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HomeMy WebLinkAboutHousing & Redevelopment Authority - Minutes - 05/16/2023HOUSING AND REDEVELOPMENT AUTHORITY OTTERTAIL COUNTY -MINNESOTA The Otter Tail County HRA Board of Commissioners Met for a regular meeting on May 16, 2023 at 11 :45am At the Otter Tail County Government Services Center Board Members Present: Wayne Johnson, Chairperson Jeff Ackerson Kurt Mortenson Betty Murphy Absent Leland Rogness, Vice Chairperson Others Present: 500 W Fir Ave, Fergus Falls, MN Barbara Dacy, OTC HRA Executive Director Paula Grunewald, OTC HRA Administrative Assistant Tanya Westra, OTC HRA Project Manager Amy Baldwin, OTC CDA Director Tanya Bakken, Dalton City Clerk Via Teams Sarah Schake, OTC CDA Project Manager Julie Bakken, OTC HRA Accounting Specialist 1. CALL TO ORDER Chairperson Wayne Johnson called the meeting to order at 11 :45 am. 2. APPROVAL OF AGENDA Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 Motion made by Kurt Mortenson, second by Betty Murphy to approve the May 16, 2023 Agenda without changes. Motion passed unanimously. 3. APPROVAL OF CONSENT AGENDA ITEMS Resolution 239 Authorizing Execution Memorandum of Understanding Homework Starts with Home Program was pulled for brief discussion regarding services available to participants. Ms. Dacy stated MAHUBE-OTWA is responsible for providing specific services. Motion made by Betty Murphy, second by Kurt Mortenson to approve all items on the Consent Agenda. Motion passed unanimously. 4. NEW BUSINESS A. Resolution No. 240 Authorizing Reinvestment of Certificate of Deposit FM Bank HRA Director Dacy told the board that the OTC HRA has a Certificate of Deposit at FM Bank in the amount of $142,048. It is a 6-month CD with a 2.5% interest rate and will renew automatically June 1. Per Director Dacy's request, the renewal rate will increase to 4%. Motion made by Jeff Ackerson, second by Kurt Mortenson to approve. Motion passed unanimously. 218-998-8730 ® OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER @ ottertailcounty.gov LIVE YOUR best life HERE. B. Resolution No. 241 Adopting Amendment to the Admissions and Continued Occupancy Policy Director Dacy informed the Commissioners HUD has issued a final rule that creates new limitations on tenancy and program participation in Public Housing. She stated that an amendment to the Public Housing Admissions and Continued Occupancy Policy (ACOP) was needed prior to June 14, 2023. The new rule pertains to households whose incomes after admission increase to 120% AMI. Ms. Dacy stated that historically this has not been an issue. She stated the proposed resolution amends the existing policy according to Notice 2023-23 recently issued. She stated that if a family is identified as over income there will be a 24-month grace period and their assistance will terminate at that time. Additional changes to the ACOP are needed and will be presented to the board at a future meeting. Motion made by Betty Murphy, second by Jeff Ackerson to approve. Motion passed unanimously. C. Resolution No. 242 Calling for a Public Hearing Regarding the Otter Tail County Affordable Senior Housing Program Director Dacy requested a Public Hearing for the Otter Tail County Affordable Senior Housing Program. Minnesota Statues under Chapter 462C requires certain jurisdictions to conduct a public hearing prior to making or purchasing loans pursuant to section 462C.05 to finance multifamily housing developments. The hearing is scheduled for Monday, June 12, 8:00am. She recommended the approval of the resolution and to file the advertisement with the Daily Journal. Motion made by Kurt Mortenson, second by Betty Murphy to approve. Motion passed unanimously. Paula Grunewald, Administrative Assistant was requested to have the Public Hearing Notice handout available at the public hearing. 5. DISCUSSION 1. North Fields of Dalton Financing Ms. Dacy introduced Ms. Tanya Bakken, Dalton City Clerk, who was in attendance. Director Dacy discussed the benefits and risks of the proposed 6-unit affordable senior development on Court Street in Dalton. She stated that the key benefit is that it creates affordable units for seniors in smaller communities in the county. She stated that the risk is there is a small number of units, which means a mor "thin" proforma. She stated that there is considerable demand for this type of product, it creates new housing stock, and provides an opportunity where seniors can remain in the community where they called home. She stated that the development will require an annual allocation of the levy to pay for the annual debt service and for operating support, if needed. She suggested that the HRA should have an array of risk management strategies. She stated that the proposed development will be income restricted and have a minimum age of 55 according to state statute, and/or have a preference for Dalton residents. Ms. Dacy outlined the assumptions behind the revenues and expenses, noting that the pro forms is conservative. She stated that the potential sources of funds including the Housing Trust Fund and available HRA fund balance. She stated that the County Finance committee has reviewed a preliminary concept of a loan over a 20-year term at 2%. She stated that the total project cost would be approximately $1 .6 million, and the county loan would be for approximately half of that amount. She stated that construction is to start in late September with completion next spring. Ms. Dacy stated that this development can be viewed as a pilot project, with the opportunity for additional triplexes at various sites in other communities. She stated that Housing Infrastructure bonds could be a potential funding source for future developments. Chairperson, Wayne Johnson, reiterated that Dalton is a trial run and appreciated all the information and clarity the board has received. Pg.2 6. EXECUTIVE DIRECTOR REPORT A. Director Dacy reported that the audit has been completed but we have not received the results. She stated that a potential Audit Committee meeting may occur during the 2nd week of June. 8. The Annual PHA Plan and Capital Fund Program Public Hearing is scheduled for June 20, 2023. C. Minnesota Housing Funding program -Housing Infrastructure Bond Application is possible for July submission. D. Director Dacy attended a Poverty Simulation on May 10, and this event may be one that the Commissioners would like to attend. E. Reminder that the Special Meeting on Monday, June 12 at 8:00am will be held in the Dead Lake Room, Government Services Center. 7. GENERAL DISCUSSION -TOPICS BY COMMISSIONERS None. 8. ADJOURNMENT At 12:51 pm a motion was unanimously carried to adjourn the meeting. Kurt Mortenson/Secretary/Clerk Pg.3