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Housing & Redevelopment Authority - HRA-Packet-07-18-2023 Supporting Documents - 07/18/2023
OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY & COMMUNITY DEVELOPMENT AGENCY BOARD PACKET July 18, 2023 1 of 41 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Otter Tail Lake Room 500 West Fir Avenue, Fergus Falls, MN July 18, 2023 HOUSING AND REDEVELOPMENT AUTHORITY MEETING AGENDA 11:45am 1. Call Meeting to Order and Roll Call – Chairperson 2. Approval of Agenda 3. Consent Agenda A. Regular Board Meeting Minutes, June 20, 2023 B. Housing Choice Voucher Rental Assistance Program Report June 2023 C. Community Housing Investment Programs Report June 2023 D. Public Housing Program Report June 2023 E. Check Report and June 2023 Financial Reports 4. Public Hearing (Continued from June 12, 2023) A. Otter Tail County Affordable Senior Housing Program 5. New Business A. Resolution No. 246 Approving Otter Tail County Affordable Senior Housing Program B. Resolution No. 247 Approving Housing Choice Voucher Processing Policy 6. Discussion A. 2024 Strategic Initiatives and Preliminary 2024 Budget (to be distributed under separate cover) 7. Executive Director Report 8. General Discussion – Topics by Commissioners 9. Adjourn 2 of 41 2 COMMUNITY DEVELOPMENT AGENCY MEETING AGENDA 1:00pm 1. Call to Order 2. Approval of Agenda 3. Approval of Consent Agenda A. June 20, 2023 Regular Meeting Minutes B. June 2023 Financial Reports 4. Reports and Presentations A. Director Status Report B. Committee Reports Housing Growth and Investment Workforce Support and Development (did not meet) Childcare Investment D. ‘On the Map’ Report E. Board Member Updates 5. Regular Business A. Community Growth Partnership Application: City of Pelican Rapids/Ace Hardware Parking and Blight Removal B. Community Growth Partnership Application: City of New York Mills: Senior Affordable Housing C. Resolution regarding Sale of 19965 Co. Hwy. 24, Erhard a. Draft Purchase Agreement D. Minnesota Housing Community Impact Fund Application a. Pelican Rapids Highway Garage Site 7. Discussion and Communications A. Preliminary 2024 Budget Discussion B. Other Communications C. Upcoming meeting: Tuesday, August 15, 2023 at 1:00pm, Commissioner’s Room, Government Services Center with HRA Board meeting beginning at 11:45am 8. Adjourn 3 of 41 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 3. CONSENT AGENDA 4 of 41 1ir EOU/\L HOUSING OPPORTUNITY The Otter Tail County HRA Board of Commissioners Met for a regular meeting on June 20, 2023 at 11:45am At the Otter Tail County Government Services Center 500 W Fir Ave, Fergus Falls, MN Board Members Present: Wayne Johnson, Chairperson Jeff Ackerson Kurt Mortenson Betty Murphy Leland Rogness, Vice Chairperson Others Present: Barbara Dacy, OTC HRA Executive Director Amy Baldwin, OTC CDA Director Tanya Westra, OTC HRA Project Manager Paula Grunewald, OTC HRA Administrative Assistant Via Teams Julie Bakken, OTC HRA Accounting Specialist 1. CALL TO ORDER Chairperson Johnson called the meeting to order at 11:45 am. 2. APPROVAL OF AGENDA Motion made by Lee Rogness, second by Betty Murphy to approve the June 20, 2023 Agenda with no changes noted. Motion passed unanimously. 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made by Kurt Mortenson, second by Betty Murphy to approve the Consent Agenda. Motion passed unanimously. Discussion was held on the wording of the May 16, 2023 minutes regarding Resolution No. 239. The minutes will be updated. 4. PUBLIC HEARING Otter Tail County Annual Plan and Capital Fund Plan Director Dacy stated that there are no significant changes to the Annual Plan and the Capital Fund Plan, however the Administrative Plan for the Housing Choice Voucher program and the Admission and Continued Occupancy Policy for the public housing program will be changed. She stated that a high-level list of changes and will be presented at the August 15 Board Meeting. Chairperson Johnson said the public hearing should recess until August 15, 2023. The Public Hearing was open for any commentary from the public. Johnson asked 3 times “Does anyone want to comment?” and no public was present to comment. The Public Hearing will recess until August 15, 2023 at 11:45am. 5. NEW BUSINESS A. Resolution No. 244 Endorsing an Amendment to the Otter Tail County Powers Ordinance Between the County HRA and County EDA. 5 of 41 218-998-8730 @ HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER LIVE YOUR best life HERE. Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov Pg. 2 Director Dacy stated that the proposed resolution endorses the upcoming county ordinance amendment that would permit the CDA to administer housing programs with rent and/or income restrictions. She stated that the ordinance amendment would change the 2019 Ordinance to reflect the new CDA programming. Motion made by Kurt Mortenson, second by Lee Rogness to approve Resolution No. 244 as presented. Motion passed unanimously. B. Resolution No. 245 Authorizing Application to Minnesota Housing for Housing Infrastructure Bonds Director Dacy stated that Minnesota Housing has a program called “Housing Infrastructure Bonds”, which can help finance the construction of affordable senior housing. Ms. Dacy reviewed three sites in Vergas, New York Mills, and Ottertail. She stated that two triplexes would be built on each site, and unlike the triplexes in Dalton, there would be more one bedrooms than two bedrooms. Commissioners Johnson asked if it is good business practice to have ownership in all these locations. Ms. Dacy stated that to a certain extent, the HRA is already anticipating and handling these types of expenses. She stated that the voucher program requires routine inspections, and the Lead Maintenance Technicians plans for these inspections on a regular basis. She stated there are voucher holders and public housing units in New York Mills, and the Lead Maintenance technician currently offices at Ottertail. Ms. Baldwin stated that these communities have approached the county to assist them with their housing goals, and the CDA and HRA are being responsive to community needs. Ms. Dacy also stated that staff is proposing to file a Community Impact Fund application in the City of Pelican Rapids. She stated that the proposed resolution does not reflect his application and requests the Board consider amending the resolution. Motion made by Lee Rogness, second by Jeff Ackerson to approve Resolution No. 245 with changes proposed to the Resolution title and the second whereas to reflect the Community Impact Fund application in the City of Pelican Rapids. Motion passed unanimously. 6. DISCUSSION A. HRA Commissioner Terms Director Dacy presented a proposal to align the commissioner terms who are elected officials with the elected office terms. The Board suggested that discussion continue on this proposal. B. 2024 Strategic Initiatives/Goals/Programs Review Directory Dacy reviewed the status of various initiatives to date and requested feedback on goals for 2024 and 2025. She stated that as a result of this discussion, an initial budget/ levy request analysis will be scheduled for discussion at the July meeting. Commissioner Rogness stated that the Dalton initiative is a significant step, and we should be sure that it can be accomplished. He stated that communities need to come to us. Commissioner Mortenson agreed and stated that being responsive to communities to assist them with their goals, is key. Commissioner Ackerson stated that it is important to use the resources available and “cross the finish line”. 7. EXECUTIVE DIRECTOR REPORT 1. Dacy stated that OTC HRA has been rated with the Section Eight Management Assessment Program (SEMAP) as a Standard Performer. Public Housing was rated as a High Performer. 2. The Finding Home Study is being completed by Amy Johnson from Cardinal Consulting Solutions. Ms. Dacy stated that the purpose of the study is to find out what are people’s experiences when they are seeking housing in the county; what are the circumstances, barriers and possible solutions. 3. A Poverty Simulation will be held Thursday, July 27 at Lake Country Service Cooperative, she recommends that everyone attend. 6 of 41 Pg. 3 8. GENERAL DISCUSSION – TOPICS BY COMMISSIONERS No topics were discussed. 9. ADJOURNMENT At 11:59 pm a motion was unanimously carried to adjourn the meeting. __________________________________________________ ___________________ Kurt Mortenson/Secretary/Clerk Date 7 of 41 6/30/2023 7/1/2023 Difference 41,229.68$ $43,000.00 1770.32 95 96 1 *HAP Transactions 38,787.00$ *Utility Reimbursements 533.00$ * Portability Tranactions (Out) 1,807.00$ 1.18$ 4.00$ * Portablilty Admin Fee (Paid)97.50$ -$ 5/31 6/1 New Admissions 2 End Participation 5 Shop Mode/ARS 0 Ports-Out Paid 2 2 Ports Out Pending 0 0 Ports In Pending 0 0 6/30/2023 Waiting List/To Date 12 Applications in Progress 11 Vouchers "on the street"16 ELI%89% Monthly Trend Report*Units Available Units Leased Leasing %Budget % Per Unit $ January 2023 144 97 67.4% 94.0% 409.33$ February 2023 144 100 67.8% 94.7% 428.52$ March 2023 144 100 69.8% 97.5% 431.81$ April 2023 144 100 68.8% 97.9% 419.32$ May 2023 144 99 69.4% 99.3% 409.40$ June 2023 144 95 70.1% 101.2% 588.15$ *Leasing % and Budget % based on cumulative activity during calendar year Per Unit $ is rolling three month average *Portability Admin Fee Adjustment *Portability Utility Reimbursement *Hold Landlord Transaction OTC Section 8 Housing Choice Voucher Rental Assistance Program Summary of Actions June 30, 2023 Program Total Financial Transaction Paid This Month* UML (Unit Months Leased or # of Households) 8 of 41 218-998-8730 HOUSING AND REDEVELOPMENT AUTHORITY ottertailcounty.gov Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@co.ottertail.mn.us COMMUNITY HOUSING INVESTMENT PROGRAMS (CHIP) BOARD REPORT June 2023 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) 2 2 On‐Going SCDP: Reuse 2 2 1 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 6 3 20 Residential Owner‐Occupied Leverage (ROHL) 2 4 2 UNDERWOOD 09/30/2023 SCDP: Homeowner 12 3 12 9 7 17 Residential Owner‐Occupied Leverage (ROHL) 5 5 4 9 of 41 218-998-8730 HOUSING AND REDEVELOPMENT AUTHORITY ottertailcountymn.us Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (!) EOU/\L HOUSING OPPORTUNITY hra@co.ottertail.mn.us PUBLIC HOUSING BOARD REPORT June 2023 Rents Payable $3,361 Rents Collected $3361 Total Negative Rents $649 Negative Rents Paid $0 Late Fees Charged $36 Late Fees Collected $36 Number of Units Paying Flat/Ceiling Rent 3 Fiscal Year ELI 100% WAITING LIST 2 Bedroom 21 3 Bedroom 4 4 Bedroom 2 VACANCIES UNIT VACATED LEASE SIGNED 3 Bdrm ‐ NYM 06/30/2023 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 10 of 41 OTTERTAIL COUNTY -MINNESOTA 218-998-8730 HOUSING AND REDEVELOPMENT AUTHORITY ottertailcountymn.us Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (5) EOUl\l. HOUSING OPPORTUNITY hra@co.ottertail.mn.us Doc Num Voided Type Document Recipient 41 No DD Barbara Dacy LLC 42 No DD Betty Murphy 43 No DD Jeff A Ackerson 44 No DD Kurt A. Mortenson 45 No DD Wayne Johnson 46 No DD Barbara Dacy LLC 47 No DD Betty Murphy 48 No DD Jeff A Ackerson 49 No DD Kurt A. Mortenson 50 No DD Wayne Johnson 1314 No CHK Brady Martz & Assoc PC 1315 No CHK City of Battle Lake 1316 No CHK Contractor Compliance & Monitoring Inc 1317 No CHK HighPoint Homes Inc 1318 No CHK Kevin Currie 1319 No CHK Minnesota Housing Finance Agency 1320 No CHK Nan McKay & Associates Inc 1321 No CHK Otter Tail County Recorder's Office 1322 No CHK Taft Stettinius & Hollister LLP 1323 No CHK Tanya Westra 1324 No CHK Woodland Home Design 1325 No CHK N F Field Abstract Co LLC 1326 No CHK Paula Grunewald 1327 No CHK Sign Guys LLC 1328 No CHK Contractor Compliance & Monitoring Inc 1329 No CHK Design Intent Architects P.A. 1330 No CHK Ehlers and Associates 1331 No CHK Fergus Falls Daily Journal 1332 No CHK HighPoint Homes Inc 1333 No CHK N F Field Abstract Co LLC 1334 No CHK The Energy Network Worldwide LLC Payments $340,231.91 $340,231.91 Count 10 21 31 End of Report $319,989.09 Total:$340,231.91 Project Summary Bank: FM Bank, Bank Account: 9311043703, GL Account: 1111Program - Project Deposits General Revolving (GR) - General Revolving $0.00 Total:$0.00 Type Summary Bank: FM Bank, Bank Account: 9311043703, GL Account: 1111Document Type Amount Direct Deposit (DD)$20,242.82 Check (CHK) Cleared: 18 $271,252.43 Uncleared: 13 $68,979.48 Total Payments: 31 $340,231.91 06/30/2023 O&E Battle Lake BH20 #02 No $85.00 06/30/2023 113 Hidden Meadows, BL, Final Inspection No $900.00 06/30/2023 #628982 24 Annual Plan, #628145 RFP, #634167 No $671.69 06/30/2023 Hidden Meadows Pay App #9 No $43,007.00 06/30/2023 North Fields of Dalton Schematic Design Phase No $11,875.00 06/30/2023 North Fields of Dalton Financing Models/Proforma No $1,560.00 06/20/2023 Hidden Meadows Yard Signs Yes $55.00 06/30/2023 Hidden Meadows, BL, Labor Compliance Services for June No $750.00 06/14/2023 CHIP Down Payment Assistance 2023-02 Yes $10,000.00 06/20/2023 Muffins for HRA Public Hearing No $9.38 06/07/2023 Mileage Reimb May 23 Yes $36.68 06/07/2023 Hidden Meadows 3D Renderings Yes $90.00 06/07/2023 Recording Fee ROHL 2022- 01 & TL308 Yes $92.00 06/07/2023 Services Thru 5/31/23 (Dissolution) Yes $320.00 06/07/2023 Interest Due Loan #1270599 Yes $207,410.35 06/07/2023 Teri Robertson-Remote Retainer Services-Policy Yes $1,200.00 06/07/2023 Hidden Meadows Pay App #8 Yes $25,957.00 06/07/2023 May 2023 Consulting Services Yes $4,939.65 06/07/2023 113 Hidden Meadows Final Service Yes $280.34 06/07/2023 Hidden Meadows May 2023 Labor Compliance Yes $750.00 06/30/2023 Per Diem/Mileage 06/20/23 No $101.86 06/07/2023 2022 Audit Client #10063 Yes $10,000.00 06/30/2023 Per Diem/Mileage 06/20/23 No $82.21 06/30/2023 Per Diem/Mileage 06/20/23 No $92.03 06/30/2023 June 2023 Services No $9,743.45 06/30/2023 Per Diem/Mileage 06/20/23 No $101.86 06/20/2023 Per Diem/Mileage 06/12/23 Yes $92.03 06/20/2023 Per Diem/Mileage 06/12/23 Yes $101.86 06/20/2023 Per Diem/Mileage 06/12/23 Yes $101.86 06/20/2023 Per Diem/Mileage 06/12/23 Yes $82.21 Payment Date Document Description Cleared Amount 06/07/2023 May 2023 Services Yes $9,743.45 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register General Revolving (GR) Posted Payments www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 7/6/2023 10:37:51 AM Printed by: Julie Bakken 11 of 41 50% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3610 Interest Income 3703/5353/3741/0054 2,229.08 3,900.02 1,800.00 2,100.02 217% 3690 Other Revenue MISC 1,575.00 1,575.00 3690.01 SCDP Administration (DEED) - All Communities 1,204.00 85,000.00 (83,796.00)1% 3690.02 SCDP City/Grant Funds - All Communities 8,028.00 444,920.00 (436,892.00)2% 3690.99 Refunds & Reimbursements 2,469.83 10,857.82 10,857.82 3691 Levy Revenue 771,623.98 1,309,725.00 (538,101.02)59% 3693.01 CHIP Emerg Housing Repair Program (EHRP) Repayment 6,842.00 6,842.00 3693.03 CHIP FFHRA Rehab Repayments 24,012.90 24,012.90 3693.05 CHIP Rental Rehab Revolving Loan Payments 1,070.42 10,215.28 31,821.00 (21,605.72)32% 3695.01 MHFA Loan Distributions - All Projects 347,602.00 500,000.00 (152,398.00)70% 3695.02 MHFA Grant Distributions - All Projects 516,000.00 (516,000.00)0% 3697 Owner Match Revenue 9,115.00 9,115.00 3698 Developer Fees 75,000.00 (75,000.00)0% 3699 Sale of Property 217,064.95 422,867.15 745,000.00 (322,132.85)57% TOTAL INCOME 222,834.28 1,617,843.15 3,709,266.00 (2,091,422.85)44% EXPENSES 4130 Legal 320.00 1,239.99 30,000.00 28,760.01 4% 4140 Staff Training 444.22 4,245.22 5,000.00 754.78 85% 4150 Travel 36.68 291.59 4,300.00 4,008.41 7% 4170 Accounting 15,000.00 60,000.00 45,000.00 25% 4171 Audit 10,000.00 10,000.00 16,100.00 6,100.00 62% 4190 Other Administrative Expenses 9.38 65.64 200.00 134.36 33% 4190.01 Manuals, Subscriptions 478.00 200.00 (278.00)239% 4190.02 Office Supplies 828.01 1,700.00 871.99 49% 4190.03 Postage 777.39 4,500.00 3,722.61 17% 4190.04 Telephone & Internet 73.62 300.00 226.38 25% 4190.05 Dues 791.74 1,000.00 208.26 79% 4190.06 Advertising 671.69 884.45 1,300.00 415.55 68% 4190.08 Consulting Fees 1,200.00 3,705.52 28,000.00 24,294.48 13% 4190.2 Management Fees-OTC Admin 49,243.54 364,342.00 315,098.46 14% 4190.21 Management Fees-Administrator Contract 19,486.90 58,460.70 116,918.00 58,457.30 50% 4190.22 Management Fees - Construction Consultant 4,939.65 21,715.61 40,000.00 18,284.39 54% 4210 Board Member Payments 755.92 2,471.48 4,900.00 2,428.52 50% 4430.1 Misc Contracts - Software 6,155.50 5,000.00 (1,155.50)123% 4510 Insurance 31,903.19 35,000.00 3,096.81 91% 4521 Assessments 80.00 420.00 340.00 19% 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% 4590.01 SCDP O & E Reports 85.00 2,000.00 2,000.00 0% 4590.02 SCDP Lead Based Paint Testing 325.00 10,000.00 9,675.00 3% 4590.03 SCDP Construction (DEED)4,620.00 432,000.00 427,380.00 1% 4590.04 SCDP Recording Fees 920.00 920.00 0% 4590.05 SCDP General Expense - Leverage 212,007.00 212,007.00 0% 4591 MHFA Impact Fund Expenses 71,752.49 439,797.40 1,016,000.00 576,202.60 43% 4591.01 MHFA Administration/Overrun 1,645.00 7,664.00 75,000.00 67,336.00 10% 4591.02 MHFA Loan Repayment 205,802.20 205,802.20 745,000.00 539,197.80 28% 4592.01 HOP Demolition/Site Clearance 40,000.00 40,000.00 0% 4593.02 CAP Property Acquisition 25,000.00 25,000.00 0% 4593.03 CAP Consulting Fees 1,560.00 1,980.00 30,000.00 28,020.00 7% 4593.04 CAP Architect/Engineering 11,875.00 11,875.00 (11,875.00) 4594 CHIP Down Payment Assistance 10,000.00 10,000.00 50,000.00 40,000.00 20% 4595.01 CHIP Emergency Housing Repair Program (EHRP)40,000.00 40,000.00 0% 4595.02 CHIP Res Owner Occupied Housing Leverage (ROHL)92.00 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% 4595.05 CHIP Rental Rehabilitation Loan 20,000.00 20,000.00 0% TOTAL EXPENSES 340,676.13 890,566.79 3,607,107.00 2,716,540.21 25% SURPLUS (117,841.85)727,276.36 102,159.00 625,117.36 712% Otter Tail County Housing Redevelopment Authority Operating Statement Six Months Ending 06/30/2023 Program: General Revolving (GR) Project: Consolidated Percent of Year www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 7/6/2023 10:17:20 AM Printed by: Julie Bakken 12 of 41 Period Amount Balance ASSETS 1111 Cash (120,673.74)1,348,037.16 1111.1 Certificates of Deposit 1,699.90 143,748.12 1111.2 Cash MHFA Loan Acct #0054 0.50 4,080.54 1111.3 Cash Committed for Hidden Meadows 375,000.00 1111.4 Committed for Housing Trust Fund 542,596.00 1113 Cash Rent Rehab 1,131.49 297,795.66 1130.1 Loan Receivable-Rental Rehab 245,098.36 1130.2 Loan Receivable-Down Payment Assistance 89,138.00 1130.3 Loan Receivable-Tax Levy Rehab Provision 331,010.72 1130.4 Loan Receivable-Homeowner Rehab 629,281.00 1130.9 Loan Allowance (960,291.72) 1135.5 Taxes Receivable 16,095.00 1400.12 Assets Held for Resale 1,051.00 TOTAL ASSETS (117,841.85)3,062,639.84 LIABILITIES AND SURPLUS LIABILITIES TOTAL LIABILITIES SURPLUS 2700 Income/Expense Clearing Account 421,444.43 2700 Income/Expense Clearing Account (Current Year) (80.00) 2806 Unrestricted Net Position 1,913,919.05 2806 Unrestricted Net Position (Current Year) (117,841.85)727,356.36 TOTAL SURPLUS (117,841.85)3,062,639.84 TOTAL LIABILITIES AND SURPLUS (117,841.85)3,062,639.84 Otter Tail County Housing Redevelopment Authority Balance Sheet June 2023 Program: General Revolving (GR) Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 7/6/2023 10:17:19 AM Printed by: Julie Bakken 13 of 41 Doc Num Voided Type 435 No DD 436 No DD 437 No DD 438 No DD 439 No DD 440 No DD 441 No DD 442 No DD 443 No DD 444 No DD 445 No DD 446 No DD 447 No DD 448 No DD 449 No DD 450 No DD 451 No DD 452 No DD 453 No DD 454 No DD 455 No DD 456 No DD 457 No DD 458 No DD 459 No DD 460 No DD 461 No DD 462 No DD 463 No DD 464 No DD 465 No DD 466 No DD 467 No DD 468 No DD 469 No DD 470 No DD 471 No DD 472 No DD 473 No DD 6017 No CHK 6018 No CHK 6019 No CHK 6020 No CHK 6021 No CHK 6022 No CHK 6023 No CHK 6024 No CHK 6025 No CHK 6026 No CHK 6027 No CHK 6028 No CHK 6029 No CHK 6030 No CHK 06/01/2023 HAP Util Payment Jun 23 Yes $172.00 06/01/2023 HAP Util Payment Jun 23 Yes $84.00 06/01/2023 HAP Util Payment Jun 23 Yes $2.00 06/01/2023 HAP Util Payment Jun 23 Yes $8.00 06/01/2023 HAP Payment Jun 23 Yes $1,285.00 06/01/2023 HAP Util Payment Jun 23 Yes $89.00 06/01/2023 HAP Payment Jun 23 Yes $653.00 06/01/2023 HAP Payment Jun 23 Yes $331.00 06/01/2023 HAP Payment Jun 23 Yes $461.00 06/01/2023 HAP Payment Jun 23 Yes $624.00 06/01/2023 HAP Payment Jun 23 Yes $357.00 06/01/2023 HAP Payment Jun 23 Yes $905.00 06/01/2023 HAP Payment Jun 23 Yes $675.00 06/01/2023 HAP Payment Jun 23 Yes $1,080.00 06/01/2023 HAP Payment Jun 23 Yes $639.00 06/01/2023 HAP Payment Jun 23 Yes $268.00 06/01/2023 HAP Payment Jun 23 Yes $674.00 06/01/2023 HAP Payment Jun 23 Yes $527.00 06/01/2023 HAP Payment Jun 23 Yes $1,282.00 06/01/2023 HAP Payment Jun 23 Yes $291.00 06/01/2023 HAP Payment Jun 23 Yes $381.00 06/01/2023 HAP Payment Jun 23 Yes $280.00 06/01/2023 HAP Payment Jun 23 Yes $396.00 06/01/2023 HAP Payment Jun 23 Yes $572.00 06/01/2023 HAP Payment Jun 23 Yes $670.00 06/01/2023 HAP Payment Jun 23 Yes $316.00 06/01/2023 HAP Payment Jun 23 Yes $268.00 06/01/2023 HAP Payment Jun 23 Yes $365.00 06/01/2023 HAP Payment Jun 23 Yes $410.00 06/01/2023 HAP Payment Jun 23 Yes $571.00 06/01/2023 HAP Payment Jun 23 Yes $348.00 06/01/2023 HAP Payment Jun 23 Yes $2,924.00 06/01/2023 HAP Payment Jun 23 Yes $287.00 06/01/2023 HAP Payment Jun 23 Yes $849.00 06/01/2023 HAP Payment Jun 23 Yes $749.00 06/01/2023 HAP Payment Jun 23 Yes $900.00 06/01/2023 HAP Payment Jun 23 Yes $150.00 06/01/2023 HAP Payment Jun 23 Yes $4,466.00 06/01/2023 HAP Payment Jun 23 Yes $710.00 06/01/2023 HAP Payment Jun 23 Yes $880.00 06/01/2023 HAP Payment Jun 23 Yes $675.00 06/01/2023 HAP Payment Jun 23 Yes $405.00 06/01/2023 HAP Payment Jun 23 Yes $340.00 06/01/2023 HAP Payment Jun 23 Yes $1,121.00 06/01/2023 HAP Payment Jun 23 Yes $925.00 06/01/2023 HAP Payment Jun 23 Yes $5,846.00 06/01/2023 HAP Payment Jun 23 Yes $386.00 06/01/2023 HAP Payment Jun 23 Yes $342.00 06/01/2023 HAP Payment Jun 23 Yes $327.00 06/01/2023 HAP Payment Jun 23 Yes $394.00 06/01/2023 HAP Payment Jun 23 Yes $324.00 06/01/2023 HAP Payment Jun 23 Yes $247.00 Payment Date Document Description Cleared Amount 06/01/2023 HAP Payment Jun 23 Yes $579.00 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers Posted Payments www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 2 7/6/2023 11:46:53 AM Printed by: Julie Bakken 14 of 41 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers 6031 No CHK 6032 No CHK 6033 No CHK 6034 No CHK 6035 No CHK 6036 No CHK 6037 No CHK 6038 No CHK Payments $40,348.32 $40,348.32 Count 39 22 61 End of Report $8,264.32 Total:$40,348.32 Project Summary Program - Project Deposits Housing Choice $0.00 Total:$0.00 Type Summary Document Type Amount Direct Deposit (DD)$32,084.00 Check (CHK) Cleared: 60 $40,320.32 Uncleared: 1 $28.00 Total Payments: 61 $40,348.32 06/01/2023 Port Out Payment Jun 23 Yes $784.16 06/14/2023 Fuel Yes $25.00 06/01/2023 HAP Util Payment Jun 23 Yes $18.00 06/01/2023 Port Out Payment Jun 23 Yes $482.16 06/01/2023 HAP Util Payment Jun 23 Yes $48.00 06/01/2023 HAP Util Payment Jun 23 Yes $5.00 06/01/2023 HAP Util Payment Jun 23 No $28.00 06/01/2023 HAP Util Payment Jun 23 Yes $148.00 www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 2 of 2 7/6/2023 11:46:53 AM Printed by: Julie Bakken 15 of 41 50% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rent HAP Repayment 5,744.76 7,673.00 7,673.00 3301 Admin Subsidy 6,123.00 36,597.00 79,201.00 (42,604.00)46% 3301.1 HAP Subsidy 41,331.00 246,969.00 434,498.00 (187,529.00)57% 3450 Fraud Recovery - Admin 50%1,928.24 1,928.24 3450.1 Fraud Recovery - HAP 50%1,928.24 1,928.24 1,928.24 3610 Investment Income (0062)12.44 61.02 105.00 (43.98)58% 3690.1 Other Revenue HAP 30,000.00 (30,000.00)0% TOTAL INCOME 55,139.44 295,156.50 543,804.00 (248,647.50)54% EXPENSES 4150 Travel 25.00 285.17 1,200.00 914.83 24% 4190 Other Admin Expenses (Apps, Service Charges)11.00 230.51 120.00 (110.51)192% 4190.01 Manuals, Subscriptions 240.00 240.00 0% 4190.08 Consulting Fees 1,945.00 1,945.00 0% 4190.2 Management Fees-OTC 21,624.50 93,887.00 72,262.50 23% 4715.1 HAP Occupied Units 39,057.00 240,197.00 394,904.00 154,707.00 61% 4715.P HAP-Portability Out 1,170.00 10,769.00 32,462.00 21,693.00 33% 4716.P Port Out Admin Fee 97.50 723.58 1,423.00 699.42 51% TOTAL EXPENSES 40,360.50 273,829.76 526,181.00 252,351.24 52% SURPLUS 14,778.94 21,326.74 17,623.00 3,703.74 121% Otter Tail County Housing Redevelopment Authority Operating Statement Six Months Ending 06/30/2023 Program: Housing Choice Vouchers Project: Consolidated Percent of Year www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 7/6/2023 11:32:45 AM Printed by: Julie Bakken 16 of 41 Period Amount Balance ASSETS 1111 Cash Unrestricted 7,107.12 68,948.04 1121 Fraud A/R 3,437.00 3,437.00 1129 A/R Tenants 4,236.00 4,236.00 TOTAL ASSETS 14,780.12 76,621.04 LIABILITIES AND SURPLUS LIABILITIES 2112 A/P HAP 1.18 1.18 TOTAL LIABILITIES 1.18 1.18 SURPLUS 2700 Inc & Exp Clearing 4,078.69 2805 Restricted Net Position 22,114.50 2805 Restricted Net Position (Current Year) 1,104.00 (3,997.00) 2806 Unrestricted Position 29,099.93 2806 Unrestricted Position (Current Year) 13,674.94 25,323.74 TOTAL SURPLUS 14,778.94 76,619.86 TOTAL LIABILITIES AND SURPLUS 14,780.12 76,621.04 Otter Tail County Housing Redevelopment Authority Balance Sheet June 2023 Program: Housing Choice Vouchers Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 7/6/2023 11:10:56 AM Printed by: Julie Bakken 17 of 41 Doc Num Voided Type 7261 No CHK 7262 No CHK 7263 No CHK 7264 No CHK 7265 No CHK 7266 No CHK 7267 No CHK 7268 No CHK 01-00000621-00-0 06/01/23 No INV 01-00041004-00-6 06/01/23 No INV 01-00041101-00-0 06/01/23 No INV 01-00041152-00-6 06/01/23 No INV 1143860 06/07/23 No INV Doc Num Voided Type 1009 No CHK 1010 Yes CHK 1012 No CHK 1196 No CHK 1197 No CHK 1308 No CHK 1811 No CHK 2812 No CHK 3551 No CHK 5268 No CHK 5269 No CHK 5606 No CHK 23263 No CHK 025491 No MO 020535972 No MO 020537216 No MO 82378864 No CHK 22-034338526 No MO 22-034338627 No MO 28647057014 No MO Payments $11,358.49 $11,358.49 Count 22 6 5 33 End of Report $790.91 Invoice (INV)$1,171.89 Total:$17,537.36 Project Summary Program - Project Deposits Public Housing - Family $6,178.87 Total:$6,178.87 Type Summary Document Type Amount Check (CHK)$15,574.56 Money Order (MO) Cleared: 20 $6,178.87 Uncleared: 0 $0.00 Total Deposits: 20 $6,178.87 06/08/2023 Payment - Money Order Yes $40.91 06/06/2023 Payment - Money Order Yes $180.00 06/06/2023 Payment - Check Yes $229.00 06/06/2023 Payment - Money Order Yes $20.00 06/08/2023 Payment - Money Order Yes $100.00 06/30/2023 Payment - Money Order Yes $150.00 06/06/2023 Payment - Check - Salvation Army Yes $246.63 06/20/2023 Payment - Money Order Yes $300.00 06/20/2023 Payment - Check Yes $422.30 06/23/2023 Payment - Check Yes $905.14 06/30/2023 Payment - Check Yes $240.00 06/06/2023 Payment - Check Yes $540.00 06/08/2023 Payment - Check Yes $54.54 06/20/2023 Payment - Check Yes $400.00 06/23/2023 Payment - Check Yes $675.00 06/08/2023 Payment - Check Yes $433.29 06/06/2023 Payment - Check Yes $625.00 06/20/2023 Payment - Check Yes $248.06 06/06/2023 Payment - Check Yes $219.00 06/08/2023 Payment - Check Yes $150.00 Posted Deposits Control Date Document Description Cleared Amount Cleared: 12 $11,052.73 Uncleared: 1 $305.76 Total Payments: 13 $11,358.49 06/01/2023 Water, Electric, Gas, Sewer Yes $337.14 06/07/2023 Electric Yes $72.72 06/01/2023 Water, Electric, Gas, Sewer Yes $240.00 06/01/2023 Water, Electric, Gas, Sewer Yes $224.07 06/30/2023 111 Milne-Henning - Repair Clean Out Tee No $305.76 06/01/2023 Water, Electric, Gas, Sewer Yes $297.96 06/20/2023 504 Marshall, Henning, Plumbing Issues Yes $385.00 06/20/2023 Water, Gas, Sewer Yes $548.89 06/14/2023 Fuel/Supplies Yes $119.43 06/20/2023 Solar Salt Yes $20.40 06/07/2023 Gutter/Material & Labor (206 Foss-Underwood)Yes $8,455.00 06/07/2023 AC Clean & Check - NYM Yes $112.12 Payment Date Document Description Cleared Amount 06/07/2023 216 Foss-Underwood Yes $240.00 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Public Housing Posted Payments www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 7/6/2023 1:24:46 PM Printed by: Julie Bakken 18 of 41 50% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rental 2,712.00 22,645.00 25,000.00 (2,355.00)91% 3401.1 HUD Operating Subsidy 22,110.00 45,000.00 (22,890.00)49% 3401.2 HUD Capital Funds-Operations/Admin 14,363.00 7,000.00 7,363.00 205% 3401.3 HUD Capital Funds-Project 8,455.00 36,971.88 33,000.00 3,971.88 112% 3610 Interest Income (5673/0070)24.17 119.44 40.00 79.44 299% 3690 Other Income (NSF, Late Fee, GR Support)36.00 345.00 21,000.00 (20,655.00)2% 3690.1 Water Charge Income 556.83 3,535.83 6,300.00 (2,764.17)56% 3690.2 Electric Charge Income 258.60 4,488.14 8,550.00 (4,061.86)52% 3690.3 Gas Charge Income 850.43 5,630.69 11,000.00 (5,369.31)51% 3690.31 Sewer Charge Income 653.47 4,134.61 7,350.00 (3,215.39)56% 3690.4 Other Tenant Charges (Maint)500.00 500.00 TOTAL INCOME 13,546.50 114,843.59 164,240.00 (49,396.41)70% EXPENSES 4130 Legal 750.00 750.00 0% 4140 Staff Training 500.00 500.00 0% 4150 Travel 25.05 66.97 1,000.00 933.03 7% 4171 Audit 2,000.00 2,000.00 0% 4190 Other Admin Expenses (Reports, Apps)3.00 3.00 2,100.00 2,097.00 0% 4190.01 Manuals, Subscriptions 500.00 500.00 0% 4190.02 Office Supplies 750.00 750.00 0% 4190.03 Postage 500.00 500.00 0% 4190.06 Advertising 200.00 200.00 0% 4190.08 Consulting Fees 1,945.00 1,945.00 0% 4190.2 Management Fees-OTC 23,211.42 17,000.00 (6,211.42)137% 4310 Water 710.34 3,121.72 6,400.00 3,278.28 49% 4320 Electric 783.97 3,692.90 8,700.00 5,007.10 42% 4330 Gas 835.81 5,331.55 11,500.00 6,168.45 46% 4331 Sewer 791.98 3,600.51 7,500.00 3,899.49 48% 4400 Maintenance - Tools & Equip 750.00 750.00 0% 4420 Maintenance - Materials 339.80 350.96 5,500.00 5,149.04 6% 4430 Maintenance - Contracts 1,063.28 2,793.90 20,000.00 17,206.10 14% 4431 Garbage and Trash Removal Contracts 500.00 500.00 0% 4510 Insurance 15,762.60 15,763.00 0.40 100% 4520 PILOT 2,689.72 1,200.00 (1,489.72)224% 4521 Assessments 1,237.36 1,200.00 (37.36)103% 4570 Collection Loss 500.00 500.00 0% 4580 Interest Expense (on Security Deposits)300.00 300.00 0% 4600 Capital Fund Projects 8,455.00 36,971.88 33,000.00 (3,971.88)112% 4610 Extraordinary Maintenance 3,500.00 3,500.00 0% TOTAL EXPENSES 13,008.23 98,834.49 143,558.00 44,723.51 69% SURPLUS 538.27 16,009.10 20,682.00 (4,672.90)77% Otter Tail County Housing Redevelopment Authority Operating Statement Six Months Ending 06/30/2023 Program: Public Housing Project: Consolidated Percent of Year www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 7/6/2023 12:28:55 PM Printed by: Julie Bakken 19 of 41 Period Amount Balance ASSETS 1111 Cash 1,499.81 105,925.92 1114 Tenant Security Deposit Cash 9,044.40 1122 A/R Tenants (1,042.29)1,061.06 1122.1 Allowance for Doubtful Accts (200.00) 1122.9 A/R Tenant Repayment Agreements (150.00)350.00 1400.5 Accumulated Depreciation (1,062,666.01) 1400.6 Land 32,990.31 1400.7 Buildings 1,688,010.51 1400.8 Furn/Equip/Mach - Dwellings 21,132.31 TOTAL ASSETS 307.52 795,648.50 LIABILITIES AND SURPLUS LIABILITIES 2111.1 A/P Tenants 98.07 101.25 2114 Tenant Security Deposits 9,044.40 2240 Tenants Prepaid Rent (328.82)1,700.97 TOTAL LIABILITIES (230.75)10,846.62 SURPLUS 2700 Income/Expense Clearing Account (3,829.09) 2700 Income/Expense Clearing Account (Current Year) 538.27 16,009.10 2802 Invested in Capital Assets, Net of Related Debt 679,466.94 2806 Unrestricted Net Position 93,154.93 TOTAL SURPLUS 538.27 784,801.88 TOTAL LIABILITIES AND SURPLUS 307.52 795,648.50 Otter Tail County Housing Redevelopment Authority Balance Sheet June 2023 Program: Public Housing Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 7/6/2023 12:28:54 PM Printed by: Julie Bakken 20 of 41 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 4. PUBLIC HEARING Otter Tail County Affordable Senior Housing Program Continued from June 12, 2023 21 of 41 1ir EOU/\L HOUSING OPPORTUNITY OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _July 18, 2023__ BOARD MEETING DATE AGENDA ITEM #4A Community Assistance ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 6/6/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Continued Public Hearing Otter Tail County Affordable Senor Housing Program PROPOSED REQUEST/JUSTIFICATION The HRA Board passed a motion to continue the public hearing to July 18, 2023 at is special meeting on June 12, 2023. The continuance was required because staff did not notify the regional development commission within the prescribed timeframe by statute. Jill Amundson from West Central Initiative will be in attendance to offer comments on this proposal. The purpose of this public hearing is to solicit comments regarding the HRA initiative to construct affordable senior housing in communities in the county (the “Program”) with the exception of Fergus Falls and Perham. Minnesota Statute Chapter 462C requires that the HRA conduct a public hearing when it pursues: “making or purchasing loans pursuant to section 462C.05 to finance multifamily housing developments or the rehabilitation of multifamily housing developments if the program is submitted for review pursuant to section 462C.04, subdivision 2.” Attached is the description of the “Otter Tail County Affordable Senior Housing Program”. A demonstration development, or the “Initial Project”, is proposed for a one-acre property located at 101 and 103 Court Street in Dalton. The development will consist of two one-story triplexes and each unit has a one car garage. Staff recommends that the Board reconvene the public hearing and take comment, then close the hearing, and consider approval of the authorizing resolution, which is next on the agenda. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED The HRA has been working with the City of Dalton to construct residential housing on the property since 2020. EXECUTIVE DIRECTOR DATE: Barbara Dacy 7/13/2023 ATTACHMENT LIST: Otter Tail County HRA Affordable Senior Housing Program FINANCIAL IMPLICATIONS: $1.6 million BUDGETED: Pending YES NO FUNDING: Tax Levy COMMENTS 22 of 41 76960667v2 Amended 7/13/2023 OTTER TAIL COUNTY AFFORDABLE SENIOR HOUSING PROGRAM PROGRAM FOR FINANCING AN AFFORDABLE MULTIFAMILY RENTAL HOUSING DEVELOPMENT Proposal Authority. Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the Otter Tail County Housing and Redevelopment Authority, in and for Otter Tail County, Minnesota (the "HRA") is authorized to develop and administer programs of making or purchasing loans to finance multifamily housing developments. Minnesota Statutes, Section 462C.05, subdivision 2, provides that such multifamily housing developments can be designed to be affordable. The HRA intends to undertake an affordable multifamily rental housing development finance program (this "Program") to construct an affordable housing development for low-income elderly persons (as further defined herein) and households (“Affordable Senior Housing”) within the HRA's area of operation in Otter Tail County, subject to Minnesota Statutes, Sections 469.001 through 469.047 (the "HRA Law") . Minnesota Statutes, Section 462C.07, provides that the HRA may issue one or more series of tax-exempt and/or taxable revenue bonds or other obligations (the "Bonds") pursuant to the Act and HRA Law to assist in financing the Program. In addition, the HRA contemplates entering into other financing instruments, as is available, through state, county, non-profit and/or private financial institutions in order to accomplish the Program. General Description of the Project and Location. The HRA intends to finance a development, to be known as “North Fields of Dalton” (the “Project”), as hereinafter described, which shall be owned and operated by the HRA. The HRA proposes to enter into a “Loan Agreement” with Otter Tail County to assist in financing the Project. The Project consists of the acquisition of one acre of property in Dalton, Minnesota (the “City”), and the construction of two triplexes thereon. Each triplex will offer one-bedroom and two-bedroom units and is expected to be known as North Fields of Dalton, located at 101 and 103 Court Street in the City. 23 of 41 The Project is designed and is intended for residency by elderly persons or households who meet certain affordability standards as defined herein and pursuant to the Act. The Project will consist of the following living units: Operation of the Project. The HRA will operate the Project in accordance with applicable development restrictions, and all construction will be subject to applicable state and local building codes. The Project, as proposed, is not inconsistent with any Housing Plan previously adopted by the HRA under Minnesota Statutes, Chapter 462C. The HRA will be required to operate the Project in accordance with state and local anti-discrimination laws and ordinances. Loan Agreement. The HRA has indicated that the original principal amount of the loan, expected to be made by the County no later than December of 2023, to finance the Project, is approximated at $900,000. Substantially all of the net proceeds of the loan will be used to pay the costs of the Project, including but not limited to driveways, and/or other such facilities as the HRA may determine necessary. The loan will be made pursuant to the Act and HRA Law and will be payable primarily from the HRA Special Benefit Levy. Monitoring. The HRA expects to enter into suitable agreements with necessary parties and will be responsible to ensure compliance with the objectives of this Program, as well as with the requirements of applicable law. Affordability. The Project has been designed to be affordable, and all units thereof shall be leased to persons or households with adjusted gross incomes not exceeding 80% of AMI, all in accordance with the Act, HRA Law, and other applicable state and federal laws. Use of Loan Agreement. The proceeds of the Loan Agreement will be loaned to the HRA pursuant to a loan agreement (the "Loan Agreement") by and between the County and the HRA. The HRA will be required, pursuant to the Loan Agreement, to make payments sufficient to pay when due the principal of and interest on the Loan. Units Number of Units Square Footage Per Unit Estimated Initial Rents Per Unit 1 BR/1 1/2 Bath 2 875 $723/month 2 BR/2 Bath 4 1,089 $917/month 24 of 41 Initial Project Costs. The costs of the Project and the program of financing the Project, including specifically the costs of the County, generally will be paid or reimbursed by the HRA. Adopted by the Otter Tail County Housing and Redevelopment Authority, in and for Otter Tail County, Minnesota on ____________, 2023. 25 of 41 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 5. NEW BUSINESS 26 of 41 1ir EOU/\L HOUSING OPPORTUNITY OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _July 18, 2023__ BOARD MEETING DATE AGENDA ITEM #5A Community Assistance ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 7/14/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 246 Approving Otter Tail County Affordable Senor Housing Program PROPOSED REQUEST/JUSTIFICATION The public hearing was continued in order to permit West Central Initiative to make comments on the plan as required by statute. Attached is the description of the “Otter Tail County Affordable Senior Housing Program” in Exhibit A of the resolution. A demonstration development, or the “Initial Project”, is proposed for a one-acre property located at 101 and 103 Court Street in Dalton. The development will consist of two triplexes, slab on grade, and each unit has a one car garage. The housing program states the maximum income is 80% AMI. There is a minor correction to the program. The phrase “…not to exceed $900,000” in relation to the county’s proposed loan, is rewritten as “approximated at $900,000. While staff anticipates that the costs as estimated will come in as planned, it is best to generalize the potential amount. The County Board is conducting a public hearing on the proposed loan on July 25 and will need to approve the loan agreement and loan amount at its August 8, 2023 meeting. Staff recommends the Board adopt the Resolution as presented. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED The HRA has been working with the City of Dalton to construct residential housing on the property since 2020. EXECUTIVE DIRECTOR DATE: Barbara Dacy 7/14/2023 ATTACHMENT LIST: Otter Tail County HRA Affordable Senior Housing Program FINANCIAL IMPLICATIONS: $1.6 million BUDGETED: Pending YES NO FUNDING: Tax Levy COMMENTS 27 of 41 1 RESOLUTION NO. 246 RESOLUTION APPROVING A HOUSING PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C WHEREAS, pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the Otter Tail County Housing and Redevelopment Authority (the “Authority”) is authorized to develop and administer programs of making and purchasing loans to finance multifamily housing developments and functionally related facilities; and WHEREAS, Minnesota Statutes, Section 462C.05, subdivision 2, provides that such multifamily housing developments can be designed to be affordable for persons or households of low to moderate income; and WHEREAS, the City of Dalton, Minnesota (the "City"), has previously determined that there is a need for the Authority to exercise its powers within the City and empowered the Authority to do so at its meeting on May 4, 2021; and WHEREAS, the Authority proposes to undertake an affordable multifamily rental housing development finance program (the "Program") for affordable senior housing, which shall be owned and operated by the Authority, and is further described in Exhibit A; and WHEREAS, pursuant to Minnesota Statutes, Section 462C.04 subd. 2, the Authority conducted a Public Hearing (the “Hearing”) after duly publishing notice of the time, place, and purpose therefor, not less than fifteen days nor more than 30 days prior to the date on which the hearing is held, in a manner appropriate to inform the public; and WHEREAS, the Hearing was conducted on Tuesday, June 12, 2023 at 8:00 a.m., and was subsequently continued to the regular Authority meeting July 18, 2023 at 11:45 a.m.; and WHEREAS, the Regional Development Commission for Otter Tail County is West Central Initiative (the “WCI”) was duly notified and appeared before the Authority on July 18, 2023; and NOW THEREFORE, BE IT RESOLVED by the, Minnesota as follows: 1. The Program, substantially in the form attached hereto as Exhibit A, is hereby approved. 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 18th day of July, 2023. 28 of 41 76978909v3 Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 29 of 41 76960667v2 EXHIBIT A OTTER TAIL COUNTY AFFORDABLE SENIOR HOUSING PROGRAM PROGRAM FOR FINANCING AN AFFORDABLE MULTIFAMILY RENTAL HOUSING DEVELOPMENT Proposal Authority. Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the Otter Tail County Housing and Redevelopment Authority, in and for Otter Tail County, Minnesota (the "HRA") is authorized to develop and administer programs of making or purchasing loans to finance multifamily housing developments. Minnesota Statutes, Section 462C.05, subdivision 2, provides that such multifamily housing developments can be designed to be affordable. The HRA intends to undertake an affordable multifamily rental housing development finance program (this "Program") to construct an affordable housing development for low-income elderly persons (as further defined herein) and households (“Affordable Senior Housing”) within the HRA's area of operation in Otter Tail County, subject to Minnesota Statutes, Sections 469.001 through 469.047 (the "HRA Law") . Minnesota Statutes, Section 462C.07, provides that the HRA may issue one or more series of tax-exempt and/or taxable revenue bonds or other obligations (the "Bonds") pursuant to the Act and HRA Law to assist in financing the Program. In addition, the HRA contemplates entering into other financing instruments, as is available, through state, county, non-profit and/or private financial institutions in order to accomplish the Program. General Description of the Project and Location. The HRA intends to finance a development, to be known as “North Fields of Dalton” (the “Project”), as hereinafter described, which shall be owned and operated by the HRA. The HRA proposes to enter into a “Loan Agreement” with Otter Tail County to assist in financing the Project. The Project consists of the acquisition of one acre of property in Dalton, Minnesota (the “City”), and the construction of two triplexes thereon. Each triplex will offer one-bedroom and two-bedroom units and is expected to be known as North Fields of Dalton, located at 101 and 103 Court Street in the City. 30 of 41 The Project is designed and is intended for residency by elderly persons or households who meet certain affordability standards as defined herein and pursuant to the Act. The Project will consist of the following living units: Operation of the Project. The HRA will operate the Project in accordance with applicable development restrictions, and all construction will be subject to applicable state and local building codes. The Project, as proposed, is not inconsistent with any Housing Plan previously adopted by the HRA under Minnesota Statutes, Chapter 462C. The HRA will be required to operate the Project in accordance with state and local anti-discrimination laws and ordinances. Loan Agreement. The HRA has indicated that the original principal amount of the loan, expected to be made by the County no later than December of 2023, to finance the Project, is approximated at $900,000. Substantially all of the net proceeds of the loan will be used to pay the costs of the Project, including but not limited to driveways, and/or other such facilities as the HRA may determine necessary. The loan will be made pursuant to the Act and HRA Law and will be payable primarily from the HRA Special Benefit Levy. Monitoring. The HRA expects to enter into suitable agreements with necessary parties and will be responsible to ensure compliance with the objectives of this Program, as well as with the requirements of applicable law. Affordability. The Project has been designed to be affordable, and all units thereof shall be leased to persons or households with adjusted gross incomes not exceeding 80% of AMI, all in accordance with the Act, HRA Law, and other applicable state and federal laws. Use of Loan Agreement. The proceeds of the Loan Agreement will be loaned to the HRA pursuant to a loan agreement (the "Loan Agreement") by and between the County and the HRA. The HRA will be required, pursuant to the Loan Agreement, to make payments sufficient to pay when due the principal of and interest on the Loan. Units Number of Units Square Footage Per Unit Estimated Initial Rents Per Unit 1 BR/1 1/2 Bath 2 875 $723/month 2 BR/2 Bath 4 1,089 $917/month 31 of 41 Initial Project Costs. The costs of the Project and the program of financing the Project, including specifically the costs of the County, generally will be paid or reimbursed by the HRA. Adopted by the Otter Tail County Housing and Redevelopment Authority, in and for Otter Tail County, Minnesota on ____________, 2023. 32 of 41 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _July 18, 2023__ BOARD MEETING DATE AGENDA ITEM #5B Community Assistance ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 7/14/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 247 Approving Housing Choice Voucher Processing Policy PROPOSED REQUEST/JUSTIFICATION Staff continues its work to present appropriate policies for Board approval as they pertain to oversight of financial procedures and housing programs. The purpose of Resolution No. 247 is to establish a process to regularly monitor the calculation of tenant rent payments, housing assistance payments to landlords, and to ensure proper electronic reporting to HUD. For example, the policy dictates that the personnel calculating the housing assistance payments to landlords are not to be responsible for issuing checks. This is an advantage of the Joint Powers Agreement with the County because there are sufficient personnel to maintain proper internal controls. Staff recommends the Board adopt the Resolution as presented. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Barbara Dacy 7/14/2023 ATTACHMENT LIST: Resolution No. 247 FINANCIAL IMPLICATIONS: NA BUDGETED: NA YES NO FUNDING: COMMENTS 33 of 41 RESOLUTION NO. 247 APPROVING THE HOUSING CHOICE VOUCHER PROCESSING POLICY WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) operates the Housing Choice Voucher rental assistance program (“HCV Program”); and WHEREAS, the Authority has determined it prudent to adopt a policy guiding the monitoring of tenant rent calculations, housing assistance payments to residential rental property owners, and electronic reporting to the Department of Housing and Urban Development (“HUD”); and WHEREAS, the Authority has determined that the provisions contained in the Housing Choice Voucher Processing Policy (the “Policy”) as represented in Exhibit A are necessary and appropriate. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Policy represented in Exhibit A is hereby adopted. 2. That the Executive Director is authorized, empowered, and directed to undertake any other tasks as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolution. 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 18th day of July, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 34 of 41 EXHIBIT A HOUSING CHOICE VOUCHER PROCESSING POLICY (Housing Assistance Payments – HAP) It is the policy of the HRA to ensure HAP payments are accurate, timely, and are eligible to support program participants. The HRA’s internal control policies covers both payments to landlords and the correct calculation of tenant rent to arrive at the landlord HAP amount. HAP payments to landlords involve several processes that must be followed in order to ensure correct and timely payments. The method of HAP disbursements used by the HRA includes payment by check and automated clearing house transactions (ACH). To ensure effective controls for the disbursement of HRA funds, proper documentation should be obtained prior to the payment and processing of HAP payments. Staff who are assigned the responsibility of maintaining tenant files should be properly trained to calculate tenant rent and HAP amounts. Once trained, staff should be kept informed on updates to regulations that affect the procedures for tenant rent and HAP calculations. Staff who are assigned to process/issue payments should be properly trained in the payment processing procedure. Staff who are assigned the responsibility of data entry into the Voucher Management System (VMS) should be properly trained in that process. Note: Refer to HRA’s Tenant Rent Calculation policy and procedures, if necessary. HAP PROCESSING PROCEDURES Accuracy of HAP Amount The Housing Assistance Coordinator is responsible for the accuracy of the payments. To supplement the process, the Housing Assistance Coordinator, in conjunction with the Housing Program Supervisor, is required to maintain a quality control system to verify the accuracy of the HAP calculation in the tenant files. Given the number of vouchers currently processed by the HRA, at minimum, biannual reviews of tenant files and HAP rent calculations should be conducted to ensure amounts are calculated properly and documentation is retained in tenant files. General HAP Processing Controls Proper segregation of duties must be followed to mitigate the threat of fraud or theft. There should be specific individuals authorized to enter landlord data into the software system. These individuals should not have the authority to create the ACH or approve the pre-payment report. For ACH transactions, the submitter may not be the same person as the person approving the ACH. Blank HAP checks will be stored in a secured area. 35 of 41 218-998-8730 ottertailcounty.gov OTTER TAIL COUNTY I HOUSING Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 '5) EOU/\1. HOUSING OPPORTUNITY hra@co.ottertail.mn.us HAP Payment Schedule HAP payments will be generated once a month on the 1st. To account for payment processing time, the actual payment (i.e., check run) may occur earlier (i.e., the 30th or 31st of the previous month), but the date of the check/deposit (if ACH) will be on or after the 1st subject to weekends and holidays. 1st of the month HAP payments will be distributed/deposited no later than the 5th of each month. HAP checks are not to be given to a landlord earlier than the date shown on the check. HAP Payment Processing The processing of HAP begins with the Housing Assistance Coordinator. A pre-payment processing report (sometimes referred to as a HAP register) will be generated and reviewed by the Housing Assistance Coordinator. The Housing Program Supervisor or Executive Director’s approval must be obtained prior to the actual processing of HAP payments. A HAP processing monitoring report should be used to document the actual approval of the payments. An approved pre-payment processing report will be provided to the Accounting Specialist. The report will include the total amount of HAP payments to be processed in the payment cycle. The Accounting Specialist shall review and confirm HAP payments to be processed and complete the procedures to prepare the checks for printing and advise the Finance Supervisor to print the checks. The Finance Supervisor will then generate the checks and the Accounting Specialist will upload the ACH file to the bank. HAP payments should be generated from the HRA’s accounting software system. The total HAP payment amount will be recorded in the general ledger system. IRS information for the 1099 forms will be maintained in the software system for landlords. HAP Monitoring Review of the HAP registers will be performed by the Housing Assistance Coordinator to determine if there are any checks printed to unfamiliar landlords or any single large amounts which may appear irregular. The Housing Assistance Coordinator and Accounting Specialist shall review the financial information regarding HAP payments on a minimum quarterly basis. HAP Processing for Special Voucher Types and Port-In Activity For VMS purposes, the special voucher types should have separate general ledger accounts for tracking of HAP costs. The HRA will also track payments for the previous months to ensure accurate reporting of VMS data. 36 of 41 The HRA will track accounts receivable from port-in activity in the general ledger system or separately on a spreadsheet. The reporting should include HAP and administrative fee charges to the initial HRA as a revenue to be offset against a receivable balance. When the initial HRA reimburses the HRA, the cash received should be credited against the receivable balance. 37 of 41 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 6. DISCUSSSION 2024 Strategic Initiatives and Preliminary 2024 Budget (to be distributed under separate cover) 38 of 41 1ir EOU/\L HOUSING OPPORTUNITY OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 7. EXECUTIVE DIRECTOR REPORT 39 of 41 1ir EOU/\L HOUSING OPPORTUNITY MEMO TO: Otter Tail County HRA Board of Commissioners Wayne Johnson, Chairperson Lee Rogness, Vice Chairperson Kurt Mortenson, Secretary Betty Murphy, Commissioner Jeff Ackerson, Commissioner FROM: Barbara Dacy, Executive Director, Otter Tail County HRA DATE: July 18, 2023 SUBJECT: Executive Director Report 1. Minnesota Housing Funding Applications. At the June 20, 2023 meeting, the Board adopted Resolution No. 245 empowering staff to submit applications for Housing Infrastructure Bonds (HIB) for affordable senior rental housing and for the Community Impact Fund for “value gap” funding for new affordable single-family homes in Pelican Rapids. The CDA will be discussing the Community Impact Fund application for workforce housing at its meeting after the HRA meeting. In addition to the former garage site, the CDA will discuss including the tax forfeit lot owned by the HRA. An update on the HIB application will be presented at the meeting. I attended the New York Mills City Council meeting on July 11, 2023 to obtain approval of a purchase agreement for the two lots proposed for the triplexes. In addition, I will be attending an upcoming meeting of the Vergas HRA/EDA regarding the status of the application. The Ottertail City Council approved a purchase agreement for the lots at their June meeting. 2. 2024 Budget and Levy. Staff continues to work on refining the proposed budget and levy request for preliminary discussion at the Board meeting. Information will be electronically distributed to the Board prior to the meeting. 3. Housing Program Supervisor Position. I am very pleased to report that Ms. Tanya Westra has been hired as the Housing Program Supervisor. The advertisement for the Project Manager position has been issued. She officially starts her new position as of July 16, 2023. 40 of 41 218-998-8730 @ HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (!) EOUN. HOUSING OPPORTUNITY @ ottertailcounty.gov OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 8. GENERAL DISCUSSION TOPICS BY COMMISSIONERS and ADJOURN 41 of 41 1ir EOU/\L HOUSING OPPORTUNITY