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01-17-83 agendaHOUSING AND REDEVELOPMENT AUTHORITY Off ice of Executive Director HRA Letter No. 4 Agenda January 17, 19.83 Housing and Redevelopment Authority Commissioners City of Richf field Dear Commissioners: Subject: Resolution Authorizing Continuation of Voluntary Acquisition Program and Approval of Guideline Changes .Since 1980, the HRA has operated a voluntary property acquisition program called the "Voluntary Acquisition Program." This program allows property owners to voluntarily offer-their "garage" houses and other.-types of housing for -sale to the HRA. The staff, in turn, using certain criteria, can .negotiate an acceptable purcha e price, purchase the property, and create alternative housing opportunities. This is a more simplified, and. less expensive way to purchase property than that required by traditional HUD regulations. The Voluntary Acquisition Pro- gram has utilized Community Development Block Grant funds to acquire scattered sites for housing opportunities. For example, the purchase of the property at 6822 Queen Avenue for a Vo-Tech rehabilitation project, was undertaken as part of this program.. To permit the program to continue, some changes in the: gude- lnes are needed. The following information summarizes program regulations, discusses the proposed changes, and recommends HRA authorization. A ropy of the existing guidelines, and the proposed guidelines are attached to this HRA letter. Also attached is a resolution authorizing continuation of the program. Regulations formulated by HUD allow two types of acquisition procedures.. These regulations are discussed in the federal Uni- form Relocation Assistance and Real Property Acquisition Policies Act of 1970, commonly called the Uniform Act. In Richfield, the. Uniform Act permits acquisition of property outside targeted development -areas (outside the L/H/N) to be negotiated without full appraisals and without paying certain relocation benefits. This is suitable as long as the site to be acquired was not prev- iously targeted for acquisition and the property owner voluntarily notified the HRA that their property was. available for sale. Tar- geted development areas must proceed with the more complicated traditional acquisition process requiring property appraisal, re- ~~iew appraisal, determination of fair market value (just compen- sation) and purchase of property with limited negotiations. HRA Letter No. 4 -2- January 17, .1983 Unless the Voluntary Acquisition Program is used, the HRA .must pay relocation benefits. These benefits- include a maximum payment of up to $15,000 to a homeowner for assistance in secur- ing a replacement dwelling; a maximum payment of $1;000 per year for four years should an owner choose rental housing when re- locating; and payment for moving expenses ._ Rental housing tenants are eligible to receive up to $4,000 to help pay for the increased rent at a replacement unit; as well as payment of their moving costs. Because renting property is considered a business,. the property owner would also be eligible for up to $10,000 in relocation benefits.. For single family and duplex housing, the amount is usually approximately $2,500. Even if the property owner. waives the .other relocation benefits, through the Voluntary Acquisition Program, the tenants are still eligible to receive relocation benefits. Changes are appropriate in the guidelines at this time be- cause HUD has reinterpreted its administration of voluntary acquisition programs. HUD has allowed the process to become more flexible and less complicated to the acquiring agency and to still protect the rights of the homeowner. Ba"sically, the proposed changes;-are-as follows _ -In item 4 of the:._old guidelines, a full appraisal and °fair market value" (just compensation) had to be de- termined. This is no longer required. .The new guide- lines explain this in Item 5 as the "negotiated price wi l be a justif fable public expenditure." The staff will use assessor's data, realtor's data, and sometimes secure full appraisals- to determine an appropriate prop- erty value. Negotiations with the property owner will then be initiated. Rather than acting to set just compere- sation and authorize .negotiations, the HRA board will act to accept the negotiated price and. authorize purchase. This is discussed in Items 6 and 7 of the proposed guide- l frees . -Item 6 of the old guidelines has been deleted since-the negotiated price, if accepted by the HRA, becomes the purchase price. Determination of fair market value is not required. The staff will conduct all negotiations with property. owners and make all purchase agreements contingent to HRA acceptance of the negotiated price and authorization to proceed with the purchase. Negotiations will be initiated only on prop- erty which meets the program objectives and criteria. Additional minor changes have been made (which are made available to property owners tions) to make them easier to understand. A has been added, and the "Purchase Procedures rewritten so that property owners can better acquisition process. in the guidelines prior to negotia- "Def inition" section " section has been understand the HRA Letter No. 4 -3- .January 17, 1983 It is recommended that the HRA approved the proposed Voluntary Acguisi,tion Program Guidelines, and adopt the attached resolution authorizing the continuation of the Voluntary Acquis- ition Program for the period February, 1983 through January, 1984. HUD has reviewed the proposed changes in the guidelines and found them acceptable. Respectfully submitted, ~~ ~~~~~ Karl Nollenberger Executive Director cc: Community Development Director Housing and Redevelopment Coordinator KN/ej a 1/17/83 Voluntary Acquisition Program Guidelines Program Objectives - Eliminate the blighting influence of substandard housing, thus improving residential neighborhoods. - Increase-the supply of available standard housing in the city through new .construction and substan- tial rehabilitation.. - Alleviate the shortage of standard housing for. low and moderate-income families. These objectives will be achieved through acquisition of improved property or vacant lots. Definitions HRA: Housing and Redevelopment Authority in and for the City of Richfield HUD: The Department of Housing and Urban. Development Voluntary Acquisition: The acquisition (purchase) of real property which results from a voluntary proposal to sell from the owner in response to a public invitation or solicitation for offers. Purchase Procedures 1) Property will be purchased on a "Solicitation of Sale" method of advertising in accordance with HUD regulations and direction. 2) Sale to the HRA must be on a voluntary basis. It is the responsibility of the property owner to respond to a "solicitation" by indicating in writing a willingness to sell with a voluntary waiver of relocation benefits. Tenants are entitled to receive relocation benefits prescribed by HUD regulations. 3) Once a "willingness to sell" proposal has been received, a purchase is dependent on funding availability and HRA authorization. 4) The HRA will not buy the property unless a mutually satisfactory negotiated purchase price is determined. 5) The negotiated price will be a justifiable public expenditure. 6) Once a negotiated price has been reached, a purchase agreement and "waiver of relocation payment" form may be executed by the seller. These seller authorized agreements are effective only if the HRA authorize s the purchase. -2- 7) Purchase may proceed once the acquisition is authorized by the HRA. 8) HUD must review and approue the. program. The approval will be for one year. To implement another year, HUD will review and evaluate program performance. Property Selection Criteria Property will be inspected, evaluated and recommended for purchase if it meets criteria #1, a or b or c or d; and #2 or #3 1) The property is: a. Substandard as to condition, size or usage. b. obsolete and of faulty design for the block and area in which it is located. c. a deteriorating factor which has caused blight to other adjoining properties. d. detrimental to the safety or health of abutting properties in the block. .~ 2) The parcel could become a marketable lot which could pro- vide a site for new housing or substantially rehabilitatec2 housing. 3) Property which has been voluntarily proposed for purchase by the owner which in the judgment of the HRA would help alleviate the shortage of housing for low and moderate- income families if acquired. .. ~~~~H ~'~ ,J .~ ' Ir~~ .y .~~r' B/16/g0 Voluntary Acquisition Pro?ram Guidelines The objectives of the program are to: 1. Eliminate the blighting influence of substandard housing, thus improving residential neighborhoods. 2•. Increase the supply of available standard housing in the City through nett' construction and-substan- tial rehabilitation. 3. Alleviate the shortage of standard housing for low and moderate income families. These objectives will be achieved through.. acquisition of improved property or vacant lots. The following .guidelines will be used in purchasing homes and vacant .lots under the Voluntary Acquisition PrograM. I. Purchase Procedures 1. Property will be purchased on a "Solicitation.of Safe" method of advertising in accordance with HUD regulations. 2. Sale to the HR.4 must be on a voluntary basis as defined by HGTD regulations. 3. Owner must be willing will be attached to t: however, are entitled by HUD regulations. 4. An appraisal shall be market value. .~ j I-~aY~'~':._ y:a;~~;i5;:~> . ~'~-t: ,. :;, - . ~~Y.: .~ ~ sari W+ to sign relocation wairer, Which ze purchase offer. Tenants, to receive benefits as perscribed made by the HRA to determine fair 5. The HRA Board shall authorize negotiations after con- sidering staff recommendations. 6. Property can be purchased For less. than fair m;irket c•aluo, but the owner must receire a written statement of ~-zlue of property. Owner must state in writin; he will sell for less than mar.~et valuc.~. ?. FiUD must review anti :ipF~ro~•c.• ttic pro;;rarti. Tiia ;tp~~ro~-al will be for one y ear . Tv imp lecn~.~n t a second 5•c~ar , IiL~D will rcvie*.r and evaLu:ite prc~;;ram p~rfornl;tnce. II. Property Selection Criteria Property will be inspected, evaluated and recommended for purchase. if it meets criteria =1, a or b or c or d; and ~2 or T3. 1. The property is: a. .substandard as t~o condition, size or usage. b. obsolete and of faulty design for the block and area in which it is located. r c. a deteriorating factor which has caused blight to other adjoining properties. d. detrimental to the safety or health of abutting properties is the block. 2. The parcel could become a marketable lot which could provide a site for new housing or substantially rehab- ' ilitated housing. 3. Property which has been voluntarily proposed for purchase by the owner which. in the .judgment of the HR4 would help alleviate the shortage of housing for loco and moderate , income families if acquired. ~' i ~+4. ", .S+} ~ a .; ice' . }:. _ ~"'~'' ' HRA RESOLUTION NO. AUTHORIZATION TO CONTLNUE VOLUNTARY ACQUISITION PROGRAM WITH CHANGES WHEREAS, from time-to-time, the Housing and Redevelopment Authority in and for the City of Richfield (HRA) acquires property ' on a scattered site basis for creating housing opportunities; and WHEREAS, the. Department of Housing and Urban Development (HUD) has regulations collectively called the Uniform Act, which. the HRA must adhere to when acquiring property with Community Development Block Grant Funds; and WHEREAS, the HRA has operated-a Voluntary Acquisition Program in accordance with those regulations,. and wishes to continue operating this program, with changes. . NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and-for. the City of Richfield: 1. That the. Executive Director may proceed with another Voluntary Acquisition Program year. 2. That the procedural guideline dated 1/17/83 are authorized and accepted. Passed by-the Housing. and Redevelopment Authority in and for the City of Richfield this 17th day of January, 1983. Thomas E. Harms, Chairman ATTEST: Secretary HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 3 Agenda January 17, 1983 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Resolution Designating Official Depository Attached to this HRA letter is a resolution naming the Summit State Bank of Richfield as official depository for the Richfield Housing and Redeveloprn.ent Authority for the year 1983. The Summit State Bank is pledging collateral in the amount of $566,690. 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 $666,690. An add tionaT resolution is attached, providing for des- ignation of 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 at $100,000. Respectfully submitted, ~~~ ~~~~ Karl Nollenberger Executive Director cc: Finance Coordinator KN/eja RESOLUTION N0. A RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 1983 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 Re- development Authority funds that certain Savings and Loan Associations and Banks be designated as additional depositories for Housing and Redevelopment Authority funds for 1983. 2. The following Savings and Loan Associations and Banks are hereby designated as additional depositories for Housing and Redevelopment 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 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 17th .day of .January, 1983. Thomas E. Harms Chairman. , ATTEST: _ - Secretary HRA RESOLUTION N0. RESOLUTION DESIGNATING THE SUMMIT STATE BANK A DEPOSITORY OF FUNDS OF-THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FOR THE YEAR 1983 AND APPROVING COLLATERAL BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with law, the Summit State 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 case 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 Karl Nolienberger, 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 $566,b90 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 17th day of January, 1983. Thomas E. Harms Chairman ATTEST: _. Secretary HOUSING AND REDEVELOPMENT AUTHORITY Off ice. of Executive Director Housing and Redevelopment Authority Commissioners City of Richf field Dear Commissioners: Subject: Election of Housing Authority Off cers HRA Letter No. 2 Agenda January 17, 1983 and Redevelopment 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. The by-laws require that the Chairman, Vice-Chairman and Secretary be elected at the annual meeting. The officers for 1982 were Thomas Harms, Chairman;. Joan Helmberger, Vice-Chairman, and Michael Freeman,- Secretary. It will be necessary for the commissioners to hold an election and elect these officers for 1983. This is the only special item of business required at the annual meeting and the remain- der of the HRA meeting can be conducted as a regular meeting of the Authority. Respectfully submitted, ~..~. N~-L~,.~.t Karl Nollenberger Executive Director KN/eja cc: City Clerk Finance Coordinator - HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 1 Agenda .January 17, 1983 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject : Oath of Office At the January 10, 1983 city council meeting, the city council approved the appo:~triient of Vern Luettinger to the HRA to.fll the unexpired term of Michael Freeman, who has resigned from the Housing and Redevelopment Authority-. This term will expire in October, 1985. The first order of buisness at the January. 17, .198 3 HRA meeting will. be the Oath of Office for.-Vern Luettinger. Respectfully submitted, ii ~~ ``11 ~~ Karl Nollenberger Executive Director - cc: City Clerk ~KN/ej a