09-22-75 agendaCITY OF RICHF'IEL,D, IvIINNESOTA
Office of Executive Director
HRA Letter No . 7 5
Agenda September 2.2, 1975
Housing and Redevelopment
Authority Commissioners
City'of Richfield - -
Gentlemen:
Subject: Purchases of Service Agreement
On February 24, 1975, the city council passed a resolution (Resolution No. 5323)
requesting to be included in the Metropoiitan Council Section 8 Lease Existing Grant
application. The resolution also stated the city council's iraent to enter into an
agreement wit'n the Metropolitan Council for the delivery of housing in Richfield. The
City of Fu-cl:tfield wi1'_ z°e(:ei~Te 52 u:lits.
The purchase of serviceti agreement between the ITD~A and the Metro:~ci_itan
Council provides fir admir_istr3tive funding to the city for the housing services . It.
provides both 'start up" and "on-going" administration fur!di.ng as follows:
Initial application fee for 7 months
(variable) ~ $4, 200
Capital outlay 500
Mileage 21.0
Inspection fee 1 , 248
Estimate, start up funding $6, 158
Re-certification $3 , 744
Re-inspection 1 , 248
On-going funding per year for ACC
life of 5 years $4, 992
(Note: These are preliminary estimates and there may be changes
due to HUD regulation changes cr performance).
The start up funding may be variable in that it is or.1y used until the housing unit
is rented. After the housing unit is rented, the on-going fund ($8 per unit per month)
is used as a funding source.
The agreement also outlines the HRA's responsibilities and the responsibilities
of the Metropolitan Council. Vde will start taking applications for the 52 units on
Monday, September 29, 1975. An advertising campaign is planned for the week of
HRA Letter No. 25 -2-- September 22, 1975
September 22, 1975. HUD and the Metropolitan Council are still in the process of.
negotiating details of the agreerrlent and the final agree:rnent may not be ready until
Monday. However, it is critical that we start taking applications on the 29th.
' i, re~mmended that the agreement be approved and that it be executed
Therefore, it s
by the HRA subject. to prior reviev~ by the executive director and the attorney.
Respectfully submitted,
~~ /
Vb'a yne S . Burggra a
Executive Director
WSB/eja
cc: Planning Director
City Attorney
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PUIClil',SL OF SPRVICE AGIZL.E~41;NT
THIS AGI;E>;I~1L,NT, entered into as of this clay, the day -
between the Asetropolitan Couxicil (hereinafter
referred to as the Council), and the City of
{Hereinafter refea~red to as the City) ,
tJITNL::S1~`r't.
' WIi1JREA5, the Council intends tc~ undertake a program of
subsidizing rent payments for lower i.nca~~~e families and fcr the
elderly to assist them in obtaining aderluate l~iousin.g , and
' 4JIi};R]3AS, the Council 'nos received funding from the U;ii.ted
States Dc.pa.rt.rlont o.f_ Housing a~^u t~rbaii Develop~mer>.t (HL'i.~) 17i.,~or_ a
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i lit:1U Section 8 Hot~si_ng Assistance Paymcn_s 1;'rogr~~rn Master Annual
Coa:ltributi.ons Contract (i~2aster Coy! tract) du~c:d ;:o
r Putilic lions .'.g Ag~_~ncy to implE~~r.ent this nrcagra~>>, and
~~Ct J.S ~. -
V;`j,ERE~~~, t.~o City has by resolution incJ.;_cateci i~~s o"esir_o t~~
pa~~ticipate in this p.roaram and to ass_~ st such individuals ar:d =ami_1.~~_es
to obtain decent, sale and sanitary housing iii the City a~: prices
they can afford, and
1`r1iPi~Z~.S, t11e l;C~:111Ci ~- deSl~'E~S tO ~uiCl'1aSe C~:~-La1;7 '_7E:CC:SS~1'1:
administrative services from the City in connectio:z with carryiry
out the program, and
j1Fi1;P.F'115, the Council l.as ~:een duly org~.ni.zed pursuant tJ
i~linr.,t?sota Statutes Section 473.OG, Subd. 3, Section 473P.Oo, Subd. lam,
and has all of the po4~er_s and du'~ies of a housing and redevelopment
auL-liority pursuant to ?,a~-~s 7.9;'1, Chapter 359 under the ;~~zov.-isions of
• the 1`Iunicipa3. Housing and Redc~'~c-'-lopr~ent ~~ct, '~~innesota ~tatu~es,
Sections 462.]__1 to 462.711, and ~~cts amendatory thereof;
I~I019, TIlLRJ~I~'ORL, in consideration of. the mutual covenants
and promisor cont~.ined herein, t}le parti_cs agree as follo-.as
1. Purchase of Service. The Council agrees to purchase
and the City agrees to f-urnish the following services:
a} ~ppli.cation processing,
b) Inspection of housing units,
c) Ongoing program processing and rc-certification,
d) Re-i.r~spection of housir:7 units,
all as more specifically set out in para~~raph 4 below.
2. Price fo:r Services Purchas~~a. The Council agrees to
make the following payrnants `or the services rendered ~Y the City:
a) .Start up bayments . .The Council agrees to pay no more than
for costs and services of the city incurred in con-
nection with the organization and commencement of contract
services v~hich are reimburseable to the Council by the
Department of Housing and Urban Development. Within this
maximum, the Council shall generally be able to pay no more
than per month for the organization and commence-
ment of application processing services, which services may
have been undertaken prior to the effective date of this agree-
ment and shall conclude when substantially all of the initial
program leases have been arranged . In addition, the Council
shall be generally able to pay no more than for the
purchase of non-expendable equipment for use in the program.
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b) Initial ins~ection~ In addition to the start-up ma.cimum
set out above, the Council shall pay the city an inspections fee
c
of up to per unit for units inspected during the time during
which the program is being organized and con-~menced .
c) Continuing program payments . The Council agrees to pay the
city during the term of this agreement following the initial
rent-up of each unit a fee of dollars per unit per month
for re-certifications required in the performance of this contract
and a fee of dollars per unit per month for re--inspection
required in connection with the performance of this contract.
3. Term of Agreement. The services to be purchased and furnished
under this agreement shall commence on and shall con- -
tinue through 1980. This agreement may be cancelled
by the Council upon thirty (30) days' written notice in the event program
funding is not provided or is terminated by HUD. In addition, the
Council and the city shall both have the right to terminate this agreement
at any time for cause by submitting written notice of the intention to do
so to the other party at least ninety (90) days prior to the specified
effective date of such termination . Cancellation or termina':.ion of this
agreement by either the Council or the city shall not affect the rights of
participating families within the city during the terms of their leases .
In addition, the city ~~ri11 be paid for services performed up to the date
of the contract termination on the basis set forth in Section 2 above.
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4. P;?ro~c ram Ol~lig~~t~ions of City. The servicos to be performed by
• the city under this program shall be as follows:
a) Application processing__shall include, but not be limited to,
assisting applicants to complete forms , checking and verify-
ing applicant's income to determine eligibility for participation
in the program , determining appropriate dwelling size , gros s
rent and gross family contribution to the rental payments,
explaining the rights and responsibilities in the program to
successful families who have been issued certificates and
upon request of a participating family, assist in locating
suitable units in the city, examining leases and forwarding
approved leases and Housing Assistance Payments Contracts
• to owners for execution. `The city shall be primarily respon-
~ Bible for the accuracy of information relating to an applicant's
~ program eligibility and verifications and application shall made
~ on forms provided by the Council, samples of which are attached
hereto .
b) Inspection and re-inspection of units shall include an
on-sight inspection and certification of the suitability
of each housing unit prior to initial lease by a participating
family and also the re-inspection of each housing
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unit prior to any ar,i:tial ro-certi.f:ication of tl~e
f:~:,ni.Ly. ~~1rly ~~uch inspection shall be suf_f.ic.erltly
thorough and complete so as to insure der_ez~t.,
safe and sanitary housing for each participating
family. Dousing quality standards shal_1 be as set
forth in `Title 24, Chapter VIII Dart €3£32.109 of the
HUD Regulations and by applicable building codes.
Reports of inspection and re-inspection shall be made
on forr,IS provided by the Council, a sample of which is
attached.
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c) On-going pr_og7_am processing shall include annual re-
certification of tenants az~d i~he maintenance of program
files and records for monthly reports, maintaining ;cont~..ct
with owners of rental units to encourac;e thci_r partici-
pai.ion in and understanding of the prog.r_~un and maiz~taii~ing
]_i_sts of available rental Units.
In order to furnish the services herein purchased, the City
shall provide adequate :staff time and office or program space anti
shall keep the same available to applicants duri_r:g scheduled business
hours approved by the Council. The City shall also provide adequate
signs and directional information to applicants and possible applicants
so that the place and manner of making application can be easily
ascertained. The City shall keep on hand fox distribution adequate
brochures or other information releases prepared by the Council and
sl-rall supplement said brochures with informational releases concerning
local details as appropriate.
`i'he manner of furnishing these services shall bo determined
• by the City_but the parties sha7.1 from time, to tune confer concerning'
the details of the City~s furnislrizlg of the services and. the City
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agree:; to comply with r_~~asonable caelnands of the Council roncer_ni_ng
the s~une. It is the intent of the Counc].]_ to rnaini:a ].n guide]_illes for
t1Te reasonably uniform fuI'nishing of_- services by the s;~ver_a7. cities
participating i_n the area-wide progr~~In so that brochures can be
printed and aff:i.rmative,marketing activities can be conducted on an
ar_ca-wide basis,
5, Pl-ec~ram Ubli~~ations of Council. The parties understand
t1~Tat the"City shall not be required to provide the following program
services and activities. Said activities ar_e the sole responsibility
of the Council,
a) All area-wide affirmative marketing activities sur_h
as preparation of brochures and adver t:isi_ng, contact5_ng
and wor}ping ;with area co;ruaunity groups and rental
property o;-Jners and management groups and: cxp].aininq
• the pro~~ ram to them .
b) Making final determinations of participation, issuing certificates
of family participation, making the housing assistance payments
to owners , determining whether to authorize evictions , and
hearing grievances of applicants o
c) Determining that very low income and affirmative
action preferences and guidelines are being carried
oui, on an area-wide basis and monitoring area-wide
applications for participation and waiting lists.
together with lists of available rental un_Lts in
order to determine any need for reallocation of
program funds.
d) Training local progra~-n staff and preparing operating
. brochures and Lorms.
• e) Collecting all area-~-side data and preparing all housing
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a:'>si_"tince pz:~oclr_arn rcpo.rts foz_ TIUll.
f)' X111 other matter:; contained in the i-Saster Contract.
• 6. Rcp_ort. The City shall dociunent its f:urni~lzizzg of_
services on a monthly basis within ten days ai.ter the r__lose of each
calendar_ month. A]. ]_ documentation slzal_1 be on forms 1~r_ovided by the
Council. The Council reserves tl~e right from time to t.irnr__ to alter.
or amend all foz-nzs as necessary in order to gain information regzzi_red
by IiUD or_ other information necessary to the Council for its pre=gi~~-nl
responsibilities.
7, Tine of Payznezi.t. A11 payments for the services herein
purchased shall be made on a quarterly basis. The City understands
that the Council_ cannot make payments until and unless; funds are'
provided by HUD under the Master Contract.
8•. Records. The Council shall have access to the C~.ty`s
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r_ocords at reasonable hours in order to exercise i_ts responsi.Lility
to monitor the services purchased. 1111 records shall_ be kept by
both parties for five {5) years for_ audit purposes.
9. The parties shall comply with X1.1. requirements imposed
by Title 6 of the Civil. Rights 11ct of 1964, Public Lac,' 88-352 78
Statutes 241; the regulations of the Department or Housing -and Urban
Development issued thereunder, 24 CFR Subtitle A, Part 1, ~l.l;
Title VIII of the Civil Rights 11ct of 1968 and the rules and regulations
issued pursuant thereto; Isxecutive Order 11.063 to the end that, in
accordance with the f'~ct, the IJxecutive Ordor, the rcgul_ations and the
.r_equir_ements, no person shall on the ground of race, co]_or, creed,
religion, national origin or sex, be excluded 1=ror1 par_i:icipation in,
or he denied the l.~enefits oi, the housing assistance pa~Znnents program
• or be excluded from employment or be otherwise: subjected
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to discri.minat.ion. No person sha).l autonlati.cally be e~:cluded from
participation in or_ be denied the benefits of the housi.zig assistance
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; payments program or be subjected'to discrimination in employment
because of membcr.shi_p in a class such as uzunarried mothers, reci.pi.ents
of public welfare, etc. `t'hese provisions are included pursuant to
~ the regulations of the Department of Housing and Urban Developnzezlt
~ ; and the requirements of said Department pursuant to said regulations;
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and the obligations of the Cii:y to comply therewith inures to the
benefit of tyre United States, the said I~epartraent and the Cow~ci.7., any
of which shall be entitled to invo]ce any remedies available by la~~r t-.o
.redress azzy breadz thereof or to compel compliance therevith by the.
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C it_y .
l0 0• SafecTuar_d of client information. 'i'he use o.r d.isc7.o:u?`e
. ~ by any party of information concerning an apl?iicazit or participan'c in
~ the program in violation of any rule of confidentiality or for any
~ purpose not directly coz-znected with the administration of the program
' is prohibited, except on written consent of the applicant or partici_pan
lla All services furnished under_ this Agreement shall be
without charge to any applicant or participating family,
12. All problems or disputes between the parties shall be subject to
review and resolution by the Metropolitan Council's Housing and Redevelopment
Authority Advisory Committee.
13. The city in accordance ~^~ith its status as an independent contractor
agrees that it will conduct itself consistent with such status and that it will not
hold itself out or claim that its officers and employees are employees of the Council.
• By reason hereof, it will make no claim, demand or application to or for any right
or privilege applicable to any officer or employee of the Council , including , but not
]?r?11tF'd t(?, ~,'~nr];'?1F1n'S CnrppF?nc~i-.lC)]? CC'~.7~'?"c c7 (? 17 ;,F'r~T~]C`~~*'l4'n` „n.S'1r~?Ilc"f 1"?F~1'!r~ff S ,
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Isl. IL~Zaster Contract ._ The city understands that tl-re program is subject
to the terms and conditions of the Master Contract between the Council and IIUD and
to HUD's current and future rules and regulations and the city agrees to abide by the
same and to cooperate v~ith the Council in a-ts compliance therewif:h.
No member, officer or employee of the Council, na rnernber of the govern-
ing body of the locality (city and county) in which the project is situated, and no
other public official of such locality or localities who exercises any functions or
responsibilities with respect to the project, during his tenure or for one year
thereafter, shall have any interest, director indirect, in this contract or in. any
proceeds or benefits arising therefrom .
METROPOLITAN COUI~TCIL
BY
CITY OF
BY
CITY OF RICHFIELD, M1NNl;SOTA
Office of Executive Director
HRA Letter- No. ?.4
Agenda September 22, 197
Housing and Redeveloprent
Authority Commissioners
(~itv of Richfie 1d
Ger:tlemen:
Subject: Proposed 1976 HRA Budget
The purpose of this letter is to formally submit to the Housing and Redevelopment
Authority the proposed 1976 HRA budget in the amount of $81 , 067. The proposed bud-
get is balanced with an equal ameunt of revenues including a ms.:~i-rzv.r.~ levy of '/3
mills. The proposed budget provides for programs prw~.ous.y initiates. ry the l~R=~.,
some of which will be moving from the planning stage' 'r_to the implementation stage
in 1976.
Copies of the proposed 1976 HRA budget were distributed last week at the city
Cpuncil budget hearing,
Ralspectfully submitted,
~~
~Alayne S. Burggraaff
Executive Director
VVSB/eja
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