10-22-79 agenda,~
HOUSING AND REDEVELOPP'IENT AUTHORITY
Off ice of Executive Director
HRA Letter No. 41
Agenda October 22, 1979
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Request for Authorization to Amend
Richfield Housing Fund Guidelines
and to Execute Contract Agreement
The Richfield Housing and Redevelopment Authority has ad-
ministered the Minnesota Housing Finance Agency's (MHFA) Rehab-
ilitation Grant Program in Richfield since 1976. This program
provides grants of up to $5,000 to low income homeowners to
uizderta]ce energy and code related home repairs. To qualify, the
adjusted annual income of the homeowner must be less than $5,000
and total assets must be less than $25,000. To date, 41 grants
have been disbursed through this program fo finance $88,762 in
rehabilitation work in local homes.
During the last funding cycle (Program Year III, 1978/79),
the HRA participated in the program which was administered by
Hennepin County. The original contract provided $31,734 to Rich-
field for disbursement. The Richfield HRA distributed all of these
funds as well as an additional $24, 208 provided by the county.
By the end of Program Year III, 1978/79, we had disbursed $55,942.
At the August 13, 1979 HRA meeting, the HRA approved the
proposal for the next funding cycle, Program Year IV, 1979/80.
That proposes that Richfield receive $32,758 in rehabilitation
funds from Hennepin County, which includes $31,734 in grant funds
and $1,024 toward administrative costs.
Hennepin County recently announced plans to modify the pro-
gram administration for Year IV, by changing the allocation system
that has been previously used. Under the new county. program, the
funding allocation would be divided into the same five "planr_incj
areas" used for the distribution of Community Development Bloc]:
Grant Program monies. This system would ensure that each partic-
ipating city in the county has access to monies sufficient to fund
at least one $5,000 rehabilitation grant.
The allocation for each planning area is the total of the
county allocation for the individual cities within the planning
area. Richfield is in planning area rr2.
', HRA Letter No. 41 -2- October 22, 1979
Planning Area 1 - $24,644
Planning Area 2 - $56,378
Planning Area 3 - $51,988
Planning Area 4 - $11,140
Planning Area 5 - $71,570
(Golden Valley, New Hope, St.
Anthony
(Richfield, Eden Prairie, Hopkins)
(Brooklyn Park, Champlin, Dayton,
Maple Grove, Medicine Lake, Osseo,
Plymouth)
(Corcoran, Greenfield, Hanover,
Hassan, Independence, Loretto,
P~laple Plain, Medina, Rogers)
(Deephaven, Excelsior, Greenwood, Lonc_
Lake, Minnetonka Beach,~Mound,
b4innetrista, Orono, St. Bonifacius,
Shorewood, Spring Park, Tonka Bay,
Wayaata, Woodland)
TOTAL $215,720
The $56,373 allocated for Planning Area #2 includes the prev-
iously proposed $32,753 allocation for Richfield; however, it does
not guarantee these monies to Richfield, (You will recall that we
were originally allocated $31,734, but used $55,942 by the end of
Program Year III, 1978/79).
The administration of these funds is scheduled to start Oct-
ober 24, 1979. During the two week period from October 10, 1979
to October 24, 1979, all grants will be accepted and held by
Hennepin County. At the end of that time, the grants will be funded
in rotation, one per city within each planning area.
On January 4, 1980, uncommitted grant funds would be realloca-
ted. A11 cities within the planning districts will have equal
access to the funds on a "first-come, first-served" basis, until the
reallocated grant funds are exhausted.
There is a possibility that Richfield could receive more than
our anticipated $32,758 through this process. However, to implem-
ent this funding mechanism, it is necessary for the HRA to execute
the attached contract with Hennepin County for Program Year IV,
1979/80. This contract has been changed to reflect use of these
"planning areas" in distributing funds.. The information from
Exhibit "A" (the proposed allocation procedure) and Exhibit "B"
(MHFA Year IV Administrative Guidelines) referred to in the con-
tract, has been described in this letter. Our HRA administra-
tive charges, previously guaranteed at a predetermined level, will
now be reimbursed at the rate of 3% of the total grant amount
awarded.
In addition, the P-Tinnesota Housinq Finance Agency has recently
reviewed the Richfield Housing Fund Guidelines, and found that, to
continue our participation in the program it is necessary to make
several changes in our guidelines to conform with their program
rules. A copy of the existing guidelines is attached. The re-
quired changes are as follows:
' HRA Letter No. 41 -3- October 22, 1979
On page 3, II. A.2, a., ownership, must be changed to
read: "The applicants, individually or collectively,
must be a minimum one-third fee owner, a one-third
interest contract for deed purchaser of the property to
be improved, or hold a valid life estate that demonstrates
a qualifying iizterest.
Also page 3, II. A. 2. e., Zoning, delete "This require-
ment may be waived by the Executive Director of the HRA"
Properties must meet zoning requirements to remain eligible.
On page 4, II. A.2. g., Ineligible Items, should be
changed to read "Refinancing of existing debts or mortgages,
payments for public improvement assessments, financing
the addition of luxury items or cosmetic improvements (dish-
washer, gatios, fireplaces, etc.) will not be allowed.
On page 5, II. A. 3. d,, Unrepairable House, should be
changed to read "any house deemed to be unrepairable,
that is, where the cost of needed repairs exceeds 25a of
the property value, when compared to the existing and
future value of the house, is not prudent and shall be
given a low priority by subtracting ten points and may be
denied for approval for funding.
It is recommended that the HRA take the follotaing actions:
1. Authorize the HRA Chairman and Executive Director to
execute a contract with Hennepin County to participate
in the modified rehabilitation grant allocation, program
established for Year IV, 1979/f30.
2. Approve the described amendments in the Richfield
Housing Fund Administrative Guidelines.
Respectfully submitted,
~ ~,
Karl Nollenberger
Executive Director
KN/ej a
cc: Acting Redevelopment Director
RICHFIELD HOUSING
FUND
Amended August 13, 1979
TABLE OF CONTENTS
I. Administrative Procedures 1
A. Responsibilities of Administrators 1
1. Housing and Redevelopment Authority
Commissioners 1
2. Executive Director of the HRA 1
3. Grant Review Committee .~. 1
4. Community Development Specialist 2
B. Re-application and Appeal Procedures 2
C. Minutes 2
II. Eligibility and Priority Guidelines 3
A. Home Improvement Rehabilitation Grant 3
1. Funding Sources 3
2. Eligibility Criteria 3
3. Priority Guidelines 3
B. Incentive Home Improvement Grant 6
1. Eligibility Criteria 6
2. Priority Cri teri a 7
III. Ammendments 8
A. Emergency Flood Grant Program 8
1. Eligibility Criteria 8
2 . Priority Guidelines 8
IV. Organizational Chart 9
RICHFIELD HOUSING FUND
ADMINISTRATIVE GUIDELINES
Thus e Gu~,de.~.%ne~ , as ada pied b y the Nau~s~.ng and Redeve2apmen~ Au~han~%t y a ~y
R~ch~-~e.2d, M.iv~v~e~sa~a, an Ju.~y 24, 1978, a~.d amended av~ ~ecembe~c. 26, 1978,
and Augc~~ 13, 1979, ~e~ ~anth the pnace~~ and etc.~etria pan nev~.ew~.ng app.2ica-
~%av~ fan R~.ch~~.e.Ed Haws~.ng Fund Gnav~ts .
The Ewa exi~5~i,ng ~ype~ a~ R~.eh~~.e.~d Nau~~.ng Fund Gnan~s cuce ass ~ya2eaw~s:
1) Name Impnavemev~t Rehab,%2~,ta~.i.an Gnav~t
2) Ineewti,ve Name Impnavemevit Gnawt
Fnam ~i.me ~a dune, the NRA may, by ne~5a.2u~.%an, d~ean~nue an add gnav~t
pnagnam~s w.ithi.n the R,ieh~~.e2d NawS~.ng Fund. A~ phut ~%me, ~he~se Adm-~n~-
~ra~.%ve Gu~.de2.%ne~s w~i,?.~. be amended ~a ne{y.~ec~ ~ha~se changes.
I. ADMINISTRATIVE PROCEDURES
A. Responsibilities of Administrators
1. The Nau~s~.ng and Redevee.apmen~ Au~han~y Camm,i~s~5~.aner~s ane
ne~spaws~,b.~e {pan the e~s~ab.P.ushme-tit and adap~.%an a~ each pna-
gnam . They ~ e~ ~atcth the ~.v~tev~ and a b~ ee~.ve~s a ~ the pna-
gnam~s . They cvc.e ne~s pavr~~.b2e fan the appnapn~.a~an a~ the
apen~,t~%ng ~und~5. The eamm-i~s~s~.ane~c~s w.i,~2 aka hecuc appea-P~s
~jnam app.~%ean~s ass pne~s evr~ed b y the Exeec~,t~i.ve D-viceetajc..
2. The Execc.ctive D.ur.ec~tan a~ ~11e NRA w~%P.2 nev,~.ew and ~a~uvand any
penti.nev~ ~,n~anma~%an ~a the NRA eamm~~s~.anefr~s . The Fxeeu~%ve
~,viceetan w,%P.2 u2~sa neee,ive wn~itten appea.P~s and ~af~e wha~even
act.%an -ins appnap~ua~e.
3. The Gnav~t Rev~.ew Camm.Lt~tee w~i.2P, be ne~s paws~.b2e fan nev~.ew~ing
the a~~-P.{.ec~ti.avv~ . They w-i.P.~ deny an a~pnave {~und~.ng, bc~s ed
an ~s~a~i~i neeammenda~Lavvs. They w~,2e. be nespawstib~.e ~jan
~.vLtenpnet%ng the gu~.de.2c.nes ass pen the ~.rLtev~t a~ the
Camm-i~s~5tianetus. They w~i,P,e meek cat ~.ea~s~ mawth2y.
Camm~ee membe~h~.p
The Camm.%t~ee w~ eaws,i~s~ a~ {~aun membetcs. Thene w-i~.2 be
ane aj~pa.~v~ed ~s~a~i ~i peh~ an ~jnam each a ~y the ~a.P,eaw~.ng .thnee
depatctmev~t~; Pub.2te LVanh~s De}aantmevrt, Nea~t11 ~epa~men~, and
the P~.anv~,%ng ~epan tmevLt, p.~u~s the Cammun~y ~eve~2a pmev~t
Speei.a,2i~s~, wha w,%2e ~senve ass Cha-ucpetusan a(y the Camm~ittee.
Camm~ee Reeammenda~%aws
Upan nev~,ew a~ each app2.%cat~%an, the Camm~ee w~ d~tehm~.ne
which app.~%ca~iavvs ~sha.2~ be appnaved, wht.ch app~~.cat%aN.s ane
e.P~ig~.b2e bud nab appnaved, and wGu.ch app~E~.ca~,%av~ ane devi,%.ed
accand~,ng ~a xhe nev~,eLV gu,c:de,2.i.ne~s and cnitentia. The a~p2~.-
ca~,%aws which cvi,e denied w~i,2e be ,in~anmed .in wn~ti.ng a~ the
Camm,it~ee'~s dec,i~s~.an.
4. The Cammun~y Deve2a~rnen~ Specia.P~~ w~,22 be nespa-v~.ib2e cyan
~afu.ng and ~nace~s~~.ng a2,C app.P.~.cutiavu, . He/she w~.22 ab~atin
a.~2 nece~s~scuty .in~anma~i.an ~a camp2e~e ctn a}~y~.2~.cati.an. He/she
w~i.2,C ~nesev~ the a}~p.P.%ca~~.ans ~a the Gnant Rev-iew Camm~ee,
w~h cc necammendct~.%an, and w,%P~ ~a.~2aw-up an the Camm~ee'~
dec.i~s,ian.
The Cammuwity Deve2apmewt Spec,iu,2tis~ w,i.P2 cus~s~%:gn }~a~.n~s accand.ing
~a the gtc-Lde-2i.ne~s and ~sub~ec~ ~a the Camm~tee'~s nev~.ew. He/she
w~ necammend the dtisbunsemen~ a~ ~nagnam ~und~s.
The,Cammun.%ty deve~2apmen~ Spec-ia,F~i~~ w~,22 u,P~a }~ne}~cttc.e an annual
hau~,ing ne~atrt fan the R,i.ch~~.e.Cd Hau~s~.ng fund.
B. Re-Application and Appeal
Ap~.2ican~s may ne-app.Ey a~y~en 90 days and may be necvws,idened a~
uny ~i.me an the ba~s,i~s any new evidence. Apy~ea.P~s ~nam necammenda-
~.%ans a~ the Gnant Camm.%~tee mush be ~5ubm~ed ~.n wni~ting ~a Elie
~xecu~i.ve D-ilcec~an wha w~.2e ~anwcurd ~ ~a the HRA Camm~~s~.anetr~s .
The Camm~i~s~~.aneur~s ~ha,2e have ~~.na,2 act,%an vn any appea,E.
C. Minutes
tUn-i.~,ten m~.nu~e~ ~sha,P.e be h.ep~ any each mee~%ng a~ the Gnav~t
Rev~.ew Camm~t~ee. They ~ha.P.2 be cam~2e~ed within den wanFr.%ng
days a~ the mee~i.ng dale and ~shccP~ be 3~.gned by a.22 ~yaun
membe}r~s. The m-inu~e~5 ~ha,~2 khan be ~anwanded ~a the Nau~~%.ng
and Redeve,2a~mevi.~ Authan-%ty Camm~i~s~tianen~s .
<:,,
II. ELIGIBILITY AND PRIORITY GUIDELINES
3
The e.?,i.g~.b~.~i.~ y and pni.G,~,i~t y gu~.de.2~.v~e~ cute tinc2uded ~Gn. each G ~ Elie
ex.i~s t~i.ng HGU,s~.v~g Eu~d Pnagn.cuns . The e.2~g~.b~.~ty gcu.de.P.i.ne~ yGjr. G~1e
pnGgnam cuc.e ~G be eGV~s.~de~~.ed :s epa,~r.a~e aid u{vice2ated ~G the G~l1en
exi~s~ing pnGgnams. Ahy gna{1.t ccpr.P,i.cat,~.Gn w,i~2 be nev~.ewed accGnd~.ng
~G ~12e en~tefc,i.a es~ab.Pi~shed ~jGh ~11e pnGgnam ~G wllieh lee/she .ice app.2ytiv~g.
A. Home Improvement Rehabilitation Grant
1. Fuv~d~i{1g ~jGtC HIR Gn.a{1~s w~ be reeee~ived ~nGm ~GUG ~GUtcee~s;
Elie r~1.~{1ne~sG~u HGwstiv~g E~.{lance Agency avid ~11e CGmmu{1.%ty
Deve~Gpmev~t 82GCh G~.an~. The a~22GCa~%GV~ }xGm ~iH1=A ~,lzce,2e
be cased ~G ~u~.d app~P.%eayl~s be~Gne d.i~s6~ur~s,c{1g CD13G ~und~.
Theh.e ~shcL22 be an a{1KUa,2 ~se~t-u~s~.de G~j $25,000 ~h C~~G ~eev~d~
~G (ae used ~sG.~e~2y ~Gn emengeveey gn.aytit~s.
2. App2.~.ea{tit~s ~Gn a NGme-7mpnGVemev~ Rehab Gnavr~ mu~s~ meek the
e.~%g-%b,%2i~y guide.~i.~1e~ ~2i~~ed be.EGw:
a.
b. pnGp~y
The app~%ea{2t mu6~ be an Gw{1en Gecupa{1,t G~J the 4~Jruc~uhe.
The pjc.G pent y ~G 6 e ~.mp.'~G V ed ~ ham b e used ptc,i.mcur,%(. y ~GtL
~.es~.de{1 fc:a,2 p~ur.pG~S ens .
e. Iviceame avid A~,~se~s
The ~yam,i.2y adju~~ed gn.G~~ ~.ncame mt.vs~ {1G,~ exceed $5,000
a~v~ua22 y a~.d the u~~ ems G ~ the app,P~.ccutit, G,the~ .~ha{1 ~11e
vu,eue G~j the Name be~.v~g timpn.GVed, must {1Gt exceed $25, 000.
d. Af17GLl{~ G~ Gna{1,t
The amauv~t G~ Elie ~G~a,2 gtc.a{1,t may ViG,t exceed $5, 000 pen
hUUbeha.~d.
e.
R~stideY~u~ p,7c~f~en-t~es ace ~G be .irnp.7GVed -ta n,ttai.~1 eomr?~.i.-
a{1Ce cu~i.tl1 muvu.c-e:p2e, he~,~tli, bui..E.d.t{1g, ~,i,~.e pheVC'.{I.~LU11 a-id
hGU,S~CYIg Y11CL(.{I~e~1a{1Ce CGdCS a{1d/G-`L meet e11v-i)I.C{1me{Ltae %S.ta{1da~ds
app~,i.cab~e ~G hocLs~.{tg. Fu1/2 cvrnp~~,a{{ce ca~th ccl'C codes c~~~t;e
E.2c:g~b.~e ImpnGVe{{{e{t-ts
4
nab be negLLUced fan gnawt e,P i.g-ib~.2~i~ty. A ~mafze deteetan
mc.~~ be -ivt~-ta,2.Ced, ~.~ v~a~ ~nev-iau~s2cl pn~5ey~,t, ~,K ~11e hame~
a{~ a2.2 Gnawt necip-iewts. J
9•
h . S ecu~`uty
HIR Gnawts w-%22 be ~SeeutLed by a ~se2{y~eanee.2,2i,r2g 2,ien. The
~sehedu,2e {yan nepayrnewt -v~ ass ~a.~2aev~s:
Peh,<'ad a ~ mime w~itGrin wh.ieh ~ a.2e, ~tcav~ {yen,
eanveyance an ee~~scLtian a/ ne~s-idency oeeutc~ Peneewt
Lynam ~,%me an neeetip~ a~awt Repayrnewt
Pn,ian ~a end ai 36~h {yu.~,2 mawt6i 1000
A~y~etL end a~ 3G~h {~u2,2 mawth uwt-i.2 end
any 48~1i ~yu.~2 mawth 750
A~y~etc end any 48~h ~yu2.e mawt6i un~,2 end
any 60~1i ~yu~2 mawth 500
A~y~en end a~ GO~h ~yu.~ mawth un-t~i,~ end
a~ 72nd ~yu.2~ mawth 250
A~~vL end any 72nd ~yu~ mawth Na nepaymertit
~,. Campettit~ive >3-ides
A.22 wanfz mu~~ hove a m~.wimum a{y ~,va eampe~%tve b~.ds . Art
excep-ti.an may be made ~a -th-i~s ~a.~icy ~.~, due .ta the natu,~.e a~
the nepa,i~c, -i~t mcas~ be dare -imrned-ia~e.~y ctrtd -the,~.e tis na•t
~su~y ~y-ic,iewt dime -ta ~s ecune .tcua b-ids . Haweven, a.~2 tindcv.c.dua,~
nepa,i~s aver $300 muds be aecamparued by a m-irtiirnum a(y tcva bids.
~ . Sweat ~gcL~ty
Pe~c~yanmance a~ nelu~b-i,~i~ta,tc:an wank big a{2 -Lr1dtiV•LdUICE' arvrien-
accupawt, ~ha.~C be pe~Lm-matted pnav-iduig ,tlie app.~icavLt can
~sliacv ab-i.~ity ~a pen~anm wanlz .u'r camp.~uu-ice w-i.tli a,~C aj~p.Ci.eab~e
cadet .
3. App.2,ieaw~s Jan f~IR Gnartits ~a<.~C be as•sc.gy'>ed pc'.clLts bct,sed art .the
gu,ide~.-inks an •tlie ja•2ea~v.~.nc pages . Tlce -ta.tc~e riwnbc,~c a j ;~o~.rLt.s
nece,ived ~slra.22 be used .ta dcte~un.irte •tlia-t app.Ci.earLt'.3 p,~.La.~,~tr/
pan /~urtding. Tlie app.~icawt cu.~tlt -the lr-~glres-t n~unber'L a! pa-rots..
5
w~ be g-i.veY2 ~fc.eate~s.t pn.c:U~Li~ty, arld Asa ~aruth. Po•trtit~l w~.P.2. be
a~s~~.gviced at 2eces•t martitlt.~J, ~U ~.ncanponate vicecu ap;~.~i.car~,t1,. T62e
pU~.n~s w.i,22 be ccs s-~gned cLS ~a22aw~s
a. Incame/weed
Ad j cLs~ed T ncvme
$1, 000 - $1, 999 3 pa~,wt~
$2, 000 - $3, 999 2 pa-LVit~s
$4, 000 - $5, 000 1 pa~.rtit
b. ~vrenc~ y - ne.~c~ted tcepa~~
Pa~.wt~s cu~i.2e be cLS~s~.gvied ces ~U•2.~.Uw~, CCCCUhd,(.r1~ ~U ~12e ccmauwt
~a be ~ peat U~. eneng y-ne,2cLted }cepcc,i~ w~itli i~1~IFA ~uvrd~s
Amaur~,t
$5, 000 - $3, 500 3 pa~.r>,t~
$1,500 - $3,499 2 pa~iv~t~
$-0- - $1, 499 1 pU~.vrt
c. T~i.me v ~ App.P~i,cafic.an
NU~s . 1 - 5 ~v~ ~uvrd,~.Y2g c~c.E'e 3 pa.~wt~s
NUS . 6 - 15 2 patir~,t~s
d.
e. Fmengevcc~ Fur~cduc
App.C%car-Lts nee{ues.ti.rig curd nepcc,~h~ culc:~clr p.Cace~ •t;~em ~.ri a
~S•LtuCLf(.Ull ~( ~irnm•i.ulerct darcge,~. aha,C~ ~~cece•tve h,Lghe~s•t p•'r.ic'c,~tc~
~jah the nepcc,i~. a( ,tlca,t •%tem. Fxccmt~('c-s U~ ,%tems wh•i.ch cacuse
a ~5-~tua~~arr .c: ~ -cmm~i.rler2.t darl~~c. wve~Cd be: ~.rtapc~.`rab•~e r?1'_cunb.i.rrg,
~.eah uic~ noU ~, luc~a,`u-(UCis !u-~crcace. Aru/ app-C~caYtit :~ceque.s.~i.Yig.
emehgericy ~ccnds cuau,2d n.ece-eve du!,~ cc~erit ~uricls ,'tam .tlce
Cammurt,~t~ Devet'_apmert•t Bach G~`cartt Relrab.~(:i.t~,t~on ~ur2ds .ta
nepcwt •tlce eni,~%ea,~ -stern. TGce app-C~CCRY'Lt wact~d .t lter2 be
NUS . 15+ 1 pU-wit
6
a~~~.gned pa~.nt-s aceand.%.ng to h~ /hen nematin~.ng wanFi and be
placed an tl2e watiti.ng .2i~st. Haweve~., ~.~ the app.P~ieant heee~.ved
a tcehab.%~%tat.%an gnavit ~nam the Cammun~y Deve,2apment 13.2aefz
Grant w.~thin ~~.ve yea~vs a~ the date a~ the emengeney gnawt,
h.i~/hen nehab,%P%tat~ian gnan~ and emetcgeney gtcaltit wau2d be
eaws~.dened ~ are gtca~~,t and eau,2d nvt tata2 make than $5, 000.
C. Incentive Home Improvement Grant
1. App~%eav~t~s fan an T neewt,i.ve Grant mint meet the ~a.P 2aw~.ng e2,i,g~.b.~.2~ty
ch,i~e~r,%a
a . Owners hi, p
A,pp2.ieawts mwst be an .ind,i..v.idua,2 fee awnen an a cant~c.aet fan
deed putccha~sen a~ the pnapenty to be ~.mp}c.aved, it4,~n~c:mum aeeupaney
any n~.nety (90) days fan ~yee awne~c~ and twelve (12) manth~s lan
eanttcact cyan deed purceha~setr~s ,ins negcwced.
b. Obtcu:nting a Laan
The app-P.~.cawt mu~s~ be an awnen aceupawt a~ the ~~cu.c~utce and be
a btu,%n,~ng a ~T~.nne~s ata Ha c.ci~~,ng 1=~.nanee Ag eney (~~H1=A) Hame I mpna ve-
meat Laan.
Pna pent y to b e ~im pna v ed ~s hcv22 b e u~ ed pfu.mu~u,2 y ~a n tce~s ~.den~%.ce2
putcpa~s ens .
e. Age a~ pnapehty
Pnaperet.%e~ must be at lecUSt ~~.~teen (15) yeatc~s a~ age an ~,n
need a~ nepuur. to eantcect damage ne~5ult~ng ~jtc.am a nuteucal
d-i~scvs~e}r, an ~a eanneet .items phut cvt.e h«,zandau~ ~a hea-2th and
~sa~ety.
d. Tneame and A~~et~s
The dam-%2y adjusted gna~~s ~.ncame must rat exceed $16,000 annua,P2y
and the a~s~et~ a the app,2~%.eavit atl~.etc than the hawse he~.v~g ~.mpnaved,
mu~5t rat exceed $25,000.
e. Amaunt a~ Grant
The Grant ~ ha-P C be fan 2 0 peh.cev~t a ~y the ca~s~ a ~ the e,P %.g~.b.~e
tcepa-vas up to a maxtimum a~ $1,000 pen hau~sehald.
{~ . Zawing
Ptcapent~i,e~s meLst can~anm to app.2i.eable zawi.ng and,i.nanee an ashen
land wse gcu,de~s. Thtis e~ute}u.a may be waived by t6~e ~xeeut%ve
D,ur.e~ta,~. a ~ the HRA.
7
g. ~.P,%g~.b~2e Impnavemen~s
Re~~.den~.c:a.2 }~rca}~etc~i.e~5 cvice ~a be -i.my~naved ~a a~ta~.v~ camp.2i,av~ce
w~h muvii.e,i.}~a2 heath, bu,%2d~.ng, ~j~tce }~neven~,t.an and haur~~,ng
ma~.n~enanee cadet and/arc meek envticanmev~,ta~ ~s~andurcd~ ap}~.?~%eab.2e
~a hau~s~,ng. Pu,2~ cam}~.P~ianee with a,2.2 cade~s w~i.22 nab be reequ-viced
~j arc grcant e.2i,g~.b.i.e,%t y. The grcav~t may be cued a vi,~ y ~ arc add~Ca nag
Bade-rce2c~ted ~,m~navemen~s arc ~a be app.2.%ed ~awarcd~ puymen~ a~ the
2aan.
h. T ne.2,i.g,~b~e T~em~S
Re~~r..nane.%ng a~ exi~s~i.ng debts an marc~gage~, adhere khan the ~4HFA
.~aan, payments ~atc }aub,P~%c ~,m~navemev~t a~s~s e~5dmen~ , ~~.nanc~.ng a {y
~.uxute y ~em3 an -imprca vemen~s (d.~s hwcu herds , pa~.%a~s , ~-vicep2aee~s ,
eke.) w,i.22 nab be a.~2awed.
,i. Secutc,~ty
Grea~2t~s w~2 be ~seeuned by a ~~ix-yeah ~se2~-canee2.-P~.ng .P.c.en. T ( the
the hacu~.ng unit ,ins ~a.~d an gnavrtee d.i~scan~%nue~s aceupancy wtith~.n
~s~.x yearn ~rcam dale a ~ greav~t, a2.2 arc pant a ~ the grc.av~,t mu~5~ be
rcepa~.d ~a the f-1RA ~in aceandanee w.~.th the ~a.2~aw~.ng:
Perri.ad a~ T~.me w.%th~,n wGiieh
prca perm y .y, ~ a2d
Perceent Repayment
3G~h man~h
3G~h ~a 48~h man~h
48~h ~a GO~h man~h
GO~h ~a 72nd mavr~h
72nd man~h
100%
750
SOo
250
Na Repaymew,t
~ . Campe~ti.ve B~,d~s
A.P.e warcf2 mcu~ have a m~.viunum a~ ~GUG [2) eampe~%t%ve b~.d~s .
Fz. Sweat ~qu,%ty
Pen{~anmanee a~ rc.ehabti2,i~a~%an wareh. by an ~.nd~.v~.ducte prcapercty
awnerc-aecupxnt ("~sweect equtity") ~shaP~ be penm.i~ted prcav~.di.ng
the app.P,i.cav~t can ~shaw ab,%P.~~y ~a pen~arcm warcFz ~.n camp.2%ance
with a,22 ap~.P i,ea6~Ce eade~ .
(f~ameawneru app~2y~.ng Marc a Grcawt ~ha.2~ rceee,LVe the grca~tit bcued
an the ~ju~ ca~s~ a~ rcepa,vu rca~herc khan av~.ey ma~erc,%rc2 ca~s~s. )
2 . There cttce na pr~Larr~~y gu,f.de-P.tne~5 ~jare ~'l~,is prcagnam. Grcav~b atee awareded
by:
a. DcLte and ~%me aU ap}~-P~.cat.~an;
b. Sca,ee a~ need cu de{ytined by ~.neame and rcercwu neee~s~sany.
8
III. AMMENDMENTS TO RICHFIELD HOUSING FUND
A. Emergency Grant Program
1. An ~mehgeney F.2aad Ghawt ~hagham may be made avcu.2ab~2e sham ~,%me ~a
~%me, by a hP~SG~u~t.Un ~cvs~sed by the Haws~.vcg and Redeve.2a~men~
Au~harcity a~ R-~eh~.ieed. The ~ya.22aw~.vcg e.E;i.g~.b,~.P.i~y e~e,i~etu.a ap}~.2y
~a any a~~.P,%ea~%.an ~yah an emehgeney F.Caad Ghav~:
a. Owner htip
A~p2,i..can~ mu/~~ be an tind~.v~,ducce fee awneh ah a can~tc.ac~t ~jatc.
deed puhcha~setc a~ the pn.a~eh~y ~a be ~mphaved. M~,n~.mum aecu-
paney a~ n~.ne~y (90) days ~jatc. fee acune~ and ~,ve.Cve (12) mav~tly,
fah ean~uee~ ~jah deed puhehcc~setrs ti~ hequ.uc.ed.
b. Ph~e~y Use
The ap}~-?~i.car~t mu~5~ be an awneh accupavit a~ the ~s~.uc~utce.
Pha}aeh~y ~a be ~.mphaved ~shu,P.C be u~5ed ph.t.mcvu.2y fah he~s~.den~,i.cte
rJCULrJa~ PAS .
c. Incame and A~s~se~s
The ~am%2y ad~u~~ed gha~~s ~.ncame mcus~ nab exceed $16,000
annua,2Q. y and the a~s~ ems a ~ the ap~,P.%eav~, a~heh khan the vu,2ue a ~
the Name be~,ng ~c.m~Jhaved, mu~5~ nab exceed $25, 000.
d . Ama uwt a ~ Ghawt
The amauv~t a~ the ~a~a,2 ghat may nab exceed $x,000 peh hawseha2d.
e. Zak
Pha}ue~i.~s mws~ can~yahm ~a app.!/%cab.2e zavu.ng ahd~.nance Gt(. a~hP1(
.Card u~ e gu,i.de~s . Th,i~s hequ,in.emev~ may be cuuived b y the Exeeu~ve
~.ur.ee~ah any the HRA.
~i. ~.Pi.g~.b~2e Im}~havemev~1~
Re~s~.dev~,ia2 ~hapeh~.%e,S cuc.e ~a be ~.m~haved ~a a~a,%n eamp.P.%ance w~,th
muwl.ei.pa2 hea2,th, bu.i,2d~.ng, /~,ifce ~hevewtt.an and hau~s~.ng ma~.wten-
ance cadet and/ah meek env~tcanmev~a.C ~s~andcuc.d~s ay~~2.%cab.~e ~a
hau~~ing. Fug camp2~%ance w~h a,e,2 eade~s w~2 nab be hec~u,uc.ed {yah
ghawt e.P ig~.b-t.P,l~y.
g . Tne.~%g~.b.2e T terns
Re~~.nanc~.ng a~ exi~st~.ng debts ah marr~gage~s, pctymewt's ~yah pub~.%c
~.mphavement a~ae~samew~s, ~~.nane.%ng a~ 2uxuhy ,i~tem~5 ah ,e.m~havemen~iS
(d.~s hwc~s l2etr~s , pa~%a~s , ~.vice}~-2aee~ , etc.) w,i,P.C nat be a~,2awed .
h. Cam~et.~t.%ve B~.ds
A.22 wahFz mu~St have a m.~n~mum a~ twa campe~%~%ve b~.d~s. An exeep-
~%an to thtis pa.2%ey may be made cuhen, due to the natuhe a~ tl~e
hepcwc~s , the wan(z mu~s~ be dare ~.mmed%a~e2y. Haweve~c., a.P~.
-~nd~.v.iduu,2 tcepcwvs aveh $300 mu~~ have a m-c:v~,imum a~ Ewa b~.d~.
ti. Swec~,t ~c{u,i~y
Peh.~atc.mance a ~ rehab won
nece~.v~.ng a P.2aad Gtcav~,
cav~t can ~ haw ab,%P.i~t y ~a
app.2icab2e cade~ .
~ . T v~ utcunce Regcwr.emev~
Fz by an .~nd~.v~.dua2 awnen-accupccwt, wha ~
~sha,P.2 be pejcm~ed pnav~.d~.ng the upp-2i.-
petc.{~anm wa~r.F~ .in camp.2%ance w~h a,22
A hameawnen, tuber tcece~.vting mane shun $1,000 ~t.n ~2aad gtcavLt~, e~ithe~.
a ~epana~e gtcav~ an accumu,ea~.an a~ the gtcan~s, mu~5~ apply cyan and
pay fan Hameawnen'~s F2aad Iv~cvt.ance. T ~ the hameawnen ~ vejc.y
2.aw .incame, he~.(.e~j ~jham ~h~ nec~c~,t~cemen~ may be gnav~ted by the
H1~A. The F.2aad Twsutcance Pa.~i.cy mws~ be app2,~ed ~atc w~i~tlun ~cua
weef~ a~ the ~c:.me the ~.2aad gnawt app,2%ca~%an ,ins appnaved. Tl~,~s
negc.~i~cemen~ ~ e~~ec~,c:.ve cyan gnav~ app2-i.cc~.iaws nece~ved a~~e}c.
Oc~aben, 1978.
2. There cui.e na ptc,%a~uty gc,u.de.~(.ne~ fan P.~aad Gnav~t app~P.icavrts . Gnan~s
are awarded an u "~.vr~~-came ~~~ ~senved" bc~s.i~s .
10
Richfield Housing Fund
s Organizational Chart
Department of
Housing and i f'IHFA
Urban Development
HRA Commissioners
Hennepin County
I '
-----------~------------------ Executive Director
~ ~
' Grant Revievr Committee
~ ~
r
' i
Community Development Specialist ---------~
'------ Joe/P~ary City
Applicant Inspectors
7 ~ ,
-- - Contract No• 90488
j? HOME IMPROVEMENT REHABILITATION GRANT PROGRAM
COOPEP,ATION CONTRACT 6dITH TFlE faOUSING AND REDEVELOPMENT
AUTHORITY OF RICHFIELD, MINNESOTA
THIS AGREEMENT between the COUNTY OF HENNEPIN, hereinafter
referred to as the "COUNTY", and the HOUSING AND REDEVELOPMENT AUTHORITY
OF RICHFIELD, MINNESOTA hereinafter referred to as the "AUTHORITY";
WITNESSETH:
WHEREAS, the COUNTY intends to undertake a program for the dis-
bursement of grants to improve residential property for eligible families
and individuals within the County; and
WHEREAS, the COUNTY has entered into an agreement with the
Minnesota Housing Finance Agency (MHFA) to act as an administering entity
for the utilization and disbursement of such grant funds pursuant to
applicable statute; and
WHEREAS, the AUTHORITY, by resolution dated
has indicated its desire to cooperate with COUNTY in the conduct of this
program and to assist such individuals and families to improve their housing
in the City of Richfield.
WHEREAS, the COUNTY desires to purchase certain necessary admin-
istrative services from the AUTHORITY in connection with carrying out the
program;
NOW, THEREFORE, in consideration of the mutu~.l covenants and
promises contained herein, the parties agree as follows:
1. The COUNTY shall make grant funds available for the utilization by the
AUTHORITY in accordance with the provisions of this Agreement, as set
forth in the Proposed Allocation with participating Hennepin~County
Cities, Exhibit A attached hereto and hereby incorporates as a part of
this agreement.
2. The AUTHORITY will apply to the COUNTY and the COUNTY will grant to
-2-
the AUTHORITY up to, but not excess of, 3 per cent of the grant funds
used by CITY to help in defraying the cost of administering the grant
program and providing technical assistance to grant recipients.
3. The AUTHORITY agrees that in all aspects of carrying out the rehabil-
itation grant program, it will comply with the provisions of this
Agreement and regulations set forth in the MHFA Home Improvement Grant
Program Procedural Guides, Year IV (PROCEDURAL GUIDES), Exhibit B
attached hereto and hereby incorporated as a part of this Agreement.
s
For the purpose of this Agreement, requirements, duties, obligations,
and warranties of an "administrative entity" established by the afore-
said Procedural Guides shall constitute requirements and duties of the
AUTHORITY. Obligations and warranties of an "administrative entity"
to the MHFA created by said Procedural Guides shall constitute obliga-
tions and warranties of the AUTHORITY to both the COUNTY and the MHFA.
4. The AUTHORITY shall promptly and diligently utilize the grant funds
approved for its use.
5. The AUTHORITY shall commence to make grants complying with the terms
hereof from and after the date on which this Agreement becomes effec-
tive by providing publicity about the program and technical assistance
to grant recipients in complying with the terms and conditions of said
Procedural Guides.
6. The COUNTY shall use its best efforts promptly and diligently to pro-
vide training to AUTHORITY staff on procedures and techniques for
administering and providing technical assistance to grant recipients
and shall disburse grant funds to the AUTHORITY according to the terms
and conditions of the Procedural Guides.
-3-
` 7. The COUNTY shall reimburse the AUTHORITY for the costs of administering
and providing technical assistance to grant recipients iap to a maximum
allowable pursuant to Paragraph 2 of this Agreement. Such reimburse-
ments shall be made upon request of the AUTHORITY upon execution of
this Agreement after grant funds have been committed. The AUTHORITY
agrees to provide itemized documentation as to the nature of the
expenditures.
8. This Agreement may be terminated at any time by either party upon ten
s
(10) days prior written notice to the other party. In the event of
such termination, the COUNTY shall thereafter disburse grant funds
with respect to all individual grant applications which, prior to the
effective date of said notice of termination, shall have received MHFA
approval and authorization to commence work and each party shall be
required to carry out the terms of the Agreement with respect to each
of such grants. Also, in the event of termination by the COUNTY, the
COUNTY shall reimburse the AUTHORITY for costs expended to the date of
termination up to the maximum allowable pursuant to Paragraph 2 of this
Agreement and upon itemized documentation by the AUTHORITY.
9. The AUTHORITY agrees to:
~A. Maintain such records and provide the COUNTY with such financial,
statistical, and service reports as the COUNTY may reasonably
require for accountability.
B. Allow personnel of the COUNTY and MHFA access to the AUTHORITY's
records relating to the purpose of this Agreement at reasonable
hours in order to exercise their responsibility to monitor the
services.
C. Permit persons from the COUNTY and MHFA to have access to perti-
Went books, documents and financial records on MHF,4 grant funds
relating to the purpose of this agreement for audit purposes and
permit transcription and excerption of the same.
D. Maintain records at the ,4UTHORITY's office for three years for
audit purposes.
10. The AUTHORITY and COUNT`f agree to abide by all applicable state and
federal laws and regulations concerning the handling and disclosure of
private and confidential information concerning individuals. The
AUTHORITY agrees to hold the COUNTY harmless from any claims resulting
from the AUTH,ORITY's unlawful disclosure of private and confidential
information. The COUNTY agrees to hold the AUTHORIT`(, the City of
Richfield, its employees harmless from any claims resulting from dis-
closure of private or confidential information.
11. The AUTHORITY agrees to hold harmless the COUNTY and their officers
and employees from any claims, suits or damages resulting from or
caused by any act or omission of the AUTHORITY, its officers, agents,
contractors or employees in the performance of the services provided
by this contract. The COUNTY agrees to hold the AUTHORITY and its
officers and employees from any claims, suits or damages resulting
from or caused by any act or omission of the COUNTY, it officers,
agents, contractors or employees in the performance of the services
oravided by this contract.
12. Neither this contract nor services to be performed by the AUTHORITY
shall be assigned, sublet or transferred ~,rithout the prior written
approval of the COUNTY.
13. This contract shall commence on the date of its approval by the County
Board and shall terminate on December 31, 1980, or on the date of the last
disbursement of funds with respect to all approved grant applications,
whichever is later.
-5-
14. It is agreed that nothing herein contained is intended or should be
construed in any manner as creating or establishing the relationship
of co-partners between the parties hereto or as constituting the
AUTHORITY as the agent, representative or employee of the COUNTY for
any purpose or in any manner whatsoever. The AUTHORITY and the COUNTY
are to be and shall remain independent contractors with respect to all
services performed under this Agreement. The AUTHORITY and COUNTY
represent that they have, or will secure at their own expense, all
z
personnel required in performing services under this Agreement. Any
and all personnel of AUTHORITY and COUNTY or other persons, while
engaged in the performance of any work or services required by AUTHORITY
or COUNTY under this Agreement, shall have no contractual relationship
with AUTHORITY if employed or contracted by the COUNTY and neither
shall be respectively considered employees of the other. Any and all
claims that may or might arise under the Worker's Compensation Act of
the State of Minnesota on behalf of said personnel or other persons
while so engaged, and any and all claims whatsoever on behalf of any
such persons or personnel arising out of employment or alleged employ-
ment including, without limitation, claims of discrimination against
the AUTHORITY or the COUNTY, their officers, agents, contractors or
employees shall in no way be the responsibility of the COUNTY when claims
arise against the AUTHORITY or the AUTHORITY when claims arise against
the COUNTY. The AUTHORITY does hereby hold the COUNTY harmless from
any and all such claims. The COUNTY does hereby hold the AUTHORITY
harmless from any and all such claims. Such personnel or other persons
shall not require nor be entitled to any compensation, rights or bene-
-6-
fits of any kind whatsoever from the AUTHORITY, including, without
limitation, tenure rights, medical and hospital care, sick and vacation
leave, serverance pay and P.E.R.A.
15. If any term or provision of this Agreement is finally judged by any
court to be invalid, the remaining terms and provisions shall remain
in full force and effect and they shall be interpreted, performed and
enforced as if said invalid provision did not appear herein.
-~-
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by its duly authorized officers and delivered on its behalf, this
day of , 1979•
COUNTY OF HENNEPIN, STATE OF MINNESOTA
Upon proper execution, this
agreement will be legally
valid and binding.
APPROVAL AS TO EXECUTION:
Assistant County Attorney
Date
HOUSING AND REDEVELOPMENT AUTHORITY
RICHFIELD, MINNESOTA
By:
Its
And: _
Its
CITY MUST CHECK ONE:
The City is organi-zed pursuant
to:
Plan A Plan B Charter
Date of Hennepin County Board approval:
Date of Authority approval:
By:
Chairman of its County Board
And:
Deputy County Administrator
ATTEST:
Deputy County Auditor
,. ~ ~.
EXHIBIT A
Basic Grant Amount Allocation Among Participating Hennepin County Cities
The Hennepin County basic grant amount allocation is divided into the five
planning area groups of cities devised for the Community Development Block
Grant Program. This system ensures that each participating city in the
County has access to monies sufficient to fund at least one entire grant.
The allocation for a planning area is the total of the Metropolitan Council
allocation for the cities within the planning area.
Planning Area 1 $24,644.00
Planning Area 2 56,378.00
,Planning Area 3 51,988.00
Planning Area 4 11,140.00
Planning Area 5 71,570.00
TOTAL $215,720.00
Following is a list of the participating cities within each planning area.
Planning Area 1:
Golden Valley, New Hope, St. Anthony
Planning Area 2:
Eden Prairie, Hopkins, Richfield
Planning Area 3:
Brooklyn Park, Champlin, Dayton, Maple Grove, Medicine Lake,
Osseo, Plymouth
Planning Area 4:
Corcoran, Greenfield, Hanover, Hassan, Independence, Loretto,
Maple Plain, Medina, Rogers
Planning Area 5:
Deephaven, Excelsior, Greenwood, Long Lake, Minnetonka Beach,
Minnetrista, Mound, Orono, St. Bonifacius, Shorewood, Spring Park,
Tonka Bay, Wayzata, Woodland
For the first two weeks of the funding cycle, all grants will be held by
Hennepin County. At the end of that time, thr, grants will be funded in
rotation, one per city, within each planning area. This process will
continue until January 4, 1980 when the remaining basic grant amount will be
allocated as further specified below.
All uncommitted grant funds will be reallocated generally to Hennepin County
and all participating communities will have equal access to the funds. Grant
applications will then be processed by Hennepin County on a first come, first
served basis until all unexpended funds, if any, are spent.
1
r
HOUSING AND REDEVELOPb1EI~IT AUTHORITY
Office of Executive Director
HRA Letter No. 40
Agenda October 22, 1979
I~ousing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Proposed Amendments to the Uniform Relocation
Assistance and Property Acquisition Policies
Act of 1970
--.
On May 9, 1979, Senator James R. Sasser, Tennessee, introduced
a bill (5.1108) into the U. S. Senate which would significantly
amend the Uniform Relocation Assistance and Property Acquisition
Policies Act of 1970. Initially, it was assumed that the bill would
have virtually no support. However, in recent months, numerous
members of the Senate have expressed increased interest in this
legislation, and Senator Durenberger is reported to be in support
of it. However, the bill is still in committee for hearings, and
amendments may be made.
P~hen Senator Sasser introduced his bill, he requested that ex-
cerpts from the digest of the Comptroller General's report to the
Congress titled: "Changes Needed in the Relocation Act to Achieve
More Uniform Treatment of Persons Displaced by Federal Programs"
be printed in the Congressional Record. That report caused Senator
Sasser to state that the Uniform Act of 1970 had "laudable goals."
He observed that: "It was designed to insure that homeowners, ten-
ants, and small businessmen were adequately compensated for their
relocation expenses. However, that goal has not been met. Thirteen
federal agencies have developed inconsistent, inequitable, and con-
fusing, differing formats, terminologies and guidelines."
Tn Seattle, for example, a business was compensated $49-,000
for 81 changes required to be made in a replacement facility, An-
other federal agency would have compensated this business for only
about 10 of these changes. On the opposite end of the spectrum,
almost 1,000 low-income and elderly families in St. Louis were
evicted from a neighborhood being revitalized with federal assist-
ance. None of them received relocation benefits.
Mr. Sassor is introducing his bill in hopes of accomplishing
the following:
-eliminating the difference in benefits by establishing
a central authority which would issue uniform regulations
for use by all federal agencies;
HRA Letter No. 40 -2- October 22, 1979
-making relocation
displaced by the
projects;
benefits available to all. persons
commencement of federally assisted
-giving recognition to inflation by increasing the
maximum allowable benefits.
The proposed benefit increases include:
-A person/business may be eligible for benefits even if
only indirectly affected by acquisition; for instance
if they are utilizing space adjacent to the site being
acquired;
-Moving expenses under the fixed payment schedule would
have a maximum of $600 rather than $300;
-The dislocation allowance which is paid to someone who
moves on the fixed payment schedule would increase to
$400, from $200;
-The payment in lieu of moving and related expenses for
businesses will range from $5,000 to $20,000 rather than
from $2,500 to $10,000;
-The replacement housing payment would have no dollar
limit. The limit now is $15,000. This payment would also
compensate someone for increased taxes which result when
moving from an acquired dwelling to the replacement dwell-
ing, although it would remain a one-time payment. If the
taxes on the acquired dwelling were $800 and the taxes on
the replacement dwelling were $1,000, the increased tax
payment would be $200 times the life of the new mortgage;
-The maximum replacement housing payment for tenants and
certain others would be increased from $4,000 to $8,000
-Administrative costs for HRA personnel would be higher
because of the detailed relocation analysis which would be
necessary prior to undertaking relocation; and,
-In acquisition, a property owner could request two apprais-
als, to be paid for by the acquiring agency, if he did not
agree with the just compensation offer. Now, the owner
can have one appraisal paid for by the displacing agency.
If adopted in its present form, these amendments would result in
higher acquisition and relocation costs. Without question, these
benefits would be required to be paid to those people who are dis-
placed by city programs funded with federal money. It is still
questionable whether these benefits would be required to be paid
to persons displaced by a project such as our L/H/N area redevelop-
ment.
' ~ HRA Letter No. 40 -3- October 22, 1979
Several months ago, the Minnesota Attorney General delivered
an opinion, at our request, regarding the payment of relocation
benefits within the L/H/N, a non-federally funded project. It was
his opinion that the HRA was required to pay relocation benefits
under the Uniform Relocation Assistance and Property Acquisition
Policies Act of 1970 as it existed on May 23, 1972. For this reason,
it appears that these amendments would not be applicable to the L/H/N
project. However, those persons who might be displaced by the HRA
if these amendments becorne law would be very unhappy if they were
not provided with the increased benefits.
Senator Sasser is attempting to correct some problems with the
Uniform Act of 1970. To establish a central administrative depart-
ment to formulate relocation policy is desirable. To increase bene-
fits to reflect higher costs to persons displaced is desirable.
However, to establish a replacement housing payment without a maxi-
mum is not desirable. Compensation for increased taxes could be
substantial, and it would be very difficult for a public agency to
budget for replacement housing payments. Doubling of the replacement
housing payment to tenants and deletion of the requirement for match-
ing funds from the displacee could result in substantial cost increases.
Further, it would apparently be possible for a tenant to receive the
payment and relocate to a dwelling that was not decent, safe and
sanitary. This seems to be in opposition to the basic redevelopment
objective of upgrading housing.
It is recommended that the HRA authorize the staff to contact
our federal legislators to express support of those provisions in
the amendment which would result in a more centrally administered
relocation program and provide more equality in benefit distribution,
while expressing concern that the proposed changes in the replacement
housing payment and the payment to tenants and certain others seems
excessive.
Respectfully submitted,
~)~ ~ ~~ ~ ,
Karl Nollenberger
Executive Director
KN/~~e j a
cc: Acting Redevelopment Director
Acting Planning Director