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HomeMy WebLinkAboutHousing & Redevelopment Authority - HRA-Packet-01-17-2023 Supporting Documents - 01/17/2023 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY Board Packet January 17, 2023 218-998-8730 ti) EOUJ\L HOUSING OPPORTUNITY ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY AGENDA January 17, 2023 Otter Tail Lake Room 12:00 p.m. 1. Call Meeting to Order and Roll Call – Chairperson 2. Oath of Office – HRA Commissioner Jeff Ackerson 3. Approve Agenda 4. Consent Agenda (December 2022 Financial Report will be presented in February) A. Regular Board Meeting Minutes, December 8, 2022 B. Housing Choice Voucher Rental Assistance Program Report December 2022 C. Community Housing Investment Programs Report December 2022 D. Public Housing Program Report December 2022 5. Annual Meeting Action Items A. Board Officers for Fiscal Year 2023 B. Legal Publication for Fiscal Year 2023 C. Depositories for Fiscal Year 2023 – Resolution No. 230 D. Board Member Per Diem for Fiscal Year 2023 E. Day, Time, Location, and Meeting Schedule for Fiscal Year 2023 6. New Business A. Resolution No. 231 Resolution Approving Investment Policy 7. Discussion A. Update on 2023 Strategic Initiatives and Goals (to be distributed at the meeting) 8. Executive Director Report – Verbal Report 9. General Discussion – Topics by Commissioners 10. Adjourn The Otter Tail County Community Development Agency (CDA) will convene its regular session on January 17, 2023 at 1:00 p.m. 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us ITEM 2. OATH OF OFFICE 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 G:r EOU/IL HOUSING OPPORTUNITY hra@co.ottertail.mn.us Certificate of Appointment State of Minnesota Otter Tail County Housing and Redevelopment Authority I, Barbara Dacy, of the Otter Tail County Housing and Redevelopment Authority hereby certify that Jeff Ackerson was appointed by the Otter Tail County Board of Commissioners to serve as an Otter Tail County Housing and Redevelopment Authority Commissioner. Witness my hand and Official Seal this __________________ day of _______________ 20_____ _______________________________________________ 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us OATH OF COMMISSIONER OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF OTTER TAIL COUNTY, MINNESOTA I, Jeff Ackerson, do solemnly swear that I will support the Constitution of the United States and of the State of Minnesota and will faithfully discharge the duties of the Office of Commissioner of the Housing and Redevelopment Authority of Otter Tail County, Minnesota, according to law and to the best of my judgement and ability, so help me God. I do further swear that I am, and was at the time of my appointment, a resident of Otter Tail County, Minnesota, and that I am a public officer or employee of the County of Otter Tail, Minnesota. Signed _________________________________________ Subscribed and sworn to before me this 17th day of January, 2023 Signed _________________________________________ Notary Public My Commission Expires _____________________ 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us ITEM 4. CONSENT AGENDA 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 G:r EOU/IL HOUSING OPPORTUNITY hra@co.ottertail.mn.us       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 500 W Fir Ave, Fergus Falls, MN Board Members Present: Wayne Johnson, Chairperson John Lindquist Kurt Mortenson Betty Murphy Leland Rogness, Vice Chairperson Others Present: 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 Motion made by Rogness, second by Mortenson to approve the revised December 8, 2022 Agenda to include 4I 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). 218-998-8730 @ OTTER TAIL COUNTY I HOUSING OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER LIVE VO U R best life H E RE . Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcountymn.us Pg. 2    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. Pg. 3    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. 4I. 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. Pg. 4    9. ADJOURNMENT At 4:35 pm a motion was unanimously carried to adjourn the meeting. ________________________________________ _______________ Kurt Mortenson/Secretary/Clerk Date  12/31/2022 1/1/2023 Difference 40,275.32$ $40,179.00 (96.32)$ 97 97 0 *HAP Transactions 38,403.00$ *Utility Reimbursements 320.00$ * Portability Tranactions (Out)1,456.00$ * Portablilty Admin Fee (Paid)96.32$ Hold Landlord Transaction (146.00)$ 11/1 12/1 New Admissions 5 End Participation 3 Shop Mode/ARS 1 Ports-Out Paid 3 2 Ports Out Pending 0 0 Ports In Pending 0 0 9-Jan-23 Waiting List/To Date 1 Applications in Progress 34 Vouchers "on the street"19 ELI%67% Monthly Trend Report*Units Available Units Leased Leasing %Budget %Per Unit $ July 2022 140 97 68.1%88.0%410.00$ August 2022 140 96 69.1%87.3%398.00$ September 2022 140 98 69.1%87.0%395.59$ October 2022 140 98 69.1%87.0%442.03$ November 2022 140 96 68.5%87.0%411.05$ December 2022 140 97 69.3%86.3%415.21$ *Leasing % and Budget % based on cumulative activity during calendar year Per Unit $ is rolling three month average OTC Section 8 Housing Choice Voucher Rental Assistance Program Summary of ActionsDecember 31, 2022 Program Total Financial Transaction Paid This Month* UML (Unit Months Leased or # of Households) 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us COMMUNITY HOUSING INVESTMENT PROGRAMS (CHIP) BOARD REPORT December 2022 Program Applications Approved Applications Denied Inspections Conducted Proceed to Work Issued Projects Complete Goal Program End Date Emergency Home Repair Program (EHRP) 1 1 On-Going Down Payment Assistance (DPA) 1 1 On-Going SCDP: Reuse 1 1 1 (previous) 1 (previous) On-Going Rent Rehab - RR On-Going Affordable Rental Unit Construction - ARUC On-Going BATTLE LAKE 09/30/2023 SCDP: Commercial 2 1 1 8 SCDP: Homeowner 7 4 7 3 3 20 Residential Owner- Occupied Leverage (ROHL) 2 2 2 UNDERWOOD 09/30/2023 SCDP: Homeowner 12 3 12 9 7 17 Residential Owner- Occupied Leverage (ROHL) 5 5 4 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 ti) EOUl\l HOUSING OPPORTUNITY hra@co.ottertail.mn.us PUBLIC HOUSING BOARD REPORT December 2022 Rents Payable $3,912 Rents Collected $3,287 Total Negative Rents $221 Negative Rents Paid $173.90 (2) Late Fees Charged $81 (3) Late Fees Collected $81 Number of Units Paying Flat Rent 3 Fiscal Year ELI 100% WAITING LIST 2 Bedroom 36 3 Bedroom 12 4 Bedroom 12 VACANCIES UNIT VACATED LEASE SIGNED 0 Units owned by the OTC HRA 13 Scattered Site Units 3 Bedroom Single Family Home 1 New York Mills 1 Henning 3 Bedroom Duplex 1 New York Mills 1 Henning 1 Underwood 1 Pelican Rapids 4 Bedroom Single Family Home 1 New York Mills 1 Henning 1 Underwood 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 G:r EOU/1.L HOUSING OPPORTUNITY hra@co.ottertail.mn.us December 2022 Financial Reports will be reviewed by the Board in February 218-998-8730 1:i:r EOUflL HOUSING OPPORTUNITY ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us ITEM 5. ANNUAL MEETING ACTION ITEMS 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 G:r EOU/IL HOUSING OPPORTUNITY hra@co.ottertail.mn.us MEMO TO: Board of Commissioners, Otter Tail County Housing and Redevelopment Authority FROM: Barbara Dacy, Executive Director DATE: January 11, 2023 SUBJECT: Annual Meeting Items #4A – 4E A. Board Officers for Fiscal Year 2023 The current officers are Chairperson Wayne Johnson, Vice Chairperson Leland Rogness and Secretary Kurt Mortenson. Nominations for each position should be taken and a motion to approve a nomination for each position should occur. B. Legal Publication for Fiscal Year 2023 The Fergus Falls Daily Journal is the current legal publication. A motion to approve the Fergus Falls Daily Journal as the legal publication for 2023 is recommended. C. Depositories for Fiscal Year 2023 FM Bank is the current depository for the HRA. HUD requires adoption of the “General Depository Agreement”. Attached is Resolution No. 230 to approve the General Depository Agreement between the Authority and FM Bank and to authorize the Chair and Secretary to execute the Agreement. D. Board Member Per Diem for Fiscal Year 2023 The current per diem is $75, the maximum permitted by state statute. As a reminder, state statute 469.011 provides that elected officials may receive the daily payment only if they do not receive payment for public service the same day. A motion to approve the per diem rate of $75 is recommended. E. Day and Time of Regular Meetings and Location and Schedule for Fiscal Year 2023 Article III, Section 2 of the Bylaws state that the day and time of the Regular Meetings be established at the Annual Meeting. It is recommended that the meetings begin at 12:00 p.m. on the third Tuesday of the month. The meeting schedule for 2023 is listed on the following page. Once approved, the schedule will be posted in the lobby of the Authority office and on its website. A public notice will only be required if the day, time, and/or location will be changed. 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us A motion to approve the meeting schedule and location as listed below for Fiscal Year 2023 is recommended. January 17, 2023 Otter Tail Room February 21, 2023 Otter Tail Room March 21, 2023 Otter Tail Room April 18, 2023 Otter Tail Room May 16, 2023 Dead Lake Room June 20, 2023 Otter Tail Room July 18, 2023 Otter Tail Room August 15, 2023 Otter Tail Room September 19, 2023 Otter Tail Room October 17, 2023 Otter Tail Room November 21, 2023 Otter Tail Room December 19, 2023 Dead Lake Room ITEMS NOT REQUIRING ACTION The Board approved Resolution No. 166 on August 19, 2021 authorizing execution of a contract with the Taft Law firm. The contract has a term three years with the option of two one-year extensions. No action is needed for 2023. The Board approved Resolution No. 199 on July 21, 2022 authorizing the Executive Director implement changes in the Internal Revenue Service mileage reimbursement rate. No action is needed for 2023. 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us RESOLUTION NO. 230 RESOLUTION AUTHORIZING EXECUTION OF GENERAL DEPOSITORY AGREEMENT WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) is authorized by Minnesota Statutes, Section 469 to carry out housing and redevelopment activities; and WHEREAS, the Authority operates the Public Housing Program and the Housing Choice Voucher program (the “Federal Programs”) as well as a variety of housing programs; and WHEREAS, a General Depository Agreement (the “Agreement”) is required by state and federal law; and WHEREAS, the Agreement is attached as Exhibit A to this resolution. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Chair and Secretary are hereby authorized to execute the General Depository Agreement. 2. That the Executive Director is empowered to undertake any other actions related to the Agreement. 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 17th day of January, 2023. Dated: _______________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:_______________________ By:______________________________ General Depository Agreement HUD-51999 (GDA) U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB Approval No. 2577-0075 (exp. 08/31/2023) Previous version obsolete Page 1 of 2 Form HUD 51999 (04/2018) Public reporting burden for this collection of information is estimated to average 1 hour per response. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. HUD will use this information to ensure PHAs use all Program Receipts received from HUD or otherwise associated with public housing funds for purposes of public housing, by requiring such financial assistance to be deposited into interest-bearing accounts at certain financial institutions. The information requested does not lend itself to confidentiality. This Agreement, entered into this __ day of ______ , 20____ by and between____(herein called the “HA”), a duly organized and existing public body corporate and politic of the__ of_____and_____(herein called the “Depository”), located at ______. Witnesseth: Whereas, the Department of Housing and Urban Development (herein called “HUD”) has entered into one or more Annual Contributions Contracts (herein called the “ACC” with the HA for the purpose of providing financial assistance to develop and operate lower income housing projects, as authorized by the United States Housing Act of 1937, as amended (42 USC 1437, et seq.); and Whereas, under the terms of the ACC the HA is required to select as depositories of its funds, financial institutions whose deposits or accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF) as long as this Agreement is in force and effect. Now Therefore, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows: 1. The deposits and accounts of the Depository shall continue to be insured by the FDIC Corporation or NCUSIF. 2. All monies deposited by the HA with the Depository shall be credited to the HA in a separate interest-bearing deposit or interest-bearing accounts, designated . Accounts” (herein the “Accounts”). Any portion of HA Funds not insured by a Federal insurance organization shall be fully (100%) and continuously collateralized with specific and identifiable U.S. Government or Agency securities prescribed by HUD in a notice. Collateralization is required on a daily basis at the end of the business day. Such securities shall be pledged and set aside in accordance with applicable law or Federal regulations. The HA shall have possession of the securities (or the HA will take possession of the securities) or an independent custodian (or an independent third party) holds the securities on behalf of the HA as a bailee (evidenced by safe keeping receipt and a written bailment for hire contract) and will be maintained for the full term of deposit. The Depository may substitute other securities as collateral to equal or increase the value. If the HA is an agency of an Indian tribe, the collateral shall be in United States bonds and otherwise as may be prescribed for public funds by the United States Secretary of the Treasury. 3. Except as stated in Paragraph 5, the Depository shall honor any (a) check or other order to pay from the Accounts, or (b) directive to purchase investment securities with monies from the Accounts or to sell securities, if such order or directive is in writing and signed on behalf of the HA by an officer or member designated by resolution of the Board of Directors of the HA to have such authority. To assist the Depository in its obligation, the HA shall furnish the Depository with a certified copy of the resolution. 4. Any securities received from the HA or purchased by the Depository with monies from the Accounts shall be considered to be a part of the Accounts and shall be held by the Depository in safe-keeping for the HA until sold. Interest on such securities and the proceeds from the sale thereof shall be deposited in the Account upon receipt 5. If the Depository receives written notice from HUD that no withdrawals by the HA from the Accounts are to be permitted, the Depository shall not honor any check or other order to pay from the Accounts or directive to purchase or sell securities, or permit any withdrawals by the HA from said Accounts until the Depository is authorized to do so by written notice from HUD. 6. The Depository is not obligated to be familiar, and shall not be charged, with knowledge of the provisions of the ACC, and shall be under no duty to investigate or determine whether any action taken by either the HA or HUD in respect of the Accounts are consistent with or are authorized by the ACC or whether either HA or HUD is in default under the provisions of the ACC. The Depository shall be fully justified in accepting and acting on, without investigation, any certificate or notice furnished to it pursuant to the provisions of this Agreement and which the Depository shall in good faith believe to have been duly authorized and executed on behalf of the party in whose name the same purports to have been made or executed 7. The rights and duties of the Depository under this Agreement shall not be transferred or assigned by the Depository without the prior written approval of the HA and HUD. This Agreement may be terminated by either party hereto upon thirty days’ written notice to the other party, and HUD. The rights and duties of the Depository hereunder shall not be transferred or assigned nor shall this Agreement be terminated during any period in which the Depository is required to refuse to permit withdrawals from the Accounts as provided in Paragraph 5. Previous version obsolete Page 2 0f 2 Form HUD 51999 (02/28/2018) 8. HUD is intended to be a third-party beneficiary of this Agreement and may sue to enforce its provisions and to recover damages for failure to carry out its terms. 9. The Depository shall provide the HA with remote, electronic access to the Accounts for the purpose of monitoring the crediting or depositing of any monies in the Accounts. 10. The provisions of this Agreement may not be modified by either Party without the prior written approval of HUD 11. Strike this paragraph if inapplicable: Previous General Depository or Savings Depository Agreements, if any, entered into between the Depository and the HA are hereby terminated and all monies and securities of the HA on deposit with or held by the Depositories pursuant to the terms of said Agreement shall continue to be held for account of the HA pursuant to and in accordance with the provisions of this Agreement. 12. Strike this paragraph if paragraph 2 applies: For use only in certain States that have statutes that prohibit HAs from implementing paragraph 2. At no time shall the HA Funds in the Accounts be permitted to exceed the amount insured by Federal deposit insurance (herein the “Insured Amount”). At any such time as the amount of funds in the Accounts reach the Insured Amount, whether by the accrual of interest or otherwise, the Depository shall promptly, as directed by the HA, and in an amount sufficient to limit the funds in the Accounts to the Insured Amount, either: (a) remit payment to the HA or, (b) on behalf of the HA, purchase securities approved for investment by the HA. Such securities shall not be considered to be a part of the Account pursuant to Paragraph 4 hereof but shall be held by the Depository as custodian or trustee for the HA in a separate account established for that purpose by the Depository (herein the “Securities Account”). The Securities Account shall be designated as____. Income or other proceeds from securities held in the Securities Account shall, as directed by the HA, upon receipt, be paid to or on behalf of the HA; provided, however, that such proceeds shall, to the extent consistent otherwise with the provisions of this Paragraph, be deposited in the Accounts. If the Depository receives written notice from HUD pursuant to Paragraph 5 hereof that no withdrawals by the HA from the Accounts are to be permitted, the Depository shall not honor any directive from the HA to sell securities, or permit any withdraws by the HA, from the Securities Account until the Depository is authorized to do so by written notice from HUD. During the pendency of such restrictions on the Accounts and the Securities Account, the Depository, except as directed in writing by HUD, shall not remit any payment to the HA for the purpose of limiting the amount of funds in the Account to the Insured Amount but shall instead purchase securities approved for investment by the HA and hold such securities in the Securities Account. 13. Notice required under the terms and conditions of this agreement shall be deemed to have been given when it made by: ___________ _______________, on behalf of ________________________ Title Organization (HA) _________________________, on behalf of _________________________ Title Organization (Depository) __________________________, on behalf of ________________________ Title Organization (HUD) Notice shall be made in writing. Notice may be delivered in person, by United States Postal Service mail, by receipted commercial mail delivery, by facsimile machine or other electronic means that clearly identifies the sender as one of the persons so authorized in this paragraph. Notice under the terms of this agreement shall be implemented by the Depository within 24 hours of actual receipt. In Witness Whereof, the HA and the Depository have caused this Agreement to be executed in their respective names and their respective seal to be impressed hereon and attested as of the date and year first above written. ________________________________________________________ HA (SEAL) ATTEST: By______________________________________________________ Chairman ________________________________________________________ Secretary ________________________________________________________ Depository (SEAL) ATTEST By______________________________________________________ ITEM 6. NEW BUSINESS 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 G:r EOU/IL HOUSING OPPORTUNITY hra@co.ottertail.mn.us OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION January 17, 2023 BOARD MEETING DATE AGENDA ITEM #6A Executive Director ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 1/12/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 231 Resolution Approving Investment Policy PROPOSED REQUEST/JUSTIFICATION It is a financial best practice and recommended by federal and state guidance to adopt an Investment Policy for the HRA. For some time, the HRA has maintained a 6 month revolving Certificate of Deposit at FM Bank. The proposed policy sets out the process and guidelines when considering investment decisions. The language proposed is suggested guidance through an informational resource “HUD Exchange” and has been modified to apply to the Otter Tail County HRA. Staff will schedule review by the HRA Board mid-year to evaluate investment options on the current certificate of deposit. Staff recommends the Board adopt the attached resolution. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Barbara Dacy 1/12/2023 ATTACHMENT LIST: Resolution No. 231 FINANCIAL IMPLICATIONS: Investment Income BUDGETED: x YES NO FUNDING: Tax levy COMMENTS RESOLUTION NO. 231 RESOLUTION APPROVING INVESTMENT POLICY WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) is authorized by Minnesota Statutes, Section 469 to carry out housing and redevelopment activities; and WHEREAS, the Authority operates the Public Housing Program and the Housing Choice Voucher program (the “Federal Programs”) as well as a variety of state and local housing programs; and WHEREAS, adopting an Investment Policy (the “Policy) is recommended by federal and state guidance; and WHEREAS, the Policy is aimed at preserving the capital, liquidity, and maximization of interest earnings of the Authority’s investment; and WHEREAS, the Policy is attached as Exhibit A to this resolution and incorporated herein. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Board of Commissioners approve the Policy in Exhibit A. 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 17th day of January, 2023. Dated: _______________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:_______________________ By:______________________________ EXHIBIT A INVESTMENT POLICY This policy emphasizes the preservation of capital, liquidity, and maximization of interest earnings as the major objectives of the HRA’s investment policy. Therefore, the HRA shall invest its funds in a manner which will provide the highest investment return with the maximum amount of security, while assuring the availability of cash for daily needs. In making investments, the HRA must consider the following items. • Safety – Safety shall be achieved by adherence to a HUD approved list of investment types. • Liquidity – The term of the investments will be structured in accordance with the anticipated cash flows needs of the programs. • Maximization of Interest Earnings – The goal of the HRA is to maximize the earnings generated from investments while balancing other considerations. • Location – An attempt shall be made to invest at a local financial institution unless the rates are clearly not considered competitive. • Administrative Cost – The HRA will consider the administrative work involved when choosing an investment. Investment types shall be limited to the types prescribed by HUD in PIH Notice 1996-33 Attachment A or as amended by future HUD notices. The investment of choice by the HRA shall be certificates of deposit. All ACC funds are subject to the 100 percent collateralization policy specified in the General Depository Agreement (HUD Form 51999). Other Federal and state funds administered by the HRA are subject to the investment types and collateralization requirements of the respective program. For other funds, it is the HRA’s general policy that the financial institution invest only in federal or state securities (both insured and un-insured) and require that adequate collateral be pledged for all deposits or investments with financial institutions. Adequate collateral is defined as collateral that exceeds the current Federal Deposit Insurance Corporation (FDIC) insurance coverage limit. INVESTMENT PROCEDURES HRA Investment Program All investments transactions, including the acquisition and redemption of investments, must be authorized by the Board of Commissioners and documented in the minutes prior to the actual decision and action. The investment program of the HRA is the responsibility of the Executive Director. 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us Investment Management Investments will be in the name of the HRA. To the extent possible, investments shall be staggered to allow for flexibility should the HRA need to cash in some investments. Investments will not be pooled between programs (i.e., funds from separate programs will not be aggregated and invested in the same instrument). Where applicable (i.e., actual Treasury notes or bonds), the physical safekeeping of securities and deposit certificates will be entrusted to the financial institution. The financial institution should secure the security documents in a fireproof / waterproof safe. Accounting and Reporting of Investments Reconciliations will be performed quarterly. Investments will be reconciled from the investment statements to the investment register and general ledger. The investment register shall include, at a minimum, the following details: • Amount of investment securities purchased from each project and/or program • A complete description of the investment instrument • Date of purchase • Purchase price • Interest rate • Applicable date of sale of investment upon maturity A quarterly investment report will be prepared and provided to the Executive Director and Board of Commissioners. The report will include the information contained in the investment register as well as the investment activity conducted during the quarter. ~ EOUI\L HOUSING OPPORTUNITY ITEM 7. DISCUSSION 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 G:r EOU/IL HOUSING OPPORTUNITY hra@co.ottertail.mn.us ITEM 8. EXECUTIVE DIRECTOR REPORT 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 G:r EOU/IL HOUSING OPPORTUNITY hra@co.ottertail.mn.us ITEM 9. GENERAL DISCUSSION BY COMMISSIONERS and ADJOURN 218-998-8730 ottertailcountymn.us OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 G:r EOU/IL HOUSING OPPORTUNITY hra@co.ottertail.mn.us