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09-17-01 agendaCITY OF RICHFIELD MONDAY, SEPTEMBER 17, 2001 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 7 P.M. AGENDA Call to order Approval of minutes of (1) Regular HRA Meeting of August 20, 2001 and (2) Special Concurrent HRA and City Council Meeting of September 23, 2001 1. Opportunity for citizens to address the HRA on items not on the agenda Notes: 2. HRA approval of agenda • 3. Consideration of agreement identifying uses for tax increment financing in Interchange West Area Staff Report No. 56 Notes: 4. Public hearing and consideration of HRA's annual Public Housing Authority Plan for Section 8 Housing Assistance Program Staff Report No. 57 Notes: 5. 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 Administrative Services Director at 612-861-9702. • STAFF REPORT AGENDA ITEM # !F REPORT # 57 HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 17, 2001 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: LYNNETTE `CIIAMBERS, LEASED HOUSING SPECIALIST NAME, TITLE BRUCE PALMBORG, ITEM FOR HRA CONSIDERATION: Conduct a public hearing and approval of the Richfield Housing and Redevelopment Authority's annual Public Housing Authority 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. • III. BACKGROUND The Quality Housing and Work Responsibility Act of 1998 (QHWRA) created by Congress requires Richfield Housing and Redevelopment Authority (HRA) to provide a Public Housing Agency Plan (PHA Plan) on an annual basis. The annual 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 plan in proper form and content. In addition, QHWRA requires the Richfield HRA to create a "Resident Advisory Board" to make comments on the PHA Plan. Every Section 8 household in Richfield (there are 350) 0917Section8 COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE was invited to join the Advisory Board. Two volunteered to participate. The Advisory Board • then met after each member had an opportunity to review the PHA Plan. The Resident Advisory Board made no additional comments to the plan. III. BASIS OF RECOMMENDATION A. POLICY • The Housing and Redevelopment Authority's Board of Commissioners 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. B. CRITICAL ISSUES • Failure to approve the PHA Plan: will result in receiving anon-compliance status with HUD. "Non-compliance" violates the contracts the HRA has with HUD and results in a loss of administrative and assistance funds. C. FINANCIAL • Richfield HRA has four contracts for administrative and rent assistance funds with HUD. Annually, the Richfield HRA receives $1,186,488 for rental assistance payments and $144,864 for administrative payments. A current PHA Plan is a requirement of these contracts. • D. LEGAL • 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 on July 25, 2001 in the Sun Currenf of the availability to review the Plan and of the public hearing to be held concerning plan approval. The publication schedule is in compliance with HUD regulations. IV. ALTERNATIVE RECOMMENDATION(S) • Do not approve the PHA Plan at this time (the Richfield HRA would not be in compliance with HUD). V. ATTACHMENTS • Proposed policy changes (Attachment A). VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • Attachment A • Summary Update Richfield HRA Annual Plan, Year 2002 September 17, 2001 The annual PHA plan is a 20-page document. Known as HUD Form #50075, this plan provides a standard way for. all Public Housing Authorities _(PHA) and the Richfield..Housing and Redevelopment Authority (HRA) to report that the PHA complies with all. federal regulations. To summarize: ^ The mission of the Richfield HRA is the same as HUD's: to promote adequate and affordable housing, economic opportunity and a suitable living environment free from discrimination. ^ The Richfield 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 plan document ends with drug-free certification form a payment to influence federal transactions certificate and a three page certification form that the Richfield HRA does and will comply with all applicable federal regulations as listed on the certification and signed by the HRA Chair. The annual plan in its entirety is always available to the HRA Board and the public, and the plan is available in the Community Development Department. • AGENDA ITEM # 3 REPORT # 56 • • STAFF REPORT s ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 17, 2001 REPORT PREPARED BY: -JOHN STARK, COMMUNITY DEVELOPMENT MANAGER NnNrE, TlTrc REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR Nanrc, TiTC,e DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ©'"~ ITEM FOR HRA CONSIDERATION: Consideration of an Agreement identifying the uses for Tax Increment Financing in the Interchange West area. L RECOMMENDED ACTION: By Motion: Approve the attached Agreement identifying the uses for Tax Increment Financing in the Interchange West area. III. BACKGROUND ~ The specific and exclusive purposes for which tax increment financing (TIF) to be generated by development in the Interchange West Redevelopment Area are identified in the following documents: • The Redevelopment Plan and TIF Plan for the Interchange West area (approved, as modified, by the Richfield City Council and HRA); The Contract for Private Development for the Interchange West area (approved, as modified, by the Richfield HRA), and; The Tax Increment Pledge Agreement for the Penn Avenue Bridge Bonds (approved by the Richfield City Council and HRA) These documents, among other purposes, identify the uses, that are eligible for tax increment financing in this area as: 0917TIF • Public Redevelopment Costs as identified in the Redevelopment Plan and the TIF Plan for the Interchange West area; • Payment of principal and interest on the Penn Avenue Bridge Bonds; • Payment for administrative costs incurred by the City of HRA related to the project, and; • The creation of a Housing Trust Fund. The purpose of the attached agreement is to confirm, in a single document, the eligible uses for the tax increment to be generated in the Interchange West Redevelopment Area. No commitments are being modified in any way by this Agreement. III. BASIS OF RECOMMENDATION A. POLICY • The Redevelopment Plan and TIF Plan for the Interchange West area, the Contract for Private Development for the Interchange West area and the Tax Increment Pledge Agreement for the Penn Avenue Bridge Bonds all have some reference to the eligible uses for the TIF to be generated by the Best Buy Development. • The City Council gave. their approval of this agreement at their September 10, 2001 meeting. B. CRITICAL ISSUES • N/A C. FINANCIAL • The attached agreement confirms financial commitments for tax increment in the. Interchange West area. These commitments are already established. D. LEGAL • City and HRA legal counsel drafted the agreement under consideration. IV. ALTERNATNE RECOMMENDATION~S~ • Do not approve the agreement identifying the uses for Tax Increment Financing (TIF) in the Interchange West area. V. ATTACHMENTS • Agreement identifying the uses for Tax Increment Financing (TIF) in the Interchange West area. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Staff and legal counsel. AGREEMENT • This Agreemern is made and entered into as of this day of , 2001, by and between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) and the City of Richfield, Minnesota (City). This Agreemern relates to the use of certain funds of the. HRA in connection with the Richfield Redevelopment Project Area (Project Area) established by the HRA and the Interchange West and Lyndale Gateway Tax Increment Financing District ('ITF District) established by the HRA and the City within the Project Area, all in accordance with Minnesota Statutes, Sections 469.274 to 469.1792, the Tax Increment Financing Act (Act). The City and the HRA have duly adopted a redevelopment plan for the Project Area (Redevelopment Plan) and a tax increment., financing plan (TIF' Plan) for the TIF District. In consideration of the premises and the mutual undertakings of the parties HRA and City • agree as follows: Section 1. Back round. 1.01. Pursuant to the .Act, the HRA anticipates receiving substantial amounts of tax • incremerns (Tax Incremerns) from the TIF District. 1.02. The Tax Increments have been programmed by the HRA and City to be used for the following purposes authorized by the Act: DJTC-20000~3v1 a) the Public Redevelopment Costs associated with the TIF District and the Project Area as idernifed in the Redevelopment Plan and the TIF Plan; b) the scheduled payment of principal and interest on the City's General Obligation Tax Incremern Bonds, Series 2001 A (Bonds) and other similar bonds issued by the City for Public Redevelopment Costs in the Project Area all as embodied in a certain Tax Incremern Pledge Agreement between City and HRA, dated March 26, 2001 {Pledge Agreement); c) the payment by the HRA to the City of charges for administrative services rendered by Crty to HRA; and . d) the creation and maintenance of a Housing ?rust Fund to be used by the HRA to assist in the construction and financing of replacement housing in the Project Area 1.03. It is reasonably expected by the HRA and the City ihat 100% of the Tax Incremerns will be necessary to carry out the purposes of clauses a) through d) of Section 1:02 and will in fact be expended solely for those purposes. 1.04. The HRA agrees with and pledges to the City that it-will not use the ?ax Increments for any Purposes other than: • a) the Purposes set out in Section 1.02; b) any purpose authorized by the Act and embodied in a duly adopted modification. of the TIF Plan or the Redevelopment Plan. - III WITNESS WI~~REOF, the HRA and the City have caused the agreement to be executed b~• their properly authorized officers as ofthe dace first written above. ~- _ CITY OF RICHFIELD, MINNESOTA By Mayor By City Manager RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY By - =- ~ Chair By Executive Director D~~:-zooboa~~~