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10-19-2020 EDA Complete AgendaE C O N O MIC D E V E L O P ME N T AU T H O R IT Y ME E T IN G V IR T U AL ME E TIN G H E L D V IA W E B E X O C TO B ER 19, 2020 7:15 PM (I MME D I AT ELY FO L L OWI NG THE HRA ME ETI NG) C all to Order A ttendance Open F orum: Opportunity for C itizens to address the E D A on items not on the current A genda; dial phone number 612- 861-0651. A s you call in, a moderator will assist you. Approval of the Minutes A pproval of the minutes of the regular E conomic D evelopment A uthority meeting of S eptember 21, 2020. AG E N D A APPR O VAL 1.A pproval of the A genda O T H E R B U S IN E S S 2.A n amendment to the guidelines for the K ids @ Home P rogram to expand participation in cases of unforeseen events causing financial hardship. S taff Report No. 17 E D A D ISC U SSIO N IT E MS 3.E D A D iscussion Items E X E C U T IV E D IR E C TO R R E P O R T 4.E xecutive D irector's Report C LAIMS 5.C laims 6.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. ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota September 21, 2020 CALL TO ORDER The meeting was called to order by President Supple at 7:28 p.m. via Webex. EDA Members Mary Supple, President; Maria Regan Gonzalez; Sue Sandahl; Erin Vrieze Present: Daniels; and Pat Elliott. EDA Members None Absent: Staff Present: Katie Rodriguez, City Manager; John Stark, Executive Director; Julie Urban, Housing Manager; and LaTonia DuBois, Administrative Assistant. OPEN FORUM President Supple provided the phone number and instructions to call in for open forum. No callers. APPROVAL OF MINUTES M/Regan Gonzalez, S/Vrieze Daniels to approve the minutes of the regular Economic Development Authority meeting of August 21, 2020 Motion carried 5-0 Item #1 APPROVAL OF THE AGENDA M/Sandahl, S/Vrieze Daniels to approve the agenda. Motion carried 5-0 Item #2 APPROVAL OF THE CONSENT CALENDAR Executive Director Stark presented the consent calendar. a) Consideration of a resolution correcting the Economic Development Authority Proposed Property tax levy for payable 2021. (S.R. No. 15) EDA Meeting Minutes -2- September 21, 2020 M/Sandahl, S/Vrieze Daniels to adopt a resolution correcting the proposed tax levy for payable 2021. RESOLUTION NO. 26 RESOLUTION APPROVING PROPOSED 2021 ECONOMIC DEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2021 TAX LEVY Motion carried 5-0 Item #3 CONSIDERATION OF ITEMS, IF ANY REMOVED FROM THE CONSENT CALENDAR. None. Item #4 CONSIDERATOIN OF A RESOLUTION CREATIGN A SECOND ROUND OF ECONOMIC DEVELOPMENT AUTHORITY ADMINISTERED COVID-19SMALL BUSINESS ASSISTANCE FORGIVABLE LOANS AND AUTHORIZING THE EXECUTIVE DIRECTOR AND ECONOMIC DEVELOPMENT AUTHORITY LEGAL COUNSEL TO MODIFY THE TERMS OF ALL COVID LOANS (BOTH ROUNDS). (S.R. NO. 16). Executive Director Stark presented Staff Report No. 16. Executive Director Stark explained how staff notified businesses about the first round of Covid loans and provided some background information about businesses that received the first round of Covid loans. Executive Director Stark mentioned some revisions to the qualifications for the second round of Covid loans and explained that businesses who received the first round of Covid loans would not be exempt, but they would not be given priority over first time applicants. Commissioner Regan Gonzalez thanked staff for the program and the support of small businesses. Executive Director Stark stated how gratifying it has been to work with the business community. Commissioner Vrieze Daniels inquired about recipients who received one of the first round of Covid loans. Executive Director Stark explained that businesses would not be ineligible, but they would not receive preference over first time applicants. M/Regan Gonzalez, S/Vrieze Daniels to approve a resolution amending the terms of the Economic Development Authority administered Covid-19 Small Business Assistance Forgivable Loans and authorizing a second round of loans. RESOLUTION NO. 27 RESOLUTION IMPLEMENTING A COVID-19 SMALL BUSINESS ASSISTANCE FORGIVABLE LOAN PROGRAM. Motion carried 5-0. EDA Meeting Minutes -3- September 21, 2020 Item #5 EDA DISCUSSION ITEMS President Supple welcomed KMNV La Raza radio station to the City of Richfield. Item #6 EXUCTIVE DIRECTOR’S REPORT Executive Director Stark reported on the EDA energy efficient business grant, that the first grant was awarded in August and invited commissioners and the public to reach out with questions. Item # CLAIMS M/Vrieze Daniels, S/Sandahl that the following claims be approved: U.S. BANK 9/21/2020 EDA Checks: 20484-20501 $16,649.21 TOTAL $16,649.21 Item #8 ADJOURNMENT The meeting was adjourned by unanimous consent at 7:50 p.m. Date Approved: October 19, 2020 Mary B. Supple President LaTonia DuBois John Stark Administrative Assistant Executive Director AGENDA SECTION:OTHER BUSINESS AGENDA ITEM #2. S TAFF REPORT NO. 17 E CONOMIC DE V E LOP ME NT AUT HORIT Y MEET ING 10/19/2020 RE P O RT P RE PA RE D B Y: J ulie Urban, Housing & 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 10/13/2020 I T E M F O R C O UNC IL C O NS ID E RAT I O N: An amendment to the guidelines for the Kids @ Home Program to expand participation in cases of unforeseen events causing financial hardship. E X E C UT IV E S UM M ARY: The Kids @ Home Program (Program) is a shallow rent subsidy program designed to help families with children in Richfield schools attain a stable housing situation, as studies show this is a key factor in educational success. The Program is now celebrating its fifteenth year of serving the community. To date, over 150 families have benefited from the Program. Under the current guidelines, the Program provides four years of rental assistance and requires a member of the household to be working a minimum of 30 hours per week. The proposed revisions would offer some flexibility to these requirements in the case of an unforeseen event that imposes a severe financial hardship to the family. Unforeseen events could include, but would not be limited to: unexpected job loss by adult family member; housing loss due to fire or natural disaster; death of an immediate family member; pandemic; and or major illness. Under the revised guidelines, participation in the Program could be extended up to one year in length. The family would need to continue to meet other criteria of the Program guidelines. Work hour reduction amounts would be determined on a case-by-case basis. RE C O M M E ND E D AC T I O N: By motion: Amend the guidelines of the Kids @ Home Program to expand participation and/or allow flexibility in the work requirement due to unforeseen events that cause financial hardship. 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 The Kids @ Home Program began on December 1, 2004. The Program provides four years of rent assistance. B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): The Kids @ Home Program provides a shallow rent subsidy and supportive services to families with children attending a Richfield school. The Program provides housing affordability and school stability to families with children earning less than 50% of the Area Median I ncome. C.C R IT IC AL T IMIN G IS S U E S: The guideline change would be effective immediately. Currently the Kids @ Home Program has two families where their participation in the Program is set to expire December 31, 2020. During the C OV I D-19 pandemic, one family has experienced a job loss and another has had their hours reduced. Both families have not returned to work but continue to strive to make the goals they established during their four years on the Program. Granting them an additional year on the Program will help to alleviate the anxiety and stress they are currently facing from the impending loss of rent assistance at the end of the year. D.F IN AN C IAL IMPAC T: There are sufficient funds to cover the proposed guidelines revision. E.L E GAL C ON S ID E R AT ION: Kids @ Home is funded solely by the Richfield Economic Development Authority (E D A), and the E D A has the authority to make guideline revisions. ALTE R N AT IV E R E C O MME N D ATIO N(S): Do not amend the guidelines. Continue the item to seek further information or clarification. 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 Guidelines B ackup Material Kids @ Home – Rental Assistance Program Kids @ Home is a 48 month rent assistance program. Families must fit the criteria to enter the program and maintain this criterion to continue to receive rental assistance under the program. Criteria for families: ♦ must currently be housed in unsubsidized rental housing in Richfield (no shared housing) ♦ have a child or children in Richfield schools (K – 12) ♦ child or children need to be enrolled and attend a Richfield school ♦ one parent (or adult in family) is employed for a minimum of 30 hours a week (pay checks stubs for 2 months of work needed to provided verification of this income) ♦ not receiving any other housing assistance ♦ annual income must fall at or below income guideline (priority given to applicants who have income that falls below 50% of AMI) ♦ rental payments must be current or no more than one month’s total rent owed to landlord ♦ Families must be willing to attend 10 Parent Share meetings a year (Parent Share meetings are held Thursday evenings from 6:00 p.m. to 8:00 p.m. at Hope Presbyterian Church in Richfield. Families must attend 5 of the Parent Share meetings by June 30th of each year and the remaining 5 must be completed by December 15th of each year) Families must be willing to attend 10 Parent Share meetings a year (Parent Share meetings are held Thursday evenings from 6:00 p.m. to 8:00 p.m. at Hope Presbyterian Church in Richfield. Families must attend 5 of the Parent Share meetings by June 30th of each year and the remaining 5 must be completed by December 15th of each year) For 2021 it is anticipated meetings will be held via phone, tablet and computer on ZOOM. ♦ Reductions in the work hours and/or an exception to the four year program limit may be granted in cases of unforeseen events that cause financial hardship, including but not limited to unexpected job loss, housing loss due to fire or natural disaster, death of an immediate family member, pandemic, or major illness. Income Limits Effective 04/01/2020 60% of Area Median Income (AMI) 50% of Area Median Income (AMI) Persons Income Limit Persons Income Limit 2 $49,600 2 $41,400 3 $55,800 3 $46,550 4 $62,000 4 $51,700 5 $67,000 5 $55,850 6 $72,000 6 $60,000 For families with family members of 7 + please contact Richfield HRA at 612-861-9773 Occupancy Standards – Family Size determines the Occupancy Size (bedroom size for your family) and the bedroom size determines your rent assistance. You may live in a unit that is larger than the Occupancy Size determined by Richfield HRA, rent assistance in that case will be determined by actual family size. If your family lives in a unit smaller than the occupancy standard the assistance determined by Richfield HRA is the bedroom size of the unit. Number of Persons Bedroom Size 2 - 4 2 5 -7 3 8 -10 4/5 Rent Assistance (effective 9/1/2020) – Families receive rent assistance based on the following flat payment. Each year rent assistance decreases, families responsibility will increase) Bedroom Size 1st Year 2nd Year 3rd Year 4th Year One $450 $400 $350 $250 Two $550 $500 $450 $350 Three $650 $550 $500 $450 Four/Five $750 $700 $650 $550 The Kids @ Home Program will open in October 2020 for applications. Interested individuals will need to download an application from the City of Richfield’s website (www.cityofrichfield.gov). There will be a link on the first page of the website that will direct you to the application. The application will be available for download from 10:00 a.m. Tuesday October 27, 2020 through 4:00 p.m. Friday November 13, 2020. Complete the entire application and return it along with a copy of your current lease and paystubs that reflect 6 – 8 weeks of payment (check stubs must be dated September 2020, October 2020 or November 2020). If you are currently not working 30 hours a week due to Covid-19, please contact our office at section8@richfieldmn.gov and put in the subject line of that e-mail Kids @ Home Covid 19 Work Waiver. In the body of your e- mail please give your name, street address and tell us a little bit about your most recent work history. A waiver form will be e- mailed to you for completion to submit with your application. The application, current lease and appropriate paystubs (or waiver form) must be submitted to Richfield HRA no later than 4:00 p.m. on Monday November 23, 2020. (FAX AND E-MAILS WILL NOT BE ACCEPTED) If there are more qualified candidates than openings available Richfield HRA will conduct a random lottery drawing. Letters/E-mails for the qualified candidates who have been pulled for the lottery will be sent out no later than December 1, 2020. Those applications not selected in the lottery draw will have their applications shredded. Applicants selected from the lottery draw must complete the required process to become participants on the Kids @ Home Program as well as attend a scheduled phone briefing in December of 2020. Rent assistance for qualified candidates who have successfully completed the application process will begin January 1, 2021 or February 1, 2021.