HomeMy WebLinkAboutHousing & Redevelopment Authority - Minutes - 12/08/2022OTTER TAIL COUNTY I HOUSING
The Otter Tail County HRA Board of Commissioners
Met for a regular meeting on December 8, 2022 at 2:30 pm
At the Otter Tail County Government Services Center
Board Members Present:
Wayne Johnson, Chairperson
John Lindquist
Kurt Mortenson
Betty Murphy
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
Amy Baldwin, OTC CDA Director
Tanya Westra, OTC HRA Project Manager
Julie Bakken, OTC HRA Accounting Specialist
Kevin Currie, OTC HRA Construction Specialist
Kris Vipond, OTC Assistant Finance Director, via Teams and in person
Clay Houselog, Weichert Realtors
1. CALL TO ORDER
Chairperson Johnson called the meeting to order at 2:33 p.m.
2. APPROVAL OF AGENDA
Government Services Center
500 West Fir Avenue
Fergus Falls, MN 56537
Motion made by Rogness, second by Mortenson to approve the revised December 8, 2022 Agenda to include 41
and to move Item 4H to the beginning of New Business. Motion passed unanimously.
3. APPROVAL OF CONSENT AGENDA ITEMS
Motion made by Rogness, second by Lindquist to approve the Consent Agenda. Motion passed unanimously.
4. NEW BUSINESS
H. Request by Steven Little to Forgive HRA Rehabilitation Loan; 409 2nd Street, Henning.
Tanya Westra, HRA Project Manager, stated that Mr. Little has requested that the HRA Board forgive the
remaining amount of a rehabilitation loan ($12,000) originally provided in 2019 to his mother, Ms. Bonita Little.
Ms. Little passed away in 2021 . Mr. Clay Houselog, realtor from Weichert Realtors, was present to answer
questions and represents Mr. Little. Ms. Westra stated that there is a pending offer to purchase the property, and
if the sale does not proceed, the property may go into foreclosure and the HRA may not receive anything because
it is in last position of recorded liens. Ms. Westra stated that there are four liens against the property from
Merchant Bank, First National Bank, the Fergus Falls HRA/City of Henning (Small City Development Program)
and the Otter Tail County HRA (the SCDP leverage loan). She stated that the Fergus Falls HRA authorized a
$2,000 reduction of its lien equivalent to one year, or 10% of the principal. Staff recommended that the Board
forgive one year of the loan, at an amount of $1 ,500 (10% of the principal).
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The Board discussed three options, including forgiving the entire loan, forgiving a portion, or deny the request for
forgiveness.
Motion made by Rogness, second by Mortenson to approve forgiveness of $1 ,500. Motion passed unanimously.
Public Housing Program:
i. Resolution No. 220 Resolution Approving Public Housing Budget.
Director Dacy explained that the Public Housing Budget must be submitted annually to the HUD Field Office.
Motion made by Lindquist second by Mortenson to approve Resolution No. 220. Motion passed unanimously.
ii. Resolution No. 221 Authorizing Awarding Multi-Peril Insurance Bid for Public Housing Program.
Director Dacy reported that one multi-peril insurance bid from State Farm Insurance was received for the
Public Housing Program. Motion made by Murphy, second by Lindquist to approve Resolution No. 221 . Motion
passed unanimously.
iii. Resolution No. 222 Authorizing Write Off of Certain Public Housing Expenses
Director Dacy reported that tenants moving out sometimes have unpaid rent and damages to the public
housing units. Ms. Dacy recommended writing off $3,183.03 will reduce the amount of "Tenant Account
Receivables". She noted however that this amount will be recovered through the Revenue Recapture
program. Motion made by Rogness, second by Mortenson to approve Resolution No. 222. Motion passed
unanimously.
B. Resolution No. 223 Authorizing Amendment to the Community Housing Investment Program Down
Payment Assistance. Director Dacy stated that changes are proposed to be made to the Down Payment
Assistance Program with an initial mortgage term of less than 15 years. Ms. Westra, HRA Project Manager,
stated that she has spoken with lenders and found that it is beneficial for some borrowers to access shorter term
loans. She stated that the policy is proposed to be amended; however, borrowers must have a 41 % debt to
income ratio. Motion made by Mortenson, second by Lindquist to approve Resolution No. 223. Motion passed
unanimously.
C. Resolution No. 224 Authorizing Application to Minnesota Cities Participation Program; Authorizing
Execution of Commitment Agreement with Minnesota Housing. Director Dacy reported that the HRA has
participated in the Minnesota Housing "Minnesota Cities Participation Program" (MCPP) for several years. She
stated that this item was scheduled for action on the Board agenda to memorialize the program in the record so
that moving forward there is a seamless transition to the CDA. She stated that the program is administered by
bankers and lenders in the local area. She stated that there is no cost to the HRA, although staff conducts
marketing activities when the program begins each year through the website. Motion made by Mortenson,
second by Murphy to approve Resolution No. 224. Motion passed unanimously.
D. Resolution No 225 Authorizing Execution of Entity Administrator Certificate for the Otter Tail County
Housing and Redevelopment Authority. Director Dacy said all entities receiving federal funding must have a
"UEI", Unique Entity Identifier (formerly the DUNS Number). Dacy said each entity must register in the System
for Awards Management ("SAM") to receive federal funds. SAM requires uploading a notarized letter formally
designating the Entity Administrator for the HRA. Motion made by Murphy, second by Rogness to approve
Resolution No. 225. Motion passed unanimously.
E. Resolution No. 226 Authorizing Execution of Independent Contractor Agreement. Director Dacy reported it
was necessary to secure professional services for projects for both HRA and CDA. Motion made by Rogness,
second by Mortenson to approve Resolution No. 226. Motion passed unanimously.
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F. Resolution No. 227 Resolution Approving 2023 Annual Budget. Director Dacy summarized the revenues
and expenditures proposed for 2023. Motion made by Murphy, second by Mortenson to approve Resolution
No. 227. Motion passed unanimously.
G. Resolution No. 228 Resolution Authorizing Procurement of Architectural Design and Engineering
Services North Fields of Dalton Senior Housing Project. Director Dacy requests the ability to execute
architectural and mechanical engineering service contracts after receiving responses to the Request For
Qualifications to keep on schedule with the North Fields of Dalton Senior Project. She stated that the maximum
amount would be $25,000 for both contract. Motion made by Lindquist, second by Mortenson to approve
Resolution No. 228. Motion passed unanimously.
41. Resolution No. 229 Resolution Authorizing Execution of Purchase Agreements for Hidden Meadows.
Director Dacy stated that in order to execute purchase agreements quickly she would like to have the Board
Chair and Vice Chair review the purchase agreement, with the recommendation of realtor and buyer eligibility,
and authorize execution. Motion made by Mortenson, second by Murphy to approve Resolution No. 229. Motion
passed unanimously.
5. DISCUSSION
A. North Fields of Dalton
Director Dacy discussed the input received from the Open House on December 5 in Dalton. She stated that
there were 12 attendees, and their preferences included a 2 bedroom unit (although there will be 1 bedroom
units included), one car garages with a larger width, 1 ½ bathrooms, and step in showers. Dacy stated there
are two options regarding age restrictions; a minimum age of 62 for all members of the household or one
member of the household must be 55. She stated that staff is seeking qualified mechanical engineers
regarding plan expertise for ground source heat pumps, backed up with batteries powered by solar panels.
Commissioner Rogness left the meeting at approximately 4:10 p.m.
B. Hidden Meadows Development Update.
Director Dacy showed photos as of Monday, December 5 regarding progress of construction. She provided an
overview of various cost control measures taken during the design phase and unique aspects of the project.
Director Dacy recommended that a policy be prepared for future initiatives, which may include incorporating
the Lake Region Builders Association into the competitive process, maintaining an ongoing list of interested
builders, amending the procurement policy based on the state's "best value" provisions, and continuing to use
design control approaches.
6. EXECUTIVE DIRECTOR REPORT
1 ). Annual conflict of interest forms for 2022 were distributed to all Commissioners for their signatures at the
beginning of the meeting
2). Dacy informed the Commissioners that a Performance Review needs to be scheduled for Executive Director
7. PRESENTATION -APPRECIATION FOR COMMISSIONER LINDQUIST
A "Thank You and Appreciation" letter was presented to Commissioner John Lindquist for his years of service with
the Otter Tail County HRA.
8. GENERAL DISCUSSION -TOPICS BY COMMISSIONERS
None.
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9. ADJOURNMENT
At 4:35 pm a motion was unanimously carried to adjourn the meeting.
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Kurt Mortenson/Secretary/Clerk
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