01-21-86 agenda~'S /
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. ~+
Agenda January 21, 1986
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: Request to City Council For Year XII CDBG Funds
Dear Commissioners:
This letter recommends that the HRA propose to the City
Council that the council allocate $180,000 of Year XII CDBG
funds to the HRA for housing related activities for the period
July 1, 1986 through June 30, 1987.
On the 10th of February, the City Council will be soliciting
input from the public and other groups regarding the use of Year
XII CDBG funds. Henenpin County will know about March 1st, what
the anticipated funding level will be for Year XII. There is
the potential for up to a 30~ decrease from Year XI. For Year
XI Richfield received $206,839. The HRA received 75~ of that
amount or $156,124 for housing programs. If Richfield
experienced a 30% reduction in funds, the dollars available
would be $138,582. Thus, the request for Year XII may be for
the entire CDBG allocation to Richfield.
For Year XI (July, 1985 - June, 1986), the CDBG funds were
expended under two programs: New Home ($75,000) and
Rehabilitation ($81,124). Twelve homes will be rehabilitated
with $73,012 for loans and $8,112 for administrative expenses.
New Home received $75,000. Approximately $34,800 is being
utilized at Rae Drive, approximately $1,300 at the Humboldt
Avenue Vo-Tech site and about $400 at 6820-12th Avenue.. A
structure must be acquired for the 1986 Vo-Tech project on 12th
Avenue and a vacant parcel will be purchased for approximately
$31,000. The balance of $7,500 is for administration.
For Year XII (July, 1986 - June, 1987), the use of CDBG
funds is recommended as follows:
Rehabilitation $100,000
Administration $10,000
Loans (approx. 15) 90,000
6 000
New Home $ 5,
This amount would fund purchase
and relocation costs of a property
for the 1987 Vo-Tech project.
Energy, low income conservation $ 15,000
Rehabilitation Program
In its various forms since 1975, the Rehabilitation Program
continues to be a very efficient way to expend CDBG funds.
This program will never have enough funds to meet needs.
However, as the following data indicates, a continuous
contribution of approximately $100,000 every year benefits
many. Since 1976, there have been approximately 210 households
assisted with $751,000 in CDBG funds (through CDBG Year X).
Projecting needs into the future is artifically controlled by
program promotion. The program was last advertised in Spring,
1984• Response was adequate to satisfy the CDBG Year IX, X and
XI demand (approximately 45 households assisted). The last
seven residents on the waiting list have just now been contacted
to complete the expenditure of CDBG Year XI funds. A promotion
is scheduled for Spring, 1986, to prepare for the expenditure of
CDBG Year XII funds.
The target population continues to be lower income elderly
and families. The families are often single parent heads of
household, with children. The elderly are usually on fixed
incomes. The deferred loan program is often the only way for
lower income persons to make major repairs to improve their
living conditions, and restore the condition of their property
without assuming additional significant monthly debt. The
"emergency loan" feature of the program continues to be useful
to ensure that lower income people can resolve what seems like
impossible situations for them: collapsed sewer lines,
deteriorated roofs during the spring rains, and unreliable
furnaces during the heating season.
New Home Program
The New Home Program has been in existence since 1975.
Thirty units of housing have been constructed or rehabilitated.
Ten units are under development. In the process, eleven"garage
homes".have been eliminated, seventeen vacant lots developed,
and two units received moderate rehabilitation. Revenues
approximating $1,600,000, primarily CDBG funds, have made this
possible.
The benefits which aecure to the city because of the New
Home program are many. Approximately $35,000 per year in
increased revenues are being provided to various taxing
jurisdictions. Additional families and their children are being
attracted to the community because of the affordability of new
housing. Substandard blighted structures are being eliminated
as well as vacant lots, thus improving the attractiveness of the
community.
The requested $65,000 provides the acquisition, tenant
relocation and demolition funds needed to obtain another Vo-Tech
site for 1987. However, there are not enough CDBG funds
available (except by special "reallocation" competition with
other Hennepin County Communities) to proceed with major
development projects for housing low and moderate income
persons. A special allocation of $100,000 was secured in 1985
to assist the Fraser Section 8/Section 202 development for the
handicapped.
Energy Program
A primary objective of the Residential Energy Conservation
Program funded by the City and managed within the Housing and
Redevelopment Division is to assist lower income people in
reducing energy consumption and the impact of fuel costs. A
majority of the financing resources for providing home
improvement assistance and Energy Program administration have
come from the Public Utilities (Minnegasco and NSP) and the
State Department of Energy and Economic Development. For 1986,
approximately $23,000 has been received from the City Council to
continue program administration.
Since the program was developed in 1983, approximately 100
lower income households have received "housedoetor" types of
weatherization services totaling $50,000. These funds were
provided by Minnegasco. The City and local banks have arranged
for approximately 135 loans totaling $25,000 in energy
conservation improvements. These reduced interest rate loans
have gone to persons having incomes adequate to support a
monthly loan payment. Staff has also programed educational
workshops and audits that assist residents in identifying and
prioritizing needed improvements.
For the 1986 and 1987 energy program, it has been determined
that the most cost effective delivery of weatherization services
requires that various program elements be combined. The "Home
Energy Check" concept combines an audit, education, and home
improvements together. Minnegasco would pay $50 and the home-
owner $10 for the home energy check audit. The city would use
CDBG funds to pay for needed improvements ($100-$200 per
household). It is anticipated that lower income persons could
benefit from a modified "housedoetor" weatherization and heating
equipment retrofit program. The $15,000 in CDBG funds requested
would be distrubuted as grants to approximately 75 lower income
households that would not otherwise be able to pursue these
improvements.
If funds are not adequate to support this request, staff
will advise the city council on what priorities the HRA believes
should be given the most consideration.
It is recommended that the HRA adopt a motion directing the
Executive Director to propose to the City Council that CDBG
funds in the amount of $180,000 for the Rehabilitation, New Home
and Energy Programs be allocated to the HRA and to make
adjustments in this request if the CDBG funds made available to
the City are insufficient to fund the total request.
For the information of the HRA, all CDBG activities for Year
XI (7/85-6/86) are as follows:
Year Project-Activity Budget
XI 091-General Administration $ 10,000
XI 092-Child Care Subsidy 20,000
XI 093-H.O.M.E. 7,923
XI 094-Public Service Admin. 2,792
XI 095-Recycling 10,000
XI 096-Rehab of Private Property 81,124
XI 097-Scattered Site Acquisition 75,000
YEAR XI TOTAL $20-6
This information includes activities outside the
jurisdiction of the HRA. At the time of dictating this letter,
the city manager had not received the proposed requests for Year
XII CDBG funds from other organizations.
Re eetf y submitted,
r'
John G. Cartwr ght
Executive Director
JCG/eja
HOUSING AND REDEVELOPMENT AUTHORITY ~~'
Office of Executive Director
HRA Letter No. 3
Agenda January 21, 1986
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: Resolution Designating Official Depositories
Dear Commissioners:
Attached to this HRA letter is a resolution naming the First
Western Bank of Richfield as official depository for the
Richfield Housing and Redevelopment Authority for the year
1986. The First Western Bank is pledging collateral in the
amount of $602,763. This collateral pledge means that the HRA's
deposits up to this amount are secured with the depository. In
addition to this collateral pledge, HRA funds. are protected by
the Federal Deposit Insurance Corporation in the amount of
$100,000 making the total protection afforded by this depository
for HRA funds equal to $702,763•
A second resolution provides for designating certain
other savings and loan associations as official
depositories in which the Housing Authority will be able to
invest funds not exceeding the Federal Savings and Loan
insurance coverage of $100,000.
Lastly, a resolution is provided which designates certain
financial institutions as depositories for the investment of
Housing Authority funds in 1986. These institutions offer
government securities in a manner required bylaw.
It is recommended that the Housing Authority adopt the
three resolutions designating official depositories with the
understanding that the HRA could not invest in any of these
depositories beyond the level of pledged collateral or FDI
coverage.
Respectfully submitted,
ohn G. Ca twr' ht
Executive Dire for
JGC/eja
HRA RESOLUTION N0.
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RESOLUTION DESIGNATING THE FIRST WESTERN BANK A DEPOSITORY
OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF
RICHFIELD FOR THE YEAR 1986 AND APPROVING COLLATERAL
BE IT RESOLVED by the Housing and Redevelopment Authority of
Richfield as follows:
That, in accordance with law, the First Western Bank be, and
hereby is designated a depository of the funds of the Housing
and Redevelopment Authority, and subject to the following terms
and conditions:
The said depository shall not be required to give bonds or
other securities for such deposits provided that the total sum
thereof shall not at any time exceed in any depository the sum
for which its deposits are insured under the Acts of Congress of
the United States relating to insurance of bank deposits; but
not in ease such deposits in any such depository shall at any
time exceed such insured sum, said .depository shall immediately
furnish bonds or other security for such excess according to
law, approved by the Housing and Redevelopment Authority of
Richfield.
That said depository shall pay on demand all deposits
therein; and shall pay all time deposits, at or after the end of
the period for which the same shall be deposited, on demand.
BE IT FURTHER RESOLVED, that there shall be maintained a
general account in which shall be deposited all monies. Checks
on this account shall be signed by the following officers or
their facsimile signatures.
Thomas E. Harms, Chairman
John G. Cartwright, Executive Director
BE IT FURTHER RESOLVED, that there shall be a daily interest
savings account. All withdrawals from said account will be for
transfers to the general checking account.
BE IT FURTHER RESOLVED, that the collateral in the amount of
$702,763 deposited for safekeeping at the F & M Marquette
National Bank of Minneapolis, is hereby approved.
Passed by the Housing and Redevelopment Authority of
Richfield this 21st day of January, 1986.
Thomas E. Harms Chairman
ATTEST:
Joan Helmberger Secretary
RESOLUTION N0.
A RESOLUTION DESIGNATING CERTAIN SAVINGS AND
LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES
FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT
AUTHORITY FUNDS IN 1986
WHEREAS, pursuant to Minnesota Statutes, Section 475.66 and
118.17, municipal funds may be deposited in any Savings and Loan
Association which has its deposits insured by the Federal
Savings and Loan Insurance Corporation, and
WHEREAS, the amount of said deposits may not exceed the
Federal Savings and Loan Insurance Corporation insurance
covering such deposits which insurance amount is presently
$100,000, and
WHEREAS, the deposit of Housing and Redevelopment Authority
funds in Savings and Loan Associations and Banks would provide
greater flexibility in the Housing and Redevelopment Authority's
investment program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority of Richfield as follows:
1. It is hereby found and determined that it is in the best
interests of the proper management of Housing and
Redevelopment Authority funds that certain Savings and
Loan Associations and Banks be designated as additional
depositories for Housing and Redevlopment Authority
funds for 1986.
2. The following Savings and Loan Associations anal Banks
are hereby designated as additional depositories for
Housing and Redevlopment Authority funds:
First Federal Savings of Minneapolis
6445 Nicollet Avenue South
Richfield, MN 55423
Minnesota Federal Savings
98 West 66th Street
Richfield, MN 55423
Midwest Federal Savings & Loan Association
3100 West 66th Street
Edina, MN 55435
Twin City Federal Savings and Loan
3330 West 66th Street
Edina, MN 55435
3. It is further found and determined that the purpose of
such depository designation is to facilitate the proper
and advantageous investment of Housing and Redevelopment
Authority funds and that such designation is not
exclusive nor does it preclude the deposit of any
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Housing and Redevelopment Authority funds in other
officially designated depositories of the Housing and
Redevelopment Authority.
~4. The Executive Director is hereby authorized to deposit
Housing and Redevelopment Authority funds in any or all
of the depositories herein designated up to the amount
of $100,000, or such other amount as may be subsequently
permitted by law, such deposits to be in the form of
demand accounts for Public Unit Savings Certificates
purchased by the Housing and Redevelopment Authority of
Richfield, payable to the Housing and Redevelopment
Authority of Richfield on the signatures of the
Executive Director.
Passed by the Housing and Redevelopment Authority of
Richfield this 21st day of January, 1986.
Thomas E. Harms Chairman
ATTEST:
oan Helmberger Secretary
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RESOLUTION N0.
A RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS
AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND
REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1.986
WHEREAS, the Housing and Redevelopment Authority of
Richfield has money which is available for investment, and
WHEREAS, different financial institutions offer different
rates of return on investments, and
WHEREAS, the Housing and Redevelopment Authority of
Richfield shall purchase U. S. Treasury Bills, U. S. Treasury
Notes and other such government securities in the manner
required by law from the institution offering the highest rate
to the City providing greater flexibility in the investment
program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority of Richfield, Minnesota, as follows:
1. It is hereby found and determined. that it is in the best
interests of the proper management of Housing and
Redevelopment Authority funds that certain financial
institutions be designated as additional depositories
for Housing and Redevelopment Authority funds for 1986.
2. The following financial institutions designated as
depositories for Housing and Redevelopment Authority
funds:
F & M Marquette National Bank
Merrill Lynch, Pierce, Fenner & Smith, Inc.
Dain Bosworth, Lnc.
Prudential - Bache
Kidder, Peabody & Company
Miller Schroeder
Norwest Investment Services
Offerman & Company, Inc.
Piper, Jaffray & Hopwood
State Street Bank & Trust, Trust for Short-Term U. S.
Government Securities
3. The Treasurer is hereby authorized to deposit Housing
and Redevelopment Authority funds in any or all of the
depositories herein designated. Such deposits may be
made and withdrawn from time to time by the Treasurer as
his/her best judgment and the interests of the Housing
and Redevelopment Authority dictates.
~. The investment of funds and the reporting thereof
pursuant to this resolution shall be conducted in
accordance with established policies regarding the
investment of these funds.
P ed b the Housin and Redevelo ment Authorit of `~
ass y g P y
Richfield this 21st day of January, 1986.
Thomas E. Harms Chairman
ATTEST:
Joan Helmberger Secretary
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HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 2
Agenda January 21, 1986
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: Amendment to the Housing and Redevelopment
Authority By-Laws
Commissioners:
Article III-Meetings, Section 1., Annual Meeting, of the by-
laws of the Richfield Housing and Redevelopment Authority
provides that the annual meeting of the Authority shall be held
on the third Monday in January. This section does not provide
for holding the annual meeting on the next succeeding day if the
third Monday is a holiday. This language does appear in Section
2 which provides for holding regular. meetings.
Beginning in January, 1986, the third Monday in January has
been designated as the Martin Luther King holiday, and no
governmental business may be conducted on that day. Therefore,
it is recommended that the Authority amend the by-laws to
provide for the annual meeting of the Authority to be held on
the third Tuesday in January of each year.
A copy of the Housing and Redevelopment Authority by-laws
is attached to this HRA letter.
Respectfully submitted,
John G. Ca twr' ht
Executive Dire for
JGC/eja
a-~
BYLAWS OF THE. HOUSING
AND REDEVELOPMENT
AUTHORITY OF RICHFIELD,. MINNESOTA
ARTICLE I - THE AUTHORITY
Section 1. Name of Authority. The name of the Authority shall be the
"Housing and Redevelopment Authority of Richfield, Minnesota".
Section 2, -Seal of Authority. The seal of the Authority shall be in
the form of a circle and shall bear the name of the Authority.
Section 3o Office of Authority, The offices of the Authority shall be
at City Ha11 i.n the City of Richfield, State of Minnesota, but the. Authority
may hold its meetings at such other place or places as it may designate by
resolution,
ARTICLE II - OFFICERS_
Section 1. Officers. The officers of the Authority shall be a Chairman,
A Vice-Chairman,, and a Secretary.
Section 2. Chairman, The Chairman shall preside at all meetings of the
Authority, Except as otherwise authorized by resolution of the Authority, the
Chairman shall sign all contracts, deeds and other instruments made by the
Authority, At each meeting the Chairman shall submit such recommendations and
information as he may consider proper concerning the business9 affairs and
policies of the Authority,
Section 3o Vice-Chairman, The Vice-Chairman shall perform the duties of the
Chairman in the absence or incapacity of the Chairmana and. in case of the
resignat3.on or death of the Chairsnan9 the Vice-Chairman shall perform such
duties as are imposed on the Chairman until such time as the Authority shall
select a new Chairman,
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Section 4. Secretary. The Secretary shall perform the duties of a Secretary
for the Authority.
Section 5. Executive Director. The Authority shall employ an Executive Director
who shall have general supervision over the administration of its business and
affairs, subject to the direction of the Authority. H.e shall be charged with the
management of the housing projects of Authority.
Section 6. .Other Administrative Officers. The Authority may designate an
assistant to the Secretary who shall keep the records of the Authority, shall
act as recorder of the meetings of the Authority and record all votes, and shall
keep a record of the proceedings of the Authority in a journal of proceedings to
be kept for such purpose, and shall perform all duties incident to his office,
He shall keep in safe custody the seal of the Authority and shall have power to
affix such seal to all contracts and instruments authorized to be executed by
the Authority.
The Authority may designate a Treasurer who shall have the care and custody
of all funds of the Authority and shall deposit the same in the name of the
Authority in such bank or banks as the Authority may select, The Executive
Director and the Treasurer shall sign all orders and checks for the payment of
money and shall pay out and disburse such moneys under the direction of the
Authority. Except as otherwise authorized by resolution of the Authority, all
such orders and checks shall also be counter_signed by the Chairman, The
treasurer shall keep regular books of accounts showing receipts and expenditures
and shall render to the Authority, at each regular meeting (or oftener when.
requested), an account of his transactions and also of the financial condition
of the Authority. He shall give such bond for the faithful performance of his
duties as the Authority may determine
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ARTICT<E III MEETINGS
Section 1, .Annual Meeting. The annual meeting_of the Authority shall be
h~1.d on the t~7ird Monday in January at .'7;30 o'clock p.m. at the regular meeting
place of the Authority.
Section 2. Regular Meetingso Monthly meetings shall be held without notice
at the regular meeting place of the Authority on the tk~ird Monday
of each monti~H at 7s3p o'clock p.m. unless the same shall be a legal holiday,
in which event. said meeting shall be held on the next succeeding secular day,
Section 3, Special Meetingso Special meetings of the Authority may be
called by the Chairman,. or two members of the Authority for the purpose of
transacting. any business designated in the call, The call for a special meeting
may be delivered at any time prior to the time of the proposed meeting to each
member of the Authority or may be mailed to the business or home address of each
member of the Authority at least two (2) days prior to the date of such special
meeting, At such special meeting no business shall be considered other than as
designated in the call, but if all of the members of the Authority are present
at a special. meeting, any and all business may be transacted at such special
meeting,
Section 4o uorum. The powers of the Authority shall be vested in the
Commissioners thereof in office from time to timed Three Commissioners shall
constitute a 4uorum for the purpose of conducting its business and exercising
its powers and for all other purposes, but a smaller number may adjourn from
time, to time until a quorum is obtained. When a quorum is in attendances action
may be taken by the Authority upon a vote of a majority of the Commissioners presento
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Section 7d Combining. Administrative ®fficeso Compensationo The compensation
of the Executive Director and other personnel of the Authority shall be determined
by the Authority. Any two or more administrative offices may be combined,
Section 8a Additional Duties. The officers of the Authority shall perform
such other duties and functions as may from time to time be required by the
Authority or the bylaws or rules and regulations of the Authoritye
Section 9o Election or Appointment, The first Chairman shall, pursuant to
his appointment, serve in the capacity of Chairman until the expiration of his
term of office as Commissioner. The Vice-Chairman, Secretary and, except in
the case of the First Chairman, the Chairman shall be elected at the annual
meeting. of the Authority from among the Commissioners of the Authoritye and shall
hold office for one year or until their successors are elected and qualifiedo
The Executive Director shall be appointed ley the Authoritye Any. person_ap-
_poixited~~ to fill the office of Executive Director, or any vacar~Gy therein, shall
have such term as the Authority fixes, but no Commissioner of the Authority shall
be eligible to this office,
Section 10, Vacancieso Should the office of Chairman, Vice-Chairman or
Secretary become vacant, the Authority shall elect a successor from its member-
ship at the next regular meeting, and such election shall be for the unexpired
term of said officee
Section 11, Additional Personnels The Authority may from time to time employ
or contract for such personnel as it deems necessary to exercise its powers, duties
and functions as prescribed by the Municipal Housing and Redevelopment law of
Minnesota applicable theretoe Such personnel may be employees of the Authority,
employees of other governmental organizations, or independent contractors, The
selection and compensation of such personnel shall be determined by the Authority
subject to the laws of the State of Minnesotaa
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Section 50 Order of Businesso At the regular meetings of the Authority
the following shall be the order of business:
1o Ro11 Call,
2. Approval of the minutes of the previous meeting,
3e Reports of the Executive Director.
4o Unfinished business,
5, New businesses
6. Adjournments
All resolutions shall be in writing and shall be cgpied in the journal
of the proceedings of the Authoritys
Section 6o Manner of Votings The voting on all questions coming before
the Authority shall be by roll call, and the yeas and nays shall be entered
upon the minutes of such meeting,
ARTICLE ZV _ AMENDMENTS
Amendments to Bylaws The bylaws of the Authority shall be amended only
with the approval of at least three of the members of the Authority at a
regular or a special meetingo
Includes 4/21/80 amendments
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HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 1
Agenda January 21, 1986
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: Election of Officers for the Housing and
Redevelopment Authority
Dear Commissioners:
The by-laws of the Richfield Housing and Redevelopment
Authority provide that the annual meeting of the Authority be
held on the third Monday in January. (Martin Luther King
Holiday has been designated for January 20. Therefore, the HRA
meeting will be held on Tuesday, January 21). The by-laws also
require that the Chairman, Vice-Chairman, and Secretary be
elected at the annual meeting.
Officers for the years 1982-1985 are as follows:
1982 1983
Thomas Harms, Chairman Thomas Harms, Chairman
Joan Helmberger, Vice-Chair Vern Luettinger-Vice Chair
Michael Freeman, Secretary Joan Helmberger, Secretary
1984 1985
Thomas Harms, Chairman Thomas Harms, Chairman
Vern Luettinger-Vice Chair Vern Luettinger-Vice Chair
Joan Helmberger, Secretary Joan Helmberger
It will be necessary for the commissioners to hold an
election and elect these officers for 1986. This is the only
special item of business required at the annual meeting and
except for this item, the HRA meeting can be conducted as if it
were a regular meeting of the Authority.
Respectf 1 omitted,
r
J
ohn G. Car wrigh
Executive Di ct r
JGC/eja