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1994-51484 HRA RESOLUTION NO. 514 THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION RELATING TO RICHFIELD REDISCOVERED PROGRAM BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as followsa Section 1, Recitals. 1.01 ®n July 16, 1990 the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA°'), adopted a program known as Richfield Rediscovered (the "Program"). A mayor purpose of the Program was to make available larger single family housing units for owner occupants. 1.02 Pursuant to the Program, the HRA adopted the Richfield Redevelopment Project Plan and Tax Increment Financing Plans for Tax Yncrement Financing District A-1 and Tax Increment Financing District B-1 to assist financing of the redevelopment of properties within the Program. 1.03 By June, 1994 the HRA has used the Program to redevelop 27 single family sites with homes containing 3-4 bedrooms, 2-3 baths, a double car garage, and other.. desired amenities which are frequently unavailable or in short supply in Richfield. 1.04 Due to the success of the Program, the HRA has periodically amended the Project to include additional properties in tax increment financing districts. An amendment to be considered in June 1994 will establish Tax Yncrement Financing District A-3 and B-3 and further modify the project plan. Section 2. Program Guidelines. 2.01 In order to achieve the objectives of the Program, the HRA has adopted guidelines (the "Guidelines'°) for participation in the Program. The Guidelines are applicable to all properties eligible for inclusion in the Program and have been used in the 27 instances in which new single family homes have been developed under the Program. 2.02 The Guidelines, which are contained in the document entitled "Richfield Rediscovered Procedural Guidelines", regulate numerous aspects of the Program, including restricting homes to owner occupants. 2.03 The Guidelines require owner occupancy of all structures. 2.04 The Guidelines contain architectural standards and a procedure for project review by the HRA staff. HRA Resolution No. 514 Page 2 2.05 Hecause the Program involves a public subsidy in the price of the land, the HRA requires that the new structure meet a specified minimum market value and sometimes requires the developer to execute an assessment agreement. Section 3. Qther Programs. 3.01 The Program is only one of many programs operated by the HRA for the purpose of keeping and preserving the housing stock within the City and providing alternatives to persons who are residing or wish to reside within the community. The HRA, which is committed to nondiscrimination in every context, operates the following housing programs in addition to the Richfield Rediscovered Program: (a) Housing Assistance Program (Section 8). The HRA provides rental assistance to approximately 370 low income households, specifically those whose income is 50$ or less than median income in the Twin Cities. (b) Deferred Loan Housing Rehabilitation Program. The HRA has supported approximately 330 homeowners with lo~a iabc®mes by pr©vj diaag ia~t®r®st free loans in order to allow them to make housing repairs and improvements. (c) New Home Program. The HRA has provided approximately 25 opportunities for first time home buyers of moderate income to purchase a home within the city. The HRA acquires blighted properties, demolishes the structure and contracts with Hennepin Technical College to have students build new structures on the sites. (d) Affordable Homes Initiative/Habitat for Humanity. The HRA participates with Habitat for Humanity by contributing sites for use as single family owner- occupied properties at a price of $1.00 each. Two projects completed in 1993 represented a land write- down by the HRA of almost $90,000. (e) Richfield Rediscovered Remodeling Program. The HRA provides a package of technical and financial assistance so that homeowners may obtain the resources necessary to improve homes which are small and out-dated or lack the amenities which are commonly desired today. The HRA has worked with approximately 80 homeowners since late 1993. (f) Transformation Homes Program. The HRA assists homeowners in obtaining financing for large rehabilitation projects. In addition to the amount privately borrowed, the HRA lends up to 15~ of the remodeling contract amount to allow completion of the project. Resources are sufficient to assist 10 homeowners in 1994. HRA Resolution No. 514 Page 3 3.02 In addition to the programs listed in section 3.01, the HRA has participated in a number of specific projects of benefit to low and moderate income persons, including the following: (a) Sheridan Court is a 30-unit apartment project for developmentally disabled persons capable of independent living. This was a Section 8 project in which the HRA contributed $100,000 to assist in site acquisition and housing development. (b) Westminister Robert Will Housing consists of it units of housing for chronic mentally ill adults capable of independent living. The HRA facilitated the identification of a site and provided general support to the non-profit development team. (c) The Red Fox Run No. 1. The HRA acquired five blighted properties and sold the sites to a developer to provide five large family scattered site single family Section 8 rental homes. (d) Rae Drive townhomes. The HRA cleared several blighted homes and developed 10 townhomes for moderate income, first-time homeowners. Section 4. Development of 6625 Stevens Avenue. 4.01 HRA staff was approached in February 1994 by a real estate representative of America's Home Team, Inc./Home Associates (the "Developer") regarding the purchase of 6625 Stevens under the Program. In late April 1994, upon initial contact with the Developer, staff advised the Developer that the proposed use of the site for a facility for disabled adults was ineligible for participation in the Program because they did not propose for the house to be occupied by the owners. 4.02 The Developer is operating under an arrangement with the Minnesota Department of Human Services (the "DHS") for the purpose of locating single family living for disabled adults. DHS has pursued the matter and threatened to litigate the HRA's~refusal to allow the Developer to purchase the lot at the Program's subsidized rate. 4.03 The assistant attorney. general representing DHS in the matter has had frequent contact with the HRA's attorney and has expressed the belief that the HRA's failure to sell the property to the Developer is a violation of Minnesota Statutes; 245A.11 and 462.355, subd. 7. 4.04 The HRA attorney has expressed the opinion that neither cited statute requires the HRA to sell the property at a subsidized price to an entity which refuses to be bound by the Guidelines adopted by the HRA for the Program. HRA Resolution No. 514 Page 4 4.05 The Attorney General's office and DHS met on May 25, 1994 to plan their strategy regarding this matter. To date, the HRA has heard nothing further from either party. Section 5. Findings. 5.01 The HRA finds the Richfield Rediscovered Program is in the vital best interests of the City and reaffirms all Program Guidelines, including the requirement of home ownership. 5.02 The HRA declares its willingness to delete 6625 Stevens from the Program and to sell the property to the Developer at its market value of $45,000. 5.03 The HRA will continue to operate all its programs and projects in a nondiscriminatory manner and rejects the assertions by DHS and the office of the Attorney General that the Richfield Rediscovered Program or its administration by the HRA is in violation of state law. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,.Minnesota t 0th day of June, 1994. Thomas E. Harms, Chairperson [] Il