04-20-2020 HRA Complete AgendaR E G U LAR H O U S IN G AN D R E D E V E LO P ME N T AU TH O R ITY ME E TIN G
V IR T U AL ME E TIN G H E L D V IA W E B E X
APR IL 20, 2020
7:00 P M
C all to Order
A ttendance
Open F orum
Approval of the Minutes
A pproval of the minutes of the regular Housing and Redevelopment A uthority meeting of March 16, 2020.
P R E S E N TATIO N S
AG E N D A APPR O VAL
1.A pproval of the A genda
2.Consent Calendar contains several separate items which are acted upon by the H R A in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further H R A action on these items is necessary. However, any H R A
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for H R A discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A .C onsideration of a resolution authorizing execution of a D eveloper A greement with the West Hennepin
A ffordable L and Housing Trust, dba Homes W ithin Reach, for the acquisition, rehabilitation and sale of
houses under the New Home P rogram.
S taff Report No. 13
B .C onsideration of a resolution authorizing the Housing and Redevelopment A uthority E xecutive D irector to
grant a 120-day extension to deadlines in existing contracts.
S taff Report No. 14
3.C onsideration of items, if any, removed from C onsent C alendar
O T H E R B U S IN E S S
4.C onsideration of a P rofessional S ervices A greement with Volunteers E nlisted to A ssist P eople to provide
emergency rent assistance to low-income Richfield households impacted by the C O V ID -19 crisis.
S taff Report No. 15
H R A D IS C U S S IO N ITE MS
5.HRA D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
6.E xecutive D irector's Report
C LAIMS
7.C laims
8.A djournment
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.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
March 16, 2020
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:00 p.m. in the Council Chambers.
HRA Members Mary Supple, Chair; Maria Regan Gonzalez; Sue Sandahl; and
Present: Pat Elliott.
HRA Members Erin Vrieze Daniels
Absent:
Staff Present: John Stark, Executive Director/Community Development Director and Julie
Urban, Housing Manager.
OPEN FORUM
No speakers
APPROVAL OF THE MINUTES
M/Regan Gonzalez, S/Elliott to approve the minutes of the regular Housing and
Redevelopment Authority meeting of February 18, 2020.
Motion carried 4-0
Item #1
APPROVAL OF THE AGENDA
M/Sandahl, S/Regan Gonzalez to approve the agenda.
Motion carried 4-0
Item #2
APPROVAL OF THE CONSENT CALENDAR
Executive Director Stark presented the consent calendar.
HRA Meeting Minutes -2- March 16, 2020
A. Consideration of the adoption of a resolution approving a subordination agreement
related to the Cedar Point II apartments. (S.R. No. 11).
RESOLUTION NO. 1355
RESOLUTION APPROVING SUBORDINATION OF CERTAIN RIGHTS RELATING TO
CONTRACT FOR PRIVATE DEVELOPMENT WITH CPII DEVELOPMENT LLC
M/Sahdahl, S/Regan Gonzalez to approve the consent calendar.
Motion Carried 4-0
Item #3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
None
Item #4
CONSIDERATION OF A RESOLUTION GRANTING THE EXECUTIVE DIRECTOR
AUTHORITY TO EXTEND HOUSING AND REDEVELOPMET AUTHORITY
CONTRACTS AND AGREEMENTS IN THE EVENT OF AN EMERGENCY. (S.R.
NO. 12)
Executive Director Stark presented Staff Report No.12. Executive Director also gave the
HRA an update on staffing related to the Covid-19 situation.
RESOLUTION NO. 1356
RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR OF THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD TO EXTEND
CONTRACTS AND AGREEMENTS
M/Sandahl, S/Regan Gonzalez to approve a resolution granting the Executive Director
authority to extend Housing and Redevelopment Authority contracts and agreements in the event
of an emergency.
Executive Director Stark mentioned the original resolution was inaccurate and that he
distributed a corrected version to commissioners at the meeting.
Commissioner Regan Gonzalez thanked staff for all the extra work being done surrounding
the Covid-19 situation and spoke of the community work being done.
Motion Carried 4-0
HRA Meeting Minutes -3- March 16, 2020
Item #5
HRA DISCUSSION ITEMS
None
Item #6
EXECUTIVE DIRECTOR REPORT
None
Item #9
CLAIMS
M/Sandahl, S/Regan Gonzalez that the following claims be approved:
U.S. BANK 3/16/2020
Section 8 Checks 131516-131595 $165,375.44
HRA Checks 33811-33825 $26,186.28
Total $191,561.72
Motion carried 4-0
Item #10
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:09 p.m.
Date Approved: April 20, 2020
Mary B. Supple
HRA Chair
LaTonia DuBois John Stark
Administrative Assistant Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.A.
S TAFF REPORT NO. 13
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
4/20/2020
RE P O RT P RE PA RE D B Y: K ate A itchison/C eleste McD ermott, Housing S pecialists
O THE R D E PA RTM E NT RE V IE W:
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
4/15/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of a resolution authorizing execution of a Developer Agreement with the West Hennepin
Affordable Land Housing Trust, dba Homes Within Reach, for the acquisition, rehabilitation and sale of
houses under the New Home Program.
E X E C UT IV E S UM M ARY:
T he Housing and Redevelopment Authority (HRA) works with the West Hennepin Affordable
Land Housing Trust (WHAL H T ), dba Homes Within Reach, to purchase and rehabilitate homes to
be sold to income-qualifying households. WHAL H T is a Community Land Trust that allows
homeowners to purchase the home itself while maintaining ownership of the land beneath it and
leasing it for a nominal fee, which greatly reduces the burden of down-payment and mortgage
payments. T he ground leases are in place for 99 years, which ensure long term affordability of
the home.
WH AH LT is seeking to continue providing affordable housing in Richfield through the land trust
model. T he proposed Developer Agreement (Agreement) between the H R A and WHAHLT details
the terms of this continued partnership for 2020. Under the terms of the Agreement, the H R A would
provide up to $80,000 to WHAHLT to assist with the purchase of the home. WH AH LT then
rehabilitates the home, when necessary, and resells it to a household earning no more than 80% of
the Area Median Income (AMI).
The Community Development Block Grant (C D B G) funds originally budgeted for this program have been
reallocated to the First Time Homebuyer Program, so staff is recommending that this activity be funded with
Housing and Redevelopment Fund money. The Housing and Redevelopment Fund can be used to fund the
acquisition and rehabilitation of affordable housing. The HRA will be asked to revise the 2020 budget to reflect
this change.
RE C O M M E ND E D AC T I O N:
By motion: Approve a resolution authorizing execution of a Developer Agreement with the W est
Hennepin Affordable Land Housing Trust, dba Homes W ithin Reach, for the acquisition, rehabilitation
and sale of houses utilizing Housing and Redevelopment funds, subject to final approval by legal
counsel.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
Under the New Home Program, the HRA has worked with several developers over the years to
either build new homes or purchase and rehabilitate existing homes and make them available to
households earning no more than 80 percent of the A MI . W HA HLT has successfully purchased,
rehabilitated and sold 13 homes in Richfield. Since 2002, W HA HLT has helped 183 families
across the Hennepin County area.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The objectives of the New Home Program are to:
Eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods;
Maintain and improve the existing housing stock while maintaining housing affordability;
Develop quality housing with long-term affordability, to the greatest extent possible;
Coordinate with developers to provide affordable housing for families.
Purchasing and rehabilitating homes to provide affordable housing carries out the policies of the
City’s Comprehensive Plan, including:
Support the rehabilitation and upgrading of the existing housing stock;
Promote the development, management and maintenance of affordable housing in the City
through assistance programs, alternative funding sources, and the creation of partnerships
whose mission is to promote low to moderate income housing.
C.C R IT IC AL T IMIN G IS S U E S:
W HA HLT has been working to identify properties for purchase and rehabilitation in Richfield.
Approval of the Agreement would allow the HRA and W HA HLT to complete the purchase and
rehabilitation of any properties identified.
The Housing and Redevelopment Fund budget will be revised during the budget process to include
the acquisition and rehabilitation of affordable housing.
D.F IN AN C IAL IMPAC T:
T he City Council originally budgeted $80,000 in Community Development Block Grant
(CDB G) funds in Federal Fiscal Year 2019 for the WHAHLT partnership; however, in
February, 2020, the Council approved a reallocation of those funds to the HRA's First
Time Homebuyer Program, which had run out of funds.
In order to continue funding this affordable homeownership program, staff recommends
that the H R A utilize Housing and Redevelopment funds. T he H R A will be asked to
approve this change in the 2020 revised budget.
HRA funds assist with the acquisition of the property.
Maximum reimbursement under this Agreement is $80,000 for one or more homes.
The Agreement provides for HRA staff to approve the acquisition of the specific property and to
review income documentation prior to the final sale.
E.L E GAL C ON S ID E R AT ION:
The Agreement was prepared by HRA legal counsel.
Housing and Redevelopment funds can be used for affordable housing.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve the Agreement.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
A greement C ontract/A greement
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING DEVELOPER AGREEMENT WITH WEST HENNEPIN
AFFORDABLE HOUSING LAND TRUST DBA HOMES WITHIN REACH
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
(the “Authority”) intends to provide $80,000 in pooled tax increment (the “Tax Increment”) to the West
Hennepin Affordable Housing Land Trust dba Homes Within Reach, a Minnesota nonprofit corporation
(“WHAHLT”), for the purposes of acquiring and rehabilitating homes in the City of Richfield, Minnesota;
and
WHEREAS, the Authority has proposed that WHAHLT use the Tax Increment to purchase,
rehabilitate, and resell one or more properties to households earning at or below 80% of the area median
income; and
WHEREAS, there has been presented before the Board of Commissioners of the Authority a
Developer Agreement (the “Developer Agreement”) to be executed by the Authority and WHAHLT, which
sets for the terms of the Tax Increment to be provided to WHAHLT and the agreement by WHAHLT to
purchase, rehabilitate, and resell the properties; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. The Developer Agreement is hereby in all respects authorized, approved, and confirmed,
and the Chair and the Executive Director are hereby authorized and directed to execute the Developer
Agreement for and on behalf of the Authority in substantially the form now on file with the Executive
Director but with such modifications as shall be deemed necessary, desirable, or appropriate, the execution
thereof to constitute conclusive evidence of their approval of any and all modifications therein.
2. The Chair and the Executive Director are hereby authorized to execute and deliver any and
all documents deemed necessary to carry out the intentions of this resolution and the Developer Agreement.
3. This resolution shall be in full force and effect as of the date hereof.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
this 20th day of April, 2020.
Mary B. Supple, Chair
Maria Regan Gonzalez, Secretary
1
DEVELOPER AGREEMENT
(West Hennepin Affordable Housing Land Trust dba Homes Within Reach)
THIS DEVELOPER AGREEMENT (the “Agreement”), made and entered into as of
this of April, 2020 (“Effective Date”), by and between the Housing and Redevelopment
Authority in and for the City of Richfield (“Authority” or “HRA”), 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 West Hennepin Affordable Housing Land Trust dba
Homes Within Reach, a nonprofit corporation under the laws of Minnesota, having its principal
office at 5101 Thimsen Ave, Suite 202, Minnetonka, MN 55345. (“Developer” or “WHAHLT”).
RECITALS
A. The HRA intends to provide WHAHLT with $80,000 in pooled tax increment (“Tax
Increment”) for the purposes of acquiring and rehabilitating homes in the City of Richfield
(the “City”) to be resold to people earning at or below 80% of the area median income.
B. The HRA desires WHAHLT to purchase, rehabilitate, and resell one or more properties
eligible to be purchased, rehabilitated and resold with Tax Increment (the “Eligible
Properties”) and WHAHLT has agreed to do so pursuant to the terms and conditions of this
Agreement.
C. The City and the HRA have previously established a New Home Program pursuant to the
authority granted in Minnesota Statutes, Sections 469.001 through 469.047.
D. WHAHLT will utilize the Community Land Trust model to purchase, rehabilitate, and
resell the property to an income-qualified buyer, and will retain ownership of the land to
ensure long-term affordability.
E. The grant of the Tax Increment to WHAHLT is for the purpose of providing affordable
housing within the City and to assist in carrying out the objectives of the New Home
Program, which are in the best interests of the City, and the health, safety and welfare of its
residents and in accord with the public purposes and provisions of the applicable state and
local laws and requirements.
F. In performing its obligations under this Agreement, WHAHLT must adhere to the
restrictions for the use of Tax Increment set forth in this Agreement.
AGREEMENT
1. Scope of Work.
A. Developer. The HRA hereby designates WHAHLT as a Developer to purchase,
rehabilitate, and resell Eligible Properties in accordance with the terms and conditions of this
Agreement.
2
B. Criteria. WHAHLT will identify Eligible Properties that they would like to acquire
under this Agreement. The HRA will provide written consent for the location of the home to be
acquired by WHAHLT. Prior to the acquisition of an Eligible Property, WHAHLT shall provide
the HRA with a Developer Pro Forma in the form set forth in EXHIBIT A.
C. Compliance with Required Programs. To the extent required by federal, state, and
local law and regulation, WHAHLT agrees to comply with the program requirements of:
1) Hennepin County Affirmative Action Policy and Commissioners’
Policies Against Discrimination;
2) Equal opportunity and discrimination provisions of all applicable
State and Federal laws, rules, and regulations;
3) Section 504 of the Rehabilitation Act of 1973, as amended;
4) Lead based paint notification, inspection, testing and abatement
procedures established in 24 CFR Part 35 as referenced in 24 CFR
570.608, including but not limited to the Lead Disclosure Rule and
HUD’s Lead Safe Housing Rule as set forth in Section 3.06 of the
Procedural Manual; and
5) Fair housing requirements of section 104(b) and section 109 of Title
I of the Housing and Community Development Act of 1974, as
amended, including Title VI of the Civil Rights Act of 1964, the
Fair Housing Act, and other applicable fair housing laws.
WHAHLT further agrees to provide HRA with a timely certification that the requirements listed in
this Section have been met.
D. Resale of Property. After WHAHLT completes the rehabilitation of an Eligible
Property, WHAHLT will market said Eligible Property and execute a purchase agreement with an
end buyer earning at or below 80% of the area median income.
F. Reports. WHAHLT shall provide HRA with a report of its activities on an
as-needed basis, including but not limited to reports related to the income of the end buyer of the
Eligible Property.
2. Term. This Agreement is effective as of the Effective Date and until December 31, 2020.
3. Acquisition, Relocation and Displacement. WHAHLT shall be responsible for carrying
out all acquisitions of real property necessary for implementation of this Agreement. WHAHLT
shall conduct all such acquisitions in its name and shall hold title to all real property purchased and
shall be responsible for preparation of all notices, appraisals, and documentation required in
conducting acquisition under the regulations of the Uniform Relocation Assistance and Real
Property Acquisition Act of 1970, as required under 49 CFR Part 24. WHAHLT shall also be
responsible for providing all relocation notices, counseling, and services required by said
3
regulations. In addition, WHAHLT shall comply with the acquisition and relocation requirements
of the Minn. Stat. Sections 117.50 through 117.56 (the “Minnesota Relocation Act”).
4. Labor Standards, Employment and Contracting. WHAHLT shall notify the HRA prior to
initiating any rehabilitation activities, including advertising for contractual services, which will
include costs likely to be subject to the provisions of Federal Labor Standards and Equal
Employment Opportunity and related implementing regulations.
5. Documentation. WHAHLT must maintain the following records and reports relating to
Eligible Properties acquired pursuant to this Agreement: income documentation for buyer of
property financed with Tax Increment, appraisals, environmental reports, purchase agreements,
settlement statements, and deed document number/filing information per property. WHAHLT
shall submit copies of the foregoing documentation to HRA with respect to any Eligible Property
acquired pursuant to this Agreement prior to closing with the buyer. The HRA will issue a clear to
close once documentation has been submitted.
6. Proof of Eligible Tax Increment Costs. WHAHLT will provide a detailed accounting to
the HRA for expenditures paid with Tax Increment, which may include the purchase of property,
and the purchase of a home.
6. Suspension and Termination. If WHAHLT materially fails to comply with any term of this
Agreement after written notice and an opportunity to cure, this Agreement may be terminated. The
time period for said opportunity to cure will be dependent upon the relevant time period
requirements of the applicable law, regulation, program, or otherwise.
7. Notice. 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:
To HRA: Richfield Housing and Redevelopment Authority
Attention: John Stark, AICP, Executive Director
6700 Portland Avenue
Richfield, Minnesota 55423-2599
Fax: (612) 861-8974
To WHAHLT: West Hennepin Affordable Housing Land Trust
Attention: Janet Lindbo, Executive Director
5101 Thimsen Avenue
Suite 202
Minnetonka, MN 55345-4117
4
8. Data Practices. WHAHLT 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.
9. Access to Records. HRA shall have the authority to review any and all procedures and all
materials, notices, and documents prepared by WHAHLT in implementation of this Agreement.
10. Indemnification. WHAHLT agrees to hold harmless, indemnify and defend HRA, its
elected officials, officers, agents, and employees against any and all claims, losses, or damages,
including attorneys’ fees, arising from, allegedly arising from, or related to, the provision of
services under this Agreement by WHAHLT, its employees, agents, officers, or volunteer
workers.
11. Independent Contractor. Nothing in this Agreement is intended, nor may be construed, to
create the relationship of partners or employer/employee between the parties. WHAHLT, its
officers, agents, employees, and volunteers are, and will remain for all purposes and services under
this Agreement, independent contractors.
12. Entire Agreement. The entire agreement of the parties is contained in this document. This
Agreement supersedes all previous written and oral agreements and negotiations between the
parties relating to the subject matter of this Agreement except as provided in paragraph 14 of this
Agreement.
13. Severability. The invalidity, illegality or enforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, all of which
shall remain in full force and effect.
14. Assignment of Agreement. The parties shall not assign this Agreement without the express
written consent of the other party.
15. Modification. No provision, term or clause of this Agreement shall be revised, modified,
amended or waived except by an instrument in writing signed by both parties.
16. Counterparts. This Agreement may be executed in any number of counterparts and each
such counterpart shall be deemed to be an original, all of which, when taken together, shall
constitute one agreement.
17. Headings. The titles to the sections and headings of various paragraphs of this Agreement
are placed for convenience of reference only and in case of conflict, the text of this Agreement,
rather than such titles or headings shall control.
18. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the successors and assigns of each of the parties hereto.
19. Invalidity. If for an y reason any portion or paragraph of this Agreement shall be declared
void and unenforceable by any court of law or equity, it shall only affect such particular portion or
5
paragraph of this Agreement, and the balance of this Agreement shall remain in full force and
effect and shall be binding upon the parties hereto.
20. Governing Law. This Agreement shall be governed and construed in accordance with the
laws of the State of Minnesota.
21. Electronic Signatures. This Agreement may be executed with electronic signatures.
(Signature page follows)
S-1
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in
its name and behalf and WHAHLT has caused this Agreement to be duly executed in its name and
behalf as of the date first above written.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
By ________________________________
Its Chairperson
By ________________________________
Its Executive Director
WEST HENNEPIN AFFORDABLE HOUSING LAND
TRUST
By ________________________________
Its Executive Director
A-1
EXHIBIT A
DEVELOPER PRO FORMA
Sources & Uses - Preliminary
Name of Property:
Date:
Sources: Comments
Homebuyer Mortgage $
20__ AHIF $ Project Costs
20__ Richfield Tax Increment $ Land & Project Costs
20__ HOME $ Land
20__ MH Impact $ Project Costs
20__ Bond Proceeds $ Land
20__ Met Council $ Rehab
Total $
Uses:
Acquisition Costs $
Closing Costs $
Inspection/other $
Acquisition
costs $
Adm Fee $
Project Fee & HOME
Fee
Holding/Closing Costs/
LC/ Taxes $
Special Assessments
of $_______
Rehab Costs $
Total $
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.B.
S TAFF REPORT NO. 14
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
4/20/2020
RE P O RT P RE PA RE D B Y: Melissa P oehlman, A sst. C ommunity D evelopment D irector
O THE R D E PA RTM E NT RE V IE W:
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
4/14/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of a resolution authorizing the Housing and Redevelopment Authority Executive
Director to grant a 120-day extension to deadlines in existing contracts.
E X E C UT IV E S UM M ARY:
On March 16, the Housing and Redevelopment Authority (HRA) approved a resolution authorizing the
Executive Director to extend performance deadlines of existing agreements in case of an emergency that
limits the availability of HRA staff. As the current C OV I D-19 pandemic had spread, it has become apparent
that there will be significant disruptions to development that do not relate to the ability of HRA staff to work.
The current C OV I D-19 crisis has created disruptions in both financial and construction markets, which has
caused developers to request extensions of their contract deadlines. Rather than amending each agreement,
staff recommends that the Executive Director be authorized to extend deadlines (when delays have been
caused by the C OV I D-19 pandemic) for up to 120 days. The resolution further authorizes the Executive
Director to provide one additional 60-day extension, if conditions warrant.
The HRA has approved several agreements with developers that have deadlines in the coming weeks and
months.
Existing agreements with pending deadlines:
Enclave Development at 65th Street and Lyndale Avenue - A Preliminary Development Agreement with
Enclave Development, LLC was approved on February 18, 2020. W ith this situation continuing to
unfold, it will be difficult for the developer to put together a pro-forma with any degree of confidence or
for HRA staff to negotiate a Development Agreement by J une.
Henley I I at 64th Street & Lyndale Avenue - A Preliminary Development Agreement with NorthBay
Companies was approved on J anuary 21, 2020. The developer has entered into purchase agreements
for five properties, but will need to extend those purchase agreements until J uly due to impacts from the
C OV I D-19 crisis. W hile there has been a great deal of progress made by the developer (such as
revising their plan to reduce building height adjacent to single-family homes, increasing the parking
ratio and addressing storm-water issues), the delay in closing will necessitate extending the
Preliminary Development Agreement by at least 120 days.
RF64 at 63rd Street & Richfield Parkway - T he development was scheduled to close on the
apartment property by March 31st; however, the Stay at Home order has slowed progress on
the closing. Executive Director Stark extended the deadline until May 4, under the authority
the H R A approved on March 16, 2020; however, an additional extension will likely be needed.
Slow-downs caused by working from home, uncertainty over virtual public hearings, and the
closure of the Hennepin County plat office have all delayed approval of the plat, which is
required for the closing to occur. T here is an option to do a “dry” closing, in which documents
and funds are held in escrow until the plat can be filed; however, attorneys for both the HRA
and the developer recommend that an extension of the closing deadline is the preferred
alternative.
NHH at 6501 Penn Avenue - Staff presented two affordability options on February 18; however,
H R A Commissioners were split 2-2 over the two options. Staff had planned to return to the
H R A for further discussion and to recommend moving forward with “community conversations”
about affordable housing; however, the COVID-19 crisis has disrupted these plans.
Alternatively, staff and the developer plan to apply to the Metropolitan Council for pre-
development planning funds in anticipation of being able to continue developing a plan for the
property once the Stay at Home order has been lifted. Extending the dates in the Preliminary
Development Agreement (April 30 for site planning and June 30 for a Development
Agreement) will allow for a more thoughtful planning process.
RE C O M M E ND E D AC T I O N:
By Motion: Approve the attached resolution authorizing the Executive Director of the Housing and
Redevelopment Authority to extend deadlines in existing contracts.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
To date, there has not been a crisis like the current pandemic.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Staff and the HRA Attorney believe that a policy allowing extensions due to the current pandemic
is warranted. The additional time will hopefully allow markets to stabilize and project
discussions/work to continue.
C.C R IT IC AL T IMIN G IS S U E S:
Deadlines in certain agreements are approaching.
D.F IN AN C IAL IMPAC T:
None
E.L E GAL C ON S ID E R AT ION:
The HRA Attorney has been consulted on this issue and drafted the attached resolution.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Direct staff to prepare individual resolutions to consider extensions on a project-by-project basis.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR OF THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD TO EXTEND
DEADLINES IN EXISTING CONTRACTS
WHEREAS, the Board of Commissioners (the “Board”) of the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota (the “Authority”) has previously authorized the
Executive Director of the Authority to approve and execute contracts and agreements on behalf of the
Authority so long as such documents or agreements do not provide for the expenditure of funds in an
aggregate amount of more than $50,000, all without prior action by the Authority; and
WHEREAS, the spread of COVID-19 in the State of Minnesota has created disruptions in the local
markets, including the financial and construction markets, which has caused developers to request extensions
of deadlines in their contracts with the Authority; and
WHEREAS, due to these disruptions, the Authority proposes to authorize the Executive Director to
extend performance deadlines in all contracts regardless of the monetary value of such contracts for all delays
caused by the COVID-19 pandemic for up to one hundred and twenty (120) days with the option of providing
another sixty (60) day extension if the circumstances at the time warrant an additional extension;
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. The Executive Director is hereby authorized, on behalf of the Authority, to extend
performance dates in all contracts regardless of the monetary value of such contracts, all without prior action
by the Board, to the extent necessary to allow for performance under the contracts. Such extensions may be
for up to one hundred and twenty (120) days with the option of providing another sixty (60) day extension if
the circumstances at the time warrant an additional extension.
2. This resolution shall be in full force and effect as of the date hereof.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
this 20th day of April, 2020.
Mary Supple, Chair
Maria Regan Gonzalez, Secretary
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #4.
S TAFF REPORT NO. 15
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
4/20/2020
RE P O RT P RE PA RE D B Y: J ulie Urban, Housing and Redevelopment Manager
O THE R D E PA RTM E NT RE V IE W:
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
4/15/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of a Professional Services Agreement with Volunteers Enlisted to Assist People to
provide emergency rent assistance to low-income Richfield households impacted by the C O V ID-19
crisis.
E X E C UT IV E S UM M ARY:
The C OV I D-19 crisis (Crisis) is having a negative economic impact on Richfield residents. J ob losses and
reduction in income create food insecurity and housing instability, especially for low-income
households. Volunteers Enlisted to Assist People (VEAP) provides emergency rent and food
assistance to Richfield households, and they have seen a significant increase in requests for
assistance for both food and rent since the State's Stay at Home order was enacted. T he City
annually provides funding to VE AP for this assistance; however, increased needs have led to a need
for additional funding.
Staff is recommending that the Housing and Redevelopment Authority (HRA) provide an immediate
$30,000 in funding to VE AP to expand its emergency rental assistance program to renters financially
impacted by the Crisis. Assuming an average rent for a two bedroom apartment is approximately
$1,200, the funds provided by the H R A would provide rent assistance and cover staff and
administrative costs for up to 25 households.
In order to facilitate the emergency rental assistance, the H R A Attorney has recommended that the
City pass an ordinance creating an Affordable Housing Trust Fund (Trust Fund). T he Trust Fund
will provide clear legal authority to the City and the HRA, as its administrator of the Trust Fund, to
provide emergency rental assistance. Until an ordinance can be passed, the City Council will be
asked to consider passing an emergency ordinance authorizing the HRA to provide rental
assistance required because of the C OVID-19 crisis. T he proposed Professional Services
Agreement (Agreement) will be effective with that approval.
T he source of funds for the rental assistance would be the HRA's Capital Improvement Fund. T he
Capital Improvement Fund was created many years ago with the intention of maintaining a $1 million
balance and using investment earnings for special programs and/or emergency situations. T here is
currently $1,125,942 available in the Capital Improvement Fund. Staff recommends that the HRA
allocate $30,000 of these funds to VE AP at this time. Additional funds will likely be needed as the
Crisis continues, at which time staff will return to the H R A to ask for more funding.
RE C O M M E ND E D AC T I O N:
By motion: Approve a resolution authorizing a Professional Services Agreement with Volunteers
Enlisted to Assist People to provide emergency rental assistance to low income Richfield households,
contingent upon City Council approval of an emergency ordinance to allow rental subsidies due to the
impacts of C O V ID-19.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
VE AP serves low-income families, children, seniors, and individuals at serious risk of
hunger and homelessness. Serving the South Hennepin County communities of
Bloomington, Richfield, Edina, and South Minneapolis, V E A P offers immediate and caring
support through access to healthy foods, stable housing, and financial support and assistance.
The City provides human services funds annually to V E A P to provide assistance to Richfield
households earning up to 200% of the federal poverty level.
I n 2019, V E A P assisted 31 Richfield households with rent assistance at the cost of $50,000. An
attachment provides a summary of V E A P's services and the increased need they are seeing.
Staff anticipates that homeowners are also facing challenges making mortgage payments. At this
time, staff is directing homeowners to have conversations with their lenders about potential
forbearance and/or to access free financial counseling services from one of our partners for
advice in managing mortgage obligations and other debt. W e will continue to monitor the needs of
homeowners.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The Crisis is having an economic impact on members of our community. V E A P is seeing a
significant increase in the number of calls from Richfield residents seeking food and emergency
rent assistance due to the loss of jobs and income. People with the lowest incomes are most at
risk of hunger and housing instability. Supporting housing stability is a core part of the HRA's
mission.
V E A P also works closely with Hennepin County and other organizations to leverage additional
resources by ensuring that residents are able to access as many resources as possible.
C.C R IT IC AL T IMIN G IS S U E S:
Anticipating the need for additional funding, the HRA Attorney is recommending that the
City create the Trust Fund. T he Council will be asked to make the H R A the administrator
of the Trust Fund. T he H R A will finance the Trust Fund and provide rent assistance
funding to VE AP from the Trust Fund. Creation of the Trust Fund needs to be by
ordinance and will likely be scheduled for Council consideration in May and June.
I n order to provide funding to V E A P to meet immediate needs, the City Council will be asked to
pass an emergency ordinance authorizing the use of funds for rent assistance due to the impacts
of C OV I D-19. This is scheduled for the Council meeting on April 28, 2020.
W hile there is currently a moratorium on evictions, rent will eventually be due and payable. W e
have heard from several landlords who are willing to work out payment plans for residents, but it
will still be difficult for people to meet these financial obligations. V E A P anticipates another surge
in demand once the eviction moratorium is lifted.
Hennepin County anticipates that Community Development Block Grant (C D BG) funds
may be available to pay for housing and community development needs caused by the
Crisis. While the hope is that those funds will be available soon, the exact timing and
amount is unknown. Providing VEAP with local funds to supplement their rental
assistance program will help to bridge the gap until federal funds are available.
A flyer containing information on housing and other resources is being mailed to all Richfield
residents this week. I nformation on housing resources is also currently available on the City's
website.
D.F IN AN C IAL IMPAC T:
The need for additional funding is immediate. V E A P has experienced a significant increase in the
number of calls for service since the Crisis began. V E A P spent all of its April housing assistance
budget by the end of the first week of the month and is currently not able to help Richfield
residents with rent assistance.
The HRA's Capital I mprovement Fund was created years ago as an interest-earning fund and
intended to provide a source of funding for future needs. The policy established at the time was to
maintain $1 million in the fund and to use the interest to fund special HRA programs. There is
currently $1,125,942 in the Capital I mprovement Fund. Staff recommends that $30,000 be
accessed for emergency rent assistance at this time.
I t's likely that additional emergency assistance will be needed before the Crisis has past. The HRA
may be asked to consider using one or more of the following funding sources:
$95,000 from the Capital I mprovement Fund;
Divert $20,000 from the Apartment Liaison Program;
Ask the Economic Development Authority to divert $15,000 from the Kids@Home Program;
Spend more from the Capital I mprovement Fund, leaving less than a $1 million balance.
E.L E GAL C ON S ID E R AT ION:
The HRA Attorney prepared the Professional Services Agreement.
The HRA Attorney recommends that the City create Trust Fund to facilitate the proposed
emergency rent assistance. Legislation was passed in 2017 giving cities the ability to establish
Affordable Housing Trust funds. The Trust Fund gives clearer authority to cities to provide rental
subsidies than existed when we created the Kids@Home program, which also provides rent
assistance.
The HRA Attorney recommends that the HRA provide funds to V E A P for rental assistance, given
its alignment with the HRA's mission. W hile V E A P is also in need of food assistance, the HRA's
housing assistance help will free up V E A P's other resources for food.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Decide not to approve the Agreement.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
P rofessional S ervices A greement C ontract/A greement
V E A P Response to C O V ID -19 C risis B ackup Material
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING A PROFESSIONAL SERVICE AGREEMENT WITH VEAP, INC.
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
(the “Authority”) enters into professional service agreements with vendors and contractors from time to time;
and
WHEREAS, the Authority has proposed to enter into a professional service agreement with VEAP,
Inc., a Minnesota nonprofit corporation (the “Contractor”), for the administration of a social services program
to provide emergency rental assistance for up to six months to low-income individuals, seniors, youth and
families in the City of Richfield who are affected by the COVID-19 pandemic, and associated staffing and
administrative costs (collectively, the “Services”); and
WHEREAS, there has been presented before the Board of Commissioners of the Authority a form of
Professional Service Agreement (the “Professional Service Agreement”) to be executed by the Authority and
the Contractor, which sets forth the terms of the Services to be provided by the Contractor; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. The Professional Service Agreement is hereby in all respects authorized, approved, and
confirmed, and the Chair and the Executive Director are hereby authorized and directed to execute the
Professional Service Agreement for and on behalf of the Authority in substantially the form now on file with
the Executive Director but with such modifications as shall be deemed necessary, desirable, or appropriate,
the execution thereof to constitute conclusive evidence of their approval of any and all modifications therein.
2. The Chair and the Executive Director are hereby authorized to execute and deliver any and
all documents deemed necessary to carry out the intentions of this resolution and the Professional Service
Agreement.
3. This resolution shall be in full force and effect as of the date hereof.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
this 20th day of April, 2020.
Mary B. Supple, Chair
Maria Regan Gonzalez, Secretary
PROFESSIONAL SERVICE AGREEMENT
VEAP, INC.
THIS PROFESSIONAL SERVICE AGREEMENT (the “Agreement”) made
and entered into by and between the Richfield Housing and Redevelopment
Authority, hereinafter referred to as the “HRA”, and the VEAP, Inc., a Minnesota
nonprofit corporation, hereinafter referred to as “the Contractor”.
WITNESSETH:
WHEREAS, the HRA wishes to purchase the services of the Contractor;
and
WHEREAS, the Contractor wishes to provide the services to the HRA.
NOW, THEREFORE, in consideration of the mutual undertakings and
agreements hereinafter set forth, the HRA and the Contractor agree as follows:
1. SCOPE OF SERVICES AND TERM
The Contractor shall perform the work as described in Exhibit A to this
Agreement, which is incorporated herein by reference.
The Contractor agrees to comply with all federal, state, and local laws and
ordinances applicable to the services to be performed under this
Agreement, including all safety standards. The Contractor shall be solely
and completely responsible for conditions of the job site, including the
safety of all persons and property during the performance of the services.
The Contractor represents and warrants that it has the requisite training,
skills, and experience necessary to provide the services and is
appropriately licensed by all applicable agencies and governmental
entities.
The Contractor shall not perform any additional services without the
express written permission of the HRA.
This Agreement is effective beginning April 29, 2020, and will be in effect
until December 31, 2020. The Agreement will be terminated automatically
on December 31, 2020. The agreement may also be terminated by the
City, with or without cause, upon giving 30 days’ notice prior to written
notice to the Contractor.
2. PAYMENT FOR SERVICES
In exchange for the services provided under this Agreement by the
Contractor, the HRA shall pay the Contractor $30,000 in one lump sum on
or before April 30, 2020, following the receipt of a fully-executed
Agreement.
3. INDEPENDENT CONTRACTOR
The Contractor shall select the means, method, and manner of performing
the services herein in consultation with the HRA. Nothing is intended or
should be construed in any manner as creating or establishing the
relationship of copartners between the Contractor and the HRA or as
constituting the Contractor as the agent, representative, or employee of
the HRA for any purpose or in any manner whatsoever. The Contractor is
to be and shall remain an independent contractor with respect to all
services performed under this Agreement. Any and all personnel of the
Contractor or other persons while engaged in the performance of any work
or services required by this Agreement shall have no contractual
relationship with the HRA, and shall not be considered employees of the
HRA. The Contractor shall also supply, at its own expense, all materials,
supplies, equipment and tools required to accomplish the work
contemplated by this Agreement.
Any and all claims that may or might arise under the Unemployment
Compensation Act or the Workers’ Compensation Act of the State of
Minnesota on behalf of said personnel, arising out of employment,
including, without limitation, claims of discrimination against The
Contractor, its officers, agents, contractors, or employees shall in no way
be the responsibility of the HRA. The Contractor shall indemnify and hold
the HRA, its officers and employees harmless from any and all such
claims irrespective of any determination of any pertinent tribunal, agency,
board, commission, or court. The Contractor, anyone directly or indirectly
employed by the Contractor, subcontractors of the Contractor or other
persons shall neither require nor be entitled to any compensation, rights,
or benefits of any kind whatsoever from the HRA, including, without
limitation, tenure rights, insurance benefits, sick and vacation leave,
workers’ compensation benefits, unemployment compensation, disability,
severance pay, retirement benefits (including but not limited to PERA).
4. NONDISCRIMINATION
The HRA operates in accordance with the City of Richfield’s policies
against discrimination. The Contractor shall abide by all City policies, as
well as all applicable Federal and State laws, against discrimination
including, but not limited to, Minn. Stat. § 181.59.
5. INDEMNITY
To the fullest extent permitted by law, the Contractor agrees to defend,
indemnify and hold harmless the HRA and the City of Richfield, and their
employees, officials, volunteers and agents from and against all claims,
actions, damages, losses and expenses, including attorney fees, arising
out of the Contractor’s negligence or the Contractor’s performance or
failure to perform its obligations under this Agreement. The Contractor’s
indemnification obligation shall apply to the Contractor’s subcontractor(s),
or anyone directly or indirectly employed or hired by the Contractor, or
anyone for whose acts the Contractor may be liable. The Contractor
agrees this indemnity obligation shall survive the completion or termination
of this Agreement.
6. INSURANCE
A. Liability. The Contractor agrees to maintain commercial general liability
insurance in a minimum amount of $1,000,000 per occurrence;
$2,000,000 annual aggregate. The policy shall cover liability arising from
premises, operations, products-completed operations, personal injury,
advertising injury, and contractually assumed liability. The HRA shall be
named as an additional insured.
B. Automobile Liability. If the Contractor operates a motor vehicle in
performing the services under this Agreement, the Contractor shall
maintain commercial automobile liability insurance, including owned,
hired, and non-owned automobiles, with a minimum liability limit of
$1,000,000, combined single limit.
C. Workers’ Compensation. The Contractor agrees to comply with all
applicable workers’ compensation laws in Minnesota.
D. Certificate of Insurance. The Contractor shall, prior to commencing
services, deliver to the HRA a Certificate of Insurance as evidence that the
above coverages are in full force and effect.
7. RECORDS - AVAILABILITY
The Contractor agrees that the HRA, the State Auditor, or any of their duly
authorized representatives at any time during normal business hours and
as often as they may reasonably deem necessary, shall have access to
and the right to examine, audit, excerpt, and transcribe any books,
documents, papers, records, etc., which are pertinent to the accounting
practices and procedures of the Contractor and involve transactions
relating to this Agreement. Records shall be retained for three years from
date of final payment with respect to the project. All reports, memos, and
other data produced by the Contractor shall become the property of the
HRA.
8. DATA PRACTICES COMPLIANCE
This contract is governed by Minnesota Statutes, Chapter 13 (the
“Minnesota Government Data Practices Act”) and specifically § 13.05,
subd. 6 and 11, the provisions of which are incorporated by reference into
this contract. The HRA agrees to give the Contractor access to data
collected or maintained by the HRA as necessary to perform the
Contractor's obligations under this Agreement. The Contractor agrees to
maintain all data obtained from the HRA consistent with the requirements
of the Minnesota Government Data Practices Act, Minn. Stat. §§ 13.02 et
seq. The Contractor will not release or disclose the contents of data
classified as not public to any person except at the written direction of the
HRA. The Contractor agrees to indemnify the HRA from any claim,
liability, damage or loss asserted against HRA as a result of the
Contractor's failure to comply with the requirements of this paragraph;
provided that the Contractor shall have no duty to defend or indemnify
where the Contractor has acted in conformance with the HRA's written
directions. Upon termination of this contract, the Contractor agrees to
return data to the HRA, as requested by the HRA.
9. NO ASSIGNMENT
The Contractor shall not assign, subcontract, transfer, or pledge this
contract and/or the services to be performed hereunder, whether in whole
or in part, without the prior written consent of the HRA. To the extent that
the HRA consents to the subcontracting of any of the services of this
agreement, the Contractor agrees to bind every subcontractor by the
applicable terms, conditions, and provisions to the subcontractor's work as
set forth in this Agreement, unless otherwise specifically agreed otherwise
in writing by the HRA, and to pay every subcontractor within 10 days of
receipt of payment from the HRA pursuant to Minn. Stat. § 471.425.
10. MERGER AND MODIFICATION
It is understood and agreed that the entire agreement between the parties
is contained herein and that this Agreement supersedes all oral
agreements and negotiations between the parties relating to the subject
matter hereof. All items referred to in this Agreement are incorporated or
attached and are deemed to be part of this Agreement.
Any material alterations, variations, modifications, or waivers of provisions
of this Agreement shall only be valid when they have been reduced to
writing as an amendment to this Agreement signed by the parties hereto.
11. DEFAULT AND CANCELLATION
The HRA shall have the option to terminate this Agreement at any time.
Termination shall be effective upon ten (10) days written notice to the
Contractor.
If the Contractor refuses or fails to complete the tasks described in
paragraph 1, or to complete the services in a manner satisfactory to the
HRA, the HRA may, by written notice to the Contractor, give notice of its
intention to terminate this Agreement. After such notice, the Contractor
shall have ten (10) days to cure, to the satisfaction of the HRA. If the
Contractor fails to cure, the HRA shall send the Contractor a written
termination letter which shall be effective upon deposit in the United
States mail to the Contractor’s address as stated in paragraph 13.
In the event of termination, the HRA shall only be responsible to pay for all
services satisfactorily performed by the Contractor to the effective date of
termination, as described in the final invoice to the HRA.
12. CONTRACT ADMINISTRATION
In order to coordinate the services of the Contractor with the activities of
the HRA so as to accomplish the purposes of this contract, Julie Urban
shall manage this contract on behalf of the HRA.
In addition, from time to time, meetings shall be held between the
Contractor and HRA staff. The Contractor may also report directly to the
HRA Board of Commissioners.
13. NOTICES
Any notice or demand which must be given or made by a party hereto
under the terms of this Agreement shall be in writing.
Notices shall be sent as follows:
Community Development Department
Attn: Julie Urban
6700 Portland Avenue South
Richfield, MN 55423
VEAP, Inc.
Attn: Kari Thompson
9600 Aldrich Avenue South
Bloomington, MN 55420
14. GENERAL PROVISIONS
A. Nondiscrimination. In the hiring of employees to perform work under this
Agreement, the Contractor shall not discriminate against any person by
reason of any characteristic protected by state or federal law.
B. Force Majeure. Except for payment of sums due, neither party shall be
liable to the other or deemed in default under this Agreement, if and to the
extent that such party’s performance is prevented by reason of Force
Majeure, as determined by the HRA.
C. Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Minnesota. All proceedings
related to this Agreement shall be venued in the State of Minnesota.
D. Waivers. The waiver by either party of any breach or failure to comply
with any provision of this Agreement by the other party shall not be
construed as, or constitute a continuing waiver of such provision or a
waiver of any other breach of or failure to comply with any other provision
of this Agreement.
E. Ownership of Documents. All reports, plans, specifications, data, maps,
and other documents produced by the Contractor in the performance of
services under this Agreement shall be the property of the HRA.
F. Counterparts. This Agreement may be signed in counterparts, each of
which shall be deemed an original, and which taken together shall be
deemed to be one and the same document.
G. Savings Clause. If any court finds any portion of this Agreement to be
contrary to law, invalid, or unenforceable, the remainder of the Agreement
will remain in full force and effect.
The Contractor having signed this contract, and the HRA having duly approved
this contract on April 20, 2020, and pursuant to such approval and the proper
HRA officials having signed this contract, the parties hereto agree to be bound by
the provisions herein set forth.
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
By: __________________________
Chairperson
By: __________________________
Executive Director
VEAP, INC.
By: __________________________
Its Executive Director
EXHIBIT A
SCOPE OF WORK
Program
VEAP will provide support and rental assistance to low income renters impacted
by the COVID-19 crisis. Specifically, VEAP will provide 1) support for low and
moderate income renters to maintain safe and stable housing by communicating
with property management and negotiating payment arrangements directly with
property management or landlords, a need which could increase as job hours are
cut or job loss occurs; 2) limited emergency rent assistance to help maintain
housing stability and prevent homelessness, and 3) administration and staffing
as needed to provide housing stability to residents of the City.
Actions of Contractor
A. Contractor will provide regular progress reports to the HRA as to the
expenditure of funds. Upon completion of all services, VEAP will provide
a close-out report showing the use of all funds provided.
B. Contractor will provide services under this agreement to all persons
without regard to race, color, sex, marital status, or status with regard to
public assistance or disability.
Executive Summary
Volunteers Enlisted to Assist People (VEAP), serves low-income families, children, seniors, and
individuals at serious risk of hunger and homelessness. Serving the South Hennepin County communities
of Bloomington, Richfield, Edina, and South Minneapolis, VEAP offers immediate and caring support
through access to healthy foods, stable housing, and financial support and assistance.
VEAP believes that helping a neighbor in need strengthens the social and economic fabric of our
community. Our mission: Together we create pathways to stronger, more hopeful, communities
through access to healthy foods, housing stability and supportive services. VEAP strives to increase
overall stability, hope, and potential for future success for all members of our community.
Need and Target Group
Our community and our nation have seen unprecedented financial crisis surrounding the Coronavirus
pandemic. Due to restrictions in place around COVID19 and social distancing recommendations, many
businesses, stores, restaurants, and more have all been forced to shut down, and families in Minnesota
are facing extremely uncertain times. In the past two weeks, thousands of Minnesotans lost their jobs,
with the Minnesota Department of Employment and Economic Development (DEED) reporting over
300,000 new applications for unemployment – placing many families in immediate financial distress, and
that number continues to grow. Many of these families live, work, and go to school in Richfield. Over
85% of these new applicants have never been on unemployment and are finding themselves navigating
unknown terrain for resources to help pay for rent, food, and basic needs – things they never expected
to need help with.
Fortunately, an eviction freeze is in place for now, however Richfield tenants will still owe unpaid past
due rent and it will be difficult to reestablish financial security after such a substantial loss in income to
so many. We are anticipating over the next several months, Richfield families will need increased
assistance to put food on the table and maintain housing stability. Minnesota’s housing experts are
estimating that this crisis could potentially set families back several months – meaning help with rent,
basic necessities, and food for a minimum of up to six months after restrictions have been lifted will be
critical.
Current Eligibility Requirements
Average rents in Richfield range from $1,150 to $1,350 for a two-bedroom. Under VEAP’s current
financial assistance model, minimum monthly rent guidelines deem families paying higher than market
rent as ineligible and we only have the funds available to help households with up to two months of
rent, at a maximum. Current eligibility guidelines also require anyone seeking rent assistance needs to
be below 200% federal poverty guidelines for the last 30 days, meaning very low income. Each
household’s rental situation also needs to have a certain level of resolvability.
VEAP’s Social Services team screens households through a variety of assessments, including verifying
income and speaking with landlords to provide individualized case management. VEAP staff speaks with
landlords to verify residence and assure they are only a month or two behind on rent, and/or are able to
come to a reasonable payment arrangement within three months.
VEAP page 2
Proposed Eligibility Requirements and Model Changes
If provided with emergency COVID19 supplemental funding, VEAP would be able to provide
considerably more financial assistance to Richfield households in need, ensuring families stay secure in
their homes. In order to meet the needs of more families in Richfield, VEAP proposes the following
changes to our current model:
• Temporarily lift eligibility guidelines to allow for more households to qualify for financial
assistance.
• Allow for longer rental resolvability timeline of up to six months (versus the current two-month
timeline), as more families seek help from loss of income.
• Increase minimum monthly rent guidelines to assist more households who live in higher priced
rentals who normally would be ineligible.
• Increase the number of households that we are able to help.
• Provide more food and basic necessities to Richfield residents to help offset household expenses
and alleviate the need to use money intended for rent to feed their families. (As of April 1, 2020,
we have doubled the number of visits that households can make to the food pantry and are
constantly adapting, as the need increases).
• Disburse emergency financial assistance to residents for help with transportation (gas cards, bus
cards, car repair) and childcare to help with job search as households get back on their feet
financially.
• Continue to serve all eligible households regardless of immigration status.
In 2019, VEAP distributed 4.3 million pounds of food, half of which was fresh fruits and vegetables. VEAP
provided access to healthy foods and housing stability to 7,252 unduplicated Richfield residents for a
total of 44,445 visits. There is already an increasing need for help in Richfield. With the loss of so many
jobs in our community, the increase in Richfield individuals and families needing our help will be
exponential.
Request
VEAP is respectfully requesting funding to provide housing stability, financial assistance, and food
security to Richfield residents. With this funding, additional families will receive rental assistance for
three-plus months and hundreds more housholds will be provided with healthy food and basic needs
assistance, alleviating some of their financial burden by allowing money intended for groceries to be
used towards rent. Thank you for consideration of VEAP’s request.
Sincerely,
Kari Thompson
Advancement Director
karit@veap.org