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12-20-93 agendaCITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MONDAY, DECEMBER 20, 1993 7:00 P.M. COUNCIL CHAMBERS AGENDA CALL TO ORDER APPROVAL OF MINUTES OF HRA MEETING OF NOVEMBER 15, 1993 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. PRESENTATION BY STEVE QUAM OF QSA REGARDING TRANSFORMATION HOUSING PROGRAM HRA LETTER NO. 50 3. CONSIDERATION OF REPORT FROM CSM CORPORATION ON INTEREST IN REDEVELOPING ILN AREA BETWEEN LYNDALE AND EMERSON AVENUES HRA LETTER NO. 51 r~ 4. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF PROPERTY TO RICHFIELD STATE AGENCY IN ACCORDANCE WITH DEVELOPMENT AGREEMENT TO PROVIDE FOR CONSTRUCTION OF MEDICAL OFFICE FACILITY HRA LETTER NO. 52 5. CONSIDERATION OF RESOLUTION APPROVING DECLARATION OF EASEMENTS AND COVENANTS WITH RICHFIELD STATE AGENCY, INC._ HRA LETTER NO. 53 6. CONSIDERATION OF "Fp,MILY,NEEDS" REPORT REGARDING RESPONSES TO SECTION 8 PROGRAM TENANT SURVEY HRA LETTER N0.54 7. CONSIDERATION OF AUTHORIZATION TO MODIFY HRA'S ADMINISTRATIVE PLAN FOR OPERATING SECTION 8 VOUCHER PROGRAM HRA LETTER NO. 55 8. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7245 12TH AVENUE, 6844 14TH AVENUE, 6625 STEVENS AVENUE AND 7416 FOURTH AVENUE FOR RICHFIELD REDISCOVERED PROGRAM HRA LETTER N0. 56 9. CONSIDERATION OF AGREEMENT WITH W.D. SCHOCK COMPANY FOR STAFF SERVICES RELATED TO NEW FORD TOWN/RICH ACRES BUYOUT HRA LETTER NO. 57 10. EXECUTIVE DIRECTOR REPORT 11. 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. 57 Agenda December 20, 1993 Issue Statement• Approval of agreement with W. D. Schock Company for staff services related to the New Ford Town/Rich Acres buyout. Background: At the buyout information open house on October 19, sponsored by Schock and MAC, residents were informed of the hardship acquisition program. The program is patterned after a state hardship acquisition program and was used successfully by HRA staff in the 77th Street project before state and federal funds. became available. Homeowners may claim hardship status if a negative health or economic situation could be relieved in whole or in part by sale of their property. Because of the successful utilization of RALF by HRA staff, Schock requested assistance in administering. their hardship program. Costs incurred by staff, including staff time, are being paid by Schock. Recommended Motion: Adopt a motion approving the contract between Schock and the HRA providing for services in processing hardship applications. Basis of Recommendation: 1. Staff has successfully utilized the RALF program upon which the buyout hardship program is based. 2. Schock will pay for the costs incurred by staff in working on the program up to 515,000. 3. The contract format was provided by staff to Schock and has been successfully utilized with other HRA programs. 4. The contract document form has been approved by MAC and W. D. Schock. Alternative Recommendation: 1. Delay action. 2. Modify contract. 3. Refuse to approve contract. Discussion/Decision Mode: Sixty-five homeowners have filed for hardship status. Schock hopes to start appraisals of the approved hardship applicants homes soon. Approximately 30 applications have already qualified as "hardships." Resp ully submitted, Ja a D. Prosser Ex tive Director JDP:ds PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT, dated November 5, 1993, made and entered into by and between W. D. Schock Company, Incorporated, of Nashville, Tennessee, hereinafter referred to as the "Company", and the Housing and Redevelopment Authority in and for The City of Richfield, State of Minnesota, hereinafter referred to as the ~~ HRA ~~ WITNESSETH: WHEREAS, the Metropolitan Airports Commission ("MAC") has undertaken a project to acquire properties located in the New Ford Town and Rich Acres neighborhoods of the City of Richfield (the "Project "~) ; and WHEREAS, the MAC has contracted with the Company to provide Professional Land Acquisition and Relocation services to MAC in connection with the Project; and WHEREAS, the MAC has adopted guidelines for the acquisition of properties based upon hardship circumstances; and WHEREAS, the Company desires to purchase the services of the HRA in processing hardship applications and documenting hardship claims made by property owners in connection with the Project; and WHEREAS, the HRA desires to provide .the requested services, as agreed below. NOW, THEREFORE in consideration of the mutual undertakings and agreements hereinafter set forth, the Company and the HRA agree as follows: 1. SERVICES TO BE PROVIDED The Company will refer to HRA all persons who request information or assistance regarding an application for early acquisition of the person's property under the MAC hardship guidelines. The HRA will provide the following services to Schock: (1) collect hardship applications supplied by the Company or others; (2) provide information and assistance to applicants in making and completing their hardship applications and compiling supporting documentation; (3) process applications to the point where the applications are ready for submission to a third party mediator for consideration of preliminary approval. When ready for submission to the third party mediator, the HRA will submit the application and supporting documentation to the Company for further processing and scheduling. Time is of the essence in completing this contract and all feasible efforts will be made to expedite the work. 2 2. PAYMENT FOR SERVICES The cost of services, aforementioned, shall not exceed $15,000.00 without prior written approval of the Company. Services shall be billed on an hourly basis in tenth of an hour increments and invoices submitted by the 5th day of the month. The attached Appendix A sets forth billing rates. In addition thereto, the HRA shall be reimbursed for all out of pocket expenses, including without limitation, postage, copying and long distance telephone charges. Out of pocket expenses shall be submitted at cost. Payment for services shall be made directly to the HRA by check. Invoices shall be of sufficient detail for the Company to determine the activity and personnel for which payment is being made. Payment shall be made within 5 days of receipt of payment to the Company by MAC for services rendered. 3. INDEPENDENT CONTRACTOR The HRA shall select the names, method, and manner of performing the services herein in consultation with the Company. Nothing is intended or should be construed in any manner as creating or establishing the relationship of copartners between the Company and the HRA or as constituting the HRA as the agent, representative, or employee of the Company for any purpose or in any manner whatsoever. The HRA 3 is to be and shall remain an independent contractor with respect to all services performed under this Agreement. The HRA represents that it has or will secure at its own expense all personnel required in performing services under this Agreement. Any and all personnel of the HRA or other persons while engaged in the performance of any work or services required by this Agreement shall have no contractual relationship with the Company, and shall not be considered employees of the Company. Any and all claims that may or might arise under the Unemployment Compensation Act or the Workers' Compensation Act of the State of Minnesota on behalf of said personnel, arising out of employment or alleged employment, including, without limitation, claims of discrimination against the HRA, contractors, or employees shall responsibility of the Company. 4. NONDISCRIMINATION its officers, agents, in no way be the The HRA operates in accordance with the City of Richfield's policies against discrimination. No person shall be excluded from or denied the benefits of any service performed or contemplated under the terms of this Agreement on the grounds of race, color, creed, religion, age, sex, disability, marital status, sexual orientation, public assistance status, ex- offender status, or national origin; and no person who is 4 protected by applicable Federal or State laws against _ discrimination shall be otherwise subjected to discrimination. 5. DATA PRIVACY The Company acknowledges that the data to be collected by the HRA in performance of this Agreement is subject to the Minnesota Government Data Practices Act, Minnesota Statutes, Ch. 13. The Company and HRA agree to abide by all applicable state and federal laws and regulations concerning the handling and disclosure of the data. The Company agrees to defend and indemnify the HRA against any claim to defend and indemnify the HRA against any claim for damages or attorney's fees resulting from the Company's failure to comply with such laws and regulations. 6. RECORDS - AVAILABILITY The HRA agrees that the Company and MAC, or any of their duly authorized representatives, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc.-, which are pertinent to the accounting practices and procedures of the HRA and involve transactions relating to this Agreement. Any such examination shall be conducted during normal business hours and only upon 48 hours .prior notice to the HRA. All records, files, and 5 originals shall be submitted to the. Company within 30 days after completion of each case. 7. NON-ASSIGNMENT The HRA shall not assign, subcontract, transfer, or pledge this contract and/or the services to be performed hereunder, whether in whole or in part, without the prior written consent of the Company. 8. MERGER AND MODIFICATION a. It is understood and agreed that the entire. Agreement between the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof . b. Any material alterations, variations, modifications, or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. 9. DEFAULT AND CANCELLATION a. If the HRA fails to perform any of the provisions of this 6 Agreement or so fails to administer the work as to endanger the performance of the Agreement, this shall constitute a default'. The Company shall give written notice to the HRA of any default and .shall provide the HRA a reasonable opportunity to cure the default, which shall not be less than 10 days. If the default is not cured within the period specified in the notice, the Company may cancel the Agreement in its entirety. b. This Agreement may be cancelled with or without cause by either party upon thirty (30) days written notice. 10. CONTRACT ADMINISTRATION In order to coordinate the services of the HRA with the activities of the Company so as to accomplish the purposes of this contract, Kelly Hauch and Bruce Palmborg shall serve as liaison between the Company and the HRA, respectively. In addition, from time to time, meetings shall be held between the Company and HRA staff. 11. NOTICES Any notice or demand which must be given or made by a party hereto under the terms of this Agreement shall be in writing 7 and delivered personally or by certified mail, return receipt requested. Notices shall be sent as follows: To the HRA: Mr. Byron Wallace Community Development Director City Hall 6700 Portland Avenue Richfield, MN 55423 To the Company: Mr. Ralph E. White Project Director W. D. Schock Company, Inc. 5844 28th Avenue South Minneapolis, MN 55417 The Company having signed this contract, and the HRA having duly approved this contract and pursuant to such approval and the proper HRA officials having signed this contract, the parties hereto agree to be bound by the provisions herein set forth. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD STATE OF MINNESOTA By. Executive Director By: Chairperson W. D. Schock Company By. Its ~~,,// ~J ' V~.¢~ / 8 Attest Attest ~ `, ~~~ Attest APPENDIX A Staff B. Wallace, Community Development Director $47/hour B. Palmbbrg, Housing & Redevelopment Coordinator $40/hour J. Kunz, Community Development Assistant $27/hour K. Jablonsky, Redevelopment Specialist $27/hour C. Johnson, Community Development Technician $15/hour Office Support $21/hour 9 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 56 Agenda December 20, 1993 Issue Statement: Adoption of a resolution authorizing the purchase of property for Richfield Rediscovered. Backaround• In May 1993, the HRA authorized an allocation of 5360,000 from the Development Fund toward the continuation of Richfield Rediscovered. Two properties (6912 Oliver and 6926 Chicago) have already been acquired and development has been authorized. Staff has identified four additional properties. BCL performed the requested appraisals. Staff has negotiated purchases at the appraised value: Address Appraised Value 7245 12th $49,000 6844 14th $51,000 6625 Stevens $45,000 7416 Fourth $68,000 (double lot) All the properties have been inspected to determine that they meet program requirements for acquisition. All the properties i except 6625 Stevens are part of the Richfield Rediscovered Tax Increment Program as approved by the HRA in July 1992. The Stevens property, the owner having been placed in a care facility earlier in 1993, would be included in a modified tax increment program planned for early 1994. Legal counsel has indicated that the HRA has the authority to acquire and then place the property into the revised tax increment program. The property at 7416 Fourth Avenue is a double lot. It has been proposed that the HRA purchase and subdivide the property and encourage the development of two single family homes. Thus, the net acquisition cost per lot is $34,000 and two 5110,000 to $130,000 properties are envisioned upon redevelopment. The seller of 7416 Fourth Avenue is working with Marlin Grant Homes to possibly-build a new home on one of the two lots that would become available. Recommended Motion: - Adopt the attached resolution which authorizes: 1. The purchase of the properties at the values indicated. 2. The Executive Director and HRA Chairperson to execute purchase agreements and other documents to effectuate the purchase. Basis of Recommendation: 1. The properties meet program requirements for acquisition and are identified in the plans previously approved by the HRA. The property at 6625 Stevens would be added to the program before redevelopment. 2. Funding for acquisition is available. 3. The owners have voluntarily indicated an interest in selling their property to the HRA. 4. Purchase has been negotiated at the stated values. Alternative Recommendation: 1. Do not authorize acquisition. 2. Suspend the Richfield Rediscovered program and use development funds to repay outstanding water and sewer loans in the amount of $414,676. Discussion/Decision Mode: Agreements. to purchase would be prepared in final form and builder/buyer teams would be sought if the HRA concurs. Resp lly submitted, Jam s D. Prosser Exe tive Director JDP:ds RESOLUTION N0. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7245 12th Avenue 6844 14th Avenue 6625 Stevens Avenue 7416 Fourth Avenue WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield Minnesota (HRA) desires to purchase certain real property pursuant to and in furtherance of the Richfield Rediscovered Redevelopment Project (Project) heretofore adopted by the City of Richfield (City) and the HRA, said real properties being described as follows: 7245 12th: That part of 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 6844 14th: Lot 1, Block 1 Richlands Addition 6625 Stevens: Lot 6, "Goodspeed's Second Plat Richfield, MN" N 1/2 of W 1/2 7416 4th: S 100 ft of N 267.8 ft of E 1/4 of NW 1/4 of NE 1/4 of SE 1/4 Ex St WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, the properties meet all program requirements for acquisition; and WHEREAS, the HRA has caused appraisals of the subject properties to be made by a qualified independent professional real estate appraiser and has negotiated purchase prices with the owners based on stated values; and WHEREAS, funds have been provided by the HRA and are available for acquisition. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority: 1. That purchase prices are approved as follows: Address Appraised Value 7245 12th $49,000 6844 14th 551,000 6625 Stevens $45,000 7416 Fourth $68,000 2. That the Chairperson and Executive Director are authorized to execute a Purchase Agreement and other documents to effectuate purchase for the amounts set forth. in this resolution Adopted by the Housing and Redevelopment Authority in and for the City of Richfield Minnesota this 20th day of December, 1993. Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 55 Agenda December 20, 1993 Issue Statement• Authorization to modify the HRA's Administrative Plan for operating the Section 8 voucher program. Background: The HRA's Section 8 program is administered by the Executive Director in accordance with an administrative plan. The 31 page plan was originally approved by the HRA in 1988, when the HRA separated from the Metropolitan Council HRA program. The HRA last authorized changes to the plan in 1991. Minor changes are prepared by staff. The changes remove references to the HRA/Metro HRA program transition, which has been completed. Changes in HUD regulations have resulted in additional minor wording changes in the plan. In accordance with the plan and HUD regulation, the voucher program provides financial assistance based on unit bedroom size. Clients pay 30 percent of their income toward rent. The HRA through its contract with HUD pays the balance up to the set rent amount called the "pay standard." The increase in rents in the market place since 1991 indicates a change in the pay standard is needed. The attached table clarifies the changes being proposed. Recommended Motion: 1. Authorize staff to complete nonsubstanative changes to the Section 8 program Administrative Plan. 2. Authorize a revised pay standard as follows: Unit Size Proposed Pay Standard (rent rate 1 bedroom $466 2 bedroom $580 3 bedroom $788 4 bedroom $882 Basis of Recommendation: 1. After a five year period of relatively stable rents, increases are being noted. 2. Richfield presently has one of the lowest pay standards in the metropolitan area. These standards are not keeping up with rent charges and some clients may have assumed a greater rent burden than the 30 percent of income guidelines. 3. The proposed adjustments are conservative, relieving some rent burden but not reaching the upper pay standard ceiling allowed by HUD: Proposed Maximum Pay Standard Unit Size Pay Standard Allowed by HUD 1 5466 $466 2 $580 5597 3 5788 $819 4 $882 .$926 4. HUD provides sufficient financial assistance to the HRA to cover these adjustments in the pay standard. 5. There is sufficient funding to ensure that the same number of clients can be served. Alternative Recommendation: Do not change the pay standard at this time. However, the rent burden is already significant for the elderly and large families and the HUD guidelines suggest an adjustment is needed. A change at this time, allows implementation for the January 1, 1994 beginning of the fiscal year. Discussion/Decision Mode: Staff could implement the change immediately. submitted, James Prosser Exec t ve Director JDP:ds A z d a W U 00 Z O 0 H U w 0 a °a z O E~ O ~.~ /-~ ~ ~ . U °~ ~ a~ ~ o rn `t rn " o o ~ ~ r ~ o ~ Q s9 s9 es ~ _ U .~ +~ ~ ~ c~ ~ i ~ ~ o ~ o o ~ ~` ~ ~ ~ U H s~s ~ eNS ~ U o 00 i ~ .o z ~ ~ ~ M ci' O~ ~ .~ 'C3 ~ ~ ~ ~ o ~ ~O O 00 N a a ~ ~ ~ ~ ^C a ~ ~ ~ 69 b9 69 69 ~ ~~ O V ~' . ~ ~ .,, ~ „~~ O~ O~ N ~ ~ ~ ~ a ~ w U ~ th ~ _ 00 00 ~ ~ ~ ~ ~ ~ ~ ~ ° ° ° ° o o o o s -o -~ -~ ~ N W (~ W ~ ~ ~ N M ~ 0 U c~ Q~ ~ j[^J•~Jj U ~, O -~ •~ ~ ~ C~ ~ y ~ ~ ~ ~, U ~ ~ cd ~ ~ 3 ~ •~' .~ .~ v1 H r-i ~ ADMINISTRATIVE PLAN Housing and Redevelopment Authority in and for the City of Richfield (Revised December, 1993) Section 8 Existing Rent Assistance Certificate and Voucher Program A Program Funded by The .Department of Housing and Urban Development (HUD) A. STATEMENT OF OVERALL APPROACH The affordable rental housing needs of present and future Richfield residents are currently being met by four allocations of existing housing voucher program contracts and budget authorities. These allocations allow for a total of 230 units. Two units are set aside to assist homeless situations. Eligibility for these homeless Vouchers shall be determined according to federal and local preference categories. When one of these Vouchers has been issued to a homeless participant, this Voucher will be retained by that participant for the duration of their participation in the Section 8 Program. If the participant becomes ineligible, or voluntarily relinquishes the Voucher, it shall be reissued to the next eligible homeless family on the waiting list. At specified times, Richfield HRA will accept applications from area agencies who seek transitional housing for families who would otherwise be homeless. In the event there .should be no eligible families on our waiting list, the Voucher will become part of the PHA's regular allocation. If a homeless applicant is referred to the PHA at any time after the Voucher has become part of the PHA's regular allocation, the PHA shall over issue a Voucher to accommodate this homeless family. Current program participants, including those serviced under portability in Richfield, now number 370. B. Plans for the Administration of Program Functions 1. Outreach to Families and Contact with Owners The Richfield HRA will adhere to the Equal Opportunity Housing Plan (EOHP) in its outreach efforts. Richfield HRA accepted applications for the Section 8 program in February, 1991, when 892 applications were accepted. Approximately .240 of those remain on the waiting list after a recent purge. A majority of those applying desire to live in -1- Richfield. Those applicants having a federal preference will be serviced first. Since a local preference is also applied for those living or working in Richfield, top priority is given those with both a federal and a local preference. Marketing initiatives are outlined in the SHOP, and it was obvious by the large number of applications received, that this effort appeared very successful.. One bedroom applications will be accepted in early 1994 as the number of applicants with a federal preference has diminished to a point where it would be logical to accept additional applications based on anticipated funding. Efforts to encourage owner participation are outlined in the EHOP. Personal contacts and general information sessions with owners by staff also encourage a good working relationship. 2. Completion of Applications Determination of Eligibility and Selection of Families Because of the abundance of eligible households on our waiting list, applications will be taken on a periodic basis rather than continuously. Advertisement of the Section 8 Program will be consistent with procedures outlined in the SHOP. A preapplication will be mailed to interested households for completion, along with relevant program information. Returned applications are dated and numbered in the order they are received to assure a first come - first served priority. This order will only be relevant after federal and local preferences are applied. Households will be qualified according to the following: A) Household Eligibility Family: Two or more persons sharing residency whose income and resources are available to meet the family's needs and who are either related by blood, marriage, or operation of law, or have evidenced a stable family relationship. Expectant mothers also qualify in this category. Elderly Family: A family whose head or spouse or whose sole member is at least sixty-two years of age, or a disabled person, or a handicapped person, and may include two or more elderly, disabled or handicapped persons living together, or one or more such persons living with another person who is determined to be essential to his or her care and well being. Displaced Person: A person displaced by governmental action or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized under federal disaster relief laws. This. also includes persons who have been forced to vacate due to domestic violence. -2- Handicapped Person: One who has a physical or mental impairment which is expected to be of long-continued and indefinite duration, substantially impeding his or her ability to live independently, and is of such a nature that such ability could be improved by more suitable housing conditions. Disabled Person: A person shall be considered disabled if such person is under a disability as defined in Section 223 of the Social Security Act (42 U.S.C. 423) or in Section 102 (b) (5) of the Developmental Disabilities Services and Facilities Construction Amendment of 1970 (42 U.S.C. 2691 (1)). Section 223 of the Social Security Act defines disability as: (A) inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months; or (B) in the case of an individual who has attained the age of 55 and is blind (within the meaning of "blindness" as defined in Section 416 (i) (1) of this title), inability by reason of such blindness to engage insubstantial gainful activity requiring skills or abilities comparable to those of any gainful activity in which he has previously engaged with some regularity and over a substantial period of time. Section 102(b)(5) of the Developmental Disabilities Services and Facilities Construction Amendments of 1970 defines disability as: A severe, chronic disability of a person which: - is attributable to a mental or physical impairment or combination of mental and physical impairments, - is manifested before the person attains age twenty- two, - is likely to continue indefinitely, - results in substantial functional limitations in three (i) self-care (ii) receptive and expressive language, (iii) learning, (iv) mobility, (v) self-direction, (vi) capacity for independent living, and (vii) economic self sufficiency; and - reflects the person's need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services which are of lifelong or extended duration and are individually planned and coordinated. Dependent: A member of the Family (excluding foster children) other than the family head or spouse, who is under 18 years of age or is a disabled or handicapped person, or full-time student. -3- .Full Time Student: One who is carrying a subject load that is considered full-time for day students under the standards and practices of the educational institution attended. An educational institution includes a vocational school with a diploma or certificate program, as well as an institution offering a college degree. B) Income Eligibility Income limits for eligibility are those amounts currently established by HUD for the Richfield HRA area of jurisdiction. 1. Items Considered As Income. Annual income is the anticipated total income from all sources received by the family head (even if temporarily absent) and by each additional family member, including all net income derived from assets, for the 12 month period following the effective date of initial determination or re- examination of income, exclusive of income that is temporary, non-recurring or sporadic as defined in paragraph 2, and exclusive of certain other types of income specified in paragraph 2, (h) of this section. a. The full amount before any payroll deductions of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; b. The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deduction in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation as provided in Internal Revenue Service Regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. c. Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as a deduction in determining net income. An allowance for depreciation is permitted only as authorized in paragraph B. of this section. Any withdrawal of cash or assets from an investment will be included in income, except to .the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has Net Family Assets in excess of $5,000, Annual Income shall include the greater of the actual income derived from all Net Family Assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. -4- d. The full amount of periodic payments received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts., including a lump-sum payment for the delayed start of a periodic payment; e. Payments in lieu of earnings, such as unemployment and disability compensation, workmen's compensation and severance pay; f. Welfare Assistance. If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the Welfare Assistance Agency in accordance with the actual cost of shelter and utilities, the amount of Welfare Assistance income to be included as income shall consist of 1) the amount of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus 2) the maximum amount which the Welfare Assistance Agency could in fact allow the Family for shelter and utilities. If the Family's Welfare Assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this item shall be the amount. resulting from one application of the percentage; g. .Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling; h. All regular pay, special pay and allowances of a member of the Armed Forces. i. Any earned income tax credit to the extent it exceeds income-tax liability. 2. Items Not Considered as Income a. Temporary, nonrecurring, or sporadic income (including gifts) ; b. Amounts received by the family which are specifically for or in reimbursement of the cost of medical expenses for any family member; c. Lump-sum additions to Family assets such as inheritances, insurance payments (including payments under health and accident insurance, and worker's compensation) -5- capital gains and settlement for personal or property losses excluding items listed in 1e. of this Section; d. Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the Government to a veteran for use in meeting the cost of tuition, books, fees and equipment. Student loans are not considered income. Any amounts of such scholarships, or payments to veterans, not used for the above purposes and are available for subsistence are to be included in income; e. The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; f. Income from employment of children, including foster children, under the age of 18 years; g. Payments received for the care of foster children; or any monies received as payment for the provision of child care] h. Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under the 1937 Act. The following types of income subject to such exclusion: 1) Relocation payments made under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. [42 U.S.C. 4636] 2) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977; [7 U.S.C. 2017 (b)] 3) Payments to Volunteers under the Domestic Volunteer Service Act of 1973; [42 U.S.C. 5044 (g), 5058] 4) Payments received under the Alaska Native Claims Settlement Act; [43 U.S.C. 1626 (a)] 5) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes; [25 U.S.C. 495 (e)] 6) Payments or allowances made under the Department of Health and Human Services Low Income Home Energy Assistance Program; [42 U.S.C. 8624 (f )] 7) Payments received under programs funded in whole or in part under the Job Training Partnership Act; [29 U.S.C. 1552 (b)] -6- 8) Income derived from the disposition of funds of the Grand River. Band of Ottawa Indians; [Pub. L. 94-540, 90 Stat. 2503-04]; 9) The first $2,000.00 of per capita shares received from judgement funds awarded by the Indian Claims Commission or the Court of Claims [25 U.S.C. 1407-08] or from funds held in trust for an Indian tribe by the Secretary of Interior. [25 U.S.C. 117 (b)-1407] 10. Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards under the Federal work-study program, or scholarships funded under the Bureau of Indian Affairs student Assistance programs, that are made available to cover the cost of tuition, fees, books, equipment, materials, supplies, transportation, and miscellaneous personal expenses of a student at an educational institution. [20 U.S.C. 1087 uu] 11. Payments received from programs funded under Title V of the Older American Act of 1965 [42 U.S.C. 3056 (F)]: (and) 12. Payments received after January 1, 1989 from the Agent Orange Settlement Fund or any other fund .established pursuant to the settlement in the In-Re-Agent Orange Product Liability litigation, M.D.L. No. 381 (E.D.N.Y.) 13. Entire amount of Earned Income Tax Credit. 14. Funeral or burial trust interest on an amount up to $2,000 or any amounts prepaid for burial costs/goods. 15. Any monies earned as an official census taker. C) Ineligible Households Households determined to be ineligible will receive a written notice of the determination and state that they may request an informal review of the decision within 30 days. This procedure will be conducted according to an informal review and hearing procedure provided as an attachment to this administrative plan. D) Household Selection The same waiting list will be used for both voucher and certificate selection. At the time of selection, applicants will be told what type of assistance is available. Applicants will not be penalized if they refuse one type of assistance to wait for another (i.e., Certificate versus voucher). If, however, the applicant refuses the second form of assistance when it is offered, their application will be taken off the waiting list. They are eligible to re-apply when applications are taken again. -7- Households selected to receive a certificate or voucher shall be notified immediately by letter stating that determination and requesting a response within ten days. Applicants who do not respond within ten days shall be notified by letter stating the cancellation of their application. The Richfield HRA will select applications for assistance based on current regulations for the Section 8 Existing Housing Certificate and Voucher Programs, established by the Department of Housing and Urban Development. Federal and local preferences will also apply. 10% of selected applicants may be those without a federal preference. E) Preference For New Applicants Eligible applicants are placed on the waiting list in the following order: 1) Those having one or more federal preference and a local preference, based on date and time of application. 2) Those having one or more federal preference only, based on date and time of application. 3) Those having a local preference only, based on date and time of application. 4) Those with no preference, based on date and time of application. 1. Federal preferences are: - involuntary displacement; an applicant who is or will be involuntarily displaced if the applicant has vacated or will have to vacate his or her housing unit as a result of one or more of the following actions: a) a disaster, such as a fire or flood, that results in the uninhabitability of an applicant's unit; b) activity carried on by an agency of the United States or by any State or local governmental body or agency in connection with code enforcement or a public improvement or development program; or c) action by a housing owner that results in an applicant's having to vacate his/her unit, where: 1. the reason for the owner's action is beyond an applicant's ability to control or prevent; 2. the action occurs despite an applicant's having met all previously imposed conditions of occupancy; and -8- 3. the action taken is other than a rent increase. d) An applicant is also involuntarily displaced if. 1. the applicant has vacated his/her housing unit as a result of actual or threatened physical violence directed against the applicant or one or more members of the applicant's family by a spouse or other member of the applicant's household; or 2. the applicant lives in a housing unit with such an individual engages in violence, as determined by the PHA in accordance with HUD's administrative instructions, have occurred recently or be of a continuing nature. 3. the applicant is forced to live with others for lack of sufficient funds to live independently. Substandard housing: A unit is substandard if it: a. is dilapidated and does not provide safe and adequate shelter, endangers the health, safety and well being of the family, has one or more critical defects, or a combination of intermediate defects in sufficient number or extent to require considerable repair or rebuilding. b. does not have operable indoor plumbing; c. does not have a usable flush toilet inside the unit for the exclusive use of the family; d. does not have a usable bathtub or shower inside the unit for the exclusive use of the family; e. does not have electricity, or has inadequate or unsafe electrical service; f. does not have a safe or adequate source of heat; g. should, but does not have a kitchen; or h. has been declared unfit for habitation by an agency or unit of government; i. is occupied by more than two persons for every living/ sleeping room. j. an applicant who is a "homeless family" is living in substandard housing. A "homeless family" includes any individual or family who: -9- i. lacks a fixed, regular, and adequate nighttime residence; and ii. has a primary nighttime residence that is: 1. a supervised publicly or privately operated shelter designed to provide temporary living accommodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill); 2. an institution that provides a temporary residence for individuals intended to be institutionalized; or 3. a public or private place not designed for, or ordinarily used as a regular sleeping accommodation for human beings. Rent burden; An applicant is considered to have a rent burden if the family or individual is paying more than 500 of their income for rent. For this purpose, rent is defined as: a. The actual amount due, calculated on a monthly basis, under a lease or occupancy agreement between a family and the family's current landlord; and b. in the case of utilities purchased directly by tenants from utility providers, i, the PHA's reasonable estimate of tenant-purchased utilities (except telephone) and other housing services that are normally included in rent; or ii. if the family chooses, the average monthly payments -that is actually made for these utilities and services for the most recent twelve month period or, if information is-not obtainable for the entire period, for an appropriate recent period. iii, in the case of an applicant who owns a manufactured home, but who rents the space upon which it is located, rent includes the monthly payment to amortize the purchase price of the home, as calculated in accordance with HUD's requirements. 2. Local preferences are: - applicants currently residing in the City of Richfield - applicants who are working or have been notified that they are hired to work in Richfield. Employment would have to begin within 30 .days of selection date for program participation. -10- 3. Verification of Income and Determination of Total Tenant Payment. Verifications are obtained through third party sources. The applicant is required to sign specific information release forms for each type of income, asset, and deduction. When third party verification is not possible, the participant file is documented as to why third party verification was not obtained and feasible documentation from the family is accepted (i.e., award letters from Social Security). Ineligible applicants are notified in writing by the Leased Housing Specialist or the Leased Housing Assistant. Total Tenant Payments are calculated by the Leased Housing Specialist or the Leased Housing Assistant. Relation to Other Functions. Applicants are advised in writing of their initial eligibility based on the information obtained on the preliminary application. At the time a Certificate or Voucher is available, complete third party verification is obtained and final determination of eligibility is made. All ineligible applicants are informed in writing. 4. Unit Size Standards The Certificate or Voucher of Family Participation shall specify the smallest number of bedrooms appropriate to the family, taking into consideration: a. the minimum commitment of housing assistance payments, b. avoidance of overcrowding, and c. compliance with applicable Housing Quality Standards. In issuing a Certificate or Voucher of Family Participation the Authority shall apply the following unit size standards as appropriate for the applicant family: UNIT SIZE STANDARDS Number and Composition of Family Members Number of Bedrooms 1 Person: 2 Persons: a. 2 Adults b. 1 parent 3 Persons: a. 2 adults b. 1 Parent same sex c. 1 Parent opposite and 1 child and 1 child and 2 children of and 2 children of sex 0 or 1 Bedroom Unit 1 Bedroom Unit 2 Bedroom Unit 2 Bedroom Unit 2 Bedroom Unit 2 Bedroom Unit -11- 4 Persons: a. 2 adults and 2 children of same sex 2 Bedroom Unit b. 1 Parent and 3 children, all of same sex 3 Bedroom Unit c. 1 Parent and 3 children, 2 of same sex, 1 of opposite sex 3 Bedroom Unit 5 Persons: a. 2 adults and 3 children of the same se x 3 Bedroom Unit b. 2 adults and 3 children, 2 of same sex, 1 of opposite 3 Bedroom Unit c. 1 Parent and 4 children, all of same s ex 3 Bedroom Unit d. 1 Parent and 4 children, 2 of each sex 3 Bedroom Unit e. 1 Parent and 4 children, 3 of one sex, 1 of opposite 3 Bedroom Unit 6 Persons: a. 2 adults and 4 children, all of the same sex 3 Bedroom Unit b. 2 adults and 4 children, 2 of each sex 3 Bedroom Unit c. 2 adults (or single parent) with 4 children 3 of same sex, 1 of opposite sex. 3 Bedroom Unit These standards are set forth solely for determining the bedroom size to be designated on the Certificate or Voucher of Family Participation. Exception to occupancy standards may be requested for medical reasons or other hardships and will be considered on a case by case basis. 5. Briefings and Issuance of Certificates and Vouchers We offer individual briefings to the extent possible. When not feasible, group briefings are restricted to 7 to 10 persons. Briefings are held at the Richfield City Hall. Evening briefings may be scheduled to accommodate working families. Packets containing the required HUD forms are used in briefing sessions. The Certificate and Voucher holders are informed of their responsibilities and obligations as participants in the Program. Portability of Housing Vouchers and Certificates is explained to the participants at the briefing session. No audio-visual aids are used. Printed materials are prepared in English. There is no guarantee that a given family will understand all of the facets of the Program. If applicants appear to lack comprehension of the Program, staff will devote additional time to answer their questions. -12- The determinations to extend Certificates and Vouchers are made by the Leased Housing Specialist or Leased Housing Assistant on a case by case basis and are largely determined by the amount of effort which a family appears to be expending in finding a unit. Families experiencing unusual difficulty locating a unit are put in contact with owners who are willing to participate in the Program. Families encountering apparent discrimination are informed of the appropriate resources for assistance in filing a complaint. They are also advised of owners willing to participate in the program. We do not involve other organizations in the briefing process, except when there are comprehension problems. The PHA now has some additional resource people when a language barrier exists. Social workers and relatives of participants with comprehension problems are encouraged to attend the briefings with the participants. 6. Housing Quality Standards and Inspections. When the family finds a unit suitable to their needs, they must submit a Request for Lease Approval, indicating they wish to lease the selected unit. Applicants are encouraged to submit this form by the 15th of the month prior to the desired beginning lease date. Before approving a lease, the Richfield HRA will inspect the unit for compliance with Housing Quality Standards (HQS). These standards are established in accordance with federal regulations and set forth in the HUD Inspection Form, for assurance of a decent, safe, and sanitary condition of the unit. If the unit fails inspection, the owner and the family will be informed in writing of the defects to be corrected in order for the unit to meet Housing Quality Standards. The Richfield HRA will have the final responsibility for deciding when the unit has been improved to meet minimum standards. 7. Relation to Other Functions A) Lease Approval Initial lease approval requests are received by the Leased Housing Specialist or Leased Housing Assistant. Required inspections are scheduled by the Leased Housing Specialist or Leased Housing Assistant, as appropriate. Most owners agree to use the suggested Richfield Lease. Families and owners are advised by mail, or by telephone, if necessary, should a unit fail an inspection. Differences in perception of unit adequacy are resolved between the parties, but the PHA does not allow a family to receive assistance for a unit which does not meet the Housing Quality Standards. -13- No HAP Contract is executed until the property is brought into compliance with the Housing Quality Standards. Reinspections are scheduled accordingly, at the request of the owner or the family, in order to clear the unit for the execution of an Assisted Lease and HAP Contract. B) Grounds for Denial or Termination of Assistance If the Richfield HRA determines that the lease cannot be approved, the owner and the participant shall be notified. The Richfield HRA may deny an applicant admission to participation in the program, may deny issuance of another certificate to a participant who wants to move to another dwelling unit and may decline to enter into a contract or to approve a lease, where requested by a participant,. if the applicant or participant: -currently owes rent or other amount to the Richfield HRA or to another Authority in connection with a Section 8 certificate or voucher or public housing assistance under the United States Housing Act of 1937; unless making regular payments under a Repayment Agreement. -has not reimbursed or is not making regular payments to the Richfield HRA or another Authority for any amounts paid to an Owner under a Contract for rent or other amounts awed by the household under the Lease or for a vacated unit; , -has committed any fraud in connection with any federal housing assistance program; -has violated any obligation under the Section 8 Existing Housing Program as stated in the certificate or voucher of Family Participation. -has breached a repayment agreement as described in federal regulations Section $82.210(c) and 887.403 (v). Applicant families or participants determined to be eligible or having been denied assistance shall be promptly notified in writing of the decision and may be given the opportunity for an informal review or hearing in accordance with the informal review and hearing procedure which is provided as an attachment to this administrative plan. C) Other Policies Regarding Tenancy Richfield HRA gives all program participants moving into Richfield a Tenant Responsibilities sheet stating the housing authority's policies regarding some of the more common problems that arise, income change policies, and tenant responsibilities. This material is carefully explained to be certain the tenant understands the HRA policies on these issues. 8. Payments to Owners. -14- Computations and an itemization of Total Tenant Payment and Housing Assistance Payments are computed and maintained by the Richfield HRA and monitored monthly prior to the ,issuance of Housing Assistance Payments to owners. Once the Total Tenant Payment is established, it shall remain in effect until the next scheduled recertification or until circumstances occur, e.g., as a change in family circumstances that warrant a special rent and/or income review. It is the responsibility of each participant to report a change in family composition, an increase or decrease in income, or a change in medical or child care expenses. If this occurs prior to the Family's next regular recertification, it could result in a change in Total Tenant Payment. Increases in family income should be reported and staff would determine if a change should be made based on the length of time before recertification. Changes resulting in an increase in the total tenant payment would not be made if less than 6 months remain before the annual re-exam date or if the family's gross monthly income did not increase by $100.00 or more per month. The total tenant payment with the certificate program is the family's contribution toward rent and utilities; 30~ of their monthly adjusted income. With the voucher program, the assistance is based on a set subsidy amount, a payment standard, determined by the bedroom size of the unit to be assisted. The actual amount of subsidy is the difference between the applicable payment standard and 30~ of the family's monthly adjusted income. For the voucher program, the PHA does not determine the reasonableness of rent on units where a voucher is being utilized, but would counsel the. family if the PHA deemed the unit to be unreasonably priced. A family receiving a voucher may choose to pay more than 300 of their adjusted income for housing costs. The amount of assistance provided to the family is related to an applicable payment standard. Anew payment standard would not be applied for interim changes during the term of the lease, but only at annual re-exam time. 9. Information & Assistance for Participating Families. Program participants are encouraged to contact the Richfield HRA if problems arise. While not functioning as a social service agency, the Richfield HRA does maintain an extensive resource file of the social service network and can readily make referrals. Program participants experiencing difficulties with owners regarding terms of the lease, are encouraged to contact the Richfield HRA. In these circumstances the Richfield HRA will act as liaison in an attempt to resolve the issue. 10. Review of Family Circumstances Rents Utilities and Housing Quality. A) Annual Recertification -15- An itemized listing of participants indicating the expiration date of contracts will be used to determine when a recertification is necessary. This process will begin at least 90 days prior to the expiration of the lease and contract. The annual recertification process will include a re-evaluation of income, family circumstances and composition, as well as a re- inspection of the unit for continued compliance with housing quality standards. When a household remains in Richfield and relocates to a different unit, a new inspection is required. Computation of the new tenant rent will include the application of the current utility allowance schedule as approved by the Richfield HRA. If family circumstances are such that it is not feasible to anticipate a level of income over a twelve-month period, the income anticipated for a shorter period may be annualized, subject to a redetermination at the end of the .shorter period. The recertification procedure will include notification to the family at least 90 days prior to lease expiration, to allow ample time for the verification process and/or relocation if the family wishes to move to a new unit. An interview will be scheduled to assess any changes in family circumstances, size, or income, and to complete the Recertification of Tenant Eligibility form, using the current utility allowance schedule and proper Total Tenant Payment calculations. Documents will then be executed with the family and owner, and housing assistance payments will be monitored by the Richfield HRA. B) Interim Recertification Interim income reviews will be conducted when a family reports any changes in income, family size or circumstances, or a change in regulations occurs during the term of the Lease that requires a re-exam. Families are to be notified in writing of any change in rent resulting from a rent review. Interim reviews may also be applicable for zero incomes or whenever the HRA decides a review is necessary. An interim rent review resulting in a decrease in family payments will be effective the first of the following month. An increase in family payment will require a reasonable notice to the family of at least one month prior to the effective date. If, at the time of recertification or a special income or rent review, the amount payable by the family toward the gross rent equals or exceeds the gross rent for the unit it occupies, their assistance in that unit shall be terminated. This termination shall not affect the family's other rights under its lease nor shall such termination preclude resumption of payments as a result of subsequent changes in income, rents, or other relevant circumstances during the term of the recertification period. If the family has an amount payable toward the gross rent which is -16- equal to or exceeds the gross rent, at the time of their regular recertification, they may request the Richfield HRA to retain their voucher for one year in case of subsequent changes which could result in them again becoming eligible. C) Affordability Adjustments to the Payment Standard for Vouchers To assure the continued affordability of housing by families participating on the voucher program, the Richfield HRA can choose to increase the amount of the Payment Standard. This is called an affordability adjustment and is similar to an annual rent adjustment made under the certificate program and is made to offset increases in housing costs. This adjustment is made in the amount of the applicable payment standard and can be initiated in accordance with HUD regulations. The Authority may decide to establish an affordability adjustment that will be used to determine the HAP payments for all participating families, or for certain categories of families by the unit size. Before establishing an affordability adjustment, the Richfield HRA shall, during a regular scheduled meeting, review and consider the impact of these adjustments on the number of families that can be assisted. 11. Termination and Family Moves A) Termination Obligations of the participant under the program will be clearly reviewed with the household at the certificate or voucher briefing and included as an insert in the information packet and as a term of the Lease Agreement and Addendum to Lease. The re- certification process is therefore started at least 60 days prior to the lease expiration date to allow for a proper notice to be given in the event of a move, and verification to be completed. Grounds for termination of participation are clearly spelled out in the Executed Lease Agreement and the Addendum to Lease. An owner may evict a participant only by instituting a court action and must notify the Richfield HRA in writing concurrent with the notice to the household. When a Housing Assistance Payments Contract is terminated and a participant does not continue on the program, a new applicant will be selected for participation according to this Administrative Plan. A Participant must continue to occupy its approved unit for the initial year of the lease term, unless the owner and Participant agree to a mutual termination of the Lease. The Participant may terminate the lease without cause at any time after the first year of the term of the lease, on not more than -17- 60 days written notice by the household to the owner, with a copy to the Richfield HRA. If it is determined that a participant has intentionally misrepresented to the HRA information regarding income, assets, deductions and/or family composition and/or initiates or participates in bribes, or side payments, the HRA will take the appropriate action to stop any overpayment of benefits occurring due to the misrepresentation and will terminate the family's assistance. If such action is taken, the participant will be notified in writing. If the family has received a benefit to which it was not entitled, the value of the benefit will be determined and the family will be required to repay the full amount within a time limit determined by the HRA or court system. Future eligibility for assistance will be contingent upon full repayment. The tenant has the right to request a hearing within 10 days of notification of the HRA's determination according to the grievance policy procedures. If it is determined that the participant has unintentionally supplied erroneous and/or has omitted information regarding income, assets, deductions, and/or family composition, the HRA will take the appropriate action to correct the error or omission. If the error or omission has resulted in the family receiving a benefit to which it was not entitled, the value of the benefit will be determined and the family will be required to repay the full amount within a reasonable period of time. If the error or omission affects the size of the unit for which the family is eligible, the HRA will require the family to move to the appropriate size unit at the time of their next recertification. B) Owner Claims Owners seeking reimbursement from the Richfield HRA for loss of rent or damages will complete the applicable parts of the Section 8 Existing Housing Assistance Payments Program Owner claim form, along with supporting documentation. The Richfield HRA will then review all information regarding the claim for accuracy and completeness, taking into account the proper notice requirements specified in the lease and determine the amount, if any, to which the owner is entitled. This process will be conducted according to recommended procedures in the Administrative Practices Handbook for the Section 8 Existing Housing Program and in compliance with current program regulations. Under the certificate program, claims can be paid for actual amounts due the landlord for damages and unpaid rent, up to an amount equal to two months' rent, minus the security deposit collected or allowed by program regulations. The amount of the deposit should not exceed the greater of the amount of the Total Tenant Payment or $50. -18- For a vacancy loss claim with the certificate program, the owner retains the housing assistance payment for the month that the unit is vacated, plus up to 80% of the total rent for one additional month if the unit is still vacant, minus the amount of the security deposit the owner could have collected from the household. Under the voucher program, claims can be paid for actual amounts due the owner for damages and unpaid rent up to one month's rent, minus the security deposit the owner could collect or actually collected, whichever is greater. In the case of vacancy loss, the owner can retain the housing assistance payment only for the month in which the vacancy occurs. No additional payment will be made. Richfield HRA will not be held responsible for tenants share of unpaid rent beyond a two month period if the owner has not filed for eviction. C) Housing Voucher Portability. The portability of housing vouchers and certificates as described herein refers to the opportunity for program participants to move outside the HRA's jurisdiction, while continuing to receive assistance. When a Richfield voucher or certificate holder moves from Richfield to another jurisdiction, that participant may not move from that jurisdiction in less than a twelve month period, unless special circumstances occur, such as domestic violence, job transfer, etc. Special approval must be given on a case by case basis. The Richfield HRA will restrict the number of voucher families eligible to move out of state under these portability guidelines to not more than 15 percent of the voucher units under lease. DEFINITIONS: The INITIAL PHA (Public Housing Agency) is the PHA administering a Section 8 Program with a program participant who desires to move or who has moved to another jurisdiction. The RECEIVING PHA is the PHA administering a Section 8 Certificate and/or Voucher Program that accepts a voucher or certificate holder from another PHA. The ADMINISTRATIVE FEE is a fee earned by the PHA for each unit under contract with an owner each month. This fee is used to cover a PHA's ongoing program administrative expenses. The PRELIMINARY FEE is a one-time allowance per unit and is based on a PHA's actual costs in starting up a new allocation of units . -19- The HARD TO HOUSE FEE is a fee earned by the PHA to cover the cost of special assistance given every time a family with three or more minors is enabled to find suitable housing. The APPLICABLE PAYMENT STANDARD is an amount used to calculate the monthly housing assistance payment for voucher. holders. The following procedures will be used when the Richfield HRA is the Initial PHA: 1) A family is eligible for portability if it holds a current housing voucher or certificate. 2) The family eligible for portability will notify the PHA. of its desire to move to another jurisdiction. The PHA will then contact the new jurisdiction to determine whether they administer a Section 8 program. 3) If the new jurisdiction does not administer the applicable program, they may authorize the initial PHA to administer in their jurisdiction. 4) If the PHA in the new jurisdiction (The Receiving PHA) operates a Section 8 program, it shall accept the family and provide services to the family as if they were part of its own program. The Initial PHA will: a) Notify the Receiving PHA to expect the family; b) Verify to the Receiving PHA that the family met the income eligibility requirement for admission to the Initial PHA's program; and c) Issue the family a housing voucher or certificate and state the date by which a Request for Lease Approval must be submitted to the Receiving PHA. 5) When the family moves out of the Initial PHA's jurisdiction, the Initial PHA retains funding for the voucher under its Annual Contributions Contract (ACC). 6) The Initial PHA shall reimburse the Receiving PHA for the full amount of the housing assistance payment made by the Receiving PHA on behalf of the family. For vouchers, the amount of housing assistance shall be based on the applicable Payment Standard in effect at the Receiving PHA. If the Receiving PHA elects to provide assistance to the family utilizing funding under its own certificate or voucher program, the Initial PHA is not required to reimburse the Receiving PHA. 7) The Initial PHA shall reimburse the Receiving PHA an amount equal to 80% of the Initial PHA's administrative fee for each unit month that the family is in the Receiving PHA's jurisdiction. -20- 8) The Initial PHA is eligible to receive a preliminary fee for any new unit, limited by cost-justified expenses. 9) If the portable family leaves the program, or if the Receiving PHA elects to provide assistance to the family with its own voucher or certificate program, the Initial PHA is free to use the funding needed to support the portable family for other families. The following procedures will be used when the Richfield HRA is the Receiving PHA: 1) A Receiving PHA that administers a Section 8 program may not limit the number of vouchers or certificates issued to portable families coming into their jurisdiction. 2) The Receiving PHA shall not deny the family the use of a voucher or certificate on the grounds that the family income exceeds the income limits .for eligibility in the Receiving PHA's jurisdiction. 3) The Receiving PHA will promptly notify the Initial PHA if the family does not submit a Request for Lease Approval by the date specified by the Initial PHA. 4) The Receiving PHA shall recertify family income initially for the purpose of determining housing assistance payments. All the functions normally associated with providing assistance to a family on its own program will be performed, including lease approval, annual recertification and unit inspection. 5) The Receiving PHA is responsible for payments it makes on behalf of the family to the owner in its jurisdiction. The Receiving PHA shall either bill the Initial PHA for the Housing Assistance Program (HAP) payments it makes on behalf of the family, or provide rent assistance to the family under its own certificate or voucher program. Richfield HRA will bill initial PHA's in order to reserve all available vouchers or certificates under its own program to accommodate the waiting list. 6) The Receiving PHA may bill the Initial PHA for an amount equal to 80% of the Initial PHA's administrative fee, unless it elects to provide assistance under its own certificate or voucher program. 7) The Receiving PHA also may bill the Initial PHA for a preliminary fee for cost justified expenses each time it accepts a portable family into its jurisdiction. 8) If the Receiving PHA accepts a portable voucher family from another jurisdiction and chooses to assist them under their own program, it is eligible to receive the Preliminary Fee from its own housing voucher fee reserve account. -21- 9) If the Receiving PHA issues a portable voucher family a certificate, they may claim the Preliminary Fee at year end settlement against the ACC project reserve for the certificate program. 10) If the family wishes to move out of the jurisdiction of the Receiving PHA, or ceases to be a participant on the program, the receiving PHA will promptly notify the Initial PHA. 11) If the family moves out of the jurisdiction in which the Receiving PHA has been billing the Initial PHA, the PHA in the new jurisdiction to which the family moves becomes the Receiving PHA. The first Receiving PHA is no longer involved, because the Initial PHA retains funding authority for the housing voucher or certificate. 12) If a family moves from a jurisdiction in which the Receiving PHA had issued assistance under its own program, this Receiving PHA becomes the new Initial PHA. The PHA in the new jurisdiction to which the family moves becomes the Receiving PHA. The Initial PHA that originally selected the family is no longer involved. 13) When Richfield HRA is a receiving PHA, the program participant will be accepted only if the Initial PHA will reimburse the Receiving PHA on a monthly basis for administrative fees and housing assistance payments. 12. Complaints and Appeals Upon notification by the household that the owner is not complying with the Lease and Contract provisions, the Richfield HRA will talk to the owner of the unit in an attempt to resolve the problem. If the owner takes no action and the Richfield HRA determines that a breach of the Contract has occurred, the Richfield HRA may exercise any of its rights or remedies under the Contract. The Richfield HRA will notify the owner in writing of such determination and include a brief statement of the reason(s) for the determination and may require the owner to take corrective action by a time prescribed in the notice. The Richfield HRA's rights and remedies under the Contract include recovery of overpayments, termination or reduction of housing assistance payments,-and termination of the contract. Though most tenant-owner conflicts are resolved between those entities, if the owner presents complaints regarding a participating household, the Richfield HRA may make a reasonable attempt to resolve the problem. If no resolution is feasible, the owner may elect to evict the household in accordance with procedures spelled aut in the Lease and current program regulations. If the Richfield HRA decides to terminate Housing -22- Assistance Payments on behalf of a participating family, an opportunity for an informal hearing shall be granted according to current regulations and as set forth in the informal review~~~and hearing procedure. 13. Informal Review and Hearing Procedures If the Richfield HRA decides to terminate Housing Assistance Payments on behalf of a participating family, an opportunity for an informal hearing shall be granted according to current regulations and as set forth in the Authority's Informal Hearing Procedures, (copy attached to this Administrative Plan). The Informal Hearing Procedures will also offer informal hearings in the matter of Owner/Tenant disputes with regard to damage claims and/or vacancy loss. 14. Monitoring Program .Performance The lease-up of the Certificates and Vouchers will be conducted according to the Lease-up schedule, which accompanies the budget information. This schedule will be continually monitored to assure the optimal use of our unit allocation. Requests for certificate and voucher allocations will be based on the current utilization of units and the anticipated certificate and voucher turnover. 15. Review and Amendment Policies The foregoing policies are subject to review and amendment by the Housing and Redevelopment Authority in and for the City of Richfield. C) Budgeting and Staff Needs Comments concerning budget and staffing needs follow: -The Housing Supervisor and Leased Housing Specialist have responsibilities, including but not limited to: -budget and requisition information -preparation and issuance of HAP checks -auditing of accounts -draft HUD reports and internal program monitoring reports -HQS Inspections are provided for each Voucher or certificate client as required by HUD. These are conducted by the Leased Housing Assistant. -The Leased Housing Specialist, Leased Housing Assistant, and Community Development Technician are responsible for outreach, determination of eligibility, maintaining the waiting list, verification of income, determining contribution, briefing families, issuing vouchers or certificates and finalizing lease and HAP contracts. -23- The HRA board has the following policies: - Operating Reserve funds will be spent on eligible housing activities in accordance with federal regulation. - Projected administrative fees and the Operating Reserve will cover all projected costs of program administration. - A positive balance (a threshold greater than $0) will be maintained in the Operating Reserve fund to ensure there are sufficient funds for ongoing administrative costs. This balance may be spent on eligible housing activities in accordance with the HRA approved budget and applicable laws without further prior approval of the HRA. -24- INFORMAL REVIEW AND HEARING PROCEDURE Housing and Redevelopment Authority in and for the City of Richfield Section $ Existing Rent Assistance Certificate and Voucher Program The purpose of this review procedure is to provide an Applicant or Participant on the Richfield Housing and Redevelopment Authority (HRA) Section 8 Existing Housing Assistance Program an opportunity for an informal review or hearing of a decision by the HRA to deny, reduce, or terminate assistance. It is not the purpose of this review to resolve disputes or problems which occur between applicants, participants, and owners, nor to review discretionary administrative determinations by the HRA. Rather, the review process is established to determine whether an HRA decision is in accordance with applicable laws, HUD regulations, and HRA administrative standards. Informal Review for Applicants: 1) The HRA must give an Applicant for participation in the HRA's Program a prompt written notice of a decision denying assistance, including a decision which denied a listing on the HRA's waiting list, issuance of a Voucher or Certificate, or participation in the Program. The notice shall also state that the applicant may request in writing, an informal review of the decision within 30 days. 2) The informal review will be held at the HRA offices and conducted by the Hearing Officer designated by the HRA Administrator. This would be someone other than the individual that originally made or approved the decision. 3) At the informal review, the Applicant will be given the opportunity to present written or oral objections to the HRA decision. Every attempt will be made at the time of the informal review to resolve the dispute. 4) Following the review, the HRA will notify the applicant in writing within 30 days, of the final HRA decision, including a brief statement of the reason(s) for the final decision. The HRA is not required to provide an Applicant with an informal review in the following cases: -To consider discretionary administrative determinations by the HRA or to consider general policy issues or class grievances; -To review the HRA's determination of the number of bedrooms entered on the Certificate or Voucher in accordance with the occupancy standards established by the HRA; -25- -To review the HRA's determination .that a unit does not comply with the Housing Quality Standards or the HRA's determination to not approve the Lease for the unit; -To review the HRA's decision to disapprove a request for an extension on an Applicant's certificate or voucher. Informal Hearing for Participants: 1) The HRA must give a Participant in the HRA's Section 8 Program a prompt written notice of a decision affecting their status on the Program and shall state the reasons for-the decision. If the Participant does not agree with the decision, an informal hearing may be requested in writing, within 30 days. An opportunity for a hearing will be granted in the following cases only: -A determination of the amount of the Housing .Assistance Payment -A decision to deny or terminate assistance on behalf of the Participant; -A decision to reduce the unit size. allowed for the participant family or to grant an exception from the standards; -A determination of the number of bedrooms allowed for a participant family that wishes to move to another .unit. -When there is a damage claim dispute. 2) The informal hearing will be conducted by a Hearing Officer designated by the HRA Administrator. This would be someone other than the individual that originally made or approved the decision. 3) The participant may be represented by a lawyer or other representative at its own expense. 4) At~the informal hearing, the HRA and the Participant will be given the opportunity to present evidence and may question any witnesses. 5) Following the hearing, the HRA will notify the Participant in writing within 30 days, of the final decision, including a brief statement of the reason(s) for the decision. The HRA is not required to provide the Participant with an informal hearing in the following cases: -To review discretionary administrative determinations by the HRA or to consider general policy issues or class grievances; -To review the HRA's determination that a unit does not comply with Housing Quality Standards due to the Owner's lack of maintenance, or because of an increase in family size or change in family composition; -To review an HRA decision to exercise any remedy against the Owner under an outstanding Contract; -To review an HRA decision to not approve a request for an -26- extension on a Voucher for a Participant that wants to move to another unit with continued Program participation. 27- RICHFIELD HOUSING & REDEVELOPMENT AUTHORITY POLICIES GOVERNING INFORMAL HEARING PROCEDURES I. INFORMAL HEARING PROCEDURES A. DEFINITIONS 1. Participant. "Participant" means. a person who receives Section 8 rent assistance from Richfield HRA. 2. Owner. "Owner" means any person or entity who has entered into a Housing Assistance Payments Contract with the Richfield HRA for the purpose of leasing a rental unit to a participant. 3. Hearing Officer. "Hearing Officer" means a person appointed by the Richfield HRA to hear and review those decisions or determinations of the Richfield HRA which are subject to these hearing procedures. (See Section I-B) The Hearing Officer shall not be a person directly involved in the administration of the Section 8 Program. 4. Informal Hearing. "Informal Hearing" means a hearing conducted by a Hearing Officer to determine whether a Richfield HRA decision to deny, modify, or terminate a Participant's or Owner's benefits or rights is in accordance with law, HUD regulations and Richfield HRA Policies. B. Informal Hearing Requirements 1. The Richfield HRA shall give a Participant an opportunity for an Informal Hearing to consider whether the Richfield HRA's decisions or deter- minations relating to the Participant are in accordance with law, HUD regulations, and the Richfield HRA policies and procedures. A participant shall be offered an Informal Hearing to challenge the following decisions or determinations of the Richfield HRA: (a) A determination of the amount of the Total Tenant Payment or Tenant Rent (not including determination of the Richfield HRA's Housing Allowances for Tenant-Furnished Utilities and Other Services); -28- (b) A decision to deny or terminate assistance. on behalf of the Participant; or .NOTE: If the Richfield HRA has decided to terminate housing assistance payments on behalf of a Participant under an outstanding Housing Assistance Payments Contract, but is required to provide an Informal Hearing on the decision, the Participant will be given the opportunity for an Informal Hearing before termination of payments. (c) A determination of a Participant's responsibility for or the amount of an Owner's claim for damages, unpaid rent or vacancy loss. 2. Richfield HRA shall give an Owner an opportunity for an Informal Hearing to consider whether the Richfield HRA's decisions or determinations relating to the Owner are in accordance with law,-.HUD regulations and Richfield HRA policies and procedures. An Owner shall be afforded an Informal Hearing to challenge Richfield HRA's decisions or determinations relating to payment of an Owner's claim to unpaid rent or damages. 3. Informal Hearings will not be offered in the following cases: (a) To consider general policy issues or to review discretionary administrative determinations by Richfield HRA; or (b) To review the Richfield HRA's determination that a unit does not comply with the Housing Quality Standards, that the Owner has failed to maintain or operate a contract unit to provide decent, safe and sanitary housing in accordance with the Housing Quality Standards (including all services, maintenance, and utilities required under the lease,) or that the contract unit is not decent, safe, and sanitary due to an increase in family-size or change in family composition; or (c) To review a decision by the Richfield HRA to exercise any remedy against the -29- Owner under an outstanding Housing Assistance Payments Contract, including the termination of housing assistance payments to the Owner; or (d) To review the Richfield HRA decision not to approve a Participant's request for an extension of the term of the Voucher issued to a Participant who wants to move to another dwelling unit -with continued Richfield HRA Section 8 assistance. C. D. Request for Hearing 1. Any Participant or Owner for an Informal Hearing writing to the Richfield an Informal Hearing must time limits specified in the Participant or Owner HRA. may make a request either orally or in HRA. Requests for be made within the any notice sent to by the Richfield 2. Within ten (10) working days after receipt of a valid and, timely Informal Hearing request, the Richfield HRA will mail a written notice of the date, time, and place of the Informal Hearing to the party requesting the Informal Hearing, and to any other parties to the dispute. A copy of these Informal Hearing Procedures will be enclosed with the notice. The Informal Hearing date may be modified by mutual agreement of the parties. Special Requirements for Unpaid Rent or Damage Claims 1. A Participant shall have ten (10) days from notification of an Owner's claim for unpaid rent or damages to respond to that claim. Once the Richfield HRA has made an initial determination of an Owner's claim, the Participant shall have ten (10) days from notification of such determination to request an Informal Hearing. Each of these ten day periods could be extended for seven (7) additional days for good cause as determined by the Richfield HRA. 2. An Owner or his/her representative making a claim for unpaid rent or damages must be present at any Informal Hearing held to resolve a dispute involving that claim in -30- order to be eligible for payment on the claim by the Richfield HRA. 3. The Richfield HRA will not pay an Owner on a disputed claim for unpaid rent or damages until an Informal Hearing (if requested by the Participant or Owner) has been held and a decision issued by the Hearing Officer. 4. If the Richfield HRA determines that the Participant owes money to the Richfield HRA for unpaid rent or damages, the Participant will be asked to execute a repayment agreement. Failure of the Participant to execute a repayment agreement or_to make payments under an executed repayment agreement will be cause for termination of assistance by the Richfield HRA. Such termination, or threat of termination, would not be executed without a minimum of sixty day notice to the Participant stating date that assistance will cease because of the Participant's failure to execute a rent payment agreement. The Participant could be reinstated in the Section 8 Program if the rent payment agreement is executed during that 60 day period. E. Hearing Officer 1. The Hearing Officer shall preside at the hearing. The Hearing Officer shall have all powers necessary and reasonable to conduct a fair and orderly hearing, including but not limited to: (a) The power to make rulings on the admissibility of evidence. All relevant evidence, including reliable hearsay, is admissible. Evidence that is irrelevant to the matters at issue or unduly repetitious may be excluded. (b) The power to exclude witnesses from the hearing room so that they cannot hear testimony of other witnesses may not be excluded. (c) The power to ask questions at any time provided that parties to the hearing may not be excluded. 2. The Hearing Officer shall not be a person .directly involved in the administration of the Section 8 Program. -31- 3. The Hearing Officer The Hearing Officer participation in the the Hearing Officer disqualified for any F. G. The Informal Hearina shall be impartial. shall withdraw from hearing at any time if deems himself/herself reason. 1. All parties may present and examine evidence, offer rebuttal testimony, present an argument with respect to the issues, and cross examine witnesses. Parties shall have the right to retain and be represented by counsel at their own expense. 2. Any party may be a witness or may present witnesses on his or her behalf. 3. The Hearing Officer will determine the order of presentation of witnesses and evidence. Ordinarily, the Richfield HRA will be asked to proceed with its presentation of evidence first. Decision of the Hearing Officer 1. The Hearing Officer shall prepare a written decision stating briefly the reasons for the decision. Factual determinations shall be based solely on the evidence presented at the hearing. 2. The Hearing Officer shall give the written decision to the Richfield HRA Leased Housing Specialist (or his or her designee) within fourteen days of the hearing. The Leased Housing Specialist, or designee, shall promptly forward a copy to each of the parties or their counsel and take whatever action is necessary to ensure compliance with the Hearing Officer's decision. 3. The hearing decision shall be binding for Richfield HRA unless: (a) The decision concerns matters for which Richfield HRA is not required to provide the opportunity for a hearing pursuant to 24 CFR 882.216 (b). (b) The decision is contrary to HUD regulations or otherwise contrary to federal, state, or local law. -32- If Richfield HRA determines it is not bound by a hearing decision, the Richfield HRA will promptly notify the parties to the hearing of that determination and the reasons for it. 4. The decision of the Hearing Officer shall not constitute a waiver of nor affect in any manner the right of the parties to seek a judicial remedy for the dispute in a court of law, except as that right may be limited by Paragraph 3 above. AdminPlan -33- HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 54 Agenda December 20, 1993 Issue Statement: Receive "Family Needs," a report regarding responses to a Section 8 Program tenant survey. Background• Jeanne Massey, Director of Planning for the South Hennepin Regional Planning Agency (SHeRPA), will present-the report. In cooperation with HUD, the Richfield Community Human Services Planning Council, the Richfield HRA, the Bloomington HRA, and Bloomington Public Health Services, SHeRPA was requested to conduct a study of Section 8 client needs in Richfield and Bloomington. The short term objective was to assist staff to better identify needs and ways to efficiently link program clients with community resources. The long term objective, through a HUD program entitled "Family Self Sufficiency," is to coordinate programs that help clients to become more self sufficient. Improved coordination of employment, transportation, education, and day care opportunities, over perhaps a five year period may help to reduce the client's need for housing subsidy. Ms. Massey will explain the results, the methodology for the study, and discuss questions the HRA may have. Recommended Motion: 1. Receive and discuss the report. 2. Authorize staff to explore various family self sufficiency program administration models and return to the HRA with a report and program recommendation. Basis of Recommendation: 1. The report has been completed and is ready for distribution. 2. A review of the report will help the HRA to better understand .client needs and possible responses. 3. A variety of program administration models exist for the HRA to evaluate in considering the role that HUD's family self sufficiency program can-have for Richfield's Section 8 clients. 4. HUD requires HRA's to initiate family self sufficiency programs with new monies received after October 1, 1992. (Richfield has not yet received any "new" monies.) Alternative Recommendation: Defer discussion of the report to a future time. Discussion/Decision Mode: _ Staff will return to the HRA before .July 1, 1994 with program recommendations. Respectfully submitted, James Prosser Execu a Director JDP•ds FAMILY NEEDS. L.~VYY 11~1~V11IlG IN BLOOMINGTON AND RICHFIELD DECEMBER 1993 A ,; .. ~:;:.,~. •;xc '<. zz:r ~ ABOUT THE SURVEY This report is a presentation of the findings of a survey taken in the summer of 1993. The survey was requested and funded by the Housing and Redevelopment Authorities of the Cities of Richfield and Bloomington and the Bloomington Public Health Department. The South Hennepin Regional Planning Agency, a planning and research organization serving the communities of Richfield and Bloomington, coordinated the administration of the survey and prepared the present report. For copies of the report, please contact any of the following organizations: Richfield Housing and Redevelopment Authority 6700 Portland Avenue Richfield, MN 55423 861-9700 Bloomington Housing and Redevelopment Authority 2215 W. Old Shakopee Rd. Bloomington, MN 55431 881-5811 Bloomington Public Health 1900 W. Old Shakopee Rd Bloomington, MN 55431 887-9603 South Hennepin Regional Planning Agency 5701 Normandale Rd. Rm. 302 Edina, MN 55424 922-5999 TABLE OF CONTENTS Executive Summary ............................................................................................................. 1 Introduction ............................................................................................................................ 5 Purpose and goals Definitions Methodology Response rate Demographic Profile of the Families ...................................................................................... 6 Race and ethnicity Household types Number and age of children Economic Profile of the Families ........................................................................................... 7 Sources of income Employment status Occupational makeup Educational attainment Job training Community Values And Involvement ..................................................................................... 9 What the families value about their community How long have the families lived in their communities Involvement in the community Barriers That Prevent Families From Economic Advancement ............................................... 11 Family Needs .......................................................................................................................... 13 Basic needs Transportation needs Child care needs Family-related needs Health care needs Social Supports And Services Families Rely On .................................................................... 17 Where families turn to first for help Use of social services TABLE OF FIGURES Figure 1 Survey response rates ......................................................................................... 5 Figure 2 Families by household status ............................................................................... 6 Figure 3 Age of parent by number of children in family ...................................................... 6 Figure 4 Sources of income ............................................................................................... 7 Figure 5 Labor Force participation and unemployment ...................................................... 7 Figure 6 Breakdown of Employed householders by occupation .......................................... 8 Figure 7 Breakdown of householders by educational attainment level ................................ 8 Figure 8 Community conditions that are "very important" to families .................................. 10 Figure 9 Family residency patterns .................................................................................... 10 Figure 10 Percentage of householders for whom barrier is a big obstacle ........................... 12 Figure 11 Breakdown of big obstacles by employment status of householders ..................... 12 Figure 12 How often families go without basic necessities ................................................... 13 Figure 13 Percentage of families without a car .................................................................... 13 Figure 14 Families with children in child care ....................................................................... 14 Figure 15 Unmet child care needs ....................................................................................... 14 Figure 16 Percentage of families dealing with family-related problems ................................ 15 Figure 17 Percentage of families asking for information about, or assistance with, family-related problems ....................................................................................... 15 Figure 18 Health care insurance .......................................................................................... 16 Figure 19 Where families turn to first for help ...................................................................... 17 Figure 20 Percentage of families using emergency services ............................................... 19 Figure 21 Percentage of families using family services ........................................................ 19 Figure 22 Where families find out about services ................................................................ 19 EXECUTIVE SUMMARY In the summer of 1993, a survey was taken among low-income families in Richfield and Bloomington. All of the families were participants in the Section 8 Hous- ing Assistance program administered by the Housing and Redevelopment Authorities of Richfield and Bloomington. A total of 378 families were surveyed and 208 (55 percent) responded. Most of the families had children and were headed by single females. The survey was taken to gain a better understanding of the following: • the barriers families face in becoming economically self-sufficient; • the economic, social and health needs of the families; • the community supports and social services families rely on for assistance; and • any differences between white and minority families in terms of barriers, needs and community supports. The surveyed population was stratified by race in or- der to determine if there were significant differences between white and minority families. Thirty-six percent of the survey respondents were minority. The information resulting from this survey will be used by the Housing and Redevelopment Authorities and other service providers to more effectively link low- income families with services in Richfield and Bloomington. The major findings and conclusions are summarized below. BARRIERS TO ECONOMIC ADVANCEMENT AND SELF-SUFFICIENCY Income and Employment Profile of the Families A family receiving housing assistance is, by definition, low-income. The findings showed that a majority (66 percent of white families and 82 percent of minority families) depend on economic assistance as a primary income source. Most families are making efforts to become self- sufficient (i.e., not needing income supports). Nearly 80 percent of householders were employed, looking for a job, going to school or getting job training. Fifty- six percent of white families and 43 percent of minority families earned a wage or a salary. Despite these efforts, the barriers to advancement and self-sufficiency are great, and the combination of in- come, health care and housing assistance appears to provide a secure and critical safety net for single parent families, two thirds of whom do not receive child support. The barriers to self-sufficiency are illustrated by the fact that even though nearly 60 percent of the householders were in the labor force, fewer than half of those who were white and a quarter of those who were minority were employed full-time. Twenty-eight percent of those who were white and 47 percent of those who were mi- nority were unemployed and looking for work. Further- more, most heads of households who were employed had jobs that were in low-wage occupations. Barriers to Advancement and Self-Sufficiency The challenge of becoming self-sufficient is under- scored by a combination of barriers that seem to limit a single parent family's ability to obtain and retain a job with an income sufficient to support a family. Educational attainment. Many of the householders are not equipped with the education and job skills usu- ally required to guarantee a job with a wage sufficient to support a family. Forty-five percent of the surveyed families had a high school degree or less, nearly 34 percent had some col- lege and 22 percent had a college degree. The share of surveyed families with a high school degree or less is about the same as the average in the Metro Area. However, the college graduation rate (22 percent) among the surveyed families is much lower than the average (37 percent) in the Metro Area. This suggests that the surveyed population is as likely as the general population to go onto a postsecondary education, but it is much less likely to finish school and to get a degree. In today's job market, a postsecondary education has become a prerequisite for most occupations that pay wages sufficient to support a family. Thus, single parent families without child support, who must rely on only one income, are more likely to be disadvantaged than the general population by the lack of a postsecondary education. Presence of children. Caring for children - especial- ly young children -poses difficulties for families need- ing or wanting to work. The survey showed that families who had young children, or two or more chil- dren, were less likely to be employed. Barriers families report as "big obstacles" to ad- vancement. Over half of the families indicated that ~~ ,~ they faced at least one big obstacle that prevented them from economic advancement. Families indi- cated that the lack of affordable child care, transporta- tion and skills were the biggest obstacles preventing or discouraging them from advancing themselves (that is, getting a better job or going to school to get better trained). These barriers differ among the families, however, de- pending on the employment status of the head of household. Such differences are important to highlight because they imply that different strategies may need to be pursued in assisting low-income families to be- come self-sufficient. Among employed householders, the biggest barriers were lack of self confidence and lack of time. Child care, although a big obstacle for some of the employed householder, was not the most prevalent obstacle. This may show that employed householders are for the most part finding adequate child care arrangements. Child care and transportation, on the other hand, were the primary obstacles for householders who were un- employed and looking for work, and full-time home- makers. Lack of skills, not knowing how to apply for a job, and not knowing what to do were also significant obstacles for this population. Householders who were not employed but going fo school were least burdened by major obstacles. Child care, lack of skills and transportation were the most important obstacles, but they were so fora significant- ly smaller share of these householders than for house- holders who were unemployed and looking for work. This may be due to the fact that some educational programs (e.g. STRIDE) provide support services such as child care and transportation. ECONOMIC, SOCIAL AND HEALTH NEEDS OF THE FAMILIES The survey shows that, despite public assistance for rent and income, the basic needs of many of the fami- lies are not being met and that the most urgent needs of the families are economic: food, transportation, child care and collecting child support. While family-related problems (e.g., children acting out, alcoholism, marital problems) and health-related problems are affecting some of the families, they are not as prevalent as economic problems. Food and other Basic Needs Approximately two thirds of the families have gone with- outfood and other basic necessities at least once in a while in order to pay for rent, and a majority of families have relied on food shelves to meet their basic needs. About a third of the families have used emergency fi- nancial assistance at some point in their life. Transportation Needs Lack of adequate transportation is a significant problem among the surveyed families. More than a third of white families and nearly two thirds of minority families did not own a car at the time of the survey, and a family living in Richfield was more likely to not own a car than a family living in Bloomington. The share of surveyed families without a car is high in comparison to that of the overall population in these communities. In 1990, 2 percent of people aged 16 to 64 in Bloomington, and 5 percent of people in that age group in Richfield, did not own a car. Because of the large share of families without a car, living close to public transportation was a very impor- tant condition of where the families lived, especially for minority families. Access to public transportation was a more important neighborhood condition than living close to work, child care, shopping or services. Worth noting is that the number of families who indicated that transportation was a barrier was smaller than the num- ber of families who did not have a car. This may be be- cause many of the families had access to a car, especially to use in getting to work, shops and services. Child Care Needs The lack of affordable child care was cited as one of the biggest obstacles for families trying to become self- sufficient. About a third of householders indicated that they needed but could not afford the cost of child care. A third of these householders were employed and a third were unemployed and looking for work. The re- maining third were unemployed and in school or full- time homemakers. Families also reported a need for special needs child care. Nearly a quarter of householders who responded to the question relating to special needs care ex- pressed the need for sick care and evening and week- end care. Another 18 percent expressed the need for crisis nursery care, which is a place where parents can take their children during times of extreme stress that may lead to child abuse. C~7 Family-Related Problems The most prevalent family-related problem faced by the families was collecting child support. This problem affected a third of white families and 18 percent of minority families. The second most prevalent problem was dealing with a child who acts out. Less prevalent problems were marital problems, truancy, and taking care of a family member with a disability. Overall, a small share of the surveyed families re- ported they were dealing with family-related problems. It is possible that some of the families were not willing to share their family problems on a survey, or that the families did not perceive themselves as dealing with the problems. Family-related problems appeared to be more preva- lentamong white families than minority families, or at least a larger share of white families reported to be dealing with these problems. Health Care Needs Health care problems do not appear to be an area of significant need among the surveyed families. This may be due to the fact that the vast majority of the families (83 percent of white families and 91 percent of minority families) had health care insurance. Approximately 85 percent of insured families were covered by Medical Assistance. About a third of in- sured white families, and 11 percent of insured minor- ity families, had insurance through their employer, which means that some families had both public and private coverage. Although most of the surveyed families had health in- surance, the percentage of uninsured families is still concerning. Seventeen percent of the white families surveyed and 9 percent of the minority families did not have any health care insurance. The same was true for 21 percent of white children and 6 percent of mi- nority children. The share of uninsured surveyed families is higher than that of the general Minnesota population, 8 percent of which are uninsured some of the year and 4 percent of which are not insured at all. One of the most important issues expressed by the families regarding health care - as a universal health care system is debated - is what happens to families who, as they move toward economic self-sufficiency and are no longer income eligible for Medical Assis- tance, obtain a job that does not provide medical insurance. COMMUNITY SUPPORTS AND SOCIAL SERVICES What Families Value about their Community The survey shows that the families care about where they live. The most important qualities of a community sought by the families are safety and schools. Over half of the heads of households were at least somewhat involved in their communities, and the chil- dren of about 30 percent of the families were involved in at least one activity outside of the home. This level of involvement is difficult to evaluate because we do not know what percent of families and children in the over- all community are involved in activities outside of the home. Support Systems The families appear to have strong support systems in their communities. They rely most often upon families, friends and social service organizations. Friends and families were relied upon most often for help with child care and transportation. Social service organizations were most often relied upon for health, financial, housing and family problems. The service organizations in south Hennepin County used most often by the surveyed families were Bloom- ington Public Health, VEAP (Volunteers Enlisted to Assist People), Bloomington/Richfield Family Center, Cornerstone Advocacy Services and Family and Chil- dren Services. On average, white families tended to use family-related services more often than minority families. Key community institutions such as schools and reli- gious organizations appear to be much less important means of support for the surveyed families. However, it is interesting to note that the most common activities in which young children are involved outside of the home are church related. People find out family-related services most typically through word of mouth, family and friends, the Sun Cur- rent newspaper, flyers in the mail and their child's school. Importance of Housing Assistance The surveyed families reported that the availability of rent assistance was one of the most important factors in determining where families lived. Nearly half of white C families and 30 percent of minority families also re- ported living in their present home for at least two years. These findings suggest that housing subsidies could play an important role in providing a stable living situation for low-income families. In a study taken three years ago among low-income families in subur- ban Hennepin County, it was seen, although not con- clusively, that the larger the housing subsidy for the families the longer the families were likely to remain in their home. Families with a stable living situation have more opportunity to be better connected to community supports. They are also less likely to worry about how to make the rent payment from month to month and thus be more able to address other barriers related to self-sufficiency. DIFFERENCES BETWEEN WHITE AND MINORITY FAMILIES The findings clearly showed that low-income minority families face significantly more barriers to advance- ment and self-sufficiency than low-income white families. This was true even though the share of mar- ried couple families among minority headed house- holds was significantly greater than among white headed households. Compared to white household- ers, minority householders: o were newer to the communities of Richfield and Bloomington; o felt less connected to their community, less welcomed in their community, and less knowledgeable about what was going on in their community; o were younger and had more children; o were as likely to be in the labor force, but much more likely to be unemployed and less likely to be enrolled in school or a training program; and o were much less likely to own a car and consider transportation as a significant barrier. These differences suggest that unique strategies need to be established in assisting low-income minority populations. [4, J INTRODUCTION PURPOSE AND GOALS During the summer of 1993, a survey was conducted among participants in the Section 8 Rent Assistance Program in Richfield and Bloomington. Nearly all of the households surveyed were families, and most of the families had children and were headed by single females. This survey is part of a project to more effectively link low-income families to the diverse resources in the community. Toward this end, the survey was used to: • understand the barriers families face in becoming economically self-sufficient; • identify the economic, social and health needs of families; • understand what the families value about their community and what family, community and social service supports families rely on for assistance; • assess differences between white and minority families in terms of barriers, needs and community supports. The surveyed population was stratified by race in or- der to determine if there were significant differences between white and minority families. DEFINITIONS Family refers to a household with or without chil- dren which is headed by a married couple or a single parent under age 62. White family (or household) refers to a household headed by a white adult. Mi- nority family (or household) refers to a household headed by a racial or ethnic minority. The racial and ethnic characteristic of the family refers only to the race and ethnicity of the head of household, not nec- essarily of the children. The respondents of the survey are heads of house- holds and are referred to in this report as heads of household or householders. Section 8 Housing Assistance is a federally funded rent assistance program for families and individuals making less than 50 percent of the median income as adjusted by household size. METHODOLOGY The surveyed population was identified through the list of participants in the Section 8 programs in Bloomington and Richfield. All householders under the age of 62 were selected and were stratified by race and ethnicity. A sample of white households was drawn from the Section 8 participant list based on a confidence interval of 95 percent with error due to sampling being no greater than plus or minus 5 per- centage points. Replacement samples were included in the sample. The sample size equaled two-thirds of the white Section 8 participants. The predominant eth- nic minority population was African American. All of the minority households were surveyed since the num- ber of total households was too small to sample. The total number of households surveyed was 378: 216 were from Bloomington and 162 were from Richfield; 158 were minority and 220 were white. The instrument used to survey the households was a mail out questionnaire. RESPONSE RATE Of the 378 households surveyed, 208 (55 percent) re- sponded. The response rate for both white and minor- ity households was higher in Richfield than Bloomington, and it was higher among white house- holds than minority households for both cities. Sixty-two percent of surveyed families in Richfield and 50 percent in Bloomington responded to the ques- tionnaire. Sixty-eight percent of white families in Rich- field and 53 percent percent in Bloomington completed the survey. And 56 percent of minority families in Richfield completed the survey, compared to 44 per- cent in Bloomington. (Figure 1) Survey Response Rates oWhite families Minority families All families 53°.6 50°,6 44°,6 Bloomington ss°~ s2°~ 56°,6 Richfield Figure 7 DEMOGRAPHIC PROFILE OF THE FAMILIES RACE AND ETHNICITY Thirty-six percent of the survey's respondents were minority families. At the time of the survey, approxi- mately 23 percent of families receiving rental assis- tance in Bloomington, and 29 percent in Richfield, were minority. These percentages are higher than the share of families with children headed by minorities in the overall population as counted by the census in 1990, when 6.6 percent of Bloomington's and 9 per- cent of Richfield's families with children were headed by minorities. HOUSEHOLD TYPES The majority of the families responding to the survey were headed by single parents, primarily female. A larger share of white families than minority families were headed by single parents (86 percent compared to 76 percent). Twenty percent of minority families surveyed were married couples with children com- pared to 5 percent of white families. A small percent of families were comprised of couples living together with children, married or single adults without children or some other makeup (Figure 2). Families by Household Status ss% Single parent 76% 5% Married w/ children 20% Unmarried w/ children ^2°~' [~ 3% Single w/o children f]O°~ Married w/o children ~~°% ^White family Minority family 0 Other ' 1 Figure 2 AGE OF HOUSEHOLDERS Table 1 # of Children White Families Minority Families 19-24 9% 14% 25-34 46% 56% 35-49 41 % 22% 50-61 5% 5% 62+ 0% 3% Table 1 shows a breakdown of the householders by age. The largest group of householders was aged 25 to 34. Minority householders were younger, on aver- age, than white householders. NUMBER AND AGE OF CHILDREN Table 2 below shows that families with only one child were the most common household type. Minority fai- lies, however,. tended to be larger. Thirty-three per- cent of minority families had three or more children compared to 10 percent of white families. Table 2 # of Children Bloomington Richfield White Families Minority Families 1 47% 53% 55% 42% 2 33% 29% 35% 24% 3 16% 15% 8% 28% 4 or more 3% 3% 2% 5% Minority families also tended to have more children at a younger age. Figure three shows that 45 percent of minority heads of households aged 19 to 24 had three or more children as compared to 18 percent of white heads of households, and 35 percent of minority heads of households aged 25 to 34 had three or more chil- dren as compared to 11 percent of white heads of households. Age of Parent by Number of Children # of children ^1 02 ^3+ 100% -------------- ----------------------------- -~ 80% ~ -------------- - J - ------ -- l-- ~~ 60% ~'- I I I 40% --------------- ~, . - 20% - --------------- - - ° 19-24 25-34 35-49 19-24 25-34 35-49 Parent's age White Minority family family Figure 3 Fifty-eight percent of minority families had children un- der age five compared to 29 percent of white families. A large share of both white and minority families, how- ever, had children aged 5 to 13: 76 and 70 percent, re- spectively. About a fifth of both white and minority families had high school aged children. C7 ECONOMIC PROFILE OF THE FAMILIES SOURCES OF INCOME A family receiving rental assistance is, by definition, very low-income. The most common source of household income among the surveyed families was Aid To Families With Dependent Children (AFDC). A larger share of minority families was receiving public assistance than white families (82 percent compared to 66 percent). (Figure 4) The second most common source of income was wages and salaries. Fifty-six percent of white fami- lies and 43 percent of minority families received a wage or salary. About a quarter of families had both a wage/salary and income assistance. The third most important source of income was child support. Thirty-seven percent of white families and 31 percent of minority families received child support. These households accounted for 43 percent of white single parent families and 40 percent of minority single parent families. Thus, a similar share of white and minority single parent families received child support. Sources of Income 820 White family raMinority family 66°k !"~ 56°~ ~ .... ~: '43% 37% 31 °k 14%11°k p t _ - I- AFDC Child Support Wages/Salary Other Percent of families Figure 4 EMPLOYMENT STATUS Sixty percent of the surveyed householders, both white and minority, were in the labor force (i.e., either working or unemployed and looking for work) at the time of the survey. There was little difference between white and minority householders in terms of the percentage of household- ers in the labor force. There was also little difference between them in terms of the share unemployed and couldn't work and who were full-time homemakers. Nineteen percent of all householders could not work because they were in school or had a disability. Another 17 percent were full-time homemakers. (Figure 5) However, there were significant differences between white and minority householders in terms of the rate of employment and of full-time work. Forty-three percent of white householders were employed, compared to 31 percent of minority householders, and 65 percent of the employed white householders were employed full- time, compared to 48 percent of minority household- ers'. Seventeen percent of white householders and 28 percent of minority householders were unemployed and looking for work at the time of the survey. (As a share of householders in the labor force, the rate of unemployed jumps to 28 percent of white household- ers and 47 percent of minority householders.) Labor Force Participation and Unemployment ~;' zs% ~:::> Employed full-time 15°,6 n~ 15% Employed part-time 16% 17% Unemployed and looking for work 28% 18% Unemployed and can't work 20% 16% Full-time homemaker ~wx 18% ®WhRe householder 6% Minority householder Other 2% Percent of householders Figf~e 5 Presence of Children in the family and Employment Status Balancing work and family life is a challenge for most families with children. The survey shows that parents are more likely to be employed and working full-time if they have only one child and if their children were aged 5 or older. ' Note that the percentage of householders employed was lower than the percentage of households earning a wage or a salary during the previous year. This could be due to the fact that the householder was working and earning a wage at some point during the year, or that someone in the household was earning a wa a or a solo either a teens er or some other adult livin in the house . .'7 Twenty-five percent of families with only one child were working full-time. This share dropped to 7 per- cent among families with two children and to 4 per- cent among those with 3 children. Similarly, the share of householders not looking for work increased from 31 percent among those with one child to 52 percent among those with three children. Parents with two or more children were also more likely than those with one child to be unemployed (that is, not working, but looking for work.) Lastly, 46 percent of householders with children under age 5 were working or looking for work, compared to 65 percent of those with children only over age 5. OCCUPATIONAL MAKEUP The most common occupation among employed householders was in the service sector. Half of the working minority householders and 34 percent of working white householders were employed as a cook, waitress, cleaner or some other service worker Clerical work was the second most common occupa- tion among white householders (30 percent), while marketing and sales was the second most common occupation among minority householders (15 per- cent). (Figure 6) Breakdown of Employed Householders by Occupation 50% oWhite householder ^Minority householder 34% 30% 16% 15°k 10% $°~ 10°k _ ~ _ ~ i - Service Sales Clerical Admin./Professn'I How People Found Their Jobs Thirty six percent of white householders found out about their job(s) through. an advertisement in the newspaper and another 36 percent found a job through a friend or a family member. The most common sources of information differed slightly for minorities. About a quarter of minorities found out about their job through an ad in the paper and 42 percent found out through a family member or a friend. Only 8 percent of whites and 11 percent of minorities found out through an employment agency. About 20 percent of all said they found out about their jobs through some other means. EDUCATIONAL ATTAINMENT AND JOB TRAINING About 55 percent of the respondents had at least some college. Approximately 22 percent had a college de- gree and 10 did not have a high school degree. While there was little difference between white and minority householders in terms of the share with at least some college, a slightly larger share of whites than minorities had a college degree, and a larger share of minorities than whites did not have a high school degree. Breakdown of Householders by Educational Attainment Level ®White householder Minority householder 39% 38% 31% 26% 24% ~"" 20% 18% <;~ , 6% Less than high school Some college ~~ ~~ r High school/GED College graduate Figtue 7 Figure 6 The educational attainment level of the surveyed pop- ulation differs from the norm in the Seven-County Met- Approximately 70 percent of employed respondents ro Area. According to the 1990 census, about the worked during the day and the other 30 percent same percentage of people aged 25 and older in the worked during the weekend or the evening. Metro Area as in the surveyed population had a high school degree or less. The same was true for the pop- ulation with at least some college3. The college grad- uation rate (22 percent) of the surveyed families is s The majority (85 to 90 percent) of the surveyed householders were aged 25 or older at the time of the survey. ' Approximately 45 percent of the surveyed population in this study had a high school degree or less. This percentage compares to an average of 42 percent (among people aged 25 and older) in the Seven-County Metro Area in 199D. Approximately 56 percent of the surveyed population had at least some college This percentage compares to an average of 58 percent (among people aged 25 and older) in the Seven-County Metro Area in 1990 . much lower than the average (37 percent) in the Met- ro Area. This suggests that the surveyed population is as likely as the general population to go onto to post- secondary education, but is much less likely to finish school and to get a degree. Job Training Nearly twice as many white householders as minority householders were enrolled in some kind of job train- ing or educational program (29 percent compared to 16 percent). This difference may be attributed in part to the same reason that a larger share of minorities are not employed: they have more children than white householders and their children are younger. STRIDE, the Minnesota work-to-welfare program, was the most popular training program among whites, with 16 percent participating in this program. Slightly more minorities participated in some program other than STRIDE (9 percent compared to 7 percent). COMMUNITY VALUES AND INVOLVEMENT WHAT THE FAMILIES VALUE ABOUT THEIR COMMUNITIES The surveyed families were asked what they most valued about where they lived. The two most impor- tant conditions were safety and schools (Figure 8). Over 90 percent of householders felt these qualities were very important. However, for the surveyed fami- lies, the availability of rent assistance was also a key determinant of where they lived. (Nearly half of the respondents had been on a waiting list for rental as- sistance for over a year.) Nearly 80 percent of fami- lies indicated that good overall neighborhood appearance is a very important neighborhood condition. Other neighborhood conditions were also important to the families, although not as important as safety and schools. Further, their significance depended on the race of the householder. Access to public transporta- tion was very important to three quarters of minority families and to 50 percent of white families. Proximi- ty to child care was very important to 56 percent of minority families and to 40 percent of white families. Living close to friends and family was very important to 56 percent of white families and to 35 percent of minority families. Overall, proximity to work, shopping or services ranked among the least important concerns of the re- spondents, regardless of race. HOW LONG THE FAMILIES HAVE LIVED IN THEIR COMMUNITIES The majority of the families had been living in their current home for at least one year at the time of the survey. White families, on average, had been at their current address longer than minority families. Nearly half of white families had been in their home for at least two years, and another 25 percent had been there between one and two years. On the other hand, 28 percent of minorities had lived in their present home for over two years and 32 percent had been there between one and two years. Thirty percent of white families and 46 percent of mi- nority families had moved once in the past two years. About 15 percent of all respondents had moved at least twice. The families were most likely to have moved into their present home from the same community in which they were living at the time. Over half of white families and 46 percent of minority families moved to their current home from another home within the same community. This means that most families were not new to, nor un- familiar, with their communities. White families who did not move from within the same community came primarily from another suburb in the metro area. Minority families who did not move from within the same community, came primarily from Min- neapolis. Very few families came from outside of the metro area. INVOLVEMENT IN THE COMMUNITY Adults About 55 percent of white heads of households and 43 percent of minority heads of households were "some- what" or "very" involved in their communities. Ten percent of whites and 7 percent of minorities were "very" involved. A larger share of minorities than whites expressed the desire to become more involved in the community (53 percent compared to 38 percent). Minorities, however, indicated that they face more barriers than whites to becoming involved. A significantly larger share of mi- norities than whites did not feel a part of the communi- ty, had trouble getting transportation and didn't know about community activities. The older the children in the family, the less likely the householder was to be involved in the community, in part probably because a greater proportion of house- holders with older children worked. Children About 30 percent of families had children who were involved in activities outside of the home. Most of the kids involved in activities outside the home were preadolescent (under age 12). The rate of participa- tion was significantly lower for teenagers. The most popular activities for young children were church activities (62 percent of families with children Family Residency Patterns Community Conditions that are "Very Important" to Families Good schools Safe neighborhood Rent assistance Appearance Access to public trans. Ethnic groups getting along Living close to familyffriends Income groups getting along Close to health services Close to shopping Close to child care Getting along w/ other tenants White hoias~ Close to work ~ Mlnorlty tol 0% 20% 40% 60% 80% Percent of householders er 100% Figure 8 Less than 6 mo. 6 mo. - 1 year 1 to 2 years Over 2 years Have not moved Once Twice 3 times or more Same city `~ Minneapolis St. Paul Suburban Hennepin Outstate Minnesota ~~ Other ~~ 0% White householder Minority householder aged 5 to 12); after-school activities such as sports, clubs, music, etc. (61 percent); and organized youth programs (36 percent). Eighty-four percent of families with children indicated that there were barriers that prevented their children from being more involved in community activities. The most significant barriers were activity costs (57 per- cent), transportation (28 percent), and information about activities (26 percent). your 10% 20% 30% 40° Percent of householders lived zany times have you in the last twv years?" /here did you live bE your current addres /0 50% 60% moving 9 10 BARRIERS THAT PREVENT FAMILIES FROM ECONOMIC ADVANCEMENT One of the main goals of the study was to better un- derstand the barriers that prevent low-income fami- lies from economic advancement and ultimately to self-sufficiency. Ninety-one percent of surveyed householders re- sponded to the questions relating to barriers to ad- vancement (i.e., through better employment and/or education). Of these householders, almost 60 per- cent said that they faced at least one "big obstacle" that prevented them from economic advancement. The most common barriers that were considered "big obstacles" to advancement and becoming self- sufficient were lack of affordable child care, trans- portation and lack of skills. (Figure 10) Lack of child care was a "big obstacle" for the same percentage (33 percent) of white and minority house- holders. However, lack of transportation was a "big obstacle" for a much larger share of minority house- holders (37 percent) than white householders (21 per- cent). Lack of skills was also reported as a big obstacle among a higher percentage of minority householders (27 percent) than white householders (21 percent). Not knowing how to apply for a job or schooling was reported as a "big obstacle" among 19 percent of mi- nority householders, but only 7 percent of white householders. Barriers such as not knowing what to do, lack of time, and lack of confidence and motivation were big ob- stacles for a significantly fewer number of household- ers. There was not a large difference in the share of white and minority householders who reported these barriers as "big obstacles", with the exception of lack of motivation. While only 1 percent of white house- holders indicated that this barrier was a "big ob- stacle", 11 percent of minorities reported that it was. Breakdown of Major Obstacles by Employment Status of Householder The barriers householders expressed as being big ob- staclesdiffered according to the employment status of the householder, which reflects the diversity of needs of the low-income population. (Figure 11) The most common big obstacles among those who were employed were: lack of self-confidence (22 per- cent of those employed), lack of time (20 percent), child care (17 percent), and lack of skills (15 percent). The most common big obstacles among those who were unemployed and looking for work were: child care (33 percent of those unemployed), transportation (31 percent), lack of skills (24 percent), not knowing how to apply (19 percent), and not knowing what to do (19 percent). The most common big obstacles among those who were unemployed and in school or disabled were child care (22 percent), lack of skills (14 percent), and trans- portation (14 percent). Full-time homemakers, while not actively seeking work or going to school, also reported barriers to economic advancement. The most common big obstacles among those who were full-time homemakers were child care (37 percent), lack of skills (28 percent) and transportation (28 percent). 11 Percentage of Householders for Whom Barrier is a "Big Obstacle" Lack of affordable child care Lack of transportation Lack of skills Don't know what to do Lack of time Lack of confidence Don't know how to apply Not motivated Lack of affordable child care Lack of transportation Lack of skills Don't know what to do Lack of time Lack of confidence Don't know how to apply Not motivated oEmplo~ea Unemployed & loot Unemployed 8~ goii I~Full-tine homemal Figure 10 Breakdown of "Big Obstacles" by Employment Status of Householders Lack of affordable child care Lack of transportation Lack of skills Don't know what to do Don't know how to apply Lack of time Lack of confidence Not motivated 0% er der ing for work a to school 10% 20% 30% 40% Percent of householders Figure 11 Percent of householders FAMILY NEEDS BASIC NEEDS The families indicated that they deal with significant financial hardship. About two-thirds of them have gone without food, medical care and other necessi- ties at least "once in a while" to pay for housing and utilities. Twelve percent of white families and 15 per- cent of minority headed families have gone without these basic needs at least once or twice a month. And 3 percent of white families and 7 percent of mi- nority families have gone without them on a weekly basis. How Often Families Go Without Basic Necessities ^Never ^Once in a while ®1-2 times a month ^1-2 times a week 100% ----- ------ --------------------- --------- .:::::::::::.:::::::::: :::>::>::;::;::>::>::;>:>::>::>:: .....:..::::::::.:::::: 20% ----- ----- --------------------- ---------- 0% --- - ------ --------------------- ----------- White family Minority family Figure 12 TRANSPORTATION NEEDS Families without a Car Sixty-two percent of all minority families and 35 per- cent of all white families did not own a car. The per- centage of both white and minority families without a car was higher in Richfield than Bloomington. (Figure 12) By comparison to the overall population in Richfield and Bloomington as presented in the 1990 Census, car ownership is low among the surveyed families. In 1990, just 2 percent of householders aged 15 to 64 in Bloomington and 5 percent in Richfield did not own a car. The census data do show, however, that met- ropolitan wide, minority households are much less likely to own a car than nonminority households. The main reason many families do not own a car is fi- nancial. Eighty-one percent of white householders and 64 percent of minority householders said that buying or repairing a car has resulted in financial crisis. How People Get Around Even though a significant share of householders do not own a car, the most common way they get around is by car, either their own or a borrowed one. This many explain why a significantly smaller share of householders indicated that lack of transportation was a barrier to advancement than the percentage of fami- lies without a car. Nearly twenty percent of minority householders used public transportation to get to work, to run errands and to get to social activities. A third of them depended on public transportion to get to medical appointments. A smaller share of white households depended on pub- lictransportion. Thirteen percent of them used public transportation to get to work and medical appoint- ments. Approximately 5 percent depend on it to go shopping or to social activities. Nearly a quarter of respondents, both white and minor- ity families) reported that the lack of convenience of ublic trans ortation was a "real problem" for them. P P Safety was a "real problem" for 18 percent of white families and 23 ercent of minority families. About 12 P percent said that not having information on routes was a "real problem". Percentage of Families without a Car White family Minority family ~ 42°~ I Zs°~ Bloomington Richfield Figure 13 13 CHILD CARE NEEDS Currently Using Child Care Forty-eight percent of white families and 36 percent of minority families were using some kind of child care at the time of the survey (Figure 14). Three quarters of these families using child care were satis- fied with their current child care arrangement. Fifteen percent of families had their children enrolled in a preschool program. A larger share of minority families than white families had their children en- rolled in a preschool program (23 percent compared to 15 percent), which can be explained by the fact that minority families have more children in the pre- school age group. The most popular preschool pro- gram was Head Start, with over half of families with children in preschool using this program. Need for Affordable Child Care Sixty-four percent of respondents answered the ques- tion of whether or not they had a need for child care but could not afford the cost. Of these, 35 percent re- sponded yes (Figure 15). These findings differ, al- though not significantly, from the findings regarding child care as a barrier to advancement. Among the parents who responded yes, 34 percent were unemployed and looking for work and 34 per- cent were employed full- or part-time. The remaining third were were unemployed and in school or a full- time homemaker. These same parents were also asked what they could afford to pay for child care. More than half indicated that they could not afford to pay anything at atl; 38 percent said they could afford up to $50 per week. Need for Special Needs Care Nearly half of householders answered the question relating to the need for child care services currently not available to them. Of these, 23 percent (mostly white families) said they needed care for sick chil- dren; 22 percent said they needed evening or week- end care; and 18 percent said they needed crisis nursery care. (Figure 15) Families with Children in Child Care Percent of Percent of families all families using child care 76% 77% ,.,, 48% - ~ 36% i Has child in child care Satisfied with child care White family ^Minority family Unmet Child Care Needs Figure 14 Low-cost child care Sick care Evening/weekend care Crisis nursery care Percent of families responding Figurer 15 lure note The percentage of families responding differed for each question. Of the 208 families, 133 responded to the question regarding low-cost child care and 101 responded to the questions relating to sick care, evening and weekend care and crisis nursery care. ~4 FAMILY-RELATED NEEDS Respondents were asked if they were currently hav- ing any family problems. Because such a question is sensitive, respondents were given the choice of not responding to it. However, the vast majority (93 per- cent) of respondents did answer the question. The most common problem faced by the families was difficulty in collecting child support. This problem was faced by 32 percent of white families and 18 percent of minority families. The fact that minority families had less of a problem than white families with collect- ing child support may be partly attributed to the smaller share of minority households comprised of single parent families. The second most common problem was children act- ing out. Twenty-one percent of white householders and 16 percent of minority householders said they had a problem with their children's behavior. Six per- cent said they had trouble with their kids not going to school. Percentage of Families Dealing with Family Related Problems Family Related Problem White Family (n=122) Minority Family (n=73) Collecting child support 32% 18% Child acting out 21% 16% Child skipping school 6% 6% Marital problems 5% 4% Chemical dependency 6% 3% Family member with a physical disability 6% 1 Family member with a developmental disability 7% 1 Runaway child 3% 3% Child involved with crime 3% 3% Special care of a parent at 2% 3% home Domestic Abuse 2% 1 Figure 16 Only a few families indicated that they had problems with issues of marital problems, alcoholism, domestic abuse, caring for a parent, taking care of a family member with a disability, a child running away or a child involved in crime. Families were also asked if they wanted information about, or assistance with, any family related problems. On average, only about 25 percent of families re- sponded to this question. The response rate was high- est for the questions relating to collecting child support and to children acting out. These were also the prob- lem areas for which the families most wanted informa- tion. (Figure 17) Percentage of Families Asking for Information About or Assistance with Family Related Problems White Minority Family Related Problem Family Family (n=30-47)' (n=22-24)Z Collecting child support 36% 17% Child acting out 33% 19% Child skipping school 15% 5% Marital problems 6% 10% Chemical dependency 12% 5% Family member with a physical disability 13% 5% Family member with a developmental disability 16% 0% Runaway child 3% 0% Child involved with crime 7% 5% Special care of a parent at 3% 5% home Domestic Abuse 7% 5% ' The response rate to these questions ranged from 30 to 47 among white families. ' The response rate to these questions varied from 22 to 24 among minority families. Figwe 17 15 HEALTH CARE NEEDS Health Care Insurance Ninety-one percent of minority householders and 83 percent of white householders were covered by health care insurance. Ninety-four percent of chil- dren of minority families, and 79 percent of children of white families, were covered (Figure 18). The high- er rate of insured minority families is partly attributed to the larger share of families receiving economic as- sistance, which typically includes Medical Assistance (MA). Health Care Insurance Families receiving health care insurance ___ ~° 83°~ Precept of Householder ' 91 °~ all families ®White family Children 94°~ Minority family Breakdown of families with insurance by type of insurance coverage 32°,~ Precept of all Employer '-~ ° families with 11 ~ insurance 85°,6 Med. Ass. (MA) 87°.6 Figure 18 Even though most surveyed families have health care insurance, the rate of uninsured families is con- cerning. Twenty-one percent of children of white headed families and 6 percent of minority headed families were not covered by insurance. This was true for 17 percent of white heads of households and 9 percent of minority heads of households. These rates are higher than the rates for the popula- tion of Minnesota as a whole. On average, 8 percent of Minnesota's population do not receive health care insurance at some point throughout the year, and 4 percent do not receive health care insurance at all. Approximately 85 percent of insured families were covered by MA. About a third of insured white fami- lies, and 11 percent of insured minority families, had insurance through their employer. This means that some families had both public and private coverage. Families receiving MA participate in one of three Health Maintenance Organizations: Medica Choice, Metropolitan Health Plan, or UCARE Minnesota Plan. When families are not part of one of these plans, they may receive MA in the form of fee-for-service. The most common health plan used by the surveyed fami- lies was Medica Choice, which was used by about 70 percent of families. About a third of the families used each of the other two plan options. Unmet Medical Needs Because of the large percentage of insured families, only a few families said that they had a medical need in the past year for which they could not get the care they needed. The following table lists what there were: Table 3 Health care need White family Minority family Was sick or ill 8% 8% Was injured or hurt 3% 0% Needed a general checkup 11 % 8% Needed prescription drugs 15% 5% Needed prenatal care 1% 0% The table shows that overall, white families had more unmet medical needs than minority families, probably because a smaller share of white than minority fami- lies was covered by insurance. The most common un- met health care needs among white families were getting prescription drugs and getting a general medi- cal checkup. The most common unmet health care needs among minority families were not getting treat- ment for a sickness and getting a general medical checkup. Among those who said they had a problem getting the care they needed, almost half indicated that the type of care they needed was not covered by insurance, ei- therbecause they didn't have insurance or because the medical need was not covered by their insurance plan. Less frequently experienced barriers were lack of child care, and medical doctors and health care staff not understanding or being sensitive to the families' needs. Most Important Health Care Concerns The families were asked to indicate what they felt their most important health concern was. Fifty-five families offered their opinion. The three most common con- cerns (10-15 percent of respondents) were: 1) not be- ing able to get medical care because it was not covered by insurance, especially dental care; 2) the cost of health care; and 3) not being able to get insur- ance once they were employed and off AFDC. Other concerns related to the health of children and included mental health, primary care, drug abuse, HIV/AIDS, 16 diabetes and asthma. Only about a quarter of re- spondents took the opportunity to indicate if they wanted information about health topics. Although there was no predominant topic respondents wanted information about, the topics of most interest were AIDS/HIV; mental health (depression); nutrition weight and fitness; and diseases such as cancer, diabetes, kidney disease, and heart disease. SOCIAL SUPPORTS AND SERVICES FAMILIES RELY ON WHERE FAMILIES TURN FIRST FOR HELP The respondents were asked to identify who they turn to first for assistance with various problems. About 90 percent of the families responded. The families' social supports appear strong and di- verse. The families turn first to family and friends for help with some issues and to professional organiza- tions for others. (Figure 19) The help of friends and families was most commonly sought when dealing with issues of child care and transportation. This was true for both white and minority heads of households, although there were sig- nificant differences between the two groups. Seventy-seven percent of white householders and 63 percent of minority householders turned to friends and family for help with child care. Seventy-five percent of white householders and 56 percent of minority house- holders turned first to friends and family for help with transportation. About the same share (36 percent) of both white and minority heads of households turned to friends and family for help with family problems of divorce, abuse, etc. The respondents were much more likely to turn to pro- fessional organizations than friends or families for con- cerns of health care, financial or legal assistance, employment, housing, and family problems. People turned first to a place of employment only when deal- ing with employment issues. Few families turn to religious organizations or schools first for support. Where People Turn to First for Help ~~ White householder Minority householder Child care problems .Transportation problems Family/personal issues Financial/Legal help ~ Turn first to Housing related problems ~ familiesanc Employment related problems ~ friends Health care problems Q Health care problems Housing related problems Financial/legal problems Family/personal issues Turn first to a service Employment related problems ~ organization or Transportation problems ~~~ professional Child care problems '°~""" 0% 20% 40% 60% 80% Percent of families Figure 19 17 USE OF SOCIAL SERVICES Emergency Services Not surprisingly, a large share of families have sought help to ease their financial difficulties. About two-thirds of families have used a food shelf at some point in their life. This was true for a slightly higher percentage (69 percent) of white families than minor- ity families (62 percent). (Figure 20) About a third of families have received emergency financial assistance at some point in their lives from Hennepin County or VEAP (Volunteers Enlisted to Assist People) to help pay for rent and utilities. Also, about a third of white families, and a quarter of minority families, have used low-cost legal assistance. Family and Health Care Services The respondents were also asked to indicate the family services they had used within the past two years. They were given a choice of 35 family service organizations, most of which are located in south Hennepin County. The most common service used by white families ~~ within the past two years was school counselors/so- cial workers". Nineteen percent of white families made use of this service (Figure 21). Only 9 percent of minority families, however, used this service. This service type was meant to read "school counselor" or "school social worker". It may be, however, that the ~~ respondents interpreted the selection as social wor- ker" (i.e. county social worker), which most of the re- spondents have because they receive public assistance. This would explain why the response rate for this question was high even though in a previous question, the families indicated that they rarely turned to schools for help. The most common service used by minority families within the past two years was the Bloomington Public Health Center. Thirteen percent of minorities have used this service, but only 5 percent of whites have done so. (About a quarter of both white and minority respondents indicated that they had used the Bloom- ington Public Health Center at some time in their life.) Outside of Social Workers and Public Health, the Bloomington/Richfield Family Center and Corner- stone Advocacy Center were used by the largest share of white and minority families. The Family Center offers parenting and and early childhood educational programs. Cornerstone assists families dealing with domestic abuse. See Figure 21 for a list of other programs used by the surveyed families. Families who have lived in Richfield and Bloomington a longer time appear to be more likely to use the ser- vices of these communities. Such a likelihood is diffi- cult to confirm through this study, however, because of the few number of families who responded to the question. How Families Find Out About Social Services The families were asked how they normally found out about services. Ninety-six percent of respondents an- swered the question. The families said they relied most often (i.e., used many times) on "other" sources of information to find out about resources available in the community. The most common "other" resources were word-of-mouth or family and friends. (Figure 22) The second most common source of information used was the Sun Current Newspaper (23 percent of white and 27 percent of minority families). The other sources of information commonly used by white families were: flyers (20 percent), child's school (18 percent), doctor's office (16 percent). The other sources commonly used 6y minority families were: Richfield's Your City Your School paper (27 per- cent), doctor's office (19 percent), flyers (19 percent), child's school (18 percent), bulletin boards at stores (17 percent), place of employment or schooling (17 percent). The sources most commonly "never used" were bulle- tin boards at stores, cable T.V., and place of employ- ment or schooling. Lg Percentage of Families Using Emergency Services White family ^Minority family 69% ~~i 62% f Food shelf 33% 35% Emergency Rent Assisttance Percent of families that have used a food shelf or rent assistance at some point in their life. Figure 20 Percentage of Families Using Family Services White Minority Family Service Family Family n( _130) L=~ School counselors/social workers 19% 9% Bloom. /Richfield Family Center 12% 8% Cornerstone Advocacy Services 12% 6% Bloomington Public Health Center 5% 13% Store Front Youth Action 8% 4% Alcoholics Anonymous 7% 1% Chrysalis Center for Women 5% 3% Washburn Child Guidance Center 5% 1% Bridge for Runaway Youth 4% 3% Crisis Information Center 2% 3% PACER 2% 3% United Battered Families Network 1% 3% Fraser Community Services 0% 4% Pilot Center Mental Health Center 1% 3% Two percent or fewer of the white or minority families used the following services: MELD, ARC, Bloomington Office of Special Services, SHIELD, Suicide Prevention Center, Women Kind, Side by Side, Crisis Connection Figure 21 Where People Find Out About Social Services ~ Many times A few times o Never Other Sun Current Newspaper Flyers in the mail Child's school Doctor's office Richfield's Your City/Your School Local Cable T.V. Place of employment/School Star Tribune Bulletin boards at stores 0% 20% 40% 60% 80% 100% Percent of families (n=199) Figure 22 rg ,. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 53 Agenda December 20, 1993 Issue Statement: Adoption of a resolution approving Declaration of Easements and Covenants (Schedule D); RSA project. Background: On November 15, 1993 the HRA approved the Contract For Private Redevelopment with RSA for the construction of a medical office facility. That approval was subject to the formulation of a document which would assure the continued availability of parking should the medical facility ever be sold to a party not in ownership of the primary RSA facility occupied by the bank. The site is divided into three parcels (see attached map). The banking facility is sited on parcel 1. The medical office facility will be sited on parcel 2. Parcel 3 is parking. Parking and access are addressed by the attached document. Parcel 2 will provide parking and access for parcel 1 (to some extent it will provide parking and access for itself as well). Parcel 3 will provide parking and access for parcels 1 and 2. Recommended Motion: Adopt the attached resolution which approves the declaration and incorporates it into the contract as Schedule D. Basis of Recommendation: 1. The HRA instructed staff to formulate such a document as a condition of their approval of the redevelopment contract. 2. The declaration assures continued parking availability for the medical facility if it is ever sold to a party not involved in the ownership of the other parcels. 3. The contract was modified to require evidence of the filing of the declaration prior to the HRA purchasing the property. Alternative Recommendation: 1. Reject the proposal. 2. Delay action.- 3. Modify the proposal. Discussion/Decision Mode: RSA would like to initiate construction this year. This document should be approved and recorded before construction would begin. Res lly submitted, JDP:ds Jams Prosser Exe 've Director RESOLUTION N0. RESOLUTION APPROVING DECLARATION OF EASEMENTS AND COVENANTS WITH RICHFIELD-STATE AGENCY, INC. WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "Authority") has properly created and is administering its Redevelopment District (the "District") pursuant to Minn. Stat. Chapter 469 in an effort to encourage the development and redevelopment of certain. designation areas within the City of Richfield; and WHEREAS, among the development activities proposed to be assisted by the Authority in the District include the development of a medical office facility; and WHEREAS, there has been approved by the Authority a Contract for Private Redevelopment ("Contract") among the Authority and Richfield State Agency, Inc. ("RSA") setting forth the parties respective responsibilities in developing the medical office facility; and WHEREAS, the Contract requires that the Authority and RSA enter into a Declaration of Easements and Covenants ("Declaration") and that the same be executed by the parties and filed of record by RSA; and WHEREAS, the Authority has reviewed the proposed Declaration and finds that the execution of the same would be in furtherance of the orderly development of the District. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority as follows: 1. The Declaration is in all respects APPROVED and shall be attached to the Contract as Schedule D. 2. The Chairperson and Executive Director are authorized, once the Contract has been executed by all parties, to execute the Declaration and deliver the same to RSA for recording. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota on this 20th day of December, 1993. Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary ~ :` ~: _ ,' , - -- ---- _ v~ V~ 3 - ,l,v _6.93 - •- - - ~ ~~ ._ iti; I t - - .. ~ ~, - DOt WO ~+3,991 • ~ _~ - ~ 66TH ~ ~ ST W aD 3-II.~,, > ' ~ s ; X55 -• ...... . ;~ -ti ,~ ~, ,~ - .~ ~ ~; ~ ,.. ~e '~ , ,, 7ss.a • - ~ " r r ! ~ ~ 5i ~ ~ (1 !, 5 - Y r A r ~+ ~ ~~ s - :?r j ~ (124 ~e. ~a --_ F ; - ; s. , ~r. G°3QC~N1 ~D C LSD ~'~ ti ' ~ ~' - 1 ~ v ' %~~ jy = ®©~ ~ ~ ~0 (1 z 3) 4 J ,,,; - ~ / ~ ~~~ r y (3-~ ' • +~c a-~ .. 3 d a ' ' ~125~ ~ Inc . ~, ,;- ~ ' _ 5 v i3.' e' '" ' ~~ 0.3 ~., j a~ •,6• 6?TH S I ~ W r? ,1 ZS e ......... ...... . ......... ............... ...: ~ . i ... . ~ . J ~ d6. ~ k• 10.3 ~ ~:d. 3 ~ u r .:d. 35 ~k s¢ SCHEDULE D Declaration of Easements and Covenants 199 b and between THIS DECLARATION is made as of ("Declarant") and the RICHFIELD STATE AGENCY, a HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a public body corporate and politic under the laws of the State of Minnesota (the "Authority") . Recitals A. Declarant is the fee owner of three separate tracts of land (the "Properties") in the City of Richfield, County of Hennepin, legally described as follows Lots 1, 2, and 3, Block 1, RICHFIELD BANK ADDITION B . The Authority has agreed to provide tax increment financing assistance to the Declarant for the development of a medical office facility on Lot 2, Block 1, RICHFIELD BANK ADDITION, on the condition that Declarant establish certain parking easements . C . Declarant wishes to create and establish the parking easements as requested by the Authority. Declaration NOW, THEREFORE, Declarant hereby declares that the Properties shall be subject to the following easements, covenants, and restrictions which shall run with the Properties, and which shall be binding on all parties having any right, title or interest in the lands so described, or any part thereof, and their heirs, successors or assigns, and which shall inure to the benefit of the Declarant and the Authority and their successors or assigns . ARTICLE 1 DEFINITIONS Section 1.1. Authority. The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, its successors and assigns . Section 1.2. Benefitted Parcel. Parcel 1 or Parcel 2, or any other lot of record which may be created by future subdivision of either lot. Section 1.3. Owner or Owners. Declarant, its successors and assigns, or any person or entity holding a fee simple interest in, or a recorded v~ndee's interest in a contract for deed on, Parcel 1, Parcel 2, or Parcel 3. Section 1.4. Parcel 1. Lot 1, Block 1, RICHFIELD BANK ADDITION. Section 1.5. Parcel 2. Lot 2, Block 1, RICHFIELD BANK ADDITION. Section 1.6. Parcel 3. Lot 3, Block 1, RICHFIELD BANK ADDITION. JBD61182 RC125-45 Section 1.7. PUD Plan. The Planned Unit Development Plan for the Properties as approved by the City Council of the City of Richfield, attached here as Exhibit A, as such plan may be amended from time to time. ARTICLE 2 EASEMENTS Section 2.1. ~ Parking Easement. Parcels 2 and 3 shall be burdened. by and subject to a perpetual, non-exclusive easement for parking purposes ("Parking Easement") over those portions of Parcels 2 and 3 .that are designated for parking in the PUD Plan, subject to the provisions of Section 4.1 of this Declaration. The Parking Easement over Parcel 2 shall be for the benefit of Parcel 1, and the Parking Easement over Parcel 3 shall be for the benefit of Parcels 1 and 2. Section 2.2 . Access Easement . Parcels 2 and 3 shall be burdened by and subject to a perpetual, non-exclusive easement for access, ingress and egress ("Access Easement") over those portions of Parcels 2 and 3 that are designated for such purposes in the PUD Plan, subject to the provisions of Section 4.1 of this Declaration. The Access Easement over Parcel 2 shall be for the benefit of Parcel 1, and the Access Easement over Parcel 3 shall be for the benefit of Parcels 1 and 2. Section 2.3 . Use of Easements . The right to use the Parking and Access Easements shall inure to the benefit of the Owner of the Benefitted Parcel and its respective successors, assigns, tenants, licensees and invitees. Section 2.4 . Reservation of Subsurface Ri hts . Every Owner of Parcel 2 or Parcel 3 shall have the right to any subsur ace use o the Parking and Access _ Easements lying on its respective Parcel and the right to install and maintain any pipes, conduits, wires and the like under, upon or over the Parking and Access Easements which do not unreasonably interfere with the use of the Parking and Access Easements pursuant to this Declaration. Each Owner of Parcel 2 or Parcel 3 shall be solely responsible for the cost of installing, maintaining and repairing any such subsurface use on its respective Parcel, including without limitation, the cost of restriping and repair to the surface areas necessitated by such subsurface installation, maintenance or repair. ARTICLE 3 COVENANTS OF OWNER(S) Section 3.1. Maintenance and Repair of Easements . Every Owner of Parcel 2 or Parcel 3 shall keep the Parking and Access Easements in a reasonably safe condition for pedestrian and vehicular traffic and shall maintain and repair the Owner's respective Parcel, including without limitation, sweeping and snow removal, at the Owner's sole expense . Section 3.2 . Real Estate Taxes . Every Owner of Parcel 2 or Parcel 3 shall be solely responsible or the real estate taxes and installments of special assessments payable with regard to the land valuation of the Parking and Access Easement areas lying within such Owner's Parcel. Section 3.3. Insurance and Indemnification. As of the date that any two of the Parcels are held under separate ownership, every Owner of Parcel 2 or Parcel 3 shall, at its own expense, maintain general public liability insurance against claims for personal injury or death `or property damage occasioned by accident occurring upon, in or about the Parking or Access Easements on their respective Parcels . JSD61182 RC125-45 Each Owner of Parcel 2 or Parcel 3 will indemnify the other Owners and hold the other Owners harmless from and against any and all claims, actions, damages, liability and expense in connection with loss of life, personal injury or damage to property or any of the above, occasioned wholly or in part by any act or omission of the Owner or Parcel 2 or Parcel 3, its tenants, subtenants, agents, employees, licensees or invitees . The insurance coverage required under this Section shall extend to any liability of the parties arising out of the above indemnities . Every Owner of Parcel 2 or Parcel 3 shall, upon written request of any other Owner, provide proof of such insurance to the requesting Owner. Section 3.4 . Other Agreements . Nothing in this Article 3 shall be deemed to prevent the Owners from entering into leases or other instruments with tenants containing provisions which, as between Owners and such tenants, places on such tenants obligations of the nature placed upon the Owners in this Article, and to seek reimbursement from such tenants for any costs incurred by Owners under this Article . ARTICLE 4 RIGHTS OF AUTHORITY Section 4.1. Amendment to PUD . Until the last date that tax increment is remitted to the Authority with respect to the Properties, no Owner may request, consent to, or acquiesce in, any amendment of the PUD Plan that would modify the requirements for parking, access, ingress or egress for any one of the Parcels unless the Authority has approved the proposed modification. After such last date, any Owner seeking an amendment to the PUD Plan shall notify the Authority of such requested amendment at the time such Owner files its application for amendment with the City. Whether before or after such last date, any Owner seeking an amendment _ to the PUD Plan shall also give notice of same to any mortgagee of Parcel 2 and, so long as they shall have an interest in Parcel 2 or Parcel 3 as a tenant, to HealthSpan Health Services Corporation. Section 4.2 . No Duty to Maintain or Repair . Nothing in this Declaration shall impose any duty or obligation upon the Authority to (i) itself maintain or repair the Parking or Access Easements or (u) enforce any of the obligations of the Owners under this Declaration for the benefit of any Owner or third party. ARTICLE 5 MISCELLANEOUS PROVISIONS Section 5.1. Running of Benefits and Burdens. All provisions of this Declaration, including the benefits and burdens, run with the land and are binding upon and shall inure to the benefit of the Owners and Authority and their assigns, successors, and tenants. Section 5.2. Amendment. Any amendment of this Declaration requires the written agreement of all Owners and the Authority . Section 5.3. Enforcement. Any Owner and/or the Authority may enforce this Declaration by appropriate legal action, including (i) an action for a prohibitive or mandatory injunction, (ii) an action for damages, or (iii) both. The failure of any Owner or the Authority to enforce any violation of a provision of this Declaration shall not be deemed a waiver of the right to enforce this Declaration: SSD61182 RC125-45 Section 5.4. No Third Party Benefit. None of the provisions of this Declaration is intended to benefit any person or entity who is neither an Owner nor _ the Authority. IN WITNESS WHEREOF, the Declarant and Authority have executed this Declaration on the date above written. By RICHFIELD STATE AGENCY By - Its By _ Its HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA Its Chairman By Its Executive Director STATE OF MINNESOTA ) } 5S. COUNTY OF HENNEPIN ) - - The foregoing instrument was acknowledged befor a. d this day of _ , 1993 by and the , on behalf of respectively, o Richfield State Agency, a the Notary Public ,7BD61182 -RC125-45 STATE OF MINNESOTA ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 1993 by Thomas Harms and James Prosser, the chairperson and executive director, respectively, of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation. Notary Public THIS INSTRUMENT DRAFTED BY: HOLMES&GRAVEN,CHARTERED 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 JHD61182 RC125-45 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 52 Agenda December 20, 1993 Issue Statement: Public hearing on sale of property to Richfield State Agency (RSA) to provide for the construction of a medical office facility. Background: On November 15, 1993, the HRA approved a Contract for Private Redevelopment with RSA. The contract provides for the construction of a medical office facility of approximately 22,000 square feet near the intersection of West 66th Street and Grand Avenue (an existing structure will be removed). Portions of the contract approved last month are attached to this letter. Article III of the contract establishes the intent of the HRA and RSA with regard to the land transaction (see attached). It is through this transaction that the tax increment assistance would be provided to RSA. The HRA would purchase from RSA, at closing, Parcel 2 for $226,817 plus 7.25$ interest. The purchase price will be paid by the HRA in a series of ten semiannual payments beginning in August 1996 and ending in February 2001. The payment would be made based on the terms of the Limited Revenue Tax Increment Note (Schedule B) approved by the HRA in November as part of the contract (see attached). These payments would be made solely from the tax increment paid by the medical office facility. If the taxes are not paid, the HRA is not obligated to make the semiannual payments. The HRA would convey the property to RSA in exactly the same condition as the HRA received it. Recommended Motion: Adopt a motion approving the attached resolution which authorizes the sale of Lot 2, Block 1 Richfield Bank Addition to RSA. Basis of Recommendation: 1. The sale will provide for a needed medical facility in the community. 2. For rents to be competitive with nearby medical office facilities, the tax increment assistance proposed is needed. 3. This is an appropriate role for the HRA. 4. The "pay as you go" approach to financing this land transaction is cost effective with virtually no risk. 5. The Contract for Private Redevelopment which contains the terms of the sale was reviewed and approved by the HRA in November. Those terms have not changed. 6. The notice of public hearing was published December 1, 1993. Alternative Recommendation: 1. Delay action. 2. Reject the proposal. Discussion/Decision Mode: The developer would like to initiate construction during December, 1993. Respectfully submitted, James Prosser Exec a Director JDP•ds RESOLUTION N0. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY TO RICHFIELD STATE AGENCY IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "Authority") has properly created and. is administering its Redevelopment District (the "District") pursuant to Minn. Stat. Chapter 469 in an effort to encourage the. development and redevelopment of certain designation areas within the City of Richfield; and WHEREAS, among the development activities proposed to be assisted by the Authority in the District include the development of a medical office facility; and WHEREAS, the Authority has heretofore approved a Contract for Private Redevelopment ("Contract") among the Authority and Richfield State Agency, Inc.; and WHEREAS, the Contract calls for the sale of land, to wit" LOT 2, BLOCK 1, RICHFIELD BANK ADDITION ("Property"), in accordance with the subject to the terms of the Contract; and WHEREAS, pursuant to the provisions of Minnesota Statutes, 469.029, subd. 2, notice has been given of a public hearing to consider such sale; and WHEREAS, pursuant to such notice, a public hearing was held by the Authority on December 20, 1993. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority as follows: 1. The sale is in accordance with the redevelopment plan for the District and is furtherance of such plan. 2. The sale of the Property in accordance with and subject to the provisions of the Contract is hereby in all respects APPROVED. 3. The Chairperson and Executive Director are hereby directed to take all actions and do all things reasonably necessary to accomplish such sale in accordance with the subject to the provisions of the Contract. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of December, 1993. Thomas E. Harms, Chairperson ATTEST: Vern Luettinger, Secretary ARTICLE III Ac uisition and Conveyance of Property Section 3.1. Acquisition of Redevelopment Property. The Redeveloper represents that it has as of the date of tYus Agreement obtained title to or options to acquire title to the Redevelopment Property . Subject to the terms of this Agreement, the Authority agrees that it will subsequent to the Redeveloper's acquisition of title to the Redevelopment Property, acquire the .Redevelopment Property from the Redevelo er. The conveyance from the Redeveloper to the Authority shall be by a standard quit claim deed. Immediately after the Authority's acquisition of the Redevelopment Property, the Authority shall, by quit claim deed, reconvey such property to the Redeveloper for development in accordance with the terms of this Agreement. The cost to the Authority of acquiring the Acquisition Parcels and conveying such property to the Redeveloper shall be paid in accordance with the terms of Section 3.6 of this Agreement . Redeveloper shall periodically inform the Authority of the status of its acquisition activities. Section 3.2 . Conve ante of the Redevelo went Pro ert .The Authority shall reconvey title to and possession o the Redevelopment Property to the Redeveloper under a quit claim deed . The conveyance of and the Redeveloper s use of the Redevelopment Property shall be subject to all of the conditions, covenants, restrictions and limitations imposed by the Redevelopment Plan and this Agreement . The conveyance of title to and the Redeveloper's use of the Redevelopment Property shall also be subject to building and zoning laws and ordinances and all other applicable local, state and federal laws and regulations . Section 3.3. Time of Acquisition and Conveyance. (a) The Authority shall, if the Redeveloper is not then in default under the terms of this Agreement, acquire the Redevelopment Property from the Redeveloper and reconvey the Redevelopment Property to the Redeveloper within ten (10) days after the Authority's approval of the Construction Plans and the Redeveloper's obtaining evidence of a commitment for financing reasonably acceptable to the Authority, or on such -other date as the- Authority and the Redeveloper shall mutually agree in writing. The Redeveloper shall take possession of the Redevelopment Property the day of execution and delivery of the Deed by the Authority . (b) Unless otherwise mutually agreed by the Authority and the Redeveloper, the execution and delivery of all deeds shall be made at the principal office of the Authority. Section 3.4 . Title . (a) Prior to and as a condition to the Authority's obligation to acquire the Redevelopment Property, the Redeveloper shall obtain and furnish to the Authority a commitment for the issuance of a policy of title insurance. The commitment must specifically show that an instrument in substantially the form of Schedule D has been duly filed of record. The Authority shall have twenty (20) days from the date of its receipt of such commitment to review the state of title and to provide the Redeveloper with a list of written objections to such title. No objection may be made by the Authority to any defect or encumbrance on the title unless and to the extent that such defect or encumbrance would, if uncured, have the effect of precluding the construction of the Minimum. Improvements . Upon receipt of the Authority's list of JHD61182 RC125-65 s written objections, the Redeveloper shall proceed in good faith and with all due diligence to attempt to cure the objections made by the Authority. Within ten (10) days after the date that all such objections have been cured, to the reasonably satisfaction of the Authority. (b) The Authority shall take no actions to encumber title to the Redevelopment Property between the date the Authority acquires to the date on which the Authority's Deed , is delivered to the Redeveloper . Section 3.5 . Soil Conditions . The Redeveloper acknowledges that the Authority makes no .representations or warranties as to the condition of the soils on the Redevelopment Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the Authority and the City, their governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Redevelopment Property. Section 3.6 . Purchase Price . (a) The Authority shall pay the Redeveloper as purchase price for the Redevelopment Property the aggregate principal amount of $226, 817. Such payment shall be made by the Authority's execution at Closing of a Limited Revenue Note ("Note") in substantially the form of the attached Exhibit B . Payment of the purchase price shall be made entirely in accordance with the terms of the Note. (b) The purchase price to be paid by the Redeveloper for the reconveyance of each Parcel of the Redevelopment Property from the Authority shall be X1.00. Section 3.7 . Taxes and Special Assessments . Redeveloper shall pay all real estate taxes and installments on special assessments due and payable in the year of closing and thereafter. Section 3.8. State Deed Tax. Redeveloper shall pay any State Deed Tax, Library or miscellaneous ee required in connection with the Redevelopment Property Deed, and all fees and charges required in connection with the recording of such. The Redeveloper shall be responsible for recording the deeds . Section 3.9. Other Costs . No cost, fee or other payment relating to any real estate transaction o any nature shall be payable by the Authority to any person or entity; and the Authority's entire obligation in connection with the purchase and sale of the Acquisition Parcels shall be payment of the purchase prices as provided in this Agreement . Section 3.10. Closin Subject to Unavoidable Delays, the issuance of the Note to the Redeveloper ("Closing") must take place on or before August 1, 1994 . If the Closing does not occur by that date, or at such later date as the parties may mutually agree to in writing, then this Agreement may be terminated in accordance with the provisions of Article IX . Section 3.11. Payment of Authority Costs . The Redeveloper agrees that on or before Closing, and as a precondition to Closing, it will pay the costs of staff and of consultants and attorneys retained by the Authority in connection with the creation or modification of the Tax Increment District and the negotiation and preparation of this Agreement and other incidental agreements and documents related to the development .contemplated hereunder. The total extent of JHD61182 RC125-45 Redeveloper's obligation under this Section is currently estimated to be $9, 000. If the actual costs of the Authority pursuant to this Section are more or less than $9,000, the difference will be adjusted at Closing. Section 3.12. Property Reconvened As Is . Redeveloper acknowledges that the Authority shall have no obligation to perform any site work in connection with the proposed transaction or otherwise . The Authority's only obligation hereunder is to reconvey the Redevelopment Property to .the Redeveloper in the condition in which it was conveyed to the Authority. All site work, including, without limitation, grading, soil preparation and demolition of all structures and improvements shall be done by the Redeveloper at Redeveloper's cost . Section 3.13. Hearing Prior to Sale. The Authority shall have no obligation under this Article III until it has held such hearings and made such findings as are required by law with respect to the sale of the Redevelopment Property. JBD61182 RC125-65 8 SCHEDULE B $226,817 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD LIMITED REVENUE TAX INCREMENT NOTE The Housing and Redevelopment Authority In and for the City of Richfield (the "Authority") , hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Richfield State Agency, Inc. , a Minnesota corporation, or its assigns, (the "Owner") , solely from the source, to the extent and In the manner hereinafter provided, the principal amount of this Note, being Dollars ($226,817), together with interest thereon accrued from August 1, 19er annume (the of interest of Seven and Twenty-five Hundredths percent (7.25$) p "Stated Rate") , on the Payment Dates (as hereinafter defined) or such greater amount, if any, which the Authority is required to pay in accordance with the terms of this Note . Interest accruing from August 1, 1994 shall be added to principal on a semi-annual basis on each August 1 and February 1 until February 1, 1996 . Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed to the Owner at its postal address within the United States which shall be 'designated from time to time by the Owner. The Note is a special and limited obligation and not a general obligation of the Authority, which has been issued by the Authority to aid in financing a "project", as defined in Minnesota Statutes Section 469.174, of the Authority consisting generally of defraying certain capital and administration costs incurred and to be incurred by the Authority within and for the benefit of its Lyndale-HUB-Nicollet Redevelopment District (the "District") . EXCEPT AS TO THE OBLIGATION TO MAKE PAYMENTS FROM TAX INCREMENT, THE NOTE IS NOT A DEBT OF THE AUTHORITY, THE CITY OF RICHFIELD, OR THE STATE OF MINNESOTA (THE "STATE") , AND NEITHER THE AUTHORITY, THE CITY OF RICHFIELD, THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THE NOTE, NOR SHALL THE NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT AS DEFINED BELOW. Any payments on this Note which are due on any Payment Date shall be payable solely from and only to the extent that the Authority shall have received as of such Payment Date "Available Tax Increment." For the purpose of this Note, "Available Tax Increment" means any Tax Increment received during the six month period preceding any Payment Date, but not used to make any payment hereon as of such Payment Date, with respect to the certain real property described in the attached Exhibit B hereinafter the "Redevelopment Property"after first deducting from the Tax Increment the following: JHD61182 RC125-45 B-1 1. The Authority's administrative charge equal to ten percent of the Tax Increment . 2. An amount necessary to amortize any claim made against the Authority by entities which are displaced as a result of the Redevelopment over the remaining term of the Note at an interest rate equal to the interest rate on the Note . 3. Any amount of Tax Increment pledged to pay debt service on bonds previously issued within the District . For the purposes of this Note, "Tax Increment" means the portion of the real property taxes generated with respect to the said Redevelopment Property which is remitted to the Authority commencing in as Tax Increment pursuant to Minnesota Statutes ~~ 469.174-469.179. For purposes of this Note , a "Payment Date" shall mean each of the Scheduled Payment Dates set forth on Exhibit A attached hereto, and each additional Payment Date required in connection with any extension of the term of this Note as set forth below, because of changes made in Minnesota Statutes $ X469.174-469.179. Authority shall pay to Owner the payments described herein up to a total of $307, 230 but in no event in excess of $307, 230. To the extent that on any Payment Date the Authority is unable to make a payment from Available Tax Increment equal to the Scheduled Payment. due on such date as a result of having received, as of such date, insufficient Available Tax Increment, such failure shall not constitute a default under this Note and, except as provided below, the Authority shall have no obligation under this Note, or otherwise, to subsequently pay any such deficiency. If, and only if, on any Payment Date there is insufficient Available Tax Increment to make the Scheduled Payment due on such date and such insufficiency is a result of changes made in Minnesota Statutes ~ X469.174-469.179 subsequent to the date of the Contract for Private Redevelopment dated between the Authority and the Owner (the "Redevelopment Contract") , the amount of such deficiency in the Scheduled Payment shall be deferred and shall be paid with interest at the Stated Rate thereon, on the next Payment Date on which the Authority has Available Tax Increment in excess of the amount necessary to make the Scheduled Payment due on such Payment Date, and if such deficiency has not been paid in full by the final Scheduled Payment Date set forth on Exhibit A attached hereto, then the term of this Note shall be extended to include additional successive Payment Dates on which any Available Tax Increment will be applied to the payment of such accrued and unpaid deficiencies in the Scheduled Payments to be made hereunder. In no case, however, shall the term of this Note and the Authority's obligation to make payments hereunder, extend beyond the expiration of the Tax Increment District or February 1, 2001, whichever comes first . This Note shall terminate and the Authority's obligation to make any payments under this Note shall be discharged and the Authority shall have no obligation and . incur no liability to make any payments hereunder immediately upon the occurrence of an Event of Default under the Redevelopment Contract, subject to the Notice and cure provisions of the first sentence of Section 9.2 thereof . This Note shall not be payable from or constitute a charge upon any funds of the Authority or the City of Richfield, and the Authority shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Available Tax Increment, and then only to the extent and in the manner herein specified . JBD61182 RC125-65 B-2 The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the Authority or the City of Richfield or of any other public body, and neither the Authority or the City of Richfield nor any director, commissioner, council member, board. member, officer, employee or agent of the Authority or the City of Richfield, nor any person executing or registering this Note shall be liable personally hereon by reason of the issuance or registration hereof or otherwise . This Note shall be transferable or assignable, in whole or in part, by the Owner without the prior written consent of the Authority; and the Owner may pledge the payments hereunder to a lender or a successor purchaser of the project. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the Authority or the City of Richfield outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Authority or the City of Richfield to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the Board of Commissioners of the Authority has caused this Note to be executed by the manual signatures of the Chairperson and the Executive Director of the Authority and has caused this Note to be dated as of Chairperson Executive Director JHD61182 RC125-45 B~3 EXHIBIT A SCHEDULED PAYMENT DATES AND AMOUNTS OF SCHEDULED PAYMENTS Scheduled Scheduled Payment Dates Payments August 1, 1996 $28 ,170 February 1, 1997 28,170 August 1, 1997 29,409 February 1, 1998 29,409 685 30 August 1, 1998 , 30,685 February 1, 1999 999 31 August 1, 1999 , 999 31 February 1, 2000 , 353 33 August 1, 2000 , 353 33 February 1, 2001 , JHD61182 RC125-d5 B-4 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 51 Agenda December 20, 1993 Issue Statement• Report from CSM•Corporation on interest in redeveloping the ILN area between Lyndale and Emerson Avenues. Background• Mr. Dave Garland of CSM Corporation has been exploring the possibility of redeveloping a portion of the ILN since last summer. There have been meetings with individual property owners during the past several months.. On Thursday, December 16, he met with property and business owners of the area between Lyndale. and Emerson Avenues at the Hampton Inn. Recommended Motion: Listen to Mr. Garland's report on the interest of CSM and the outcome of the December 16 meeting. Basis of Recommendation:, CSM has requested an opportunity to discuss their interest in redeveloping the ILN area with the HRA. Alternative Recommendation: Defer this report to a later date. Discussion/Decision Mode: This matter will be presented at the December 20, 1993 HRA meeting. submitted, Jame Prosser Exec t' a Director JDP:cak HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No.50 Agenda December 20, 1993 Issue Statement• Presentation by•Mr. Steve Quam of QSA regarding Transformation Housing Program. Backaround• QSA recently completed the first Transformation Housing Project at 6500 James Avenue. Recommended Motion: Listen to Mr. Quam's presentation about his experience with the program and ask appropriate questions. Basis of Recommendation: The HRA has requested an opportunity to discuss the Transformation Housing Program with QSA. Alternative Recommendation: Defer discussion until a later date. Discussion/Decision Mode: This matter wil be presented at the December 20, 1993 HRA meeting. Respect lly submitted, Jame ~. Prosser Exec~ive Director JDP:ds