09-1052rHRA RESOLUTION NO. 1052
RESOLUTION AUTHORIZING HRA EXECUTIVE DIRECTORAND BOARD CHAIR TO
ACQUIRE CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO EXECUTE
ALL INSTRUMENTS AND CONTRACTS RELATED THERETO
WHEREAS, pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the
"HRA Act") the City Council of the City of Richfield, Minnesota (the "City") has created the
City of Richfield Housing and Redevelopment Authority (the "HRA") and provided it with
the powers and duties of the HRA Act; and
WHEREAS, the HRA Act authorizes the HRA to acquire, improve, own, hold, sell,
lease, exchange, transfer, assign, pledge or dispose of any real or personal property; and
WHEREAS, the HRA has received funding under the Neighborhood Stabilization
Program ("NSP") to acquire and rehabilitate vacant, foreclosed single family homes; and
WHEREAS, in order to expand the effectiveness of the Program the HRA wishes
to directly purchase certain foreclosed properties to rehabilitate or resell to private entities
for development; and
WHEREAS, it is the desire of the HRA Board of Commissioners to establish
certain parameters for such acquisitions and to authorize its Executive Director and Board
Chair to proceed therewith without specific Board. approval of each transaction.
NOW, THEREFORE, BE IT RESOLVED by the City of Richfield Housing and
Redevelopment Authority:
That the Executive Director and the Board Chair, with the assistance of HRA legal
counsel, is hereby authorized to enter into purchase agreements and acquire in the
name of the Authority up to four (4) single family, vacant, foreclosed homes (the
"Properties") on the conditions that:
(a) The Properties are each acquired with NSP funding;
(c) Each Property is a foreclosed property acquired from a lender or a lender's
designee;
(d) The Properties have been vacant for at least 90 days prior to entering ipto a
purchase agreement;
(e) The Property is determined to be blighted as defined by the Minnesota
Housing Finance Agency in its application to the US Department of Housing
and Urban Development for NSP funding as follows:
A blighted structure is one which, by reason of dilapidation,
obsolescence, overcrowding, faulty arrangement or design, lack of
ventilation, light, and sanitary facilities, excessive land coverage,
deleterious- land use, or obsolete layout, or any combination of these
or other factors, is detrimental to the safety, health, morals, or welfare
of the community.
(f) Prior to each acquisition an independent, third party appraisal is performed
and the purchase price does not exceed the appraised value;
(g) The total purchase and rehabilitation costs do not exceed $750,000; and
(h) Prior to the acquisition of each property staff conducts appropriate due
diligence to protect the HRA's interest.
2. That the Executive Director and Board Chair are authorized to execute such
documents as shall be required in order to carry out the delegation provided in
paragraph 1 hereof.
3. That the Executive Director and Board Chair shall recover maximum administrative
and legal costs associated with the acquisition of the Properties from the NSP
funding source.
4. That the Executive Director shall report the acquisition of any Property pursuant to
this Resolution at the next regular HRA meeting.
5. That disposition of acquired Properties shall be only by action of this Board.
6. That the authority granted hereby shall expire on September 30, 2010.
Adopted by the Richfield Housing and Redevelopment Authority of the City of
Richfield, Minnesota this 17th day of August, 2009.
ATTEST:
n Helmberger, Secretary
AMnA.~ Q~~I.C
Suz M. Sandahl, Chair