing and Redevelopment Authority, Richfield, Minnesota (the "HRA") as follows: WHEREAS, the City Council (the "Council") of the City of Richfield, Minnesota (the "City") established the Richfield Redevelopment Project Area pursuant to Minnesota Statutes, Sections 469.174 to 469.1799, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the HRA is proposing the modification of the Richfield Redevelopment Project Area and the Modifications of the City Bella, Interstate-Lyndale-Nicollet, Interchange, Gramercy, Urban Village, Interchange. West/Lyndale Gateway, Richfield Rediscovered, Richfield Rediscovered II, and Lyndale Gateway West Tax Increment Financing Districts., pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 to 469.1799 and Sections 469.001 to 469.047, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: . 1. The HRA hereby requests that the Council call for a public hearing on November 13, 2007, to consider the proposed adoption of the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and the proposed adoption of the Modifications of the City Bella, Interstate-Lyndale- Nicollet, Interchange, Gramercy, Urban Village, Interchange West/Lyndale Gateway, Richfield Rediscovered, Richfield Rediscovered II, and Lyndale Gateway West Tax Increment Financing Districts. (collectively, the "Modifications") and cause notice of said public hearing to be given as required by law. 2. The HRA directs the Executive Director to transmit copies of the Mo<,lifications to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Modifications are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the HRA is hereby directed to submit a copy of the Modifications to the Council for its approval. 4. The HRA directs the Executive Director to transmit the Modifications to the county and the school district(s) in which the Tax Increment Financing Districts are located not later than October 12, 2007. 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Modifications and related documents and to undertake other actions necessary to bring the Modifications before the Council. Approved by the Board on September 17, 2007 . Suzanne M. Sandahl, Chair ATTEST: Steven L. Devich, Executive Director . . . AGENDA ITEM # 3C REpORT # 39 ~ STAFF REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 17, 2007 REpORT PREPARED By: VANESSA HAIGHT, HOUSING SPECIALIST NAME, TITLE REpORT PRESENTER: BRUCE P ALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of contract with Nilles Builders, Inc. for remodeling at 7422 4th Avenue. I. RECOMMENDED ACTION: By Motion: Approve the attached contract with Nilles Builders, Inc. for remodeling at 7422 4th Avenue. I II. BACKGROUND I The Housing and Redevelopment Authority (HRA) became owner of 7422 4th Avenue on February 27,2007 as a result of redeeming property from the foreclosure process. Subsequently the former owner vacated the property. The property is in need of multiple repairs and cosmetic enhancements in order to be marketed for sale. Two bids for remodeling were obtained and the lowest bidder has been identified as Nilles Builders, Inc. Upon completion of the remodeling, the house will be ready for sale. 09170774224th Rehab Contract . . . 6c'-1 Richfield Housing And Redevelopment Authority WORK CONTRACT The contact person is Vanessa Haiaht. Housina Specialist. 612-861-9778 The Contractor performing the work under this Contract (Contractor) is Nilles Builders. Inc. The Owner of the property to be improved under this Contract (Owner/Agency) is Richfield HRA, and the property is located at 7422 4th Avenue South, Richfield, MN. CONDITIONS 1. Rehabilitation Loan Proaram The Contractor understands that the Owner/Agency proposes to pay for the work in whole or in part and agrees that no payment shall be due until the work is completed, invoiced, inspected, and approved by the Owner/Agency. 2. Permit And Codes Prior to the start of work, the Contractor shall secure all necessary permits and licenses required to perform the work called for by this Contract. All such work shall be in compliance with all building code regulations and ordinances, whether or not included in the specifications and drawings for the work. Failure to secure a permit will result in penalty fees by the Richfield Inspections Division. 3. Insurance The Contractor agrees that it will at all times during the term of this Contract have and keep in force the following minimum insurance coverages: Limits Statutory $100,000 $300,000 BI & PD Included Included Included Included Included Included $300,000 BI & PD Coveraae Workers Compensation Employer's Liability Comprehensive General Liability Independent Contractors Contingent Liability Products/Completed Operations Liability Contractual Liability Personal Injury Liability "XCU" Liability (if applicable) Broad Form Property Damage Comprehensive Automobile Liability for owned, hired, and non-owned automobiles 4. Hold Harmless To the fullest extent permitted by law, the Contractor agrees to defend, indemnify and hold harmless the Owner/Agency, their officers, agents and employees from and against all claims, loss, damage, costs and expense arising from bodily or personal injury or sickness, illness, or death of persons or damage to property resulting from or alleged to have resulted from the Contractor's operation. 5. Chanaes In The Work a. Changes in the type, amount or cost of work shall be considered an Amendment. No such changes shall be made without PRIOR written approval to the Contractor by the Owner/Agency. All changes made before receipt of an Amendment Request approved by the Agency will be ineligible for reimbursement. The Amendment Request Certificate must: . i) ii) iii) 3C-J- Be signed and dated by the Contractor and the Owner/Agency; and Specify improvement to be changed and cost per item; and Specify reason for cost increase/decrease to previously bid item and amount of increase/decrease. b. Upon receipt of an Amendment Request signed by the Contractor, the Owner/Agency will approve or disapprove the Amendment Request after appropriate review and property inspection. If approved, a copy of the signed Amendment Request will be forwarded to the Contractor. Upon receipt by the Contractor of the approved Amendment Request, the approved changes may be implemented. c. Any additional repairs or costs incurred without approval of an Amendment Request Certificate will not be paid for by the Owner/Agency. 6. General Guarantee The Contractor hereby warrants to the Owner/Agency and to subsequent owners of the property to be improved, that all materials, hardware, fixtures, and utilities, of whatever kind or nature, incorporated in said dwelling by the Contractor are of good quality and free from defects in workmanship or materials; that Contractor shall repair, correct, or replace at no cost to the Owner/Agency or subsequent Owners any instances of defective workmanship or materials subject to the Warranty contained in this paragraph. The warranty set forth in this paragraph however, shall apply only to such defects identified by the Owner/Agency or subsequent Owners in writing to the Contractor, at its principal place of business, within two years from the date of execution of the Completion Certificate by all parties hereto. 7. Assianments No assignment of this Contract shall be made without the written consent of the Owner/Agency. . 8. Lien Waivers a. The Contractor shall protect, defend and indemnify the Owner/Agency from any claims for unpaid work, labor or material. Payment shall not be due until the Contractor has delivered to the Owner/Agency complete release of all liens arising out of this Contract or receipt in full covering all labor and materials for which a lien could be filed or a bond satisfactory to the Owner/Agency indemnifying owner against any lien. b. The Contractor shall list on the attached sworn construction statement the names of all suppliers and/or subcontractors who will provide materials, services or labor at the property to be improved under this Contract. The Contractor will notify the Owner/Agency of any changes in suppliers/subcontractors before the start of the work. 9. Eaual Emplovment Opportunity . a. Pursuant to Executive Order 11246, as amended: The Contractor will not discriminate against 'any employee or applicant for employment because of race, creed, color, sex or national origin. The Contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, sex or national origin. b. Pursuant to Section III of the 1968 Housing Act: Opportunities for training and employment by Contractor shall to the greatest extent feasible be given to lower income residents of the area of the realty affected hereby, and to the greatest extent feasible contracts or subcontracts for work in connection with this Bid and Proposal shall be awarded to business concerns located in or owned in substantial part by persons residing . 2 R:\CDAdmin\HOUSING\Foreclosure Program\7422 4th\Work Contract.doc . 10. 11. 12. 13. . 14. j c.,. .3 in the area of the property affected hereby pursuant to Section III of the 1968 Housing Act, 12 U.S. C. 1701. Provisions Bv Owner Owner/Agency shall permit the Contractor to use, at no cost, existing utilities such as light, heat, power and water which are reasonably necessary to carry out and complete the work. Owner/Agency shall cooperate with the Contractor to the extent feasible and necessary to facilitate the performance of the work. Condition Of Premises Contractor agrees to keep the premises clean and orderly during the course of the work and to remove all debris at the completion of the work. Materials and equipment that have been removed and replaced as part of the work shall belong to the Contractor unless stated otherwise. Personnel And Local Public Officials No officer, agent, employee or public official of the Owner/Agency who exercises any functions or responsibilities in connection with the administration of the Rehabilitation Deferred Loan Program, and no member of the governing board(s) of the City or County shall have any interest, direct or indirect, in this Contract. Contract Documents The Contract Documents consist of this Work Contract (including the General Conditions), the Scope of Work proposal attached, drawings (where specified), all Addenda issued prior to this Work Contract, all Amendment Request Certificates approved by the Owner/Agency, and written interpretations of the Contract documents issued by the Owner/Agency. These form the Contract and whatever is required by anyone of these shall be binding as if required by all. Commencement And Completion Of Work And Liauidated Damaaes a. Upon acceptance of this bid the work will be started within three weeks and shall be satisfactorily completed within 60 days. In the event the work is not begun within that time, the Owner/Agency is entitled to dismiss the Contractor without recompense and appoint substitute Contractor(s). If the Contractor is unable to beain the work within the above period. it must notify the Owner/Aaencv promptlv. b. In the event the work is not completed within the stated time period, the Contractor and its sureties shall be assessed liquidated damages of one percent (1 %) of the total contract price or $50.00, whichever is greater, per day for each calendar day of delay, excluding Saturdays, Sundays, and Holidays. This sum shall be deducted from the contract price at the time of final payment. c. The following circumstances, and only these circumstances, will at the Owner/Agency's discretion be considered legitimate cause for a change in the start or completion date: i) ii) iii) iv) . v) Material Delay. Material delays that are beyond the control of the Contractor which can be shown to have directly caused the overall late completion. Adverse Weather Conditions. Weather conditions that directly affect the scheduling of exterior work over a significant portion of the contract term. Strikes. Contractors who face union work stoppage in the case where they have to rely on such a work force in order to complete the work. Change Orders. Significant changes in the original Scope of Work which can be reasonably shown to require an extension of completion time. Emergencies. Accidents, death, or illness in the immediate family which necessitate a significant leave of absence from the job. 3 R:\CDAdmin\HOUSING\Foreclosure Program\7422 :4th\Work Contract.doc . 15. . 17. 18. 19. . oC,-y vi) Proven lack of cooperation from the Contractor or the Contractor's agents resulting in delays in the progress of the improvements. Acknowledament The above warranties are in addition to, and not in limitation of, any and all other rights and remedies to which the Owner/Agency, or subsequent Owners, may be entitled, at law or in equity, and shall survive the conveyance of title, delivery of possession of the property, or other final settlement made by the Owner/Agency and shall be binding on the undersigned notwithstanding any provision to the contrary contained in any instrument heretofore or hereafter executed by the Owner. 16. Provisions Reaardina Lead Hazards The Contractor is fully responsible for the means and methods of executing the contracted work. The Contractor warrants that it is trained in lead safe work practices and lead hazard reduction, if lead work is included in this contract. The Contractor agrees to defend and hold the Owner/Agency harmless in the event of any claims assessed or fines levied by federal or local agencies with regard to the lead hazard reduction work. The Contractor agrees to immediately satisfy all fines or judgments presented by OSHA, EPA, local or state health departments, the state office of lead hazard control, and any other governmental agency having jurisdiction over the lead hazard reduction work at the Owner's property. The Contractor represents and warrants that all workers involved in lead hazard reduction activities will be supervised by an EPA certified supervisor or have received HUD approved training in lead safe work practices. The Contractor ensures that all waste, both hazardous and non-hazardous, is managed and disposed of in accordance with state and federal regulations. a. Cleaning Examinations i) The Contractor is responsible for cleaning work areas at the Owner/Agency's property using lead hazard reduction techniques, and according to lead based paint standards. ii) Cleaning includes removal of visible debris and dust by HEPA vacuuming and wet cleaning as recommended in HUD regulation 24 CRF 35. 1330(a)(4). Arbitration Any controversy or claim arising out of this Contract, or the breach thereof, shall be settled by arbitration in accordance with the Construction Industry Rules of the American Arbitration Association (hereinafter called the AAA), unless the parties mutually agree otherwise. Notice of the demand for arbitration shall be filed in writing with the other party to the Contract and with the AAA, and shall be made within a reasonable period of time. The AAA administration fee shall be advanced by the initiating party in accordance with the AAA Administrative Fee Schedule, subject to final apportionment by the arbitrator(s) in the award. Judgment upon the award rendered by the arbitrator(s) may be entered into any court having jurisdiction thereof. Errors and Omissions Errors, mistakes, omissions or unauthorized changes made by the Contractor or its agents, workers, or employees, and any damage that may result therefrom, shall be rectified by the Contractor at the Contractor's own expense. Payment Process In order to receive reimbursement for the contracted work, the Contractor agrees to provide the Agency with the following documentation: a. an itemized bill for the completed work; and b. properly executed Completion Certificate and Sworn Construction statement; and c. all relevant lien waivers. 4 R:\CDAdmin\HOUSING\Foreclosure Program\7422 4th\Work Contract.doc . . . 3C,5 No advance payments will be made. The Contractor may request payment for completed portions of the work, provided that all documents referenced above are submitted, and provided that the amount requested is 30% of the total contract price or $500.00, whichever is greater. Partial payments will be 90% of the submitted amount with the balance made up in the final payment (subject to any liquidated damages). 5 R:\CDAdmin\HOUSING\Foreclosure Program\7422 4th\Work Contract.doc . 20. 3Q-{P Execution Of Contract For the consideration named herein, the undersigned Contractor agrees to furnish all work, material and labor to complete work shown on the Scope of Work and to comply in every respect with. the specifications and the general conditions outlined above. The Contractor understands that the total amount of contracted work is $24,051. Acceptance Bv Contractor Acceptance Bv Owner/Aaencv Richfield Housing and Redevelopment Authority 6700 Portland Ave S Richfield, MN 55423 Firm Name Firm Address City Chairperson State Zip Code Signature of Contractor State Lead License No. . Date . Executive Director Date 6 R:\CDAdmin\HOUSI NG\Foreclosure Program\? 422 4th\Work Contract.doc . . . 2> e--1 SWORN CONSTRUCTION STATEMENT The undersigned, hereinafter called "Contractor", being first duly sworn, as Contractor improving the property having the following address in the State of Minnesota: , Richfield, deposes and states that the following are the names of all parties who had or currently have contracts or subcontracts with the Contractor, for specific portions of the work on said property and building; or who had or currently have contracts or subcontracts with the Contractor for materials or who have contributed materials at the Contractor's request entering into the construction thereof; and that the items set forth below include all labor and materials contracted by or obtained at the request of the Contractor required to complete the work according to the specifications and drawings and the Contract; that there are no other contracts outstanding entered into by the Contractor or the Contractor's subcontractor(s). Laborers, Material Suppliers or Subcon-tractors Labor Provided Or Materials Supplied: Retained By the Contractor are Identified Below (attach additional names): Name of Contracting Firm Authorized Signature and Title STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) Subscribed and sworn before me, this day of 20 Notary Public NOTE: FAILURE TO INCLUDE ALL SUBCONTRACTORS AND MATERIAL SUPPLIERS IN THIS DOCUMENT COULD RESULT IN LEGAL ACTION BEING TAKEN AGAINST THE CONTRACTOR. H:\Cdadmin\HOUSING\DEFERRED\Standard Forms\Work Contract.doc 7 R:\CDAdmin\HOUSING\Foreclosure Program\7422 4th\Work Contract.doc . . . AGENDA ITEM # REpORT # 3D 40 ....... STAFF REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 17, 2007 REpORT PREPARED By: VANESSA HAIGHT, HOUSING SPECIALIST NAME, TITLE REpORT PRESENTER: BRUCE P ALMBORG, COMMUNITY DEVELOPMENT DIRECTOR DEPARTMENT DIRECTOR REVIEW: NAME, TITLE REVIEWED By EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of the attached Housing Services Agreement with West Hennepin Affordable Housing Land Trust and authorization of Affordable Housing Initiative Fund for 7201 Nicollet Avenue development. 1. RECOMMENDED,ACTION: By Motion: Approve Housing Services Agreement with West Hennepin Affordable Housing Land Trust and authorize use of Affordable Housing Initiative Fund for 7201 Nicollet Avenue development. I II. BACKGROUND I In 2005 the County awarded $80,000 in Affordable Housing Incentive Fund (AHIF) dollars to the Housing and Redevelopment Authority (HRA) for the development of permanently affordable housing in Richfield. The development partners and recipients of the funding were identified as WHAHL T and Habitat for Humanity at the time of the funding application and award. Half of the award, $40,000, will be applied to one of the homes being developed at 7201 Nicollet Avenue. The remaining AHIF dollars will be applied toward a 2008 project with Habitat for Humanity. The AHIF award requires sale to a household earning less than 50% Area Median Income (AMI) and requires the home to be permanently affordable. 091707 7201 Nicollet - Hsg Services Agreement . (Maximum income for a four-member family is $39,250.) WHAHL T will purchase the home from the developer (Greater Metropolitan Housing Corporation), sell the home to a qualified buyer, and hold a 99-year renewable ground lease to ensure permanent affordability. WHAHL T has a good reputation for evaluating family affordability for the purchase of housing. The Hou.sing Services agreement formalizes the relationship between the HRA and WHAHL T regarding the AHIF award. Hennepin County requires the HRA to also pass a resolution authorizing the use of AHIF dollars toward the Nicollet Ave project. I III. BASIS OF RECOMMENDATION I I A. POLICY I . The HRA has partnered with non-profit developers to construct 44 affordable homes since 1978. . The HRA has partnered with WHAHL T in the past to ensure sale to qualified households and to ensure permanent affordability. lB. CRITICAL ISSUES I . The Housing Services Agreementcommits $40,000 in AHIF dollars to WHAHL T for the sale of one home to a household earning 50% AMI or less. . Partnering with WHAHL T ensures the new homes will be permanently affordable, a requirement of the AHIF award. . . Hennepin County HRA will distribute the AHIF dollars to WHAHL T as conditions of the funding are met. . WHAHL T will also buy the second home developed at 7201 Nicollet Avenue from Greater Metropolitan Housing Corporation and sell to a household earning 80% AMI or less. However, no AHIF dollars will be provided to do so. . I C. FINANCIAL I . $40,000 in AHIF will be applied towards the sale price of one home. The HRA received this funding in 2005. To comply with program standards a project should be initiated in 2007. I D. LEGAL I . Legal counsel has reviewed the Housing Services Agreement. I IV. ALTERNATIVE RECOMMENDATION(S) I . Do not approve the Housing Services Agreement. . I V. ATTACHMENTS . Resolution . Housing Services Agreement I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A . . . 3 D-l HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE USE OF A $40,000 AFFORDALBE HOUSNIG INCENTIVE FUND LOAN FOR THE DEVELOPMENT AT 7201 NICOLLET AVENUE WHEREAS, Hennepin County Housing and Redevelopment Authority (HCHRA) in Resolution No. 05-HCHRA-B has approved the use of a $40,000 Affordable Housing Incentive Fund loan for the 7201 Nicollet Avenue project, contingent upon the Richfield Housing and Redevelopment Authority's consent to the HCHRA's participation in the project; and WHEREAS, the 7201 Nicollet Avenue project will increase/preserve the supply of affordable housing in the City of Richfield by providing two affordable single-family homes; and WHEREAS, the loan from the HCHRA will complete the financing required for the project to go forward. BE IT RESOLVED, that the participation of the Hennepin County Housing and Redevelopment Authority in the project is hereby approved. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17th day of September, 2007. Suzanne M. Sandahl, Chair ATTEST: Donna Drummond, Secretary 091707 7201 Nicollet - Hsg Services Agreement . . . 3 D-J- HOUSING SERVICES AGREEMENT THIS AGREEMENT is made as of this day of , 2007, by and between the Richfield Housing and Redevelopment Authority ("Richfield HRA") in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, 6700 Portland Avenue South, Richfield, MN 55423 and the WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST ("Provider"), 5101 Thimsen Avenue, Suite 200, Minnetonka, MN 55345. The Provider is a non-profit organization that provides affordable housing in the Minneapolis suburban area. The HRA wishes to contract with the Provider to provide affordable housing units at 7201 Nicollet Avenue South. The parties wish to set forth in writing the terms and conditions of their agreement. Therefore, in return for the mutual agreements set forth below, the parties agree as follows: 1. TERM The term of this Agreement is from the date of execution by both parties through October 1, 2008, unless terminated earlier as provided below. This Agreement may be extended upon written request from the Provider and approval by the HRA. 2. PAYMENT Subject to the terms of this Agreement, Hennepin County HRA will authorize payment to Provider $40,000 in Affordable Housing Initiative Fund (AHIF) dollars for one residential housing unit the Provider purchases pursuant to Section 3 of this Agreement. The funds are to be used solely for the Services described in Section 3 of this Agreement. Provider must submit a written request to Hennepin County HRA for payment. Provider shall provide any information Hennepin County HRA and Richfield HRA reasonably requires to verify that the funds will be used for the Services described in this Agreement. Payment will be made per conditions set forth by Hennepin County HRA. 3. SERVICES The Provider will use the AHIF dollars to purchase one residential property located in the City of Richfield and then re-sell the dwelling units but not the land to Eligible Purchasers. To qualify as an Eligible Purchaser, the buyer must have income no greater than 50% of the area median income for the Twin Cities Metropolitan area, as defined in Minnesota Statutes ~ 473.121, Subd. 2, as determined by the U.S. Department of Housing and Urban Development (or any successor agency), and cannot have owned a home within the past 36 months. The Provider must limit the equity participation of the Eligible Purchasers to no more than 33%. Provider shall enter into a Ground Lease with each Eligible Purchaser to ensure that the conditions described in this Section will apply to the property purchased pursuant to this Section. Provider shall properly record a memorandum of said Ground Lease in the Hennepin County land records. 4. NON-ASSIGNMENT Provider may not assign, subcontract, transfer, or pledge this Agreement and/or the services to be performed under it, whether in whole or in part, without the prior consent of the HRA. . . . 3D-3 5. RECORDS The Provider will maintain such records as are deemed necessary by Hennepin County HRA and Richfield HRA to ensure that the services are provided as represented by the Provider. 6. DISCRIMINATION The Provider agrees not to discriminate in providing services under this Agreement on the basis of race, sex, creed, national origin, age or religion. 7. CONFLICT OF INTEREST No officer, director, employee, or agent of Provider may engage in a conflict of interest in providing the services required under this Agreement. A "conflict of interest" is defined as engaging on behalf of the Provider in any matter that affects the person's financial interests outside of the person's duties with the Provider, the financial interests of a member of the person's immediate family, or those of a business with which the person is associated, unless the effect on the personal, relative, or business is no greater than on other members of the same business classification, profession or occupation. "Immediate family" is defined as the following relatives of the person or the person's spouse: siblings, parents, step-parents, grandparents, children, step-children, grandchildren, aunts, uncles, and first cousins. No salaried officer or employee of the HRA and no commissioner of the HRA shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the Agreement void. Any federal regulations and applicable state statutes shall not be violated. 8. SUSPENSION AND TERMINATION A. If Provider materially fails to comply with any term of this Agreement, fails to maintain its non-profit corporate status with the I.R.S. or the State of Minnesota, or fails to administer the work in a manner to endanger the performance of this Agreement, this constitutes noncompliance and a default. Unless Provider's default is excused by the HRA, the HRA may cancel this Agreement in its entirety. B. The HRA's failure to insist upon strict performance of any provision or to exercise any right under this Agreement cannot be deemed a relinquishment or waiver of the same. This will not constitute a general waiver or relinquishment throughout the entire term of the Agreement. C. This Agreement may be cancelled with or without cause by either party upon 90 days written notice. D. Funds allocated to Provider under this Agreement may not be obligated or expended by Provider following the date of termination. Any funds allocated to Provider under this Agreement, which remain un-obligated or unspent following the date of termination, shall be returned immediately by Provider to the HRA. E. In addition to any other rights the HRA may have, the HRA may immediately suspend payments during any period in which the HRA reasonably believes that the funds have not been or will not be used to provide the Services described in Section 3 of this Agreement. 9. INDEMNITY The Provider agrees to hold harmless, indemnify and defend the HRA, its elected officials, officers, agents, and employees against any and all claims, losses, or damages, including . . . 2> o-vt attorneys' fees, arising from, allegedly arising from, or related to, the provision of services under this Agreement by the Provider, its employees, agents, officers, or volunteer workers. 10. UNSPECIFIED SERVICES The HRA will honor no claim for services not specified in this Agreement. 11. AUDITS The books, records, documents, and accounting procedures and practices of the Provider or other parties relevant to this Agreement are subject to examination by the HRA for a period of six years after the effective date of this Agreement. 12. DISCRIMINATION In performance of this Agreement, the Provider shall not discriminate on the grounds of or because of race, color, creed, religion, national origin, sex, marital status, and status with regards to pUblic assistance, disability, sexual orientation, or age against any employee of the Provider, any subcontractor of the Provider, or any applicant for employment. The Provider shall include a similar provision in all contracts with subcontractors to this Agreement. The Provider further agrees to comply with all aspects of the Minnesota Human Rights Act, Minn. Stat. Section 363.01, et seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 13. PROVIDER'S PROMPT PAYMENT OF SUBCONTRACTORS The Provider shall pay to any subcontractor within ten (10) days of the Provider's receipt of payment from the HRA for undisputed services provided by the subcontractor. The Provider shall pay interest of one and a half percent (1 1/2 %) per month or any part of a month to a subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Provider shall pay the actual amount due to the subcontractor. 14. LIMITATION OF REMEDIES In the event of a breach of this Agreement by HRA, the Provider shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 15. INDEPENDENT CONTRACTOR Nothing in this Agreement is intended, nor may be construed, to create the relationship of partners or employer/employee between the parties. The Provider, its officers, agents, employees, and volunteers are, and will remain for all purposes and services under this Agreement, independent contractors. 3D-5' 16. NOTICES . Notices will be considered properly mailed if sent certified mail to the other party at the following address a. If to the HRA: Richfield HRA ATTN: Housing Specialist 6700 Portland Ave S Richfield, MN 55423 b. If to WHAHL T Executive Director West Hennepin Affordable Housing Land Trust 5101 Thimsen Avenue Suite 202 Minnetonka, MN 55345 17. ENTIRE AGREEMENT The entire agreement of the parties is contained in this document. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter of this Agreement. Any alterations, amendments, deletions or waivers of any provisions of this Agreement will be valid only when placed in writing. . WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST Richfield HRA By: Janet Lindbo By: Its Executive Director Its: By: Its: . . . . '3 [J-lc> STATE OF MINNESOTA ) )SS ) COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this _ day of ,2007, by Seven L. Devich the Executive Director of the Richfield HRA, in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota. Notary Public STATE OF MINNESOTA ) )SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of , 2007, by Suzanne M. Sandahl, the Chairperson of the Richfield HRA, in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota. Notary Public STATE OF MINNESOTA ) )SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of ,2007, by Janet Lindbo, the Executive Director of West Hennepin Affordable Housing Land Trust, a Minnesota non- profit corporation, on behalf of said corporation. Notary Public WordAmylWHAHL T/Housing Services Agreement AGENDA ITEM # REpORT # 4 41 . ..... STAFF REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 17, 2007 REpORT PREPARED By: L YNNETTE CHAMBERS, LEASED HOUSING SPECIALIST NAME, TITLE REpORT PRESENTER: BRUCE P ALMBORG, COMMUNITY DEVELOPMENT DIRECTOR REVIEWED BY EXECUTIVE DIRECTOR: NAME, TITLE DEPARTMENT DIRECTOR REVIEW: . ITEM FOR HRA CONSIDERATION: Public hearing regarding the approval of the Richfield Housing and Redevelopment Authority's annual Public Housing Authoritv Plan. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve the Housing and Redevelopment Authority's annual Public Housing Authority Plan for the Section 8 Housing Assistance Program and authorize the Chair and Executive Director to execute program documents. I II. BACKGROUND I The Quality Housing and Work Responsibility Act of 1998 (QHWRA) was created by Congress. It requires the Housing and Redevelopment Authority (HRA)' as a Public Housing Agency (PHA), to have a five-year plan and an annual plan. The five-year PHA Plan describes the housing mission of the Agency and the Agency's long-range goals and objectives for achieving its mission over the subsequent five years. The annual PHA Plan provides details about the Agency's immediate operations, program participants, and programs and services and the Agency's strategy for addressing the needs of the community in the upcoming fiscal year. Staff has developed a PHA Plan in proper form and content. . 091707 Section 8 PHA Plan . In addition, QHWRA requires the HRA to maintain a "Resident Advisory Board" to make comments about the PHA Plan. The Resident Advisory Board, made up of program tenants that volunteer to provide feedback, had no additional comments to the PHA Plan. I III. . I IV. BASIS OF RECOMMENDATION I I A. POLICY I . The HRA must formally adopt the PHA Plan following a public hearing. . The Department of Housing and Urban Development (HUD) requires the HRA Chair and Executive Director to execute documents. . HUD has designated Richfield as a high performer; signaling a high level of performance. . The public hearing notice of 45 days has not generated any comments or concerns. I B. CRITICAL ISSUES I . Failure to approve the PHA Plan will result in receiving a non-compliance status with HUD. "Non-compliance" violates the contracts that the HRA has with HUD and results in a loss of administrative and rent assistance funds. I C. FINANCIAL I . The HRA has four contracts for administrative and rent assistance funds with HUD. . Annually, the HRA receives approximately $1,442,580 for rental assistance payments and $150,456 for administrative payments. A current PHA Plan is a requirement of these contracts. I D. LEGAL I . The Housing Assistance Program (HAP) contracts that the HRA has with HUD have been previously reviewed and approved by legal counsel. . Proper notice was published onAugust 1,2007 in the Sun Current of the availability to review the PHA Plan and of the public hearing to be held concerning PHA Plan approval. The publication schedule is in compliance with HUD regulations. ALTERNATIVE RECOMMENDATION(S) I . 'Do not approve the PHA Plan at this time. (The HRA would not be in compliance with HUD). IV. ATTACHMENTS . Summary Update (Attachment A) . I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A . . . L/-I Attachment A Summary Update Richfield HRA Annual Plan, Year 2008 September 17, 2007 The annual Pubic Housing Agency Plan (PHA Plan) is a 16-page document. Known as HUD Form #50075-SA, this PHA Plan provides a standard way for all PHA Plans and the Richfield Housing and Redevelopment Authority (HRA) to report that the PHA Plan complies with all federal regulations. To summarize: . The mission of the HRA is the same as HUD's: to promote adequate and affordable housing, economic opportunity and a suitable living environment free from discrimination. · The HRA goals are to: ~ Secure more rental vouchers when available. ~ Acquire and/or build affordable housing. ~ Improve program administration (Richfield is already a high performer.) ~ Increase program participation by landlords. ~ Promote client self-sufficiency. ~ Ensure equal opportunity and fair housing standards are achieved. The PHA Plan document ends with: . a drug-free certification form; . a certificate that no payments have been made to influence federal transactions; and . a three page certification form that the HRA does and will comply with all applicable federal regulations as listed on the certification and signed by the HRA Chair. The annual PHA Plan in its entirety is always available to the HRA and the public, and the PHA Plan is available for review at the Community Development Department. . . . AGENDA ITEM # REpORT # 5 42 ....... STAFF REpORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 17, 2007 REpORT PREPARED By: JOHN STARK, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE REpORT PRESENTER: BRUCE P ALMBORG, COMMUNITY DEVELOPMENT DIRECTOR DEPARTMENT DIRECTOR REVIEW: NAME, TITLE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of recommended Penn Crossings Task Force membership. 1. RECOMMENDED ACTION: By Motion: Approve the recommended Penn Crossings Task Force membership. I II. BACKGROUND On July 26, 2006 the Richfield Housing and Redevelopment Authority (HRA) entered into an agreement with the Hoisington Koegler Group, Inc. (HKGi) to conduct the Penn Crossings Neighborhood Study. The purpose of this study was to expand upon the Penn Avenue Visioning Study, which had been completed by University of Minnesota students in 2006. The contract with HKGi called for the establishment of a Neighborhood Advisory Committee to "review information and provide guidance at key points during the project". A committee of eleven to fourteen members representing the residential and commercial interests primarily from the immediate area - but also of the City as a whole would be ideal. cdadmin/HRAL TR/2007/091707 Penn Crossings Committee . Based on this information and on the input from the City CQuncil at their September 11 meeting, it is recommended that a 14 to 16 member committee be created with the following membership makeup: Proposed Penn Crossinas Neiahborhood Advisory Committee (14 - 16 members) 3 to 5 Local Businesses . Chosen from businesses along Penn Avenue 1 Chamber of Commerce Representative . . Chosen by the Chamber of Commerce 1 Attainable Housing Committee Representative . Chosen by the Attainable Housing Committee 1 Bicycle Task Force Representative . . Chosen by the Bicycle Task Force 1 Transportation Committee Member . Chosen by the Transportation Committee . 1 Planning Commission Member . Chosen by the Planning Commission 5 Homeowners and 1 Residential Tenant from the General Area with at least one year of residency in the community The City COuncil would be asked to provide final approval of those individuals identified to fill the various roles within the Neighborhood Advisory Committee. I III. BASIS OF RECOMMENDATION I I A. POLICY I . Past practices'would indicate that Neighborhood Advisory Committee membership should include the interests of the Penn Avenue area residents and businesses as well as interests of the City as a whole. . The City Council considered this same item at their September 11th meeting and their input is reflected in the staff recommendation. lB. CRITICAL ISSUES I . The creation of the Neighborhood Advisory Committee is included in "Task 1" of the consultant's contract that includes a total of 5 tasks. In order to advance the study, the creation of the Neighborhood Advisory Committee at this time is necessary. . I C. FINANCIAL . . . . There are no financial impacts associated with this recommended action that go beyond the approved contract with HKGi for the Penn Crossings Neighborhood Study. ID. LEGAL . N/A I IV. ALTERNATIVE RECOMMENDATION(S) I . Work with the Richfield City Council on the creation of a Neighborhood Advisory Group with a different membership roster. I V. ATTACHMENTS . N/A I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A