Loading...
06202023 EDA Complete AgendaECONOMIC DEVELOPMENT AUTHORITY MEETING RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS JUNE 20, 2023 7:15 PM (IMMEDIATELY FOLLOWING THE HRA MEETING) Call to Order Open Forum Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the EDA. Please refer to the EDA agenda and minutes web page for additional ways to submit comments. You may also call 612-861-9764 or email ldubois@richfieldmn.gov with questions. Call into the open forum by dialing 1-415-655-0001 Use webinar access code: 2630 557 9041 and password: 1234. Appr oval of t he M inut es Approval of the minutes of the 1) Economic Development Authority work session of April 17, 2023; and 2) the Regular Economic Development Authority meeting of April 17, 2023. AGENDA APPROVAL 1.Approval of the Agenda 2.Consent Calendar contains several separate items which are acted upon by the EDA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further EDA action on these items is necessary. However, any EDA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for EDA discussion and action. All items listed on the Consent Calendar are recommended for approval. A.Consideration of the approval of revisions to the Transformation Loan Program Guidelines. Staff Report No. 6 B.Amend the Kids @ Home Rental Assistance Program guidelines, expanding the service area to include the unincorporated territory of Fort Snelling. Staff Report No. 7 3.Consideration of items, if any, removed from Consent Calendar EDA DISCUSSION ITEMS 4.EDA Discussion Items EXECUTIVE DIRECTOR REPORT 5.Executive Director's Report CLAIMS 6.Claims 7.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 612-861-9739. ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota EDA Work Session APRIL 17, 2023 CALL TO ORDER Chair Supple called the work session to order at 6:00 p.m. in the Bartholomew Room. EDA Members Present: Erin Vrieze Daniels, President; Mary Supple; Sean Hayford Oleary; and Gordon Hansen EDA Members Absent: Lee Ohnesorge Staff Present: Guest: Melissa Poehlman, Executive Director; Dustin Leslie, City Clerk; Julie Urban, Assistant Community Development Director; Jan Youngquist, Economic Development Manager John Stark, Consultant ITEM #1 PRESENTATION OF BUSINESS ASSISTANCE ANALYSIS AND RECOMMENDATIONS BY CONSULTANT JOHN STARK Executive Director Poehlman introduced Stark to the Authority as well as new Economic Development Manager Youngquist. Stark presented an analysis of business assistance programs to the Authority. His presentation included: assistance programs provided from 2020-2022; opportunities for reevaluation; types of business assistance programs; peer city evaluation; responses from the small business survey; and participation in the small business advisory forum. During the presentation, Commissioner Hayford Oleary asked about property taxes and how they compared to Bloomington for business owners. He also asked if it was true that the city had excessive paperwork processes. Executive Director Poehlman discussed the differences in tax base between Richfield and Bloomington and stated the city was working on ways to improve and streamline paperwork processes for business owners. President Vrieze Daniels asked about the city’s relationship with the Richfield Chamber of Commerce and why it was not more prominent. Stark spoke about the history between the city and the chamber as well as challenges and opportunities. Executive Director Poehlman spoke about efforts the city was making to strengthen its relationship with the chamber. Economic Development Authority Work Session Minutes -2-April 17, 2023 Commissioner Supple and Stark spoke about larger Twin Cities business groups such as the Latino Economic Advisory Authority. Stark noted business owners from Richfield are represented well there. Stark continued the presentation speaking on the following: recommendations from the small business advisory forum; observations and desired outcomes of business assistance in Richfield; and how to achieve desired outcomes. President Vrieze Daniels asked if the city knows what types of businesses the community is lacking that the EDA could focus on. Executive Director Poehlman stated the city had no hard data on business types in the community and only had anecdotal data. She further stated that the city is looking at a downtown strategy in the strategic plan and could solicit feedback from the community in the future. President Vrieze Daniels asked staff to look at business rent costs in Richfield to see how it compares to neighboring cities. Commissioner Supple stated that if the city was interested in supporting small businesses in the community, she would prefer the city support businesses that paid their employees a higher wage. President Vrieze Daniels and staff had a conversation about the installation of bike racks at new businesses and the bike rack grant provided by the city. There was also a discussion about business displacement, why it happens, and mitigation efforts. ADJOURNMENT The work session was adjourned by unanimous consent at 6:58 p.m. Date Approved: June 20, 2023 Gordon Hanson Acting EDA President Dustin Leslie Melissa Poehlman City Clerk Executive Director ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting April 17, 2023 CALL TO ORDER The meeting was called to order by President Supple at 7:35 p.m. in the Council Chambers. EDA Members Present: Erin Vrieze Daniels, President; Sean Hayford Oleary; Mary Supple; and Gordon Hanson EDA Members Absent: Lee Ohnesorge Staff Present: Melissa Poehlman, Executive Director; Dustin Leslie, City Clerk; Julie Urban, Assistant Community Development Director; Jan Youngquist, Economic Development Manager OPEN FORUM President Vrieze Daniels provided instructions to call in for the open forum and there were no participants. APPROVAL OF THE MINUTES M/Hanson, S/Supple to approve the regular Economic Development Authority meeting minutes of March 20, 2023. Motion carried: 4-0 ITEM #1 APPROVAL OF THE AGENDA M/Hayford Oleary, S/Hanson to approve the agenda. Motion carried: 4-0 ITEM #2 CONSIDERATION OF THE CONSENT CALENDAR Executive Director Poehlman presented the Consent Calendar: EDA Meeting Minutes -2-April 17, 202 A.Consider acceptance of the attached report titled: Richfield Business Assistance Analysis & Recommendations. (Staff Report No. 4) M/Supple, S/Hanson 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 THE APPROVAL OF REVISIONS TO THE TRANSFORMATION LOAN PROGRAMS. (STAFF REPORT NO. 5) Assistant Director Urban summarized the loan program and outlined recommended changes to the guidelines. Hayford Oleary compared the program to Rediscovering Richfield Rediscovered and asked if there were risks of residents using funds from both programs. Assistant Director Urban stated that would not be allowed under the program. Hayford Oleary spoke about duplexes and if they could be eligible for a higher amount of $30,000. Assistant Director Urban stated staff could revise language and bring it back at the next meeting. President Vrieze Daniels asked if it would be possible for applicants making energy- efficiency improvements to get overfunded given the state and federal resources available and if we should clarify that it’s out-of-pocket expenses that need to equal a certain amount. Assistant Director Urban stated they could look into that and bring it when the item is brought before the Authority again at the next meeting. The Authority agreed to table item until the next meeting. M/Supple. S/Hayford Oleary to table approval of the item to the May 15, 2023 Economic Development Authority meeting. Motion carried: 4-0 ITEM #5 EDA DISCUSSION ITEMS Commissioner Supple spoke about Elsen Brothers Garage going out of business after 130 years in Richfield. She thanked the family for their commitment to the community. Commissioner Supple spoke about the United State’s bid to the World Expo to be in Bloomington. She stated it would have a good economic impact to the region and requested periodic updates from staff. Commissioner Supple thanked staff for the Annual Report at the HRA meeting. ITEM #6 EXECUTIVE DIRECTOR’S REPORT Executive Director Poehlman welcomed new Economic Development Manager Jan Youngquist to the City of Richfield. Youngquist introduced herself to Council and reviewed her background and experience. EDA Meeting Minutes -3-April 17, 202 Executive Director Poehlman spoke about the upcoming Minneapolis/St. Paul home tour and stated she would send more information out to the Authority. ITEM #5 CLAIMS M/Supple, S/Hanson that the following claims be approved: U.S. BANK 4/17/2023 EDA Checks: 21005-21021 $31,704.50 TOTAL $31,704.50 Motion carried: 4-0 ITEM #6 ADJOURNMENT The meeting was adjourned by unanimous consent at 7:55 p.m. Date Approved: June 20, 2023 Gordon Hanson Acting EDA President Dustin Leslie Melissa Poehlman Secretary Executive Director AGENDA SECTION:Consent Calendar AGENDA ITEM #2.A. STAFF REPORT NO. 6 ECONOMIC DEVELOPMENT AUTHORITY MEETING 6/20/2023 REPORT PREPARED BY: Celeste McDermott, Housing Specialist OTHER DEPARTMENT REVIEW: EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director 6/13/2023 ITEM FOR COUNCIL CONSIDERATION: Consideration of the approval of revisions to the Transformation Loan Program Guidelines. EXECUTIVE SUMMARY: On April 17th, 2023, the Economic Development Authority (EDA) reviewed proposed guideline revisions to the Transformation Loan Program that would allow for additional incentives for projects that included Accessory Dwelling Units (ADUs), energy efficiency improvements, or accessibility related improvements. The EDA supported the revisions and suggested adding provisions to include duplex conversions and to clarify that project cost calculations for energy efficiency must include any additional subsidies received from other entities. Staff made updates to the Transformation Loan Program Guideline (Guideline) revisions based on EDA feedback, and the following changes to the Guidelines are recommended: Projects that include an ADU or that convert a single family home to a duplex that meets City standards will be eligible for a higher loan amount of 20% of project costs, not to exceed $30,000. For projects that include energy efficiency or accessibility-related upgrades that total at least $10,000, an additional $2,500 in loan funds will be available. These upgrades must be done in conjunction with qualifying value-added improvements. Energy efficiency upgrades must include improvements from multiple categories such as materials, heating and cooling, appliances, electrical systems, and weatherization; subject to approval by the Housing Specialists. The calculation of project costs must include any subsidies or financial assistance already received or anticipated. References to the application period are updated to reflect current practices. RECOMMENDED ACTION: By motion: Approve the recommended revisions to the Transformation Loan Program Guidelines. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The Transformation Loan Program provides a financial incentive to homeowners for initiating major remodeling of their homes to meet their housing needs. Major remodeling projects are defined as exceeding $50,000 in cost. These are eligible for an incentive loan equal to 15% of the project cost, not to exceed $25,000. The loan is a no-interest, no-payments loan that is due and payable when the homeowner sells their home or is forgiven after 30 years. The ADU Pilot Program was first approved in November 2019 and extended through 2021 and 2022. The ADU Pilot Program allowed a higher loan amount for qualifying ADU projects to offset costs which are often a barrier. Two A D U applications were received. One project withdrew their application, and one is currently under construction. A D Us offer homeowners the opportunity to either add rental income or provide housing for family members such as elderly parents, adult children, or those with disabilities needing extra care. I n addition, A D Us provide the community with more variety in housing stock and affordable rental options. Additionally, staff has been exploring ways to support energy efficiency and accessibility- related upgrades through the Transformation Loan Program. Similar to ADUs, energy efficiency and accessibility related projects can be cost prohibitive. In order to offset some of these costs, staff would like to offer additional incentives for projects meeting these City housing priorities For the 2023 Transformation Loan Program, six loans were approved. I n 2022, six loans were approved. Four of the projects were completed and two are wrapping up. B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): T he Comprehensive Plan calls for the rehabilitation and upgrade of the City's housing stock and specifically encourages use of the City's AD U ordinance to increase the number of housing units and expand housing options for extended families. The 2023-2026 Strategic Plan includes c limate resilienc y and equity and inc lusion as priority goals. Providing incentives for energy efficient and accessible home upgrades are in alignment with those goals. The targets of the City 's Climate Action Plan inc lude reducing high energy burden, inc reasing the use of renewable energy, and encouraging energy efficiency. The City's Zoning Ordinance allows for the construction of both A D Us and duplexes. C.C R IT IC AL T IMIN G IS S U E S: The A D U Pilot Program Guidelines were only extended through December 31, 2022. W hile there are no 2023 funds remaining for the Transformation Loan Program, staff would like to have the updated A D U Guidelines ready in preparation of 2024. Staff regularly receives inquiries about A D U resources. D.F IN AN C IAL IMPAC T: The Economic Development Authority (E D A) has currently budgeted $130,000 for the 2023 Transformation Loan Program. As part of the 2023 Revised and 2024 budget process, staff will likely consider an increase to the Transformation Loan Program budget to cover the cost of the new incentives. All 2023 loan funds have been committed. Design and construction of A D Us and duplexes, energy efficiency upgrades, and accessibility improvements can be cost-prohibitive. The revisions would allow higher loan amounts as an incentive for projects meeting City housing goals (A D Us, energy efficiency, and accessibility). E.L E GAL C ON S ID E R AT ION: The terms and conditions of the loan remain the same. A mortgage and promissory note is filed with Hennepin County to secure the lien. ALTE R N AT IV E R E C O MME N D ATIO N(S): The E D A may choose to not approve the recommended revisions to the Transformation Loan Program Guidelines. 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 Transformation L oan P rogram Guidelines- D raft B ackup Material TRANSFORMATION HOMES PROGRAM GUIDELINES FOR STAFF ADMINISTRATION REVISED: NOVEMBER 20172023 1 Table of Contents Page Number Table of Contents......................................................................................... 1 Statement of Purpose................................................................................... 2 Program Objectives...................................................................................... 2 Definitions..................................................................................................... 2 Data Privacy................................................................................................ 3 Criteria for Program Eligibility...................................................................... 3 Conditions of the Loan……………….………………..................................... 4 Eligible Improvements.................................................................................. 5 Application Procedure.................................................................................. 5 Hold Harmless.............................................................................................. 5 Remodeler Criteria....................................................................................... 6 Responsibility of Remodeler........................................................................ 6 Housing and Site Development Criteria.…………........................................ 6 Design Plan Review.................................................................................... 7 Forms/Exhibits............................................................................................. 8 2 TRANSFORMATION HOMES PROGRAM GUIDELINES The Transformation Homes Program Guidelines have been developed as a tool for guiding program administration. This document should not be interpreted as constituting any contractual agreement or liability by the City or EDA. Statement of Purpose To help improve and maintain an aging housing stock by providing financial and technical assistance to homeowners so they may make home improvements and undertake expansions to accommodate their housing needs. Program Objectives • To provide an incentive to homeowners or home buyers for initiating major remodeling on their homes to meet their housing needs. • To increase the function and livability of small or outdated Richfield homes. • To increase the range of housing options available to individuals and families who want to live or remain in Richfield. Definitions Accessory Dwelling Unit: A dwelling unit that is located on the same lot as a principal residential structure to which it is accessory, and that is subordinate in area to the principal dwelling. These may be attached to either the primary home or the garage, but cannot be freestanding and must meet all applicable zoning code requirements. Accessibility related improvements: Improvements designed to allow for aging in place and/or to accommodate those with limited mobility. Application Period: The set time period during which applications are accepted and reviewed when the alternate application process is being followed. Architectural Consultant: Individual architect or architecture firm that participates in the HRA’s Architectural Home Consultation program. Architects conduct an in-home meeting with the homeowners to discuss design of home remodeling projects. City: The City of Richfield Formatted: Font: (Default) Arial, 12 pt, Font color: Auto, Not Expanded by / Condensed by , Pattern: Clear Formatted: Font: Not Bold 3 Duplex: A residential building used for occupancy by two (2) families living independently of each other, where both units are situated on the same parcel of land. At least one unit must be owner-occupied in order to be eligible for the Richfield Rediscovered program EDA: Economic Development Authority in and for the City of Richfield HRA: Housing and Redevelopment Authority in and for the City of Richfield. Homebuyer: Loan applicant who is in the process of purchasing, remodeling and occupying a Richfield home. Homeowner: Loan applicant who owns and occupies or purchases and occupies the home to be remodeled. Lender: The primary lender working cooperatively with the EDA on home remodeling programs. Loan: Interest free loan offered by the EDA for remodeling payable upon sale of the house or forgiven after 30 years. Remodeler: A licensed builder or Remodeler who meets the criteria established by the EDA, including all state and local license requirements. Remodeling Advisor: Individual contracted with the HRA who meets with the homeowner to discuss ideas, estimate costs and answer questions. Energy Efficiency Improvements Home improvements that increase energy efficiency and reduce negative impacts on the environment. An energy audit must be completed and the results used to guide improvements. Data Privacy The EDA is subject to Minnesota Statutes Chapter 13 (the “Minnesota Government Data Practices Act”). Under the Minnesota Government Data Practices Act, the names and addresses of applicants for or recipients of assistance under this program and the amount of assistance received under this program are public data. All other financial information submitted to the EDA for purposes of the loan application is considered private data. Formatted: Font: Bold Formatted: Font: (Default) Arial, 12 pt, Font color: Auto, Not Expanded by / Condensed by , Pattern: Clear Formatted: Font: Not Bold Formatted: Font: Not Bold Formatted: Font: Bold 4 Criteria for Program Eligibility In order for a project to be eligible for a Transformation Homes Loan, certain conditions must be met. 1.Project costs for remodeling improvements must be $50,000 or more. The Transformation Loan will be calculated at 15% of the project cost as determined by the EDA, not to exceed $25,000. Projects that include energy efficiency improvements or accessibility improvements totaling at least $10,000 will be eligible for additional funding up to $2,500. Energy efficiency improvements must include items from multiple categories such as materials, heating and cooling, appliances, electrical systems, and weatherization; subject to approval by the Housing Specialists. Calculations of project costs must account for any additional subsidies or financial assistance already received or anticipated. For ADU or duplex projects, loan amount will be calculated at 20% of the eligible project costs, not to exceed $30,000. 2.The Homeowner shall provide a copy of the estimate and project specifications from the selected Remodeler for the work to be done. The Homeowner shall also submit house plans, a site plan, and any other reasonable information requested. 3.The Remodeler selected by the Homeowner shall be evaluated by the EDA to meet all remodeling criteria. 4.On a case by case basis, EDA staff may visit the applicant’s property and prepare an action plan to ensure viability of the project. 5.No work may have commenced on the proposed project if application is being made under the Transformation Homes Program. Nor may any completed work be considered. Conditions of the Loan 1.An applicant’s project cost must be a minimum of $50,000. All aspects of the project must be completed within a reasonable period of time such that all the work may be considered part of one project. 2.Sweat equity may be allowed. The estimated loan amount would be the combination of contractor and materials cost, but cannot include the value of homeowner labor. Sweat equity projects must be completed within one year. 3.For applicants obtaining mortgage financing, the full EDA Loan amount may be placed in an escrow account, if required by the Lender. The escrow account will be drawn upon in prorated increments, simultaneously as funds are drawn upon from the primary Loan to make payments to the Remodeler. Payment will be disbursed at the discretion of the Lender, upon satisfactory EDA verification of work in progress. Before the Loan payment can be provided to the Lender, the Homeowner must sign the Promissory Note, an example of which is attached as Exhibit B. 5 4.In cases where an escrow account is not used, the primary Lender may require a simultaneous closing with the EDA Loan at the time permanent financing is secured. In these cases, the EDA may commit funds and authorize a project to begin prior to closing on the Loan. No funds will be disbursed until closing has taken place. 5.In those situations where the Homeowner is not utilizing the services of a Lender, partial and/or final loan payments may be issued to the homeowner at or near the end of the project. Payments will be made upon EDA approval of homeowner submitted documentation which will include a detailed list of expenditures, supplier and contractor invoices or receipts, and lien waivers. 6.Before final payment is issued (by Lender or EDA), inspections will be required by both EDA staff and the City Building Inspector. Upon satisfactory verification of work in progress, or upon completion, payments will be disbursed at the discretion of the lender or the HRA. 7.Copies of lien waivers or supplier/contractor invoices for the full amount of the payment must be provided at the time of final disbursement. 8.Loan funds are available on a limited basis. The EDA is not responsible for the unavailability of Loan funds to Homeowner. 9.No interest will accrue on the Loan; no monthly payments are required. 10.Payment of the Loan must be made in full within 30 days upon the sale, conveyance, assignment, lease or transfer of the property. A Satisfaction of Mortgage in recordable form will be provided upon receipt of payment. The Loan may also be paid in full at any time. 11.If the Homeowner still owns and occupies the property, the lien created by the Loan will be forgiven 30 years from the loan date listed on the Promissory Note and recorded Mortgage. 12.The Loan is a lien against the property. If at any time during the term of the loan, the EDA is asked to subordinate its position, the HRA subordination policy in effect at the time of the subordination request will apply. Please consult the Richfield HRA Subordination and Satisfaction Policy, available at http://www.richfieldmn.gov/subordination or by calling 612/861-9778. 13.Only one Loan is available to a Homeowner at any given property location. A Homeowner may apply for one additional Loan at a different property location no sooner than seven years following the original Loan. Eligible Improvements Eligible improvements include: a.) Value-added improvements, such as: additions, finished basements, kitchen and bathroom remodels; 6 b.) Maintenance and repair, such as roof replacement, electrical or plumbing improvements, or cosmetic updating such as painting or wall-to-wall carpeting, when done in conjunction with value-added improvements; c.) Energy efficiency and accessibility related upgrades; when done in conjunction with value added improvements; d.) Accessory Dwelling Units; b.) Conversion of a single family home to an owner-occupied duplex; and c.)e.) Any other improvements as determined by the EDA. Non-eligible improvements include: a.) Swimming pools, hot tubs and greenhouses; b.) Decorative landscaping. Application Procedure 1.Meet with a remodeling advisor or an architectural consultant, if requested by the EDA. ADU and duplex projects will be required to meet with an architect, either through the city’s Architectural Consultation program or an architect of their choosing; 1.2. For ADU and duplex projects, applicants and their Remodeler will be required to meet with Planning and Inspections staff prior to submitting an application. 2.3. The Homeowner submits a complete application, which includes an application form, a copy of all bids demonstrating project costs, scopes of improvement, and plans, within the time frame established by the EDA. The dates of the Application Period will be determined and publicized by November 1 of each year. 3.4. An Application Fee is charged to cover the cost of administering the loan. The Application Fee is due at the time the application is submitted. The Fee will only be deposited if the Application is accepted for funding. 4.5. All applications submitted during the Application Period will be reviewed. In order to be entered into the lotteryconsidered for loan funds, the application must meet the following criteria: a.Completeness of application; b.Adherence to program guidelines; c.Design and function of the project, including the presence of any special or unique element that meets city goals (e.g. energy efficiency, accessibility, etc); d.Demonstrated financial readiness; e.Builder references (if applicable); f.In cases where the homeowner is doing part or all of the work, demonstrated evidence of experience and ability to complete the work within the required one- year time period, and g.Amount requested. 5.6. Once applications are verified to have met the above criteria, they will be approved on a first-come first serve basis. If funding is limited and more than one applicant submits their complete application on the same day, then a random lottery will be held to select applications for funding. Selected applicants will be notified of funding no later than three weeks following the submittal deadline. Formatted: Font: Arial, 12 pt 7 6.7. A commitment letter will be issued verifying the reservation of funds to be provided at closing. 7.8. If not pursuing a simultaneous closing, the homeowner will sign a mortgage and a promissory note agreeing to the terms of the loan. The mortgage filing fee and registration tax will be charge to the applicant. Following closing, work can begin on the project. 8.9. If a simultaneous closing with end-financing has been requested by the Lender, the homeowner may begin work once a commitment letter has been received, and building permits issued. 9.10. EDA staff may reject or accept an application at its sole discretion. If requests received during the Application Period do not exceed the available funding, applications will be accepted on a first-come, first-serve basis. Hold Harmless To the fullest extent permitted by law, the Homeowner must agree to defend, indemnify and hold harmless the EDA and the City of Richfield, their officers, agents and employees from and against all claims, loss, damage, costs and expense arising from bodily or personal injury or sickness, illness, or death of persons or damage to property resulting from or alleged to have resulted from the Remodeler’s work and operations. Remodeler Criteria The Remodeler should meet a minimum set of standards and perform certain requirements in order to participate in the program: 1.Meet any Lender requirements when the Homeowner is seeking Lender financing. 2.Provide adequate evidence of builder’s risk, comprehensive general liability and worker’s compensation insurance coverage. 3.Provide a written warranty policy to the Homeowner and Lender. 4.Provide State Building/Remodeling Contractor license number. 5.Provide the following references: •Five satisfied customers; •Three major suppliers or subcontractors; •Names of building officials from two cities where the Remodeler has worked in the last three years. Each Remodeler must fill out a Remodeler Form (Exhibit D). Responsibility of Remodeler 8 The Remodeler must perform work in accordance with the specifications and contract provided to the Homeowner. Any guarantee and/or warranties on the materials, supplies or quality of work must be obtained by the Homeowner. Lien waivers must be provided at time of payment. All property permits must be obtained per city code. NOTE: The City of Richfield has a Point of Sale ordinance that requires all residential properties pass a housing code inspection before sale. The EDA is not responsible for insuring compliance with this ordinance. Proper inspections should be arranged by the seller and any repairs made as part of the purchase/remodel process. Housing and Site Development Criteria The following requirements apply to all Transformation projects: 1.Each home shall be an owner-occupied detached single-family or two-family dwelling. Exceptions to this may be approved by the EDA. 2.At a minimum, off-street paved parking must be provided on the site in accordance with the zoning code. 3.Three and four bedroom homes as a result of remodeling are preferred. However, a minimum of two finished bedrooms and space for a third bedroom that could be easily finished will be acceptable. 4.Two full bathrooms as a result of remodeling are preferred. However, a minimum of one full bath and a 1/2 bath roughed in will be acceptable. 5.House design and appearance is a critical concern to the EDA. The house building lines, window placement, and orientation to street must present a balanced and pleasing view from all sides. Garage door dominance in design must be minimized. Blank walls without windows or doors are not allowed. Roof line variation will be reviewed. 6.If exterior work is included, exterior materials should be low maintenance. Masonite siding materials are not acceptable. 7.All landscaping and sod disturbed by the construction project must be repaired in a professional manner. 8.Adjoining properties must not be disturbed by the construction process. 9.Construction and the finished structure must improve or not have a detrimental impact on storm water drainage patterns in the neighborhood and on adjoining properties. Where roofs direct storm water toward minimum (five feet) side yards, gutters may be required as a condition of Loan payment. Design Plan Review 9 1.The EDA must be provided with a set of the building plans, including building elevations, and a copy of the land survey or site plan. 2.EDA staff will review the plans to ensure conformance with the Housing and Site Development Criteria. Plan review by the Building Official is a separate process. 3.All building plans must be prepared in consultation with an architect or a qualified draftsperson. 4.If any element of the plan is in conflict with the above criteria, the Remodeler will be notified. 5.Revised plans must be resubmitted for final approval. 6.All plan reviews will be completed by the EDA in a timely manner. Each plan submitted will be processed individually. 7.The EDA may refer a set of plans to the County Assessor to make a preliminary determination of value if there is concern about the extent of value added as a result of remodeling. 10 Forms/Exhibits A. Transformation Homes Application Form B. Promissory Note C. Mortgage Note D. Remodeler Form E. Summary of Costs and Loan Computation F. Letter of Commitment G.Satisfaction of Mortgage AGENDA SECTION:Consent Calendar AGENDA ITEM #2.B. STAFF REPORT NO. 7 ECONOMIC DEVELOPMENT AUTHORITY MEETING 6/20/2023 REPORT PREPARED BY: Lynnette Chambers, Multi-Family Housing Program Administrator OTHER DEPARTMENT REVIEW: EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director 6/13/2023 ITEM FOR COUNCIL CONSIDERATION: Amend the Kids @ Home Rental Assistance Program guidelines, expanding the service area to include the unincorporated territory of Fort Snelling. EXECUTIVE SUMMARY: On June 5, 2023, the Housing and Redevelopment Authority (HRA) authorized the issuance of housing revenue bonds for the benefit of the Upper Post Housing Flats development (Project), which is located in the unincorporated territory of Fort Snelling but is in the Richfield school district. In exchange for authorizing the bond issuance, Dominium, the Project's owner and developer, agreed to accept participants of the Economic Development Authority's (EDA) Kids @ Home Rental Assistance Program (Program). The Program currently serves working families with incomes at or below 60% of the Area Median Income (AMI) who live in Richfield and have a child who attends a Richfield school. Families with children who live in the unincorporated territory of Fort Snelling are in the Richfield School district but do not qualify for any local rental assistance from nearby local cities. An amendment to the Program guidelines would expand the service area to include eligible families living in the unincorporated territory of Fort Snelling, so that they would be able to take advantage of the Program, ensuring they would have an affordable rent and stable housing. In addition, current Kids @ Home families would be given an opportunity to relocate to this Project and still remain on the Program. RECOMMENDED ACTION: By motion: Approve an amendment to the Kids @ Home Rental Assistance Program guidelines to expand the service area to include the unincorporated territory of Fort Snelling. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The Kids @ Home Program was created in 2005 to provide housing stability to families with children in the Richfield schools. The Program provides rental assistance, along with supportive services, to participating families over a four-year period. On June 5, 2023, the Housing and Redevelopment Authority (HRA) authorized the issuance of conduit housing revenue bonds for the Upper Post Housing Flats development, requiring that the development provide deeper affordability, an upfront fee to the HRA, acceptance of Program families, and a limit on rent increases. B.POLICIES (resolutions, ordinances, regulations, statutes, etc): One of the primary goals of the Program is to facilitate academic success by providing housing stability for families attending Richfield schools. C.C R IT IC AL T IMIN G IS S U E S: The Program will open in September 2023 for applications. I f the Program is amended by this date, families living in the unincorporated territory of Fort Snelling would be able to apply for the Program this year. D.F IN AN C IAL IMPAC T: None. The Program sets a cap at the rental assistance provided annually and applications are only accepted when monies are available. E.L E GAL C ON S ID E R AT ION: N/A ALTE R N AT IV E R E C O MME N D ATIO N(S): Do not approve amending the Kids@Home Program guidelines. P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: AT TAC H ME N T S: D escription Type K ids@Home 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 or the unincorporated territory of Fort Snelling (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 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 Richfield Municipal Center located at 6700 Portland in Richfield. Families will be assigned to Group A or Group B (Group A meets the 2nd Thursday every month and Group B meets the third Thursday of eac h month).  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 05/15/2023 60% of Area Median Income (AMI) 50% of Area Median Income (AMI) Persons Income Limit Persons Income Limit 2 $59,600 2 $49,700 3 $67,100 3 $55,900 4 $74,500 4 $62,100 5 $80,500 5 $67,100 6 $86,500 6 $72,050 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 9/1/2023) – Families receive rent assistance based on the following flat payment. Each year rent assistance decreases, family’s responsibility will increase) Bedroom Size 1st Year 2nd Year 3rd Year 4th Year One $550 $500 $450 $350 Two $650 $600 $550 $450 Three $800 $750 $700 $600 Four/Five $900 $850 $800 $700 Program opening 10:00 a.m. Tuesday September 5, 20203 to 4:00 p.m. Friday September 29, 2023 on (webpage www.richfieldmn.gov.) Link to page https://www.richfieldmn.gov/departments/community_development/housing/rental_housing/kids_@_home.php Completed applications along with supporting documentation must be returned by 4:00 p.m. on Monday October 2, 2023. If we receive more applications than available spots, the computer will randomly select the application. (Applications not selected will be shredded) Families selected by lottery will be notified by e-mail on Monday October 9, 2023. Applicants who are chosen by lottery need to complete a formal application, supply additional documentation as required within a prescribed timeframe and attend a briefing in December prior to being approved for the program.