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Housing & Redevelopment Authority - HRA-Packet-09-19-2023 Supporting Documents - 09/19/2023
OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY & COMMUNITY DEVELOPMENT AGENCY BOARD PACKET September 19, 2023 Page 1 of 40 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Otter Tail Lake Room 500 West Fir Avenue, Fergus Falls, MN September 19, 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, August 15, 2023 B.Finance Committee Meeting Minutes, September 5, 2023 C.Housing Choice Voucher Rental Assistance Program Report August 2023 D.Community Housing Investment Programs Report August 2023 E.Public Housing Program Report August 2023 F.Check Report and August 2023 Financial Reports 4. New Business A.Resolution No. 251 Adopting Revenue Cycle Cash Management and Program Funding Policy 5. Discussion A. North Fields of Dalton Update B.Statewide Local Housing Aid (SAHA) 6. Executive Director Report 7. General Discussion – Topics by Commissioners 8. Adjourn Page 2 of 40 COMMUNITY DEVELOPMENT AGENCY MEETING AGENDA 1:00pm 1. Call to Order 2.Approval of Agenda 3. Approval of Consent Agenda A. August 15, 2023 Regular Meeting Minutes B. August 2023 Financial Reports 4. Reports and Presentations A. Director Status Report B. Committee Reports Housing Growth and Investment Workforce Support and Development Childcare Investment (did not meet) D.‘On the Map’ Report E. Board Member Updates 5. Regular Business A. Consideration of Community Growth Partnership Application: City of New York Mills/Old Ten Center Renovation B. Consideration of Draft Professional Services Agreement with WSB C. Authorize Signature of 2022 Audit Engagement Letter with Office of State Auditor 6. Discussion and Communications A. Other Communications B. Upcoming meeting: Tuesday, October 17, 2023 at 1:00pm, Commissioner’s Room, Government Services Center with HRA Board meeting beginning at 11:45am 7. Adjourn Page 3 of 40 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 3. CONSENT AGENDA Page 4 of 40 1ir EOU/\l. HOUSING OPPORTUNITY The Otter Tail County HRA Board of Commissioners Met for a regular meeting on August 15, 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 Leland Rogness, Vice Chairperson Absent: Betty Murphy Others Present: Barbara Dacy, OTC HRA Executive Director Tanya Westra, OTC HRA Project Manager Amy Baldwin, OTC CDA community Development Director Julie Bakken, OTC HRA Accounting Specialist Paula Grunewald, OTC HRA Administrative Assistant Tanya Bakken, Dalton Clerk/Treasurer 1.CALL TO ORDERChairperson Johnson called the meeting to order at 11:45 am. 2.APPROVAL OF AGENDA Motion made by Kurt Mortenson second by Jeff Ackerson to approve the August 15, 2023 Agenda without changes. Motion passed unanimously. 3.APPROVAL OF CONSENT AGENDA ITEMSMotion made by Jeff Ackerson, second by Lee Rogness to approve the Consent Agenda as presented. Motion passed unanimously. 4.PUBLIC HEARING CONTINUED FROM JUNE 20, 20232024 PHA Annual and Capital Fund Plans The Public Hearing reconvened at 11:49 am. HRA Executive Director, Barbara Dacy stated the 3 items of the 2024 Annual Plan and Capital Plan that need to be changed: 1). Annual Plan; 2) Capital Plan; and 3). Administrative Policies. 1) The Annual Plan includes a minor change to the Strengthening Communities Initiative. For 2024, thehousing construction initiative will be in the city of Pelican Rapids to create 3 new affordable homesinstead of Battle Lake. The Dalton housing construction initiative will change from constructing up to 10single family homes to construction of 6 affordable senior housing units. 2)Dacy reported on the proposed changes to the definition of “Significant Amendment” to the 5-Year CapitalPlan, which are 1) when there is a new work activity that would exceed $50,000, and 2) when there areemergencies of fire, water, and/or casualty loss that impact the health and safety of the residents, a publichearing is not necessary. She also explained that the Capital Fund Five Year Action Plan for 2021-2025 Page 5 of 40 218-998-8730 @ 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 @ otterta ilcounty.gov Pg. 2 includes shifting 2022, 2023 and 2024 Capital Fund allocations to the repair/replacement of decks and radon testing. 3)Dacy stated that the Administrative Policies to the Housing Choice Voucher Administrative plan includeroutine changes to procedures, documents and electric transmission of applications and other required documents through the HRA software tenant portal.4)She stated that the changes to Public Housing Admissions and Continued Occupancy policy repeals theprevious policy from 2018 at agency transition and other updates that are consistent with current federalrequirements, including the use of HRA software tenant portal. The Chair noted that no one was present either online or in person for the public hearing. Chairperson Johnson asked three times if there was any other comments and hearing none, the Chair closed the hearing. 5.NEW BUSINESSA.Resolution No. 248 Adopting 2024 PHA Annual and Capital Fund Plans. Motion made by KurtMortenson, second by Lee Rogness to approve Resolution No. 248. Motion passed unanimously. B.Resolution No. 249 Approving Special Benefit Levy for Taxes Payable 2024. Director Dacy stated that theproposed levy request for 2024 should be $1,513,771 instead of the amount indicated in the packet’sResolution No. 249 of $1,513,571. A revised resolution was distributed the Board with the correct amount.Motion made by Lee Rogness, seconded by Kurt Mortenson to approve Resolution No. 249. Motion passedunanimously. C.Resolution No. 250 Adopt Fund Balance PolicyDirector Dacy stated that this policy is very similar to the county’s policy. She stated that at year end the totalof “committed, assigned, and unassigned funds” should equal at least 5 months of operating expenditure. Thepolicy also states that the Executive Director shall report to the HRA Board if the balance is below policy andundertake procedures to replenish the balance. Motion made by Jeff Ackerson, second by Lee Rogness toapprove Resolution No. 250. Motion passed unanimously. Chairperson Johnson stated that this is a typicalapproach. 6.EXECUTIVE DIRECTOR REPORT1.North Fields of Dalton Construction EstimateDirector Dacy stated that a final construction estimate has not been received from the contractors. She statedthat there may be a need for a frost footing due to the type of clay soil conditions. She stated staff is contacting Braun Intertech for consultation. Tanya Bakken, Dalton City Clerk stated that the estimate from the engineering company was higher than expected. She gave her thanks and affirmation from the city of Dalton to provide utilities for the senior housing construction. 2.2022 Annual Audit and Reporting RequirementsThe HRA Finance Committee is planning to go over the 2022 Annual Audit on September 5. Ms. Dacydistributed hard copies of the Audit. 3.Project Manager PositionDacy stated that an offer has been given and staff is awaiting a response. 4.Training BudgetDacy stated that because a new staff person will be hired, it is likely that additional training costs will beincurred over budget. She stated that there are other budget categories though that are under expensed. Page 6 of 40 Pg. 3 7. GENERAL DISCUSSION – TOPICS BY COMMISSIONERS None. 8. ADJOURNMENT At 12:36 pm a motion was unanimously carried to adjourn the meeting. __________________________________________________ ___________________ Kurt Mortenson/Secretary/Clerk Date Page 7 of 40 The Otter Tail County HRA Board of Commissioners Met for a Finance Committee meeting on September 5, 2023 at 3:30 p.m. At the Otter Tail County Government Services Center 500 W Fir Ave, Fergus Falls, MN Board Members Present: Wayne Johnson, Chairperson Leland Rogness, Vice Chairperson Others Present: Barbara Dacy, OTC HRA Executive Director Tanya Westra, OTC HRA Project Manager Julie Bakken, OTC HRA Accounting Specialist Kris Vipond, OTC Assistant Finance Director Dawn Godel, OTC Accounting Supervisor Paula Grunewald, OTC HRA Administrative Assistant Bryce Karel, Brady Martz & Associates, P.C. Amy Baldwin, OTC CDA Director – arrived around 4:00 p.m. 1. 2022 Audited Financial Statements Bryce Karel, Brady Martz & Associates, P.C., stated he was from the Fargo branch of Brady Martz & Associates, P.C. He gave an overview of the 2022 audit and highlighted the Management’s Discussion and Analysis, Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, Statement of Cash Flows, Notes to the Financial Statements, Client Specific Disclosure, Combining Schedule of Net Position (breaking out Public Housing, Section 8 and General & State/Local), Combining Schedule of Revenues, Expenses and Changes in Net Position, Combining Schedule of Cash Flows, and Schedule of Capital Fund Costs. He also reported on the Compliance Section and Schedule of Findings and Responses. Mr. Karel also responded to questions about the loss on Disposal of Capital Assets reported on page 10 and 19, and about noncurrent assets on page 24 pertaining to the various rehabilitation program questions. Rogness stated that the Committee should recommend the HRA Board accept the 2022 Audit. Johnson agreed and noted that the electronic reporting is a duty of staff to complete prior to the deadline. Johnson stated this was a great audit report. Mr. Karel left the meeting at this time. 2. HRA FINANCIAL POLICIES Director Dacy handed out a copy of a letter from Lucia Clausen, Director, Office of Public Housing, dated January 30, 2023 regarding the findings of the 2021 Audit, which Ms. Dacy stated, are the same for 2022. Ms. Dacy stated that the key message from this letter is that the Board of Commissioners should participate in the supervision and financial oversight of the Authority. Ms. Dacy stated that this is part of the purpose of the Finance Committee is to monitor these findings. She also stated that at the end of the letter there is a recommendation to establish policies and procedures and to continuously monitor the “environment to ensure that procedures and policies are updated when needed”. Director Dacy reviewed the status of updating and adopting various policies. She stated that the accounting policies adopted to date include the Investment Policy, Capital Assets Policy, HAP Processing Policy, and Fund Page 8 of 40 218-998-8730 @ 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 Balance Policy. She stated that Finance staff is working on approximately 15 additional financial policies which are typical and routine policies. She stated that they will be presented at a future Finance meeting, before the end of the year, to review and bring forward for HRA’s Board approval. She noted that the 2010 Procurement Policy will also be presented for review and approval. It was requested that future Finance Meetings be scheduled at 3:30 pm. Also the Commissioners would like to see the policies in a collective manner which will serve ultimately as a HRA Policy Manual. 3. GENERAL DISCUSSION – TOPICS BY COMMISSIONERS Kris Vipond, Otter Tail County Assistant Finance Director, stated that Julie Bakken, HRA Accounting Specialist, has done a lot of work with the required financial reporting and policies, and has learned quickly in a short amount of time. Rogness and Johnson agreed and complemented staff on the audit on behalf of the HRA. Page 9 of 40 8/31/2023 9/1/2023 Difference 40,665.50$ 41,230.50$ $565.00 93 94 1 *HAP Transactions 38,334.00$ 38,819.00$ *Utility Reimbursements 444.00$ 428.00$ *HAP Adjustment (96.00)$ * Portability Tranactions (Out) 1,882.00$ 1,882.00$ 4.00$ 4.00$ * Portablilty Admin Fee (Paid)97.50$ 97.50$ -$ 7/31 8/1 New Admissions 1 End Participation 0 Shop Mode/ARS 0 Ports-Out Paid 2 2 Ports Out Pending 0 0 Ports In Pending 0 1 9/11/2023 Waiting List/To Date 6 Applications in Progress 19 Vouchers "on the street"20 ELI%92% Monthly Trend Report*Units Available Units Leased Leasing %Budget % Per Unit $ 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$ July 2023 144 95 70.4% 102.2% 585.63$ August 2023 144 93 68.7% 95.8% 437.26$ *Leasing % and Budget % based on cumulative activity during calendar year Per Unit $ is rolling three month average *Portability Utility Reimbursement *Hold Landlord Transaction OTC Section 8 Housing Choice Voucher Rental Assistance Program Summary of Actions August 31, 2023 Program Total Financial Transaction Paid This Month* UML (Unit Months Leased or # of Households) Page 10 of 40 &, OTTE:R 'TAIIL ~, COUNTY -MINNESOTA 21 8-998-8730 HOUSINIG ANID REDEVIEL.OPMIENT AUTHORITY ottertailcounty.gov Go,v,e;rn mein,t Services Center 500 Wes:t Fir Avenue Fergus Falls. MN 56537 hra@ottertailcounty.gov COMMUNITY HOUSING INVESTMENT PROGRAMS (CHIP) BOARD REPORT August 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 2 1 On-Going Residential Owner-Occupied Leverage (ROHL) 1 1 Rent Rehab - RR On-Going Affordable Rental Unit Construction - ARUC On-Going BATTLE LAKE 09/30/2024 SCDP: Commercial 2 1 1 1 8 SCDP: Homeowner 7 4 7 6 3 20 Residential Owner-Occupied Leverage (ROHL) 2 4 2 UNDERWOOD 09/30/2024 SCDP: Homeowner 12 3 12 9 7 17 Residential Owner-Occupied Leverage (ROHL) 5 5 4 Page 11 of 40 218-998-8730 HOUSING AND REDEVELOPMENT AUTHORITY ottertai I county.gov Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@ottertailcounty.gov PUBLIC HOUSING BOARD REPORT August 2023 Rents Payable $2,882.46 Rents Collected $2,882.46 Total Negative Rents $649 Negative Rents Paid $100.45 Late Fees Charged $32 Late Fees Collected $32 Number of Units Paying Flat/Ceiling Rent 1 Fiscal Year ELI 100% WAITING LIST 2 Bedroom 24 3 Bedroom 4 4 Bedroom 3 VACANCIES UNIT VACATED LEASE SIGNED 3 Bdrm ‐ NYM 06/30/2023 08/14/2023 3 Bdrm – Henning 08/14/2023 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 Page 12 of 40 OTTERTAIL COUNTY -MINNESOTA 218-998-8730 HOUSING AND REDEVELOPMENT AUTHORITY ti) EOU/\L HOUSING OPPORTUNITY ottertai I county.gov Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@ottertailcounty.gov Doc Num Voided Type Document Recipient 56 No DD Jeff A Ackerson 57 No DD Kurt A. Mortenson 1353 No VD N F Field Abstract Co LLC 1356 No CHK Otter Tail County Recorder's Office 1357 No CHK Otter Tail County Recorder's Office 1358 No CHK HighPoint Homes Inc 1359 No CHK Kevin Currie 1360 No CHK Language Line Services Inc 1361 No CHK Brogard Plumbing Heating & Exc Inc 1362 No CHK City of Ottertail 1363 No CHK Contractor Compliance & Monitoring Inc 1364 No CHK HighPoint Homes Inc 1365 No CHK Maxfield Research and Consulting, LLC 1366 No CHK Minnesota Housing Finance Agency 1367 No CHK Otter Tail County Auditors Office 1368 No CHK Otter Tail County Recorder's Office 1369 No CHK Otter Tail County Recorder's Office Payments $83,254.61 $83,254.61 Count 2 1 14 17 End of Report ($85.00) Check (CHK)$83,165.37 Total:$83,254.61 Project Summary Program - Project Deposits General Revolving (GR) - General Revolving $0.00 Total:$0.00 Type Summary Document Type Amount Direct Deposit (DD)$174.24 Void Payment (VD) Cleared: 9 $16,154.82 Uncleared: 8 $67,099.79 Total Payments: 17 $83,254.61 08/28/2023 SCDP Recording Fee UNHD #7 No $46.00 08/28/2023 SCDP Recording Fees HER-001 No $46.00 08/28/2023 Interest Due Loan #1270599 No $965.02 08/28/2023 City of Vergas 3 Lots for Senior Housing Yes $50.65 08/28/2023 Hidden Meadows #109 Pay App #4 No $54,469.00 08/28/2023 HIB Submission Sr Affordable Client/Job No $1,200.00 08/28/2023 PO for Lot in Ottertail for Senior Housing No $530.00 08/28/2023 Hidden Meadows Phase 1 Aug 23 Labor No $750.00 08/11/2023 Acct #9020515648 Interpretation Yes $16.20 08/28/2023 Henning Reuse - Bath Fan Install/Boiler No $9,093.77 08/11/2023 Hidden Meadows #109 Pay App #3 Yes $10,651.00 08/11/2023 July 2023 Consulting Services Yes $4,887.73 08/07/2023 Repayment Agreement CHIP ROHL Yes $138.00 08/07/2023 SCDP Repayment Agreements Yes $322.00 08/28/2023 08/23 Per Diem/Mileage Yes $92.03 08/07/2023 Duplicate payment.Yes ($85.00) Payment Date Document Description Cleared Amount 08/28/2023 08/23 Per Diem/Mileage Yes $82.21 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 9/7/2023 10:08:33 AM Printed by: Julie Bakken Page 13 of 40 67% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3610 Interest Income 3703/5353/3741/0054 497.70 4,090.31 1,800.00 2,290.31 227% 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 476.00 12,454.57 12,454.57 3691 Levy Revenue 762,892.55 1,309,725.00 (546,832.45)58% 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 1,856.94 13,227.64 31,821.00 (18,593.36)42% 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 422,867.15 745,000.00 (322,132.85)57% TOTAL INCOME 2,830.64 1,613,911.12 3,709,266.00 (2,095,354.88)44% EXPENSES 4130 Legal 530.00 2,669.98 30,000.00 27,330.02 9% 4140 Staff Training 5,020.22 5,000.00 (20.22)100% 4150 Travel 334.82 4,300.00 3,965.18 8% 4170 Accounting 30,000.00 60,000.00 30,000.00 50% 4171 Audit 10,000.00 16,100.00 6,100.00 62% 4190 Other Administrative Expenses 2,224.53 200.00 (2,024.53)1112% 4190.01 Manuals, Subscriptions 717.00 200.00 (517.00)359% 4190.02 Office Supplies 939.24 1,700.00 760.76 55% 4190.03 Postage 1,383.43 4,500.00 3,116.57 31% 4190.04 Telephone & Internet 122.70 300.00 177.30 41% 4190.05 Dues 791.74 1,000.00 208.26 79% 4190.06 Advertising 1,146.83 1,300.00 153.17 88% 4190.08 Consulting Fees 1,216.20 6,645.82 28,000.00 21,354.18 24% 4190.2 Management Fees-OTC Admin 30,274.06 133,262.17 364,342.00 231,079.83 37% 4190.21 Management Fees-Administrator Contract 68,204.15 116,918.00 48,713.85 58% 4190.22 Management Fees - Construction Consultant 4,887.73 31,387.04 40,000.00 8,612.96 78% 4210 Board Member Payments 174.24 3,023.68 4,900.00 1,876.32 62% 4430.1 Misc Contracts - Software 6,155.50 5,000.00 (1,155.50)123% 4510 Insurance 46,305.71 35,000.00 (11,305.71)132% 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)85.00 2,000.00 1,915.00 4% 4590.02 SCDP Lead Based Paint Testing 325.00 10,000.00 9,675.00 3% 4590.03 SCDP Construction (DEED)9,093.77 53,626.77 432,000.00 378,373.23 12% 4590.04 SCDP Recording Fees 414.00 414.00 920.00 506.00 45% 4590.05 SCDP General Expense - Leverage 212,007.00 212,007.00 0% 4591 MHFA Impact Fund Expenses 66,085.02 844,936.74 1,016,000.00 171,063.26 83% 4591.01 MHFA Administration/Overrun 750.00 28,822.77 75,000.00 46,177.23 38% 4591.02 MHFA Loan Repayment 205,802.20 745,000.00 539,197.80 28% 4592.01 HOP Demolition/Site Clearance 41,537.50 40,000.00 (1,537.50)104% 4593.02 CAP Property Acquisition 50.65 50.65 25,000.00 24,949.35 0% 4593.03 CAP Consulting Fees 1,980.00 30,000.00 28,020.00 7% 4593.04 CAP Architect/Engineering 21,344.93 (21,344.93) 4593.05 CAP Legal Fees 2,800.00 (2,800.00) 4594 CHIP Down Payment Assistance 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)138.00 230.00 70,000.00 69,770.00 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 113,528.67 1,562,370.12 3,607,107.00 2,044,736.88 SURPLUS (110,698.03)51,541.00 102,159.00 (50,618.00)50% Otter Tail County Housing Redevelopment Authority Operating Statement Eight Months Ending 08/31/2023 Program: General Revolving (GR) Project: Consolidated Percent of Year www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 9/7/2023 9:56:15 AM Printed by: Julie Bakken Page 14 of 40 Period Amount Balance ASSETS 1111 Cash (45,294.50)1,021,645.43 1111.1 Certificates of Deposit 142,898.17 1111.2 Cash MHFA Loan Acct #0054 0.52 4,081.58 1111.3 Cash Committed for Hidden Meadows 375,000.00 1111.4 Committed for Housing Trust Fund 542,596.00 1113 Cash Rent Rehab 1,920.63 300,935.06 1130.1 Loan Receivable-Rental Rehab 112,295.99 1130.2 Loan Receivable-Down Payment Assistance 79,238.00 1130.3 Loan Receivable-Tax Levy Rehab Provision 268,804.14 1130.4 Loan Receivable-Homeowner Rehab 337,957.94 1130.9 Loan Allowance (606,762.08) 1135.5 Taxes Receivable 16,095.00 1400.12 Assets Held for Resale 1,051.00 1400.5 Accumulated Depreciation (268.25) 1400.9 Furn/Equip/Mach - Admin 9,657.00 TOTAL ASSETS (43,373.35)2,605,224.98 LIABILITIES AND SURPLUS LIABILITIES 2111 Vendors/Contractors 67,324.68 2310 MHFA Note Payable 167,006.00 TOTAL LIABILITIES 67,324.68 167,006.00 SURPLUS 2700 Income/Expense Clearing Account 421,028.43 2700 Income/Expense Clearing Account (Current Year) (80.00) 2806 Unrestricted Net Position 1,965,649.55 2806 Unrestricted Net Position (Current Year) (110,698.03)51,621.00 TOTAL SURPLUS (110,698.03)2,438,218.98 TOTAL LIABILITIES AND SURPLUS (43,373.35)2,605,224.98 Otter Tail County Housing Redevelopment Authority Balance Sheet August 2023 Program: General Revolving (GR) Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 9/7/2023 9:56:14 AM Printed by: Julie Bakken Page 15 of 40 Doc Num Voided Type 515 No DD 516 No DD 517 No DD 518 No DD 519 No DD 520 No DD 521 No DD 522 No DD 523 No DD 524 No DD 525 No DD 526 No DD 527 No DD 528 No DD 529 No DD 530 No DD 531 No DD 532 No DD 533 No DD 534 No DD 535 No DD 536 No DD 537 No DD 538 No DD 539 No DD 540 No DD 541 No DD 542 No DD 543 No DD 544 No DD 545 No DD 546 No DD 547 No DD 548 No DD 549 No DD 550 No DD 551 No DD 552 No DD 553 No DD 554 No DD 555 No DD 1684 No ADJ 5054 No VD 5177 No VD 5443 No VD 5510 No VD 5624 No VD 5805 No VD 5832 No VD 6062 No CHK 6063 No CHK 6064 No CHK 6065 No CHK 08/01/2023 HAP Payment Aug 23 Yes $357.00 08/01/2023 HAP Payment Aug 23 Yes $905.00 08/01/2023 HAP Payment Aug 23 No $675.00 08/01/2023 HAP Payment Aug 23 Yes $1,080.00 08/22/2023 Misplaced/Lost Yes ($12.00) 08/22/2023 Misplaced/Lost Yes ($12.00) 08/22/2023 Misplaced/Lost Yes ($12.00) 08/22/2023 Misplaced/Lost Yes ($12.00) 08/22/2023 Misplaced/Lost Yes ($2.00) 08/22/2023 Misplaced/Lost Yes ($12.00) 08/09/2023 HAP Paid and she never Yes ($473.00) 08/22/2023 Misplaced/Lost Yes ($2.00) 08/01/2023 HAP Payment Aug 23 Yes $639.00 08/01/2023 HAP Payment Aug 23 Yes $238.00 08/01/2023 HAP Payment Aug 23 Yes $674.00 08/01/2023 HAP Payment Aug 23 Yes $527.00 08/01/2023 HAP Payment Aug 23 Yes $1,260.00 08/01/2023 HAP Payment Aug 23 Yes $291.00 08/01/2023 HAP Payment Aug 23 Yes $381.00 08/01/2023 HAP Payment Aug 23 Yes $280.00 08/01/2023 HAP Payment Aug 23 Yes $590.00 08/01/2023 HAP Payment Aug 23 Yes $496.00 08/01/2023 HAP Payment Aug 23 Yes $316.00 08/01/2023 HAP Payment Aug 23 Yes $396.00 08/01/2023 HAP Payment Aug 23 Yes $357.00 08/01/2023 HAP Payment Aug 23 Yes $670.00 08/01/2023 HAP Payment Aug 23 Yes $627.00 08/01/2023 HAP Payment Aug 23 Yes $268.00 08/01/2023 HAP Payment Aug 23 Yes $3,483.00 08/01/2023 HAP Payment Aug 23 Yes $395.00 08/01/2023 HAP Payment Aug 23 Yes $493.00 08/01/2023 HAP Payment Aug 23 Yes $348.00 08/01/2023 HAP Payment Aug 23 Yes $411.00 08/01/2023 HAP Payment Aug 23 Yes $267.00 08/01/2023 HAP Payment Aug 23 Yes $4,766.00 08/01/2023 HAP Payment Aug 23 Yes $749.00 08/01/2023 HAP Payment Aug 23 Yes $150.00 08/01/2023 HAP Payment Aug 23 Yes $411.00 08/01/2023 HAP Payment Aug 23 Yes $710.00 08/01/2023 HAP Payment Aug 23 Yes $880.00 08/01/2023 HAP Payment Aug 23 Yes $609.00 08/01/2023 HAP Payment Aug 23 Yes $405.00 08/01/2023 HAP Payment Aug 23 Yes $340.00 08/01/2023 HAP Payment Aug 23 Yes $1,109.00 08/01/2023 HAP Payment Aug 23 Yes $925.00 08/01/2023 HAP Payment Aug 23 Yes $6,504.00 08/01/2023 HAP Payment Aug 23 Yes $386.00 08/01/2023 HAP Payment Aug 23 Yes $294.00 08/01/2023 HAP Payment Aug 23 Yes $327.00 08/01/2023 HAP Payment Aug 23 Yes $394.00 08/01/2023 HAP Payment Aug 23 Yes $324.00 08/01/2023 HAP Payment Aug 23 Yes $247.00 Payment Date Document Description Cleared Amount 08/01/2023 HAP Payment Aug 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 9/7/2023 10:17:35 AM Printed by: Julie Bakken Page 16 of 40 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers 6066 No CHK 6067 No CHK 6068 No CHK 6069 No CHK 6070 No CHK 6071 No CHK 6072 No CHK 6073 No CHK 6074 No CHK 6075 No CHK 6076 No CHK 6077 No CHK 6078 No CHK 6079 No CHK 6080 No CHK 6081 No CHK 6082 No CHK 6083 No CHK Doc Num Voided Type 27762628353 No MO 28542824842 No MO Payments $40,320.60 $40,320.60 Count 41 1 7 22 2 73 End of Report Money Order (MO)$148.00 Total:$40,468.60 ($473.00) Void Payment (VD)($64.00) Check (CHK)$7,341.60 Project Summary Program - Project Deposits Housing Choice $148.00 Total:$148.00 Type Summary Document Type Amount Direct Deposit (DD)$33,516.00 Hap Adjustment Advice Cleared: 2 $148.00 Uncleared: 0 $0.00 Total Deposits: 2 $148.00 08/09/2023 Payment - Money Order Yes $73.00 08/09/2023 Payment - Money Order Yes $75.00 Posted Deposits Control Date Document Description Cleared Amount Cleared: 66 $39,090.60 Uncleared: 5 $1,230.00 Total Payments: 71 $40,320.60 08/28/2023 Aug 23 Mileage Reimb Yes $32.10 08/01/2023 HAP Util Payment Aug 23 No $64.00 08/01/2023 Port Out Payment Aug 23 Yes $867.75 08/01/2023 Port Out Payment Aug 23 Yes $1,115.75 08/01/2023 HAP Util Payment Aug 23 Yes $18.00 08/01/2023 HAP Util Payment Aug 23 Yes $49.00 08/01/2023 HAP Util Payment Aug 23 Yes $48.00 08/01/2023 HAP Util Payment Aug 23 Yes $5.00 08/01/2023 HAP Util Payment Aug 23 No $28.00 08/01/2023 HAP Util Payment Aug 23 Yes $148.00 08/01/2023 HAP Util Payment Aug 23 Yes $8.00 08/01/2023 HAP Util Payment Aug 23 Yes $84.00 08/01/2023 HAP Util Payment Aug 23 Yes $54.00 08/01/2023 HAP Util Payment Aug 23 No $2.00 08/01/2023 HAP Payment Aug 23 Yes $331.00 08/01/2023 HAP Payment Aug 23 Yes $385.00 08/01/2023 HAP Payment Aug 23 No $461.00 08/01/2023 HAP Payment Aug 23 Yes $624.00 www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 2 of 2 9/7/2023 10:17:35 AM Printed by: Julie Bakken Page 17 of 40 67% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rent HAP Repayment (148.00)7,377.00 7,377.00 3301 Admin Subsidy 6,123.00 48,843.00 79,201.00 (30,358.00)62% 3301.1 HAP Subsidy 43,314.00 333,597.00 434,498.00 (100,901.00)77% 3450 Fraud Recovery - Admin 50%310.50 2,762.74 2,762.74 3450.1 Fraud Recovery - HAP 50%310.50 2,762.74 2,762.74 3610 Investment Income (0062)11.98 85.43 105.00 (19.57)81% 3690.1 Other Revenue HAP 30,000.00 (30,000.00)0% TOTAL INCOME 49,921.98 395,427.91 543,804.00 (148,376.09)73% EXPENSES 4150 Travel 32.10 317.27 1,200.00 882.73 4190 Other Admin Expenses (Apps, Service Charges)11.00 252.51 120.00 (132.51)210% 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 44,575.58 93,887.00 49,311.42 47% 4715.1 HAP Occupied Units 38,682.00 318,295.00 394,904.00 76,609.00 81% 4715.P HAP-Portability Out 1,886.00 14,466.00 32,462.00 17,996.00 45% 4716.P Port Out Admin Fee 97.50 918.58 1,423.00 504.42 65% TOTAL EXPENSES 40,708.60 378,824.94 526,181.00 147,356.06 72% SURPLUS 9,213.38 16,602.97 17,623.00 (1,020.03)94% Otter Tail County Housing Redevelopment Authority Operating Statement Eight Months Ending 08/31/2023 Program: Housing Choice Vouchers Project: Consolidated Period of Year www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 9/7/2023 10:11:37 AM Printed by: Julie Bakken Page 18 of 40 Period Amount Balance ASSETS 1111 Cash Unrestricted 9,265.38 64,519.09 1121 Fraud A/R (148.00)3,141.00 1129 A/R Tenants 4,236.00 TOTAL ASSETS 9,117.38 71,896.09 LIABILITIES AND SURPLUS LIABILITIES 2112 A/P HAP (96.00) TOTAL LIABILITIES (96.00) SURPLUS 2700 Inc & Exp Clearing 4,078.69 2805 Restricted Net Position 22,114.50 2805 Restricted Net Position (Current Year) 3,056.50 3,598.74 2806 Unrestricted Position 29,099.93 2806 Unrestricted Position (Current Year) 6,156.88 13,004.23 TOTAL SURPLUS 9,213.38 71,896.09 TOTAL LIABILITIES AND SURPLUS 9,117.38 71,896.09 Otter Tail County Housing Redevelopment Authority Balance Sheet August 2023 Program: Housing Choice Vouchers Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 9/7/2023 8:33:16 AM Printed by: Julie Bakken Page 19 of 40 Doc Num Voided Type #01-00000621-00-0 July 23 No INV #01-00041004-00-6 July 23 No INV #01-00041101-00-0 July 23 No INV #01-00041152-00-6 July 23 No INV 7277 No CHK 7278 No CHK 7279 No CHK 7280 No CHK 7281 No CHK 7282 No CHK 7283 No CHK 7284 No CHK 7285 No CHK 7286 No CHK 7287 No CHK Doc Num Voided Type No DDE No DDE 1201 No CHK 1313 No CHK 3614 No CHK 5608 No CHK 5612 No CHK 23419 No CHK 82410013 No CHK 82416354 No CHK 82416355 No CHK 22-03850001 No MO 22-03850029 No MO 27407470601 No CHK 2770694974 No MO 28542824853 No CHK 2864062223 No MO Payments $4,125.24 $4,125.24 Count 2 4 22 4 32Total:$11,375.21 End of Report $1,178.71 Check (CHK)$6,880.89 Money Order (MO)$1,799.19 Project Summary Program - Project Deposits Public Housing - Family $7,249.97 Total:$7,249.97 Type Summary Document Type Amount Direct Debit (DDE)$1,516.42 Invoice (INV) 08/02/2023 Payment - Money Order Yes $180.00 Cleared: 17 $7,249.97 Uncleared: 0 $0.00 Total Deposits: 17 $7,249.97 08/09/2023 Payment - Money Order Yes $833.58 08/09/2023 Payment - Check Yes $340.00 08/18/2023 Payment - Money Order Yes $500.00 08/18/2023 Payment - Check Yes $147.51 08/18/2023 Payment - Check Yes $170.49 08/02/2023 Payment - Money Order Yes $285.61 08/02/2023 Payment - Check, State of MN Yes $392.00 08/18/2023 Payment - Check Yes $91.00 08/18/2023 Payment - Check Yes $957.13 08/18/2023 Payment - Check - Salvation Army Yes $240.00 08/02/2023 Payment - Check Yes $625.00 08/02/2023 Payment - Check Yes $615.00 08/09/2023 Payment - Check Yes $260.39 08/18/2023 Payment - Check Yes $95.84 08/29/2023 MAHUBE Yes $280.97 08/29/2023 MAHUBE Yes $1,235.45 Posted Deposits Control Date Document Description Cleared Amount Cleared: 15 $4,125.24 Uncleared: 0 $0.00 Total Payments: 15 $4,125.24 08/28/2023 Credit/Criminal App Yes $13.00 08/28/2023 Payment Aug 23 Yes $100.45 08/11/2023 Cleaning Rental Unit 106 Smith Ave, NYM Yes $585.00 08/11/2023 Ref No 21831 Paint and Credit on Acct Yes $160.25 08/11/2023 Water, Gas, Sewer Yes $508.01 08/11/2023 By Pass Waste (Solid Waste Facility)Yes $6.00 08/11/2023 Interior Painting 106 Smith Ave, NYM Yes $1,000.00 08/11/2023 Maintenance Supplies Yes $292.67 08/11/2023 Carpet Cleaning 106 Smith Ave, NYM Yes $140.00 08/11/2023 AC Service Call 206 Foss St #1, Underwood Yes $118.75 08/01/2023 Water, Electric, Gas, Sewer Yes $342.13 08/11/2023 Solar Salt Yes $22.40 08/01/2023 Water, Electric, Gas, Sewer Yes $240.00 08/01/2023 Water, Electric, Gas, Sewer Yes $275.00 Payment Date Document Description Cleared Amount 08/01/2023 Water, Electric, Gas, Sewer Yes $321.58 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 9/7/2023 10:26:25 AM Printed by: Julie Bakken Page 20 of 40 67% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rental 2,908.46 27,499.46 25,000.00 2,499.46 110% 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 36,971.88 33,000.00 3,971.88 112% 3610 Interest Income (5673/0070)17.47 158.98 40.00 118.98 397% 3690 Other Income (NSF, Late Fee, GR Support)32.00 806.50 21,000.00 (20,193.50)4% 3690.1 Water Charge Income 668.24 5,056.76 6,300.00 (1,243.24)80% 3690.2 Electric Charge Income 1,446.92 7,479.20 8,550.00 (1,070.80)87% 3690.3 Gas Charge Income 251.11 6,771.06 11,000.00 (4,228.94)62% 3690.31 Sewer Charge Income 765.77 5,839.78 7,350.00 (1,510.22)79% 3690.4 Other Tenant Charges (Maint)585.00 1,085.00 1,085.00 TOTAL INCOME 6,674.97 128,141.62 164,240.00 (36,098.38)78% EXPENSES 4130 Legal 380.50 750.00 369.50 51% 4140 Staff Training 500.00 500.00 0% 4150 Travel 258.89 1,000.00 741.11 26% 4171 Audit 2,000.00 2,000.00 0% 4190 Other Admin Expenses (Reports, Apps)13.00 19.00 2,100.00 2,081.00 1% 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 (30,274.06)16,999.99 17,000.00 0.01 100% 4310 Water 759.87 4,587.92 6,400.00 1,812.08 72% 4320 Electric 787.73 5,879.48 8,700.00 2,820.52 68% 4330 Gas 274.16 6,471.92 11,500.00 5,028.08 56% 4331 Sewer 676.43 5,084.98 7,500.00 2,415.02 68% 4400 Maintenance - Tools & Equip 750.00 750.00 0% 4420 Maintenance - Materials 452.92 803.88 5,500.00 4,696.12 15% 4430 Maintenance - Contracts 1,866.15 4,660.05 20,000.00 15,339.95 23% 4431 Garbage and Trash Removal Contracts 6.00 6.00 500.00 494.00 1% 4510 Insurance 15,762.60 15,763.00 0.40 100% 4520 PILOT 1,200.00 1,200.00 0% 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 36,971.88 33,000.00 (3,971.88)112% 4610 Extraordinary Maintenance 3,500.00 3,500.00 0% TOTAL EXPENSES (25,437.80)99,124.45 143,558.00 44,433.55 69% SURPLUS 32,112.77 29,017.17 20,682.00 8,335.17 140% Otter Tail County Housing Redevelopment Authority Operating Statement Eight Months Ending 08/31/2023 Program: Public Housing Project: Consolidated Percent of Year www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 9/7/2023 10:20:45 AM Printed by: Julie Bakken Page 21 of 40 Period Amount Balance ASSETS 1111 Cash 32,604.79 113,278.23 1114 Tenant Security Deposit Cash 9,044.40 1122 A/R Tenants (291.76)3,403.05 1122.1 Allowance for Doubtful Accts (200.00) 1122.9 A/R Tenant Repayment Agreements (150.00)50.00 1400.5 Accumulated Depreciation (1,072,546.36) 1400.6 Land 32,990.31 1400.7 Buildings 1,661,869.49 TOTAL ASSETS 32,163.03 747,889.12 LIABILITIES AND SURPLUS LIABILITIES 2114 Tenant Security Deposits 9,044.40 2240 Tenants Prepaid Rent 50.26 878.17 TOTAL LIABILITIES 50.26 9,922.57 SURPLUS 2700 Income/Expense Clearing Account (63,672.49) 2700 Income/Expense Clearing Account (Current Year) 32,112.77 29,017.17 2802 Invested in Capital Assets, Net of Related Debt 679,466.94 2806 Unrestricted Net Position 93,154.93 TOTAL SURPLUS 32,112.77 737,966.55 TOTAL LIABILITIES AND SURPLUS 32,163.03 747,889.12 Otter Tail County Housing Redevelopment Authority Balance Sheet August 2023 Program: Public Housing Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 9/7/2023 10:20:45 AM Printed by: Julie Bakken Page 22 of 40 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 4. NEW BUSINESS Page 23 of 40 1ir EOU/\l. HOUSING OPPORTUNITY OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _September 19, 2023__ BOARD MEETING DATE AGENDA ITEM #4A Community Assistance ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 9/14/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 251 Revenue Cycle Cash Management and Program Funding Policy PROPOSED REQUEST/JUSTIFICATION The purpose of this resolution to adopt a policy regarding cash management of various revenue sources of the Authority, including but not limited to the federally funded programs and the funding provided by the HRA levy. The policy provides guidance as to the number of bank accounts based on the revenue source, when revenues earned are converted to cash, and that accounts must be monitored monthly to determine if funds should be invested. To date, cash amounts have not risen to a level where staff would recommend investment in the certificate of deposit account, but staff will monitor this monthly. In addition, the policy contains program funding procedures for recognizing, documenting, and transferring the different types of revenue the Authority receives. Staff recommends the Board adopt the Resolution as presented. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Barbara Dacy 9/19/2023 ATTACHMENT LIST: Resolution No. 251 and Exhibit A Revenue Cycle Cash Management and Program Funding Policy FINANCIAL IMPLICATIONS: NA BUDGETED: YES NO FUNDING: NA COMMENTS Page 24 of 40 RESOLUTION NO. 251 ADOPTING REVENUE CYCLE CASH MANAGEMENT AND PROGRAM FUNDING POLICY WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) operates a variety of housing and redevelopment programs (the “Programs”); and WHEREAS, the Authority has determined it prudent to adopt a policy guiding the definitions and reporting of the Authority’s financial statements in accordance with the Governmental Accounting Standard Board (GASB) 54; and WHEREAS, the Authority has determined that the provisions contained in the Fund Balance 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 anyother 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 19th day of September, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ Page 25 of 40 EXHIBIT A REVENUE CYCLE CASH MANAGEMENT AND PROGRAM FUNDING POLICY The HRA shall manage the inflow of resources in a prudent and efficient manner that is compliant with program requirements. Cash resources that are not needed in the short-term, should be invested according the HRA Investment Policy. Revenues earned shall be converted into cash as promptly as possible and shall become resources of the program generating the revenue. The source of the revenue is a key factor in determining when the revenue can be converted into cash (i.e., draw-down from HUD or collected from a tenant) and when revenues shall be recognized on the HRA’s books of account. For cash management purposes, revenues and disbursements for different programs will be retained and processed in separate bank accounts. The Public Housing program and the Housing Choice Voucher (HCV) program funding will be maintained in separate bank accounts. An additional bank account will be used for the HRA Special Benefit Levy and shall be known as the General Revolving Fund. All bank accounts will be reconciled monthly. Resource levels shall be monitored monthly on an individual project/program basis to ensure that adequate resources are available and that revenues are promptly converted into cash. The monitoring shall also incorporate decisions on whether to invest or redeem investments to maintain appropriate cash balances. REVENUE CYCLE PROCEDURES – CASH MANAGEMENT AND PROGRAM FUNDING Program Funding Procedures 1. Operating Subsidy. Requests for the payment of public housing operating subsidy (i.e., drawdown of operating subsidy) shall be made by the Housing Program Supervisor in the amount that HUD has made available to the HRA for that month. A copy of the payment request (i.e., printout from eLOCCS) shall be printed, initialed and dated by the Housing Program Supervisor, and filed with the journal voucher that records the receipt of the payment. For public housing operating subsidy, the revenues will be recognized in the period in which the funding was made available to the HRA. 2. Rent Collection. The HRA will follow the rent collection policy for collections related to tenant rents and other tenant charges. The HRA will follow the tenant accounts receivable processing policy for revenues related to tenant accounts receivable that is overdue. Tenant rents shall be recognized as revenue on the first of the month. 3. Service Fees and Other HRA Charges. For service fees and other HRA charges, including other tenant charges such as maintenance charges or excess utility charges, the revenue will be recognized when the service(s) have been provided. Page 26 of 40 218-998-8730 HOUSING AND REDEVELOPMENT AUTHORITY ottertailcounty.gov Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 '5) EOU/\1. HOUSING OPPORTUNITY hra @ottertailcounty.gov 4.Housing Choice Voucher (HCV) Funds. HCV HAP and administrative fee funding is automatically deposited by HUD into the HRA’s bank account each month (i.e., no drawdown action of funds is needed to be initiated by the HRA). HAP Funds. The HRA will determine each month whether the HAP funds disbursed by HUD and HRA held HAP equity are enough to cover the upcoming month’s HAP expenses. If it is likely that cash balances will not be enough to cover HAP expense, the HRA will need to contact HUD to request additional funds to be disbursed if HUD-held reserves are available. The “Two-Year Tool” (a HUD provided projection spreadsheet) will be used to assist in this process. HAP funds will be recognized as revenue based on HUD disbursements and HRA HAP needs, limited to the amount of HRA HAP funding available. Administrative Fees. Administrative fees will be recognized as revenue based on the number of vouchers leased on the first of the month. 5.Transfers. Transfers between the Public Housing program and the HCV program is not permitted. Transfers from the General Revolving program to other programs is not permitted unless specifically authorized by the program. All transfers out from Federal and state programs that are not the repayment of program expenses paid from a central account/working capital account is prohibited unless documented authorization is obtained from the Housing Program Supervisor or the Executive Director. Cash Balances and Investments Procedures During the preparation of the operating budgets, large cash disbursement items should be reviewed to verify that sufficient cash balances will be available at the time of payment. The HRA will monitor cash and investment balances each month. Page 27 of 40 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 5. DISCUSSION Page 28 of 40 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: September 19, 2023 SUBJECT: Discussion Items 5A and 5B 1. North Fields of Dalton. Staff will update the Board on the recent construction estimate for the proposed development and review options for the Board’s discussion. 2. Statewide Affordable Housing Aid (SAHA). What is SAHA? The legislature approved SAHA to assist counties to develop and preserve affordable and workforce housing within their jurisdictions. SAHA will be distributed to Minnesota’s 87 counties, Tier I cities in Greater Minnesota (populations over 10,000), and tribal governments. Minnesota Housing is to establish a grant program for Tier II cities (population less than 10,000) to access SAHA. The legislature also approved Local Affordable Housing Aid (“LAHA”) for the same purposes for cities with populations over 10,000. I have attached a handout summarizing the key provisions on this state aid funding (obtained at the Minnesota NAHRO conference) and a chart of the amounts that will be distributed to counties. Distribution and Spending Requirement. In 2023, the Statewide Affordable Housing Aid will be delivered to counties in one installment on December 26 and beginning in 2024, it will be paid in two equal installments in the year after it is certified. The first half is paid on July 20 and the second half on December 26. Funds must be spent on “qualifying projects” within four years. Legislators have emphasized that the funding is intended to augment existing resources as opposed to replacing resources. Process. The County Board is responsible for the determination of how this funding is to be used. Many of the HRA current programs are eligible for this funding, and it would be appropriate for the HRA to identify potential options and make a recommendation to the County Board. Staff will present preliminary options at the meeting for HRA discussion and potential future action. Page 29 of 40 218-998-8730 @ HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 ti) EOU/\L HOUSING OPPORTUNITY @ ottertailcounty.gov Local Affordable Housing Aid Panel Handout Minnesota NAHRO Conference 9/13/2023 In 2023, the Minnesota Legislature appropriated funds directly to local governments to help them to develop and preserve affordable and workforce housing within their jurisdic�ons in order to keep families from losing housing and to help those experiencing homelessness find housing. Aid funds must be spent on a “Qualifying Project”. They created two programs: Statewide Local Housing Aid (SAHA) and Local Affordable Housing Aid (LAHA). SAHA is funded with state funds and distributed to Minnesota’s 87 coun�es, Tier I ci�es in Greater Minnesota (popula�ons over 10,000), and tribal governments. Minnesota Housing is to establish a grant program for Tier II ci�es (popula�on less than 10,000) to access SAHA. LAHA is funded with a quarter percent metro sales tax and distributed to the 7 metro coun�es and Tier 1 metro ci�es. Detailed Informa�on • The statutory laws can be found on the Revisor’s website (htps://www.revisor.mn.gov/statutes/) SAHA is in Minnesota Statutes Chapter 477A.36 and LAHA in Chapter 477A.35. The statutes lay out defini�ons, distribu�on, qualifying projects, enforcement, and repor�ng requirements. • Informa�on on amounts and distribu�on amounts can be found on the Department of Revenue’s website (htps://www.revenue.state.mn.us/statewide-affordable-housing-aid and htps://www.revenue.state.mn.us/local-affordable-housing-aid). • Repor�ng informa�on and Tier II city grant program can be expected at a later date on Minnesota Housing’s website (www.mnhousing.gov) Defining Local Housing Needs The SAHA/LAHA qualifying projects are fairly broad. To decide what to use the funds on will depend on several variables including the area’s housing needs, local poli�cs, and capacity within the locality to implement desired solu�ons. To understand the housing needs, a locality could rely on exis�ng data, comprehensive or strategic plans, and its local housing authority. A locality could also complete a new housing study and solicit community input. Having a strong understanding of what the local housing problems or issues are will help narrow down the types of projects, programs, and ac�vi�es. A locality will also want to assess other resources available to ensure the funds are not duplica�ve, maximize leverage of other funds, and have the greatest impact and success in addressing local housing issues. Qualifying Projects Qualifying projects must be affordable to households with incomes which do not exceed, for homeownership projects, 115% of the greater of state or area median income as determined by HUD and, for rental housing projects, 80% percent of the greater of state or area median income as determined by HUD, except that the housing developed or rehabilitated with funds under this sec�on must be affordable to the local work force. Priority is to be given to projects at 80% state/area median income for homeownership and 50% state/area median income for rental projects. Page 30 of 40 The following is a chart matching the qualifying projects as solu�ons to local housing needs. It is intended as an idea generator. It is not meant to be a full list of how the SAHA/LAHA funds can be spent, nor is it a comprehensive list of the housing needs that can be addressed by a qualifying project. Qualifying Project Local Housing Issue Emergency rental assistance Economic issue impac�ng renters – layoffs by predominant employer Financial support to nonprofit affordable housing providers Reliance on nonprofit housing providers and dona�ons are down Construc�on of affordable rentals or homes for sale Low vacancy rates and increasing rents indicate a lack of supply, coupled with a lack of developers indica�ng a need for public interven�on – construc�on by the HRA Acquisi�on of exis�ng proper�es Affordable housing is at risk of being purchased and converted to higher rent or sale price; need to preserve the affordability Acquisi�on of land for affordable housing Land zoned and intended for affordable housing is not resul�ng in it; public ownership allows for greater control of what gets developed Rental Rehabilita�on program Disinvestment by landlords, aging housing stock, storm or other property damage; improve the habitability, accessibility, and energy-efficiency of apartments Home Rehabilita�on program Disinvestment by homeowners, aging housing stock, gap in other programs (i.e. income limits or beyond health and safety improvements); improve the habitability, accessibility, and energy-efficiency of homes Demoli�on and clearance Blighted proper�es, removal needed to make room for affordable housing development Construc�on or permanent financing Low vacancy rates and increasing rents indicate a lack of supply, developer interest coupled with lack of lenders or high interest rates Interest rate reduc�on program Prevalence of high interest rates or variable rate mortgages; lowers and stabilizes monthly payments Refinancing Unaffordability of exis�ng debt; with ability to offer beter terms Gap financing Marked difference between the cost to develop and the market value of a property or between the cost to develop and what occupant can afford; reduces housing cost burden, instability, and has poten�al to reduce home ownership dispari�es Development of market rate residen�al rental proper�es (Greater Minnesota only) Sustained low vacancy rates and lack of rental housing is impac�ng ability of businesses to find employees Page 31 of 40 COUNTY BASE AID COST-BURDENED HOUSEHOLD AID CERTIFIED 2023 STATEWIDE AFFORDABLE HOUSING AID AITKIN $78,300 $18,922 $97,222 ANOKA $78,300 $338,902 $417,202 BECKER $78,300 $36,916 $115,216 BELTRAMI $78,300 $53,110 $131,410 BENTON $78,300 $42,180 $120,480 BIG STONE $78,300 $4,839 $83,139 BLUE EARTH $78,300 $86,841 $165,141 BROWN $78,300 $21,526 $99,826 CARLTON $78,300 $32,792 $111,092 CARVER $78,300 $92,295 $170,595 CASS $78,300 $34,043 $112,343 CHIPPEWA $78,300 $13,434 $91,734 CHISAGO $78,300 $52,116 $130,416 CLAY $78,300 $82,102 $160,402 CLEARWATER $78,300 $9,086 $87,386 COOK $78,300 $6,728 $85,028 COTTONWOOD $78,300 $10,148 $88,448 CROW WING $78,300 $79,196 $157,496 DAKOTA $78,300 $438,562 $516,862 DODGE $78,300 $15,133 $93,433 DOUGLAS $78,300 $47,153 $125,453 FARIBAULT $78,300 $12,227 $90,527 FILLMORE $78,300 $19,156 $97,456 FREEBORN $78,300 $30,064 $108,364 GOODHUE $78,300 $52,920 $131,220 GRANT $78,300 $6,583 $84,883 HENNEPIN $78,300 $1,643,644 $1,721,944 HOUSTON $78,300 $17,737 $96,037 HUBBARD $78,300 $23,012 $101,312 ISANTI $78,300 $43,912 $122,212 ITASCA $78,300 $51,400 $129,700 JACKSON $78,300 $8,762 $87,062 KANABEC $78,300 $17,960 $96,260 KANDIYOHI $78,300 $44,393 $122,693 KITTSON $78,300 $2,481 $80,781 KOOCHICHING $78,300 $14,049 $92,349 LAC QUI PARLE $78,300 $5,465 $83,765 LAKE $78,300 $12,272 $90,572 LAKE OF THE WOODS $78,300 $3,040 $81,340 LE SUEUR $78,300 $28,220 $106,520 LINCOLN $78,300 $5,733 $84,033 LYON $78,300 $26,399 $104,699 MCLEOD $78,300 $36,603 $114,903 2023 Statewide Affordable Housing Aid: Counties Page 32 of 40m, DEPARTMENT OF REVENUE COUNTY BASE AID COST-BURDENED HOUSEHOLD AID CERTIFIED 2023 STATEWIDE AFFORDABLE HOUSING AID MAHNOMEN $78,300 $4,951 $83,251 MARSHALL $78,300 $7,734 $86,034 MARTIN $78,300 $20,620 $98,920 MEEKER $78,300 $22,297 $100,597 MILLE LACS $78,300 $31,495 $109,795 MORRISON $78,300 $33,742 $112,042 MOWER $78,300 $40,425 $118,725 MURRAY $78,300 $6,236 $84,536 NICOLLET $78,300 $32,445 $110,745 NOBLES $78,300 $18,832 $97,132 NORMAN $78,300 $5,655 $83,955 OLMSTED $78,300 $163,354 $241,654 OTTER TAIL $78,300 $65,371 $143,671 PENNINGTON $78,300 $15,189 $93,489 PINE $78,300 $31,819 $110,119 PIPESTONE $78,300 $7,343 $85,643 POLK $78,300 $35,250 $113,550 POPE $78,300 $11,847 $90,147 RAMSEY $78,300 $723,861 $802,161 RED LAKE $78,300 $3,845 $82,145 REDWOOD $78,300 $12,763 $91,063 RENVILLE $78,300 $12,059 $90,359 RICE $78,300 $63,918 $142,218 ROCK $78,300 $8,081 $86,381 ROSEAU $78,300 $12,216 $90,516 ST LOUIS $78,300 $243,042 $321,342 SCOTT $78,300 $132,865 $211,165 SHERBURNE $78,300 $79,129 $157,429 SIBLEY $78,300 $13,557 $91,857 STEARNS $78,300 $164,952 $243,252 STEELE $78,300 $40,961 $119,261 STEVENS $78,300 $7,835 $86,135 SWIFT $78,300 $10,383 $88,683 TODD $78,300 $21,671 $99,971 TRAVERSE $78,300 $2,962 $81,262 WABASHA $78,300 $22,800 $101,100 WADENA $78,300 $15,423 $93,723 WASECA $78,300 $19,838 $98,138 WASHINGTON $78,300 $244,372 $322,672 WATONWAN $78,300 $8,829 $87,129 WILKIN $78,300 $6,594 $84,894 WINONA $78,300 $54,585 $132,885 WRIGHT $78,300 $126,673 $204,973 YELLOW MEDICINE $78,300 $8,025 $86,325 STATEWIDE $6,812,100 $6,237,900 $13,050,000 Page 33 of 40m, DEPARTMENT OF REVENUE Page 1 of 4 Minnesota NAHRO 2023 State Legislative Session Recap Minnesota NAHRO adopted a legislative agenda based on three priorities: People, Production, and Preservation. Our advocacy efforts shared stories of how important empowering Minnesotans to thrive through increased access to safe and stable homes, increasing the supply of affordable housing for all low-income Minnesotans, and keeping communities strong by preserving public and naturally occurring affordable housing is to the well-being of our state. The overall investment in affordable housing listed below are for the FY24-25 biennium which includes $1 Billion in one time money, $50 million in on-going funds plus an additional $200 million annually in the 7 metro counties. Moreover, the bonding bill includes $79 million for housing and $21 million for shelter capital projects. Minnesota NAHRO will continue to provide updates and training to help our members better understand these resources and provide training on how to leverage these investments to impact their community. Omnibus Housing Finance Bill Invests in Affordable Housing The $1 billion housing bill includes significant increases to existing programs and creation of new programs covering the spectrum of housing needs. This is the largest single investment in housing in Minnesota history with most of the funding being on-time appropriations from the state budget surplus. A quarter-cent metro area sales tax provides on-going funds directly to counties and cities and rent assistance in the metro area. Public Housing Rehabilitation Cash – $87 million • Minnesota NAHRO led efforts to secure funding for public housing rehabilitation. The Housing bill includes $15 million in cash, $5 million is allocated to Minneapolis PHA and $10 million will be available through Publicly Owned Housing Program (POHP). • The bonding bills include $42 million of general obligation bonds and $30 million in cash for POHP. Combined, this will be the highest amount of state funds allocated at any time. $61.5 million has been allocated in bonds since 2005. • Minnesota NAHRO further led efforts to clarify that ownership by a limited liability company (LLC) where the housing authority is the sole member is considered publicly owned, to continue qualifying for general obligation bonds. LLCs are a typical ownership entity during repositioning. This language is included for the cash portions but Minnesota Management and Budget (MMB) has not wavered in its position for GO bonds. State Rent Assistance Program – $134.3 million (NEW) • Minnesota NAHRO joined the Bring It Home, Minnesota campaign to create a state tenant-based rent assistance program. This multi-session effort got traction this session and is expected to assist over 5,000 very low-income households. • The program is funded in two parts: $23 million of cash for Greater Minnesota and $41.5 million from a metro-wide sales tax for the metro area, in the first year. The bill includes $23 million in the base budget for FY26 and beyond. The sales tax provides on-going, dedicated funding for metro housing authorities. • Our HCV administering members will have a choice of administering the program in their jurisdiction. If a housing authority declines, Minnesota Housing will work with non-profit organizations in the area. Page 34 of 40 {!) MINNESOTA AHRO SERVING MIN NESOTA'S HOUSING & COMMUNITY DEVELOPMENT NEEDS Page 2 of 4 Local Housing Trust Fund Matching Grants – $4.8 million • Minnesota NAHRO advocated for grants to match local housing trust funds to incentivize cities and counties to dedicate local funds to affordable housing efforts. Emergency Rental Assistance – $115.5 million • Minnesota NAHRO advocated for the state to allocate its federal recovery funds to provide emergency rental assistance to help stabilize housing for the most vulnerable renters. The Family Homeless Prevention and Assistance Program will receive $65,538,000 for the biennium (2024-25), in addition to the $50 million already awarded, for a total of $115.5 million for this biennium. Local Affordable Housing Aid – $294 million (NEW) • Included in the Metro Sales Tax and the Tax Bill, direct funds to counties and cities for local affordable housing needs. Eligible uses are pretty broad and can be tailored to the individual community’s needs. Housing Infrastructure Cash – $200 million • This appropriation is in place of Housing Infrastructure Bonds. This investment will finance thousands of new units of permanently affordable housing. • The bill expands the eligible uses of HIBs to include the development and preservation of housing at 50% AMI and under, without supportive services. This change will ensure that renters between 30% and 50% AMI who do not need supportive services will also have access. Challenge Fund - $120.85 million • This is $95 million in additional spending for the Economic Development Housing Challenge Program. The bill also includes $12.925 million in the base for FY26. Greater Minnesota Workforce Housing Development – $39 million (NEW) • This appropriation provides a $35 million increase for the development of new affordable housing in Greater Minnesota to support local businesses and workforces. The bill also includes $2 million in FY26 base. Greater Minnesota Housing Infrastructure Program – $5 million (NEW) • This is a new program with a one-time appropriation. The program will provide funds to communities in Greater Minnesota to expand the infrastructure needed to support residential development in the community. Community Stabilization (NOAH) – $90 million (NEW) • This is a one-time investment to acquire and renovate naturally occurring affordable housing for the purpose of preserving the affordability of the rents. High-Rise Sprinkler System Grants – $10 million (NEW) • $10 million for grants to high-rise apartment buildings which need to be retrofitted with fire suppression sprinkler systems. • The bill further includes a requirement that first- and second-class cities across the state must report to the state fire marshal by June 20, 2024, a list of each residential building that has at least one story used for human occupancy that is 75 feet or more above fire access that does not have a sprinkler fire suppression system. Page 35 of 40 {!) MINNESOTA AHRO SERVING MIN NESOTA'S HOUSING & COMMUNITY DEVELOPMENT NEEDS Page 3 of 4 Bridges and Homework Starts With Home – $16.2 million • Bridges has an appropriation of $10.7 million for the biennium, with a continuation of $5.3 million per year in the base for FY26. $5.5 million for Homework Starts with Home. Workforce Homeownership Program – $620.5 million (NEW) • With $20.5 million authorized in the Housing bill with $250,000 in base. An additional $40 million was included in the tax bill. If passed, the Workforce and Affordable Homeownership Program will receive a total of $75.5 million over the next biennium. Homeownership Education, Counseling, and Training – $3.7 million • These resources will help get potential homeowners ready to access the new down payment assistance funding, along with increased affordable homeownership supply. $857,000 included in base. Down Payment Assistance – $150 million (NEW) • $50 million for first generation down payment assistance with the premise of reducing the homeownership disparity gap. • $100 million of the available down payment assistance dollars will be available through Midwest Minnesota Community Development Corporation as the administrator for the community-based first-generation homebuyers down payment assistance program. Expansion of HRA Powers • The bill includes policy language to allow HRAs and EDAs to construct new market-rate workforce housing. Other Housing Investments of Note • $4 million for lead safe homes. • $10 million each for the manufactured home cooperative purchase and lending grants. • $17 million for manufactured home park infrastructure grants, with $1 million in base. • $25 million for supportive housing. • Additional funding for capacity-building grants of $6.3 million and $645,000 in base. • $23.3 million for Housing Trust Fund. • $8.4 million for Affordable Rental Investment Fund program (ARIF). • $5.5 million for homeowner rehabilitation loans. • $7.5 million for rental rehabilitation loans. • $3 million to Community Mediation Minnesota to administer a statewide housing tenant/landlord mediation program. • $50 million for the Home Ownership Assistance Fund. We’re Still Tracking and Working on… • The “source of income protection”, specification of rent assistance as a source of public assistance for the purposes of a protected class, was not included in the housing or judiciary bills. Advocates plan to renew efforts in the 2024 session. • Minnesota NAHRO and the League of Minnesota Cities advocated for an increase to the cap of HRA levies from the existing 0.0185% to 0.037%. The increase was considered in both the housing and taxes bill but ultimately not included. • Minnesota NAHRO will continue to provide updates and training to help our members better understand how to use these tools and resources to impact their community. Page 36 of 40 {!) MINNESOTA AHRO SERVING MIN NESOTA'S HOUSING & COMMUNITY DEVELOPMENT NEEDS Page 4 of 4 Tenant/Landlord Provisions of the Judiciary Omnibus Bill This is the most substantial change in Minnesota tenant/landlord law in a single session of the Legislature in the 165-year history of the state. Unless otherwise noted, these laws will become effective 1/1/24. Bill summary is courtesy of HomeLine. • Pre-Eviction Protections: Landlords must give their tenants 14 days' written notice before filing an eviction action for nonpayment against them in court. Cities are allowed to enact and enforce their own stronger pre-filing notice requirements. • Expungement Reform: Eviction expungements become much more accessible in several situations, when: 1) the tenant prevails; 2) the case is dismissed; 3) the parties agree to expungement or upon request of the tenant if the case is settled and the tenant fulfills the terms; 4) the eviction was ordered three or more years ago. Further, evictions are prohibited from being reported in public court records until a court judgment is made for the landlord. • Transparency in the cost of housing: Requires landlords to disclose non-optional fees (along with the rent) on the first page of the lease as well as in any advertisement or posting of a unit for a residential tenancy. • Stronger Privacy Rules: Requires 24-hour notice from landlords before entering a tenant's apartment unless the tenant and landlord agree otherwise. The landlord must specify a time or anticipated window of time of entry and may only enter between 8 AM and 8 PM unless the landlord and the tenant agree to an earlier or later time. • End a lease when medically necessary: Allows tenants to break their lease with a 2- month notice if certain medical conditions—determined by a medical professional—require them to move. • Statewide Heat Code Minimum: Sets a standard statewide 68 degrees Fahrenheit heat minimum in apartments from October 1 to April 30 if the tenant does not control the heat. • Emergency Repairs: Expands the category of emergency repairs (for which court proceedings are expedited) to include, but not be limited to: o no working refrigerator; o no working air conditioning (if the rental was advertised as having air conditioning and included it in the lease); o serious infestations; o non-working elevators (if included in the lease); o Notice of Intent to Condemn; or, o loss of any conditions, services, or facilities that pose a serious and negative impact on health or safety. • Reduced Court Fees: Emergency Tenant Remedies Action / Lockout petition filing fees will be the same as the lower small claims court filing fee, making it more accessible for tenants facing serious and immediate housing repairs. Additionally, several more tenant/landlord policy changes are included in the bill: • Multiple detailed changes to formal court eviction procedures. • Regulation of pet declawing/devocalization in rental housing. • Required move-in/out inspections concerning security deposits. • Provision of the right to counsel in public housing breach of lease eviction cases (effective 8/1/23) • Guidelines for landlords who require certain types of early lease renewals. • Limitations on harmful crime-free lease provisions and penalties (effective 6/1/24). Page 37 of 40 {!) MINNESOTA AHRO SERVING MIN NESOTA'S HOUSING & COMMUNITY DEVELOPMENT NEEDS OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 6. EXECUTIVE DIRECTOR REPORT Page 38 of 40 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: September 19, 2023 SUBJECT: Executive Director Report 1. Housing Trust Fund (HTF). I am recommending that the HRA create a LLC (Limited Liability Company) to own and operate the North Fields of Dalton development in order to preserve the remaining assets of the HRA. The Otter Tail County Housing Trust Fund is one of the sources proposed for funding for the North Fields of Dalton development. I discussed with legal counsel the procedures regarding the HRA allocating funding to this development recognizing that the HRA is the administrator of the fund. A limited liability company owning housing is an eligible recipient of the HTF and the proposed use of funds is an eligible expense so the HRA Board can certainly allocate funding to the LLC. However, it is recommended that the County Board adopt a resolution, when appropriate consenting to the allocation of funds. 2. Minnesota Cities Participation Program. Three mortgages have been closed for new first-time homebuyers totaling $433,571 and 4 additional households have received “Step Up” financing for repeat homebuyers totaling $718,000. First time homebuyers have to complete the state’s virtual homebuyer education program. This program is administered by local lenders. 3. State Tax Credit Program for Housing. I will provide a brief outline on the new state program where the general public, employers, and businesses can make contributions to the new State Tax Credit Fund and receive a state income tax credit of up to 85 cents/$1 contributed. Contributions can also be designated for specific housing developments. Page 39 of 40 218-998-8730 @ HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 ti) EOU/\L HOUSING OPPORTUNITY @ ottertailcounty.gov OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 7. GENERAL DISCUSSION TOPICS BY COMMISSIONERS and ADJOURN Page 40 of 40 1ir EOU/\L HOUSING OPPORTUNITY