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Housing & Redevelopment Authority - HRA-Packet-04-16-2024 Supporting Documents - 04/16/2024
OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY BOARD PACKET April 16, 2024 1 of 42 2 of 42 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN April 16, 2024 | 11:45am 1.Call Meeting to Order and Roll Call – Chairperson 2.Approval of Agenda 3. Consent Agenda A.Regular Board Meeting Minutes, March 19, 2024 B.Housing Choice Voucher Rental Assistance Program Report March 2024 C.Community Housing Investment Programs Report March 2024 D. Public Housing Program Report March 2024 E.Check Report March 2024 Reports 4. New Business A.Resolution No. 284 Adopting Amendment to Community Housing Investment Program Emergency Housing Repair Program Policy 5. Discussion A. Five-year Plan and Annual Plan B.Purchase and Development Agreement North Fields of Dalton – modifications 6. Executive Director Report 7. General Discussion – Topics by Commissioners 8. Adjourn 3 of 42 The Otter Tail County HRA Board of Commissioners Met for a regular meeting on March 19, 2024 at 11:45am At the Otter Tail County Government Services Center 515 W Fir Ave, Fergus Falls, MN Board Members Present: Wayne Johnson, Chairperson Kurt Mortenson Betty Murphy Leland Rogness, Vice Chairperson Absent - Jeff Ackerson Others Present: Amy Baldwin, OTC HRA Executive Director Tanya Westra, OTC HRA Housing Program Supervisor Julie Bakken, OTC HRA Accounting Specialist Paula Grunewald, OTC HRA Administrative Assistant 1. CALL TO ORDER Chairperson Wayne Johnson called the meeting to order at 11:46am. 2. APPROVAL OF AGENDA Motion made by Kurt Mortenson, second by Lee Rogness to approve the March 19, 2024 Agenda without changes. Motion passed unanimously. 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made by Lee Rogness, second by Kurt Mortenson to approve the Consent Agenda. Motion passed unanimously. 4. NEW BUSINESS A. Resolution No. 278 Approving a Purchase and Development Agreement With the City of Dalton Executive Director, Amy Baldwin stated that there will be a number of items related to the North Fields project that will be discussed. The Purchase and Development Agreement has been drafted with the City of Dalton for a purchase price of $1. Approval will be contingent on the Board of Commissioners approving financing assistance and use of 2023 State Affordable Housing Aid at its March 26 meeting. Motion made by Kurt Mortenson, second by Betty Murphy to approve. Motion passed unanimously. B. Resolution No. 279 Authorizing Execution of Project Financing Assistance Agreement with Otter Tail County Executive Director, Amy Baldwin presented the North Fields of Dalton Development Budget. The budget is in the amount of $1,664,221 which includes a project contingency of $180,000. The sources of funding includes County’s financing assistance, in the amount of $850,000, which will be repaid over 20 years at 2% interest. The annual payment amount will be $51,983.21 and repaid by a levy allocation. This financial assistance has been in discussion for the past 10 months. 4 of 42 OTTERTAIL COUNTY -MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 218-998-8730 @ OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER @ ottertailcounty.gov LIVE YOUR best life HERE. Pg. 2 The commissioners asked about having an excessive reserve and making prepayment to the County’s financing assistance as project revenue permits. Encumbered funds was discussed and that this would be an obligation for both HRA and the County Boards to be aware of during budget discussions into the future. Motion made by Lee Rogness, second by Kurt Mortenson to approve, subject to the County Board’s approval of the agreement on March 26, 2024. Motion passed unanimously. Additional discussion included: how revenue will be used for maintenance; that an annual budget be established; principal balance should be paid as soon as possible, and length of ownership. Executive Director, Amy Baldwin reported that based on the Affordable Housing Program that was approved last June the HRA must have ownership for 20 years to maintain term, state sources, local flexibility and affordable component. C. Resolution No. 280 Authorizing Transfer of Funds for North Fields of Dalton Executive Director, Amy Baldwin reported that she would like authorization to transfer $545,550 of HRA General Funds and $125,000 from the HRA Rent Rehab bank account for North Fields of Dalton. Motion made by Betty Murphy, second by Lee Rogness to approve. Motion passed unanimously. Commissioners asked what the balance is in Rent Rehab account. HRA Housing Program Supervisor, Tanya Westra, reported that there was approximately $320,000. D. Resolution No. 281 Authorizing Execution of Construction Contracts North Fields of Dalton Authorization is needed to provide prepared contracts to the four contractors. A follow-up from February’s Board Meeting, Housing Program Supervisor, Tanya Westra, presented a siding comparison between “vinyl” and “LP SmartSide with ExpertFinish” from Project Manager, Mitch Harry. After review of specifications and warranty, staff recommends the application of vinyl siding. The warranty is the same, but LP SmartSide would need to be painted every 5 to 10 years. The four accepted bids for the North Fields of Dalton project are: Modular Construction Northstar System $761,576 Onsite Carpentry Novelty Construction LLC $216,061 Excavating Leith Excavating $61,870 Concrete Novelty Construction LLC $157,510 Mechanical and Plumbing Novelty Construction LLC $115,519 Electrical Ohren Electric $59,800 Ohren Electric EV Charger wiring $400 Total construction base plus electric vehicle charger wiring $1,372,736 Motion made by Kurt Mortenson, second by Lee Rogness to approve, pending approval of financing by the Otter Tail County Board of Commissioners on March 26, 2024 and the Purchase and Development Agreement by the City of Dalton on April 2, 2024. Motion passed unanimously. E. Resolution No. 282 Authorizing Creation of North Fields of Dalton LLC Executive Director, Amy Baldwin requested the Board’s approval to create a Limited Liability Company (LLC). She stated that the name of this resolution should be changed to “Authorizing Creation of LLC to own and operate projects such as North Fields of Dalton as well as future HRA owned housing projects”. The Executive Director has discussed LLC’s with legal counsel. They suggested assigning the construction contract to the LLC as a means to create a liability shield during construction; the funds, provided by the County and the HRA to finance the project, should be transferred to LLC when there is an invoice to pay and not before; and the LLC should retain appropriate property and general commercial liability insurance. If authorized, staff would 5 of 42 --- Pg. 3 bring necessary documents to the Board at a future meeting for its consideration. Motion made by Betty Murphy, second by Kurt Mortenson to approve. Motion passed unanimously. F. Resolution No. 283 Committing Leverage Funds for the Pelican Rapids Small Cities Development Program Grant Application Project Manager, Mitch Harry, has been working with Pelican Rapids on SCDP applications. The full application due on April 17, 2024 will seek funds totaling $1,075,260. These monies will help to rehabilitate 17 owner occupied projects with a maximum of $25,000 each and 10 commercial projects with maximum of $40,000 each. Pelican Rapids has pledged in kind donations for staff time and waiving permit fees for both commercial and owner-occupied projects. Danielle at the city has done this type of work before. Historically, the HRA has budgeted $70,000 per year to this activity under the Residential Owner-Occupied Leverage Program. This year there would be (17) $7,000 maximum per household (Owner Occupied Projects = $119,000) with 0% interest, repaid at time of sale or refinance of existing mortgage and secured with a lien on the property. It is recommended that the Board commits to make available leverage funds not to exceed $119,000 over the duration of the Pelican Rapids Small Cities Development Program Grant (2024-2026). This commitment will allow the Executive Director to submit a letter of support with the full application. Tanya Westra, HRA Housing Program Supervisor, also noted that we would be closing SCDP in Battle Lake and Underwood. Motion made by Lee Rogness, second by Betty Murphy to approve. Motion passed unanimously. 5. EXECUTIVE DIRECTOR REPORT Executive Director, Amy Baldwin reported: We are monitoring legislative activity – MN NAHRO is monitoring a number of HRA related items. Barbara Dacy is on contract to help with support. Kevin Currie will be done in April. Staff is accessing what is needed from a capacity perspective going forward, particularly around property management as the HRA’s housing portfolio expands. 6. GENERAL DISCUSSION – TOPICS BY COMMISSIONERS For the North Fields of Dalton Project: Lee Rogness said he knows of a water/sewer contractor that he will reach out to contact Dalton’s City Clerk. Review of plumbing permits submitted to the State of MN are taking approximately 3 months. Construction to be completed by end of November 2024, and ready for occupancy shortly after. 7. ADJOURNMENT At 1:00 pm a motion was unanimously carried to adjourn the meeting. ________________________________________________________ ___________________ Secretary/Clerk Date 6 of 42 3/1/2024 4/1/2024 Difference 55,121.00$ 56,546.00$ $1,425.00 109 112 3 *HAP Transactions 53,629.00$ 54,929.00$ *Utility Reimbursements 1,492.00$ 1,617.00$ *HAP Adjustment *Utility Adjustment *Portability Tranactions (Out) *Portablilty Admin Fee (Paid) 3/30 4/1 New Admissions 3 End Participation 0 Shop Mode/ARS 0 Ports-Out Paid 0 0 Ports Out Pending 0 3 Ports In Pending 0 0 4/9/2024 Waiting List/To Date 28 Applications in Progress 19 Vouchers Issued 15 Vouchers "On the Strreet"0 ELI%76% Monthly Trend Report*Units Available Units Leased Leasing %Budget % Per Unit $ October 2023 144 94 67.4% 95.0% 426.53$ November 2023 144 94 67.2% 94.8% 428.43$ December 2023 144 98 67.2% 95.0% 452.82$ January 2024 144 100 67.9% 105.3% 496.01$ February 2024 144 108 72.2% 118.7% 510.61$ March 2024 144 109 73.4% 120.8% 505.69$ *Leasing % and Budget % based on cumulative activity during calendar year Per Unit $ is rolling three month average *Portability Utility Reimbursement *Hold Landlord Transaction OTC Section 8 Housing Choice Voucher Rental Assistance Program Summary of Actions March 31, 2024 Program Total Financial Transaction Paid This Month* UML (Unit Months Leased or # of Households) 7 of 42 &, OTTE:R 'TAIIL ~, COUNTY -MINNESOTA 218-998-8730 @ HOUSINIG ANID REDEVIEL.OPMIENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Go,v,e;rn mein,t Services Center 500 Wes:t Fir Avenue Fergus Falls. MN 56537 @ ottertailcounty.gov COMMUNITY HOUSING INVESTMENT PROGRAMS (CHIP) BOARD REPORT March 2024 Program Applications Approved Applications Denied Inspections Conducted Proceed to Work Issued Projects Complete Goal Program End Date Emergency Home Repair Program (EHRP) On‐Going Down Payment Assistance (DPA) On‐Going SCDP: Reuse 1 1 On‐Going Rent Rehab – RR On‐Going Affordable Rental Unit Construction ‐ ARUC On‐Going BATTLE LAKE 09/30/2024 SCDP: Commercial 6 2 1 1 8 SCDP: Homeowner 11 6 8 5 5 20 Residential Owner‐Occupied Leverage (ROHL) 4 4 3 UNDERWOOD 09/30/2024 SCDP: Homeowner 12 4 12 9 8 17 Residential Owner‐Occupied Leverage (ROHL) 5 5 4 8 of 42 218-998-8730 ® HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (!) EOU/\L HOUSING OPPORTUNITY @ ottertailcounty.gov PUBLIC HOUSING BOARD REPORT March 2024 Rents Payable $3,976 Rents Collected $3,976 Total Negative Rents $150 Negative Rents Paid $0 Late Fees Charged $76 Late Fees Collected $76 Number of Units Paying Flat/Ceiling Rent 0 Fiscal Year ELI 0% WAITING LIST as of 04/10/2024 Community 2 Bedroom 3 Bedroom 4 Bedroom Pelican Rapids 6 2 N/A Underwood 3 1 0 Henning 2 1 0 New York Mills 1 2 0 VACANCIES UNIT VACATED LEASE SIGNED 3 Bdrm ‐ Henning 08/14/2023 Unit work has been completed, working on 2 applicants for this unit. 4 Bdrm – New York Mills 01/31/2024 Request for Vacancy due to Modernization status has been approved by HUD dating 02/29/2024 – 09/30/2024. Repair & replacement work due to tenant caused damage will be completed using Capital Funds. 9 of 42 218-998-8730 ® HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (5) EOUl\l. HOUSING OPPORTUNITY @ ottertailcounty.gov Doc Num Voided Type Document Recipient 84 No DD Barbara Dacy LLC 85 No DD Betty Murphy 86 No DD Kurt A. Mortenson 87 No DD Wayne Johnson 1442 No CHK Kevin Currie 1443 No CHK Language Line Services Inc 1444 No CHK Mitch Harry 1445 No CHK City of Dalton 1446 No CHK Management Computer Services Inc Payments $4,939.42 $4,939.42 Count 4 5 9 End of Report $3,553.31 Total:$4,939.42 Project Summary Program - Project Deposits General Revolving (GR) - General Revolving $0.00 Total:$0.00 Type Summary Document Type Amount Direct Deposit (DD)$1,386.11 Check (CHK) Cleared: 7 $4,599.42 Uncleared: 2 $340.00 Total Payments: 9 $4,939.42 03/22/2024 Application Fee-North Fields No $200.00 03/22/2024 1099 Processing No $140.00 03/08/2024 Over the Phone Yes $5.40 03/08/2024 Mileage Reimb Feb 24 Yes $149.41 03/22/2024 Per Diem/Mileage March 24 Yes $102.47 03/08/2024 Feb 24 Consulting Services Yes $3,058.50 03/22/2024 Per Diem/Mileage March 24 Yes $102.47 03/22/2024 Per Diem/Mileage March 24 Yes $92.42 Payment Date Document Description Cleared Amount 03/22/2024 Services 3/6-15/24 Yes $1,088.75 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register General Revolving (GR) Posted Payments www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 4/3/2024 9:37:41 AM Printed by: Julie Bakken 10 of 42 25% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3610 Interest Income 3703/5353/3741/0054 567.09 1,639.95 6,000.00 (4,360.05)27% 3690 Other Revenue MISC 3,500.00 3,500.00 3690.01 SCDP Administration (DEED) - All Communities 12,050.00 50,000.00 (37,950.00)24% 3690.02 SCDP City/Grant Funds - All Communities 80,358.00 907,860.00 (827,502.00)9% 3690.99 Refunds & Reimbursements 1,168.40 1,780.40 20,000.00 (18,219.60)9% 3691 Levy Revenue 15,606.68 1,513,771.00 (1,498,164.32)1% 3693.03 CHIP FFHRA Rehab Repayments 3,287.00 3,287.00 3,287.00 3693.05 CHIP Rental Rehab Revolving Loan Payments 11,521.38 15,313.42 15,313.42 3699 Sale of Property 35,379.79 35,379.79 TOTAL INCOME 16,543.87 168,915.24 2,497,631.00 (2,328,715.76) EXPENSES 4130 Legal 15,000.00 15,000.00 0% 4140 Staff Training 300.00 9,000.00 8,700.00 3% 4150 Travel 149.41 282.74 1,500.00 1,217.26 19% 4170 Accounting 5,000.00 60,000.00 55,000.00 8% 4171 Audit 16,000.00 16,000.00 0% 4190 Other Administrative Expenses 35.40 1,000.00 964.60 4% 4190.01 Manuals, Subscriptions 1,000.00 1,000.00 0% 4190.02 Office Supplies 74.43 1,700.00 1,625.57 4% 4190.03 Postage 304.68 2,500.00 2,195.32 12% 4190.04 Telephone & Internet 300.00 300.00 0% 4190.05 Dues 926.20 1,500.00 573.80 62% 4190.06 Advertising 2,000.00 2,000.00 0% 4190.08 Consulting Fees 5.40 14.85 85,000.00 84,985.15 0% 4190.2 Management Fees-OTC Admin 31,147.86 459,350.00 428,202.14 7% 4190.21 Management Fees-Administrator Contract 1,088.75 1,088.75 (1,088.75) 4190.22 Management Fees - Construction Consultant 3,058.50 7,160.61 65,000.00 57,839.39 11% 4210 Board Member Payments 297.36 1,056.82 4,000.00 2,943.18 26% 4430.1 Misc Contracts - Software 140.00 6,680.00 7,700.00 1,020.00 87% 4510 Insurance 15,027.64 47,000.00 31,972.36 32% 4521 Assessments 80.00 80.00 0% 4570 Housing Choice Voucher Operating Support 30,000.00 30,000.00 0% 4580 Public Housing Operating Support 20,000.00 20,000.00 0% 4590.02 SCDP Lead Based Paint Testing 675.00 (675.00) 4590.03 SCDP Construction (DEED)907,860.00 907,860.00 0% 4590.04 SCDP Recording Fees 92.00 (92.00) 4590.05 SCDP General Expense - Leverage 209,110.00 209,110.00 0% 4591.01 MHFA Administration/Overrun (750.00) 4592.01 HOP Demolition/Site Clearance 45,000.00 45,000.00 0% 4593.02 CAP Property Acquisition 25,000.00 25,000.00 0% 4593.03 CAP Consulting Fees 10,000.00 10,000.00 0% 4593.04 CAP Architect/Engineering 45,000.00 45,000.00 0% 4593.05 CAP Legal Fees 5,000.00 5,000.00 0% 4593.06 CAP Affordable Senior Housing Program Leverage 131,031.00 131,031.00 0% 4594 CHIP Down Payment Assistance 55,000.00 55,000.00 0% 4595.01 CHIP Emergency Housing Repair Program (EHRP)46.00 45,000.00 44,954.00 0% 4595.02 CHIP Res Owner Occupied Housing Leverage (ROHL)92.00 70,000.00 69,908.00 0% 4595.04 CHIP Affordable Rental Unit Constr (ARUC) Program 70,000.00 70,000.00 0% 4596.50 CWIP Pre-Development Expense 200.00 200.00 (200.00) TOTAL EXPENSES 4,189.42 70,204.98 2,447,631.00 2,377,426.02 3% SURPLUS 12,354.45 98,710.26 50,000.00 48,710.26 197% Otter Tail County Housing Redevelopment Authority Operating Statement Three Months Ending 03/31/2024 Program: General Revolving (GR) Project: Consolidated Percent of Year www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 4/3/2024 8:51:35 AM Printed by: Julie Bakken 11 of 42 Period Amount Balance ASSETS 1111 Cash 765.00 1,806,934.41 1111.1 Certificates of Deposit 145,763.96 1111.2 Cash MHFA Loan Acct #0054 0.52 4,085.15 1111.4 Committed for Housing Trust Fund 542,835.00 1113 Cash Rental Rehab 11,588.93 322,421.35 1130.1 Loan Receivable-Rental Rehab 112,295.99 1130.2 Loan Receivable-Down Payment Assistance 79,238.00 1130.3 Loan Receivable-Tax Levy Rehab Provision 268,804.14 1130.4 Loan Receivable-Homeowner Rehab 337,957.94 1130.9 Loan Allowance (606,762.08) 1400.12 Assets Held for Resale 1,051,541.58 1400.5 Accumulated Depreciation (3,487.25) 1400.9 Furn/Equip/Mach - Admin 9,657.00 TOTAL ASSETS 12,354.45 4,071,285.19 LIABILITIES AND SURPLUS LIABILITIES TOTAL LIABILITIES SURPLUS 2700 Income/Expense Clearing Account 420,948.43 2806 Unrestricted Net Position 3,551,626.50 2806 Unrestricted Net Position (Current Year) 12,354.45 98,710.26 TOTAL SURPLUS 12,354.45 4,071,285.19 TOTAL LIABILITIES AND SURPLUS 12,354.45 4,071,285.19 Otter Tail County Housing Redevelopment Authority Balance Sheet March 2024 Program: General Revolving (GR) Project: Consolidated www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 4/3/2024 8:51:35 AM Printed by: Julie Bakken 12 of 42 Doc Num Voided Type 810 No DD 811 No DD 812 No DD 813 No DD 814 No DD 815 No DD 816 No DD 817 No DD 818 No DD 819 No DD 820 No DD 821 No DD 822 No DD 823 No DD 824 No DD 825 No DD 826 No DD 827 No DD 828 No DD 829 No DD 830 No DD 831 No DD 832 No DD 833 No DD 834 No DD 835 No DD 836 No DD 837 No DD 838 No DD 839 No DD 840 No DD 841 No DD 842 No DD 843 No DD 844 No DD 845 No DD 846 No DD 847 No DD 848 No DD 849 No DD 850 No DD 851 No DD 852 No DD 853 No DD 6234 No CHK 6235 No CHK 6236 No CHK 6237 No CHK 6238 No CHK 6239 No CHK 6240 No CHK 6241 No CHK03/01/2024 HAP Payment Mar 24 Yes $349.00 03/01/2024 HAP Payment Mar 24 Yes $952.00 03/01/2024 HAP Payment Mar 24 No $461.00 03/01/2024 HAP Payment Mar 24 Yes $1,479.00 03/01/2024 HAP Payment Mar 24 Yes $357.00 03/01/2024 HAP Payment Mar 24 Yes $1,285.00 03/01/2024 HAP Payment Mar 24 Yes $1,045.00 03/01/2024 HAP Payment Mar 24 Yes $278.00 03/01/2024 HAP Payment Mar 24 Yes $225.00 03/01/2024 HAP Payment Mar 24 Yes $637.00 03/01/2024 HAP Payment Mar 24 Yes $2,209.00 03/01/2024 HAP Payment Mar 24 Yes $750.00 03/01/2024 HAP Payment Mar 24 Yes $316.00 03/01/2024 HAP Payment Mar 24 Yes $618.00 03/01/2024 HAP Payment Mar 24 Yes $1,152.00 03/01/2024 HAP Payment Mar 24 Yes $1,969.00 03/01/2024 HAP Payment Mar 24 Yes $294.00 03/01/2024 HAP Payment Mar 24 Yes $381.00 03/01/2024 HAP Payment Mar 24 Yes $250.00 03/01/2024 HAP Payment Mar 24 Yes $385.00 03/01/2024 HAP Payment Mar 24 Yes $496.00 03/01/2024 HAP Payment Mar 24 Yes $188.00 03/01/2024 HAP Payment Mar 24 Yes $517.00 03/01/2024 HAP Payment Mar 24 Yes $672.00 03/01/2024 HAP Payment Mar 24 Yes $324.00 03/01/2024 HAP Payment Mar 24 Yes $804.00 03/01/2024 HAP Payment Mar 24 Yes $357.00 03/01/2024 HAP Payment Mar 24 Yes $3,867.00 03/01/2024 HAP Payment Mar 24 Yes $403.00 03/01/2024 HAP Payment Mar 24 Yes $493.00 03/01/2024 HAP Payment Mar 24 Yes $391.00 03/01/2024 HAP Payment Mar 24 Yes $1,080.00 03/01/2024 HAP Payment Mar 24 Yes $267.00 03/01/2024 HAP Payment Mar 24 Yes $6,531.00 03/01/2024 HAP Payment Mar 24 Yes $678.00 03/01/2024 HAP Payment Mar 24 Yes $145.00 03/01/2024 HAP Payment Mar 24 Yes $565.00 03/01/2024 HAP Payment Mar 24 Yes $550.00 03/01/2024 HAP Payment Mar 24 Yes $809.00 03/01/2024 HAP Payment Mar 24 Yes $450.00 03/01/2024 HAP Payment Mar 24 Yes $1,033.00 03/01/2024 HAP Payment Mar 24 Yes $942.00 03/01/2024 HAP Payment Mar 24 Yes $625.00 03/01/2024 HAP Payment Mar 24 Yes $1,025.00 03/01/2024 HAP Payment Mar 24 Yes $7,589.00 03/01/2024 HAP Payment Mar 24 Yes $400.00 03/01/2024 HAP Payment Mar 24 Yes $345.00 03/01/2024 HAP Payment Mar 24 Yes $700.00 03/01/2024 HAP Payment Mar 24 Yes $439.00 03/01/2024 HAP Payment Mar 24 Yes $301.00 03/01/2024 HAP Payment Mar 24 Yes $327.00 Payment Date Document Description Cleared Amount 03/01/2024 HAP Payment Mar 24 Yes $529.00 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers Posted Payments www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 2 4/3/2024 9:41:33 AM Printed by: Julie Bakken 13 of 42 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers 6242 No CHK 6243 No CHK 6244 No CHK 6245 No CHK 6246 No CHK 6247 No CHK 6248 No CHK 6249 No CHK 6250 No CHK 6251 No CHK 6252 No CHK 6253 No CHK 6254 No CHK 6255 No CHK 6256 No CHK 6257 No CHK 6258 No CHK 6259 No CHK 6260 No CHK 6261 No CHK 6262 No CHK 6263 No CHK 6264 No CHK 6265 No CHK Doc Num Voided Type 29129380277 No MO 40220541922607 No MO Payments $55,599.00 $55,599.00 Count 44 32 2 78 End of Report $12,518.00 Money Order (MO)$148.00 Total:$55,747.00 Project Summary Program - Project Deposits Housing Choice Vouchers - $148.00 Total:$148.00 Type Summary Document Type Amount Direct Deposit (DD)$43,081.00 Check (CHK) Cleared: 2 $148.00 Uncleared: 0 $0.00 Total Deposits: 2 $148.00 03/07/2024 Payment - Money Order Yes $73.00 03/15/2024 Payment - Money Order Yes $75.00 Posted Deposits Control Date Document Description Cleared Amount 03/08/2024 Model Admin Plan Digital Revision Service 5/1/24-4/30/25 Yes $478.00 Cleared: 75 $55,138.00 Uncleared: 1 $461.00 Total Payments: 76 $55,599.00 03/01/2024 HAP Util Payment Mar 24 Yes $34.00 03/01/2024 HAP Util Payment Mar 24 Yes $49.00 03/01/2024 HAP Util Payment Mar 24 Yes $103.00 03/01/2024 HAP Util Payment Mar 24 Yes $50.00 03/01/2024 HAP Util Payment Mar 24 Yes $36.00 03/01/2024 HAP Util Payment Mar 24 Yes $169.00 03/01/2024 HAP Util Payment Mar 24 Yes $84.00 03/01/2024 HAP Util Payment Mar 24 Yes $77.00 03/01/2024 HAP Util Payment Mar 24 Yes $12.00 03/01/2024 HAP Util Payment Mar 24 Yes $186.00 03/01/2024 HAP Util Payment Mar 24 Yes $37.00 03/01/2024 HAP Util Payment Mar 24 Yes $52.00 03/01/2024 HAP Util Payment Mar 24 Yes $108.00 03/01/2024 HAP Util Payment Mar 24 Yes $120.00 03/01/2024 HAP Util Payment Mar 24 Yes $74.00 03/01/2024 HAP Util Payment Mar 24 Yes $35.00 03/01/2024 HAP Util Payment Mar 24 Yes $138.00 03/01/2024 HAP Util Payment Mar 24 Yes $61.00 03/01/2024 HAP Payment Mar 24 Yes $2,666.00 03/01/2024 HAP Util Payment Mar 24 Yes $67.00 03/01/2024 HAP Payment Mar 24 Yes $735.00 03/01/2024 HAP Payment Mar 24 Yes $327.00 03/01/2024 HAP Payment Mar 24 Yes $667.00 www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 2 of 2 4/3/2024 9:41:33 AM Printed by: Julie Bakken 14 of 42 25% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rent HAP Repayment (148.00)6,341.00 1,776.00 4,565.00 357% 3301 Admin Subsidy 12,890.00 25,890.00 77,347.00 (51,457.00)33% 3301.1 HAP Subsidy 104,356.00 188,268.00 493,508.00 (305,240.00)38% 3450 Fraud Recovery - Admin 50%74.00 259.50 259.50 3450.1 Fraud Recovery - HAP 50%74.00 259.50 259.50 3610 Investment Income (0062)11.64 31.07 120.00 (88.93)26% 3690.1 Other Revenue HAP 30,000.00 (30,000.00)0% TOTAL INCOME 117,257.64 221,049.07 602,751.00 (381,701.93)37% EXPENSES 4150 Travel 600.00 600.00 0% 4190 Other Admin Expenses (Apps, Service Charges)33.00 400.00 367.00 8% 4190.01 Manuals, Subscriptions 478.00 478.00 500.00 22.00 96% 4190.08 Consulting Fees 1,945.00 1,945.00 0% 4190.2 Management Fees-OTC 6,478.00 91,887.00 85,409.00 7% 4715.1 HAP Occupied Units 55,121.00 159,098.00 474,401.00 315,303.00 34% 4715.P HAP-Portability Out (819.00)23,500.00 24,319.00 -3% 4716.P Port Out Admin Fee (48.75)1,200.00 1,248.75 -4% TOTAL EXPENSES 55,599.00 165,219.25 594,433.00 429,213.75 28% SURPLUS 61,658.64 55,829.82 8,318.00 47,511.82 671% Otter Tail County Housing Redevelopment Authority Operating Statement Three Months Ending 03/31/2024 Program: Housing Choice Vouchers Project: Consolidated Percent of Year www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 4/3/2024 9:15:04 AM Printed by: Julie Bakken 15 of 42 Period Amount Balance ASSETS 1111 Cash Unrestricted 61,806.64 107,785.65 1121 Fraud A/R (148.00)2,105.00 1129 A/R Tenants 4,236.00 TOTAL ASSETS 61,658.64 114,126.65 LIABILITIES AND SURPLUS LIABILITIES TOTAL LIABILITIES SURPLUS 2700 Inc & Exp Clearing 4,078.69 2805 Restricted Net Position 18,225.24 2805 Restricted Net Position (Current Year) 49,309.00 30,248.50 2806 Unrestricted Position 35,992.90 2806 Unrestricted Position (Current Year) 12,349.64 25,581.32 TOTAL SURPLUS 61,658.64 114,126.65 TOTAL LIABILITIES AND SURPLUS 61,658.64 114,126.65 Otter Tail County Housing Redevelopment Authority Balance Sheet March 2024 Program: Housing Choice Vouchers Project: Consolidated www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 4/3/2024 9:15:04 AM Printed by: Julie Bakken 16 of 42 Doc Num Voided Type #01-00000621-00-0 Feb 24 No INV #01-00041004-00-6 Feb 24 No INV #01-00041101-00-0 Feb 24 No INV #01-00041152-00-6 Feb 24 No INV 7346 No CHK 7347 No CHK 7348 No CHK 7349 No CHK 7350 No CHK 7351 No CHK Doc Num Voided Type 1066 No CHK 1232 No CHK 1236 No CHK 1323 No CHK 1324 No CHK 2833 No CHK 3676 No CHK 027253 No MO 82533511 No CHK 28985313273 No CHK 29262672742 No MO 29280164602 No MO 2985314847 No MO Int. Security Deposi No DI Payments $4,734.13 $4,734.13 Count 4 15 4 1 24Total:$10,578.34 End of Report $7,664.97 Money Order (MO)$1,760.00 PH Deposit Interest (DI)$0.83 Project Summary Program - Project Deposits Public Housing - Family $5,844.21 Total:$5,844.21 Type Summary Document Type Amount Invoice (INV)$1,152.54 Check (CHK) Cleared: 11 $4,924.23 Uncleared: 3 $919.98 Total Deposits: 14 $5,844.21 03/04/2024 Payment - Money Order Yes $800.00 03/15/2024 Security Deposit Interest No $0.83 03/08/2024 Payment - Money Order Yes $450.00 03/18/2024 Payment - Money Order Yes $200.00 03/04/2024 Payment - Check Yes $314.00 03/04/2024 Payment - Check Yes $150.00 03/22/2024 Payment - Check No $245.00 03/04/2024 Payment - Money Order Yes $310.00 03/18/2024 Payment - Check Yes $274.95 03/04/2024 Payment - Check Yes $1,000.00 03/18/2024 Payment - Check Yes $211.86 03/04/2024 Payment - Check Yes $634.47 03/22/2024 Payment - Check No $674.15 03/04/2024 Payment - Check Yes $578.95 Posted Deposits Control Date Document Description Cleared Amount 03/22/2024 Acct #1321 Inspection No $100.00 Cleared: 8 $3,637.50 Uncleared: 2 $1,096.63 Total Payments: 10 $4,734.13 03/22/2024 Solar Salt Yes $21.80 03/22/2024 Maintenance Materials No $996.63 03/08/2024 Mileage Reimb Feb 24 Yes $52.26 03/08/2024 Water, Gas, Sewer Yes $602.56 03/01/2024 Water, Electric, Gas, Sewer Yes $326.01 03/08/2024 Fix Up Bathroom Supplies Yes $1,808.34 03/01/2024 Water, Electric, Gas, Sewer Yes $250.00 03/01/2024 Water, Electric, Gas, Sewer Yes $258.85 Payment Date Document Description Cleared Amount 03/01/2024 Water, Electric, Gas, Sewer Yes $317.68 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Public Housing Posted Payments www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 4/3/2024 9:47:19 AM Printed by: Julie Bakken 17 of 42 25% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rental 3,826.00 10,909.00 32,000.00 (21,091.00)34% 3401.1 HUD Operating Subsidy 3,060.50 11,001.50 45,000.00 (33,998.50)24% 3401.2 HUD Capital Funds-Operations/Admin 157.00 7,000.00 (6,843.00)2% 3401.3 HUD Capital Funds-Project 1,691.12 1,691.12 33,000.00 (31,308.88)5% 3610 Interest Income (5673/0070)24.55 84.16 200.00 (115.84)42% 3690 Other Income (NSF, Late Fee, GR Support)478.60 502.60 21,000.00 (20,497.40)2% 3690.1 Water Charge Income 631.74 1,708.70 6,300.00 (4,591.30)27% 3690.2 Electric Charge Income 1,334.81 2,320.00 12,000.00 (9,680.00)19% 3690.3 Gas Charge Income 828.13 2,907.73 11,000.00 (8,092.27)26% 3690.31 Sewer Charge Income 686.75 1,965.37 7,350.00 (5,384.63)27% 3690.4 Other Tenant Charges (Maint)355.96 355.96 355.96 TOTAL INCOME 12,918.16 33,603.14 174,850.00 (141,246.86) EXPENSES 4130 Legal 8,443.50 750.00 (7,693.50)1126% 4140 Staff Training 2,000.00 2,000.00 0% 4150 Travel 52.26 97.46 500.00 402.54 19% 4171 Audit 2,200.00 2,200.00 0% 4190 Other Admin Expenses (Reports, Apps)200.00 200.00 0% 4190.01 Manuals, Subscriptions 500.00 500.00 0% 4190.06 Advertising 200.00 200.00 0% 4190.08 Consulting Fees 1,950.00 1,950.00 0% 4190.2 Management Fees-OTC 7,770.65 25,000.00 17,229.35 31% 4310 Water 666.65 1,345.11 6,400.00 5,054.89 21% 4320 Electric 843.54 1,654.58 12,250.00 10,595.42 14% 4330 Gas 905.58 2,123.54 11,500.00 9,376.46 18% 4331 Sewer 777.20 1,546.30 7,500.00 5,953.70 21% 4400 Maintenance - Tools & Equip 500.00 500.00 0% 4420 Maintenance - Materials 1,113.85 6,050.22 5,500.00 (550.22)110% 4430 Maintenance - Contracts 121.80 678.08 15,000.00 14,321.92 5% 4431 Garbage and Trash Removal Contracts 500.00 500.00 0% 4510 Insurance 26,073.17 25,000.00 (1,073.17)104% 4520 PILOT (3,394.75)3,900.00 7,294.75 -87% 4521 Assessments 1,400.00 1,400.00 0% 4570 Collection Loss 500.00 500.00 0% 4580 Interest Expense (on Security Deposits)300.00 300.00 0% 4600 Capital Fund Projects 1,691.12 1,691.12 33,000.00 31,308.88 5% 4610 Extraordinary Maintenance 3,500.00 3,500.00 0% TOTAL EXPENSES 6,172.00 54,078.98 160,050.00 105,971.02 34% SURPLUS 6,746.16 (20,475.84)14,800.00 (35,275.84)-138% Otter Tail County Housing Redevelopment Authority Operating Statement Three Months Ending 03/31/2024 Program: Public Housing Project: Consolidated Percent of Year www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 4/3/2024 9:28:13 AM Printed by: Julie Bakken 18 of 42 Period Amount Balance ASSETS 1111 Cash 1,758.60 105,284.59 1114 Tenant Security Deposit Cash 0.83 9,174.33 1122 A/R Tenants 1,771.32 4,944.13 1122.1 Allowance for Doubtful Accts (200.00) 1400.5 Accumulated Depreciation (1,112,431.70) 1400.6 Land 32,990.31 1400.7 Buildings 1,661,869.49 TOTAL ASSETS 3,530.75 701,631.15 LIABILITIES AND SURPLUS LIABILITIES 2114 Tenant Security Deposits (530.42)8,643.08 2119 Accounts Payable (418.66) 2119.1 A/P Admin 418.66 2240 Tenants Prepaid Rent (2,684.99)39.00 TOTAL LIABILITIES (3,215.41)8,682.08 SURPLUS 2700 Income/Expense Clearing Account (59,196.97) 2700 Income/Expense Clearing Account (Current Year) 6,746.16 (20,475.84) 2700 Income/Expense Clearing Account (Unclosed 2022) 0.01 2802 Invested in Capital Assets, Net of Related Debt 679,466.94 2806 Unrestricted Net Position 93,154.93 TOTAL SURPLUS 6,746.16 692,949.07 TOTAL LIABILITIES AND SURPLUS 3,530.75 701,631.15 Otter Tail County Housing Redevelopment Authority Balance Sheet March 2024 Program: Public Housing Project: Consolidated www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 4/3/2024 9:28:12 AM Printed by: Julie Bakken 19 of 42 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _April 16, 2024__ BOARD MEETING DATE AGENDA ITEM #4A Community Housing Improvement Program, Emergency Housing Repair Programs ORIGINATING DEPARTMENT/SERVICE Tanya Westra 04/10/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 284 Adopting Amendment to Community Housing Investment Program Emergency Housing Repair Program Policy PROPOSED REQUEST/JUSTIFICATION Emergency Housing Repair Program Recommended Changes The HRA has identified additional rehabilitation activity that could address critical health and safety needs not outlined in the current program guidelines. Unique situations arise from time to time that are in fact dangerous to the family residing in the home, but do not fit into the current program guidelines. Rather than bringing each activity to the Board of Commissioners for consideration, it is proposed that HRA Staff have the flexibility to approve an activity if it is deemed to be of a critical health or safety nature. Examples include, but are not limited to: Nitrates & other contaminants identified in well water. Lead based paint mitigation in a home where a child has tested positive for high levels of lead. In cases where test results will be relied upon to verify high levels of toxins and/or contaminants, the applicant will need to provide third party test results with their application. These cases will go through an internal process by which the Housing Program Supervisor or Executive Director will review the applicant’s request and confirm the Project Manager’s determination of being a critical health or safety rehabilitation activity. Exhibit A to the resolution shows current policy along with proposed changes. Staff recommends approval of the resolution adopting a modification to the policy. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 04/10/2024 ATTACHMENT LIST: Resolution No. 284 Emergency Housing Repair Program (Exhibit A) Policy Changes FINANCIAL IMPLICATIONS: TBD BUDGETED: X YES NO FUNDING: Tax Levy COMMENTS 20 of 42 RESOLUTION NO. 284 RESOLUTION ADOPTING AN AMENDMENT TO COMMUNITY HOUSING IMPROVEMENT PROGRAM EMERGENCY HOUSING REPAIR PROGAM REQUIREMENTS WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) administers the Community Housing Improvement Programs that include the Down Payment Assistance and the Emergency Housing Repair Programs (the “Programs”); and WHEREAS, on June 17, 2021, the Authority Board of Commissioners approved Resolution No. 159 establishing policy and procedure governing the Programs; and WHEREAS, the markets for home purchases and repairs continues to change; and WHEREAS, the Authority has discussed these issues with area professionals; and WHEREAS, the Authority has determined that amendments to the current program requirements are necessary (the “Amendments”) in order to continue the mission of the Authority; and WHEREAS, the proposed amendment is contained in Exhibit A, incorporated herein and attached hereto. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Emergency Housing Repair Program Requirements as outlined in Exhibit A to this Resolution are hereby amended. 2. That the Amendments are effective May 1, 2024. Upon the motion of__________, seconded by___________, and passed on a __________vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 16th day of April, 2024. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 21 of 42 EXHIBIT A Effective 05/01/2024 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY COMMUNITY HOUSING INVESTMENT PROGRAMS EMERGENCY HOUSING REPAIR PROGRAM GUIDELINES (CHIP‐EHRP) FINANCING TERMS $20,000 Lifetime Benefit (per borrower household). If any household member listed on the application has received funding under any of the homeowner rehabilitation programs, the loan amount previously borrowed will be counted towards the lifetime maximum benefit. In cases where borrower households divorce, legally separate or are no longer residing together, previously borrowed amounts as well as the Lifetime Benefit maximum will be split equally between the parties and be taken into consideration to determine future eligibility. 0% Interest Deferred Loan that forgives at a rate of 10% per year for 10 years. If the Homeowner sells, moves out, otherwise conveys the property or converts it to a rental property, an amount will have to be repaid as stated in the Repayment Agreement within 30 days of the sale, conveyance, move out date or conversion. Example: A household signs the mortgage agreement on May 15, 2021 May 15, 2021 – May 14, 2022 100% Payable May 15, 2022 ‐ May 14, 2023 90% Payable May 15, 2023 – May 14, 2024 80% Payable May 15, 2024 – May 14, 2025 70% Payable May 15, 2025 – May 14, 2026 60% Payable May 15, 2026 – May 14, 2027 50% Payable May 15, 2027 – May 14, 2028 40% Payable May 15, 2028 – May 14, 2029 30% Payable May 15, 2029 – May 14, 2030 20% Payable May 15, 2030 – May 14, 2031 10% Payable May 15, 2031 0% Payable HOUSEHOLD ELIGIBILITY CRITERIA Applicant household gross annual income must not exceed 80% AMI as established annually by HUD. Methodology to calculate income will follow the requirements of the Housing Choice Voucher Program. In cases where land surrounding the home to be improved exceeds 20 acres, the value of the home and immediate surrounding 20 acres will be excluded from the income calculation. All other acreage will be counted as an income or asset. Households whose income levels are 50% to 80% of the AMI, must first apply for other funding sources (bank loan, USDA Rural Development 504 Fund, etc.). If the household is not eligible for other funding, 22 of 42 -- Effective 05/01/2024 then the OTC HRA may proceed with an application. This could be verified with copies of loan rejection letters. Homeowner(s) may also sign a Release of Information form so the HRA may obtain the required information directly from the other funding source(s). If any household member listed on the application has received funding under any of the homeowner rehabilitation programs, the loan amount previously borrowed will be counted towards the lifetime maximum benefit. All applicants are required to go through the verification process. Failure to comply with this requirement will result in denial of the application. PROPERTY CRITERIA Property must be located within Otter Tail County and in areas where the Otter Tail County HRA is identified as the HRA District on the property tax statement. This would exclude the cities of Fergus Falls, Perham and a portion of Wadena. Home to be improved must be applicants only residence. Properties held in a trust or life estate are not eligible. Properties being purchased on a contract for deed basis would be eligible so long as the contract holder agrees to the loan terms. All parties will be held accountable for loan repayment and must sign loan documents accordingly. Estimated Market Value as designated on the Property Tax Statement must not exceed $250,000. Mortgage payments and property taxes must be current. Home must be insured at time of application and for duration of deferred loan. Eligible dwellings must be habitable and on a permanent foundation. Work on mobile homes will not be permitted with the exception of well and septic repair or replacement. Properties can only have one active lien filed by the Otter Tail County HRA (or any other entity in which OTC Tax Levy funds were previously used to improve the property). If the home is converted to a rental property (seasonal or otherwise), the loan must be repaid within 30 days of conversion. ELIGIBLE REHAB ACTIVITIES The repair or replacement of failing or near failing systems (definition of near failing: system that is expected to fail within next 12 months) and critical health or safety issues*** as determined by the Otter Tail County HRA Project Manager: Well Septic* Electrical Plumbing Roof Windows Heating System Water Heater Radon Mitigation Mobility Modifications** Code Violations/Citations (local or county) *Septic System Repair/Replacement is an eligible activity only when Otter Tail County Land and Resource Department does not have SSTS grants and/or loan funds available. 23 of 42 Effective 05/01/2024 **Modifications must benefit a physically disabled person who permanently resides in the household. The disability is expected to last at least 2 years. Requested modifications need be directly linked to the disabling condition (a ramp or widened doorways for someone who uses a mobility aid). Modifications are required to be of a permanent nature. ***Activity that falls into this category will first be deemed a critical health and/or safety issue by the HRA Project Manager and then reviewed by the Housing Program Supervisor or Executive Director. In cases where test results will be used to determine the validity of the activity, third party test results will be required with the application for rehabilitation assistance. PROCEDURE Once HRA receives completed application and all required documentation, an income calculation will be conducted in a timely manner. If a household is found to be ineligible, the Project Manager will send a letter to the applicant notifying them that they are they are ineligible and the applicable policies as to why. They will also be notified that if they do not agree with the Project Manager’s decision, that they can request a review to be done by the Executive Director. A review must be requested within 14 calendar days of the date the denial letter was sent to the applicant. If a review is not requested within the allotted time, the decision stands uncontested. If an applicant is deemed eligible, a property inspection will take place as soon as possible. This inspection will verify the request for emergency repairs or disability related modifications. A scope of work will be drafted and mailed to the homeowner. The homeowner will be responsible for obtaining 2 bids from licensed contractors. Once bids have been received, they will be reviewed to ensure that they are complete. Generally, the lower bid will be awarded the project so long as the bid is in line with average construction costs (low bid, then try to submit change orders in hopes of obtaining more money). Once a contractor is selected, a contract will be drafted for both the homeowner(s) and contractor to sign. A title search will be conducted only to the extent of obtaining information on who owns the property to be rehabbed and confirmation of any outstanding liens. Repayment Agreement documents will be drafted and signed by the homeowner(s). A 3‐day right of recission will be offered to the homeowner(s). If no recission is requested, a Proceed to Work Order will be issued to the contractor along with the construction contracts. At this point, work may begin. If escrowed owner funds are part of the project, they will be used first to pay contractor invoices. Once those funds are exhausted, then program funds may be used. Contractors may only bill twice during a project. When a partial invoice is received, an inspection will take place. In cases where this is not possible, contact will be made with the homeowner(s) to verify that the completed work listed on the invoice for has been completed. 24 of 42 Effective 05/01/2024 When final invoice has been received an inspection will commence. The homeowner(s) will have to sign a Final Inspection Form, indicating that all work has been done and the project is complete. At this time, final payment will be issued to the contractor and the Mortgage/Repayment Agreement will be recorded against the property. If the homeowner sells, vacates or otherwise conveys the property during the term of the deferred loan all or part of the borrowed amount must be repaid as stated in the Mortgage Agreement within 30 days of the sale, conveyance or move out date. If a homeowner refinances their property during the term of the deferred loan, Subordination requests will be approved only in cases where no cash out is taken. Upon repayment or forgiveness of the deferred loan, a Satisfaction document will be executed and mailed to the homeowner. It is the responsibility of the homeowner to record this document. In cases where the property is sold and a title company is performing the closing, the Satisfaction will be mailed to the appropriate title company. The final file package will be saved electronically for the duration of the loan plus two years. After which, the documents will be deleted from the system. Legal name of property owner(s), property address, date of Repayment Agreement, summary of work done as well as final cost will be retained indefinitely. DOCUMENTS REQUIRED FROM APPLICANT(S) Completed application Copy of most recently filed tax return (2 years if self‐employed) Documentation of household income (paystubs, 3rd party verification, current award letters, etc.) Documentation of assets (most recent statements) Bank Verification Form Copy of most recent mortgage statement Copy of Declarations Page for property insurance policy Walk Away Policy Data Privacy Form What to Expect Form Release of Information (when necessary) INFORMATION PROVIDED BY OTC HRA Fair Housing Brochure Copy of Walk Away Policy Copy of Data Privacy Form Copy of What to Expect Form 25 of 42 Effective 05/01/2024 INCOME LIMITS # of Household Members 0‐49% AMI 50‐80% AMI 1 person $0‐$30,899 $30,900‐$49,400 2 people $0‐$35,299 $35,300‐$56,450 3 people $0‐$39,699 $39,700‐$63,500 4 people $0‐$44,099 $44,100‐$70,550 5 people $0‐$47,649 $47,650‐$76,200 6 people $0‐$51,199 $51,200‐$81,850 7 people $0‐$54,699 $54,700‐$87,500 8 people $0‐$58,249 $58,250‐$93,150 26 of 42 71913078v2 71913078v1 PURCHASE AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE COUNTY OF OTTER TAIL, MINNESOTA AND THE CITY OF DALTON, MINNESOTA This document drafted by: Taft Stettinius & Hollister LLP (MLI) 2200 IDS Center, 80 South 8th Street Minneapolis, Minnesota 55402 27 of 42 71913078v2 71913078v1 i TABLE OF CONTENTS Page Article I DEFINITIONS ................................................................................................................ 1 Section 1.1 Definitions ......................................................................................... 1 Article II REPRESENTATIONS AND WARRANTIES .............................................................. 2 Section 2.1 Representations and Warranties of the HRA ..................................... 2 Section 2.2 Representations and Warranties of the City ...................................... 2 Article III CONVEYANCE OF PROPERTY ............................................................................... 3 Section 3.1 Status of Property .............................................................................. 3 Section 3.2 Closing ............................................................................................... 3 Section 3.3 Conditions Precedent to Conveyance of the Development Property ............................................................................................. 3 Article IV UNDERTAKINGS BY HRA AND CITY ................................................................... 3 Section 4.1 Property ............................................................................................. 4 Section 4.2 Project ................................................................................................ 4 Section 4.3 Legal and Administrative Expenses .................................................. 4 Article V EVENTS OF DEFAULT ............................................................................................... 4 Section 5.1 Events of Default Defined ................................................................. 4 Section 5.2 Remedies on Default ......................................................................... 4 Section 5.3 No Remedy Exclusive ....................................................................... 4 Section 5.4 No Implied Waiver ............................................................................ 5 Article VI ADDITIONAL PROVISIONS ..................................................................................... 5 Section 6.1 Conflicts of Interest ........................................................................... 5 Section 6.2 Titles of Articles and Sections ........................................................... 5 Section 6.3 Notices and Demands ........................................................................ 5 Section 6.4 Counterparts ...................................................................................... 6 Section 6.5 Law Governing .................................................................................. 6 Section 6.6 Term .................................................................................................. 6 Section 6.7 Assignability of Agreement ............................................................... 6 Article I DEFINITIONS .................................................................................................... 1 Section 1.1 Definitions ......................................................................................... 1 Article II REPRESENTATIONS AND WARRANTIES ................................................... 2 Section 2.1 Representations and Warranties of the HRA ..................................... 2 Section 2.2 Representations and Warranties of the City ...................................... 2 Article III CONVEYANCE OF PROPERTY ...................................................................... 3 Section 3.1 Status of Property .............................................................................. 3 28 of 42 71913078v2 71913078v1 ii Section 3.2 Closing ............................................................................................... 3 Section 3.3 Conditions Precedent to Conveyance of the Development Property ............................................................................................. 3 Article IV UNDERTAKINGS BY HRA AND CITY .......................................................... 3 Section 4.1 Property ............................................................................................. 4 Section 4.2 Project ................................................................................................ 4 Section 4.3 Legal and Administrative Expenses .................................................. 4 Article V EVENTS OF DEFAULT .................................................................................... 4 Section 5.1 Events of Default Defined ................................................................. 4 Section 5.2 Remedies on Default ......................................................................... 4 Section 5.3 No Remedy Exclusive ....................................................................... 4 Section 5.4 No Implied Waiver ............................................................................ 5 Article VI ADDITIONAL PROVISIONS ............................................................................ 5 Section 6.1 Conflicts of Interest ........................................................................... 5 Section 6.2 Titles of Articles and Sections ........................................................... 5 Section 6.3 Notices and Demands ........................................................................ 5 Section 6.4 Counterparts ...................................................................................... 6 Section 6.5 Law Governing .................................................................................. 6 Section 6.6 Term .................................................................................................. 6 Section 6.7 Assignability of Agreement ............................................................... 6 Section 6.8 Indemnification .................................................................................. 6 Section 6.9 AS-IS Conveyance ............................................................................ 6 EXHIBIT A LEGAL DESCRIPTION ................................................................................. A-1 EXHIBIT B WARRANTYQUIT CLAIM DEED ............................................................... B-1 29 of 42 71913078v2 71913078v1 1 PURCHASE AND DEVELOPMENT AGREEMENT THIS PURCHASE AND DEVELOPMENT AGREEMENT (this "Agreement"), made as of the ____ day of _____________, 2024 (the "Effective Date"), by and between the Housing and Redevelopment Authority in and for the County of Otter Tail (the "HRA"), a public body corporate and politic duly organized and existing under the laws of the State of Minnesota, and the City of Dalton, Minnesota (the "City"), a municipal corporation duly organized and existing under the laws of the State of Minnesota, each being a "Party", and, collectively, the "Parties", to this Agreement; WITNESSETH: WHEREAS, the HRA and the City believe that the acquisition of the Development Property (as hereinafter defined), and the acquisition, development, and construction of the Project (as hereinafter defined), and the fulfillment of this Agreement are vital, and are in the best interests of the County of Otter Tail, Minnesota (the "County"), the City, the HRA, the health, safety, morals and welfare of the residents of the County and the City, and in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the sufficiency of which is acknowledged and agreed to by the parties, each of them does hereby covenant and agree with the other as follows: ARTICLE I DEFINITIONS Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Agreement means this Purchase and Development Agreement, dated ______________, 2024 by and between the HRA and the City as the same may be from time to time mutually modified, amended or supplemented; City means the City of Dalton, Minnesota; Closing Date means ________________;December 31, 2024, or upon an earlier date and time mutually agreed upon by Buyer and Seller; County means Otter Tail County, Minnesota; Deed means the deed in the form of Exhibit B attached hereto; Development Property means that certain real property legally described in Exhibit A, attached to this Agreement, to be purchased by the HRA; 30 of 42 71913078v2 71913078v1 2 Effective Date means ____________, 2024; Event of Default means any of the events described in Section 5.1 hereof; HRA means the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota; Legal and Administrative Expenses means the reasonable fees and expenses incurred by the HRA in connection with the preparation of this Agreement and the costs associated with the purchase and sale of the Development Property; Permitted Encumbrances means the provisions of the Deed and this Agreement: reservations of minerals or mineral rights to the State; public utility, roadway and other easements which will not adversely affect the Development Property and use thereof; building laws, regulations and ordinances consistent with the improvements on the Development Property; restrictions, covenants and easements of record that do not materially adversely affect the Development Property and use of the improvements thereon; Project means the acquisition of the Development Property, site demolition, removal and preparation, and the construction of two triplex buildings, totaling six units of affordable senior housing, on the Development Property, by the HRA; Purchase Agreement is defined in Section 3.1 hereof; State means the State of Minnesota; Term means the period in which this Agreement shall remain in effect, commencing on the Effective Date and continuing until the earlier of (i) the completion of the Project, or (ii) the date this Agreement is terminated or rescinded in accordance with its terms; Unavoidable Delays means delays, outside the control of the Party claiming its occurrence, which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Development Property, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly results in delays, or acts of any federal, State or local governmental unit (other than the HRA or the City) which directly result in delays. ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1 Representations and Warranties of the HRA. The HRA represents and warrants that it is a public body, corporate and politic, duly organized, and has the power to enter into this Agreement and to carry out its obligations hereunder. Section 2.2 Representations and Warranties of the City. The City represents and warrants that it is a municipal corporation, duly organized, and has the power to enter into this Agreement and to carry out its obligations hereunder. 31 of 42 71913078v2 71913078v1 3 ARTICLE III CONVEYANCE OF PROPERTY Section 3.1 Status of Property. The Development Property is owned by the City. On the Closing Date, the City shall convey the Development Property to the HRA, pursuant to a purchase agreement to be drafted by the County or City's attorney (the "Purchase Agreement"), and this Agreement. Section 3.2 Closing. (1) Closing on the conveyance of the Development Property to the HRA shall occur on the Closing Date after all of the conditions precedent contained in Section 3.3 have been satisfied or waived. (2) At the closing on the conveyance of the Development Property, the City shall deliver to the HRA: (i) a deed substantially in the form of the Deed, attached hereto as Exhibit B, duly executed and acknowledged conveying to the HRA marketable title to the Development Property subject only to Permitted Encumbrances; and (ii) a Seller's Affidavit, in customary form, relative to judgments, federal tax liens, mechanic's liens and outstanding interests in the Development Property. (3) The purchase price of the Development Property is $1. At the closing on the conveyance of the Development Property the HRA shall deliver to the City the purchase price of $1. (4) The Cityparties shall equally pay all standard closing costs associated with the conveyance of the Development Property, which may include, but is not limited to, . The City shall pay the State deed tax,. The HRA shall pay the cost of obtaining a title insurance commitment and a title insurance policy, and closing costs. Section 3.3 Conditions Precedent to Conveyance of the Development Property. The City's obligation to sell and the HRA's obligation to purchase the Development Property shall be subject to satisfaction of the conditions precedent as contained in this Agreement and the Purchase Agreement. If the conditions precedent to the conveyance of the Development Property have not been satisfied by the Closing Date, the HRAeither party shall have the right to terminate this Agreement by giving written notice of termination to the Cityother party, upon which this Agreement shall terminate and the Cityparties shall execute an instrument in recordable form evidencing such termination. ARTICLE IV UNDERTAKINGS BY HRA AND CITY 32 of 42 71913078v2 71913078v1 4 Section 4.1 Property. The City shall convey and the HRA shall purchase the Development Property, subject to the terms and conditions of the Purchase Agreement and this Agreement. Section 4.2 Project. The HRA shall undertake the Project.and complete the Project in a good quality and workmanlike manner, with all proper permits, as applicable, and in accordance with all applicable Federal, State, and local laws. The HRA shall commence work within thirty (30) days after the Closing Date, and barring Unavoidable Delays, shall complete the Project byno later than December 31, 2025. The HRA shall pay for the costs of the Project. The City shall construct and install public improvements (water, sewer, etc.) to the extent necessary to service the completed Project, and pay for the costs thereof. The City shall enter into a contract to construct said public improvements by no later than May 31, 2024, and shall complete the improvements by no later than August 31, 2024. The City shall also be responsible for the replatting, and zoning, and other similar actions and processes of the City, related to and required for the sale of the Development Property and the completion of the Project. Section 4.3 Legal and Administrative Expenses. The HRA shall pay for all Legal and Administrative Expenses. ARTICLE V EVENTS OF DEFAULT Section 5.1 Events of Default Defined. Failure of either Party to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement shall be an "Event of Default". Section 5.2 Remedies on Default. Whenever any Event of Default referred to in Section 5.1 occurs and is continuing, the non-defaulting Party, as specified below, may take any one or more of the following actions after the giving of thirty (30) days' written notice to the defaulting Party, but only if the Event of Default has not been cured within said thirty (30) days: (1) The non-defaulting Party may suspend its performance under this Agreement until it receives assurances from the defaulting Party, deemed adequate by the non-defaulting Party, that the defaulting Party will cure its default and continue its performance under this Agreement. (2) The non-defaulting Party may cancel and rescind this Agreement. (3) The non-defaulting Party may take any action, including legal or administrative action, in law or equity, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant of the defaulting Party under this Agreement. Section 5.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to either Party is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or 33 of 42 71913078v2 71913078v1 5 shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 5.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any Party and thereafter waived by any other Party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. ARTICLE VI ADDITIONAL PROVISIONS Section 6.1 Conflicts of Interest. No member of the governing body or other official of either Party shall have any financial interest, direct or indirect, in this Agreement, the Development Property or the Project, or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of either Party shall be personally liable to either Party in the event of any default or breach by either Party or either Party's successor or on any obligations under the terms of this Agreement. Section 6.2 Titles of Articles and Sections. Any titles of the several parts, articles and sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 6.3 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any Party to any other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and, in the case of the HRA, is addressed to or delivered personally to: The Otter Tail County Housing and Redevelopment Authority Attention: Executive Director Government Services Center 500 W. Fir Ave Fergus Falls, MN 56537 with a copy to: Taft Stettinius & Hollister LLP Attention: Mary Ippel 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402 34 of 42 71913078v2 71913078v1 6 in the case of the City is addressed to or delivered personally to the City at: City of Dalton 107 Main Street East Dalton, MN 56324 with copy to: CJB LAW, PLLC ATTN: Paul S. Jensen 125 South Mill Street Fergus Falls, MN 56537 or at such other address with respect to any such Party as that Party may, from time to time, designate in writing and forward to the other, as provided in this Section. Section 6.4 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 6.5 Law Governing. This Agreement will be governed and construed in accordance with the laws of the State. Section 6.6 Term. This Agreement shall remain in effect for the Term. Section 6.7 Assignability of Agreement. This Agreement may only be assigned in writing, and with the written consent of the HRA and the City. Section 6.8 Indemnification. The HRA releases and covenants and agrees that the City shall not be liable for and agrees to indemnify and hold harmless the City against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Project constructed by the HRA to the extent not attributable to the gross negligence or intentional misconduct of the City. Section 6.9 AS-IS Conveyance. THE HRA HEREBY EXPRESSLY ACKNOWLEDGES AND AGREES THAT IT IS PURCHASING THE PROPERTY IN AN “AS IS,” “WHERE IS” CONDITION AND “WITH ALL FAULTS,” AFTER SUCH INSPECTION, ANALYSIS, EXAMINATION AND INVESTIGATION THE HRA CARES TO MAKE AND EXPRESSLY WITHOUT COVENANT, WARRANTY OR REPRESENTATION BY THE CITY AS TO PHYSICAL OR ENVIRONMENTAL CONDITION, TITLE, SUITABILITY FOR PARTICULAR PURPOSES, AND ALL OTHER MATTERS WHICH THE HRA DEEMS RELEVANT TO ITS OWNERSHIP OF THE PROPERTY OR ANY OTHER MATTERS WHATSOEVER, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT. 35 of 42 71913078v2 71913078v1 S-1 IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and on its behalf and its seal to be hereunto duly affixed, and the City has caused this Agreement to be duly executed on its behalf, on or as of the date first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE COUNTY OF OTTER TAIL, MINNESOTA By:____________________________ Its: Board Chair By:____________________________ Its: Executive Director This is a signature page to the Purchase and Development Agreement by and between the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota, and the City of Dalton, Minnesota. 36 of 42 71913078v2 71913078v1 S-2 CITY OF DALTON, MINNESOTA By: ____________________________________ Its: Mayor By: ____________________________________ Its: Administrator-Clerk-Treasurer This is a signature page to the Purchase and Development Agreement by and between the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota, and the City of Dalton, Minnesota. 37 of 42 71913078v2 71913078v1 A-1 EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY LOT ONE (1), BLOCK ONE (1), NORTHFIELD’S ADDITION OF DALTON, OTTER TAIL COUNTY, MINNESOTA 38 of 42 71913078v2 71913078v1 B-1 EXHIBIT B WARRANTYQUIT CLAIM DEED THIS INDENTURE, between the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota, a public body corporate and politic duly organized and existing under the laws of the State of Minnesota (the "Grantee"), and the City of Dalton, Minnesota, a municipal corporation duly organized and existing under the laws of the State of Minnesota (the "Grantor"). WITNESSETH, that Grantor, in consideration of the sum of ONE AND 00/100 DOLLAR ($1.00) and other good and valuable consideration, the receipt whereof is hereby acknowledged, does hereby convey and warrantquit claim to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Otter Tail and State of Minnesota described as follows, to-wit (such tract or parcel of land is hereinafter referred to as the "Property"): (See Exhibit 1) To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging in any way appertaining, to the said Grantee, its successors and assigns, forever, subject to the following exceptions: (Insert any exceptions to title) Provided: SECTION 1. It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of that certain Purchase and Development Agreement entered into between the Grantor and Grantee on the ____ day of ____________, 2024, as may be amended or modified in writing from time to time by mutual agreement of the Grantor and Grantee, (hereafter referred to as the "Agreement"). SECTION 2. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall comply with all covenants contained in the Agreement. SECTION 3. This Deed is also given subject to: (a) Provision of the ordinances, building and zoning laws of the City of Dalton, Minnesota, state and federal laws and regulations in so far as they affect this real estate. (b) Taxes payable subsequent to the date of this conveyance. 39 of 42 71913078v2 71913078v1 B-2 SECTION 4. Grantor certifiesstates that it does not knowto the best of anyits knowledge there are no wells on the subject property. Total consideration for this conveyance is less than $3,000.00. IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed on its behalf by its Mayor and Administrator-Clerk-Treasurer this ____ day of _________, 2024. (SEAL) CITY OF DALTON, MINNESOTA By: ____________________________________ Its: Mayor By: ____________________________________ Its: Administrator-Clerk-Treasurer STATE OF MINNESOTA ) ) SS. COUNTY OF OTTER TAIL ) The foregoing instrument was acknowledged before me on this ____ day of ____________, 2024, by ________________ and _______________, the Mayor and Administrator-Clerk-Treasurer of the City of Dalton, Minnesota, a municipal corporation, duly organized and existing under the laws of the State of Minnesota. _______________________________________ Notary Public TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: The Otter Tail County Housing and Redevelopment Authority Attention: Executive Director Government Services Center 500 W. Fir Ave Fergus Falls, MN 56537 THIS INSTRUMENT WAS DRAFTED BY: Taft, Stettinius & Hollister LLP 2200 IDS Center 80 South Eighth Street 40 of 42 71913078v2 71913078v1 B-3 Minneapolis, MN 55402-2157 41 of 42 71913078v2 71913078v1 B-4 EXHIBIT 1 LEGAL DESCRIPTION LOT ONE (1), BLOCK ONE (1), NORTHFIELD’S ADDITION OF DALTON, OTTER TAIL COUNTY, MINNESOTA 42 of 42