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02-12-79 agendaHOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 9 Agenda February 12, 1979 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Report and Discussion of Requirements Relating to Closing on Property for Financial Properties Developers, Inc. The HRA is scheduled to turn the land for the K-Mart Store over to Financial Properties Developers, Inc. on March 1, 1979. There is an item scheduled on the February 12, 1979 HRA agenda for the purpose of discussing the remaining requirements which must be met before this land can be conveyed to the developer. The Plan- ning and Redevelopment Director will be prepared to present a brief status report on this project at that time. Respectfully submitted, e._~~~ a~~Lx oy L. Wilde Acting Executive Director JLW/jef cc: Planning and Redevelopment Director City Attorney / / , t / V/ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 8 Agenda February 12, 1979 .~fL.o.Po3~..1g -,= g-:~.as~ Housing and Redevelopment ~ S -A Authority Commissioners City of Richf field Dear Commissioners: Subject: Authorization to Request Proposals, New Home Program Late in 1975, the Housing and Redevelopment Authority im- plemented the Richfield New Home Program to help eliminate substandard residential properties, while providing additional houses which would be affordable to low and moderate income families. The New Home Program was to improve the city's resi- dential neighborhoods by: 1. Eliminating the blighting influence of sub- standard, vacant houses. 2. Developing new houses on vacant lots. 3. Promoting the development of new houses to replace substandard, vacant houses. The New Home Program has been implemented in two different ways. First, the HRA purchases substandard housing at market value, razes the house, and resells the vacant land for construct- ion of a new home. The HRA has also purchased substandard houses that could be remodeled and repaired and has cooperated with the Hennepin County Vocational Technical Institute to com- plete such remodeling prior to resale of the house. In November, 1978, the HRA authorized the staff to submit a grant application to the Metropolitan Council for $162,500 to be used in connection with the New Home Program, specifically to provide housing for large, low-income families. On January 22, 1979, the HRA received a report and recommendation from the ad hoc housing committee that the HRA use these grant monies to purchase five or six substandard homes, and sell the properties to a private developer for construction of new homes on these sites. The $162,500 grant would be used by the HRA to acquire the properties that would be turned over to the developers for new construction. The new homes would be owned by the developer and leased to large, low and moderate income families. HRA Letter No. 8 -2- February 12, 1979 After receiving the report of the ad hoc housing committee on January 22, 1979, the HRA directed the staff to proceed with implementing the committee ''s recommendation. The purpose of this letter is to request specific HRA authorization to implement a process for achieving the goals described in the recommendation of the ad hoc housing committee. The process which must be followed in accomplishing this program includes the following steps: 1. Request proposals from interested developers of single family housing, at the same time contacting owners. of identified substandard property in the city about the possibility of acquiring the property. 2. Select a developer and enter into an agreement per- mitting the developer to build five or six new homes for low income families. 3. Negotiate for purchase of five or six existing .substandard dwellings. 4. Purchase existing substandard dwellings, relocate the tenants or owners in standard housing and resell the property to the developer. 5. The developer will construct and lease the new homes. The deadline for developers to submit their proposals to the Minnesota Housing Finance Agency for 1979 funding is February 28. Three developers have already indicated interest in pursuing construction of new homes in Richfield through this New Home Program proposal. A copy of the developer's solicitation package is attached to this letter. In summary, the developer will be required to seek approval from either the Minnesota Housing Finance Agency or from the Department of Urban Development for Section 8 Housing Assistance funds. The developer will also be required to follow the HRA's adopted guidelines for the New Home Program. Also attached is a letter which will be sent to owners of sub-standard property currently existing in the city. The in- tent of the staff is to seek purchase of the substandard prop- erties on a voluntary basis. This letter is designed to measure the interest of property owners in selling their property, so that acquisitions may be implemented on a voluntary basis upon request of the property owner. Itis recommended that the Housing and Redevelopment Authority take the following actions at this time toward implementing this program: HRA Letter No. 8 -3- February 12, 1979 1. Authorize the Acting Executive Director to solicit proposals from interested developers. 2. Authorize the Acting Executive Director to seek potential acquisition sites and obtain appraisals for possible purchase of those sites. Respectfully submitted, J _ c L. Wilde Acting Executive Director JLW/eja cc: Planning and Redevelopment Director s . Y t Exhibit I Developer's Packet Subject: Request for Proposals Single family subsidized housing ' The Housing and Redevelopment Authority is soliciting proposals for the purchase of five undesinnated lots within the City. The deadline for submitting proposals is March 15, 1979. The successful applicant will be expected to construct five three-bedroom units, or four three-bedroom units and one handicapped unit. The units must be approved by the Minnesota Housing Finance Aeency or the U. S. Department of Housing and Urban Develop- ment for funding under the Section 8 New Construction Program. The completed units will be rented to large families with qualifying incomes who will receive Section 8 rent subsidies. The developer will be responsible for the management of the units. The Housing and Redevelopment Authority will make sites available using a Federal Grant which was obtained as part of the HRA's New Home Program. The New Home Program was initiated by the Housing and Redevelopment Authority of Richfield, MN, in 1975. The program was designed to address two goals: 1) The elimination of substandard properties in the City; and 2) The providing of affordable homes for large, low-to-moderate income families. ~ In the past, the New Home Program has provided a nu!nber of affordable homes for purchase through either new construction or substantial rehabilita- tion of an existing structure. The New Home Program has recently been expanded to include rental opportunities for large, low-to-moderate income households. Please call our office if you would like any further infor!liation. Proposal Data Proposals will include the following: t a) Purchase price to be paid fox the five vacant lots. Even though the lots for this program have not been designated, you may want to operate under the assumption that many Richfield lots are 50' x 135' and most lots have utility hook-ups; b) Statement regarding purchaser's willingness (or unwilling- ness) to assume responsibility for applicable special assess- ments and pro rata ad valorem taxes; c) Brief description of the structure to be built, including specifically the number of bedrooms'(at least three), the total area of the dwelling, the architectureal style of the structure, .and the degree of finishing. Any unit which is accessible for the handicapped may have fewer than three bedrooms, if it is required architecturally. A proposal with one handicapped unit is encouraged. Pro- posals which include alternate land prices with corresponding degrees of finishing in the dwelling to be built are also encouraged; d) Estirated market value of the units upon completion; e) Estimated construction schedule; (construction should begin two months and be completed within. eight months of final project approval by bIHFA or U. S. Department of Housing and Urban Development; f) Letter of credit or other acceptable security in the amount of 10 percent of the total development cost; and, g) Letter of preliminary approval by P~IHFA. The T.~innesota Housing Finance Agency is receiving applications until approximately S . ~ ~ . February 28, for Section 8 Development Funds. Upon request, they will forward a copy of their re~uired forms for a preliminary application. The sale of the lots will include a Special ~--'larranty Deed form which prevents their purchase for speculative purposes. All proposals must be received at the Housing and Redevelopment Authority office at 7000 Nicollet Avenue South no later than 4:30 p.m. on hTarch 15, 1979. If you have any questions, call r.4s. Jeanne Harstens, Community Development Specialist, 809-7521, extension 276. - .~.~, ~`:~ ~ ~ Proposal form j 1. Name and Address of Developer ~ i ~" ~- ~ . ::.+~>-: 2. Estimated purchase price for land. - 3. Structure description: r :;~, _ number of bedrooms ~. ~ "~-- s •- .. area of dwelling - ~~~:;=~~ "`- _;,` ~ architectural ~ style - - - -;A.,.. ~ ., :h-.~, degree of interior finish :.-~'~ __ other -;~•c _ ~. - __. 4 ~~. -=~~==~'~"~°~' 4. Estimated market value with land 5. Construction schedule :,,- - ;- _ ~ . Estimated number of calendar days after resale and after final committment from !.IF3FA to construction start: Estimated number of calendar days from start to construction completion: Estimated number of calendar days from time of completion to occupancy: I accept the Special ~';arranty Deed form: I have attached the letter of security: I have attached the letter of preliminary approc•al from `,'IT?':1: ,.~_~ - ~-- ..at3~:.~:-~~ w.. _ - Si;;n~~d Date M ~ . Exhibit II Form of letter to homeowners s ~~ .~ ~o =s .N ~ ~~ s= a~ ~~ a~ ~ 0 ~~ s~ ~~ 'i 'C i The Housing and Redevelopment Authority of Richfield, Minnesota, is considE:ring a new housing program. For this program, they would like to acquire at least five small, back-of-the-lot houses. They would negotiate a fair price for each property. They would not use the power of condemnation in any instance, so every acquisi- tion would be completely voluntary. The purpose of this letter is to determine if there are property owners who would be interested in selling. This letter should not be construed as a Letter of Intent to Acquire by the Authority nor a request to begin negotia- tions. It merely serves to measure the level of interest to sell among certain property-owners. M N ~F+ .~ A purchase of property by the Housing and Redevelopment Authority usually proceeds according to the following steps: 1. Two appraisals of the property are ordered, along with a review appraisal. The HRA will also pay for you to have an appraisal made. 2. The HRA establishes what it is willing to purchase the property for and authorizes the staff to negotiate for the purchase. 3. Once an agreeable purchase price has been reached, the HRA authorizes the purchase. ^ 4. The property owner receives the purchase price, plus any relocation benefits for which he or she is -eligible. Relocation benefits are paid according to the Real Property Acquisition and Relocation Assis- tance Act of 1970 and usually include the complete cost of moving and a benefit to purchase a better home with. ~+ L ~. 0 ti telephone: 869-7521 (612) an equal opportunity employer ~~ EQUAL HOUSIAI4~ OPPORTU~tT~Y r . Please let me know by February 8 whether pr not you would consider selling your property. Remember this letter is only to measure your interest. If you have any specific questions, feel free to call me at 869-7521, extension 276. Sincerely, ;, _ . ~: Jeanne Carstens Community Development Assistant shp .'may' Y iS..W r.. J HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 7 Agenda February 12, 1979 ~~ ~ ~~.d ~ ~F-- Q Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Amendment to Developer's Agreement Robert Jahn and Robert Dietl, of the Woodlake Investment Company, have requested an amendment to the developers agreement between the HRA and the Woodlake Investment Company. The requested amendment would enable construction of a freestanding sign which is somewhat different from that proposed as part of the developers agreement. The new sign differs in the following ways from the previous sign: Height: 4 feet higher Width: 3 feet, 3 inches wider (New sign dimensions will be: 9 feet-3 inches wide, by 17 feet high) Sign Face: Embossed plastic (Lexan) rather than horizontal tongue and groove cedar It is recommended that the HRA approve an amendment to the developers agreement to permit construction of the proposed sign.. This sign would still relate well to the building while also conforming to HRA design guidelines and the city's sign ordin- ance. Respectfully submitted, c L. Wilde cting Executive Director JL~~7/ j a cc: Public Works Director Planning and Redevelopment Director