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091514CompleteAgenda CITY OF RICHFIELD, MINNESOTA MONDAY, SEPTEMBER 15, 2014 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE �*�***�****,�******�****,�******�*�***********************�*�*�*,�**********,�*,�**,�*�******�*,�************* SPECIAL CONCURRENT CITY COUNCIL AND HOUSING AND REDEVELOPMENT AUTHORITY WORKSESSION BARTHOLOMEW ROOM 6:00 P.M. AGENDA Call to order 1. Presentation from Myron Orfield, Director of the Institute on Metropolitan Opportunity, regarding concerns about discrimination in housing and education policy (Council Memo No. 89/HRA Memo 34) Notes: Adjournment *****************�*�************�****�****�*�*�****�*�*,�***,�**,�************�***�*,�,�*�*************�**** REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA Call to order 1. Approval of the minutes of the Regular HRA Meeting of August 18, 2014 2. HRA approval of the agenda 3. Consideration of the Richfield HRA Tax Increment District status update Staff Report No. 33 Notes: 4. Public hearing regarding approval of the HRA's Five-Year Public Housing Authority Plan for the Section 8 Housing Assistance Program Staff Report No. 34 Notes: 5. HRA discussion items Notes: 6. Executive Director Report Notes: 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. CITY OF RICHFIELD, MINNESOTA Office of City Manager September 4, 2014 Council Memorandum No. 89 HRA Memorandum No. 34 Housing and Redevelopment The Honorable Mayor Authority Commissioners and City of Richfield Members of the City Council Subject: September 15 Joint City Council/HRA Worksession Council Members and Commissioners: A joint Worksession of the Richfield City Council and Housing and Redevefopment Authority (HRA) has been scheduled for 6:00 p.m. on Monday, September 15 in order to hear a presentation from Myron OrField regarding his concerns about discrimination in housing and education policy. In addition to being a former State Senator and Congressman, Mr. Orfield is a law professor at the University of Minnesota and the Director of the Institute on Metropolitan Opportunity. With regards to housing, Mr. Orfield is concerned that current regional policy concentrates minority population rather than providing housing opportunities throughout the region. Mr. Orfield is also concerned that the way in which Minnesota schools are intended to promote racial integration (Minnesota State Statute 3535) needs to be amended in order to achieve its results. Attached are two documents provided by Mr. Orfield summarizing these concerns. Re p, ly submitted, te n . Devi City Manager SLD:jcs Attachments Email: Department Directors Assistant City Manager SUMMARY: Housing Discrimination Complaint The distribution of affordable housing within the Twin Cities is heavily segregative. The two central cities together only contain 23 percent of regional population,but 55 percent of the region's non-white residents. They also contain over half the region's subsidized affordable housing: 37 percent in Minneapolis and 21.7 percent in Saint Paul. Affordable housing in the central cities is typically segregated twice over: both at the municipal level and at the neighborhood level. First, by restricting access to housing to the two core cities, state, local, and regional governments have prevented racial minorities from accessing the many entry-level jobs and high-quality schools found in the suburbs. Beyond that, however, affordable housing in the cities is also far more likely to be placed in a segregated neighborhood than affordable housing elsewhere. For example, in Minneapolis,the quartile of census tracts with the highest minority populations contain only 17 percent of all housing units but 49 percent of subsidized units, while the quartile with the lowest minority population contains 30 percent of total units but a mere 1.3 percent of subsidized units. The highly segregated neighborhoods where affordable units are located are almost universally afflicted by a range of severe problems: extremely low incomes, low economic opportunity, poor health outcomes, poor educational opportunity, and predatory or nonexistent lending. Housing segregation has also led to increasing school segregation. In the early 1990s, only about 2,000 (or 2.5 percent) of the region's non-white students were in schools that were more than 90 percent non-white and only 3 percent of the region's population lived in majority non-white, high poverty areas. During the next two decades,this all changed. By 2010 the number of schools made up of more than 90 percent non-white students had increased more than seven-fold(from 11 to 83); the number of nonwhite students in those highly segregated environments had risen by more than 10 times (from 2,000 to 25,400), a percentage increase from 2.5 percent to 16 percent; and the share of the regional population in majority nonwhite, high poverty areas rose by three times to 9 percent. Other metros of roughly the same size and with similar racial demographic histories have not shown the same patterns of discrimination. In addition, some demographically similar cities are showing declines in segregation, not increases. For example, in 2012, 19 percent of low- income black residents of the Twin Cities lived in high-poverty census tracts (up from 13 percent in 2000) compared to just 3.4 percent of low-income black residents in Seattle (down from 3.5 percent in 2000) and 1.6 percent in Portland(down from 1.9 percent in 2000). The number of schools in the Portland metro made up of more than 90 percent non-white students was just 2 in 2009 (up from 0 in 2000); in Seattle it was only 25 (up from 14); and in Pittsburgh it was 25 (down from 27). The Metropolitan Council, Minnesota Housing(MHFA), Minneapolis, and Saint Paul have all played a role in creating this multilayered segregation. First,the Met Council, under the state's Land Use Planning Act, has a statutory obligation to require that municipal comprehensive plans adequately provide for local housing needs, including by providing land zoned for low and moderate housing needs. Until the mid-80s, the Council enforced this requirement and withheld funding to communities that allowed exclusionary zoning, resulting in over 8500 acres zoned for affordable housing throughout the region. Enforcement, however,has ceased, and 78 percent of this land has reverted to exclusionary uses, while the excluding communities continued to receive federal and local funding. The Met Council also began setting affordable housing goals for regional communities, assigning the highest goals to the central cities and racially transitioning inner-ring suburbs. In addition, several mechanisms work to direct affordable housing funding to the central cities, and to segregated neighborhoods, instead of higher-income,higher-opportunity suburbs. First,the single largest source of affordable funding for new construction, the Low Income Housing Tax Credit(LIHTC), is disproportionately allocated to the cities, which receive, on average, 45_percent of the entire region's yearly tax credit share. The same is true for all federally supported housing programs. Section 8 vouchers are placed in an even more segregated pattern. This is the result of policies instituted by the Met Council and Minnesota Housing. LIHTC are provided by the federal government,but states may develop their own distribution systems. In most of the Minnesota, MHFA serves as the primary agency for allocating tax credits. In the metro region, however, Minneapolis, Saint Paul, Dakota County, and Washington County are all considered"suballocators." Suballocators receive a predetermined portion of the metro area's tax credit share each year, which their respective housing agencies can allocate independently. By statute, the Met Council has discretionary authority to set these suballocator shares, in collaboration with MHFA. The Met Council has chosen to distribute suballocator shares in a highly segregative fashion: it gives Minneapolis and Saint Paul a combined 35 percent of the regional tax credits, despite the fact that the cities themselves are highly nonwhite, and furthermore, have demonstrated a consistent pattern of funding affordable housing in segregated neighborhoods. Through a"nonprofit set-aside," some projects in the two central cities are eligible for another 10 percent of the metro's total tax credits. MHFA, which has the ability to adjust the Met Council's allocations, has instead retained this segregatory policy. After passing through the suballocator system, tax credits are assigned to individual projects by a competitive point system, which prioritizes projects on the basis of project characteristics. MHFA, Minneapolis, and Saint Paul all maintain point systems which heavily emphasize characteristics likely to be satisfied by segregated developments in the urban core— e.g., geographic proximity to light rail and bus rapid tranist, homeless housing, use of preexisting infrastructure, single-room occupancy units, and the incorporation of a neighborhood stabilization plan—but place very little emphasis on characteristics likely to be satisfied by integrated or suburban developments. For example, the MHFA system assigns hundreds of possible points,but only five are available for economic integration, and none at all for racial integration. The central cities' point systems are similarly uneven, a factor which contributes greatly to their highly segregative placement of units. Other funding sources are also heavily weighted towards the central cities. For instance, the Met Council maintains a ranked list of nearly 200 communities for housing funding priority. Saint Paul and Minneapolis are first and second on the list, respectively; most of the inner-ring suburbs are in the top quartile; and many white outer-ring suburbs are in the second quartile or below. Furthermore, outside of LIHTC, MHFA maintains a diverse array of funding vehicles for affordable housing projects. Approximately 52 percent of the units supported by this funding are located in Minneapolis and Saint Paul. The Twin Cities also has some of the worst lending discrimination and patterns of racial steering in the nation, but agencies receiving federal housing dollars have done nothing thus far to assure fair landing or equal treatment by real estate agents. For instance, very high income black loan applicants are more likely to be denied a loan than low income white applicants. This has led to concentrations of subprime lending—and consequently, concentrations of foreclosures —in the Twin Cities' poorest and most heavily segregated neighborhoods, especially in Minneapolis and Saint Paul. Rather than address lending discrimination,the cities have continued to work with banks and housing financial organizations to acquire foreclosed properties at a reduced price, for conversion into affordable units in the same distressed neighborhoods. In addition to contributing to the creation of these disparities, the Met Council has not taken sufficient steps to identify or correct them. In its recent Fair Housing Equity Assessment (FHEA),the Met Council was required by federal guidelines to discuss impediments to fair housing choice, in order to make local governments "fully aware of the existence, nature, extent, and causes of all fair housing problems, and the resources available to stop them." It was also required to review the laws, regulations, and administrative policies affecting fair housing issues in the region. It did neither. By failing to conduct the required analysis, it omitted from its FHEA the primary causes of continuing housing segregation in the Twin Cities: poorly constructed policies that prioritize affordable housing construction in the central cities, and the Council's own refusal to carry out its statutory obligations to promote fair housing. SUMMARY: RULE 3535 PETITION TO AMEND In 1999, the Minnesota Department of Education released a new school integration rule, Rule 3535. In doing so, it both significantly weakened its previous integration plan, and overrode a draft rule proposed by the State Board of Education, which had undertaken a years-long study of the issue. The state should amend Rule 3535. Three major pieces of new evidence have arisen since 1999, all of which suggest that the rule is no longer reasonable. First,the 1999 rule was based on the assumption that the Supreme Court would soon eliminate the ability of schools to use race-conscious methods (e.g., flexible racial ratios) to promote diversity and avoid racial isolation. Instead,the opposite occurred: the Supreme Court reaffirmed schools' right to use race-conscious methods to achieve these compelling government interests. Second, the 1999 rule exempted the open enrollees and charter schools from its protections, envisioning these as marginal programs for children with special needs. Since that time,the number of open enrollees and charter enrollees has exploded(in the latter case growing sixteen- fold) as both programs have become integral parts of Minnesota's education system. Moreover, the U.S. Department of Education has counseled that it is unconstitutional to omit charters from a desegregation plan. Third,the amount of segregation in metropolitan area schools has grown rapidly. These increases have been particularly severe in charters, in which over 80 percent of students of color now attend a racially isolated school. Oftentimes,this outcome is by design, as many charters are "culturally targeted." In addition, the open enrollment system has facilitated segregation, as the bulk of students transferring from racially diverse districts into primarily-white districts have been themselves white. Charters and open enrollment have badly undermined the ability of districts to voluntarily desegregate, creating single-race enclaves for disgruntled parents and otherwise serving as vehicle for white flight. There are other objections to the existing rule. In drafting the current integration plan,the state argued that the benefits of integrated schools are minimal, but there is in fact voluminous social science evidence showing integration improves educational, career, and social outcomes for white and nonwhite children alike. The state also argued that integration would cause white flight, and it lacked the authority to implement an inter-district plan, as the Board of Education's proposed rule would have done. Neither is true: national comparative studies show that white flight does not occur when integration plans are metro-wide, only when they are limited to a single core urban district—and the state has complete and untrammeled constitutional authority to impose metro-wide, inter-district rules. The current rule narrows the constitutional definition of discrimination, omitting conduct that would be considered discriminatory by the Supreme Court. Finally,the current rule ignores the fact that a federal judge declared Minneapolis segregated by law, a designation that imposes special constitutional duties to integrate, and this determination was never lifted or reversed. HOUSING AND REDEVELOPMENT � AUTHORITY MEETING MINUTES 1/ ' � Richfield, Minnesota � Regular Meeting August 18, 2014 CALL TO ORDER The meeting was calied to order by Chair Sandahl at 7:00 p.m. ROLL CALL HRA Members Sue Sandahl, HRA Chair; Doris Rubenstein; David Gepner; Mary Supple; Present: and Debbie Goettel. Staff Present: Di e tor�; Cheis Reg seF nance IManarge�and Ther s Schy aDDeputy City Clerk. Item #1 2014 AND (2�SPEC AL HRA MEETING OF JULY 1, 201qEETING OF JUNE 16, M/Goettel, S/Suppte to approve the minutes. Motion carried 5-0. Item #2 HRA APPROVAL OF AGENDA M/Goettel, S/Rubenstein to approve the aqenda. Motion carried 5-0. Item #3 CONSENT CALENDAR A. Consideration of the approval of a contract with TMS Construction for the demolition of 7029 Nicol�et Avenue S.R. No. 28 B. Consideration of the approval of a resolution authorizing the purchase of real property located at 7308-10th Avenue through the Richfield Rediscovered Program S.R. No. 29 HRA RESOLUTION NO. 1185 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7308 10TH AVENUE This resolution appears as HRA Resolution No. 1185. HRA Meeting -2- August 18,2014 M/Rubenstein, S/Supple to approve the Consent Calendar. Motion carried 5-0. Item #4 PUBLIC REGARDING A RESOLUTION AUTHORIZING THE SALE OF 7225 FIRST AVENUE TO ENDRES CUSTOM HOMES AND A CONTRACT FOR PRIVATE DEVELOPMENT WITH ENDRES CUSTOM HOMES FOR THE CONSTRUCTION OF A SINGLE FAMILY HOME UNDER THE RICHFtELD REDISCOVERED PROGRAM S.R. NO. 30 Community Development Director Stark presented HRA Staff Report No. 30. Dustin Endres, Endres Custom Homes, was available for questions. Community Development Director Stark stated that he did receive a call from a resident who was concerned about the size of the house for the lot and wanted their comments to be passed along to the HRA. M/Gepner, S/Suppte to close the public hearinq. Motion carried 5-0. M/Sandahl, S/Gepner that the followinq resolution be approved: HRA RESOLUTION NO. 1186 RESOLUTION AUTHOV NIUE TO ENDRES�CUSTOM HOMES, IN OCATED AT 7225 1 ST Motion carried 5-0. This resolution appears as HRA Resolution No. 1186. Item #5 CONSIDERATION OF A PROPOSAL MADE BY THE OWNER OF 7228 ALDRICH AVENUE FOR A SETTLEMENT OF AN HRA DEFERRED LOAN S.R. NO. 31 Community Development Director Stark presented HRA Staff Report No. 31. Community Development Director Stark stated that staff have been tracking the sale of the home and feel a reasonable effort has been made to avoid short-sale and foreclosure. Greg Henniker, realtor for the property owner, was available for questions. He stated that if an agreement is not made for the property to go into short-sale then the property will go into foreclosure. M/Goettel, S/Sandahl to approve a proposal made bv the owner of 7228 Aldrich Avenue for a $1000 settlement of an HRA Deferred Loan. Motion carried 5-0. Item #6 CONSIDERATION OF THE RESOLUTIONS APPROVING THE 2015 PROPOSED HRA BUDGET AND TAX LEVY AND THE 2014 REVISED HRA BUDGET S.R. NO. 32 Community Development Director Stark presented HRA Staff Report No. 32. HRA Meeting -3- August 18,2014 Community Development Director Stark stated that staff is currently focused on trying to identify new revenue sources to fund valuable housing programs in Richfield. He continued that staff will be meeting with Senator Franken's and Congressman Ellison's staff to try to get some relief from Section 8 funding. M/Goettel, S/Gepner that the followina resolutions be adopted and made part of these minutes: HRA RESOLUTION NO. 1187 RESOLUTION APPROVING PROPOSED 2015 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2015 TAX LEVY HRA RESOLUTION NO. 1188 RESOLUTION AUTHORIZING REVISION OF THE 2014 BUDGET OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD Motion carried 5-0. These resolutions appear as HRA Resolution Nos. 1187 and 1188. Item #7 HRA DISCUSSION ITEMS Community Development Director Stark stated that staff speaks to approximately four developers per month regarding senior housing development at Cedar Point. Staff does inform the developers that ultimately the City Council and HRA have not yet decided what would be the best fit for Cedar Point. However, it is a positive sign that there is definitely interest in the site. Item #8 EXECUTIVE DIRECTOR REPORT None. Item #9 CLAIMS AND PAYROLL M/Goettel, S/Gepner that the followina claims and pavrolls be approved: U.S. BANK 07/21/14 Section 8 Checks: 125033-125148 $ 163,152.65 HRA Checks: 32010-32032 $ 31,013.42 TOTAL $ 194,166.07 U.S. BANK 08/18/14 Section 8 Checks: 125149-125277 158,421.90 HRA Checks: 32033-32072 � 75,276.56 TOTAL 233,698.45 Motion carried 5-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 8:10 p.m. HRA Meeting -4- August 18,2014 Date Approved: September 15, 2014 Suzanne M. Sandahl HRA Chair Theresa Schyma Steven L. Devich Deputy City Clerk Executive Director AGENDA ITEM# 3 REPORT# �� STAFF REPORT � HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 15, 2014 REPORT PREPARED BY: MYRT LINK, COMMUNITY DEVELOPMENT ACCOUNTANT NAME,TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR � NAME,TITLE DEPARTMENT DIRECTOR REVIEW: � � -�,.:��,. ` � '4S:(�NAT ��f � REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HIZA CONSIDERATION: Consideration of the Richfield Housing and Redevelopment Authority Tax Increment District Status Update. I. RECOMMENDED ACTION: By Motion: Accept the Richfield Hausing and Redevelopment Authorit Annual Tax increment District Status Update. II, EXECUTIVE SUMMARY The Tax Increment District Status Update (TIF Status Update) is presented to the Richfield Housing and Redevelopment Authority (HRA) annually for review. This year, the TIF Status Update shows that the HRA is able to meet all of its Pay-As- You-Go Note and General Obligation Tax Increment Bond obligations: III. BASIS OF RECOMMENDATION A. BACKGROUND • The annual TIF Status Update is provided to the HRA to summarize tax increment financial activity and comment on the status of the HRA's ability to meet its tax increment obligations. 091514 TIF Status Update B. PoLICY • The TIF Status Update is presented annually to keep the HRA informed of the ability to meet outstanding obligations. C. CRITICAL TIMING ISSUES • None D. FINANCIAL • See detailed TIF Status Update attached. E. LEGAL • N/A IV. ALTERNATNE RECOMMENDATION�S) • Reject the conclusions made in the TIF Status Update. V. ATTACHMENTS • Tax Increment District Status Update • Map VI. PRINCIl'AL PARTIES EXPECTED AT MEETING • Rebecca Kurtz, Ehlers & Associates Tax Increment District Status U date p Richfield Housing and Redevelopment Authority Septem ber 15, 2014 www.ehlers-inc.com E H L E RS Minnesota phone 651-697-8500 3060 Centre Pointe Drive LEADERS IN PUBLIC FINANCE Offices also in Wisconsin and Illinois fax 651-697-8555 Roseville,MN 55113-1122 toll free 800-552-1171 Tax Increment Financing District Summary Conclusion The Richfield Housing and Redevelopment Authority(HRA) will be able to meet all of its tax increment Pay-as-you-go and Bond obligations. Currently it is not anticipated that the HRA will be able to pay the full principal and interest on the Interfund Loan for the Interchange Lyndale Gateway West (Kensington Park)project unless market values appreciate and/or the HRA pools funds from other resources. Richfield Redevelopment Project Area In 2005,the boundaries of the Richfield Redevelopment Project Area were expanded and set to be the same as the City's boundary in order to expand housing program service areas and provide a wider area of tax increment spending authority. The Richfield Redevelopment Project area currently contains 9 tax increment financing districts: • Interchange • Urban Village • Gramercy • Interchange West/Lyndale Gateway • City Bella • Lyndale Gateway West - • Cedar Corridor • 2010— 1 Housing • Lyndale Gardens Obligations The HRA has two types of obligations associated with these districts. The first type of obligation is the Pay-As-You-Go Revenue Note. All of these Notes pledge to the Note Holder a certain percentage of the available tax increment from the specific district or specific parcels. Less tax increment receipts result in lower Pay-As-You-Go payments. To the extent that the increment is not available to make the payment,the HRA is not required to meet the obligation. Current projections show that the HRA will be able to meet all of its Pay-As-You-Go Revenue Note obligations. The second type of obligation that the HRA has is Tax Increment Bonds. Currently, there are bonds outstanding in the Interchange West(Best Buy), and Lyndale Gateway West(Kensington Park) districts. These bonds are paid from tax increment but also have a property tax pledge. The pledge is that if on an annual basis there is not enough tax increment to pay the payment,the City agrees to levy a property tax to pay balance of the debt payment. This has never happened with Richfield TIF debt. The third type of obligation is an Interfund Loan. The HRA has provided up-front money from various sources to assist with projects. The loans are normally repaid from tax increment or land sale revenue. 2 Assumptions All projections are based on the most conservative assumptions. Cash balances are as of December 31, 2013. The calculations do not include any interest on invested cash or inflation on property market values with a few exceptions: • Interchange West uses a 1.725%market value inflation • Urban Village uses a 2% market value inflation • Lyndale Gateway West uses a 1% inflation rate Although Lyndale Gateway (Twin Cities Christian Homes) used a 3%market value inflation assumption at time of closing, a 0%market value inflation rate is being used in order to be conservative. 3 Interchange TIF District Update The Interchange District is a commercial redevelopment project comprised of the Dick's Sporting Goods store located along I-494. In 2004, Galyan's Trading Company became a wholly owned subsidiary of Dick's Sporting Goods. First Year of Increment: 1998 Estimated Decertification Date: 2023 Outstanding Obligations • $1,747,045 Pay-as-you-go Revenue Note The Interchange District has a cash balance of$105,576. Conclusions The HRA will be able to meet its debt obligation. 4 Urban Village TIF District Update The Urban Village TIF District is a mixed-use redevelopment project located on the southeast corner of Lyndale and 66th Street. Tax increment revenue is pledged to the project to assist with property acquisition and excess site development expenses. Fifteen percent(15%) of the annual tax increment is contributed to the Housing and Redevelopment Fund for use on TIF eligible expenses. First Year of Increment: 2000 Estimated Decertification Date: 2025 Outstanding Obligations • $2,500,000 Pay-as-you-go Tax Exempt Tax Increment Revenue Note A • $2,388,414 Pay-as-you-go Taxable Tax Increment Revenue Note B The Note A TIF Bond has a reset date, and its current rate is 2.77%. The Note will be reset February 2016. The Urban Village District has a cash balance of$(92,366). Conclusions The HRA will be able to meet all of its debt obligations. Although the cash balance was negative at the end of 2013,projections show that the District will have a positive cash balance in the future. The negative balance is due to the timing difference from when obligations are paid and tax increment revenue is collected. 5 Gramercy TIF District Update The Gramercy TIF District is a redevelopment project that includes the Gramercy Park Senior Housing Cooperative. Tax increment revenue is pledged to the project to assist with property acquisition expenses. Fifteen percent(15%) of the annual tax increment is contributed to the Housing and Redevelopment Fund for use on TIF eligible expenses. First Year of Increment: 2002 Estimated Decertification Date: 2025 Outstanding Obligations • $1,977,000 Pay-as-you-go Tax Increment Revenue Note The Gramercy District has a cash balance of$175,537. Conclusions The HRA will be able to meet all of it debt obligation. • 6 Interchange West / Lyndale Gateway TIF District Update The Interchange West/Lyndale Gateway TIF District has two components: Interchange West and Lyndale Gateway. Interchange West Component The Interchange West component is comprised of the Best Buy Corporate Headquarters located at the intersection of I-494 and Penn Ave. Tax increments are pledged to the Best Buy project to assist with site assembly activities. Fifteen percent(15%) of the annual tax increment is contributed to the Housing and Redevelopment Fund for use on TIF eligible expenses. First Year of Increment: 2004 Estimated Decertification Date: 2025 Outstanding Obligations • $22,190,195 Pay-as-you-go Tax Increment Revenue Note • $6,355,000 Tax Exempt General Obligation Tax Increment Refunding Bonds, Series 2010B. The Interchange West Component has a cash balance of$1,802,412. Conclusions The HRA will be able to meet all of its debt obligations. Lyndaie Gateway Component The Lyndale Gateway component is comprised of the Richfield Senior Housing project(Main Street Village) and the Minnstar Builders, Inc. project (Casteel Place Townhouses). Tax increment revenue is pledged to the project to assist with site assembly expenses. In 2002, the HRA loaned Richfield Senior Housing, Inc. $338,251.76 to assist with an unexpected condemnation award in acquiring a portion of the redevelopment property. The loan was paid off by the developer in December, 2004. For the Minnstar Builders project, Casteel Place Townhomes, the Contract for Private Redevelopment included a"look back"provision that required a review of the developer's costs. To the extent that certain costs would go up or down under the estimate, the associated Pay-as- you-go Revenue Note would be reduced by a like amount. The "Iook back"provision analysis was completed in 2002, which called for a reduction in the Pay-as-you-go Revenue Note from $100,000 to $19,985.23. The cost savings of this tax increment was then used as additional gap funding for the Cornerstone/Kensington Park redevelopment project in the Lyndale Gateway West District. The last increment payment to Minnstar Builders was February 1, 2005. 7 First Year of Increment: 2000 Estimated Decertification Date: 2025 Outstanding Obligations • $3,300,000 Pay-as-you-go Tax Increment Revenue Note to Richfield Senior Housing The Lyndale Gateway Component has a cash balance of$269,772. Conclusions The HRA will be able to meet all of its debt obligations. 8 City Bella TIF District Update The City Bella project is a redevelopment district consisting of a housing project with a retail component located at Lyndale Avenue and 66th Street. Tax increment revenue is pledged to the project to assist with property acquisition and site improvement expenses. The City Bella Project has a$450,000 loan from the Development Account to pay for land owned by the HRA. This loan will be paid by using 15%of the annual tax increment. After the loan is paid in full, 15% of the annual tax increment will be contributed to the Housing and Redevelopment Fund for use on TIF eligible expenses. First Year of Increment: 2006 Estimated Decertification Date: 2030 Outstanding Obligations • $8,473,470 Pay-as-you-go Tax Increment Revenue Note • $450,000 maximum Interfund Loan from the Development Account, which has an outstanding balance/expenses incurred of$167,090 as of 12/31/2013. The City Bella District has a cash balance of$644,288. Conclusions The HRA will be able to meet all of its debt obligations. 9 Lyndale Gateway West TIF District Update The Lyndale Gateway West TIF District is comprised of the Cornerstone (Kensington Park) mixed-use redevelopment project located on Lyndale Avenue. Tax increment revenue is pledged to the project to assist with site assembly expenses. First Year of Increment: 2006 Estimated Decertification Date: 2029 Outstanding Obligations • $2,970,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B. • $1,100,000 Interfund Loan The $1,100,000 Interfund Loan from the ILN District was funded in part with the $1,630,000 General Obligation Tax Increment Bond, Series 2000, which utilized the Candlewood Hotel increment. A portion of the principal and the interest was to be paid back from tax increment. The Lyndale Gateway West District has a cash balance of$(80,554). Conclusions Under the current circumstances, the HRA will be able to meet its debt obligation for the Series 2012B bonds by the time the District is decertified. As in past years' projections, ultimately, there will be money to pay the bonds solely from TIF; however,projections show a few years where the increment will not cover the debt payments. A loan from another funding source may be needed, and the loan could be paid off from the additional increment after the bonds mature in 2025. Under current market values and tax rates, it is projected that there will not be sufficient tax increment to pay the Interfund Loan in its entirety (principal and interest). To the extent that market values increase or increment can be pooled from other TIF districts, the shortfall could be reduced. Market values would need to increase 3.2% annually to pay the principal in full and 6.1% annually to pay the principal and interest in full. Tax increment from the Minnstar Builders townhouse project in the Lyndale Gateway District is also being used to pay obligations related to the Cornerstone project. 10 Cedar Corridor TIF District Update The Cedar Corridor TIF District is a redevelopment district comprised of the commercial/retail redevelopment in the Airport Noise Impact Area. This area is located along Cedar Avenue and 66th Street. This District was established in 2006 using Special Legislation from the Laws of Minnesota 2005, Chapter 152, ANticle 2, Section 25. First Year of Increment: 2008 Estimated Decertification Date: 2033 Outstanding Obligations • $200,000 maximum Interfund Loan, which has an outstanding balance/expenses incurred of$18,525 as of 12/31/2013. • $780,000 Interfund Loan from the City PIR Fund for HRA assessments related to Richfield Parkway. Payments begin in 2017. The Cedar Corridor District has a cash balance of$0. Conclusions The District currently does not have any financial obligations with a third party. Development and increment will be needed to repay the two interfund loans related to qualified costs. It is intended that the Loan from the PIR Fund will be paid at the time the land is sold. 11 2010-1 Housing TIF District Update The 2010-1 Housing TIF District is a housing district comprised of the Lyndale Plaza development at the site of the former Woodlake Plaza Shopping Center site. The apartment complex contains 94 units of rental housing, including 19 units that are affordable to families at or below 50% of the area median income for Hennepin County, as determined annually by the Minnesota Housing Finance Agency. These units will remain affordable for the term of the tax increment. First Year of Increment: 2014 Estimated Decertification Date: 2034 Outstanding Obligations • $822,000 Pay-as-you-go Tax Increment Revenue Note A • $85,000 HRA Property Reimbursement Note, which has an outstanding balance of $93,847 as of 12/31/2013 due to accrued interest. • $500,000 Pay-as-you-go Tax Increment Revenue Note B • $200,000 maximum Interfund Loan from the HRA General Fund, which has an outstanding balance/expenses incurred of$6,773 as of 12/31/2013. The 2010-1 Housing District has a cash balance of$0. Conclusions The HRA will be able to meet its debt obligations. 12 Lyndale Gardens TIF District Update The Lyndale Gardens TIF District is a redevelopment district comprised of the former Lyndale Gardens site, located at 6400 Lyndale Avenue South. The development includes a 25,000 square foot grocery store; and is proposed to include 11,600 square feet of retail/restaurant space and 151 units of market-rate and affordable rental housing. The development will also include an open-air market/pavilion, a performance stage, splash pad, outdoor pizza oven, community gardens and several trail connections in a quasi-public setting. First Year of Increment: 2014 Estimated Decertification Date: 2039 Outstanding Obligations • $200,000 maximum Interfund Loan from the Development Fund, which has an outstanding balance/expenses incurred of$16,177 as of 12/31/2013. Approved Obligations The HRA has entered into a Development Agreement to issue the following obligations after the developer submits documentation of qualified expenses and complies with the requirements in the Agreement: • $5,616,000 Pay-as-you-go Tax Increment Revenue Note A • $315,000 Forgivable Loan, based on the developer meeting the requirements in Section 2.05 of the Funding Agreement by September 1, 2015 The Lyndale Gardens TIF District has a cash balance of$0. The District currently does not have any financial obligations with a third party. Development and increment will be needed to repay the interfund loan. 13 2014-1 TIF District Update The 2014-1 TIF District is a redevelopment district located on the former City garage site, includes three other parcels on the block. This area is located between 76th and 77th Streets and Pleasant and Pillsbury Avenues. The HRA began the process to establish this District late in 2013, and the District was adopted in February 2014. It has not been certified because a developer has not been identified. The TIF Plan anticipates the development of multi-family housing on the site. The District was established in 2014 to allow for the demolition of existing buildings for public safety reasons and to allow the expenses to be reimbursed through future tax increment. A majority of the demolition is anticipated to be completed by October 2014, and is estimated to cost $169,000. First Year of Increment: 2018 Estimated Decertification Date: 2043 Outstanding Obligations • $300,000 maximum Tnterfund Loan from the Capital Improvement Reserve Fund Conclusions � The District currently does not have any financial obligations with a third party. Development and increment will be needed to repay the interfund loan. 14 Decertified Tax Increment Financing Districts The HRA has decertified six TIF Districts: • Interstate-Lyndale-Nicollet(ILN) TIF District (a redevelopment district)was decertified as of December 31, 2012. • Pre-1999 Rich�eld Rediscovered TIF District (a scattered site redevelopment district) was closed as of December 31, 2010. • Post-1999 Richfield Rediscovered TIF District (a scattered site redevelopment district) was closed as of December 31, 2010. • Lyndale-Hub-Nicollet(LHN) District (a redevelopment district) was closed as of December 31, 2002. • Cedar Avenue Business Area (CABA) District (an economic development district) ended in 1996. All of the accounting transactions to close the District were completed by December 31, 2000. • Penn Avenue and Sixty-Sixth Street(PASSS) District (a redevelopment district)was established in 1989 and terminated in 1996 due to a lack of feasible redevelopment opportunities. 15 Housing and Redevelopment Fund The Housing and Redevelopment Fund is a revenue source comprised of tax increment from the Gramercy, Urban Village, Interchange West/Lyndale Gateway, and City Bella TIF Districts. The purpose of the Housing and Redevelopment Fund is to fund a variety of housing needs for the community, including but not limited to, new construction of single-family homes and town homes; single-family home renovation and rehabilitation; and apartment rehabilitation. Funds must be spent on eligible tax increment expenses. Currently, a portion of the tax increment revenue from the Gramercy, Urban Village and Lyndale Gateway/Interchange West TIF District are being transferred to the Housing and Redevelopment Fund. The Housing and Redevelopment Fund is used to support the New Home Program, Transformation Housing Program (a deferred loan program), the Kids at Home Program, and the Richfield Rediscovered Loan Program. A breakdown of the fund balance follows: Gramercy $109,027 Interchange West 1,247,710 Urban Village 337,751 Total Housing and Redevelopment Fund: $1,694,488 � 16 � � � • � - - � • - • - • � � - ._.■__�______ -�'_====_ - --- -- '■=_�=' �f , :_.��=-nnu uw i� ■ �--==== =--= - -- '�.�:.■�- -==.- :'�_ p --� �i. �= C -��__�___=_�'��___�__,�� C��:=_-_-_S�� :C �_�� C' �� =5=_ � = =- °°==== �' '°=====_ -°=_= - -= = === '-=_- '?�==_°== ====�' ------ '=_==CC__r �� C� �� !�o� �� _ �■ �lp Illli_p •.I� �� .�� _��C�`� ��_�__'�� _ �� 11' 1�� iC��C �� __��=C� �� -� � � �_ ��C�� O �� :�. :.. �C � ��ii� ii �� _�� € ` •��-�� _ \��C �� :� :1 1C C � �� '=�� !C� �� i� `m� �.�.� �� ii� ��J � ;? =-��=E��'1��______�___��__�.: C� % ��Ci ii7 . ■�� ■�� -_ __ __ ��=n m�� -=====' '==='.. _ �l, � ��C�?�n�p �� =°�=====° ° �� _�..� �==!=--=e=°�======' • . �•=� � l' � ,�.,■-=-=---= =---==--- - +, - � i -----_`.:=- , � ---__- y � . �.--_--=�-=------= =: . ■�■��===�■J■.�i P■11111111111111111111'n��I' _: II��1 �I��. �i�i ni ni In��_�r!L ` i��mi ii iin nn� ` � ��m��.m mn un��'�i==_°=�==� III:�_=_- =��,� _� ■��r�!�=___ i_��_::�_��--�n�mr��-= !1■ _I_--- =1=-____�■ °--=--= _-- =��.• �( _� ='-�_-°--_ - '' ---- -- '�--- aeao�o_-=1=alo0i�i��O�C=��_ �� '�� / �Qr��=�o��C�=-==__�� __�� C�, � __�-�_ =___�-��\ � �� ■ �i� M e e=- =�__�� =►` Q'=,= _�� C� C� ��_�I��\��\ �� i j -f� �� C��C�� 7�� ' --- �'-_� � �� c� �C'�� == ==9 II ao===-_i iu��\�i�►\ �.�� I,�� =�11==i= �� -�� -��C C��C=�� '. __=e_=_x=__ ___�-_��=� �____===�� =l�___! :�� =�� __�� _-�C��C��=� �� _=ee:__=oc=___ �=_ ==�_ �_�_�p� t ____= i��i =�� ::��_=C��__�__� �� „r =�e_I__�e_le ao ao av ��C�, � 7��- _��■ = c=�� i'�� =��'�� ■ �� C��_�_ �� _ ==n�ae_o�_=== ��__=�� _ �� C=�� =====___�__== ��_=_� �O-�__� � �� • ��. �� C C ��i��o ��_�_�� __ -==______°-'�=�?°i��==__�� C�� __ �ii��C� �� __=�________'=:■_��a�:i�� .=�� i��11��' �� =�====� ��pt �7 71111P��IIIIIIPmmme= � p ��__�� , II�II 1�11 �?n C ��_��:��--�� ____ ��i�. ��IIIP��11111111111111111:� � � �C �� :=p= �� p ��pp�� I�I �11111111111111 � � ��i� �`� �� CC�i�� ,I,�I��I�� 111111111�111� _� �� '��__ �II� � ��_�� -= �� ,�i�� 1111111111111� �� C�� --=�� p p �� C�� p� ��C�� : _ '��____-��C C�� i�C�� 1111111111111 _.�p �� = � ___- =�� = ��__� �11111111�CII�: � ��C�� i �� ■- ��°===== � � :�ii i��♦iG��C�o��C C��1 C 111111�1��II � � ��___��■ ��!� �=!! _______� � �-��C .� � ■�� :n�� CI��111 , � ��C�- =� �� ========� � ■ �C C� �� p ��C��i� �� C � � �� :�� I'��,i� ___��o=� ��pp� '_g_I__I__I=��_ �� CG�i--��C CC: ;=�� :I� ` ■ I �P��- _- ---- 11�� __ ----- �� _:-�� ii,�1 Ir�_•��n_��G=�°=___== �� ==�===-��C 7�■� � ��=,�=��__��C� �� C�C�� .o p=-��===_�_� 11��C �� =�� C�C� ��-�� _ � � � ��' � ��__ = �_ = __� c �� ___== - ��C�� 11�' � � �i�C� � �=-��i�i�� _i_�� ii� �� I �� 11 p � �� ■ � _=o0 0=_�____ �� 111� � � � ��°____�� rl�� _ _ �� C� � � �� Y � ��___ __• ��111111111�1�1 11�� _�� ■ ■ �=�'.��===� �� = �� C C�� •�� \C�__ � _� � �� __� - p �� C , C��_ �1 �■ .._� ==_=�_=_� � �� ___=i�� .�� C= p��__��____ -_=',�� = � � � �� C�� _ _________ _ � .� ��C° �� P� � � � �1 :::�C �� :-__�=__�_____�� _� �� C� „p� '==� ° _'___= �� °�C� C �� C�� ---_� ..��:...� _�_-_=----=i• --=-- ------ ---- - -==-= -- ---- - ====1 ��Ii�11'� , �, • � • �� =�� --==�� I�� i, _='°==" r ' ===='�-' r�`_- = 0==_='- _ = = =_��:�::.:==_'= '" ==�I :•'.::;==" � '� I � � ='.�' .�=':_� � 1 � :.��.-...:=- � __!� ��: ! : � �� ,•� �.._�ii� i.ii�� .O...n...: '-��■1.: �.� _ _ _ _ -.- . . . . - - - :. � - - - - !� �I .�. � � � - �f - - .- - - . AGENDA ITEM# 4 REPORT# STAFF REPORT ,�r► � r 1 '' HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 15, 2014 REPORT PREPARED BY: LYNETTE CHAMBERS,MULTI/FAMILY HOUSING PROGRAM COORDINATOR NAME,TITLE REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR Nan�rc,TIrLE DEPARTMENT DIIZECTOR REVIEW: � - � SIGN % � REVIEWED BY EXECUTNE DIRECTOR: �� ITEM FOR HRA CONSIDERATION: Public hearing regarding consideration of approval to the Richfield Housing and Redevelo ment Authorit 's Five-Year Public Housin Authorit Plan. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve the Housing and Redevelopment Authority's Five-Year Public Housing Authority Plan for the Section 8 Housing Assistance Program and authorize the Chair and Executive Director to execute program documents. II. EXECUTIVE SUMMARY The Department of Housing and Urban Development (HUD) requires every Housing Authority to develop a five-year Public Housing Authority Plan (PHA Plan) within a required format. In order to remain compliant with HUD rules and regulations, after development of the PHA Plan, it is reviewed by the Resident Advisory Board (RAB), soliciting comments and feedback from tenants. A public hearing then must be held and the PHA Plan approved by the local Housing and Redevelopment Authority (HRA). Once the PHA Plan is approved by the HRA, it is then submitted to HUD. 091514 Section 8 Housing Plan.doc III. BASIS OF RECOMMENDATION A. BACKGROUND • The Quality Housing and Work Responsibility Act of 1998 (QHWRA) was created by Congress. The QHWRA requires the HRA, as a Public Housing Agency (PHA) to have a five-year 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. • Staff has developed a PHA Plan in proper form and content. • The QHWRA also requires the HRA to maintain a "RAB" to make comments about the PHA Plan. The RAB is comprised of program tenants that volunteer to provide feedback. The RAB had no additional comments to the PHA Plan. • The five-year PHA Plan must be consistent with the Consolidated Plan prepared by Hennepin County. The proposed five-year PHA Plan has been certified by a Hennepin County Official that it is consistent with the Consolidated Plan of Hennepin County Housing Consortium. • HUD has designated Richfield as a high performer; signaling a high level in overall performance of administration of the program. • The public hearing notice of 45 days has not generated any comments or concerns. B. PoLICY • The Richfield HRA operates the PHA and Section 8 program to assist in providing affordable housing for approximately 320 families in the city of Richfield. This affordability allows families the ability to live in decent and safe housing that might otherwise be out of reach financially for them. • 2008 City of Richfield Comprehensive Plan: o Policy: Promote the development, management, and maintenance of affordable housing in the City through assistance programs; alternative funding sources; and the creation of partnerships whose mission is to promote low to moderate income housing. C. CRITICAL TIMING ISSUES • The PHA Plan must be approved by the HRA and submitted to HUD by October 31, 2014. • 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. D. FINANCIAL • The HRA has four contracts for administrative and rent assistance funds with HUD. • Annually, the HRA receives approximately $1,165,400 for rental assistance payments and $144,250 for administrative payments. A current PHA Plan is a requirement of these contracts. E. LEGAL • The Housing Assistance Program (HAP) contracts that the HRA has with HUD have been previously reviewed and approved by legal counsel. • Notice was published on July 31, 2014 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. • The HRA must formally adopt the PHA Plan following a public hearing. • HUD requires the HRA Chair and Executive Director to execute documents. IV. ALTERNATNE RECOMMENDATION(S� • None V. ATTACHMENTS • PHA Plan VI. PRINCIl'AL PART•IES EXPECTED AT MEETING • N/A PHA 5-Year and U.S.Department of Housing and Urban OMB No.2577-0226 Development Expires 4/30/2011 Annual Plan Office of Public and Indian Housin d 1.0 PHA Information PHA Name: Richfield HRA PHA Code: MN216 PHA Type: ❑Small �High Performing ❑Standard �HCV(Section 8) PHA Fiscal Year Beginning:(MM/YYYY):_O1/2015 2A Inventory(based on ACC units at time of FY beginning in 1.0 above) Number of PH units: Number of HCV units: 231 3.0 Submission Type � •�5-Year and Annual Plan ❑Annual Plan Only �5-Year Plan Only 4.0 pHA Consortia ❑PHA Consortia:(Check box if submitting a joint Plan and complete table below.) No.of Units in Each Participating PHAs PHA Program(s)Included in the Programs Not in the Program Code Consortia Consortia pH HCV PHA 1: PHA 2: PHA 3: 5.0 5-Year Plan.Complete items 5.1 and 5.2 only at 5-Year Plan update. 51 Mission. State the PHA's Mission for serving the needs of low-income,very low-income,and extremely low income families in the PHA's jurisdiction for the next five years: To promote adequate and affordable housing,economic opportunity and a suitable living environment free from discrimination. Page 1 of 2 form HUD-50075(4/2008) 5.2 Goals and Objectives. Identify the PHA's quantifiable goals and objectives that will enable the PHA to serve the needs of low-income and very low-income,and extremely low-income families for the next five years. Include a report on the progress the PHA has made in meeting the goals and objectives described in the previous 5-Year Plan. The PHA would like to expand the supply of assisted housing by applying for additional rental vouchers when available and leverage private or other public funds to create additional housing opportunities. During the last 5 years, Richfield HRA has continued to administer a local rental assistance program entitled the Kids @ Home Program.This program uses local funding to help provide rental assistance to families whose income falls under 50% of AMI and have children in the Richfield Schools.In addition to the rental assistance component of the program,there is a supportive services component to the program where each family is assigned a Family Counselor.The Family Counselor meets with each family on a monthly,sometimes, bi-monthly basis,to help the family set up their individual goal setting plans as well provide counseling to the family if needed.The family may stay on this program for up to 4 years. In the area of affordable housing and homeownership,in 2009,Richfield HRA received$1.04 million in federal Neighborhood Stabilization Program funds.Two foreclosed properties were purchased,rehabilitated,and sold to Homes Within Reach(land trust agency)and households earning less than 50% of the TCAMI. One foreclosed property was purchased, rehabilitated,and sold to Homes Within Reach and a household earning less than 80%of the TCAMI.Four additional foreclosed homes were purchased,rehabilitated and sold to households earning less than 115% of the TCAMI. In 2010,Richfield HRA sold a lot to Twin Cities Habitat for Humanity for the construction of 1 new home affordable to a household earning less than 50% of the TCAMI. In 2014,Richfield HRA authorized the sale of two lots to Twin Cities Habitat for Humanity for the construction of two new homes affordable to households earning less than 60°/a of the TCAMI.(2015 construction) In 2014,Rich�eld HRA authorized the sale of two lots to the Greater Metropolitan Housing Corporation for the construction of two new homes affordable to households earning less than 80% of the TCAMI.One of the households will be accessible to households with physical mobility limitations.(2014 construction) PHA Plan Update 6A �a) Identify all PHA Plan elements that have been revised by the PHA since its last Annual Plan submission:NA (b) Identify the specific location(s)where the public may obtain copies of the 5-Year and Annual PHA Plan. For a complete list of PHA Plan elements,see Section 6.0 of the instructions. The PHA Plans and attachments(if any)are avaflable for public inspection at main administrative office of the PHA(6700 Portland Avenue South,Richfield,MN.) 7A Hope VI,Mixed Finance Modernization or Development,Demolition and/or Disposition,Conversion of Public Housing,Homeownership Programs,and Project-based Vouchers. Include statements related to these programs as applicable. NA 8.0 Capital Improvements. Please complete Parts 8.1 through 83,as applicable. g 1 Capital Fund Program Annual Statement/Performance and Evaluation Report. As part of the PHA 5-Year and Annual Plan,annually complete and submit the Capital Fund Program Annual Statement/Performance and Evaluation Report,form HUD-50075.1,for each current and open CFP grant and CFFP financing. NA 8 Z Capital Fund Program Five-Year Action Plan. As part of the submission of the Annual Plan,PHAs must complete and submit the Capital Fund Program Five-Year Action Plan,form HUD-50075.2,and subsequent annual updates(on a rolling basis,e.g.,drop current year,and add latest year for a five year period). Large capital items must be included in the Five-Year Action Plan. NA g 3 Capital Fund Financing Program(CFFP). ❑Check if the PHA proposes to use any portion of its Capital Fund Program(CFP)/Replacement Housing Factor(RHF)to repay debt incurred to finance capital improvements. NA Page 2 of 2 form HUD-50075(4/2008) Housing Needs. Based on information provided by the applicable Consolidated Plan,information provided by HUD,and other generally available data,make a reasonable effort to identify the housing needs of the low-income,very low-income,and extremely low-income families who reside in the jurisdiction served by the PHA,including elderly families,families with disabilities,and households of various races and ethnic groups,and other families who are on the public housing and Section 8 tenant-based assistance waiting lists.The identification of housing needs must address issues of affordability,supply,quality,accessibility,size of units,and location. Housin Needs of Families on Richfield HRA's Section 8 Waitin List # of families % of total families Waitin List Total 105* Extreme low income <=30% AMI 84 80% Very low income >30% but<=50% AMI 21 20% Families with children 61 58% 9.o Elderl Families 13 13% Families with Disabilities 2 2% Race/Ethnicity White/Non-His anic 9 9% Race/Ethnicity Black/Non-His anic 93 89% Race/Ethnicity American Indian/His anic 3 2% *In November 2009, Richfield HRA opened its waiting list, we had over 10,000 applications submitted and 500 applications were randomly selected to be placed on the list, Richfield HRA anticipates we will open again for applications in 2016. Strategy for Addressing Housing Needs. Provide a brief description of the PHA's strategy for addressing the housing needs of families in the jurisdiction and on the waiting list in the upcoming year. Note: Small,Section 8 only,and High Performing PHAs complete only for Annual Plan submission with the 5-Year Plan. Richfield HRA will continue to apply for vouchers when they become avaialbe.It is anticipated that due to voucher turnover,Richfield HRA will be able to exhaust the current waiting list in the next 3.5 years. 9.i Rich�eld HRA also has its own local rental assistance program,including a supportive service component, which helps up to 30 families. Richfield HRA will continue to work with Homes Within Reach(a land trust agency)to provide opportunities for homeownership to moderate and low-income households. Richfield HRA will continue to leverage affordable housing resources in the community through the creation of mixed-�nance housing and pursue housing resources other than public housing or Section 8 tenant-based assistance. Page 3 of 2 form HUD-50075(4/2008) Additional Information. Describe the following,as well as any additional information HUD has requested. (a) Progress in Meeting Mission and Goals. Provide a brief statement of the PHA's progress in meeting the mission and goals described in the 5- Year Plan. On a daily basis,Rich�eld HRA continues to promote adequate and affordable housing,economic opportunity and a suitable living environment free from discrimination.This is accomplished through extensive outreach efforts to potential voucher landlords.Since the development of the Kids @ Home Program,many new landlords are aware of the voucher program and have been more willing to participate in the program.In some cases,we have found landlords are not willing to participate in the voucher program,but have been willing to allow families who receive rent assistance under the Kids @ Home Program to live in their properties. Hopefully,this will develop stronger relationships with the landlords and the PHA,alleviating the fears the landlords have and they may consider allowing tenant based voucher recipients into their properties. The Kids @ Home Program provides a supportive service component to the program,where family coordinators meets with the family to establish goal setting plans for the family based on the families needs. 10.o The family coordinators then meet with the families in their homes on a monthly basis to determine the progress towards the goals,tweak if necessary or to change the goals as needed.This has proven to be a great service and since 2008,5 of the families on the Kids @ Home Program purchased affordable homes,thus successfully completing their individual goal setting plan.Due to the great success of the supportive service component piece of the program,and on a case by case basis Rich�eld HRA has offered this service component to the tenant based voucher family. (b) Significant Amendment and Substantial Deviation/Modification. Provide the PHA's definition of"significant amendmenY'and"substantial deviation/modification" The PHA has not had any signi�cant amendment or substantial deviation/modi�cation. The PHA's definition of"substantial deviation/modi�cation"and"significant amendment"are: a.Substantial Deviation/Modification from the 5-Year Plan is a decision made by the HRA Board to change the HRA's mission statement,goals,or objectives identified in the 5-Year Plan. It is also when goals or objectives are changed that affect the residents or have a significant impact to the HRA financial situation. b.Signi�cant Amendment to the Annual Plan is a change in HRA plans or policies that require formal approval by the HRA Board Page 4 of 2 form HUD-50075(4/2008) 11. Required Submission for HUD Field Office Review. In addition to the PHA Plan template(HCJD- 0 50075), PHAs must submit the following documents. Items(a)through(g)may be submitted with signature by mail or electronically with scanned signatures,but electronic submission is encouraged. Items (h)through(i)must be attached electronically with the PHA Plan. Note: Faxed copies of these documents will not be accepted by the Field Office. (a) Form HUD-50077,PHA Certifications of Compliance with the PHA Plans and Related Regulations (which includes all certifications relating to Civil Rights) (b) Form HUD-50070, Certification foN a Drug-Free Workplace(PHAs receiving CFP grants only) (c) Form H[JD-50071, CeNtification of Payments to Influence Federal Transactions(PHAs receiving CFP grants only) (d) Form SF-LLL,Disclosure of Lobbying Activities(PHAs receiving CFP grants only) (e) Form SF-LLL-A,Disclosure of Lobbying Activities Continuation Sheet(PHAs receiving CFP grants only) (� Resident Advisory Board(RAB) comments. Comments received from the RAB must be submitted by the PHA as an attachment to the PHA Plan. PHAs must also include a narrative describing their analysis of the recommendations and the decisions made on these recommendations. (g) Challenged Elements (h) Form HUD-50075.1, Capital Fund Progr°am Annual Statement/Performance and Evaluation Report (PHAs receiving CFP grants only) (i) Form HUD-50075.2, Capital Fund Program Five-Year Action Plan(PHAs receiving CFP grants only) Page 5 of 2 form HUD-50075(4/2008) This information collection is authorized by Section 511 of the Quality Housing and Work Responsibility Act,which added a new section SA to the U.S.Housing Act of 1937,as amended,which introduced 5-Year and Annual PHA Plans.The 5-Year and Annual PHA plans provide a ready source for interested parties to locate basic PHA policies,rules,and requirements concerning the PHA's operations,programs,and services,and infarms HUD,families served by the PHA,and members of the public of the PHA's mission and strategies for serving the needs of low-income and very low-income families. This form is to be used by aIl PHA types for submission of the 5-Year and Annual Plans to HUD. Public reporting burden for this information collection is estimated to average 12.68 hours per response,including the time for reviewing instructions,searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information.HUD may not collect this information,and respondents are not required to complete this form,unless it displays a currently valid OMB Control Number. Privacy Act Notice. The United States Department of Housing and Urban Development is authorized to solicit the information requested in this form by virtue of Title 12,U.S.Code,Section 1701 et seq.,and regulations promulgated thereunder at Title 12,Code of Federal Regulations. Responses to the collection of information are required to obtain a benefit or to retain a benefit. The information requested does not lend itself to confidentiality Instructions form HUD-50075 Applicability. This form is to be used by all Public Housing Agencies 2. Financial Resources. A statement of financial resources, (PHAs)with Fiscal Year beginning April 1,2008 for the submission of their including a listing by general categories,of the PHA's 5-Year and Annual Plan in accordance with 24 CFR Part 903. The previous anticipated resources,such as PHA Operating,Capital and version may be used only through April 30,2008. other anticipated Federal resources available to the PHA, as well as tenant rents and other income available to 1.0 PHA Information support public housing or tenant-based assistance. The Include the full PHA name,PHA code,PHA type,and PHA Fiscal Year statement also should include the non-Federai sources of Beginning(MM/YYYY). funds supporting each Federal program,and state the planned use for the resources. 2.0 Inventory Under each program,enter the number of Annual Contributions Contract 3. Rent Determination. A statement of the policies of the (ACC)Public Housing(PH)and Section 8 units(HCV). PHA governing rents charged for public housing and HCV dwelling units. 3.0 Submission Type Indicate whether this submission is for an Annual and Five Year Plan,Annual 4. Operation and Management. A statement of the rules, Plan only,or 5-Year Plan only. standards,and policies of the PHA governing maintenance management of housing owned,assisted,or operated by 4.0 PHA Consortia the public housing agency(which shall include measures Check box if submitting a Joint PHA Plan and complete the table. necessary for the prevention or eradication of pest infestation,including cockroaches),and management of 5.0 Five-Year Plan the PHA and programs of the PHA. Identify the PHA's Mission,Goals and/or Objectives(24 CFR 903.6). Complete only at 5-Year update. 5. Grievance Procedures. A description of the grievance and informal hearing and review procedures that the PHA 5.1 Mission.A statement of the mission of the public housing agency makes available to its residents and applicants. for serving the needs of low-income,vary low-income,and extremely low-income families in the jurisdiction of the PHA during the years 6. Designated Housing for Elderly and Disabled Families. covered under the plan. With respect to public housing projects owned,assisted,or operated by the PHA,describe any projects(or portions 5.2 Goals and Objectives.Identify quantifiable goals and objectives thereo fl,in the upcoming fiscal year,that the PHA has that will enable the PHA to serve the needs of low income,very low- designated or will apply for designation for occupancy by income,and extremely low-income families. elderly and disabled families. The description shall include the following information: 1)development name 6.0 PHA Plan UpdaYe. In addition to the items captured in the Plan and number;2)designation type;3)application status;4) template,PHAs must have the elements listed below readily available to date the designation was approved,submitted,or planned the public. Additionally,a PHA must: for submission,and;5)the number of units affected. (a) Identify specifically which plan elements have been revised 7. Community Service and Self-Sufficiency. A description since the PHA's prior plan submission. of: (1)Any programs relating to services and amenities provided or offered to assisted families;(2)Any policies (b) Identify where the 5-Year and Annual Plan may be obtained by or programs of the PHA for the enhancement of the the publia At a minimum,PHAs must post PHA Plans, economic and social self-sufficiency of assisted families, including updates,at each Asset Management Project(AMP) including programs under Section 3 and FSS;(3)How the and main office or central off ice of the PHA. PHAs are PHA will comply with the requirements of community strongly encouraged to post complete PHA Plans on its official service and treatment of income changes resulting from website. PHAs are also encouraged to provide each resident welfare program requirements. (Note: applies to only council a copy of its 5-Year and Annual Plan. public housing). PHA Plan Elements.(24 CFR 903.7) 8. Safety and Crime Prevention. For public housing only, describe the PHA's plan for safety and crime prevention to 1. Eligibility,Selection and Admissions Policies,including ensure the safety of the public housing residents. The Deconcentration and Wait List Procedures. Describe statement must include: (i)A description of the need for the PHA's policies that govern resident or tenant measures to ensure the safety of public housing residents; eligibility,selection and admission including admission (ii)A description of any crime prevention activities preferences for both public housing and HCV and unit conducted or to be conducted by the PHA;and(iii)A assignment policies for public housing;and procedures for description of the coordination between the PHA and the maintaining waiting lists for admission to public housing appropriate police precincts for carrying out crime and address any site-based waiting lists. prevention measures and activities. Page 1 of 3 Instructions form HUD-50075(2008) 9. Pets. A statement describing the PHAs policies and that the public housing agency plans to voluntarily convert; requirements pertaining to the ownership of pets in public 2)An analysis of the projects or buildings required to be housing. converted;and 3)A statement of the amount of assistance received underthis chapterto be used for rental assistance or 10. Civil Rights Certification. A PHA will be considered in other housing assistance in connection with such conversion. compliance with the Civil Rights and AFFH Certification See guidance on HUD's website at if:it can document that it examines its programs and httn•//www hud gov/offices/pih/centers/sac/conversion cfm proposed programs to identify any impediments to fair housing choice within those programs;addresses those (d) Homeownership. A description of any homeownership impediments in a reasonable fashion in view of the (including project number and unit count)administered by resources available;works with the local jurisdiction to the agency or for which the PHA has applied or will apply implement any of the jurisdiction's initiatives to for approval. affirmatively further fair housing;and assures that the annual plan is consistent with any applicable Consolidated (e) Project-based Vouchers.If the PHA wishes to use the Plan for its jurisdiction. project-based voucher program,a statement of the projected number of project-based units and general locations and how il. Fiscal Year Audit. The results ofthe most recent fiscal project basing would be consistent with its PHA Plan. year audit for the PHA. 8.0 Capital Improvements. This section provides information on a PHA's 12. Asset Management. A statement of how the agency will Capital Fund Program. With respect to public housing projects owned, carry out its asset management functions with respect to assisted,or operated by the public housing agency,a plan describing the � the public housing inventory of the agency,including how capital improvements necessary to ensure long-term physical and social the agency will plan for the long-term operating,capital viability of the projects must be completed along with the required investment,rehabilitation,modernization,disposition,and forms. Items identified in 8.1 through 83,must be signed where other needs for such inventory. directed and transmitted electronically along with the PHA's Annual Plan submission. 13. Violence Against Women Act(VAWA). A description o£ 1)Any activities,services,or programs provided or 8.1 Capital Fund Program Annual Statement/Performance and offered by an agency,either directly or in partnership with Evaluation Report. PHAs must complete the Capital Fund other service providers,to child or adult victims of Program Annual Statement/Performance and Evaluation Report domestic violence,dating violence,sexual assault,or (form HUD-50075.1),for each Capital Fund Program(CFP)to be stalking;2)Any activities,services,or programs provided undertaken with the current year's CFP funds or with CFFP or offered by a PHA that helps child and adult victims of proceeds. Additionally,the form shall be used for the following domestic violence,dating violence,sexual assault,or purposes: stalking,to obtain or maintain housing;and 3)Any activities,services,or programs provided or offered by a (a) To submit the initial budget for a new grant or CFFP; public housing agency to prevent domestic violence, dating violence,sexual assault,and stalking,or to enhance (b) To report on the Performance and Evaluation Report progress victim safety in assisted families. on any open grants previously funded or CFFP;and 7.0 Hope VI,Mixed Finance Modernization or Development, (c) To record a budget revision on a previously approved open Demolition and/or Disposition,Conversion of Public Housing, grant or CFFP,e.g.,additions or deletions of work items, Homeownership Programs,and Project-based Vouchers modification of budgeted amounts that ha�e been undertaken since the submission of the last Annual Plan. The Capital (a) Hope VI or Mixed Finance Modernization or Development. Fund Program Annual Statement/Performance and 1)A description of any housing(including project number(if Evaluation Report must be submitted annually. known)and unit count)for which the PHA will apply for HOPE VI or Mixed Finance Modernization or Development;and 2)A Additionally,PHAs shall complete the Performance and timetable for the submission of applications or proposals.The Evaluation Report section(see footnote 2)of the Capital Fund application and approval process for Hope VI,Mixed Finance Prograns Annual Statement/Performance and Evaluation(form Modernization or Development,is a separate process.See HUD-50075.1),at the following times: guidance on HUD's website at: httn•//www hud gov/offices/pih/pro r� ams/ph/hope6/index cfin 1. At the end of the program year;until the program is completed or all funds are expended; (b) Demolition and/or Disposition. With respect to public housing projects owned by the PHA and subject to ACCs under the Act: 2. When revisions to the Annual Statement are made, (1)A description of any housing(including project number and which do not require prior HUD approval,(e.g., unit numbers[or addresses]),and the number of affected units expenditures for emergency work,revisions resulting along with their sizes and accessibility features)for which the from the PHAs application of fungibility);and PHA will apply or is currently pending for demolition or disposition;and(2)A timetable for the demolition or 3. Upon completion or termination of the activities funded disposition.The application and approval process for demolition in a specific capital fund program year. and/or disposition is a separate process.See guidance on HUD's website at: 8.2 Capital Fund Program Five-Year Action Plan http•//www hud eov/oftices/pih/centers/sac/demo dispo/index c fin PHAs must submit the Capital Fund Program Five-Year Action Note:This statement must be submitted to the extent that Plan(form HUD-50075.2)for the entire PHA portfolio for the first approved and/or pending demolition and/or disposition has year of participation in the CFP and annual update thereafter to changed. eliminate the previous year and to add a new fifth year(rolling basis)so that the form always covers the present five-year period (c) Conversion of Public Housing. With respect to public beginning with the current year. housing owned by a PHA: 1)A description of any building or buildings(including project number and unit count)that 8.3 Capital Fund Financing Program(CFFP). Separate,written the PHA is required to convert to tenant-based assistance or HUD approval is required if the PHA proposes to pledge any Page 2 of 3 Instructions form HUD-50075(2Q08) portion of its CFP/RHF funds to repay debt incurred to finance capital improvements. The PHA must identify in its Annual and 5- (c) PHAs must include or reference any applicable memorandum year capital plans the amount of the annual payments required to of agreement with HUD or any plan to improve perfortnance. service the debt. The PHA must also submit an annual statement (Note: Standard and Troubled PHAs complete annually). detailing the use of the CFFP proceeds. See guidance on HUD's website at: 11.0 Required Submission for HUD Field Office Review. In order to be a http'//www hud gov/offices/pih/�rosrams/pl�/capfund/cff�cfm complete package,PHAs must submit items(a)through(g),with signature by mail or electronically with scanned signatures. Items(h) 9.0 Housing Needs. Provide a statement of the housing needs of families and(i)shall be submitted electronically as an attachment to the PHA residing in the jurisdiction served by the PHA and the means by which Plan. the PHA intends,to the maximum extent practicable,to address those needs.(Note: Standard and Troubled PHAs complete annually;Small (a) Form HUD-50077,PHA Certifications of Compliance with and High Performers complete only for Annual Plan submitted with the the PHA Plans and Related Regulations 5-Year Plan). (b) Form HUD-50070,Certif:cation for a Drug-Free Workplace 9.1 Strategy for Addressing Housing Needs. Provide a description of (PHAs receiving CFP grants only) the PHA's strategy for addressing the housing needs of families in the jurisdiction and on the waiting list in the upcoming year. (c) Form HUD-50071,Certification of Payments to In,Jluence (Note: Standard and Troubled PHAs complete annually;Small Federal Transactions(PHAs receiving CFP grants only) and High Performers complete only for Annual Plan submitted with the 5-Year Plan). (d) Form SF-LLL,Disclosure of LobbyingActivi[ies(PHAs receiving CFP grants only) 10.0 Additional Information. Describe the following,as well as any additional information requested by HUD: (e) Form SF-LLL-A,Disclosure of Lobbying Activities Continuation Sheet(PHAs receiving CFP grants only) (a) Progress in Meeting Mission and Goals. PHAs must include(i)a statement of the PHAs progress in meeting the (f� Resident Advisory Board(RAB)comments. mission and goa(s described in the 5-Year Plan;(ii)the basic criteria the PHA will use for determining a significant (g) Challenged Elements.Include any element(s)of the PHA amendment from its 5-year Plan;and a significant Plan that is challenged. amendment or modification to its 5-Yeaz Plan and Annual Plan. (Note: Standard and Troubled PHAs complete (h) Form HUD-50075.1,Capital Fund Program Annual annually;Small and High PerFormers complete only for Statement/Performance and Evaluation Repart(Must be Annual Plan submitted with the 5-Year Plan). attached electronically for PHAs receiving CFP grants only). See instructions in 8.1. (b) Significant Amendment and Substantial Deviation/Modification. PHA must provide the definition (i) Form HUD-50075.2,Capital Fund Program Five-Year of"significant amendmenY'and"substantial Action Plan(Must be attached electronically for PHAs deviation/modification". (Note: Standard and Troubled receiving CFP grants only). See instructions in 8.2. PHAs complete annually;Small and High Performers complete only for Annual Plan submitted with the 5-Year Plan.) Page 3 of 3 Instructions form HUD-50075(2008)