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10-19-09 agenda packetMONDAY, OCTOBER 19, 2009 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE - 7:00 P.M. AGENDA Call to order Roll call 1. Approval of minutes of Regular HRA Meeting of September 21, 2009 Notes: 2. HRA approval of agenda 3. Presentation from Michael Development and St. Croix Real Estate for redevelopment of Woodlake Plaza shopping center Staff Report No. 40 Notes: 4. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval resolution authorizing purchase of real property at 6220-15th Avenue through New Home Program S.R. No. 41 B. Consideration of approval of acquisition and services agreement with Greater Metropolitan Housing Corporation for acquisition, rehabilitation and sale of houses through Neighborhood Stabilization Program S.R. No. 42 C. Consideration of approval of proposal from Hoisington Koegler Group, Inc. to update marketing materials for Lakes at Lyndale master plan S.R. No. 43 Notes: 5. Consideration of subordination request of HRA Foreclosure Purchase Incentive Program loan at 7336 Dupont Avenue Staff Report No. 44 Notes: 6. Consideration of proposed Housing Audit Implementation Plan Staff Report No. 45 Notes: 7. Executive Director report 8. Claims and payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. J HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting September 21, 2009 CALL TO ORDER The meeting was called to order by Chair Sandahl at 7:00 p.m. ROLL CALL HRA Members Present: Sue Sandahl, Chair; Joan Helmberger; Doris Rubenstein; and David Gepner. HRA Members Absent: Steven Quam. Staff Present: Steven L. Devich; Executive Director; John Stark; Community Development Director; and Nancy Gibbs, City Clerk. Item #1 HRA APPROVAL OF MINUTES 2009. M/Rubenstein, S/Sandahl to approve the minutes of (1) Regular HRA Meeting of August 17, Motion carried 4-0. Item #2 HRA APPROVAL OF AGENDA M/Helmberger, S/Gepner to approve the agenda. Motion carried 4-0. HRA Meeting -2- September 21, 2009 Item #3 CONSENT CALENDAR A. Consideration of approval of contract with Frattalone Companies for demolition at 7408 Sheridan Avenue and 7338 Queen Avenue and authorizing staff to contract for any uncovered abatement costs S.R. No. 35 B. Consideration of approval of resolution authorizing purchase of real property at 6321 Penn Avenue, contingent upon finding of consistency with Comprehensive Plan by Planning Commission S.R. No. 36 HRA RESOLUTION NO. 1056 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6321 PENN AVENUE This resolution appears as HRA Resolution No. 1056. C. Consideration of approval of resolution authorizing purchase agreement with City of Richfield for sale of land at 6758 Portland Avenue for $200,000 S.R. No. 37 HRA RESOLUTION NO. 1057 RESOLUTION AUTHORIZING PURCHASE AGREEMENT WITH THE CITY OF RICHFIELD FOR THE SALE OF LAND This resolution appears as HRA Resolution No. 1057. M/Gepner, S/Rubenstein to approve the Consent Calendar Motion carried 4-0. Item #4 PUBLIC HEARING REGARDING CONSIDERATION OF PURCHASE AGREEMENT FROM ELISSA MCGAHA AND ANDRE JAEGER FOR 7422 FOURTH AVENUE S.R. NO. 38 Community Development Director Stark presented Staff Report No. 38. After much discussion the HRA decided to leave the public hearing open and continue with the rest of the meeting before going into closed session to discuss the offer to 7422 - 4th Avenue South. After the closed session the HRA will return to the public hearing and discuss the offer. M/Gepner, S/Rubenstein to leave the public hearing open and continue with additional items on the agenda before going into a closed session meeting to discuss the offer to 7422 - 4th Avenue South and then return to the public hearing. Motion carried 4-0. HRA Meeting -3- September 21, 2009 Item #5 PUBLIC HEARING REGARDING CONSIDERATION OF RICHFIELD HRA'S FIVE YEAR PUBLIC HOUSING AUTHORITY PLAN FOR SECTION 8 HOUSING ASSISTANCE PROGRAM S.R. NO. 39 Community Development Director Stark presented Staff Report No. 39. Chair Sandahl requested that next year staff provide the number of attendees required for the Public Housing Authority Plan. M/Gepner, S/Sandahl to close public hearing. Motion carried 4-0. M/Rubenstein, S/Gepner to approve consideration of Richfield HRA's five year Public Housing Authority Plan for Section 8 Housing Assistance Program. Motion carried 4-0. Item #6 EXECUTIVE DIRECTOR REPORT None. Item #7 CLAIMS AND PAYROLL M/Gepner, S/Helmberger that the following claims and payrolls be approved: U.S. Bank 09-21-2009 Section 8 Checks: 117813 - 117949 $ 176,816.37 HRA Checks: 30667 - 30700 $ 70,635.31 TOTAL $247,451.68 Motion carried 4-0. The HRA left the Council Chambers at 7:20 p.m. to conduct a Closed Executive Session in the Executive Conference Room. Item #8 SPECIAL HRA CLOSED EXECUTIVE SESSION IN EXECUTIVE CONFERENCE ROOM REGARDING CONSIDERATION OF PURCHASE AGREEMENT FOR 7422 FOURTH AVENUE HRA Meeting -4- September 21, 2009 The Closed Executive Session was called to order by Chair Sandahl in the Executive Conference Room at 7:22 p.m. HRA Members Present: Sue Sandahl, Chair; Joan Helmberger; Doris Rubenstein; and David Gepner. HRA Members Absent: Steven Quam. Staff Present: Steven L. Devich; Executive Director; John Stark; Community Development Director; and Nancy Gibbs, City Clerk. The Closed Executive Session was convened pursuant to M.S. 13D.05. The HRA Closed Executive Session adjourned at 7:44 p.m. Item #9 RECONVENE REGULAR HRA MEETING IN COUNCIL CHAMBERS The HRA reconvened the public. meeting in the Council Chambers at 7:45 p.m. Item #10 RECONVENE PUBLIC HEARING REGARDING CONSIDERATION OF PURCHASE AGREEMENT FROM ELISSA MCGAHA AND ANDRE JAEGER FOR 7422 FOURTH AVENUE S.R. NO. 38 Chair Sandahl resumed the public hearing of Agenda Item #4. Elissa McGaha and Andre Jaeger, 7233 - 2nd Avenue South, introduced themselves to the HRA as the potential buyers of the property and were available for any questions. M/Gepner, S/Helmberger to close public hearing. Motion carried 4-0. Chair Sandahl stated the HRA has a counter offer of $152,793. The new offer will recoup some of the HRA's cost. M/Sandahl, S/Rubenstein to approve the purchase agreement from Elissa McGaha and Andre Jaeger for 7422 Fourth Avenue at the new price and that the following resolution be adopted and that it be made part of these minutes: HRA RESOLUTION NO. 1058 RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 7244 4th AVENUE TO ELISSA MCGAHA AND ANDRE JAEGER Motion carried 4-0. This resolution appears as HRA Resolution No. 1058. HRA Meeting -5- ADJOURNMENT The meeting was adjourned by unanimous consent at 7:50 p.m. Date Approved: Nancy Gibbs City Clerk September 21, 2009 Suzanne M. Sandahl Chair Steven L. Devich Executive Director AGENDA ITEM # 3 REPORT # 40 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 199 2009 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECT0 JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR ITEM FOR HRA CONSIDERATION: Consideration of a presentation from Michael Development and St. Croix Real Estate for the Redevelopment of the Woodlake Plaza shopping center. 1. RECOMMENDED ACTION: B Motion: No formal action required. II. BACKGROUND Michael Development and St. Croix Real Estate have been in discussions with staff regarding their potential development of the Woodlake Plaza shopping center for some time. Before expending more time and money on pursuing their development proposal, the developers wish to gauge the Housing and Redevelopment Authority's (HRA) interest in their proposal. Currently, Woodlake Plaza contains approximately 25,000 square feet of retail space and contains tenants such as the Donut Connection, Weight Watchers, Golden Tan, and Metropolitan Financial Mortgage Company as well as a number of vacant spaces. In recent years, however, occupancy and rental incomes have not been adequate to render this as a feasible retail development. The developers, who also have an ownership interest in the current development, have worked with market analysts to identify the most attractive use as market-rate rental housing. 101909 Woodlake Plaza The developers have created a concept plan for a market-rate rental housing development on the current site plus the inclusion of an HRA-owned site that immediately abuts the Woodlake Plaza center (see attached map). Their initial financial analysis, however, identifies a funding gap for the project. The potential that this gap could be eliminated through Tax Increment Financing (TIF) and a deferred and/or reduced payment to the HRA for its vacant property has been discussed with HRA's staff, financial consultant and legal counsel; although those analyses are preliminary at this time. The developers will provide a brief presentation to the HRA at the October 19, 2009 meeting (and likely a similar presentation to the City Council at one of their upcoming meetings) before proceeding further with their proposal. III. BASIS OF RECOMMENDATION A. POLICY • The Woodlake Plaza center is located within the Lakes at Lyndale Redevelopment Master Plan area. B. CRITICAL ISSUES • The developers wish to gauge HRA (and City Council) interest before expending further time and money on refining their proposal. C. FINANCIAL • To date, the developers have been reimbursing staff for consultant/legal costs associated with this proposal. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S) • N/A V. ATTACHMENTS ==1 • Map identifying the Woodlake Plaza site and HRA-owned site. • Picture of Woodlake Plaza Shopping Center VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Michael Swenson, Michael Development. • Terry McNellis, St. Croix Real Estate. Hennepin County Property Map Print 1 Page I of 1 i al Hennepin County Property Map - Tax Year: 2009 ?I The data contained on this page is derived from a compilation of records and maps and may contain discrepancies that can only be disclosed by an accurate survey performed by a licensed land surveyor. The perimeter and area (square footage and acres) are approximates and may contain discrepancies. The information on this page should be used for reference purposes only. Hennepin County does not guarantee the accuracy of material herein contained and is not responsible for any misuse or misrepresentation of this information or its derivatives. Selected Parcel Data Parcel ID: Owner Name: Parcel Address: Property Type: Homestead: Area (sgft): Area (acres): A-T-B: Market Total: Tax Total: Date Printed: 10/13/2009 3:32:34 PM Current Parcel Date: 10/4/2009 Sale Price: Sale Date: Sale Code: http://gis. co.hennepin.mn.us/HCPropertyMap/Locator.aspx?PID=270282423 0092 10/13/2009 ,?- WOODLAKE PLAZA SHOPPING CENTER HRA-OWNED SITE AGENDA ITEM # CFA REPORT # 41 WJ STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 199 2009 REPORT PREPARED BY: JULIE URBAN, HOUSING SPECIALIST NAME, TITLE REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the purchase of real property located at 6220 15th Avenue through the New Home Program. 1. RECOMMENDED ACTION: By Motion: Approve the attached resolution authorizing the purchase of real property located at 6220 15th Avenue through the New Home Program. II. BACKGROUND The Estate representative for 6220 15th Avenue recently approached staff and expressed an interest in selling the property to the Housing and Redevelopment Authority (HRA). Built in 1950, the house has one bedroom and is 480 square feet in total. The house is in fair condition; however the small size makes it difficult to market in an as-is condition and expansion would be economically and functionally impractical. The house is located on a 6,750 square foot lot. The property would be developed for affordable housing under the New Home Program. Established in 1978, the New Home Program allows the HRA to purchase substandard property, demolish the existing home and sell the property to a nonprofit developer with plans to build a new affordable home. 101909 6220 15th Ave Acq KAREN BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR The agreed purchase price of the property is $85,000 plus closing costs and will be paid through the HRA's Housing and Redevelopment Fund or with Community Development Block Grant (CDBG) funds.- This expense is provided for in the 2009 Budget. III. BASIS OF RECOMMENDATION A. POLICY • The Richfield Comprehensive Plan calls for the City to "Promote the development, management, and maintenance of affordable housing in the City." Acquiring this property would allow the replacement of a functionally obsolete property with a newly constructed, affordable home that offers features desirable to families. • The HRA has demonstrated success through its New Home Program in removing substandard housing and providing affordable replacement housing for families. • The Planning Commission found the purchase to be consistent with the Comprehensive Plan on September 28, 2009. B. CRITICAL ISSUES • The house is currently vacant, and the Estate's representative initiated a voluntary sale with the HRA. • Purchase of this property by the HRA will result in the replacement of a substandard, functionally obsolete house with an affordable family house that offers desirable features in today's market. • A nonprofit developer will be identified in the future. C. FINANCIAL • Due to the current housing market, the HRA is able to acquire the property at a very reasonable price of $85,000 plus closing costs. The current assessed value is $110,000 with a land value of $72,000. • Funds are available for the acquisition through either the Housing and Redevelopment Fund or CDBG. • Funding for this activity has been budgeted for in the HRA's 2009 Budget. D. LEGAL • Legal Counsel drafted the Purchase Agreement. ALTERNATIVE KECOMMENDATION(El • Do not authorize the purchase property. V. ATTACHMENTS • Resolution • Photo,of existing structure V1. PRINCIPAL PARTIES EXPECTED AT MEETING 0 N/A qA-l HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6220 15TH AVENUE WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota ("the HRA") desires to purchase certain real property pursuant to and in furtherance of the New Home Program, said property being described as: 6220 151th Avenue Lot 9, Block 1, Nokomis Gardens Rearrangement of Blocks 1-5 Girard Parkview; and WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, Housing and Redevelopment Funds and/or CDBG funds are available for acquisition purposes. NOW THEREFORE, BE IT RESOLVED, by the City of Richfield Housing and Redevelopment Authority: The purchase price for the property identified is approved at $85,000, plus closing costs, not to exceed $95,000. 2. The Chairperson and Executive Director are authorized to execute a Purchase Agreement and to take other actions necessary to purchase the property for the amount set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota on this 19th day of October, 2009. Suzanne M. Sandahl, Chair ATTEST: Joan Helmberger, Secretary 101909 6220 151h Ave Acq 0 • 6220 15th Avenue • AGENDA ITEM # 4B REPORT # 42 STAFF REPORT M099A HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 199 2009 REPORT PREPARED BY: JULIE URBAN/MICHELLE LEWIS, HOUSING SPECIALIST NAME, TITLE REPORT PRESENTER: DEPARTMENT DIRECTOR R REVIEWED BY EXECUTIVE ITEM FOR HRA CONSIDERATION: Consideration of an Acquisition and Services Agreement with the Greater Metropolitan Housing Corporation for the acquisition, rehabilitation and sale of houses through the Neighborhood Stabilization Program. 1. RECOMMENDED ACTION: By Motion: Approve and authorize execution of an Acquisition and Services Agreement with the Greater Metropolitan Housing Corporation for the acquisition, rehabilitation and sale of houses through the Neiqhborhood Stabilization Proqram. II. BACKGROUND In January, 2009 the Housing and Redevelopment Authority (HRA) was awarded $1,041,541 in Neighborhood Stabilization Program (NSP) funds and approved the use of $750,000 of the funds to directly purchase and rehabilitate up to four foreclosed homes located within a particular area within Richfield. Two of the properties purchased will be sold to households at or below 50 percent of the Area Median Income (AMI) and two will be sold to households at or below 120 percent of the AMI. Through the application process the HRA identified the West Hennepin Affordable Housing Land Trust (Homes Within Reach) as a partner to sell the two houses at or below 50 percent of the AMI. 101909 GMHC NSP contract.doc KAREN BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR Under the proposed Acquisition and Services Agreement, the Greater Metropolitan Housing Corporation (GMHC) would identify foreclosed properties through the Neighborhood Stabilization Trust, which offers the opportunity to purchase vacant and foreclosed properties before they are listed on the Multiple Listing Service (MLS). HRA staff, GMHC and Homes Within Reach staff would inspect the property and decide whether to or not to purchase. If the property is determined to be a good candidate for NSP, GMHC would purchase the property using the HRH's NSP funds. GMHC would then rehabilitate the property with NSP funds and sell it to Homes Within Reach or a qualified buyer. GMHC would receive a construction management fee of eight percent of the total cost of acquisition and rehabilitation and an additional six percent commission for the sale to the end buyer. If the City were to obtain property through some other means, the Agreement would also allow for the City to retain ownership of the property while GMHC would rehabilitate the property and sell it to Homes Within Reach or a qualified buyer. III. BASIS OF RECOMMENDATION A. POLICY • The HRA has partnered with nonprofit developers to construct affordable homes since 1978. • The HRA has partnered with GMHC and Homes Within Reach for previous projects, most recently at 7201 and 7205 Nicollet Avenue, to provide well-built, permanently affordable housing to qualified households. B. CRITICAL ISSUES The Acquisition and Services Agreement identifies GMHC to meet NSP requirements. • NSP funds must be committed by September 20, 2010. GMHC participates in the Neighborhood Stabilization Trust, through which they have an early opportunity to purchase foreclosed properties. GMHC understands the requirements of the NSP program; GMHC carries out similar acquisition, rehabilitation and sale of foreclosed homes with NSP funds for the City of Minneapolis. • The Agreement with GMHC provides an efficient means to use the NSP funds by the September 2010 deadline. • The market of vacant and foreclosed properties is moving very quickly and the agreement with GMHC offers the opportunity to purchase properties before they are listed on the MLS. Neighborhoods in which there are one or more foreclosed and vacant homes have detrimental impacts on the surrounding property values. C. FINANCIAL • The City was awarded $750,000 in Federal NSP funds for the acquisition, rehabilitation, and re-sale of four foreclosed properties through the Minnesota Housing Finance Agency (MHFA). • NSP funds must be under contract prior to September 20, 2010. Failure to expend the NSP funds by September 20, 2010 will result in forfeiture of the funds. D. LEGAL Legal counsel has prepared the Acquisition and Services Agreement. IV. ALTERNATIVE RECOMMENDATION( S? • Do not approve the Acquisition and Services Agreement. V. ATTACHMENTS Acquisition and Services Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING 0 N/A L48-1 ACQUISITION AND SERVICES AGREEMENT THIS AGREEMENT, made and entered into as of this of , 2009 ("Effective Date"), by and between the Housing and Redevelopment Authority in and for the City of Richfield ("City"), a body corporate and politic under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue, Richfield, Minnesota ("HRA") and the Greater Metropolitan Housing Corporation, a non-profit corporation under the laws of Minnesota, having its principal office at 15 South Fifth Street, Suite 710, Minneapolis, Minnesota 55402 ("GMHC"). RECITALS A. Hennepin County ("County") received a grant of Neighborhood Stabilization Program ("NSP") funds directly from the United States Department of Housing and Urban Development ("HUD") and as a recipient of funds the State of Minnesota Housing Finance Agency ("MHFA") received directly from HUD, both under Title III of Division B of the Housing and Economic Recovery Act of 2008 (Public Act 110-289), as amended ("HERA"). B. The HRA is the sub-recipient of NSP funds from County in the amount of $1,041,541.00 ("NSP Sub-Recipient Grant") within certain approved areas of the City ("NSP Eligible Area"), as set forth in the HRA's agreement with County for the NSP Sub-Recipient Grant dated March 20, 2009 ("Subrecipient Agreement"). C. Under NSP, properties must have been abandoned or foreclosed upon to qualify for NSP assistance under Category B ("NSP Eligible Use Category B"). D. As of the date of this Agreement, the HRA has approved the use of $750,000.00 of the NSP Sub-Recipient Grant ("NSP Acquisition and Services Agreement Funds") for the purchase, rehabilitation, and resale of four NSP Eligible Use Category B properties within the NSP Eligible Area ("Eligible Properties"); however, the HRA reserves the right to approve additional funds for the purchase, rehabilitation, and resale of additional Eligible Properties under the terms of this Agreement. E. On April 23, 2009, HUD issued the document "Guidance on NSP-Eligible Acquisition and Rehabilitation Activities" that clarifies the use of intermediaries for acquisitions under NSP ("HUD Guidance"). F. The HRA desires GMHC to act as an intermediary and GMHC has agreed to purchase, rehabilitate, and resell up to four Eligible Properties on behalf of the HRA pursuant to the terms and conditions of this Agreement, MHFA, HUD, and HERA as each relates to the use of NSP Acquisition and Services Agreement Funds ("Program"). G. GMHC, in conjunction with the National Community Stabilization Trust ("NCST"), has developed a program with participating lenders called "First Look" that allows GMHC to obtain pre-market access to Eligible Properties and uses standardized transaction formats and pricing models to facilitate a significant purchase price adjustment. q6,0 H. This Agreement is intended to satisfy the requirements of 24 CFR 570.203 and the HUD Guidance so that Eligible Properties acquired by GMHC and transferred to the HRA retain their eligibility for NSP assistance. 1. As required by paragraph five of the Subrecipient Agreement, the County provided its prior consent to this Agreement. AGREEMENT Scope of Work. A. Management. The HRA hereby designates GMHC as an NSP subrecipient to carry out the Program through the "First Look" program and in accordance with the terms and conditions of this Agreement. Attached and hereto incorporated into this Agreement as Exhibit A is the Memorandum of Understanding between GMHC and NCST relating to the "First Look" program. Capitalized terms used and not defined in this Agreement shall have the meaning set forth in that certain NSP Notice published in the Federal Register on October 6, 2008, as amended by those certain Revisions and Technical Corrections issued June 11, 2009. B. Reports. GMHC shall provide the HRA on a monthly basis with a report of its activities under the Program. 2. Term. ' This Agreement is effective as of the Effective Date and until September 20, 2010. 3. NSP Eligible Area. The map attached to this Agreement as Exhibit B identifies the areas determined by the MHFA to be the City's areas of greatest need. To be eligible for NSP funding, Eligible Properties must be located within these areas of greatest need. 4. Timing. Any properties acquired by GMHC prior to the Effective Date of this Agreement are not eligible for NSP funding. 5. URA. Except where it conflicts with HERA, GMHC will comply with applicable acquisition and relocation requirements in the Uniform Relocation Assistance and Real Property Acquisition Act ("URA") as required under 24 CFR 570.606(a) and HUD implementing regulations at 49 CFR Part 24 and the requirements in 24 CFR 570.606(b) through (d). Among other things, the regulations require GMHC to document delivery of an informational notice in substantially the form attached to this Agreement as Exhibit C (HUD guideform "NSP Voluntary Acquisition of Foreclosed Property") to each property owner. GMHC will acquire only unoccupied properties and must certify that its acquisition did not cause tenant displacement. Further, GMHC must certify, or otherwise obtain certification of, compliance with the tenant protections in Division A, Title XII of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) under the heading "Community Planning and Development Fund." 2 q6--3 6. Purchase Discount. GMHC will obtain a URA-compliant appraisal (49 CFR 24.103) dated within sixty (60) days before the final purchase offer date of any applicable Eligible Property and obtain a discount from the Current Market Appraised Value for each Eligible Property of at least one percent (1%). If the anticipated value of the Eligible Property is $25,000 or less and the acquisition is voluntary, then review of available data by a person qualified to make the valuation may be substituted for an appraisal. 7. Environmental Review. Prior to a commitment of NSP I funds or "choice-limiting action" as described in the environmental regulations at 24 CFR Part 58, GMHC and the HRA will undertake the appropriate environmental review procedures and documentation as determined, requested, or required by the County. 8. Activity Delivery Costs. GMHC may incur staff and overhead costs directly related to carrying out the acquisition activities under this Agreement (the "Activity Delivery Costs"). Such Activity Delivery Costs may include but are not limited to surveys, appraisals, preparation of legal documents, recording fees and temporarily managing properties until disposition, provided the costs are necessary and reasonable and otherwise conform with OMB Circular A- 122, Cost Principles for Nonprofit Organizations. GMHC may pass through its Activity Delivery Costs to HRA as provided below. 9. Acquisition. It is the intent of the parties that Eligible Properties acquired pursuant to this Agreement will retain their Foreclosed status including through any subsequent sales or transfers to the HRA in the following manner: (a) Purpose - NSP Eligible Use Category B. (b) Eligible Areas - depicted in Exhibit B. (c) Sale Price - Except as otherwise provided in Exhibit E, at the closing for each Eligible Property, the HRA will pay GMHC its cost of acquisition plus a fifteen hundred dollar ($1500.00) transaction fee per Eligible Property together with any other actual out-of-pocket Activity Delivery Costs incurred in connection with the acquisition and closing. (d) Procedures - The HRA and GMHC will follow the acquisition, rehabilitation, and resale procedures attached to this Agreement as Exhibit D (Procedures). (e) Purchase Agreement - If the HRA desires to acquire title to an Eligible Property during the rehabilitation and resale periods, then GMHC will enter into a purchase agreement in substantially the form attached to this Agreement as Exhibit E for each Eligible Property or group of Eligible Properties that HRA, from time to time, requests GMHC to acquire under this Agreement If the HRA does not desire to acquire title to an Eligible Property during the rehabilitation and resale periods, then GMHC will hold title to the Eligible Property during the rehabilitation and resale periods. (f) Construction Management Fee - HRA will pay GMHC eight percent (8%) of GMHC's total cost of acquisition and rehabilitation of each Eligible Property. Upon completion to the HRA's satisfaction of the pre-approved rehabilitation plan, GMHC will provide the HRA with an accounting. Thereafter the HRA will pay GMHC said fee. The HRA will not unreasonably withhold said fee. (g) Resale Commission - GMHC will market and resell each Eligible Property acquired pursuant to this Agreement. The HRA will pay GMHC a six percent 3 4P-q (6%) sales commission for the marketing and resale of each Eligible Property to an end buyer with said commission payable from the resale of the Eligible Property or from HRA funds within thirty days from the closing of said resale of the Eligible Property to an end buyer. 10. Documentation. GMHC must maintain the following records and reports relating to Eligible Properties acquired pursuant to this Agreement: Appraisal, NSP informational notice offer letter, environmental record, purchase agreement, settlement statement, and deed document number/filing information per property. GMHC shall submit copies of the foregoing documentation to HRA with respect to any Eligible Property acquired pursuant to this Agreement. 11. Program Income. The parties do not anticipate that GMHC will receive any "program income," as defined in 24 CFR 570.500, pursuant to this Agreement. But if GMHC ever receives land sale proceeds in excess of costs, including Activity Delivery Costs, GMHC may retain the program income subject to 24 CFR 570.503 and 570.504. 12. Uniform Administrative Requirements. GMHC shall comply with applicable uniform administrative requirements, as described in 24 CFR 570.502. 13. Other Program Requirements. GMHC shall carry out the acquisition activities under this Agreement in compliance with all federal laws and regulations described in 24 CFR Part 570, subpart K, except that (i) GMHC does not assume the HRA's environmental responsibilities described at 24 CFR 570.604; and (ii) 'GMHC does not assume the HRA's responsibility for initiating the review process under the provisions of 24 CFR Part 52. GMHC shall execute the attached certifications regarding lobbying and debarment in conjunction with the execution of this Agreement, as provided in Exhibit F. 14. Suspension and Termination. In accordance with 24 CFR 85.43, suspension or termination may occur if GMHC materially fails to comply with any term of this Agreement after notice and an opportunity to cure, and the Agreement may be terminated for convenience in accordance with 24 CFR 85.44. 15. Reversion of Assets. Upon expiration or earlier termination of this Agreement, GMHC shall transfer to HRA uncommitted NSP funds on hand, if any, and any accounts receivable attributable to the use of NSP funds. Further, any real property under GMHC's control that was acquired or improved in whole or in part with NSP funds in excess of $25,000 shall be used or disposed consistent with 24 CFR 570.503(b)(7). 16. Notice. Except as otherwise provided in Exhibit D, all communications, notices, and demands of any kind which either party may be required or may desire to give to or serve upon the other shall be made in writing, and such notice shall be deemed sufficiently given if and when it is addressed to then other party as provided below and either (a) delivered personally, (b) deposited in the United States mail, registered or certified, with postage prepaid, (c) deposited with an overnight delivery service for next day delivery, or (d) telecopied: 4 `-f 6-5- To HRA: Richfield Housing and Redevelopment Authority Attention Mr. John Stark, AICP, Director of Community Development 6700 Portland Avenue Richfield, Minnesota 55423-2599 Fax: (612) 861-8974 To GMHC: Greater Metropolitan Housing Corporation Attention: Carolyn Olson 15 South Fifth Street, Suite 710 Minneapolis, MN 55402 17. Data Practices. GMHC agrees to abide by the provisions of the Minnesota Government Data Practices Act and all other applicable State and Federal laws, rules, and regulations relating to data privacy and confidentiality, and as any of the same may be amended. 18. Miscellaneous. This Agreement will be governed by, and construed in accordance with, the laws of the State of Minnesota. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together will constitute one and the same agreement. (Signature pages follow.) 5 446-(0 IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its By Its GREATER METROPOLITAN HOUSING CORPORATION Its By 6 qa--7 EXHIBIT A FIRST LOOK PROGRAM MOU r, T"n National Community Stabilization Trust 1325 (i aarae;. N'W 1wI,c MOO - 0, atai?a.yta?I. tit: ?_QU ? ?;A- • p. 20 J'00 ',Nib! 3 36.2600 Mernorandurn of Understanding December 19, 2008 Greater Metropolitan Housing Corporation 15 South. Fifth Street, Suite 710 Minneapolis, MN 55402 Attn: Carolyn H. Olson Re: National Community Stabilization 'T'rust, LLC ("Stabilization Trust") Memorandum of Understanding Relating to REG Acquisition Program ("Acquisition Program') Dear Ms. Olson: We are pleased to forward to you the attached Acquisition Program Guidelines wider which Greater Metropolitan Mousing Corporation ("Buyer") has agreed to participate with the Stabilization Trust as a qualified buyer in the Acquisition Program outlined more completely in the attached Acquisition Program Guidelines. The pia-pose of this letter is to express our appreciation with your agreement to work will the Stabilization Trust in this initial phase of the Acquisition Program. Although the document indicates "Draft", it shrill serve as our agreement. We anticipate that the germs of the Acquisition Program Guidelines will be ultimately incorporated into an agreement of understanding, as may be necessary in the future. Preliminarily, however, it is our hope that you will acknowledge the terms of the Acquisition Program Guidelines with the Stabilization 't'rust by sighing the acceptance below. As we discussed, upon your acceptance, we will immediately commence our involvement with Greater Metropolitan tiousing Corporation as an eligible Buyer under the First Look Purchase Program outlined in Appendix T in the attached Acquisition Program Guidelines as well as the Targeted Bulk Purchase Program. This agreement may be executed in any number of counterparts, each of which shall lie deemed to be an original, but all of which shall constitute one and the same instrument. I of 3 A-1 `-f' 8° R National Community Stabilization 'rust >:i:. ?? ?,,cx:, `rLti., .`,G?;? ? t)?} - `;V?,..^a?i;«zc>:. w7C: r:?]???`; .. ?C?t ' {.4. ! ;:?.•; ?r.`?-:r3[.?t ? '???1? 37'4 ?!tizi? Delivery of an executed counterpart of a sipmre page of this agreement by facsimile transmission or elciztronic transmission (e.g., "pdf' or "tit") shall be efleciive as delivery of an original executed counterpart of this agreement. Upon request, by us or by you an original executed counterpart of this agreemeni will be, sent to the party requesting it. We look forward to our association with you in this very important effort. in helping to stabili7.,e our neighs€>orhoods. Vent' truly yours, National Community Stabilization "!`rust, LLC, a Delaware limited liability company r yr Its: w" yi r j? ? 2of3 A-2 46-q National Community Stabilization Trust i:..I!ea. Sw v Uv , t'vtl-,I, "'OW}:: u!00 - ;.'. (2O;, 20u 2., S1)o - i, is ir:: 3+G ..raf?i'; ACCEPTANCE: The undersigned hereby agrees to the terms of the attached Acquisition Program Guidelines and agrees to proceed with the Acquisition Pragmm, set forth in the Acquisition Program Guidelines in connection Nvith all eligible properties and the eligible Seller,, Date* GREATER IY VrRGPOI.ITAIN HOUSING CORPORATION, a Minnesota non-prork corporation By: ?yn, 113, 0 tson its: President 014089/290=11111729 1 3 of 3 A-3 Ll 8-1C) EXHIBIT B N L.agvnd ma (r'ICLQ NSPTIRR 1 RPn NSP Tier 3 Blue MP Tier 2 Grin Black areas areas have a HUD foreclosure risk score of less then 8. B-1 NSP ELIGIBLE AREA q8-11 EXHIBIT C GUIDEFORM NSP VOLUNTARY ACQUISITION OF FORECLOSED PROPERTY - Informational Notice - (Agencies with Eminent Domain Authority) Grantee or Agency Letterhead Dear (date) (City, County, State, other) , is interested in acquiring property you own at (address) for a project receiving funding assistance from the U.S. Department of Housing and Urban Development (HUD) under the Neighborhood Stabilization Program (NSP). Please be advised that, (City, County, State, other) possesses eminent domain authority to acquire property, however, in the event you are not interested in selling your property, or if we cannot reach an amicable agreement for the purchase of your property, we will not pursue its acquisition under eminent domain. Your property is not a necessary part of the proposed project and is not part of an intended, planned, or designated project area where substantially all of the property within the area is to be acquired. The subject property is listed for purchase at $ We currently believe $ to be the market value of the property. Under the NSP, we are required to purchase foreclosed property at a discount from its current market appraised value. Depending on the results of our appraisal, our purchase offer may differ from the amounts noted above. Please contact us at your convenience if you are interested in selling your property. In accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA), owner-occupants who move as a result of a voluntary acquisition are not eligible for relocation assistance. A tenant-occupant who moves as a result of a voluntary acquisition for a federally-assisted project may be eligible for relocation assistance. Such displaced persons may include not only current lawful occupants, but also former tenants required to move for any reason other than an eviction for cause in accordance with applicable federal, state, and local law. If your property is currently tenant-occupied or a tenant lawfully occupied your property on or after February 17, 2009, we need to know immediately. Further, you should not order current occupant(s) to move, or fail to renew a lease, in order to sell the property to us as vacant. C-1 q6-/-2- If you have any questions about this notice or the proposed project, please contact (name) , (title) , (address) , (phone) NOTES to NSP Voluntary Acquisition of Foreclosed Property Informational Notice 1. The case file must indicate the manner in which this notice was delivered (e.g., certified mail, return receipt requested) and the date of delivery. (See 49 CFR 24.5 and Paragraph 2-3 J of Handbook 1378) 2. Tenant-occupants displaced as a result of a voluntary acquisition may be entitled to URA relocation assistance and must be so informed per 49 CFR 24.2(a)(15)(iv) - Initiations'of negotiations, and 49 CFR 24 Appendix A - 24.2(a)(15)(iv). 3. See 49 CFR 24.206 regarding eviction for cause. 4. This guideform may only be used if all of the requirements of 49 CFR 24.101(b)(1)(i)-(iv) are met. 5. This is a guideform. It should be revised to reflect the circumstances. [9/09] C-2 y6-i3 EXHIBIT D PROCEDURES Memorandum of Understanding Properties, In General: • GMHC will identify, purchase, and rehabilitate up to four Eligible Properties on the HRA's behalf with ¦ two of the four properties for subsequent resale to households earning at or below 120% of Area Median Income, and ¦ two of the four properties for subsequent resale to West Hennepin Affordable Housing Land Trust, a non-profit corporation under the laws of Minnesota ("WHALT"), for households earning at or below 50% of Area Median Income; • except that if the HRA may identify, purchase, and rehabilitate Eligible Property without the assistance of GMHC. • The HRA reserves the right and GMHC agrees to identify, purchase, and rehabilitate more than four Eligible Properties in the event the HRA approves additional funds for this purpose. Identification of Eligible Property: • GMHC or the HRA will identify Eligible Properties. • If the HRA identifies Eligible Property, the HRA (in its sole discretion) may provide GMHC with the identity of the Eligible Property. • If GMHC identifies Eligible Property, GMHC will provide the HRA with the identity of the Eligible Property so that the HRA may decide whether the HRA will use NSP funds to acquire said Eligible Property. Purchase of Eligible Property: • GMHC will only purchase an Eligible Property with HRA funds after receipt of the HRA's express written consent. • HRA may express its written consent via email to GMHC at bbuelow@jzmhchousiniz.org. • The HRA will fully cooperate to meet the strict timelines of First Look. • GMHC shall be responsible for the timely completion of all NSP and NCST required documentation. • GMHC agrees to purchase and hold the Eligible Properties in its name unless the HRA informs GMHC that the HRA desires (in the HRA's sole discretion) to hold an Eligible Property in the name of the HRA. Rehabilitation of Eligible Property: • After GMHC has purchased an Eligible Property, GMHC will work with the HRA to identify necessary improvements. • GMHC and the HRA will agree in writing to a rehabilitation plan that describes, at a minimum, expenses, improvements, and deliverable dates, prior to GMHC beginning its rehabilitation efforts at that Eligible Property. • Upon completion of the rehabilitation of each Eligible Property to the satisfaction of the HRA, the HRA will reimburse GMHC for its rehabilitation costs as set forth in the D-1 46-lq rehabilitation plan for each Eligible Property. GMHC will provide the HRA with all requested information, including but not limited to receipts, prior to receiving reimbursement funds from the HRA. • The rehabilitation plan may be amended from time to time as needed with the prior mutual consent of the HRA and GMHC. Subsequent Resale of Certain Eligible Property to End Buyer: • After GMHC completes the rehabilitation of an Eligible Property, GMHC will market said Eligible Property and execute a purchase agreement with an end buyer whose household income is at or below 120% of Area Median Income. Subsequent Resale of Certain Eligible Property to WHALT: • At the direction of the HRA, GMHC will purchase and rehabilitate up to two Eligible Properties that will be subsequently resold by either GMHC or the HRA to WHALT for $1.00 per Eligible Property. • WHALT will resell each of these two properties to a household earning at or below 50% of Area Median Income the terms of which are set forth in the Housing Services Agreement dated between the HRA and WHALT. Acquisition of Properties Outside of the NSP Eligible Area: • In the event GMHC identifies a property in the City that is outside of the NSP Eligible Area, . GMHC will notify the HRA of the availability of the property. • If the HRA wishes to acquire said property, GMHC agrees to assist the HRA as needed. D-2 L4 6-15 EXHIBIT E FORM PURCHASE AGREEMENT NSP I PURCHASE AGREEMENT Seller: Greater Metropolitan Housing Corporation Buyer: Housing and Redevelopment Authority in and for the City of Richfield Property Address: Parcel: Effective Date: , 20 E-1 q46- TABLE OF CONTENTS SECTION 1. PROPERTY ................................................................................................................................................... 3 SECTION 2. PURCHASE PRICE ..................................................................................................................................... . 4 SECTION 3. EVIDENCE OF TITLE AND REMEDIES ................................................................................................. . 4 SECTION 4. CLOSING AND POSSESSION .................................................................................................................. . 4 SECTION 5. CONVEYANCE OF TITLE AND PERMITTED ENCUMBRANCES .................................................... . 5 SECTION 6. CLOSING ADJUSTMENTS AND PRORATIONS ................................................................................... . 5 SECTION 7. CONDITIONS TO CLOSING ..................................................................................................................... . 6 SECTION 8. SELLER'S WARRANTIES ........................................................................................................................ . 7 SECTION 9. SELLER'S CLOSING DOCUMENTS ....................................................................................................... . 8 SECTION 10. BUYER'S CLOSING DOCUMENTS ....................................................................................................... . 9 SECTION 12. VOLUNTARY SALE ................................................................................................................................. . 9 SECTION 14. OPERATION PRIOR TO CLOSING ........................................................................................................ . 9 SECTION 15. CONDEMNATION .................................................................................................................................... . 9 SECTION 16. RISK OF LOSS .......................................................................................................................................... 10 SECTION 17. REMEDIES ................................................................................................................................................ 10 SECTION 18. CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER .......................................................... 10 SECTION 19. BROKER'S COMMISSION ..................................................................................................................... 11 SECTION 20. NOTICES ................................................................................................................................................... 11 SECTION 21. MISCELLANEOUS PROVISIONS .......................................................................................................... 11 EXHIBITS Exhibit A Legal Description Exhibit B Contract for Purchase of First Look Program Property E-2 NSP I PURCHASE AGREEMENT THIS AGREEMENT is made as of the day of 20 by and between Greater Metropolitan Housing Corporation, a Minnesota nonprofit corporation ("Seller"), and the Housing and Redevelopment Authority in and for the City of Richfield ("City"), a body corporate and politic under the laws of the State of Minnesota ("Buyer"). Recitals A. Buyer wants to acquire certain real estate and improvements located at , Richfield, Minnesota (the "Property") B. Seller has entered into the purchase agreement attached hereto as Exhibit B ("NCST First Look Purchase Agreement") to acquire the Property from on or such other earlier or later date as the Seller and may mutually agree (the "First Look Purchase Closing Date"), and Buyer has agreed to thereafter acquire the Property from Seller. C. Seller and Buyer have entered into an agreement, described as the Acquisition and Services Agreement, relating to the purchase of certain Eligible Properties (as defined in the Acquisition and Services Agreement) by Seller in accordance with NSP I requirements (as described in the Acquisition and Services Agreement). D. Whereas, the parties have determined that the Property is an Eligible Property. E. The parties wish to define their respective rights, duties and obligations related to the sale/purchase of the Property. NOW, THEREFORE, in consideration of the mutual promises and the respective agreements contained herein, the parties hereby agree as follows: SECTION 1. PROPERTY Seller agrees to sell and Buyer agrees to purchase the Property, together with all hereditaments, improvements, and appurtenances, including: (a) Property. That certain real property located in Hennepin County, Minnesota, legally described on Exhibit A attached hereto (the "Real Estate") together with (i) all buildings and improvements now or hereafter constructed or located on the Real Estate (the "Improvements") and (ii) all easements, interests, rights and privileges benefiting or appurtenant to the Real Estate including, but not limited to, all right, title and interest of Seller in, over and to any land lying in the bed of any highway, street, road, avenue, or alley existing or proposed, in front of or abutting or adjoining the Real Estate and all right, title and interest of Seller in and to any unpaid award for the taking by eminent domain of any part of the Real Estate or the Improvements or for damage thereto by reason of a change of grade of any highway, street, road, avenue, or alley (the "Other Interests") (the Real Estate, Improvements and Other Interests will be collectively referred to as the "Property"); and E-3 L4 6-18 (b) Warranties. An assignment of all of Seller's right, title and interest in and to the warranties of title, if any, that Seller received from the former owner of the Property at the time Seller acquired the Property (the "Warranties"). SECTION 2. PURCHASE PRICE The purchase price for the Property is Dollars ($ .00) ("Purchase Price"), which is due and payable to Seller at the place of closing on and as of the Closing Date. SECTION 3. EVIDENCE OF TITLE AND REMEDIES Within a reasonable time after the date of this Agreement, Buyer, at its expense, will obtain a commitment for an owner's policy of title insurance covering the Property from (the "Title Company"). The commitment will include copies of all instruments shown as exceptions or referred to therein. No later than five (5) days prior to the Closing Date, Buyer shall notify Seller of any objections to title, excluding covenants, conditions, restrictions and easements of record. If any objections are made, Seller will have fifteen (15) days to make title marketable or insurable to the satisfaction of the Title Company. If Seller fails to have the exceptions removed or satisfied within the time provided, Buyer may elect to do any of the following: (i) Waive the objection; or (ii) Terminate this Agreement by delivering written notice thereof to Seller without further obligation or claim for damages between the parties. If, prior to closing, Buyer learns of any lien against the Property or any encumbrance upon or defect in Seller's title to the Property (a "Later Objection"), which has arisen because of any action on the part of Seller after the date this Agreement has been fully executed (the "Effective Date"), Seller is obligated to cure such Later Objection within five (5) days after receiving written notice of the Later Objection from Buyer. If Seller fails to so cure any Later Objection, Buyer has the right to take any of the actions specified above in (i) and (ii) of this Section 3. SECTION 4. CLOSING AND POSSESSION (a) Subject to the provisions of Sections 3 and 7, closing shall occur simultaneously with the First Look Purchase Closing Date, or such other earlier or later date as Seller and Buyer may mutually agree (the "Closing Date"), at which time Seller shall deliver marketable or insurable title to and possession of the Property to Buyer. The Closing Date may be extended by agreement of Buyer and Seller. Any consent to an extension of the Closing Date by Seller shall not be unreasonably withheld. (b) Closing will be at the offices of the Title Company or at such other place as designated by Buyer. At closing, Buyer shall deposit with the Title Company sufficient funds to pay the Purchase Price as described in Section 2. Buyer also must pay the title insurance premium and all closing costs charged by the Title Company for conducting the closing. (c) Seller shall vacate the Property no later than the date of Buyer's pre-closing walk through inspection of the Property, which date will be no earlier than two days before the Closing Date. E-4 q6-/g SECTION 5. CONVEYANCE OF TITLE AND PERMITTED ENCUMBRANCES Seller, at its own cost and expense or by application of the funds deposited by Buyer with the Title Company, shall deliver to the Title Company at or prior to closing its Limited Warranty Deed ("Deed"), Quit Claim Bill of Sale, if any, and such other documents as in the Title Company's opinion will, upon the receipt, filing, recording, or registration thereof, vest in Buyer a marketable or insurable title to the Property, together with lawful ownership of all fixtures, process utilities, or items of immovable property located thereon or pertinent thereto, free and clear of any taxes and liens, special and pending assessments (not assumed by Buyer), or encumbrances of any nature whatsoever, except: (a) Restrictions, reservations, covenants and easements of record on the Effective Date; (b) Building and zoning laws, ordinances, state and federal regulations; (c) Reservation of mineral or mineral rights to the State of Minnesota; and (d) General real estate taxes due and payable in the year of closing and subsequent years. SECTION 6. CLOSING ADJUSTMENTS AND PRORATIONS The following adjustments and prorations will be made at closing: (a) Buyer shall pay all state deed tax or other taxes that must be paid in order to record the Deed for the Property. (b) At or before closing, Seller shall have caused to be paid all real estate taxes and any penalties and interest thereon due and payable with respect to the Property in all years prior to the year of closing. (c) At or before closing, Seller shall have caused to be paid all deferred real estate taxes (including "Green Acres" taxes), together with any penalties and interest thereon, which have been deferred as of the Closing Date. (d) At or before closing, if not previously paid by Seller, Buyer shall assume all special assessments levied, pending or deferred against the Property as of the Closing Date, including all deferred assessments, including all those which become due and payable as a result of the sale of the Property to Buyer. Seller will pay on a prorated basis any special assessments certified for payment with the current year's real estate taxes. (e) At closing, general real estate taxes due and payable in the year of closing shall be prorated between Buyer and Seller as of the First Look Purchase Closing Date on a calendar year basis. In the event taxes for the current year are unavailable or unknown, said taxes shall be prorated on the basis of the taxes for the prior year. (f) Buyer shall pay all real estate taxes due and payable in the year following closing and all subsequent years, if any. (g) Buyer shall reimburse Seller the cost paid by Seller for an appraisal of the Property. E-5 SIB - ao (h) Buyer shall reimburse Seller the costs paid by the Seller to Purchase the Property; such costs will include the closing fee, the cost of commitment for an owner's policy, the cost of an owner's policy of title insurance, the cost of recording all documents necessary to place title to the Property in the name of Seller, and the cost of miscellaneous items as evidenced by the closing statement for the First Look Purchase Closing. SECTION 7. CONDITIONS TO CLOSING This Agreement is hereby expressly made subject to the following conditions having been complied with on or before the Closing Date or as otherwise specified: (a) First Look. Seller has purchased the Property pursuant to the NCST First Look Purchase Agreement and in compliance with the Acquisition and Services Agreement between Buyer and the Seller. (b) Seller Acquisition Documents. If the First Look Purchase Closing Date occurs prior to the Closing Date, Seller shall provide to Buyer copies of all closing documents from Seller's purchase of the Property, including a marked copy of the title commitment along with all documentation as required under the Acquisition and Services Agreement between Buyer and Seller. (c) Representations and Warranties. The representations and warranties of Seller that are contained in this Agreement must be true as of the Effective Date and the Closing Date and are intended to survive the closing. (d) Title. Buyer must be able to acquire marketable or insurable title to the Property. (e) Title Policy. Buyer must be able to obtain a title insurance policy for the Property in a form and substance that is satisfactory to Buyer (the "Title Policy"). (f) Performance of Seller's Obligations. From the date of this Agreement until the Closing Date, Seller shall have performed all of Seller's obligations under this Agreement, as and when required by this Agreement, and Seller shall have delivered Seller's Closing Documents to Buyer in accordance with Section 9. (g) Site, Soil and Environmental Testing. Seller shall allow Buyer, its contractors or agents, access to the Property without charge and at all reasonable times for the purpose of site, soil and environmental investigation and testing of the Property. Buyer will pay all costs and expenses of such investigation and testing and will hold Seller harmless from all costs and liabilities relating thereto (except for such costs and liabilities that may arise in connection with the remediation of any pre-existing hazardous waste or pollution problem that is discovered as a result of such investigation and testing). Buyer shall further repair and restore any damage to the Property caused by or occurring during Buyer's investigation and testing and return the Property to substantially the same condition as existed prior to such entry. In addition, Buyer shall provide Seller with copies of all reports and tests on the Property that have been obtained by Buyer, if Buyer does not purchase the Property. (h) Leases. The Property is not subject to any leases or occupancy agreements. E-6 `7 6 - C2 Any and all of the foregoing conditions are for the benefit of Buyer, except items 7(a) and 7(e), and may be waived, in writing, by Buyer. If any of the foregoing conditions are not satisfied, Buyer shall have the right to terminate this Agreement without further obligation or claim for damages between the parties hereto. If items 7(a) or 7(e) are not satisfied, Seller shall have the right to terminate this Agreement without further obligation or claim for damages between the parties hereto. SECTION 8. SELLER'S WARRANTIES As an inducement to Buyer entering into this Agreement, and as part of the consideration therefor, Seller represents and warrants to Buyer that as of the Closing Date: (a) Authority. This Agreement has been duly executed and delivered; all of Seller's Closing Documents to be signed by Seller will have been duly executed and delivered at closing; such execution, delivery and performance by Seller does not and will not conflict with or result in a violation of any judgment, order, or decree of any court or arbiter to which Seller is a party or by which it is bound; this Agreement and those Closing Documents that will be signed by Seller will contain the valid and binding obligations of Seller and be enforceable in accordance with their terms. (b) Title to Property. Seller owns the Property, free and clear of all liens, encumbrances and encroachments, recorded or unrecorded, except as may be disclosed in the Title Commitment. (c) Permits. To the best of Seller's knowledge, no permits are required from any governmental entity in order to operate the Property as it is now operated. (d) Storage Tanks. To the extent storage tanks exist on or under the Property, such storage tanks have been duly registered with all appropriate regulatory and governmental bodies and are, to the best of Seller's knowledge, otherwise in compliance with applicable federal, state and local statutes, regulations, ordinances and other regulatory requirements. (e) Rights of Others to Purchase Property. Other than the NCST First Look Purchase Agreement, Seller has not entered into any other contracts for the sale of the Property, nor are there any rights of first refusal or options to purchase the Property or any other rights of others that might prevent the consummation of this Agreement. (f) Seller's Defaults. To the best of Seller's knowledge, Seller is not in default of any of its obligations or liabilities regarding the Property. (g) Proceedings. To the best of Seller's knowledge, there are no claims, actions, suits, proceedings or investigations pending or, to Seller's knowledge, threatened, including bankruptcy proceedings, by any governmental department or agency, or any corporation, partnership, entity or person, which in any manner or to any extent may affect (i) the Property; (ii) Seller's right, title and interest in and to any part or all of the Property; or (iii) Seller's ability to vest in Buyer a fee simple ownership interest in the Property free and clear of any and all liens and rights of redemption. (h) Agents and Employees. No management agents or other personnel employed in connection with the operation of the Property employed by Seller have the right to continue such employment after the Closing Date. There are no claims for brokerage E-7 q6 -ac)- commissions or other payments with respect to any leasing of all or any part of the Property that will survive and remain unpaid after the Closing Date. (i) Wells. Seller shall disclose knowledge of any wells located on the Property. (j) Sewage Treatment System. To Seller's knowledge there is no individual sewage treatment system on or serving the Property. (k) Geotechnical and Environmental Disclosures. Except as disclosed to Buyer and in this Agreement or any exhibit hereto, to the best of Seller's information and belief, Seller is not aware of any geotechnical problems on the Property or contaminants, pollutants, hazardous wastes or hazardous substances present upon the Property in amounts that constitute a violation of any federal or state statute or regulation or local ordinance. (1) Public Improvements and Assessments. Seller has not received notice of any new public improvement project(s) or assessments, the cost of which a governmental entity may assess against the Property. (m) Methamphetamine. To Seller's knowledge, no methamphetamine production has occurred on the Property. Each of the representations and warranties contained in this Agreement shall survive the closing and the consummation of this Agreement by Buyer with knowledge of any such breach by Seller will not constitute a waiver or release by Buyer of any claims due to such breach. SECTION 9. SELLER'S CLOSING DOCUMENTS On the Closing Date, Seller shall execute and/or deliver to execute and/or deliver to the Title Company, with copies to Buyer, and make arrangements to have the closing agent record or file in the appropriate county land records any documents necessary to establish the marketability or insurability of Seller's title to the Property, including the following (collectively, the "Seller's Closing Documents"): (a) Deed. A Limited Warranty Deed conveying the Property to Buyer in the manner described in Section 5 herein. (b) Assignment of Warranties. An Assignment of Warranties, pursuant to which the Warranties described in Section 1(b), if any, will be assigned to Buyer. (c) Seller's Affidavit. An Affidavit of Title duly executed by Seller indicating that on the Closing Date there are no outstanding unsatisfied judgments, tax liens or bankruptcies against or involving Seller or the Property; that there has been no skill, labor or material furnished to the Property at Seller's request for which payment has not been made or for which mechanics' liens could be filed; and that there are no other unrecorded interests in the Property of which Seller has knowledge except as stated therein, together with such other certifications as may be required by a title insurance company to issue the Title Policy. (d) FIRPTA Affidavit. A non-foreign entity affidavit, properly executed and in recordable form, containing such information as is required by IRC Section 1445(b)(2) and its regulations. E-8 14 6-c'? 3 (e) IRS Reporting Fem. The appropriate Federal Income Tax reporting form, if any is required. (f) Recording Documents. Any necessary Storage Tank Affidavit, Well Certificate or similar document that is needed to record the Warranty Deed. (g) Other Documents. All other documents reasonably necessary to transfer marketable insurable title to the Property to Buyer free and clear of all liens. SECTION 10. BUYER'S CLOSING DOCUMENTS On the Closing Date, Buyer will execute and/or deliver to Seller the following (collectively, the "Buyer's Closing Documents"): (a) Purchase Price. The Purchase Price by check or ACH deposit of U.S. Federal Funds. (b) Title Documents. Such Affidavits of Purchaser or other documents as may be reasonably required by a title insurer in order to record the Seller's Closing Documents and issue the Title Policy. SECTION 11. PROPERTY CONVEYED "AS IS" Buyer accepts any property interest conveyed herein "AS IS WITH ALL FAULTS" and is not relying upon any representations or warranties or promises of any kind whatsoever, express or implied, from Seller, except as otherwise provided herein or in one of Seller's Closing Documents. ANY WARRANTIES OF PHYSICAL CONDITION OF THE PROPERTY CONTAINED IN THIS AGREEMENT INCLUDING, BUT NOT LIMITED TO, CENTRAL AIR-CONDITIONING, HEATING, PLUMBING, WIRING, AND CONNECTION TO CITY SEWER AND CITY WATER ARE VOID to the extent permitted by law. This provision shall survive delivery of the Deed. All other warranties specified in this Agreement remain the same. SECTION 12. VOLUNTARY SALE This is a voluntary negotiated sale between Seller and Buyer. The transaction contemplated hereunder is not being made under the threat of eminent domain. SECTION 14. OPERATION PRIOR TO CLOSING During the period from the Effective Date to the Closing Date (the "Executory Period"), Seller shall operate and maintain the Property in the ordinary course of business and in accordance with reasonable business standards. Seller shall not, however, execute any contracts, leases or other agreements affecting the Property during the Executory Period. SECTION 15. CONDEMNATION If, prior to the Closing Date, eminent domain proceedings are commenced against all or any part of the Property, Seller shall immediately give Buyer written notice of such fact and Buyer will have the right (to be exercised within 30 days after receipt of Seller's notice) to terminate this Agreement. If this Agreement is so terminated, neither party will have further obligations under this Agreement. If Buyer does not so terminate this Agreement, the Purchase Price will be reduced by any condemnation awards E-9 q6 -aq paid to Seller prior to closing and Seller shall, at closing, assign to Buyer all of Seller's right, title and interest in and to any award made or to be made in the condemnation proceedings. SECTION 16. RISK OF LOSS Seller assumes all risk of loss related to damage to the Property prior to the Closing Date. In the event of fire, destruction or other casualty loss to the Property after Seller's acceptance of this Agreement and prior to closing and funding, either Party may terminate this Agreement and neither Party shall have any further rights or liabilities hereunder. SECTION 17. REMEDIES If Buyer defaults under this Agreement, Seller will have the right to terminate this Agreement by giving written notice to Buyer or Seller will have the right to seek and recover damages from Buyer for Buyer's nonperformance of its obligations hereunder. If Buyer fails to cure such default within the time period specified by Minnesota Statutes § 559.21, this Agreement will terminate. If Seller defaults under this Agreement, Buyer will have the right to seek and recover damages from Seller for Seller's nonperformance of its obligations hereunder or to seek specific performance of this Agreement; provided that any action for specific performance must be commenced within six (6) months after the Closing Date. SECTION 18. CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER The obligations of Seller to consummate the transaction contemplated by this Agreement are subject to the fulfillment on or before the Closing Date of all of the following conditions, any of which may only be waived by the Seller in writing: (a) Representations and Warranties True. All of the representations and warranties of Buyer contained in this Agreement shall be true and correct in all respects on and as of the Closing Date. (b) Covenants and Agreements Performed. Buyer shall have performed and complied with all covenants and agreements or conditions contained in this Agreement and delivered all documents, required by this Agreement to be performed, complied with or delivered to Seller. (c) Buyer's Closing Documents. Seller shall have received Buyer's Closing Documents as described in Section 10 of this Agreement. E-10 q a-as SECTION 19. BROKER'S COMMISSION Seller and Buyer represent and warrant to each other that they have dealt with no other brokers, finders or the like in connection with this Agreement. Seller and Buyer each agree to indemnify each other and to hold each other harmless against all claims, damages, costs or expenses of or for any other such brokerage fees or commissions resulting from their actions or agreements regarding the execution or. performance of this Agreement. SECTION 20. NOTICES Any communication, notice, or demand of any kind which either party (except for any notice given pursuant to Minnesota Statutes § 559.21) may be required or may desire to give to or serve upon the other shall be made in writing, and such notice shall be deemed sufficiently given if and when it is addressed to then other party as provided below and either (a) delivered personally, (b) deposited in the United States mail, registered or certified, with postage prepaid, (c) deposited with an overnight delivery service for next day delivery, or (d) telecopied: To Buyer: Richfield Housing and,Redevelopment Authority Attention Mr. John Stark, AICP, Director of Community Development 6700 Portland Avenue Richfield, Minnesota 55423-2599 Fax: (612) 861-8974 To Seller: Greater Metropolitan Housing Corporation Attention: Carolyn Olson 15 South Fifth Street, Suite 710 Richfield, MN 55402 Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit as aforesaid; provided, however, that if notice is given by deposit, then the time for response to any notice by the other party shall commence to run one business day after any such deposit. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, three days prior to the effective date of such change. SECTION 21. MISCELLANEOUS PROVISIONS (a) Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the transaction and it supersedes all prior understandings or agreements between the parties hereto. (b) Binding E. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. (c) Survival. All the terms, covenants, agreements, representations and warranties made by the parties in this Agreement or in any document or instrument delivered by the parties pursuant to this Agreement shall survive this Agreement and the closing, and are not merged into any deed to be delivered by Seller to Buyer, and shall remain enforceable under the terms of this Agreement. E-11 q6 -c.). ? (d) Waiver; Modification. The failure by either party to enforce its rights hereunder shall not constitute a waiver of said party's right to demand future performance of the provisions hereof. No modification or extension of this Agreement shall be binding unless in writing and signed by the parties. (e) Time of Essence. Time is of the essence of this Agreement and each of its provisions. (f) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. (g) Assignment. This Agreement shall not be assigned by either party without the prior written consent of the other, which consent shall not be unreasonably withheld. (h) Section Headings. The section headings used in this Agreement are for convenience or reference only and shall not be deemed to vary the content of this Agreement or its covenants, agreements, representations and warranties or limit the provisions or scope of any section. (i) Subsequent Documentation. Each of the parties hereto agrees to execute and deliver to the other party, as requested, any additional documents and/or instruments that may reasonably be determined as necessary to consummate the transaction. (j) Wells. At closing Seller shall provide Buyer with a statement regarding any wells that are located on the Property, as required by Minn. Stat. § 1031.235. If any wells are located on the Property, Seller shall cause the existing well on the Property to be sealed and capped in accordance with all applicable laws and regulations prior to closing. (Signature pages follow.) E-12 L1Q-a? IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the day and year first above written: BUYER HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its By Its SELLER GREATER METROPOLITAN HOUSING CORPORATION By Carolyn E. Olson Its President This Instrument Was Drafted By: E-13 48-a s' EXHIBIT A to Purchase Agreement LEGAL DESCRIPTION E-14 q 8 -a 9 EXHIBIT B to Purchase Agreement CONTRACT FOR PURCHASE OF FIRST LOOK PROGRAM PROPERTY E-15 46-3D Neighborhood Stabilization Program Purchase Agreement Addendum City Purchase This Neighborhood Stabilization Program Addendum (Addendum) is to be made part of the Purchase Agreement (Agreement) dated 20_, between (Seller) and (Buyer), for the property located at: , MN, (the Property). A. Purchase Discount The Buyer's obligation to close this transaction with federal assistance is expressly contingent upon the results of an appraisal ordered by Hennepin County. The Buyer is using certain federal funds that require the purchase price to be at or below 85 percent of the appraised value on the appraisal ordered by Hennepin County. The Buyer shall be allowed 10 days after the date of this Agreement to cancel based on the appraisal if the condition cannot be met, in which event this Agreement will be null and void and the Seller shall return all earnest money to the Buyer. B. Environmental Review Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of an environmental review and receipt by Hennepin County under 24 CFR Part §58. The parties further agree that the provision of any fund to the purchase is conditioned on Hennepin County's determination to proceed with, modify or cancel the purchase based on the results of said environmental review. Further, the buyer shall not undertake or commit any funds to physical or choice-limiting actions, including property acquisition, demolition, movement, rehabilitations, conversion, repair, construction, or execution of a construction contract prior to the environmental clearance, as denial of any funds to purchase may result. C. Disclosure to Seller with Voluntary, Arm's Length Purchase Offer This is to inform you the Buyer would like to purchase the property under this Agreement, if a satisfactory agreement can be reached for a proposed project which may receive funding assistance from the U.S. Department of Housing and Urban Development (HUD) under the Neighborhood Stabilization Program. Seller's Initials Buyer's Initials E-16 g6_3i Please be advised that, the Buyer possesses eminent domain authority to acquire property, however, in the event you are not interested in selling your property, or if we cannot reach an amicable agreement for the purchase of your property, the Buyer will not pursue its acquisition under eminent domain. Your property is not a necessary part of the proposed project and is not part of an intended, planned, or designated project area where substantially all of the property within the area is to be acquired. The Buyer is prepared to offer you ($) to purchase your property and receive clear title to the property under the conditions described in the attached Agreement. The Buyer believes this amount represents the current market value of your property. Since the purchase would be a voluntary acquisition, arm's length transaction, you would not be eligible for relocation payments or other relocation assistance in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA). Also, as indicated in the contract of sale, this offer is made on the condition that no tenant is currently or will be permitted to occupy the property before the sale is complete. Again, if you do not wish to sell the property, the Buyer will take no further action to acquire it. If you are willing to sell the property under the conditions described in this Agreement, please sign the Agreement and initial this Addendum. Your signature on the Agreement and your initials on this Addendum constitute acknowledgement that you have received this disclosure. D. Minimum Property Standards Seller shall allow the Buyer to complete an inspection of the property within 10 days after the date of this Agreement to establish if the property will meet the Hennepin Housing Consortium New Construction and Rehabilitation Standards (Standards). If the Buyer determines that the property does not meet the Standards, the Buyer shall have the right to cancel this Agreement, in which event, this Agreement will be null and void and the Seller shall return all earnest money to the Buyer. Seller's Initials Buyer's Initials E-17 y8-3a EXHIBIT F CERTIFICATIONS REGARDING LOBBYING AND DEBARMENT 1. CERTIFICATION REGARDING LOBBYING Before the HRA releases any of the funds covered by this Agreement, GMHC shall sign the following certification statement in accordance with the requirements of 24 CFR 570.611, 24 CFR 85.36, and 24 CFR 84.42: The undersigned hereby certifies, to the best of his or her knowledge and belief, that: (1) NO FEDERAL APPROPRIATED FUNDS HAVE BEEN PAID, OR WILL BE PAID, BY OR ON BEHALF OF THE UNDERSIGNED, TO ANY PERSON FOR INFLUENCING OR ATTEMPTING TO INFLUENCE AN OFFICER OR EMPLOYEE OF AN AGENCY, A MEMBER OF CONGRESS, AN OFFICER OR AN EMPLOYEE OF CONGRESS, OR AN EMPLOYEE OF A MEMBER OF CONGRESS IN CONNECTION WITH THE AWARDING OF ANY FEDERAL CONTRACT, THE MAKING OF ANY FEDERAL GRANT, THE MAKING OF ANY FEDERAL LOAN, THE ENTERING INTO OF ANY COOPERATIVE AGREEMENT, AND THE EXTENSION, CONTINUATION, RENEWAL, AMENDMENT, OR MODIFICATION OF ANY FEDERAL CONTRACT, GRANT, LOAN, OR COOPERATIVE AGREEMENT. (1) IF ANY FUNDS OTHER THAN FEDERAL APPROPRIATED FUNDS HAVE BEEN PAID OR WILL BE PAID TO ANY PERSON FOR INFLUENCING OR ATTEMPTING TO INFLUENCE AN OFFICER OR EMPLOYEE OF AN AGENCY, A MEMBER OF CONGRESS, AN OFFICER OR AN EMPLOYEE OF CONGRESS, OR AN EMPLOYED OF A MEMBER OF CONGRESS IN CONNECTION WITH THIS FEDERAL CONTRACT, GRANT, LOAN, OR COOPERATIVE AGREEMENT, THE UNDERSIGNED SHALL COMPLETE AND SUBMIT STANDARD FORM LLL, "DISCLOSURE FORM TO REPORT LOBBYING," IN ACCORDANCE WITH ITS INSTRUCTIONS. (2) THE UNDERSIGNED SHALL REQUIRE THAT THE LANGUAGE OF THIS CERTIFICATION BE INCLUDED IN THE AWARD DOCUMENTS ALL SUB-AWARDS AT ALL TIERS (INCLUDING SUB-CONTRACTS, SUB-GRANTS, AND CONTRACTS UNDER GRANTS, LOANS, AND COOPERATIVE AGREEMENTS) AND THAT ALL SUB-RECIPIENTS SHALL CERTIFY AND DISCLOSE ACCORDINGLY. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a F-1 116-33 prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. IN WITNESS WHEREOF, I have set my hand this (date) BY: Title: FOR: (organization) II. CERTIFICATION REGARDING DEBARMENT Before the HRA releases any of the funds covered by this Agreement, GMHC shall sign the following certification statement: Certification Regarding Debarment, Suspension, and Other Responsibility Matters Primary Covered Transactions This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 29 CFR Part 98, § 98.510, Participants' responsibilities. The regulations were published as Part VIII of the May 26, 1988 Federal Register (pages 19160 - 19211). AS THE DULY AUTHORIZED REPRESENTATIVE OF THE APPLICANT, I CERTIFY, TO THE BEST OF MY KNOWLEDGE AND BELIEF, THAT NEITHER THE APPLICANT NOR ANY OF THE PRINCIPALS: (1) ARE PRESENTLY DEBARRED, SUSPENDED, PROPOSED FOR DEBARMENT, DECLARED INELIGIBLE, OR VOLUNTARILY EXCLUDED FROM COVERED TRANSACTIONS BY ANY FEDERAL DEPARTMENT OR AGENCY. (2) HAS, WITHIN A THREE-YEAR PERIOD PRECEDING THIS APPLICATION, BEEN CONVICTED OF, OR HAD A CIVIL JUDGMENT ENTERED AGAINST THEM FOR COMMISSION OF FRAUD OR OTHER CRIMINAL OFFENSE IN CONNECTION WITH OBTAINING, ATTEMPTING TO OBTAIN, OR PERFORMING A PUBLIC (FEDERAL, STATE OR LOCAL) TRANSACTION OR CONTRACT UNDER A PUBLIC TRANSACTION; VIOLATION OF FEDERAL OR STATE ANTITRUST STATUTES OR COMMISSION OF EMBEZZLEMENT, THEFT, FORGERY, BRIBERY, FALSIFICATION OR DESTRUCTION OR RECORDS, MAKING FALSE STATEMENTS, OR RECEIVING STOLEN PROPERTY. F-2 q8-3y (3) IS PRESENTLY INDICTED FOR OR OTHERWISE CRIMINALLY OR CIVILLY CHARGED BY A GOVERNMENTAL ENTITY (FEDERAL, STATE OR LOCAL) WITH COMMISSION OF ANY OF THE OFFENSES ENUMERATED IN PARAGRAPH (2) (B) OF THIS CERTIFICATION, AND (4) HAS NOT, WITHIN A THREE-YEAR PERIOD PRECEDING THIS APPLICATION, HAD ONE OR MORE PUBLIC TRANSACTIONS (FEDERAL, STATE OR LOCAL) TERMINATED FOR CAUSE OR DEFAULT. (5) WHERE THE APPLICANT IS UNABLE TO CERTIFY TO ANY OF THE STATEMENTS IN THIS CERTIFICATION, HE OR SHE SHALL ATTACH AN EXPLANATION TO THIS APPLICATION. (6) THE UNDERSIGNED SHALL REQUIRE THAT THE LANGUAGE OF THIS CERTIFICATION BE INCLUDED IN ALL SUBCONTRACT AWARDS PURSUANT TO THIS CONTRACT AND AGREES TO REQUIRE ANY SUCH SUB- CONTRACTORS TO SIGN A DEBARMENT CERTIFICATION. (Name and Title of Authorized Representative) (Signature) F-3 AGENDA ITEM # REPORT # STAFF REPORT r HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 199 2009 4C 43 REPORT PREPARED BY: REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: K REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a proposal from Hoisington Koegler Group, Inc. to update the marketing materials for the Lakes at Lyndale Master Plan. 1. RECOMMENDED ACTION: By Motion: Approve a proposal from Hoisington Koegler Group, Inc. to update the marketing materials for the Lakes at Lyndale Master an and authorize staff to enter into an agreement consistent with the terms of that proposal. II. BACKGROUND 771 In 1999 the Richfield Housing and Redevelopment Authority (HRA) adopted the Lakes at Lyndale Master Plan. Marketing materials were then created (attached) to summarize the plan and its implementation. Since that time, the marketing materials for the Lakes at Lyndale Master Plan have been an invaluable tool to staff in summarizing the long term plan for that area and in marketing the area to developers and prospective property owners/tenants. Staff is of the opinion that the principals and concepts expressed in the Lakes at Lyndale Master Plan are still relevant and the 2010 Comprehensive Plan Update reflects the Master Plan. The marketing materials, however, should be updated to 101909 Lakes at Lyndale show the progress that has been made and to revise the dates for forecasted development. The consulting firm of Hoisington Koegler Group; Inc. (HKGi) assisted staff in formulating the Lakes at Lyndale Master Plan and the associated marketing materials. Staff only requested a proposal from HKGi because some of the consulting staff that worked on the original plan are still employed with the firm and because many of the graphics that were used in the 1999 marketing materials are still available to HKGi. III. BASIS OF RECOMMENDATION A. POLICY • The Lakes at Lyndale is an identified Redevelopment Planning Area in the City of Richfield. • In 1999, a Master Plan and associated marketing materials for the Lakes at Lyndale area was produced by HKGi and adopted by the HRA. • While the Master Plan is still relevant, the marketing materials have become outdated. B. CRITICAL ISSUES • The marketing materials for the Lakes at Lyndale Master Plan have been very effective in summarizing the Master Plan and marketing the area to prospective developers, property owners and tenants. • With developable parcels at the Lyndale Garden Center site, the K- Mart site, the Bridgeman's site and other locations; these marketing materials are as important now as ever. C. FINANCIAL • HKGi's proposal is for an amount not to exceed $4,800. • The necessary funds are available in the HRA's budget. D. LEGAL • Only one proposal is legally required for "professional services." ALTERNATIVE KECOMMENDATION(S) • Do not update the marketing materials for the Lakes at Lyndale area. • Conduct a complete review and update of the Lakes at Lyndale Master Plan at additional expense. • Instruct staff to seek other proposals for the work. ATTACHMENTS • The 1999 mar • Proposal from Lyndale area. brochure for the Lakes at Lyndale area. to update the marketing materials for the Lakes at I V 1. PRINCIPAL PARTIES EXPECTED AT MEETING I r The Vision for Lakes at Lyndale Galewayj lo- Hmj?q R&d aRd Rmll'wrm?p, i ?t Z4,ak?s ar -ire Dear Community Members, During a. 23-?nonth. study in. 1997 and 1998, hundreds gf'Riclifield residents and business people ?rorked together' on a new vision for the Richfield Lake area, now known as "Lakes at Lyndale. " This area is located front 62nd Street to 67th Street, and Pleasant Avenue to I-35W. Co?nmunity ?nelnbens attended workshops, reviewed concepts and talked about the.features that were i??tportant to them in the Lakes at Lyndale at-ea. The resulting master plan for Lakes at Lyndale is an exciting one not,just for the neighborhood, but for the entire corninunity. It c?•eates neu- housing and greater housing choices; new retail, restaurants, gfice space and entertainment; and a new postal facility at a better' location. It makes Lakes at Lyndale the tit-bait heart of our co?nnuutity tchere people will come to lire, to auork, to shop and to e?;loy the lakes. We believe this is an exciting plan and think you will too. Share the Lakes at Lyyndale vision! av ? ti Mayor Mar ' I. Kinsch R. The Lakes at Lyndale Mission To make The Lakes Lit. Lvndale area Hichfield's tlrriving turhan center. pr()viding nu,re lu,using oppor- tunities, upgrading Inisiricss prgwrlies and providirng fuller enJoYllwilt of hoL11 WOO(I Lake and Hichfielcl Lake. Achieving this mission will help ensure Richfield remains llic iwst place to live. work, learn and do business in the nu,irop()litan area. Lakes at Lyndale Themes "W? Auleivc -- The Lakes are a ni luritl centerpiece to an tirban downtown. AiW Hrn?siiirt -- More choices and clew locations for living. mof Pcrpic -- A place for walking wit It nat lire patllway-s and urban sk.vwa?.s. -mme Trunsil -- Bringing efficient transit service closer to.vou. mol 1dowilq -- Distinctive look, visual appeal and colnlectiorn isse Gutcir(iPs -- Atlractive front (toot's to the a>nunuiiit.y. Blishws,,? -- npportiurities for investillent 've atul cre'll ing value. Nevi 66th Street edge _ ' 66TH STREET 66TH STREET GATEWAY I Skyway M New Housing 0 Office M Commercial 1-7 F- i Transit Station/Stop New Parking Areas ramp Uanx 67TH STREET I?- lull E--, -. ; City of Richfield I Ca,?i at Gcynda??-B?c??ci?? ReaCu? Lakes at Lyndale Objectives 1) I lottsing 2) New retail. restaurants, office and entertainment 3) New. better located postal facilit?Target Areas The master l)lan has been divided into target areas for phased redevelopment (refer to map on page - ). EICII area is being explored for its potett- tiat Ir, rtwet the Lakes at I.Yndale objectives and it determination made whether existing land uses mist sta,%, tir go. 'What folloXN"s is a brief summat;v of sonte of those areas where development is sched- uled to occur through 2005. T Gi- o wrcp Pm-1, Co-op -- The (;ratnercv Park Co-op at 67th St rccl and Llvndale Av cmw is a 160-unit housing developnunt wilh mtdet-graund parking on the site of the Richfield VFW The I2-stnt,Y building cooperative for senior citizens is ai 1 awl wt 1 1() an 8.000-squille-foot VFW facilil.v 1998-2001 THE LAKES AT LYNDALE VISION- creating new entertainment and leistere opportimilies in Richfield. A new cinema, housing and gff`tce space in the Northwest corner ol'Lyndale Arenue and 66th Street is the proposed alternative to the K-mart site. 22 Urboo I'1*11u o -- Urban Village is a conuuercial- residetttial "mixed use.. development bordei-ed by Lvndale :AVr Anue. 661 It St rcet. Pleasant Avenue and 671h Stret_?t. Urban Village adds 90,000 srlum-e feet of retail and office space and 214 new housing units I() III(, conullimil v. It relocates Mc1 >onalds to the corner ()f 67th Street and Lvrtdi le 2lvenue. 1999-2001 (s Tht, VFIi"!Gr(meo c.il Block -- Retail and expanded ,,ffice space would be located w 66tH Street amt LYudalc :w,'ttnc atljaccmi Io th?nt??co-ol,. 1999.2002 ® L//rrrlnlr, Gordcrr CoWc" Arec, -- \]nlt i-unit housing and retail are, in III(, plait for this Ltortion of Lakes a1 I.Ymk lc. 2000-2003 (5 Posl 0/Jim Arco -- Improved access in the area would be coupled wit It ;t p„st ?,ff'icc t hat 1-1 wi* serves t lic c(unmtmit 2000-2005 ©IC rutol .1,'.'u --The plan calls fora fut ur,, ciiienw, housing and office space. 2002-2005 ,aka al'- P?ap 10, A,W rr v -- The Lakes are a nat Ural cent erpiece io alt Ilrholt downtowlt. Richfield Lake and Wood Lake remain wild and natttrol. Richfield Lake water duality is improved t hrough storiuwal cr ponding and it water I reat- ment svst em for rainwal er ram-off from reads. Through landscaping and design, the character of the likes radiates along the streets. walkwavs and parks. mw? llm(si o fj -- N9ore choices allot new location", for living. Approximately L/100 new hotlsillg tulits are envi- siotwd al Lakes at l.yrndale inchuliw? townhonues. condominiums, apart merits. and senior cooperal ive and assisted housing. In oddit ion to expanding t_he variety of housing in Richfield. Lakes at Lvndale will offer a l(wation that is near the lakes. shopping and entcrtainnient. ov Pcohle> -- A place for walkin, with nmtlrc pathways and urhan skYwa.Vs. Existing nature pal li ways are enhanced by a park- like connection cslahlished hetween the two lakes. A svst.em of pedestrian ways and ptthlic spaces includes skyways and street-level walkways to provide safe crossings at Lvndale :Avenue and West Gail h St reel. I'edesl rian woes extend along t he Iml.i(w slreets and IltlO develop1twill silos. NNW Ti.(msil -- Bringing efficient Transit service closer to you. Transit cnltancentenis inchtde 1) a transit shelter ill Wesl 6tit It St reet. just east of Lvndale Aventle: 2) Mn/DOT express hus pullouts al the 66111 Street and 1-35\bridge: and :3) circulator bus service ill t h c 6:5111 and 66th Street corridors ill Lakes at Lvndale. New circulator service is intcgratcd with existing express anti cross-town services. EW Mc»litl/ -- Dislinctive look, visual appeal and connect ion The areal has a connected visual identity. The takes are its theme. Nattire is carried front the lakes thrmighotll the urhan district through the use of flowers. treas. plants. garden-like paths. benches, cast stone columns, plantings and small gat (wring spots. --mm'O' Grlictrays -- Attractive front doors to the conttntulity. t'pon entering Lakes at Lvrndale from I.vndale Avenue or 66th Street, the first impression is that. Id it thriving colnlllntllllty alld an attractive and distinctive neigllhorhood. That illipression is created lllrottgh ncw investment acct reinvesiment, and through landscaping, lights. and other anlellitics. mmie Bitsiticss -- Opportunities for investment and creating value- \'w shopping. office space, restallrants and entcrtaiimwttl ahotutd at Lakes at I,vndate, creating new investment for the community. Ricllfield's netiv cinema is featured on the K-mart site at 66111 h Sl rcet and Lvudale Avenue. Restaurants, SImps and housing are next 1() the natural charm of Wood Lake and Richfield Lake. z Highway 1-35W and Crosstown 62 Improvements (MNDOT) Perimeter Treatment System of Runoff Water 1999.2000 Lake Em. ironmental Quality Maintenance Program Ongoing 2005- 2010 After 2010 1 100 After 2010 y"", 9Z-1 l 2002.2005 2002- 2 005 2002-2005 Regional Recreational T[ai. 2001.2005 67TH STREET I / If-] I 1 F?1?1(- KEY .COMPONENTS BLOCK DEVELOPMENT REGIONAL RECREATIONAL TRAIL RICHFIELD LAKE TREATMENT SYSTEM Sooner-1999 2001-2005 1999-2000 concurrent with MNDOT HIGHWAY IMPROVEMENTS MNDOT Highway improvements t? 1999.2003 Later-after 2010 NOTE: Dates are best estimates only for planning purposes and do not represent actual construction periods. q c-a Creative Solutions for Land Planning and Design [MIN Hoisington Koegler Group Inc. [on September 8, 2009 Karen Barton, Community Development Manager City of Richfield 6700 Portland Avenue Richfield, MN 55423 Re: PROPOSAL - Lakes at Lyndale marketing brochure. Dear Karen: Thank you for the opportunity to submit this proposal to prepare a marketing brochure for the Lakes at Lyndale (66`h & Lyndale) district of Richfield. HKGi has prepared similar visioning brochures for other communities. As you know, HKGi prepared the master plan for the Lakes at Lyndale district in 1998 and assisted with the original marketing brochure shortly after. A new brochure will be a re-expression of the continued vision for the district with fresh graphics, new photography and up-to-date information. As in the past, a new brochure will primarily target prospective developers, businesses and residents. With this proposal, HKGi will: 1. Photograph the district: Coordinate with you to determine elements of the district that best express its character and identity. We will photograph those areas and select images to be part of the brochure. 2. Produce new, key graphics: Create two new plan graphics - an illustrative master plan and a public realm/systems diagram. We will coordinate with you to review draft versions of the plans and determine appropriate plan notations. 3. Copy edit the "story": Work with you to determine the message of the brochure and determine the flow of text to be included in the brochure. 4. Design the brochure: Prepare a couple of layout alternatives for your review. We assume there will be several rounds of review and modification through this process. The final brochure will be a print-ready, digital version of the brochure. 5. Assist with the first print run: Provide technical assistance to the printer as needed to produce the first print run of the brochure. The process may lead to slight modifications to the master print copy, which we will complete. 6. Provide needed digital files: Provide you with a CD containing all digital graphics, text and copy files. 123 North Third Street, Suite 100, Minneapolis, MN 55401-1659 Ph (612) 338-0800 Fx (612) 338-6838 yc-3 PROPOSAL - City of Richfield, Lakes at Lyndale Brochure September 8, 2009 Page 2 of 2 HKGi proposes to conduct the project for a fee not to exceed $4,800 including reimbursable expenses. We will ensure that the project is complete by the end of the calendar year. We look forward to continuing our working relationship. If you have any questions, please do not hesitate to contact me. Sincerely, Hoisington Koegler Group Inc. Ae?"Z u.C Bruce Chamberlain, ASLA Vice President AGENDA ITEM # 5 REPORT # 44 W-1 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 199 2009 REPORT PREPARED BY: JULIE URBAN/MICHELLE LEWIS, HOUSING SPECIALIST NAME, TITLE REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a subordination request of a Housing and Redevelopment Authority Foreclosure Purchase Incentive Program loan at 7336 Dupont Avenue. 1. RECOMMENDED ACTION: By Motion: Approve or deny subordination request of a Housing and Redevelopment Authority Foreclosure Purchase Incentive loan at 7336 Dupont Avenue. 11 II. BACKGROUND Katherine Molm has a purchase agreement to acquire a foreclosed home at 7336 Dupont Avenue. She has applied for a Foreclosure Purchase Incentive Program (FPIP) loan for $10,000 in down payment assistance. The primary mortgage lender requires that the primary mortgage be in first position requiring the Housing and Redevelopment Authority (HRA) to subordinate its lien and be in second position. The loan-to-value (LTV) ratio, including 50 percent of the FPIP loan, is at 83 percent (see attached LTV calculation). The HRA's subordination policy requires a LTV of 80 percent or less. Staff may grant an appeal of this requirement up to 85 percent LTV; however, all other HRA policies must be met. In this case, the closing costs for the FHA mortgage are six percent of the first mortgage amount, which exceeds the HRA policy that closing costs not exceed three percent. Because the 101909 7336 dupont subord appeal.doc KAREN BARTON, ASSISTANT COMMUNITY application does not meet all of the policies, it was denied by staff and is being taken to the HRA for an appeal. While the closing costs are high, there are several factors that mitigate the impacts of that. First, the applicant is obtaining an FHA mortgage, which generally has higher closing costs because of the requirement for mortgage insurance. In addition, up to $6,000 of the closing costs, and only 1.7 percent of the closing costs are part of the primary mortgage debt in front of the HRA lien. The house is a foreclosed property that requires substantial repairs. The first mortgage for $120,167 is a FHA 203k streamlined purchase/rehabilitation mortgage. The mortgage allows the buyer to finance 96.5 percent of the purchase price and rehabilitation costs to make permanent improvements to the property. The lender requires that an approved contractor complete the rehabilitation and the work is inspected before the final payment is made. No cash will be removed from the property; all of the financing will be for the purchase and rehabilitation of the property. III. BASIS OF RECOMMENDATION A. POLICY • The HRA's Subordination & Satisfaction policy requires a LTV of no more than 80 percent in order to agree to subordinate the HRA's interest. An objective of FPIP is to off-set costs associated with deferred maintenance and property damage associated with foreclosure and vacancy. Funds are needed to make the repairs necessary to the house at 7336 Dupont. B. CRITICAL ISSUES • The LTV exceeds the HRA policy of 80 percent. While the LTV of 83 percent meets the threshold for an administrative appeal, the HRA policy requiring that closing costs not exceed three percent is not being met. • Closing costs are typically higher for FHA-backed mortgages due to the requirement for upfront mortgage insurance premium. C. FINANCIAL • An application fee has been submitted for the subordination request. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION( S? 0 Deny the subordination request. V. ATTACHMENTS Loan to Value Calculation Photograph of 7336 Dupont Avenue Subordination & Satisfaction Policy VI. PRINCIPAL PARTIES EXPECTED AT MEETING Katherine Molm, applicant 5-- MOLM Loan to Value Calculation Katherine Molm 7336 Dupont Ave S Home appraisal value $ 150,000 HRA FPIP Loan $ 10,000 Summary of indebtedness First Mortgage $ 120,167 HRA Loan (amount considered for subordination) $ 5,000 Total Indebtedness $ 125,167 Loan to value ratio $ 125,167 - > 83% $ 150,000 101909 7336 dupont subord appeal.doc h? h? ?5r3 RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY SUBORDINATION & SATISFACTION POLICY EFFECTIVE OCTOBER 2008 SUBORDINATIONS Richfield Housing and Redevelopment Authority (HRA) loan recipients requesting subordination of the interest of the HRA in real property must submit a Subordination Request Form, the required supporting documentation, and a processing fee. Forms are available on the City of Richfield website (http://www.ei.richfield.mn.us/) or by calling the Community Development Department at 612-861-9760. Requests will not be considered until all documents and the processing fee have been received. Required Documents The following information must be submitted with the Subordination Request Form: 1. A typed letter dated and signed by the mortgagor, stating the reason for the requested subordination and the use of any equity being removed as part of the loan transaction. 2. A copy of the current appraisal (dated within six months of application) or other evidence of market value of the property that is acceptable to the HRA. 3. A copy of current title work (must indicate all debt against the property). 4. Explanation of remaining debts or liens with supporting documentation (i.e. most recent mortgage bill). 5. Estimated closing costs/settlement statement, where applicable. 6. Additional documentation may be required. Evaluation Criteria The Richfield HRA will subordinate its mortgage interest if all of the following conditions are met, to the extent that they are applicable: 1. Closing costs are reasonable. Generally this shall mean that the sum of all discount points, origination fees, and lender ancillary fees generally shall not exceed 3% of the new first mortgage amount. 2. If the HRA believes that the payment terms of the refinance are within the financial means of the borrower. 3. The total debt secured by the property, including the HRA lien and all superior mortgages, does not exceed 80% of the documented market value of the property. 4. Any equity being removed beyond the cost of the loan transaction will be used to improve the property. A typed letter, dated and signed by the applicant, must be submitted stating the use of any equity being removed. 5. The overall value of superior debt must not be increased by more than 50%. Exceptions may be granted by the HRA in cases where superior debts are found to be unusually low with sufficient equity protection. 6. If no more than one subordination request has been approved by the HRA in the past five years. 5-q 7. Property taxes, if not escrowed by the superior mortgage holder, must be current. The HRA will not subordinate to reverse mortgages. In most cases, interest-only loans or loans with interest- only options, revolving lines of credits or debt consolidation will not be allowed unless the HRA determines that an acceptable reason warrants this type of loan. The HRA may approve other subordination requests not meeting the conditions above on a case-by-case basis that are clearly in the best interests of the HRA, where the security of the HRA loan remains acceptable, and denial of the request will cause or contribute to a documented hardship on the part of the borrower. As a condition of approval, the HRA may require the Borrower to receive financial counseling. While many courses are available at no charge, the Borrower is responsible for any costs associated with the counseling. The course must be approved by the HRA. Fees The non-refundable fee for a subordination request is established by the HRA. If the subordination request is denied, the fee will be returned with the letter explaining the reason(s) for denial. If an appeal is subsequently requested, the fee be retained and is non-refundable. Processing Subordination requests will be processed by HRA staff, who will submit the request with a recommendation for action, to the Housing & Redevelopment Manager. The Manager may request review and final decision by the HRA. Requests for subordination should be submitted 30 days prior to the date the agreement to subordinate is needed. Exceptions may be made on a case-by-case basis. Appeal Process In cases where a subordination request does not meet the Policy, staff may grant an administrative appeal under the following circumstances: • Loan-to-value (LTV) ratio is greater than 80%, but no greater than 85%, and all other HRA policies are met; • Equity being removed for anything other than property improvements does not exceed $5000; • The amount of financing ahead of the HRA lien does not increase; or • Only one subordination agreement has been granted within the past five years. If an application is denied, the applicant may request an appeal in writing. Appeals will be submitted by staff to the HRA at the next regularly scheduled meeting, provided the request is made at least 10 days prior to that meeting. The HRA meets on the third Monday of each month. If the HRA grants an appeal outside the policy guidelines, the homeowners will be required to attend a financial counseling course. The course must be approved by the HRA and any costs associated with the counseling are the responsibility of the homeowners. The homeowners must provide proof of enrollment in an approved course or counseling before a Subordination Agreement is executed. SATISFACTIONS When a loan made by the HRA is paid in full, a document satisfying the lien will be prepared by the HRA and delivered to the borrower for recording. The borrower is responsible for the cost of recording the satisfaction. AGENDA ITEM # 6 REPORT # 45 MWAA STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 199 2009 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOF KAREN BARTON, COMMUNITY DEVELOPMENT ASST DIRECTOR NAME. TITLE ITEM FOR HRA CONSIDERATION: Consideration of the proposed Housing Audit Implementation Plan. 1. RECOMMENDED ACTION: By Motion: Approve the Housing Audit Implementation Plan. II. BACKGROUND In June of 2008 the Richfield Housing and Redevelopment Authority (HRA) was awarded a grant through the Urban Land Institute (ULI) MN Regional Council of Mayors to participate in the Opportunity City Pilot Program to conduct a comprehensive review of the City's housing programs. In April 2009, the audit was completed, and was accepted by the HRA at their April 20 meeting. A key component of the report was the recommendations and next steps, which included preparing an implementation plan, evaluating budget and staff resource implications tied to each recommendation, and prioritizing recommendations. Community development staff has discussed the various recommendations, the budget and resource implications of each recommendation, and have prioritized the recommendations. Based on this information, staff has developed an 10192009 Housing Audit Implementation KAREN BARTON, COMMUNITY DEVELOPMENT ASST DIRECTOR implementation plan to offer the most significant impact given our current staffing and financial resources. A number of the recommendations have been implemented over the past several months, including: • Continuing to fund the Transformation Home Loan program and increasing the maximum loan amount to $25,000; • Continuing to fund and expand the Kids @ Home program; • Providing a "one-stop-shop" approach for housing programs offered in the City of Richfield through our Housing Specialists; • Expanding and increasing partnerships with community resources to expand our outreach; • Proactively acquiring and demolishing substandard and/or vacant housing for future infill housing opportunities. Additionally, several of the recommendations are for programs/activities that are not currently administered by this department but have an impact on housing in the City: • Continuing to fund and implement the Point of Sale and Rental Licensing programs; • Research and implement an educational approach to code enforcement similar to Shoreview's Shine program; • Establishment of a small emergency fund to resolve minor code violations; and • Expanding the Household and Outside Maintenance for Elderly (HOME) program. Community Development staff will work with the departments/agencies administering these programs to discuss these recommendations. Staff is recommending the following implementation schedule for the remaining recommendations over the next two years: 2010 • Implement quarterly inter-departmental meetings to discuss housing-related issues; • Pursue a partnership with an architect to provide consulting services to Transformation Home loan and Richfield Rediscovered grant recipients; • Develop and implement an egress window grant/loan program to encourage the installation of egress windows in residences using basement areas for sleeping purposes; • Research programs to aid rental properties with remodeling and rehabilitation; • Evaluate additional methods to increase the use of the City's Community Development Block Grant (CDBG) funds; • Expand marketing program to ensure full utilization of City programs, including providing materials in alternate languages. 2011 • Develop and implement programs to encourage environmentally-friendly, sustainable construction for remodeling and new-construction projects; • Develop a rental relocation policy for the City; • Research Housing Improvement Area local government authority to address older common interest communities and promote rehabilitation and renovation; • Re-evaluate Senior Regeneration program relative to current market conditions; • Research alternate ways to zone land that would better manage and promote redevelopment; • Evaluate options to add new small-lot sing le-/multi-family move-up housing and higher density apartments with modern amenities to add a housing type to retain growing families and attract local workers. III. BASIS OF RECOMMENDATION A. POLICY • It is necessary to periodically review existing programs to ensure effectiveness, appropriateness, and prudent use of fiscal resources. B. CRITICAL ISSUES • Budget and resource limitations will impact if and how programs are actually implemented. C. FINANCIAL • Implementation of new programs and/or expansion of existing programs will likely result in budget impacts. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Do not approve the recommended implementation plan. • Modify and approve the recommended implementation plan. I V. ATTACHMENTS I VI. PRINCIPAL PARTIES EXPECTED AT MEETING ?-I JrTa n I Instif uh 3 ..=Urban Land Institute Minnesota/ Regional Council of Mayors Reg Opportunity City Pilot Program Summary Report ? City of Richfield ULI Minnesota & the Regional Council of Mayors (P -J? Urban Land Institute (ULI) Mission: ULI provides responsible leadership in the use of land and in the creation of thriving communities worldwide. Urban Land Institute Minnesota (ULI MN): ULI Minnesota actively engages public and private sector leaders in land use planning and real estate development to learn, network and join in meaningful, strategic action. The filture holds many challenges and opportunities; we need the diversity of 'ULI Minnesota's professional community to meet them wisely. Regional Council of Mayors (RCM) Supported by ULI Minnesota, the nationally recognized Regional Council of Mayors represents Minneapolis. Saint Paul and 36 municipalities in the developed and developing suburbs. This collaborative partnership provides a nonpartisan platform that engages mayors in candid dialogue and peer-to-peer support, and builds ali-areness and action for a more connected, more sustainable and more prosperous region. Table of Contents • Opportunity City Pilot Program Summary - Richfield's Story ........................ Page 3 • Housing Audit Process ................................................................................. Pages 4-6 - City Goals & Policies ..........................................................................Page 4 - Key Community Factors ..................................................................... Page 4 - Program Review .................................................................................. Page 5 - Community Change Report Key Points ..............................................Page 6 - Site Evaluation Summary ....................................................................Page 7 • Recommendations ..................................................................................... Page 8 - 10 • Next Steps ....................................................................................................... Page 11 • Sponsors & Program Participants ................................................................... Page 12 • Appendix - Includes detail background surrounding all aspects of the housing audit process and detail on the review of housing programs, evaluation of their effectiveness and examples of best practices. 2 Opportunity City Pilot Program Report Summary - Richfield's Story Program Goals/Outcomes: The goal of the Opportunity City Pilot Program is to build on the collaborative relationships among Regional Council of Mayors (RCM) and Urban Land Institute (ULI) professionals to identify and implement best practices that support a full range of housing choices for economic stability and regional prosperity. The City of Richfield is one of five metropolitan suburban communities selected to participate in the ULI MN/RCM Opportunity City Pilot Program. Richfield's Mayor, Debbie Goettel, is an active participant in the RCM. The Richfield HRA committed $5,000 to the Opportunity City Pilot Program as well as countless staff hours in the collection of information, evaluation of tools and strategies and coordination related to the housing audit. By working together and learning from each other, the expected outcome of the process is to develop an approach that identifies local housing tools and strategies that can serve as a model for other cities and be brought to scale at the regional level. In addition. implementation of new tools and strategies will enable suburban cities to better prepare themselves for the future through preservation, rehabilitation and production of quality housing units, use of regulatory incentives, incorporating sustainability and connecting housing to jobs and transportation networks. Process: The Housing Audit: 1.) Review of the housing framework. 2.) Analyze the Community Change Report as it relates to demographic and household data. 3.) Review and evaluation of existing city tools and strategies surrounding the preservation and production of housing choices. 4.) Identification of specific recommendations Richfield's Story The City of'Richfield is one of the oldest first-ring suburbs in the Twin Cities. Rich with history, the City is a post-WWII outgrowth of 4inneapo1is for those tia,ho wanted a shrrpler, quieter life mvay fi°onr the big city. Over the years, Richfield developed as a bedroom connnunity with single-fancily neighborhoods. Apartments were developed along the main transportation corridors. Richfield's infrastructure includes urr established trarrslrortution system (roads, transit, pathways acrd hike paths) a variety ufparks and both public and private school options. Its cormnercial base provides needed services within a few miles of the resiclerrtial neighborhood These tire all key components of a healthy community. Richfield is currently in a re-growth position. Diversity in age, housing affordability, race and ethnic background provides the basis for stable young family growth. This helps to balance the Richfield school bast: a growing challenge.for marry first-ring suburbs. There will be little growth in new single-family housing stock. Therefore, continuing to reinvest and reinvent the existing homes by offering cptalilly tools acrd strategies that provide opportunities for new households will remain important. There is some choice in style, location, and crffor (1ahility, hit/ avarilahility of existing hortsing is a key issue. There crre few choices for young renters, since existing apartments are older and similar in style with limited amenities. Single-fancily homes are uttrcrctive as starter homes and are moldy affordable as first-tine pin-chase options. However, as households grow there are limited opportunities for move-rip housing. Retention of middle-aged households is lower than other cities evaluated (15% for single- and 22% overall), which could be a_/actor in the limited choice for new hortsing options. Opportunities for mixecl uses acrd higher valued housing will he irrrportant us the City evaluates redevelopment areas. As the City moves fortvarct' confint.ting to invest in the existing housing stock while providing resources for more modern move-up housing is all hnportant commntnily housing police and reinvestment strategy. Helping spur redevelopment so that mixed income. higher density development can occur will continue to help the City be economically and competitively viable. for local implementation. City Housing Goals and Policies: The Opportunity City Pilot Program has five key themes in support of a full range of housing choices: • Preservation and rehabilitation. • Production of hollSing units that support varied resident life cycles and incomes. • Use of regulatory incentives • Sustainability • Jobs/housing balance connected to transportation systems. The review of the City of Richfield's and policies indicates a wide range of support for these key themes. The various community goals are incorporated into the City's current comprehensive plan. Diversify housing stock-redevelopment and infill • Encourage '`move-up" housing to retain families as they grow. • Do redevelopment that provides connections/integration of land uses and provides opportunities for social interaction. Maintain existing housing stock • Support maintenance. • Encourage quality materials and design. Provide a mix of housing types and values to accommodate a mix of incomes • Target renovation programs to families and seniors in need. • Review land use and zoning ordinances to allow housing diversity • Promote the development, management and maintenance of affordable housing. Maintain and enhance urban "home town" character of the City • Support walkability. • Provide housing that meets the changing resident needs. • Encourage green building. • Target density and scale that createslpreserves neighborhood character. Evaluate Community Factors: In every city. there are internal and external factors that hinder the city's ability to provide a full ranee of housing choices. In Richfield, several factors were evident, as determined through interviews with staff, program users, community activists/leaders and service providers. The City is fully developed • No land for development of new housing. • New housing on redeveloped sites is expensive. Middle-income housing is the predominant housing type with an older housing stock • Ongoing reinvestment required. • Smaller sized single-family homes are not attractive to growing families. • Need for more functional space requires a large private investment. • Old, worn apartment complexes-stagnant reinvestment and limited amenities • Limited variety in apartments-mostly 1-2 bedroom, same style-not very marketable. • Limited opportunities for new single-family housing as families grow. • Limited supply of housing for lowest-income residents. There is an increasingly diverse population • Communication challenges for City services. • Large extended families in small homes. There is limited funding • HRA levy maximum is not enough to address large-scale housing issues. • Subsidy required to rehab and/or build affordable housing is significant-property-by- property process with limited City capacity to implement existing and new programs. The Richfield Housing Audit included several phone interviews with key stakeholders and housing service providers. The interviews provided excellent background into the city's community history and changes as well as feedback on the success and challenges of existing programs. The interview questions and answers are attached to the summary report. Special thanks to the following who participated in the interviews. • Suzanne Sandahl. Richfield HRA Chair • Susan Rosenberg. Former Richfield COLIncillnember • Camillo DeSantis. Attainable Housing Committee Chair • Jeremy Larson. Resident- Richfield Rediscovered User • Davc Schaeffer. Richfield Remodeling Advisor • Jim Graham. County CDBG Program Manager • Rick Regneir. City Building Official 0 Suzanne Snyder. Greater Metropolitan Housing Corporation Program Review Housing Reinvestment, Nezv Housing, Land Use & Official Controls Program Review: Richfield HRA supports a variety of housing programs for home renovation and redevelopment. The programs target a wide range of household incomes and specific housing issues from health and safety items to large renovations and intill development. Redevelopment has been a key priority for many years and has resulted in new multifamily units --many tar?etina the senior population. The followin , is a summary of the programs reviewed as part of the housing audit. Details regarding the program evaluation are provided in the appendix 5 of this report. Kids (a Home Program. This prograin provides rent subsidy to residents who are not eligible for section 8 but require subsidy due a specific household situation. The goal is to keep home stability and reduce frequent family moves. • The program supports self sufficiency, and assistance per household is low compared to the renovation programs. • The program specifically serves households with children to reduce school turnover (served 25 families and 55 children in 2008). • The City invests an estimated 5200,000 annually to the program. Single-Family Reinnvesinrent Approach. Several programs target single-family renovation. The City invests an estimated $300,000 to single-family renovation annually. • CDBG home renovation. Tar_ets health and safety renovation and serves lower incomes. The City's household base is a <-ood market for the use of the program. but funds have not been fully utilized in the last few years. • Energy Advantage. Targets ener-y-related improvements to help increase home sustainability and reduce maintenance costs. The program has limited success. • Transformation Loan Program. Increases home value and regenerates older neighborhoods. The program helps retain families who desire modern home amenities. There is a 10 to 1.6 ratio of return on public investment compared to private renovation investment. The average home value increase for taxes (06-08) was approximately 526,000 or l 14. New Single-Fanrilr Opportunities. The City offers varied options for infill housing that provide new single-family choices. The City invests an avera,,e $400.000 annually to single-t<3mily intill development. • Richfield Rediscovered. Provides up to 570,000 in grants to demolish and build ne\% homes on scattered sites in the City. Helps regenerate neighborhoods and remove housing bli0ht. For 2008, there dill be an estimated 22% increase in value on the parcels redeveloped as a result of the program. • Senior Housing Regeneration. The City provides an estimated S15,000 in gap funds for the purchase of existin- homes from seniors. The homes are renovated and resold to first time homebuyers in the City at an affordable price. The program promotes new affordable ownersllip by young families and reduces deferred home maintenance. T\vo 2 homes have been purchased. • New Home Program. The City provides gap funds to non-profit developers for the purchase, renovation and,-or rebuilding of new single families homes on scattered sites. Many of the homes support loner terns affordability through the West Hennepin Affordable Housing Land Trust and Habitat for Humanity. Thirty - three homes have been completed under this program. Housing Services. The City financially supports and promotes the use of three separate housing service providers. The service providers administer low-interest home loans and provide varied levels of remodeling advice. They serve as an extension of City staff. • Center for Energy & Environment (CEE). Administers the City's Energy Advantage loans and state renovation loans. CEE provides remodeling advisors but the City does not access this service. Fees for processing these loans are covered by administrative fees charged to the resident. In 2008. a total of four Energy Advantage Loans (supported by a grant from the [IRA) and 14 state loans were processed through CEE. • Housing Resource Center (1IRC). Administers state renovation loans and provides construction and loan consultation. The service is free to residents with an annual HRA investment of S7,000. In 2008. 118 services. including 39 home construction consultations were provided to 79 residents. In addition, two state loans were processed throu1111 tile FIRC. • Remodeling Advisor. The remodelin- advisor makes home visits and provides advice regarding home renovation. Tile service is free of charge to residents. with an annual HRA investment of $6,000. In 2008, the contracted advisor made 31 home visits, answered 48 calls regarding home renovation and sent 18 informational packets on City programs. The remodeling advisor does not process or administer loans. Cit?' Official Controls & Land Lse.Strategies. In addition to specific housing" programs. the City uses several methods through its land use and official controls to support and promote redevelopment and reinvestment of the City's housin_ stock and reuse of land. • Planned Unit Development (PUD). The City uses tile PUD process for mixed use and redevelopment projects to allow more tlexibility in the use ofthe land when redeveloped. • Tax Increment Financing (TIF) 'File City uses TIF for redevelopment and has a policy that dedicates up to 20% of the project proceeds to a housing fund when there is no atlilydable housing- provided in the project. • Housing & Redevelopment Authority (HRA) Levy. The City makes an annual Cor11r11itI11elll to housing by adopting the maximum [IRA levy. The levy supports housing reinvestment. redevelopment and affordability. • Point-of-Sale and Rental Licensing. The City supports the use of both point-of-sale and rental licensing inspection programs to help ensure minimum housing maintenance standards. Cotnmunity Change Key Points: The Citv of Richfield has a diverse and balanced base of households with a sizable number of householders in each age category. The City enjoys a high homeownership rate for households under age 35, which can provide some stability to local schools, commercial businesses, and services. During period 2004 to 2007, there was a net gain in younger households in both new and existing housing units. However, fewer than 3% of households (ages 45 to 74) in owner occupied housing moved during this 3 year period. This is the large base of mid-to-older homeowners that are "aging in place". With a sizable number of middle-aged households nearing retirement age in the city. there is concern that the lack of more-up housing and more varied senior housing options may accentuate a recent drop in turnover among households a,-,e 45 to 74. Low turnover reduces the availability of housing needed by younger replacement households. This agina of existing households more than offsets increases in younger residents entering the city through turnover. Half of all households moving into the city were under the age of 34 and 33% were between the ages of 35-54. A total of 25% of resident movers ended up finding another home in the city. But just 1 51,o of those moving from single family detached homes chose another single family detached ]ionic in Richfield. This could be the result of a lack of move- up housing and/or attractive options for down-sizingy in the City. The positive news is that a significant number (25°/o) of households leaving rental housing ended up in single family detached housing. The City should market its existing ownership housing stock to those living in rental housing as an ownership alternative within the community. There is strong demand for both owner and rental housing across all age groups in the City. However, with an aging housing stock housin, choice is limited. Almost 90% of single family dwellings are more than 40 years old and only 3.8% of these older homes turned over in the 3 years (2004- 07). A large majority of that turnover was those under the age of 35. With older single family homes attractive to young and first time buyers, the city should continue to provide opportunities for young buyers to purchase homes as they become available as well as provide additional choices for older residents for downsizing type housing. The majority of the city housing stock is middle income housing with only 5% of the homes valued under S 180,000 in 2007 and 2.4% valued above $300.000. A third of the City's single familv detached housin- units are valued at or less the 2007 Metropolitan Council's affordability limit S20T800. Access and usage of affordable housin; appears to be equally distributed across all age groups. According to the American Community Survey data (2005-07) Richfield's non-white population at 32% is above the majority of developed communities at 15-20%. In addition. 22% of Richfield's population speaks a different language. The recent economv and increase in foreclosures may result in households remaining in their homes longer and increasing the need for rental housing. 700 600 s-V goo X0 :00 100 .100 Nwutwbr Pri I xamsus The following are key statistics from the demographic change report provided for Richfield. The full change report is provided in appendix 6 of this report. a 62% of the City's households are under age 55-and that includes a strong base (22.1%) of younger householders under the age of 35. a Single-family detached usage by households under the ak,e of 35 is very high at 47.6%. a 68% of all new households that have moved into the City between 2004 and 2007 are renters. a There were 1.186 homeowners age 75 or older living in homes built before 1960. a 34.4% of all owner-occupied single-family detached homes are affordable based on the 2007 Metropolitan Council's threshold value of S207.800. 440o of homeowners under age 35 succeeded in finding homes in the "affordable" ranee. a 44% of all households in larger apartment developments are under the age of 35. while householders age 55 and older occupy 25%. a Durin` 2004--2007, 47.1 % of all new households were under the age of 35. a During 2004-07. 25% of residents that moved ended up in another home within the Citv. Retention was higher for households looking for apartments (45%) than for those seekin- sinole-family housing (20%). These findings coupled with the increasing diversity of residents provide opportunities to regenerate Richfield neighborhoods. Due to the age of the homes and households that are aging-in-place it will be important to focus on tools and strategies that help to maintain home value and choice in the city. Richfield Householder Ages Distribution of Households by Householder Age (2007) (oata set covers 14,796 Richfield households in 20071) Source: Excensus LLC Site Evaluation Summary (v `7 Opportunity Site Evaluation. ULI MN/RCM have prepared community site principles that support a full range of housing choices and utilize best practices to maximize efficient land use, connect housing to jobs and provide access to transportation networks. As part of the Opportunity City Program, a team of ULI professionals reviewed four sites in Richfield that have a future land use designation for medium -to high-density housing. The sites for evaluation were selected by Richfield city staff. The following is a summary of the team's recommendations for the sites considering the 1 1 conununity site principles. (See appendix 7 for details on the site evaluation and community site principles.) 72 AD & Penn Ave. This Site would be a good location for higher-density 110USing SUch as apartments with modern amenities targeting single and young professionals. By providing higher-density residential, the open space on the site could be maximized and serve as an amenity for the residents. There is good access to parks. transportation (bus line), schools and employment. With this location being close to Best Buy. new apartments would provide a rental housing option not currently available in the city. Lyndale Garden Center The site is an excellent opportunity for the city to create a mix of nlediunl- to high-density housing types incorporating public activity spaces. With a good mix of housing types and uses. the area could be a focal point for the city-a Richfield "Centennial Lakes." A suggestion is to open up the site and provide public gathering spaces at the lake, incorporate housing at various income levels and attracting commercial uses that are a destination. Based upon the sites future potential, it should be a high priority for the city. 66`r' & Portlund The site is not the most attractive site of the four reviewed for nlediunl-density housing. The area lacks walkability. is not desirable due to adjacent auto use and has site challenges due to its narrow depth. An option could be for affordable senior apartments or accessible housing for tenants with limited mobility. The site would have more housing and/or mixed use opportunity if the corner parcel were part of the redevelopment. Washburn Avenue (66' - NI'A') The area seems to be a stable, well-maintained neighborhood. Evaluating, better access to the retail area may be beneficial to the nei0, hborhood to support walkability. Due to the city's limited financial and staff resources and the complexity of site redevelopment. it was not recommended as an opportunity site unless redevelopment of SOUthdale and the other retail areas were to occur. Recommendations t?-8 Recommendations to Increase the City's Capacity to Provide a Full Range of Housing Choices: Several key themes emerged through the Opportunity City Process in Richfield. Overall, the City has made a lone term investment in its housing and should continue to target its efforts toward preservation and reinvestment in the older housing stock. The City offers several programs that address single-family housing with great success. Additional investment in the future should also be focused on the older apartment complexes. it is essential to ensure that existing programs and any new efforts are properly funded-particularly when there is limited funding and staff capacity. The follo?\ ing is a summary of recommendations resulting from the housing audit, program review, community change information and review of City goals, policies and community factors. (See appendix 5 for details on the program evaluation and specific program recommendations). Communication and Education. Create an HRA communication and marketing plan for its programs to help achieve city goals. Due to the increasing diverse resident base. the City will need to expand its communication and education efforts regarding City housing programs. ownership and rental opportunities and expectation for home maintenance. The following is a summary of ideas to include in the communication and marketing plan. • Partner with the School District and the School Family Multicultural Resource Center. • Support an educational approach to code enforcement, eg. Shoreview'. SHIRE. • Provide a single staff contactlcomnLill ity liaison (consider bilingual) to reduce the communication barriers as a result of the increased diversity of residents. • Provide educational sessions/fact sheets in multiple languages on alternate home ownership options such as Land Trust, Habitat for Humanity and the Senior Housing Regeneration program. • Include health and cost benetits of incorporating energy efficiency improvements in all marketing materials. • Increase internal department coordination for a more holistic approach in addressing neighborhood issues, eg. Brook(r•n Pw-k's Neighborhood Action Commninee. • Expand connections of the current and future housing opportunities to local jobs by working with employers to determine housing needs and evaluating links between employment wages and housing values. • Increase partnerships with non-profit and for-profit resources to expand the City's capacity to address housing issues. Program Improvements. Richfield has built a strong base of diverse housing programs and is able to provide entry-level housing to young Families and for older adults as they age in place. Specifically. the Richfield Rediscovered. Transformation Homes and New Home Programs have made a positive impact in reinventing existing singe family neighborhoods and attracting and retaining young households many first La *Aa.A ring suburbs desire. These programs should continue to be part of the tools and strategies offered to provide a full range of housing choices. To enhance the existing tools in the tool box, implementation of the following recommendations will help to provide options for move-up housing as families grow, redevelop and renovate the existing housing stock and use the City's financial investment as effectively as possible. • Evaluate one-stop shop approach for financial and remodeling adviser services to reduce homeowner confusion and increase efficiency. Currently, there are three services providers the HRA is financially supporting and residents are using. • Evaluate additional methods to increase the use of the City's CDBG funded proggrants. Hennepin County began administering CDBG funds for the City in 2005. Based upon the evaluation, there was a much higher resident use of the CDBG program when the City internally administered the program funds prior to 2005. Ifthe City takes responsibility for administering the program. there could be opportunities to subcontract with housing service providers to administer the loans. This option may help to increase the use of the funds and provide the City with additional oversight on the marketing to meet the City's needs. Examples of the home service providers that could administer the funds on behalf of the City include the Greater Metropolitan Housing Corporation and the Center for Energy and Environment. These are organizations that the City currentl\ has relationships w ith. However. as noted above, using one organization would help to provide a one-stop-shop approach to housing services for the City. Recommendations ,?r- C/ • Continue to fund the KidsCaMorne Program and explore options to increase funding throu"h non-profit and foundations sectors. • Continue to fund neighborhood reinvestment in older homes through Transformation Homes and Richfield Rediscovered programs. Increase the maxinlU n Transformation Loan amount to $25.000. This provides an adjustment for inflation since the program was created in 1993 at $15,000. Consider the benefits of incorporating sustainability into existing pro(( rams-expand program requirement to include incentives for energy efficiency and rene\?able products. The incentive could include up to $5,000 in additional funds based upon the cost of adding energy efficient and renewable products, eg. Woodbany Goes Green Locnn. • Market home purchase and renovation programs through local employers. Encourage employers to include the City purchase and renovation programs within new employee and recruiting materials. • Evaluate options for providing homeowner architectural assistance to help increase modern renovations that are more attractive to the younger and move-up housing generations, eg. SI. Louis Park's parrnership with AIA. • Expand options for single-family capacity and increased marketability by encouraging the addition of egress windows, allow in,, ease for front yard expansions and expediting the permit process for single-family home renovation. • Expand use and funding for the H.O.M.E. program (Household and Outside Maintenance for Elderly) to help those who are aging in place with maintenance and other household needs. • Establish a small emergency f? ($500 per case) to resolve minor code violations rather than having homeowners go through a time consuming citation and abatement process. • Expand opportunities for seniors interested in selling- their single family home. 1. Expand the Senior 1-lousing Regeneration Program by increasing funding from $15,000 to $25,000 in gap funds per home. 2. Establish a deferred loan program for family members purchasing a senior home to rectify code deficiencies noted in the point of sale inspection or to the seniors who wishes to put their home on the market but need to address code deficiencies first to make the home more marketable. Apartment Reinvestnutnt & Redevelopment. Apartments in Richfield are its most affordable housing-as well as some of the oldest and unmarketable housing. This housinC type serves a great need for a broad range of residents, particularly younger households. Expanding the City's capacity to improve the apartment stock will he important to the future success of City efforts. Initiating redevelopment in a sensitive, cost-efficient manner that increases value and sustainability should be a key goal. The recommendations to lot, increase apartment renovation and redevelopment include the following. • Dedicate financial assistance (grant, deferred or loxv-interest loans to an apartment renovation program. Evaluate ways to increase the city's financial capacity to improve older apartments. Proactively seek out partnerships with non-profit/for-profit organizations that specialize in older apartment preservation/renovation and redevelopment. Seek Minnesota Housing funding specifically to renovate lower income apartments with the goal to retain existing- households. A" nip • Determine if there are ways to effectively ensure that older apart ments become more marketable/sustainable by combining- units to increase bedroom counts, addin- modern amenities and energy efficiencies, linking residents to social services and ensuring proper connections to transportation, parks. Lxk- M" recreation and essential sen ices. • Adopt a rental relocation policy that would address the concern over displacement of apartment residents when they are considered for redevelopment and provides low-income households with similar cost housing alternatives w ithin the City, eg. Brooklyn Park's Relocation Polic.v. Land Use Controls and Other Hoasiti Maintenance & Renovations Strategies. City leaders have a variety of public tools and strategies they use to determine their participation in land use decisions, maintenance standards and the facilitation of redevelopment and renovation. Continuing to be part of the solution and helping to change the way land is used and buildings are maintained takes strong local leadership and vision. Many decisions that policy leaders make are controversial. Understanding the long--term effect of those decisions will help prepare the City for I'uture Orowth and re- Recommendations ?-/n growth. Richfield has made great progress in redevelopment of their community by understanding the issues and educating their residents. Additional recommendations relating to specific public policy decisions are: • Continue to fund and implement the Point of Sale and Rental Licensin,,}progranls that help provide consistent maintenance standards for existing housing stock. Even in a time of economic uncertainty, providing methods to ensure that existing homes are propem maintained is essential. • Evaluate alternate ways to zone land that would better manage and promote redevelopment. Form-Based or Performance-Based zoning is an option that supports more walkable, nlixed-use development. Form- and performance-based zoning provide a frame\Nork for how future uses fit into the surrounding area through the placement and design of buildings on the site, rather than tying the land to a specific future use. Such efforts include revising local building codes to allow green building standards. allowing smaller street designs and requiring energy-efficient products for all publically funded programs. Local efforts can help reduce the regional carbon footprint, increase long-term affordability (through lower utility and maintenance costs) and support healthy living. • Evaluate options to add new small-lot single4multi-family move-up housing and higher-density apartments with modern amenities to add a housing type that would retain growing families and attract local workers. • Reduce or waive Cite fees to allow more affordability for lower-income housing projects. • Proactively acquire and land-bank substandard and/or vacant housj for later infill housing opportunities - specifically targeting foreclosed properties that are candidates for demolition. • Consider using Housing Improvement Area local government authority to address older common interest communities and promote an affordable renovation option. 10 Next Steps /0-11 Next Steps: The Opportunity City Program is only the first step in supporting a full ranee of housing choices in the community. Key policy leaders need to support next steps that make valuable changes to the way that the tools and strategies are delivered throughout the City. Many of the recommendations have budget implications and affect staff resources. Prioritization of the recommendations is essential. Sug-estions for next steps associated with implementation of the recommendations include: • Gain acceptance of the ULI MN/RCM Opportunity City report by the HRA and City Council. • Prepare a work program that outlines the steps and time needed to effectively implement the recommendations. Determine ho\? the recommendations affect land use codes, program service providers and staff work load. Include performance targets to track the progress of program changes and additions. Setting performance targets and tracking the progress of local tools and strategies against benchmarks will provide a level of understanding to public officials and residents that become critical during the annual budgeting process. (Detail regarding performance measures as it related to housing tools and strategies are attached.) • Evaluate budget and staff resource implications tied to each recommendation. • Prioritize recommendations that will have the largest impact in supporting housing goals for a full ran<ge of housing choices. • Evaluate need to amend the City's comprehensive plan based upon implementation of recommendations. • Discuss the broader meaning of the demo<graphic data as it compares to current market conditions and evaluate how the data relates to the region. Incorporate future data updates and online neighborhood level data tool. 11 Program Sponsors & Participants MN/RCM Housing Initiative Opportunity City Pilot Program. • Richfield HRA Commissioners - Suzanne Sandahl. David Gepner. Joan Helmbu-cr. Doris Rubenstein. Steven Quam • Citn ofRichfneld Slaff-- Karen Barton. John Stark. Kirsten Partenheimer • Site Evaluation Team: Colleen Car%. The Cornerstone Group o Mark Koegler. I loisington Koegler Group o Gretchen Nicholls. L.ISC o Bob Sueetar. Cit\ of'Oakdale • UL/ Minnesota Gnnsaltinl; Team Carcn Dex%ar. LAA Minnesota Executive Director e Cathy Bennett. Bennett Community Consulting o Dennis Welsch. CPPP C John Carpentar. ExcenSUS A special thanks to the Opportunity City Pilot Program Sponsors. Without their financial the program would not be possible • Family Housing Fund • Metropolitan Council • Richfield Housing & Redevelopment Authority 12