04-18-94 agendaCITY OF RICHFIELD
HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, APRIL 18, 1994
*************,t******************~t**~r*****************************
SPECIAL CITY COUNCIL MEETING HELD CONCURRENTLY
WITH REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ITEMS TO BE CONSIDERED BY CITY COUNCIL:
1. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AMENDING
RICHFIELD COMPREHENSIVE PLAN MAP RELATING TO CSM REDEVELOPMENT
PROJECT AND RELOCATION OF EMERSON AVENUE CONGREGATIONAL CHURCH
COUNCIL LETTER NO. 118
2. PUBLIC HEARING ON CONSIDERATION OF PLANNED UNIT DEVELOPMENT
PLAN AND SECOND READING OF ORDINANCE AMENDMENT TO REZONE CSM
PROJECT AREA FROM HIGH DENSITY COMMERCIAL TO PLANNED GENERAL
COMMERCIAL
COUNCIL LETTER NO. 119
3. PUBLIC HEARING ON CONSIDERATION OF FINAL DEVELOPMENT PLAN AND
CONDITIONAL USE PERMIT FOR PHASE I DEVELOPMENT OF CSM PROJECT
COUNCIL LETTER N0. 120
ITEM TO BE CONSIDERED BY HRA:
4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE
OF PROPERTY TO CSM CORPORATION TO PROVIDE FOR CONSTRUCTION OF
PHASE I SHOPS AT LYNDALE AND RELOCATION OF EMERSON AVENUE
CONGREGATIONAL CHURCH
HRA LETTER NO. 31
ADJOURNMENT OF SPECIAL CITY COUNCIL MEETING
******~t*~*****~~*~*******~~~*~t*******~******~~****~***********~**
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
IMMEDIATELY FOLLOWING SPECIAL CITY COUNCIL MEETING
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF (1) HRA MEETING OF MARCH 21, 1994 AND (2)
HRA MEETING HELD CONCURRENTLY WITH CITY COUNCIL MEETING OF MARCH
28, 1994
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE
AGENDA
2. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF RICHFIELD REDISCOVERED PROPERTY AT 7245 12TH AVENUE TO
JESPERSEN BUILDERS IN ACCORDANCE WITH DEVELOPMENT AGREEMENT
HRA LETTER N0. 32
3. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF RICHFIELD REDISCOVERED PROPERTY AT 6926 CHICAGO AVENUE
TO QUAM, SUMNICHT, AND ASSOCIATES IN ACCORDANCE WITH
DEVELOPMENT AGREEMENT
HRA LETTER NO. 33
4. CONSIDERATION OF STATUS REPORT ON COMMUNITY APARTMENT PROGRAM
HRA LETTER NO. 34
5. CONSIDERATION OF AUTHORIZATION TO FUND RICHFIELD REDISCOVERED
NEW CONSTRUCTION
HRA LETTER NO. 35
6. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF CONTRACT
WITH SOUTH HENNEPIN TECHNICAL COLLEGE TO INITIATE 1994-95
RICHFIELD REDISCOVERED PROJECT AT 7021 NICOLLET AVENUE
HRA LETTER N0. 36
7. CONSIDERATION OF RESOLUTION AUTHORIZING MODIFICATION TO
RICHFIELD HOUSING REHABILITATION PROGRAM PROCEDURAL GUIDE FOR
DEFERRED LOAN PROGRAM
HRA LETTER N0. 37
8. EXECUTIVE DIRECTOR REPORT
9. 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 861-9702.
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 37
Agenda April 18, 1994
Issue Statement:
Review and approve of modifications to the Richfield Housing
Rehabilitation Program Procedural Guide.
Background:
The Community Development Hlock Grant (CDHG) Deferred Loan Program is
administered by the HRA in accordance with a procedural guide. The
guide was last reviewed by the HRA in 1988. The primary objective of
the Deferred Loan Program is to upgrade and maintain existing
Richfield housing owned by lower income persons. In the last three
years (1991-1993), over $390,000 in CDHG funds was expended to assist
approximately 45 low income homeowners in maintaining their homes.
The loan becomes a lien on the borrower's property for 30 years or
payable upon sale or conveyance of title. In 1993, over $40,000 in
loans were paid back to the HRA. Additional loans are provided from
payoffs as received.
Repairs and improvements covered by the deferred loan address major
maintenance, health, safety and energy issues. Examples of
improvements include installing roofs, new gutters, windows and
doors, updating the electrical service to 100 amps, installing
handrails, bathroom exhaust fans and smoke detectors. Funds may also
provide major repairs to deteriorating bathrooms and assist
• households that face overcrowding and accessibility issues.
Currently the maximum loan amount is $10,000.
Hennepin County provides CDBG funds to the City and has recommended
changes to the program guidelines. The requested changes proposed
for HRA adoption are discussed in greater detail on the summary
sheet.
The proposed changes:
• Increase the deferred loan limit from $10,000 to $15,000.
• Increase loan limit for accessibility improvements from $15,000 to
$20,000.
• Increase the income limit for accessibility improvements from 50
percent up to 80 percent of median.
• Modify the method of calculating interest rates charged to
homeowners if the future loan repayment is unreasonably delayed.
• Drop reference in the guide to the HUD Section 312 program which
has been discontinued.
• A copy of the guideline as revised is attached.
Recommended Motion:
Authorize the Executive Director to make modifications to the
Richfield Housing Rehabilitation Program Procedural Guides for the
Deferred Loan Program as outlined herein.
Basis of Recommendation:
1. HUD requires Hennepin County and Richfield to use a
procedural guide to administer a CDBG Rehabilitation Loan
Program.
2. Hennepin County is proposing changes in their procedures
which provide Richfield the opportunity to update their
procedures also.
3. The costs of materials and supplies have increased and fewer
items which are in need of repair can be covered under the
existing loan limit of $10,000. Costly items, such as a new
roof, new furnace, or new storm windows, could use up to half
of the loan.
4. Eligible homeowners usually have very few assets and are
unable to pay for work that exceeds the current loan amount.
5. Items not covered by the loan will continue to experience
deferred maintenance and fall into greater disrepair. The
homeowner is not being sufficiently assisted.
6. The requested increase in the loan limit from $10,000 to
515,000 is acceptable to HUD and consistent with the county's
increase from 510,000 to 515,000
• 7. Improvements for accessibility are critical for many persons
and families who may be just over the 50 percent median
income limit, but have virtually no assets. Very few
households have been served at the lower limit.
8. Accessibility improvements often entail significant
structural and hardware changes which are more costly than
general home repairs.
7. The existing formula for determining the interest rate
charged on .loans not repaid within 30 days of sale is
cumbersome and time consuming to calculate.
Alternative Recommendation:
1. Modify the proposed changes further, contingent on HUD and
Hennepin County acceptance of those changes.
2. Do not make any changes to the Procedural Guide at this time.
Discussion/Decision Mode:
If authorized, staff would implement changes immediately.
Resp ly submitted,
James Prosser
Execu a Director
JDP:ds
HRA RESOLUTION N0.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING MODIFICATION TO
THE RICHFIELD REHABILITATION DEFERRED LOAN PROGRAM
WHEREAS, the Richfield Housing and Redevelopment Authority
provides a Rehabilitation Deferred Loan Program which utilizes
CDBG funds to assist lower income homeowners with rehabilitation
of their homes; and
WHEREAS, the Program Procedural Guides were approved by the
_HRA-in 1988 and: are modified periodically. as .program requirements
and needs dictate; and
WHEREAS, Hennepin County and Richfield staff have identified
modifications to the Program Procedural Guides; and
WHEREAS, the HRA has reviewed these modifications as
follows:
1. Increase maximum loan amount to $15,000 from $10,000.
2. Provide up to $20,000 for accessibility improvements.
• 3. Increase the income limit for accessibility improvements
from 50~ to 80$ of median.
4. Modify the method of calculating interest rates charged to
homeowners if the future loan repayment is unreasonably
delayed.
5. Drop reference in the Guide to the HUD Section 312 program,
which has been discontinued.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota, that the Executive Director is authorized to modify
Richfield Rehabilitation Deferred Loan Program Procedural
Guidelines as described herein.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 18th day of April 1994.
Thomas E. Harms, Chairperson
ATTEST:
•
Vern Luettinger, Secretary
•
SUMMARY OF CHANGES
To the Richfield Housing Rehabilitation
Program Procedural Guide: April 18, 1994
1. Increase the Deferred Loan limit to 515,000 (paae 37)
The existing loan limit is $10,000. Bids for work to be
performed consistently exceed this amount. In the last six
years costs have increased sufficiently so that the maximum
loan amount does not cover all the needed repairs. The home
is left only partially assisted. In the majority of cases,
the homeowners do not have enough assets to cover the costs
that exceed the loan limit. Following is an example of bids
received for several loan recipients, and the actual loan
amount they received. The lowest bid is always adjusted by
dropping repairs until the maximum .loan amount is achieved.
Loan Number
CD-312
CD-292
CD-321
CD-310
CD-306
CD-297
BID 1
$14,451.00
$16,329.00
$16,696.24
$10,954.00
$13,853.40
$16,935.00
BID 2
$15,575.00
$17,319.00
$19,126.00
$15,278.00
$15,960.00
$14,958.00
Loan Amount
$10,000.00
$ 9,740.00
$10,000.00
$10,000.00
$ 9,939.40
$10,000.00
An increased loan amount would more closely cover the scope of
work identified in these bids.
2. Increase the Loan Limit for Accessibility Improvements
S page 37 )
The current guideline allows $15,000, or $5,000 over the
loan limit. This adjustment reflects the greater expense
related to structure and hardware when making accessibility
improvements in addition to repairs. Consistent with the
increase in the overall loan limit, the accessibility loan
limit would became $20,000.
3. Chanae the Income Eliaibilitv for HandicaoAed Accessibilit
(page 22)
Currently, income eligibility is determined at 50$ of the.
metropolitan area median income for .all deferred loan
applicants. Raising the eligibility standard to 80$ for
those with accessibility needs would provide assistance. to a
greater number of homeowners who may be slightly over the
50~ requirement, but do not have enough resources to make
the changes their home may need to improve livability.
Hennepin County has this same standard.
Family Size Low (80~) Very Low (50$)
1 $27,800 $17,350
2 $31,750 $19,850
3 $35,700 $22,300
4 539,700 $24,800
5 $42,850 $26,800
6 $46,050 $28,750
4. Change the Formula for Determining the Interest Rate on
Loans Not Paid Back Immediately (page 32)
If payment is not received within 30 days of sale or
transfer of the property, interest will begin to accrue on
the loan. The current procedure is difficult to calculate
and very cumbersome. The recommended change bases the
interest rate on one percent over the prime rate, as
determined on the first day of non-payment, or the 31st day
after sale or transfer.
5. Drop References to the HUD Section 312 Rehabilitation
Loan Program
This program is no longer available.
C~
•
TABLE OF CONTENTS
PAGE
PROCEDURAL GUIDES
I. Administrative Procedure ...... ....................... 1
II. Eligibility and Priority Guidelines.......... ....... 2
COMMUNITY DEVELOPMENT BLOCK GRANT-HOME REHABILITATION LOAN PROGRAM
.Section I DEFINITIONS
A. Housing Rehabilitation Deferred Loan ................. 4
B. Applicant ............................................ 4
C. Borrower.... ....................................... 4
D. Deferred Loan•Package ................................ 4
E. Resident............ ................ ............. 4
F. Household Gross Income......... .................... 4
G. Assets ............................................... 5
H. Handicapped Person ............................. .... 5
I. Accessibility Improvements ........................... 5
J. Administrating Entity ................................ 5
Section II CONDITIONS GOVERNING ADMINISTRATION
A. Amendments; Directives ............................... 5
B. Federal and State Regulations ........................ 5
C. Administrative Subcontracts .. ....................... 6
D. Delivery of Deferred Loan Funds ...................... 6
E. Approval of Deferred Loan Packages ................... 6
F. Administrative Costs ................................. 6
G. Certifications ....................................... 7
H. Expediency of Deferred Loan Processing ............... 7
Section III RESPONSIBILITIES OF THE HRA
A. Outreach and Public Information ...................... 8
B. Inspection of Properties ............................. 8
C. Applicant Selection Criteria ......................... 9
D. Preparation of Scope of Improvements and Cost
Estimates ............................................ 10
E. Preparation of Deferred Loan Packages ................ 10
F. Requests for Changes in Deferred Loan Amount......... 11
G. Disbursement of Funds ................................ 11
H. Prohibition of Service Fee Charges ................... 12
Section IV ELIGIBLE PROPERTIES .......................... 12
Section V IMPROVEMENT STANDARDS ........................ 13
ELIGIBLE IMPROVEMENT ......................... 17
Section VI ELIGIBLE RECIPIENTS .......................... 21
A. Ownership ........... ................................ 21
B. Household Gross Annual Income ......................... 22
C. Asset Determination .................................. 26
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PAGE
Section VII DEFERRED LOAN PACKAGES ....................... 27
A. Homeowner Application for Deferred Loan .............. 27
B. Property Inspection Report ........................... 28
C. Scope of Improvements and Work Proposal .............. 29
D. Contractor Bids ...................................... 29
E. Work contract ........................................ 29
F. Income verification .................................. 29
G. Asset Verification ................................... 30
H. Individual Data Confidentiality........... ......... 30
I. Title Verification Form ..... ........................ 30
J. Mortgage Status Verification ......................... 31
K. Repayment Agreement ........... ...................... 32
L. Emergency Deferred Loan Approval ..................... 36
M. Improvements Certificate ............................. 36
N. Data on Individual Grants and Loans. ............... 37
O. Proceed To Work Order ................................ 37
P. Amendment Request Certificate ........................ 37
Q. Contractor Bills ........................... ........ 38
R. Completion Certificate ............................... 38
S. Complaint Record ..................................... 38
T. Acknowledgment of Data Confidentiality ............... 38
U. Entry Permit ......................................... 38
V. Zoning Verification .................................. 39
W. Sworn Construction Statement ......................... 39
X. Lien Waivers ......................................... 39
Y. Lead Based Paint Poisoning ........................... 39
Z. Adverse Claim Form ................................... 39
AA. Ammendment to Deferred Loan Agreement ................ 40
Section VIII ACCEPTANCE PROCEDURES ........................ 40
A. Review of Deferred Loan .............................. 40
B. Notification of Ineligibility ........................ 41
C. Loan Approval ........................................ 41
Section IX COMPLETION AND DISBURSEMENT PROCEDURES....... 41
A. Completion Procedures ................................ 42
B. Disbursement Procedures .............................. 43
Section X POST CONSTRUCTION ISSUES
A. Construction Problems ................................ 44
B. Bankruptcy Cases and Foreclosures .................... 45
Section XI EMERGENCY DEFERRED LOAN GUIDELINES........... 45
Section XII PROCEDURES FOR DEFERRED LOANS INCLUDING
ACCESSIBILITY IMPROVEMENTS ................... 47
A. Accessibility Improvements ........................... 47
B. Requirements for Participation ....................... 48
C. Amount of Deferred Loan for Accessibility
Improvements ......................................... 48
D. Responsibilities of the HRA .......................... 49
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Section XIII GENERAL CONDITIONS RELATING TO DEFERRED L0ANS.50
A. Urban Hennepin County Equal Opportunities/Affirmative.50
Action Requirements
Section XIV RICHFIELD FLOOD GRANT PROGRAM ............... 51
A. Applicant.Selection ............... ................. 52
B. Ownership ..................................... .... 52
C. Income and Assets ................................... 53
D. Zoning .............................................. 53
E. Eligible Improvements........ ....................... 53
F. Amount of Grant ..................................... 53
G. Ineligible Improvements .................. .......... 54
H. Competitive Bids .................................... 54
I. Insurance Requirement .. ............................ 54
J. Repayment Agreement ................................. 54
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RICHFIELD HOME REHABILITATION PROGRAMS
Procedural Guides
These guidelines as adopted by the Housing and Redevelopment
Authority of Richfield, Minnesota, set forth the process and
criteria for reviewing applications for the Richfield Home Reha-
bilitation Program.
The three existing types of rehabilitation assistance are as
follows:
1) Community Development Block Grant (CDBG) Home Rehabilita-
tion Deferred Loan.
2) Flood Grants
The objective of these assistance programs is the upgrading and
maintenance of the Richfield housing stock by assistance to low
and moderate-income people.
From time to time, the HRA may, by resolution, discontinue or add
programs. At that time, these administrative guidelines will be
amended to reflect those changes.
I. Administrative Procedure
A. Responsibilities of Administrators
1. The Housing and Redevelopment Authority Board of
Commissioners are responsible for the establishment
and adoption of each program. They set forth the
intent and objectives of the programs. They are
responsible for the appropriation of the operating
funds. The Commissioners will also hear appeals
from applicants as presented by the Executive Direc-
tor.
2. The Executive Director of the HRA will review and
forward any pertinent information to the HRA Commis-
sioners. The Executive Director will also receive
written appeals and take whatever action is appro-
priate.
3. The HRA staff will be responsible for taking and
processing applications and obtaining all necessary
information to complete them. The staff is respon-
sible for interpreting the guidelines established
and approved by HRA Commissioners. Applications
will be reviewed for eligibility as they are re-
ceived. Upon review of each application, the staff
will determine which applications are eligible and
which applications are denied according to the
review guidelines and criteria. Applicants will be
notified in writing of the decision.
-1-
4. A Summary of the grant and loan cases and actions
taken, relating to each case, will be written and.
forwarded to the Housing and Redevelopment Commis-
sioners, as requested.
5. An applicant who is denied funding may re-apply
after 90 days and be reconsidered on the basis of
new information. The decision of the HRA staff will
be final; however, appeals may be made in those
cases where applicants believe they were not treated
equitably.' Appeals shall be in written form and
submitted to the HRA staff administrator outlining
the applicant's concerns. An HRA staff review will
evaluate the appeals. If a solution by the staff is
not reached, the case will be referred to the Execu-
tive Director of the HRA for review. A reply in
written form to the appeal will be sent to the
applicant within fifteen (15) days.
6. CDBG Funds are received from Hennepin County as part
of an entitlement grant. The County has adapted
guidelines for distribution of this money for
housing rehabilitation activities to include:
•
1. Rehabilitation Deferred Loans
2. Flood Grants (special set aside)
An applicant receiving one type of grant or loan is
eligible to receive a grant or loan of another type
if all eligibility requirements are met.
II. Eligibility and Priority Guidelines
The eligibility and priority guidelines follow. Application
will be reviewed and processed according to the criteria
established.
•
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PROCEDURAL GUIDE
COMMUNITY DEVELOPMENT BLOCK GRANT
HOME REHABILITATION DEFERRED LOAN PROGRAM
•
REVISED: APRIL 1994
-3-
COMMUNITY DEVELOPMENT BLOCK GRANT
HOME REHABILITATION DEFERRED LOAN PROGRAM
I. Definitions
A. Housing Rehabilitation Deferred Loan means the.commit-
ment of funds on behalf of recipients for the purpose of
making eligible improvements to eligible properties, as
described in Section IV and V of these Procedural
Guides.
B. Avplicant means an individual or household submitting an
application for a loan who has not yet been approved for
funding.
C. Borrower means an individual or household meeting the
requirements of Section VI who applies for and receives.
a deferred loan.
D. Deferred Loan Package' The "Deferred Loan Package"
consists of all documents listed below and explained in
Section VII.
-Homeowner Application
-Individual Data Confidentiality
-Entry Permit
-Lead-Based Paint Poisoning Notification
-Income Verification
-Asset Verification
-Mortgage Status Verification
-Title Verification
-Property Inspection Report
-Scope of Work
-Improvement Certificate
-Contractor Bids
-Work Contract
-Contractor's Acknowledgement of Data Confidentiality
-Amendment. Request Certificate (if needed)
-Contractor Bills
-Completion Certificates
-Sworn Construction Statement
-Lien Waivers
-Data on Individual Loans
-Repayment Agreement
-Complaint Record (if needed)
E. Resident means a person, other than a renter, living in
the household, for at least nine months of the year.
F. Household Gross Income means the annual income of all
residents of the applicant's/borrower's household, as
determined in accordance with Section VI.
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G. Assets means the property, real or otherwise, of an
applicant's/borrower's household, as determined in
accordance with Section VI.
H. Handicapped Person means a person who has a permanent
physical condition which substantially impairs the
ability to function independently in a residential
setting, or which substantially limits such person's
ability to become employed or to participate in the
community. A person with a condition such as chronic
emphysema, ar hritis, heart disease and other "invisible
conditions not requiring the use of devices to increase
mobility shall not be deemed a Handicapped Person,
unless a licensed physician verifies in writing that
such person's condition does substantially limit his or
her ability to function independently in a residential
setting or to become employed or to participate in the
community.
I. Accessibility Improvements includes improvements to one
or two unit dwellings which are designed to enable a
handicapped person to function independently in a resi-
dential setting, such as provisions for adequate space
for maneuvering, access and egress (both in exterior and
interior- spaces), and locations of equipment to facili-
tate ease of use.
J. Administerina.Entit~ means the person (Deferred Loan
Administrator) and/or agency (Richfield HRA) processing
the deferred loan.
II. Conditions Governing Administration
A. Amendments; Directives
These Procedural Guides may be amended or supplemented
from time to time by Urban Hennepin County and the HRA
by issuance of revised pages, which shall be effective
as of the date of issue, or such later date as the
amendment shall specify. Administrative memoranda may
also be issued which discuss policy interpretations,
clarification of procedures and other administrative
matters. If the HRA wishes to deviate in any way from
these procedural guides the proposed change must be
described in writing and be granted written approval-
.. from Hennepin County.
B. Federal and State Regulation
Nothing in these Procedural Guides shall be construed
in such a manner as to conflict with, alter, or amend
any federal or state regulation applicable to the
conduct of the HRA's business, affairs, or functions.
-5-
C. Administrative Subcontracts
The HRA may enter into agreements with .other entities
for the purpose of obtaining assistance in the perfor-
mance of certain administrative tasks with respect to
the delivery of Deferred Loan Funds. Regardless of
such agreements, the HRA shall fulfill the following
requirements:
1. The HRA shall bear full responsibility for the per-
formance of any subcontracting entity with respect
to the Deferred Loan Program. Such performance
shall include, but is not limited to, the full
adherence to policies and procedures set forth in
these Procedural Guides.
2. The HRA is fully liable for all warranties and
representations made regardless of who does the
actual origination and/or packaging of deferred
loans.
D. Deliverv of Deferred Loan Funds
The HRA must disburse funds to contractors for completed
work, in compliance with Sections III-B and IX-B. The
HRA will be reimbursed by Hennepin County for deferred
loan amounts as outlined in Section IX. The HRA may
make and deliver deferred loans having an aggregate
principal amount not to exceed the amount stated in
Section VII-M.
E. Approval of Deferred Loan Packages
No work may commence on any structure prior to the
proper completion of work contract and Proceed to Work
Order referring to specific work items under that par-
ticular deferred loan.
F. Administrative Costs
Any city may exercise the option to allow Hennepin
County to administer the program within the city. In
this event, Hennepin County will assess a fee equal to
10 percent of total CDBG funds allocated by the City for
Housing Rehabilitation. The city may then recapture
only administrative expenses directly related to housing
inspection. If the HRA administers the program locally,
the administrative costs cannot exceed 10 percent of the
total rehabilitation allocation in any single year.
The HRA will recapture all costs related to the adminis-
tration of the program up to that limit.
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G. Certifications
The HRA hereby makes the following warranties on the
date that each Deferred Loan Submission package is
submitted for acceptance:
1. The HRA is legally authorized and constituted to
administer the Housing Rehabilitation Deferred Loan
Program in the State of Minnesota.
2. No payments, fees, or renumeration of any type what-
. soever have been solicited or received from any
Deferred Loan Recipients or Applicants.
3. After reasonable inspection, the HRA has no knowl-
edge that any improvement covered by the deferred
loan is in violation of any applicable zoning law or
regulation.
4. Any employee of the HRA who is authorized to sign or
countersign checks, drafts, or to certify vouchers
shall be covered by a fidelity and forgery bond in
an amount at least equal to the lesser of $25,000.00
or one-third (1/3) of the City's total authorized
Deferred Loan Funding; such an employee must be an
authorized signatory as evidenced by a written in-
strument of the governing body. •
5. The HRA shall maintain documentation accounting for
all funds received through the collection of liens
as prescribed in the Repayment Agreement. Such
funds must be submitted to Hennepin County since
they are identified as program income. Urban
Hennepin County shall allocate the funds for reuse
in the HRA's most currently funded Community Devel-
opment Block Grant Housing Rehabilitation Program.
6. If, as to any deferred loan disbursed by the HRA,
any of the warranties contained in Section II-G is
in fact untrue in any respect, then the County may,
at its .option, take whatever action it-deems neces-
sary, including legal action, to recover from the
recipient and/or the HRA, the Deferred Loan Funds so
disbursed in violation of such warranties.
H. Expediency of Deferred Loan Processing
Deferred loans shall be processed in a reasonable length
of time in an efficient and accurate manner. Normally,.
a deferred loan shall be completed, with the repayment
agreement filed within six (6) months.
-7-
III. Responsibilities of the HRA
A. Outreach and Public Information
The HRA will be primarily responsible for the promotion
of the Deferred Loan program at the local level. The
HRA must exercise care in avoiding any advertising or
outreach method which may be deemed to systematically
exclude potentially eligible ,applicants. Access to
program materials may not be denied to any person for
any reason.
The program should include efforts to reach those
persons who traditionally would not have been expected
to apply for housing programs. In order to develop an
affirmative marketing program, the HRA should review
its normal outreach methods to determine how the meth-
ods currently in use can be improved to reach out to
persons who otherwise might not apply for assistance
under the Deferred Loan Program.
B. Inspection of Properties
The HRA shall be responsible for carrying out a minimum
of two inspections of each approved property.
1. One inspection shall be accomplished prior to the
`submission of'the Deferred Loan Package to determine
the following:
a. That all necessary improvements are listed in a
Property Inspection Report, as described in
Section VII.
b. That the Scope of Work shall be developed by the
HRA from the Inspection Report. The work shall
be bid in accordance with the technical specifi-
cations; and
c. That the structure, upon completion of necessary
repairs, will be reasonably livable, safe, habit-
able and energy efficient; and
d. That the structure, upon completion of necessary
repairs, will be economically viable, such that
the amount of the Housing Rehabilitation Deferred
Loan may be amortized over the expected remaining
life of the property in an economically prudent
manner. A structure is considered economically
viable where the cost of needed repairs does not
exceed the amounts of funds from this and other
sources that are available for rehabilitation.
Generally, the amount of the Deferred Loan should
not exceed 50 per cent of the market value of the
-8-
property as indicated on the property tax state-
ment.
2. After all work is finished, the second mandatory
inspection shall take place, to determine that all
work has been completed in a satisfactory manner,
consistent with these guides, the Scope of Improve-
ments, the contractors bid and the work contract.
The HRA may conduct interim inspections of. the
property as it deems necessary. Partial disburse-
ment of funds may be authorized by the HRA after:
a. An interim inspection is conducted by the HRA;
and
b. The HRA determines that the specific work for
which payment is requested has been completed in
a satisfactory manner; and
c. A Completion Certificate is executed by all
parties for the work completed.
Partial payment can be received by the
contractor for an amount equal to 90$ of the
cost of completed work.
C. Anolicant Selection Criteria
The HRA will implement a first come, first served basis
for applicant selection.
It is imperative that each application be dated immedi-
ately upon receipt. The date of Receipt shall be used
as the sole criteria for recording priority ranking of
application.
In applying the first come, first served process, the
Deferred Loan Administrator must adhere to the following
guidelines:
1. The first come, first served process must be uni-
formly applied during the .entire funding year.
2. No eligible applicant shall be rejected on the basis
of judgments as to the personal character or life-
style.
3. The HRA will allow for the consideration of applica-
tions on emergency basis by utilizing the Emergency
.Deferred Loan Procedures outlined in Section X, in
cases which require more rapid approval than is
possible through normal selection and approval
system.
-9-
4. Where no funds are available for assistance to
• eligible applicants, the following procedure shall
be used:
a. Explain to the applicant that the funding for
the current year has been either depleted or
allocated.
b. Make the applicant aware of the other possibili-
ties which include the MHFA Rehabilitation
Deferred Loan and/or Low Interest Loan programs
and other local, state and federal programs.
c. Send the homeowner a letter indicating that the
application has been placed on a waiting list
but there is no guarantee of future funding.
This letter should also outline other possible
avenues of obtaining home improvement funds.
Hennepin County requires all cities to implement a first
come, first served applicant selection process.
If the HRA wants to implement an objective criteria
system, including a priority ranking of applicants
and/or a deferred loan review committee; an explanation
of the system, the objectives intended to be accom-
plished by the use of such a system and an explanation
of the selection and function of the deferred loan
review committee must be submitted to Hennepin County
for review prior to the start of the funding cycle.
D. Preparation of Scope of Work and Work Proposal
The Scope of Work is based on the Property Inspection
report. The HRA must provide the homeowner with a copy
of the Scope of Work as described in Section VII of
these guides. The Scope of Work will list all eligible
improvements on which to obtain contractor bids.
The HRA may provide assistance to the homeowner in
obtaining bids for rehabilitation. Such assistance must
include providing the homeowner with a copy of the Scope
of Work as described in Section VII of these guides.
The homeowner must obtain a minimum of two bids for each
of the authorized improvements.
E. Preparation of Deferred Loan Package
The Deferred Loan Administrator shall be responsible for
the thorough and accurate completion of all program
documents, as specified in Section VII of these Proce-
dural Guides. Care must be taken to maintain current
information on the eligibility of the borrower consis-
tent with Section VI.
-10-
The Deferred Loan Administrator will assist the Borrower
with the preparation of the Deferred Loan Package, upon
request, in certain situations. Such assistance shall
include a personal visit by the Deferred Loan Adminis-
trator to the home of the Applicant, or to any reason-
able location which is accessible to the Applicant.
Assistance will also be given, when needed, to complete
necessary tasks required to complete the Deferred Loan
Package, i.e., soliciting bids for Deferred Loan Im-
provements, when absolutely necessary. The borrower
must be notified that the HRA does not endorse or recom-
mend any contractor(s) and that the administrating
entity accepts no responsibility for the performance of
the contractor(s) appointed to carry out the work.
F.
Requests for Changes in Deferred Loan Amount
At the discretion of the Deferred Loan Administrator, an
expenditure of funds in excess of the approved loan
amount may be approved in the event of justifiable over-
runs in the cost of improvements. The Deferred Loan
Administrator must document increases or decreases in
the loan amount according to the following procedures.
1. All requests for increases or decreases must be
submitted on an Amendment Request Certificate, (See
Sec. VII-P) signed by the homeowner and contractor,
and Deferred Loan Administrator; and
2. The Deferred Loan Administrator shall inspect the.
property to determine that the increase or decrease
is justified; and
G.
3. Authorization will be issued for those deferred loan
amount increases or decreases which meet the eligi-
bility criteria set forth in Section VI of these
Procedural Guides. Such authorization will be given
on the Amendment Request Certificate through the
signature of the Deferred Loan Administrator.
4. Where a new contractor is chosen, a Work Contract
must be executed by the borrower and contractor.
5. In no case shall the amount of the Deferred Loan
exceed the maximum Deferred Loan Amount as stated in
Section VII-M, except in the cases of Accessibility
deferred Loans as discussed in Section XI of these
Procedural Guides.
Disbursement of Funds
The HRA shall .bear the responsibility of disbursing
funds to contractors who have performed work as de-
scribed in the Improvements Certificate.
-11-
The HRA shall make no disbursement for any work complet-
ed until the property has been inspected and a Comple-
tion Certificate has been signed, according to the
procedures set forth in Section IX of these Procedural
Guides.
H. Prohibition of Service Fee Charges
The HRA shall not charge an applicant or recipient any
application, processing, or other fee.
IV. Eligible Properties
Deferred Loan Funds shall be used to enable Recipients to
improve properties which meet the following .criteria.
A. The property to be improved must not be in violation of
applicable zoning ordinances. Properties being im-
proved must constitute a permitted use or be subject to
a conditional or special use permit under the applica-
ble zoning ordinances including municipal, urban renew-
al, and development district plans, which use or permit
must not be impaired by the contemplated improvements.
B. The property must. be located within the City, must be
used primarily for residential purposes, and must
contain no more than two dwelling units, one of them
owner-occupied. Improvements can only be made to the
owner-occupied section unless the improvement serves
both units, such as a roof.
C. The property to be improved must be a permanent-exist-
ing structure.. That includes owner-occupied mobile
homes located on land owned by the applicant. Trailers
or mobile homes located on land not owned by the appli-
cant are not eligible.
D. No property shall be eligible for a Housing Rehabilita-
tion Deferred Loan if it has been improved by an HRA
authorized Deferred Loan within the five-year period
immediately preceding the date on which application for
such a Deferred Loan is made, except in extraordinary
circumstances relating to damage to the property as a
result of events beyond the control of the applicant or
improvements directly related to health and safety
concerns such as failure of plumbing, heating or elec-
trical systems as determined by the HRA. In such
circumstances, provided that funding is available, the
borrower if still eligible can receive assistance
limited to correcting the damaged or failed system(s)
only. No other eligible work can be carried out until
another 5 year period has elapsed, except in the ex-
traordinary circumstances outlined above. Should a
previous recipient have a need for additional improve-
-12-
ments and no other qualified persons apply, the previ-
ous recipient would be considered for a Deferred Loan.
V.
E. The HRA will not accept or subrogate to a lien posi-
tion, either at the time of repayment filing or during
the life of the lien of a property that has previous
mortgages, pledges or encumbrances exceeding the Esti-
mated Market Value as determined by the Hennepin County
Assessor's Office. Such security of lien position
shall be verified prior to approval of the Deferred
Loan application for processing.
Improvement Standards
Goals for Housing Rehabilitation Assistance have been estab-
lished for each city included in the Urban Hennepin County
Housing Assistance Plan (HAP). For the property to be
counted toward meeting housing rehabilitation goals in the
HAP, it must be determined to be substandard and upon com-
pletion of rehabilitation must meet minimum Section 8 Exist-
ing Quality Standards pursuant to 24 CFR,. as follows:
A. Sanitary Facilities
1. Performance Requirement. The dwelling unit shall
include its own sanitary facilities which are in
proper operating condition, can be used in privacy,
and are adequate for personal cleanliness and the
disposal of human waste.
2. Acceptability Criteria. A flush toilet in a sepa-
rate, private room, a fixed basin with hot and cold
running water, and a shower or tub with hot and cold
running water shall be present in the dwelling unit,
all in proper operating condition. These facilities
shall utilize an approved public or private disposal
system.
B. Food Preparation
1. Performance Requirement. The dwelling unit shall
contain suitable space and equipment to store,
prepare, and serve foods in a sanitary manner.
There shall be adequate facilities and services for
the sanitary disposal of food wastes and refuse,
including facilities for temporary storage where
necessary.
2. Acceptability Criteria. The unit shall contain the
following equipment in proper operating condition:
a cooking stove or range and a refrigerator of
appropriate size for the unit and a kitchen sink
with hot and cold running water. The sink shall
drain into an approved public or private system.
-13=
Adequate space for the storage, preparation and
serving of food shall be provided. There shall be
adequate facilities and services for the sanitary
disposal of food wastes and refuse, including
facilities for temporary storage where necessary
(e.g., garbage cans).
C. Space and Security
1. Performance Requirement. The dwelling unit shall
afford the borrower adequate space and security.
2. Acceptability Criteria. A
area, and bathroom shall be
dwelling unit shall contain
or living/sleeping room of
each two persons.. Exterior
accessible from outside the
able.
D. Thermal-Environment
living room, kitchen
present: and the
at least one sleeping
appropriate size for
doors and windows
unit shall be lock-
1. Performance Requirement. The dwelling unit shall
have and be capable of maintaining a thermal envi-
ronment healthy for the human body.
2. Acceptability Criteria. The dwelling unit shall
contain safe heating facilities which are in proper
operating condition and can provide adequate heat
to each room in the dwelling unit to ensure a
healthy living environment.
Unvented room heaters which burn oil or kerosene
are unacceptable.
E. Illumination and Electricity
1. Performance Requirements. Each
adequate natural or artificial
permit normal indoor activities
health and safety of occupants.
trical outlets shall be provide
essential electrical appliances
safety from fire.
2. Acceptability Criteria.
shall include at least on
wall type light fixture s
ing in the bathroom and k
electric outlets shall be
the living. area, kitchen
area.
room shall have
illumination to
and to support the
Sufficient elec-
d to permit use of
while assuring
Living and sleeping rooms
e window. A ceiling or
hall be present and work-
itchen area. At least two
present and operable in
area, and each bedroom
-14-
F. Structure and Materials
1. Performance Requirement. The dwelling unit shall
be structurally sound so as not to pose any threat
to the health and safety of the occupants and so as
to protect the occupants from the environment.
2. Acceptability Criteria. Ceilings, walls, and
floors shall not have any serious defects such as
severe bulging or leaning, large holes, loose
surface materials, .severe buckling or noticeable
movement under walking stress,. missing parts or
other serious damage. The roof structure shall be
firm. and the roof shall be weathertight. The
exterior wall structure and exterior wall surface
shall not have any serious defects such as serious
leaning, buckling, sagging, cracks or holes, loose
siding, or other serious damage. The condition and
equipment of interior and exterior stairways, halls
porches, walkways, etc., shall be such as not to
present a danger of tripping or falling. In the
case of a mobile home, the home shall be securely
anchored by a tiedown device which distributes and
transfers the loads imposed by the unit to appro-
priate ground anchors so as to resist wind over-
turning and sliding.
G. .Interior Air Quality
1. Performance Requirements. The dwelling unit shall
be free of pollutants in the air at levels which
threaten the health of the occupants.
2. Acceptability Criteria. The dwelling unit shall be
free from dangerous levels of air pollution from
carbon monoxide, sewer gas, fuel gas, dust, and
other harmful air pollutants. Air circulation
shall be adequate throughout the unit. Bathroom
areas shall have at least one openable window or
..other adequate exhaust ventilation.
H. Water_Supply
1. Performance Requirement. The water supply shall be
free from contamination.
2. Acceptability Criteria. The unit shall be served
by an approved public or private sanitary water
supply.
I. Lead-Based Paint
1. Performance Requirement. The dwelling unit shall
be in compliance with HUD Lead-Based Paint regula-
-15-
tions 24 CFR, Part 570, issued pursuant to the
Lead-Based Paint Poisoning Prevention Act, 42
U.S.C. 4801.
2. If the property was constructed prior to 1978, the
Family upon occupancy shall have been furnished the
notice required by HUD Lead-Based Paint regulations
and procedures regarding the hazards of lead-based
paint poisoning, the symptoms and treatment of lead
poisoning and the precautions to be taken against
lead poisoning. Documentation of the applicant's
receipt of the notice must be included in the file.
3. Acceptability Criteria. Same as Performance Re-
quirement.
J. Access
1. Performance Requirement. The dwelling unit shall
be usable and capable of being maintained without
unauthorized use of other private properties, and
the building shall provide an alternative means of
egress in case of fire.
2. Acceptability Criteria. The dwelling unit shall be
usable and capable of being maintained without
• unauthorized use of other private properties. The
building shall provide an alternative means of
egress in case of fire (such egress through win-
dows).
K. Site and Neighborhood
1. Performance Requirement. The site and neighborhood
shall be reasonably free from disturbing noises and
reverberations and other hazards to the health,
safety, and general welfare of the occupants.
2. Acceptability Criteria. The site and neighborhood
shall not be subject to serious adverse environmen-
tal conditions, natural or man-made, such as dan-
gerous walks, steps, instability, flooding, poor
drainage, septic tank backups, sewage hazards or
mudslides; abnormal air pollution, smoke or dust;
excessive noise, vibration or vehicular traffic;
excessive accumulations of trash, vermin or rodent
infestation; or fire hazards.
L. Sanitary Condition
1. Performance Requirement. The unit and its equip-
ment shall be in sanitary conditions.
-16-
2. Acceptability Criteria. The units and its equip-
ment shall be free of vermin and rodent infesta-
tion.
2. Eligible_Improvements
Improvements made with Deferred Loan Funds shall satisfy the
following requirements:
A. Each improvement must be a Permanent General Improve-
ment. Permanent General Improvements shall include
such alterations, renovations, or repairs upon or in
connection with existing structures, which correct
defects or deficiencies in the property affecting
directly the safety, habitability or energy consumption
of the property. A Permanent General Improvement must
be economically viable in terms of a determination that
after the improvement is made:
1. The structure will have remaining useful life such
that the amount of the Home Improvement Deferred
Loan may be amortized over such life in an economi-
cally prudent manner. Generally, the amount of the
deferred loan should not exceed 50 per cent of the
market value of the property as indicated on the
property tax statement.
2. For the term of the repayment agreement, the lien •
must be collectable. Thus, all existing mortgages,
contracts for deed, and other encumbrances must not
exceed the estimated market value as represented in
the County Assessor's Office.
3. The structure will be reasonably livable, safe and
habitable. Permanent General Improvements shall
not include materials, fixtures, or landscaping of
a type or quality exceeding that customarily used
in the locality for properties of the same general
type as the property improved.
B. Each improvement must be made in compliance with all
applicable health, fire prevention, building and hous-
ing codes and standards. However, no application for a
deferred loan shall be denied solely because the im-
provements will not bring such property into full
compliance. with all such codes and standards. Further,
when work is done within the house, upom completion of
the work, that entire system must meet applicable codes
and standards; however, the entire structure may still
contain other systems, on which no work was done, which
are not up to applicable codes and standards.
C. Deferred Loan funds may be used for the portion of
improvements located on the property which will bring
-17-
an individual water supply system or an individual
sewage disposal system (including septic systems) into
compliance with local, state or federal environmental
and sanitary standards provided no public utility
service is available. Payment of applicable SAC charg-
es are an eligible loan expense.
D. No Deferred Loan Funds shall be used in whole or in
part for the purpose of refinancing or paying off an
existing indebtedness, payment of public improvement
assessments, and financing-the addition of luxury items
(dishwashers, patios, fireplaces, etc.). All such
funds must be used to finance improvements begun after
application for such funds. No improvements are eli-
gible if begun before the issuance of a Proceed Order
by the HRA.
E. All contracts covering all or any portion of an im-
provement must contain an HRA approved warranty of
workmanship and materials.
F. Deferred Loan Funds must be used to finance only im-
provements upon or in connection with existing struc-
tures. Improvements may be made on attached or de-
tached garages, providing those improvements are done
in connection with similar needed improvements to the
main structure.
G. The HRA may approve special improvements only in the
described circumstances indicated below:
1. Bedroom additions may be allowed in cases of severe
overcrowding. For the purpose of this Program, a
dwelling will generally be considered "overcrowded"
if there is an average of more than one person per
room (excluding bathroom) in the dwelling, or as
otherwise approved by the HRA.
2. Bathroom additions may be allowed in cases of
inadequate indoor bathroom facilities, only if no
other space in the structure is appropriate for
such facilities.
NOTE: In cases of applicants with impaired mobility,
request for room additions will be reviewed in
compliance with Procedures for Deferred Loans
including Accessibility Improvements, as out-
. lined in Section XI.
H. Demolition of outbuildings is allowed only when such
clearance is required by the local housing or building
code. Loan funded improvements cannot be limited to
demolition only, except in circumstances determined as
exceptional by the loan administrator.
-18-
I. Reconstruction of sidewalks and driveways is allowed
only.. on private property and only if existing condi-
tions are a clear and imminent safety hazard.
J. Water drawn from a valid well must be potable (safe for
drinking) and must be free of sand, grit or other
-materials which might damage the pump or plumbing.
Water need not be free from minerals which may make it
cloudy, nor must it be free from odor. NO FUNDS WILL
BE DISBURSED. BY THE HRA TO DIG A NEW WELL. It is an
eligible improvement to connect a house to city water
and/or sewer when conditions affecting the health of
the residents are present or when required by law.
K. Exterior finishing (painting or siding) is allowed only
to the extent that there is severe deterioration of
current exterior finishing. Exterior finishing re-
quested solely for cosmetic purposes will not be ap-
proved.
L. Where property is not reasonably energy efficient,
Deferred Loan Funds must be used to the extent neces-
sary, to increase such efficiency. Energy saving
features shall be consistent with the energy standards
promulgated as part of the State Building Code but such
improvements need not bring the housing into compliance
with such energy standards.
M. Smoke detectors must be installed in all dwellings
being improved with Deferred Loan Funds, unless detec-
tors are already properly installed. At least one
detector is required on each level of the dwelling.
unit. If a smoke detector. is already properly in-
stalled, that must be reported on the Inspection Re-
port.
N. Where the house numbers are not present or are not
installed to applicable city codes and ordinances,-they
shall be installed properly.
O. The installation, replacement or repair of cook tops.,
oven rages and refrigerators is eligible provided that
it is absolutely necessary and consistent with Section
V.B.2.
P. CDBG Housing Rehabilitation Program Procedural Guides:
Lead-Based Paint
1. Applicable to all clients:
a. The use of lead-based paint in any structure
rehabilitated with CDBG funds is prohibited.
C
-19-
b. Inspection-and/or test results for all clients
will be maintained for three years.
2. Applicable to clients whose properties were con-
structed prior to 1978:
a. All such clients will receive a copy of Lead-
Based Paint Poisoning Notification." Upon
receipt of this notification., the client will
sign and date a form verifying receipt of this.
information.
3. Applicable for clients whose house was constructed
prior to 1978 and occupied by children under
age 7:
a. The administering entity must inspect for
defective paint surfaces. Defective paint
surfaces are defined as all exterior and inte-
rior surfaces of residential structure where
the paint is cracking, scaling, chipping,
peeling, or loose.
b. Defective paint conditions are to be included
. in the inspection report and treatment of the
defective areas must be included in the work
write-up. (See TREATMENT/ABATEMENT Section.)
4. Applicable to all clients whose home was construct-
ed prior to 1978 and .with a child under 7 and with
an identified Elevated Blood Level condition:
a. In order to receive any CDBG funds, the client
must make a choice between the following two
options: -
1) The lead content of chewable surfaces,
which are all chewable protruding paint
surfaces up to five feet from the floor or
ground and which are readily accessible to
children under 7 years of age (protruding
corners, windowsills, frames, doors) will
be tested using an x-ray fluorescence
analyzer (XRF) or another HUD approved
method. Test readings of l mg. cm2 are
considered positive for the presence of
lead-based paint.
If lead-based paint is present, all interi-
or chewable surfaces in any affected room
shall be treated. Where exterior chewable
surfaces are found to contain lead-based
paint, the entire exterior chewable surface
shall be treated. Treatment of any lead-
-20-
based paint will be~included in the work
write-up. Testing and treatment for lead-
based paint (see TREATMENT/ABATEMENT) is an
eligible loan expense.
Treatment of defective areas shall be
completed before the final inspection and
approval of work.
Lead-based paint and defective paint debris
shall be disposed of in accordance with
applicable federal, state, or local re-
quirements.
2) In lieu of testing for lead-based paint,
all interior surfaces and all exterior
surfaces shall be treated.
Treatment is an eligible loan expense and
will be completed before the final inspec-
tion and approval of work.
5. Treatment/Abatement of lead-based paint:
a. The work write-up shall include either a cover-
ing or a removal method approved by HUD.
Covering--adding a layer of gypsum wallboard or
fiberglass cloth barrier. Permanently attached
non-strippable wallpaper. Covering or replac-
ing trim surfaces. Removal--accomplished by
scraping, heat treatments (infrared or coil-
. type heat guns) or chemicals.
METHODS NOT ALLOWED: Machine sanding and use
of propane torches, washing and repainting
without thorough removal or covering.
VI.
Eligible Recipients
Applicants must meet all the requirements set forth in
these Procedural Guides.
A. Ownership
1. The property to be improved must be the borrower's
principal place of residence (i.e., for nine months
in any twelve month period), and the borrower must
have a qualifying interest in the property although
that interest may be aggregated with the ownership
interest of other individuals occupying the proper-
ty as their principal place of residence. A quali-
fying interest shall consist of:
-21-
a. A valid life estate. Such life estate must be
recorded .and must appear in the records of the
County; or
b. A one-third interest in the fee title. Such
interest may be subject to a mortgage; or
c. A one-third interest as a purchase in a con-
tract for deed in the property to be improved.
Such contract for deed-must be recorded and
must appear in the records of the .County.
2. All individuals having an ownership interest in the
property to be .improved must sign the Repayment
Agreement, except in the case of a Life Estate
where only one-third of the remaindermen need sign.
3. Ownership shall be based on the information record-
ed in the appropriate County Recorder's Office.
4. The borrower must be current on contract for deed
payments, mortgage payments and property .taxes on
the property to be improved. If any of these
payments are in arrears, they must be made current
before the application can be approved for funding.
If the applicant is delinquent on any of these
above-mentioned payments or taxes, the loan may
only be given if the applicant is current on a
payment schedule with the appropriate agency.
B. Household Gross Annual Income
1. Borrowers must have a household gross annual income
at or below 50 percent of the Area Median Income
for the household size (also known as Section 8
Very Low Income). Borrowers applying for an
accessibility loan must have a household gross
annual income at or below 80 percent for the
household size. Hennepin County will notify the
administering entities of applicable. income limits
by household size; it will, however, be the re-
sponsibility of the administering entity to ensure
that the changes in income limits are implemented
properly.
It should be noted that there are no adjustments to
income under the Section 8 Very Low Income Limits.
The $1,000.00 per resident deduction is no longer
applicable.
Gross annual income is defined as the gross annual
income, from all sources before taxes or withhold-
ing, of all individuals living in the housing unit
for at least nine~(9) months of any twelve-month
period and who do not pay rent.
-22-
The administering entity should be aware that non-
recurring types of income should be included as
assets rather than as income. Items for inclusion
under this category may include a single gift of
cash from a party or parties, cash sales of proper-
ty, receipt of one-time survivor benefits, etc. A
one-time sale of stock does not count as income,
but rather the proceeds are counted as assets.
2. Gross annual income includes:
a. Any public assistance,. including, but not
limited to: welfare, AFDC, SSI, and unemploy-
ment compensation.
b. Salaries (including commissions, bonuses,
overtime pay and tips).
c. Alimony and/or child support..
d. Interest and dividends.
e. Pensions and annuities, include PERA and social
security.
f. .Rental income, farm rental income.
g. Estate or trust income.
h. Business profit--.for self-employed individuals,
including farmers and child care/baby-sitting.
i. Gains from the sale of property.
j. Payment received from properties being sold on
contracts for deed.
k. Partnership.
1. Personal and/or business loans.
m. Miscellaneous income (including recurring gift
.from a party or parties).
3. Gross annual income shall be based upon annualized
weekly or monthly income as of date of verifica-
tion.
C~
4. In cases where the gross income of the applicant's
household is extremely low, the applicant must
produce written verification of the household's
monthly expenditures, clearly itemizing the amount
of money and its source, on all of, but not neces-
sarily only, the following applicable items:
-23-
mortgage, contract for deed, insurance, loans,
income and property taxes, ,transportation expense,
charge accounts, health costs, food, utilities,
clothing and entertainment. These expenses shall
determine the household maintenance income.
5. Any income determination which results in a net
LOSS of income must be considered as $0 income.
That is, an income loss from one source may not be
subtracted from a separate source of income for the
purpose of determining total household gross annual
income.
6. Any educational grants, including VA benefits,
which are paid directly to the individual must be
included as income. Grants or scholarships which
are paid directly to an educational institution are
not included as income, nor are educational loans.
7. Projected bonus and/or overtime will be determined
by the loan administrator through contacting an
employer. The amount may be based prior to years
figures or average amounts awarded to other employ-
ees with the same status. The most recent IRS tax
return may also be used for these purposes.
8. Self-employed persons must submit signed copies of
IRS tax returns, as sent, for the previous two
years. Applications processed before April 15 of
any given year may use the IRS tax returns from the
second and third preceding years if that for the
first preceding year is not available. Applica-
tions processed after April 15 of any given year
must use the IRS tax returns from the first and
second preceding years. The administering entity
will determine gross annual income by averaging the
income from the two submitted returns. Normal out-
of-pocket business expenses such as office rents,
telephone, etc., are generally deductible items.
Property or equipment depreciation and entertain-
ment are not deductible.
9. Individuals who have been self-employed for less
than two years must submit a properly prepared cash
basis Profit and Loss Statement detailing the
business income and expenditure. Ideally, the
Statement should be prepared and signed by a CPA,
although the applicant may prepare it him or her-
self provided that it is accompanied by a decla-
ration that all information contained in the State-
ment is accurate and complete and that the appli-
cant is aware that any errors or evasions may
result in prosecution. If the individual can
produce a signed IRS return for one complete year
-24-
of self-employment and a Profit and Loss Statement
for the subsequent period, that will be acceptable.
10. Income from rental properties, including rents from
the property to be improved, shall be included in
gross income. Expenses allowable for deduction for
rental purposes include a proportional share of
mortgage principal and interest payment, utilities,
taxes, insurance, and. maintenance. In no event
shall such deductions exceed gross rental income.
11. The Calculation of Gross Annual Income may not be
based on a temporary condition such as unemployment
or temporary workers' compensation benefits. If
unemployment recurs on a regular basis, Gross
Annual Income shall include the sum of wages and
unemployment compensation expected to be received
by the household in the coming year. If workers'
compensation is permanent income, it must be veri-
fied by the insurance company.
Gross Annual Income may not be based on temporary
nonrecurring employment of known duration, such as
layoffs, maternity leave, sabbatical leave, etc.
Rather, income shall be calculated based on the
normal Annual Income of the temporarily unemployed
person.
Application of those who are unemployed for an
unknown period of time shall not be considered
until the unemployed household member has exhausted
all eligibility for unemployment compensation and
the employer indicates a callback date is unknown.
C. Deductions From Gross Income
The following items must be acknowledged. as income but
can be discounted as qualifying income.
1.; Personal loans which must be repaid at a later date
(a copy of the loan agreement/payment schedule must
be included in the file).
2. Alimony or child support payments to individuals
not residing permanently in the property to be
improved (a copy of the pertinent section of the
:divorce decree must be included in the file).
3. The income of any resident under the age of six-
teen.
n
U
-25-
s
D. Asset Determination
1. "Gross assets" for purposes of
itation Deferred .Loan program.
the current market value of an
existing indebtedness on that
of the Housing Rehabilitation
Program, assets include:
a. Cash on hand.
b. Cash in checking accounts.
the Housing Rehabil-
shall be defined as
item listed minus
item. For purposes
Deferred Loan
c. Cash in savings accounts, including accounts
held in trust.
d. The cash value of life insurance policies.
e. The cash value. of life securities, bonds,
mutual funds, IRAs, etc.
f. The current market value of all interest in
real estate, not including the structure to be
improved and a parcel of real property of not
more than two (2) acres on which the structure
is located. Included in this determination is
any land in which any resident of the house-
holds holds title or is selling on Contract for
Deed. The value of the Contract for Deed
property shall be defined as 100 per cent of
the outstanding balance on the contract at a
time twelve months following the date of income
and other asset verifications. The dollar
amount, the difference between the outstanding
balance at the time of verification and the
outstanding balance twelve months later shall
be included as household income.
g. All other property, exclusive of household
furnishings, clothing, and one vehicle. This
section includes but is not limited to:
business equipment, farm equipment, boats,
snowmobiles, motorcycles, farm stock and addi-
tional vehicles.
h. If the applicant owns a business, in full or in
part, and that business is incorporated, then
the business equipment is not a personal asset.
If the business is not incorporated, the busi-
ness equipment is then considered a personal
asset.
r~
L
The value of the ownership of the business by
the applicant is a personal asset. If the
-26-
applicant owns less than 100 percent of the
- business, written notarized proof of the per-
cent of ownership must be provided by the
applicant to the Deferred Loan Administrator.
2. Borrower's Asset Limit: The gross assets of the
borrower excluding the residential property to be
improved, shall not exceed 525,000 except in those
instances where up to 50$ of the borrowers annual
gross income is derived from interest earning
assets.. In such. cases the asset limit may be
raised to 535,000.
VII. Deferred Loan Package
In order to assist in the monitoring of individual loans,
file folders shall be divided into two parts. The right-
hand side of the file folder shall contain,. in chronological
order, all correspondence, memos to the file, any photo-
graphs, all unused bids, a copy of the filed Repayment
Agreement (item T), 'and any .other relevant documentation
including, if necessary, the Complaint Record (item U). The
left-hand side of the file folder shall contain (either
front to back or back to front) the documents (identified
as items A through S) in the following order:
A. Homeowners Application for. Loan
B. Individual Data Confidentiality
C. Lead Based Paint Poisoning
D. Income Verification
E. Asset Verification
F. Mortgage Status Verification
G. Zoning Status Verification
H. Title Verification
I. Property Inspection Report
J. Scope of Improvements
K. Rehabilitation Work Summary/Improvement Certificate
L. Contractor Bids
M. Work Contract
N. Amendment Request Certificate
O. Contractor Bills
P. Completion Certificate
Q. Sworn Construction Statement.
R. Lien Waivers
S. Data On Individual Loans
The following is a brief description of each required document.
A. Homeowner Application for Deferred Loan This applica-
tion shall be completed in full and signed and dated by
the Applicant.
-27-
The Homeowner Application for Deferred Loan provides:
1. Household Information
2. Income Information
3. Assets Determination
4. Property Information
B. Property Inspection Report
1. A copy of the initial inspection report must be
included in the Deferred Loan Package. Report
forms must include the following items:
a. General condition of the structure.
b. Structural soundness.
c. Plumbing systems including: water supply,
waste disposal, fixtures and piping system.
d. Electrical system.
e. Heating system.
f. Roof.
g. Energy efficiency including: insulation,
infiltration, windows, doors and ventilation.
h. General exterior conditions.
i. General interior conditions.
An explanation should be provided for any deficien-
cy which appears on the inspection report but does
not appear on the Rehabilitation Work Summary for
correction.
The inspection report must be signed and dated by
the inspector performing the inspection.
2. Major infractions of the city building codes con-
stituting a health and/or safety hazard or serious-
ly diminishing the habitability of the residence
will be noted and explained to the applicant. The
applicant will be required, as a condition of
funding, to contact the City Building Inspector to
establish that repair of these major infractions is
• within the scope of available monies. A copy of
the City Building. Inspector's written report must
be included in the file. If it is determined that
-28-
the cost of necessary repairs exceeds the available
monies, then the loan application will be with-
drawn.
C. Scope of Improvements and Work Proposal
This listing of all eligible improvements should be
kept on file in case the borrower requires additional
copies. At least three copies will be sent to the
borrower along with a mandatory cover letter encourag-
ing the consideration of minority or women-owned con-
tractors as potential bidders and including information
on how to access such contractors. A copy of this
letter must also be included in the file.
The.Scope should allow contractors the opportunity to
submit alternates or amendments to work items; however,
funding of any such alternate or amendment is dependent
upon the existence of a second bid for the same alter-
nate or amendment. The Scope must also contain an
explanation of the bidding procedures, contract proce-
dures, contract amendment procedures, completion proce-
dures and payment procedures.
D. Contractor Bids
The borrower shall be encouraged to obtain three bids
for each authorized improvement. A minimum of two bids
will be accepted. Bids must be obtained from each
contractor performing work. on the residence. All bids
must conform to the minimum standards of the technical
specifications. (The unused bids should be kept on the
right hand side of the file folder.)
E. .Work Contract
Work shall be completed within the time frame specified
on the Work Contract. The Deferred Loan Administrator
may grant an extension under unusual circumstances.
This extension must be in writing with a copy given to
the homeowner and contractor.
F. Income Verification
All sources of income listed on the Homeowner Applica-
tion for Deferred Loan must. be verified by the Deferred
Loan Administrator. EVIDENCE OF SUCH VERIFICATION MUST
BE INCLUDED IN THE DEFERRED LOAN PACKAGE. The follow-
ing is a list of acceptable forms of income verifica-
tion evidence:
1. Written verification from employers or other income
providers. •
-29-
2. Copies of four recent checks or check stubs, which
must includre the year to date earnings.
3. IRS forms only in the case of self-employed indi-
viduals (see Section VI).
4. Statements of deposit from bank.
5. Copies of deposit slips indicating the deposits of
a particular check.
6. Income derived from rent must be verified by the
renter in writing or by examining copies of checks
or rent receipts.
The date of document used in verifying income may not
be more than 90 days previous to the date of approval.
If it is more than 90 days old, income must be
reverified before a loan application can be approved.
G. Asset Verification
All assets listed on the Homeowner Application for
Deferred Loan must be verified by the Deferred Loan
Administrator. EVIDENCE OF SUCH VERIFICATION MUST BE
INCLUDED IN THE DEFERRED LOAN PACKAGE. The following
is the only acceptable form of asset verification
evidence:
1. Written verification from banks, insurance compa-
nies or other asset holders.
2. Copies of bank statements, insurance policies,
premium notices and like.
The date of document used in verifying assets must note
be more than 90 days previous to the date of approval.
If it is more than 90 days old, assets must be
reverified before a loan application can be approved.
H. Individual Data Confidentiality.
The applicant's rights as a subject of data are fully
described in this form. This form is given to the
applicant, and not retained for the grant package. The
file should, however, include the receipt portion
signed and dated by the applicant.
I. Title Verification Form
1. The Deferred Loan Administrator must obtain the
following information from the County Record-
. er/Registrar of Title regarding each property:
-30-
a. The full name of all owners of record, includ-
ing first name, last name, middle name or
initial and additional names which may appear
in the records, such as maiden names, exactly
as they appear on the title.
b. A determination of the system under which .the
property is recorded--either Torrens or Ab-
stract.
2. Upon obtaining this information, the Deferred Loan
Administrator must determine that the applicant,
individually or in the aggregate, have a qualifying
interest in the property consisting of at least:
a. A valid life estate. Such life estate must be
recorded and must appear in the records of the
County; or
b. A 1/3 interest in the fee title. Such interest
may be subject to a mortgage; or
c. A 1/3 interest as a purchaser in a contract for
deed with respect to the structure being im-
proved.
3. In addition, the applicants must occupy the proper-
ty as their principal place of residence. To
consider a property as one's principal place of.
residence, an individual must:
a. Reside in the property at the time of applica-
tion (except where extraordinary circumstances
have made the property temporarily uninhabit-
able); and
b. Occupy the property for at least nine (9)
months of the year.
J.
4. For the purpose of complying with ownership re-
quirements, the borrower may aggregate his/her
interest in such property with the ownership inter-
est of other individuals occupying the property as
their principal place of residence.
Mortgaae_Status Verification
The Deferred Loan Administrator must ensure that the
mortgage(s) and/or contract(s) for deed on the property
to be improved are current. If payments are in ar-
rears, the applicant must be given four weeks to make
them current.
C~
-31-
The date of the document used in verifying
es and/or contract for deed may not be more
days previous to the date of approval. If
than 90 days old, the mortgage status must
reverified before a loan application can be
K. R~ayment _Agreement
the mortgag-
than 90
it is more
be
approved.
The Repayment Agreement must be included in the De-
ferred Loan Package and should be located on the right-
hand side of the file.
1. As specified in the provisions of the Repayment
Agreement, the borrower shall be required to notify
the HRA immediately upon the sale, conveyance,
assignment, lease, transfer, or cessation of resi-
dency of the property.
a. Payment is required within 30 days of the date
of transfer.
b. Payment not made in 30 days is penalized by
charging an interest rate on the loan principal
(commencing on the 30th day after date of
transfer). The interest rate shall be the one
~_ percent over the prime rate, as published in
M the Wall Street Journal, on the first working
day after 30 days since the sale or transfer.
2. Each Deferred Loan shall be subject to an Agreement
for Repayment which provides-that in the event that
the property upon which the improvement is located
is sold, conveyed, assigned, leased or transferred,
or in the event that such property ceased to be the
borrower's principal place of residence. Within 30
years of the date upon which the Deferred Loan
Package was approved, then the borrower shall repay
(and the HRA shall have a lien to the extent per-
mitted by law on the property as security for such
repayment), the full amount of the Deferred Loan as
detailed in the filed Deferred Loan Agreement.
After the end of the 29th year of receipt of loan,
the lien is satisfied and no repayment is required.
3. The HRA must exercise extreme care in the execution
of the Repayment Agreement document to ensure that
the lien is valid. Any inaccuracy or omission may
have a negative effect on the validity of the lien.
4. If the economic status of an heir to an encumbered
property is found to be sufficiently low by the
lender (and the heir can demonstrate having taken
permanent residence at the improved property), the
heir could assume the existing property lien that
-32-
resulted from the filing of the original Deferred
Loan Agreement. In the judgement of the HRA, the
conditions .that apply which would constitute an
economic status of an heir to allow such an assump-
tion, are:
a. The maximum unadjusted income of the heir(s),
as determined according to those procedures
outlined in these guidelines, shall not exceed
those incomes (per family size) as determined
by a percentage of the Standard Metropolitan
Statistical Area (SMSA), Median Family (family
of four Income as follows:
Family Size $ of SMSA Median Family Income
1 43$
2 46
3 49
4 52
5 55
6 58
7 62
8 65
An example of how this works follows:
•
Percentage Heirs Present
of $31,600 Qualifying Grant
Family Median Family Income Recipients
Size
---- Income (1984)
------------- (1984)
------ Income (1984).
-------------
1 43$ $13,588 $13,500
2 46 14,536 14,500
3 49 15,484 15.,500
4 52 16,432 16,500
5 55 17,380 17,500
6 58 18,328 18,500
7 62 19,592 19,500
8 65 20,540 20,500
The percentage figures were determined by
taking normal adjustments for family size to
current maximum adjusted income limits for the
program, $12,500, and dividing that into the
current. median family income figures for the
metropolitan area, $31,700. Use of these
percentages in combination with future median
income figures should result in an income level
comparative to that used as an eligible income
today.
•
-33-
b. If the heir is found to be income eligible
according to the above conditions, an amendment
will be executed to the Deferred Loan Agreement
(as agreed upon by the recipient heir) fixing
the date of sale of the property or fixing the
date on which the loan shall be due and payable
in the absence of a sale. Such dates shall not.
exceed the original 30 year loan term specified
in the original agreement. The heir's respon-
sibility for loan satisfaction ends after the
.29th year of the original term and no repayment
is required.
5. The HRA will not accept or subrogate to a lien
position, either at the time of repayment filing or
during the life of the lien of a property that has
previous mortgages, pledges or encumbrances,
exceeding the Estimated Market Value as Determined
by the Hennepin County Assessors Office. Such
security of lien position shall be verified prior
to approval of the Deferred Loan application for
processing.
Prior to the submission of the Deferred Loan Pack-
. age for funding approval, the HRA should ensure the
completion of the following sections of the Repay-
• ment Agreement only:
a. Property Description
The property description must be clear, legi-
ble, accurate and complete. Care must be taken
to ensure that the description is exactly as it
appears in the property records. If the appli-
cant owns property other than that on which the
structure to be improved is located, only the
description of the property on which the struc-
ture is located should be included.
b. Signatures
The record names (the names exactly as they
appear in the property records) must be used by
all whose signatures are required.
The following is a brief discussion of the
signatures required under particular property
ownership situations:
(1) Any JOINT TENANCY -- signatures ,of all
joint tenants are required.
(2) Property held by ONE SPOUSE -- signatures
of BOTH spouses are required.
-34-
(3) Property held in LIFE ESTATE -- signatures
of the applicant (life estate holder) and ~.
signature of sufficient remaindermen to
comprise at least 1/3 interest. (Example:
if there are 12 remaindermen in title, the
signatures of four of them are required to
comprise 1/3 interest, assuming equal
interest for all).
c.
(4) Property being purchased on CONTRACT FOR
DEED -- signatures of the applicant and
all individuals who are aggregating their
interest to meet the ownership require-
ment; and the fee title holder (and spouse
or others, as applicable) of the Property;
and the signatures of any intervening
vendees of the Contract for Deed.
Notarization of Signature
(1) All required signatures must be notarized,
including the "mark of a signature who is
unable to write (such a mark must be
witnessed by at least two persons other
.than the notary). Additional acknowledg-
ments may be added to the Repayment Agree-
ment form to accommodate any necessary
notarizations.
(2) All dates (except those in the notary's
acknowledgments) in the Repayment Agree-
ment shall be left blank at the time that.
the Deferred Loan Package is submitted.
The HRA has three options with regard to ob-
taining the signature of the homeowner on the
Repayment Agreement.
It is recommended that the Deferred Loan amount
in the Repayment Agreement be left blank at the
time the Deferred Loan Package is approved.
This allows the HRA flexibility with regard to
Amendment Requests by not requiring a new
agreement to be signed should the Deferred Loan
amount change upon completion of the work.
The HRA may accept the document with the maxi-
mum Deferred Loan amount in place, recognizing
that upon completion of the Deferred Loan
should the total of the work not equal the
maximum Deferred Loan amount exactly, a new
document must be executed.
-35-
If the homeowner refuses to sign a blank repay-
ment agreement and also refuses to sign a
repayment Agreement indicating the maximum.
Deferred Loan amount, the Deferred Loan Admin-
istrator shall require that the borrower sign
the Repayment Agreement which has the total of
the selected bids inserted as the Deferred Loan
amount. The Deferred Loan Administrator shall,
in writing inform the borrower and all selected
contractors that no amendments to the Deferred
Loan amount-.will be approved without first
obtaining a signed repayment agreement indicat-
ing the altered Deferred Loan amount.
The Repayment Agreement shall be filed with the
proper recording office, i.e., the Registrar of
Deeds or Registrar of Titles for Hennepin
County, in such a manner as to create a valid
lien against the property, on all properties
improved with Deferred Loan funds, provided
that the creation of such a lien is permitted
by law. It is the responsibility of the HRA to
record this agreement with the proper recording
office after the improvements are completed.
If .any Deferred Loan funds are used for purpos-
es other than an eligible improvement upon
eligible property or if the Borrower's applica-
tion is found to contain a material misstate-
ment of fact, the Borrower shall be liable for
repayment of all or part of the originally
approved Deferred Loan funds in accordance with
the remedies contained in the Improvements
Certificate. In addition, any fraudulent use
of funds may subject the recipient to fines
and/or imprisonment under the Minnesota Crimi-
nal Code.
L. Emergency Deferred Loan Approval
T.he Deferred Loan Administrator will notify the
homeowner that an emergency approval has been given to
proceed with the stated work to correct the emergency
situation at the house, indicating the approved con-
tractor and costs.
M. Improvements Certificate
The Deferred Loan administrator in conjunction with the
borrower, determines the work to be done with the funds
available. If the borrower disagrees with the adminis-
tering entity's choice of improvements, items may be
waived by the borrower, in writing at the discretion of
the administering entity.
-36-
1. This form lists the work approved to be done by
item and by contractor performing, and a breakdown
of costs by item and contractor.
2. `The total of the cost for work to be performed
shall be listed where indicated. The maximum
deferred loan amount shall not exceed the lesser
of
-15,.000.00; or
-The actual cost of the work performed.
EXCEPT in the case of accessibility improvements
for handicapped individuals, where the maximum
deferred loan amount may be $20,000.00 for improve-
ments which increase the accessibility. of the
property to handicapped individuals.
An applicant's willingness or ability to apply for
a loan from any source, regardless of terms and
conditions, to be used in conjunction with or to
supplement Deferred Loan Funds shall not under any
circumstances be a condition for a deferred loan.
The amount of funds received from other sources
shall not reduce the permissible amount of the
Deferred Loan.
N. Data on Individual Deferred Loans
Regardless of the manner in which documents A through R
are placed in the file, when the loan is closed out,
this form should be at the front of the file on the
left hand side. The Deferred Loan Administrator is
required to complete this form for each Deferred Loan
Package which provides information pertaining to envi-
ronmental assessment, historical preservation, Section
8 Quality Housing Standards, and census tract data, and
household size and annual income.
O. Proceed_To.Work Order
The Proceed Order is part of the Work Contract and
gives the authorization for the work to begin.
P. Amendment Request Certificate
The form outlines all changes in the approved Deferred
Loan amount, either additions or subtractions, by each
contractor. It must be signed by the contractor and
the borrower and approved by the Deferred Loan Adminis-
trator. A revised bid must be attached. Every effort
must be made to keep Amendment Requests to a minimum.
The use of excessive Amendment Requests tends to
-37-
. indicate failures in either the Property Inspection
Report and/or the Scope of Improvements and this in the.
administration of the program itself. Since Housing
Rehabilitation is not an exact science, however, it is
appropriate to use amendment requests as a means of
dealing with unforeseeable problems.
Q. Contractor Bills
Bills must be obtained from each contractor performing..
work on the residence (in other words, a general con-
tractor can submit bills on behalf of a subcontractor).
Bills must be provided for all payments, interim or
final.
R. Completion Certificate
This form should be signed by the borrower and the
contractor when the Deferred Loan work undertaken by
the contractor is completed. If the work .requires a
building permit, or if code work is involved, .then the
relevant Inspector should sign in the space provided.
If the approval of more than one Inspector is required,
then copies of the Inspection Notice(s) should be
attached. The Completion Certificate must always be
accompanied by a bill for the work done.
For procedures in the event of a homeowner refusing to
sign a Completion Certificate, see Section IX.
S. Complaint Record (Optional)
This form should be used to document complaints, by
homeowners and/or contractors, which are not resolvable
by the Deferred Loan Administrator to the satisfaction
of all three parties, or when the resolution will
require a lengthy process.
This form should also be used to document any com-
plaints brought to the attention of the Deferred Loan
Administrator, pertaining to the administra-
tion/implementation of the program and the response of
the Administrator to the Complaint.
T. Acknowledgment of Data Confidentiality
This form must be signed by all contractors at time of
bidding to ensure that contractors are aware of the
confidentiality of the applicant, and treat all such
information as private.
• U. Entry Permit
-38-
V.
W.
X.
Y.
Z.
The form must be signed by
prior to inspection of the
inspector. The form, when
permits inspection of the
pose of determining eligib
by Deferred Loan funds.
Zoning Verification
the Deferred Loan Applicant •
property by a city/HRA
signed by the applicant,
property for the sole pur-
Le improvements to be funded
This form, signed by authorized zoning representatives
of the citg, verifies that the property to receive the
Deferred Loan is in compliance with the city's zoning
ordinance.
Sworn Construction Statement
Any firm or individual contracted to perform work on
the residence must submit a Sworn Construction State-
ment along with the bill before any payment, interim or
partial, can be released. The Sworn Construction
Statement must list in all subcontractors and/or suppl-
ier's contributing to the work for which the bill is
being submitted and must be signed by the contractor
holding the Work Contract. The contractor's signature
must be notarized. The purpose of this form is to
ensure that the contractor holding the Work Contract is
liable for any failure to pay subcontractor's/sup-
plier's involved in the project.
Lien Waivers
A copy of all lien waivers referred to in the Sworn
Construction Statement, plus the lien waiver from the
contractor holding the Work Contract, must be included
in the file. The original lien waivers, which must be
secured before any payment is released, are to be
passed onto the borrower following closeout of the
file.
Lead Based Paint .Poisoning
The file must contain a signed and dated receipt from
the applicant, acknowledging that the HUD-approved
information on the dangers of Lead-Based Paint Poison-
ing has been received.
Adverse Claim
This document must be signed by the Executive Director
of the HRA. It allows Repayment Agreements to be filed
against Torrens property without the Owner's Duplicate
Certificate of Title. This document is to be used only
in instances where a homeowner either refuses or is
unable to supply the Owner's Duplicate Certificate of
Title to the Deferred Loan Administrator.
•
-39-
AA. Amendment to Deferred Loan Agreement
This document applies to properties being purchased on
a contract for deed. If a vendor should retake posses-
sion of the property due to default, the document
allows the vendor to repay the loan in monthly install-
ments rather than in a lump sum.
VIII. Acceptance Procedures
A. Review of Deferred Loan Packages
1. The HRA will process applications using the first
come, first serve selection criteria established by
the HRA as required in Section III-C of these
Procedural Guides.
The HRA objectives are to encourage necessary
improvements whereby the structure will. be reason-
ably livable, safe, habitable and energy efficient.
2. Applications will be accepted as follows:
a. Applicants must submit their request for a
Rehabilitation Deferred Loan on a Richfield HRA
Deferred Loan application form. It should be
submitted to the HRA office.
b. The HRA will review the individual packages
using the qualifications as .outlined in Section
VI. Deferred Loan Packages shall be processed
and funded provided they contain all of the
documents listed in Section VII of these Proce-.
dural Guides.
The HRA may return unacceptable packages for
correction and resubmission, or may hold them
until the necessary information is provided
after notification of same to homeowner. If
the necessary information is not provided
within a reasonable amount of time, the appli-
cation may be withdrawn and the file closed
out.
c. Any applicant who is denied funding may reapply
after 90 days and be reconsidered on the basis
of new information.
d. The decision of the HRA staff will be final;
however, appeals may be made in those cases
where applicants believe they were not treated
equitably. Appeals shall be in written form
• and submitted. to the Deferred Loan Administra-
tor in the city outlining the applicant's
-40-
concerns. The appeal shall be
following manner:
(1) A committee of HRA staff
appeal. If a solution by
reached, the case will be
Executive Director of the
evaluated in the
•
sill evaluate the
the staff is not
referred to the
HRA for review.'
(2) A reply in .written form to the appeal will
be sent to the applicant within 15 days.
(3) If the applicant wishes to appeal further,
the appeal will be forwarded to the HRA
Commissioners for a final determination at
their next scheduled meeting.
(4) If, after this review process disagreement
is still evident, the HRA should contact
Urban Hennepin County to mediate the
situation so as to eliminate potential
confrontations between the HRA and the
applicant.
B. Notification of Ineligibility
1. If the applicant or the applicants dwelling is
determined to be ineligible, the HRA must notify the applicant of
that denial, :in writing, within five days of the denial indicat-
ing the reason(s) for denial and outlining the appeal process as
stated above.
C. Loan Approval
Upon approval of a Deferred Loan Package, the HRA must
notify the applicant and selected contractor of that
approval. A Proceed Order for each approved loan
indicating .the name of the recipient and the approved
dollar amount of the Deferred Loan, will be sent to
both the applicant and homeowner.
a. Receipt of such notification will signify authori-
zation for the immediate commencement of .work on
the properties represented by the specified De-
ferred Loans.
b. The Repayment Agreement for each approved Deferred
Loan will be temporarily held by the Deferred Loan
Administrator. The repayment Agreement will have
been executed by the HRA and dated according to the
date on which the Deferred Loan Package was ap-
proved.
IX. Completion and Disbursement Procedures •
-41-
A. Completion Procedures
• No .Deferred Loan will be considered complete until the
following steps have been accomplished:
1. Inspection of the Property - All improvement work,
as specified in the Improvements Certificate must
be inspected for completeness, conformity to speci-
fication and quality of workmanship. The HRA must
require completion or correction of any item .found
lacking. Failure of a contractor to comply with
such a request for completion or correction of work
may be considered grounds for the HRA to withhold
all or part of the payment due to the contractor.
2. Completion Certificate - Following the final in-
spection and successful completion of work, the
Completion Certificate must be signed by the Bor-
rower, all of the contractors who performed work on
the property, and by the Inspector of the property,
and the Deferred Loan Administrator. In the event
that the homeowner will not sign the Completion
Certificate, payment can be issued to the contrac-
tor provided that the contractor, the Inspector,
and the Deferred Loan administrator all sign the
Completion Certificate indicated that the work was
done properly and a letter written by the Deferred
Loan Administrator is attached outlining in detail
the situation resulting in the recipient refusing
to sign the Completion Certificate and confirming
proper completion of work.
3. Recording of the Repayment Agreement - The Deferred
Loan Administrator must insert the final amount of
the Deferred Loan in the Repayment Agreement and
check the document for completeness and accuracy.
The Repayment agreement must then be recorded by the
Deferred Loan Administrator with the Registrar of
Deeds or the Registrar of Titles of Hennepin County.
NOTE: For property registered according to the
Torrens System, the Repayment Agreement must be
accompanied by Owner's Duplicate Certificate of
Title at the time of recording. Also, documents
recorded on Torrens property are not returned to the
person requesting the recording. Therefore, the
deferred Loan Administrator must either retain a
copy of the agreement prior to recording and obtain
the recording information (Document number) from the
Recorder, or must obtain a Certified Copy of the
document after recording.
-42-
If a borrower is unable or unwilling to provide the •
Owner's Duplicate of Title an Adverse Claim form may
be used to file the document. See Section VII.
Following recording, the Deferred Loan Administrator
shall provide a copy of the recorded Repayment
Agreement and lien waivers to the Recipient.
B. Disbursement Procedures
1. No disbursement of funds shall be made until the
HRA is in receipt of:
a. A completion certificate signed. by the contrac-
tor, homeowner and Inspector, except as in A. 2
above; and
b. A bill from the contractor for the amount of
the work performed; and
c. A properly completed Sworn Construction State-
ment; and
d. Lien waivers provided by the contractor/ sub-
contractor(s)/Supplier(s) for the amount of the
work performed.
2. Progress Payments to Contractors
Partial payment may be made to contractors for a
portion of work completed under the contract. A
hold back equal to ten percent (10$) of the value
of the work completed will be required for each
progress payment to a contractor. Items a-d above
must be obtained before release of a progress
payment. The 10$ hold back amount will be included
in the final payment to the contractor.
3. The HRA shall obtain a bill from each contractor.
-:Invoices must be received by the 1st. Friday of
every month to insure payment within that month.
The bill may then be paid to the contractor using
funds from the HRA special revenue fund. To be
reimbursed by Hennepin County, the HRA must forward
to the County the following:
a. Signed Completion Certificates and all Amend-
ment Requests.
b. Data on Individual Deferred Loans. (A new form
must be sent with additional invoices if the
loan amount changes).
c. Contractor's Invoice (bill). •
-43-
• d. HRA's proof of payment to contractor (HRA
check).
e. Summary of Project Disbursement Sheet.
f. Signed Warrant Request.
Submit only copies of items a. through d.' The
originals must remain in the applicants files with
the administrating entity. If more than one war-
rant request is processed for a borrower, a New
Data or Individual Loan form must be submitted to
reflect the total loan amount.
3. Administration costs for housing rehabilitation
should be billed directly to the project not gener-
al administration.
4. Housing rehabilitation funds must be drawn down
from the earliest program year with remaining funds
regardless of which Deferred Loan expenses are
being reimbursed.
5. All program income generated from housing rehabili-
. tation (i.e., repayments) must be returned to
Hennepin County.
• 6. Submit only copies of items a. through d. The
originals must remain in the applicant's file.
7. Hennepin County will then issue a check to the HRA
to be deposited into the HRA special revenue fund..
X. Post Construction Issues
A. Construction Problems Arising After Completion
In the event the HRA is notified of a problem arising after
completion of the loan, additional loan funds can be made
available to the borrower if:
-applicable warranties have expired; or
-the contractor is no longer in business or
refuses to make corrections; and
-if failure to make repairs will cause property
damage or create health and safety concerns; and
-the borrower is still income qualified.
Alternately, on a case by case basis for income qualified
households, adjustments may be made to the lien amount based
on the cost of correcting the deficiency.
-44-
B. Bankruptcy Cases and Foreclosures
The HRA's legal counsel will be notified immediately upon •
receipt of any bankruptcy or foreclosure notice. Legal
counsel will recommend appropriate action on a case by case
basis.
XI.
Emergency Deferred Loan Guidelines
A. The HRA may authorize an.Emergency Deferred Loan for
providing rehabilitation funds to eligible applicants
under emergency situations. Specific emergency situa-
tions are defined below.
B. The Emergency Deferred Loan application process, within
a very short response time, informally assembles all
required information, verifies the information, re-
ceives required signature on forms, and authorizes loan
financing. Verbal verifications and bidding often
occur to prevent delay. The Emergency Deferred Loan
package will be completed in a permanent, written form
as soon as possible following loan approval and initia-
tion of work.
C. The following conditions shall apply to an Emergency
Deferred Loan: •
1. The applicant, property, and improvements must be
acceptable under the eligibility guidelines as
stated in Section IV, V, and VI.
2. The following forms must be completed and included
in the Emergency Deferred Loan Package when submit-
ted for approval:
a. Homeowner Application for Deferred Loan
b. Property Inspection Report (limited)
c. Scope of Improvements (limited)
d. Contractor Bids (phone quotes acceptable)
e. Asset Verification (phone verification accept-
able)
f. Individual Data Confidentiality
g. Title Verification
h. Mortgage Status Verification (phone verifica-
tion acceptable)
-45-
• i. Repayment Agreement
j. Emergency Deferred Loan Approval
k. Improvement Certificate
1. Data on Individual Grants and Loans
m. Work Contract
n. Acknowledgment of Data Confidentiality
o. Entry Permit
p. Zoning Verification
3. It can be verified in a manner acceptable to the
HRA that an emergency condition exists such as:
a. The dwelling unit contains defects or deficien-
cies which, if left uncorrected, would render
the unit immediately uninhabitable; or that
b. Such defects are the direct result of occur-
rences which include, but are not limited to,
natural causes such as floods, tornados, fire,
. blizzards, and storm; or mechanical failures
such as burst pipes, furnace breakdowns, or
clogged sewer lines.
4. The applicant agrees that other improvements found
to be necessary to the unit (i.e., health and
safety related conditions and energy improvements)
must be completed on a non-emergency basis by means
of a deferred loan or other financing. The HRA
will make available funds for such improvements to
the applicant on a first-come, first serve basis.
Additional improvements can be undertaken at the
same time as the emergency improvements if suffi-
cient funds exist to assist all applicants ahead of
the emergency application.
5. Smoke detectors must be installed as required by
the Procedural Guides.
D. In administering an Emergency Deferred Loan, the HRA is
aware that an applicant that initially agrees to per-
form additional repairs may, at sometime, not pursue
the additional repairs. However, the emergency nature
of the repairs to protect the health and safety of
eligible residents warrants "the risk" as it relates to
future performance. Every effort will be taken to
ensure that Emergency Deferred Loan recipients follow
through with appropriate repairs on a first-come,
first-serve basis.
-46-
For the purposes of program monitoring by HUD and
Hennepin County, it should be understood that: •
-"Eligible Properties" and "Eligible Recipient"
requirements contained within these Procedural
Guides will be followed in evaluating an applicant
for an Emergency Deferred Loan.
-The property to be improved will be inspected to
ensure .that an Emergency Deferred Loan expenditure
is a "Permanent General Improvement" that is eco-
nomically viable in that the structure will have a
remaining useful life, a lien to the maximum amount
available would be collectable, and the structure
is reasonably livable, safe, and habitable. It is
.understood that additional repairs of a non-
emergency nature may be needed and that those
repairs may not have been determined in final form.
XII. Procedure for Deferred Loans Including Accessibility Im-
provements
A. Accessibility Improvements
1. Accessibility Improvements may include:
a. Structure Improvements:
Construction, installation or modification of
ramps, handrails, kickplates and door widths;
repair or replacement of doors; relocation of
doorways; installation of lever-action hard-
ware; construction or expansion of rooms.
b. Exterior Improvements
Construction of exterior ramps, railing,
walkways, landings and porch extensions; site
grading and other site improvements.
c. Bathroom Improvements
Installation of elevated water closet, grab
bars, shower stalls, tub seats, hand-held
showers, accessible sinks, electrical outlets,
medicine cabinets and other accessories; modi-
fication or expansion of bathroom area to allow
a five-foot turning radius.
d. Kitchen .Improvements
•
Construction, modification or replacement of
cupboards or shelves to provide access to
sinks, cook tops, ovens or storage areas;
-47-
. installation of accessible electrical outlets
and switches, lever-action hardware, garbage
disposals; insulation of water pipes; modifica-
tion or expansion of kitchen area to allow for
a five-foot turning radius in the workspace;
installation of "lazy susans" in cupboards;
replacement of floor covering in order to
improve wheeling surface.
e. Other Improvements
In exceptional circumstances, installation of
central air-conditions and/or stair glides or
electric lifts when the need for these improve-
ments is verified by the handicapped person's
doctor in writing.
Improvements which are not determined by the De-
ferred Loan Administrator to be eligible as Acces-
sibility Improvements may be funded under the other
provisions of these Procedural Guides.
B. Re uirements_for_Participation
Deferred loans may be made to Handicapped Persons for
Accessibility Improvements only if the conditions of
. Section VI (except the portion thereof relating to
Eligibility of Improvements), of these Procedural
Guides have been fully satisfied.
C. Amount of Deferred Loan for Accessibility Improvements .
In no event may a Deferred Loan for Accessibility
Improvements exceed 520,000. If a Deferred Loan is
made both for Accessibility Improvements and for other
Eligible Improvements pursuant to these Procedural
Guides, then under no circumstances should the amount
for the non-handicap improvements exceed the maximum
Deferred Loan amount as stated in Section VII
($15,000).
-48-
D. Responsibilities of the HRA
With respect to Deferred Loans for Accessibility Im- •
provements, the HRA shall:
1. Be governed by the general conditions set forth in
Section II of these Procedural Guides.
2. Assist the handicapped person with the preparation
of"the Application form, upon request. Such assis-
tance shall include a personal visit by the De-
ferred Loan Administrator to the home of the Handi-
capped Person, or to any other reasonable location
which is accessible to the handicapped person when
the offices housing the Deferred Loan Administrator
-are not deemed accessible in accordance with Chap-
ter 751, Laws of Minnesota, 1978.-
3. Carry out the duties required of the HRA pursuant
to Section III, except Section III-C of these
Procedural Guides, including the duty to complete
the Deferred Loan Package for Accessibility Im-
provements. A complete Deferred Loan Package for
Accessibility shall include all required materials.
4. Standard Procedure for Compiling Accessibility
Portion of Deferred Loan. In addition to all the •
documents described in Section VII, a deferred loan
package including Handicapped Improvements must
include the following:
a. Accessibility Improvements Inventory - contain-
ing a description of the Accessibility improve-
ments to be made shall be included with the
Inspection Report.
b. A letter describing:
(1) The level and specific type of disability
experienced by the handicapped person
signed by a licensed physician; and
(2) The specific Accessibility Improvements
requested by the physician.
c. Bids from contractors;
d. Architectural Drawings, if needed;
e. Any other materials requested.
r1
U
-49-
XIII. General Condition Relating to Deferred Loans
A. Urban Hennepin County Equal Opportunity/Affirmative
Action Requirements
It is the policy of Hennepin County to provide equal
access to employment, programs and services without
regard to race, color, creed, religion, age; sex, handi-
cap, martial status, affectional preference, public
assistance, criminal record, or national origin.
All programs financed through. or administered by Urban
Hennepin County will contain equal opportuni-
ty/affirmative action requirements in the Procedural
Guides. All participating communities programming
Community Development Block Grant monies to housing
rehabilitation deferred loans and/or to public facili-
ties grants will"adhere to the equal opportuni-
ty/affirmative action statement above.
Areas not specifically mentioned in this statement will
still be governed by the spirit of this statement.
If an applicant or deferred loan recipient believes they
have been discriminated against, they should contact the
Affirmative Action programs Department, A-303 Government
• Center, Minneapolis, Minnesota, 55487, 348-4096.
B. The HRA shall have full responsibility for program
.implementation including public information, reviewing
and screening applicants, choosing recipient, and assur-
ing that work will be satisfactorily completed.
C. No application, processing; or other fees shall be
charged to an applicant.
•
-50-
SECTION XIV
PROCEDURAL GUIDE
RICHFIELD FLOOD GRANT PROGRAM
•
-51-
•
FLOOD GRANT PROGRAM
determination is made. by the Executive Director that an emergency
situation exists.] Individual or localized flood damage repair
will be funded by CDBG Emergency Deferred Loans funds when severe
conditions have not occurred. The following criteria will apply
to any application for a Flood Grant.
Revised 8/87
The purpose of this program is to assist low income homeowners
who experience damage from stormwater runoff resulting from
unusually heavy rains. [The Flood Grant Program will only be
utilized when wide spread damage occurs from severe rains and a
A maximum of $50,000 will be made available from the CDBG
Rehabilitation Loan Program when emergency situations are
determined.' Sufficient CDBG funds will be reserved for all
applicants on the waiting list for Rehabilitation Deferred Loans.
Grants will be processed using the procedural guidelines
established for CDBG Emergency Deferred Rehabilitation Loans. A
deadline for flood grant applications will be determined by the
Executive Director. Any portion of Flood Grant funds not
utilized, will be returned to the CDBG Rehabilitation Loan
Program.
A. Applicant Selection
Only those applicants determined ineligible for Federal Disaster
funds, if such funds are available, will be considered for the
Flood Grant Program. All applications must be received in the
office of the Richfield HRA on or before the determined deadline.
Applicants will be ranked according to income. Funding will be
directed to the lowest income applicants first.
B. Ownership
1. The recipients must individually or in the aggregate
have at least:
a. A life estate;
b. A one-third interest in the fee title;
c. A one-third interest as purchaser in a contract for
deed with respect to the structure to be improved and
must occupy such property as their principal place
of residence.
2. All individuals occupying the structure to be improved
as their principal place of residence and having an
ownership interest in such structure must loin in the
application.
3. For the purpose of this program,
• based on the information recorded
All unrecorded contracts for deed
as proof of ownership.
ownership shall be
in Hennepin County.
shall not be viewed
-52-
4. To be eligible to receive a grant, the applicant must be
current on contract for deed payments, mortgage payments •
and property taxes on the property to be improved. If
any of these payments are in arrears, they must be made
current before the application can be approved for
funding.
C. Income and Assets
The family gross annual-income must not exceed 80~ of the
median income, as determined by Section 8 income limits. The
assets of the applicant, other than the value of the home
being improved, must not exceed $25,000.
D. Zoning
1. The property to be improved must not be in violation of
applicable zoning ordinances.
2. The property must be located within the city, and must
be used primarily for residential purposes.
E. Eligible_Improvements
Residential properties are to be improved to allow compliance
with municipal health, building, fire prevention and housing
maintenance codes and/or meet environmental standards •
applicable to housing when flood related damage has occurred.
Improvements to be given first priority include:
-Repairs to electrical system
-Repairs to plumbing system
-Repair or replacement of heating system
-Repair or replacement of water heater
-Repair or replacement of doors and windows to secure
premises
-other repairs and/or improvements which according to the
program administrator, might minimize the potential of
future flooding damage
Full compliance with all codes will not be required for grant
eligibility, and no application for a grant for property
occupied by the owner shall be denied solely because the
improvements will not bring such property into full
compliance with all such codes and standards. Repairs not
related to flood damage will be funded through the,
established~CDBG Rehabilitation Loan Program.
•
-53-
F. Amount of Grant
The amount of the grant may not exceed $6,000 per household.
Funds may only be used for the identified eligible
improvements.
G. Ineligible Items
Refinancing of existing debts or mortgages, payments for
public improvement assessments, financing of luxury items
or improvements (furniture, dishwashers, patios, fireplaces,
etc.) will not be allowed.
H. Competitive Bids
All work must have a minimum of three competitive bids. An
exception to this policy may be made when, due to the nature
of the repairs, the work must be done immediately.
I. Insurance Requirement
A homeowner will not be required to obtain flood insurance as
a condition of obtaining a Grant, but shall be encouraged
to do so if damage exceeds $1,000.
J. Repayment Agreement
• The Repayment Agreement must be included in the Grant
Package.
As specified in the provisions of the Repayment Agreement,
the recipient shall be required to notify the HRA immediately
upon the sale, transfer, conveyance or cessation of
residency of the property.
1. Each grant shall be subject to an Agreement for Repayment
which provides that in the event that the property upon
which the improvement is located is sold, transferred, or
otherwise conveyed by the Grant Recipient within seven
(7) years from the date upon which the grant application
was approved, or in the event that such property ceases
to be the recipient's principal place of residence within
seven (7) years from .the date upon which the grant
application was approved, then the recipient shall repay
(and the HRA shall have a lien to the extent permitted by
law on the property as security for such repayment) all
or a portion of such Grant Funds in accordance with the
following schedule:
-54-
Period of time within which
sale, transfer, conveyance
or cessation of residency
occurs from time of receipt
of grant
Per Cent Repayment
Prior to end of 36th full month
After end of 36th full month
until end of 48th full month
After end of 48th full month
until end of 60th full month
after end of 60th full month
until end of 72nd full month
After end of 72nd full month
100$
75$
50$
25$
No Repayment
•
-55-
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 36
\ April 18, 1994
Issue Statement:
Authorization to execute contract with South Hennepin Technical
College .(HTC) to initiate a 1994-95 Richfield Rediscovered project
at 7021 Nicollet Avenue.
Background•
The HRA purchased the property at 7021 Nicollet Avenue in March
1993 for $16,650 following a HUD foreclosure. Staff has worked
with Affordable Suburban Housing (ASH) to develop the site. Since
mid 1993, ASH has pursued several alternative plans, without a
feasible project concept evolving.
HTC has requested that the HRA participate in a new construction
project for the school year 1994-95. The 7021 Nicollet site would
be an appropriate location. Like the project recently completed by
the HTC and HRA at 6538 Bloomington Avenue, a large home (with four
bedrooms and central air conditioning) is envisioned. The two
organizations have participated together in over 20 projects since
1977. The projects provide rehabilitation and new construction
training opportunities for the building trades students and new
housing for the community. A structure is presently being built at
• the college campus and can be moved to the site, and placed on a
permanent foundation in July 1994.
Staff, in cooperation with HTC architectural drafting faculty, has
developed a project plan for this 59 foot wide site which meets all
setback requirements, to complement the design of neighboring homes
and to incorporate interior features desirable in today's market.
A copy of the prelitYiinary site plan is attached. Special attention
has been given to enhancing the sites desirability on an arterial
street. The new house will have approximately 1,800 square feet of
finished living area. It will feature a split entry design with a
living room, dining room, kitchen, four finished bedrooms, 1-3/4
bathrooms, a deck and detached double garage. The garage will be
located adjacent to the alley.
The amount of the HTC contract for this project is not to exceed
$82,400. This cost is consistent with previous projects given
design and square footage variabilities.
The estimated project costs and funding sources follow:
ACTIVITY FUNDING SOURCE
Acquisition, site: S 16,650 Richfiel d Rediscovered
Demolition, site: None None
HTC Contract: $ 82,400 Proceeds of Sale
Landscaping: $ 4,000 Proceeds of Sale
• Legal (Sale): S 600 Proceeds of Sale
Closing Costs: S 2,500 Proceeds of Sale
Total Cost $102,550
• Private contractors will complete the electrical, plumbing,
heating, and painting portions of the work. Legal counsel has
previously reviewed the contract requirements. A copy of the
building elevations also accompany this letter. Although the
completed value of the home has not yet been determined by
independent appraisal, staff estimates that the value should
approximate $102,500. The new home would be marketed as a
Richfield Rediscovered project. CDBG funds are not being
utilized in the project.
Recommended Motion:
It is recommended that the HRA adopt the attached resolution
which authorizes the execution of the~HTC contract in the amount
of $82,400 for the 1994-95 new construction project at 7021
Nicollet Avenue.
Basis of Recommendation:
1. The HRA has ownership of the property.
2. Plans have been developed and a house is being built by HTC
students that will meet site requirements and program needs
of the HRA.
3. The contract provisions are similar to previous contracts
with HTC; a summary of contract provisions is attached.
• 4. HTC has demonstrated a unique ability to provide a desirable
product at a more modest cost than other builders on sites
that are challenging to market.
5. To leave the site vacant may cause a blighting influence.
6. Staff will continue to explore new construction development
opportunities with ASH.
Alternative Recommendation:
Do not authorize execution of the HTC contract.
Discussion/Decision Mode:
HTC is seeking a buyer for this house. The HRA is viewed as the
most desirable customer. If the HRA is not interested in a
purchase, they will seek another buyer.
Resp,~u~.ly submitted,
Jame Prosser
Execu a Director
JDP:ds
•
• RESOLUTION N0.
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION RELATING TO HTC AGREEMENT FOR
7021 NICOLLET AVENUE
WHEREAS, on March 29, 1993, the HRA purchased from HUD the
property at 7021 Nicollet Avenue, legally described as attached;
and
WHEREAS, a project has been proposed as a cooperative effort
between the HRA and South Hennepin Technical College (HTC); and
WHEREAS, the property at 7021 Nicollet Avenue would be
developed with a new single family home; and
.WHEREAS, the Construction Agreement price for the new
construction program will not exceed $82,400; and
WHEREAS, following completion of the new construction work,
the property will be sold.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment- Authority in and for the City of Richfield,
• - Minnesota that the HRA Chairperson and Executive Director are
authorized to:
Enter into a Construction Agreement with HTC for an amount
not to exceed $82,400 for the new construction project at 7021
Nicollet Avenue South.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 18th day of April,
1994.
homas E. Harms, Chairperson
ATTESTY
Vern Luettinger, Secretary
SUMMARY OF
CONTRACT REQUIREMENTS FOR HTC PROJECT AT
7021 NICOLLET AVENUE
• The construction of a split entry home at 7021 Nicollet
Avenue.
• The professional installation of heating, electrical and
plumbing systems.
• Completion by July 1995. The house will be relocated from the
campus in May or June 1994.
• Supervision of labor and insurance coverage to be the
responsibility of HTC.
• .HTC is responsible for a one-year warranty for defects caused
by faulty workmanship defective materials; a two-year
warranty on installation of plumbing, electrical, heating and
cooling systems; and a ten-year warranty on structural
defects.
• A provision specifying HTC's responsibilities concerning
• timely completion of the exterior facade, and routine site
maintenance during the construction period.
•
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N1CU~LET
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 35
Agenda April 18, 1994
Issue Statement:
Authorization to fund Richfield Rediscovered New Construction.
Background°
As part of~the 1994 HRA budget process, $350,000 was authorized
to be used from the Development Fund to finance the acquisition
of property for Richfield Rediscovered. Approximately 5 or 6 new
homes are possible with these funds. In addition, staff has
received preliminary new construction interest from 9 New Ford
Town/Rich Acres (NFT/RA) households that are in the initial
acquisition phase. An additional $350,000 is requested to ensure
that those who respond to HRA marketing initiatives in NFT/RA can
be served. An allocation of $700,000 could provide 10 to 12
homes. Two additional sites, at 7416-4th and 6844-14th Avenues,
are already in the Richfield Rediscovered Program and available.
Thus, 14 new construction opportunities could be available during
1994 to meet anticipated demand.
At the March 21, 1994 HRA meeting, Sid Inman of Publicorp
presented an analysis of the status of all TIF projects. The
projects are doing better than expected. Attached is a recent
memorandum addressing the transfer of funds from the LHN to the
. Development Fund. The analysis indicates that up to $1 million
could be withdrawn and still maintain a more than adequate debt
coverage ratio. (Within the budget process for 1994-95, staff
will identify other program funding needs to be met by the
Development Fund.)
An allocation to Richfield Rediscovered is needed at this time to
1) maintain market presence, 2) provide opportunities to NFT/RA
residents, and 3) provide a basis for determining the number of
additional properties which could be purchased so as to permit
staff to prepare a redevelopment plan modification.
Recommended Motion:
1. Authorize the use of the 1994 budget appropriation of
$350,000.
2. Provide an additional appropriation to the Development Fund
of $350,000 to meet the new construction needs of NFT/RA
households.
Basis of Recommendation:
1. Market demand continues and must be met to maintain program
presence.
2. A special set aside should be established for NFT/RA
• households.
• 3. An analysis by Publicorp indicates that there are sufficient
revenues available to the Development Fund to support the
proposed level.
Alternative Recommendation:
1. .Leave the program allocation unchanged.
2. Make further adjustments to the allocation.
Discussion/Decision Mode
A plan modification must be processed before additional property
could be purchased. An indication of the funding to be made
available will facilitate preparation of the modification for the
May HRA meeting.
Resp~ct`~,~Ci~ly submitted,
James I): Prosser
Execu ve Director
JDP:ds
Publicorp Inc.
512 Crown Roller Mill (612) 341-3646
05 Fifth Avenue South FAX (612) 341-4148
~linneapolis, MN 55401
MEMORANDUM
TO: Bruce Palmborg, City of Richfield
FROM: Sid Inman, Publicorp, Inc.
DATE: April 8, 1994
RE: 1994 Development Account Deposit
As you are aware, Publicorp has been asked annually to review the financial position of
the tax increment district in the City of Richfield. As part of that review, we project total
revenues and expenditures throughout the life of each district in an attempt to provide the
HRA with an analysis of the financial stability of the districts.
i That report was presented to the HRA at its March 21st meeting and I have included a
copy of that report for your review. You will note that we reported at the meeting the
status of the districts has remained stable or has improved since the 1993 report. Based
on the overall market value decreases in the area, we believe this is a positive position
for the districts to be in. We also mentioned that it is our opinion that all districts remain
healthy and will have sufficient reserves to pay all outstanding obligations.
An additional part of that review is to assist the City in determining how much, if any, can
be transferred from the LHN Tax Increment District to the Development Account.
In order to review a potential transfer, we have prepared six cash flow analyses of the
LHN District. The first assumes no transfer is made. The next five assumes transfers of
$600,000 to $1 million are made.
In an attempt to analyze the effect of each one of these transactions, we have used a
debt service coverage factor for review. Debt service coverage is defined as the total
amount of revenues available to pay debt divided by the total debt service to be paid.
You will note that in the case of no transfers to the development account, the coverage
percentage is approximately 1.38%. In other words, the HRA has 13896 of the cash it
needs to cover it's debt service obligations throughout the life of the District. You will
note how this debt service coverage changes as we graduate from $600,000 to $1 million,
• which ends with a debt service coverage of 132%.
To put these percentages into perspective, you should be aware of the fact that the law
• requires 105% coverage of general obligation bonds. Additionally, revenue bonds that
are currently selling in the market place require a 120% - 125% coverage. In short, if you
were to choose to .take the $1 million transfer to the development account, it is our
position that there would still be substantial excess cash to cover debt service payments.
I hope this answers the question that you posed. I will be available at the Monday nights'
HRA meeting to discuss it in detail.
richfielldevecdep.mem
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 34
Agenda April 18, 1994
Issue Statement°
Status report on Community Apartment Program.
Background•
On August 16, 1994 the HRA selected Project For Pride In Living
(PPL) and Affordable Suburban Housing (ASH) to implement the
community apartment program. Shortly after PPL/ASH initiated
their work, the HRA requested that a status report be presented
at the February meeting. The regular February meeting was not
held and because of the press of CSM matters it was not scheduled
in March. Ms. Laura Klein and Mr. Bill Schatzlein will present
the report.
The report will relate to the five program outcomes identified in
the contract:
Outcome One: A profile of the current population of apartment
residents in Richfield will be developed that will aid in
directing plans to achieve our goal (duplication of efforts will
be avoided).
Outcome Two: An organization of apartment owners/managers will
be established that will support efforts to maintain decent low-
cost housing that is financially viable.
Outcome Three: A model for a multi-unit dwelling resident
organization will be developed.
Outcome Four: A directory of Richfield Human Services and
Educational Opportunities will be developed that includes: a
description of services/programs offered; eligible participants;
location; hours; cost; and available transportation. To the
extent possible, existing information will be utilized.
Outcome Five: A Community Services Group will be formed to link
the City of Richfield, apartment owners/managers association,
human service organizations, educational institutions, and
resident groups in order to relate networks for community
building through communication, promote positive working
relationships, improve the delivery of services to residents, and
improve the livability of Richfield apartments. A determination
will be made about which services/programs could be brought to
housing sites or neighborhood locations.
Recommended Motion:
Accept and discuss the Community Apartment Program report.
Basis of Recommendation:
1. The HRA initiated this program.
2. A status report was requested by the HRA.
Alternative Recommendation:
Delay presentation of report.
Discussion/Decision Mode:
The program is approximately half way through its first year.
Respectfu y submitted,
James Prosser
Execu a Director
JDP:ds
•
s
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 33
Agenda April 18, 1994
Issue Statement:
Public hearing and authorization of the sale of Richfield
Rediscovered property at 6926 Chicago Avenue to Quam, Sumnicht,
and Associates.
Background•
The HRA authorized the sale of 6926 Chicago Avenue to Newman
Berger in October 1993.. Shortly thereafter, Mr. Berger found
his proposed project was over budget. Staff remarketed the site.
Quam, Sumnicht, and Associates (QSA) has identified a buyer and
proposes to build a three bedroom (5128,000) home in accordance
with the attached plan.. The development agreement requires:
s A cash deposit of $25,000 to the HRA as performance
security. This is an .acceptable alterative to a Letter of
Credit.
s Completion by October 31, 1994.
s Construction financing and insurance requirements that other
Richfield Rediscovered builders have provided.
The HRA has already demolished the home in preparation for
• development.
Recommended Motion:
Following the public hearing, adopt the attached resolution which
authorizes the Chair and Executive Director to execute an
agreement to sell 6926 Chicago Avenue to Quam, Sumnicht and
Associates for the development of a new single family home.
Basis of Recommendation:
1. Experience with QSA to date indicates they are a responsible
contractor. This will be their first new construction
project in Richfield.
2. The HRA owns the site and is prepared to sell.
3. A development agreement has been negotiated and is in
conformance with program guidelines.
4. Notice of public hearing was published in the Sun-Current on
April 6, 1994.
5. Previously, the Planning Commission found the sale of this
lot for development of a new single family home to be in
conformance with the City's Comprehensive Plan.
Alternative Recommendation:
• Do not proceed with the development agreement with Quam,
Sumnicht, and Associate and direct staff to find another buyer.
• Discussion/Decision Mode:
A closing is anticipated to occur in early May with construction
starting shortly thereafter.
Respectf y submitted,
James Prosser
Execu i e Director
JDP:cak
•
•
• HRA RESOLUTION N0.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING SALE OF REAL
PROPERTY LOCATED AT
6926 CHICAGO AVENUE
TO QUAM, SUMNICHT, AND ASSOCIATES IN ACCORDANCE WITH
A DEVELOPMENT AGREEMENT
WHEREAS, the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota (HRA) desires to develop certain
real property pursuant to and in furtherance of the Richfield
Rediscovered Program Redevelopment Project (Project) heretofore
adopted by the City of Richfield (City) and the HRA, said real
property being described as follows:
6926 Chicago Avenue, "Chicago Avenue Acres" Addition, Lot
1, that part of east 1/2 lying north of south 50 feet thereof,
Hennepin County; and
WHEREAS, the HRA is authorized to sell real property within
its area of operation after public hearing; and
WHEREAS, a developer Quam, Sumnicht, and Associates has been
identified as the purchaser of the described property, in
• accordance with a development agreement; and
WHEREAS, the development agreement between the HRA and Quam,
Sumnicht, and Associates requires:
1. A Letter of Credit in the amount of $25,000 as performance
security;
2. A construction completion date of October 31, 1994; and
3. Evidence of construction financing and insurance; and
WHEREAS, a public hearing has been held to authorize the
sale after proper public notice; and
WHEREAS, the Planning Commission has made a finding that the
disposition of the property for residential purposes is
consistent with the Comprehensive Plan.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority:
1. A public hearing has been held and 6926 Chicago Avenue is
authorized to be sold to Quam, Sumnicht, and Associates in
• accordance with a development agreement with the HRA.
2. The purchase price for 6926 Chicago is $25,000.
• 3. The Chairperson and Executive Director are authorized to
execute the Development Agreement and other agreements as
required to effectuate the sale to Quam, Sumnicht, and
Associates.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 18th day of April,
1994.
Thomas E. Harms, Chairperson
ATTEST:
Vern Luettinger, Secretary
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 32
Agenda April 18, 1994
Issue Statement:
Public hearing and authorization of the sale of Richfield
Rediscovered property at 7245-12th Avenue to Jespersen Builders.
Background °
In December 1993, the HRA authorized the acquisition of property
at 7245-12th Avenue under the Richfield Rediscovered program.
The following development agreement proposal is being brought to
the HRA:
• Bill Jespersen of Jespersen Builders, Little Canada, is
proposing to build a 1,800 sq. ft., 4 bedroom, $150,000 home
for his sister, a Richfield resident.
• Mr. Jespersen builds about 20 homes a year in a similar
price range.
• At the closing with the HRA, Mr. Jespersen would provide a
Letter of Credit for $30,000 to the HRA as performance
security.
. s The development agreement, the same used for all Richfield
Rediscovered builders, also requires:
- Completion by October 31, 1994; and
- Construction financing and insurance requirements that
other Richfield Rediscovered builders have provided. A
letter received from his lender indicates a positive
financial position.
Recommended Motion:
Following the public hearing, adopt the attached resolution which
authorizes the Chair and Executive Director to execute an
agreement to sell 7245-12th Avenue to Jespersen Builders for the
development of a new single family home.
Basis of Recommendation:
1. A check of references, the City of Little Canada building
inspector and Jespersen°s lender, indicate that Mr. Jespersen
can responsibly perform.
2. The HRA has entered into a purchase agreement to voluntarily
acquire 7245-12th Avenue on April 29, 1994 from the seller as
part of the Richfield Rediscovered program.
3. A development agreement has been negotiated and is in
• conformance with program guidelines.
4. Notice of public hearing was published in the Sun-Current on
April 6, 1994.
5. Previously, the Planning Commission found the sale of this
lot for development of a new single family home to be in
conformance with the City's Comprehensive Plan.
Alternative Recommendation:
Do not proceed with the development agreement with Jespersen
Builders and direct staff to find another buyer.
Discussion/Decision Mode:
Closing is expected to occur in early May with site clearance and
construction starting shortly thereafter.
submitted,
James D. Prosser
Executi Director
JDP:ds
•
r~
U
HRA RESOLUTION N0.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING SALE OF REAL
PROPERTY LOCATED AT
7245-12th AVENUE
TO JESPERSEN BUILDERS, IN ACCORDANCE WITH
A DEVELOPMENT AGREEMENT
WHEREAS, the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota (HRA) desires to develop certain
real property .pursuant to and in furtherance of the New Home
Program, said real property being described as follows:
7245-12th. Avenue; unplatted addition 35-028-24; that part of
the S 103.5 ft of W 1/4 of NW 1/4 of SW 1/4 of NE 1/4 lying E of
W 33 ft thereof and N of S 30 ft thereof; Hennepin County.
WHEREAS, the HRA is authorized to sell real property within
its area of operation after public hearing; and
WHEREAS, a developer, Jespersen Builders, has been
identified as the purchaser of the described property, in
accordance with a development agreement; and
• WHEREAS, the .Development Agreement between the HRA and
Jespersen Builders requires:
1. A Letter of Credit in the amount of 530,000 as
performance security.
2. The sale price for the land of 530,000.
3. A construction completion date of October 31, 1994; and
4. Evidence of construction financing and insurance; and
WHEREAS, a public hearing has been held to authorize the
sale after proper public notice; and
WHEREAS, the Planning Commission has made a finding that the
disposition of the property for residential purposes is
consistent with the Comprehensive Plan.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority:
1. A public hearing has been held and 7245-12th Avenue is
authorized to be sold to Jespersen Builders in accordance
with a development agreement with the HRA.
2. The purchase price for 7245-12th Avenue is $30,000.
3. The Chairperson and Executive Director are authorized to
execute the Development Agreement and other agreements as
required to effectuate the sale to Jespersen Builders.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 18th day of April 1994.
Thomas E. Harms, Chairperson
ATTEST:
ern Luettinger, Secretary
•
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• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 31
Agenda April 18, 1994
Issue Statement:
Public hearing on sale of property to CSM Corporation to provide
for the construction of Phase I Shops at Lyndale and the
relocation of Emerson Avenue Congregational Church.
Backcrround
On April 11, 1994, the HRA approved a Contract for Private
Redevelopment. The contract provides for the construction of
112,000 square feet of Phase I Shops at Lyndale and the
relocation of Emerson Avenue Church. The Phase I construction
would-take place on the site area bounded by Emerson and Colfax
Avenues and 77th and 78th Streets. The property to be conveyed
by the HRA to the developer would be those parcels for which the
developer has been unable to negotiate a purchase and for which
the HRA obtains title through condemnation and quick take. The
contract requires the developer to pay all HRA costs incurred for
the purchase.
The contract provides for the HRA to sell a portion of the
Cloverleaf site to the developer for the construction of a new
church facility. The cost to the developer is "not to exceed the
• HRA's per square foot cost" of purchase. A separate agreement
will spell out the exact location and size of the site within the
"Cloverleaf." That agreement will be presented to the HRA at a
later date for action prior to making the court deposit for the
condemnation on the Phase I site.
Recommended Motion:
Adopt the attached resolution which authorizes the sale of the
identified site area for Phase I and a portion of the Cloverleaf
site not to exceed three acres for the relocation of Emerson
Avenue Congregational Church.
Basis of Recommendation:
1. The approved contract calls for the sale of this property to
the developer.
2. The developer would pay HRA costs as stated in the contract.
3. The legal notice for this public hearing was published on
April 6, 1994.
4. The specific location and size of the site for the church
relocation will presented subsequently in a separate
agreement.
. 5. The hearing and adoption of the resolution will establish the
intent of the HRA on this matter.
Alternative Recommendation:
1. Continue the hearing to a date certain.
2. Refuse to hold the hearing.
Discussion/Decision Mode:
Approval of the resolution will make it possible for the
redevelopment proposal to continue processing in a timely manner.
Respectf ly submitted,
James Prosser
Execu ive Director
JDP:ds
•
•
HRA RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING SALE OF REAL
PROPERTY LOCATED AT
NORTHEAST QUADRANT OF I-35W AND I-494
WHEREAS, On March 14, 1994, the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota (the "HRA")
was presented with a concept proposal for the redevelopment of a
retail center (the "Project") in the Interstate-Lyndale-Nicollet
(the "ILN") Redevelopment Project Area (the "Project Area") by
the CSM Corporation of St. Paul, Minnesota (the "Developer"); and
WHEREAS, on March 28, 1994 the HRA approved Modification No.
4 to the ILN Redevelopment Plan and Tax Increment Financing Plan
(the "Plans"), which modification incorporated additional land
acquisitions and sales and changes in the public and private
improvements to be constructed within the Project Area into the
Plans; and
WHEREAS, the Plans call for the HRA to assist the Developer
with site assembly, including land acquisition should the
Developer be unable to successfully acquire the necessary land
• through private negotiations; and
WHEREAS, said real property (the "Property") impacted by the
Project is described in Attachment A; and
WHEREAS, the HRA is authorized to sell real property within
its area of operation after public hearing; and
WHEREAS, the public hearing has been held after proper
public notice; and
WHEREAS, Planning Commission found that the disposition of
the Property for Project purposes is consistent with the
Comprehensive Plan by its action on April 12, 1994; and
WHEREAS, a Contract For Private Redevelopment between the
HRA and the Developer has been approved; and
WHEREAS, the HRA will subsequently be presented with an
agreement specifying the exact location and area of the "Church
parcel" to be used to provide for the relocation of Emerson
Avenue Congregational Church.
NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and
Redevelopment Authority:
• 1. A public hearing has been held on the sale of the real
property described in Attachment A.
• 2. That the Chairperson and Executive Director are authorized
to execute any and all agreements required to effectuate
this resolution.
3. That the Contract For Private Redevelopment contains terms
and conditions of the sale.
4. That the size and specific location of the "Church parcel"
will be identified under a separate agreement between the
HRA and the Developer.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 18th day of April 1994.
Thomas E. Harms, Chairperson
ATTEST:
Vern Luettinger, Secretary
•
•
ATTACHMENT A
Description of Real Property
•
•
Real property disposition of a portion of the "Cloverleaf Site"
not to exceed 3 acres (the "Church parcel"), generally located
within the area bounded by 76th Street to the north, I-494 to the
south, Emerson Avenue to the east, and I-35W to the west.
Also, the following real property:
PID No. Property Address. Legal Description
33-028-24-43-0009 7701 Emerson Avenue The North 240 feet of
the East 1/2 of the
Southeast 1/4 of the
Southwest 1/4 of
Southeast 1/4, except
roads.
33-028-24-43-0010 7721 Emerson Avenue
33-028-24-44-002.5 7700 Colfax Avenue
That part of the East
1/2 of the Southeast
1/4 of the Southwest
1/4 of the. Southeast
lying South of the
North 240 feet
thereof, except
highway.
Commencing at the
Northeast corner of
the West 320 feet of
the South 1/2 of the
Southeast 1/4 of the
Southeast 1/4 thence
South 255 feet, thence
West 30 feet, thence
North 50 feet, thence
West 130 feet, thence
South 50 feet, thence
West to the West line
of the South 1/2 of
the Southeast 1/4 of
the Southeast 1/4,
thence North to the
Northwest Corner
thereof, thence East
to the point of
beginning; except
road.
33-028-24-44-0026 7714 Colfax Avenue The
the
the
the
the
Sou
South 50 feet of
North 255 feet of
East 130 feet of
West 290 feet of
South 1/2 of the
theast 1/4.
33-028-24-44-0027 7726 Colfax Avenue The South 90 feet of
the North 345 feet of
the West 320 feet of
the South 1/2 of the
Southeast 1/4 of the
Southeast 1/4.
33-028-24-44-0028 7738 Colfax Avenue
•
That part of the
West 320 feet of the
South 1/2 of the
Southeast 1/4 of the
Southeast 1/4 lying
South of the North
345 feet thereof,
except highway.
•