HomeMy WebLinkAboutHousing & Redevelopment Authority - Minutes - 09/19/2023HOUSING AND REDEVELOPMENT AUTHORITY
OTTERTAIL
COUNTY • MINNESOTA
The Otter Tail County HRA Board of Commissioners
Met for a regular meeting on September 19, 2023 at 11 :45am
At the Otter Tail County Government Services Center
Board Members Present:
Kurt Mortenson
Betty Murphy
Leland Rogness, Vice Chairperson
500 W Fir Ave, Fergus Falls, MN
Absent: Wayne Johnson, Chairperson and Jeff Ackerson
Others Present:
Barbara Dacy, OTC HRA Executive Director
Paula Grunewald, OTC HRA Administrative Assistant
Tanya Westra, OTC HRA Project Manager
Julie Bakken, OTC HRA Accounting Specialist
Amy Baldwin, OTC CDA Director
1. CALL TO ORDER
Chairperson Johnson called the meeting to order at 11 :47 am.
2. APPROVAL OF AGENDA
Government Services Center
500 West Fir Avenue
Fergus Falls. MN 56537
Motion made by Betty Murphy, second by Kurt Mortenson to approve the September 19, 2023 Agenda with no
changes needed. Motion passed unanimously.
3. APPROVAL OF CONSENT AGENDA ITEMS
Motion made by Kurt Mortenson, second by Betty Murphy to approve the Consent Agenda. Motion passed
unanimously.
4. NEW BUSINESS
Resolution 251 Adopting Revenue Cycle Cash Management and Program Funding Policy
Barbara Dacy, Otter Tail County HRA Executive Director described the "Revenue Cycle Cash Management and
Program Funding" policy. She stated that there are two important aspects for cash management, primarily
regarding the use of federal funds: 1) Funds cannot be transferred between Public Housing and Section 8; and 2)
transfers from the General Revolving fund to the federal programs is not permitted unless specifically
authorized by the program. She stated that the policy also includes monthly monitoring to determine if funds
should be invested. Motion made by Kurt Mortenson, second by Betty Murphy to approve. Motion passed
unanimously.
5. Discussion
A. North Fields of Dalton Update
Director Dacy stated that JBC Construction & Ohren Electric had submitted their estimates totaling $2,036,000 for
the two triplexes in the North Fields of Dalton development. She stated that originally the construction budget was
estimated at $1 ,500,000, including a contingency. Dacy stated that there would be no action taken today and staff
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will identify potential options for the future, including, but not limited to, including the development in a potential
2024 Housing Infrastructure Bond Application with other proposed triplexes. Ms. Westra stated that a letter will be
mailed to the people on the waiting list.
B. Statewide Local Housing Aid (SAHA)
Director Dacy stated that SAHA will be distributed to Minnesota's 87 counties, Tier 1 cities in Greater Minnesota
(populations over 10,000), and tribal governments. She stated that this aid must be spent within four years on
·qualifying projects", which include homeownership developments serving households with 115% AMI and rental
developments serving households with 80% AMI. She stated that qualifying projects also include production,
preservation, acquisition/rehabilitation, emergency rent assistance, gap financing, demolition, etc. She stated that
these allocations are in recognition of the lack of financial resources in the past and intended to add to existing
resources. She stated that Otter Tail County will receive $143,671 in December 2023 and then the same amount
again in 2024. She stated that the County Board will approve the use of these funds and must report annually to
state. She suggested that HRA discuss potential options at the October meeting and then transmit to the County
Board for discussion.
6. EXECUTIVE DIRECTOR REPORT
Director Dacy reported the following:
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If the North Fields of Dalton development moves ahead in the future, she recommends that the HRA form
a sole member Limited Liability Company (LLC) to limit liability to the assets of the development itself.
She also stated that as a LLC, the project is eligible for the Otter Tail County Housing Trust Fund.
Because the Otter Tail County HRA acts as the administrator of the Housing Trust Fund, she recommends
that the County Board adopt a resolution to "consent" to the allocation.
Local lenders have issued 5 ·start Up" (first time homebuyer) mortgages and 5 ·step Up" mortgages
issued to repeat homebuyers under the Minnesota Cities Participation Program.
The State Tax Credit Program is a new program where Minnesota taxpayers can receive an income tax
credit for making contributions to eligible affordable housing developments. She stated that the state
income tax liability can be reduced $.85 on each $1 .00.
Mitch Harry has been hired to be the new Project Manager .
7. GENERAL DISCUSSION -TOPICS BY COMMISSIONERS
Director Dacy let the commissioners know that on September 27 there's a session on "The Role of the
Commissioner in Performance Management" from 11 :30-1 :00 pm.
8. ADJOURNMENT
At 12:40 p.m. a motion was unanimously carried to adjourn the meeting.
Kurt Mortenson/Secretary/Clerk
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