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Housing & Redevelopment Authority - HRA-Packet-12-18-2023 Supporting Documents - 12/18/2023
OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY BOARD PACKET December 18, 2023 1 of 98 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN December 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, November 21, 2023 B. Housing Choice Voucher Rental Assistance Program Report November 2023 C. Community Housing Investment Programs Report November 2023 D. Public Housing Program Report November 2023 E. Check Report and November 2023 Financial Reports F. Resolution No. 264 Adopting Bank Reconciliation Financial Close Out and Reporting Policy G. Resolution No. 265 Adopting Board Meeting Policy H. Resolution No. 266 Adopting General Internal Controls Policy I. Resolution No. 267 Adopting Uncashed and Voiding of Checks Policy 4. Public Hearing A. Sale of 117 NW 1st Avenue, Pelican Rapids 5. New Business A. Resolution No. 268 Approving Sale of Property At 117 1st NW Avenue in Pelican Rapids B. Resolution No. 269 Award 2024 Public Housing Insurance Bid; Authorize Execution of Insurance Documents C. Resolution No. 270 Approving the Write Off of Outstanding Debts from Vacated Tenants D. Resolution No. 271 Authorizing the Housing Program Supervisor and Project Manager to Execute Loan and Grant Documents for the Community Housing Investment Programs and Small City Development Programs; Rescinding Resolution No. 196 E. Resolution No. 272 Authorizing Application to Minnesota Cities Participation Program; Authorizing Execution of Commitment Agreement with Minnesota Housing F. Resolution No. 273 Reassigning Committed Funds 2 of 98 6. Executive Director Report 7. General Discussion – Topics by Commissioners 8. Adjourn 3 of 98 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 3. CONSENT AGENDA 4 of 98 1ir EOU/\l. HOUSING OPPORTUNITY The Otter Tail County HRA Board of Commissioners Met for a regular meeting on November 21, 2023 at 11:45am At the Otter Tail County Government Services Center 515 W Fir Ave, Fergus Falls, MN Board Members Present: Wayne Johnson, Chairperson Jeff Ackerson Kurt Mortenson Betty Murphy Leland (Lee) Rogness, Vice Chairperson Others Present: Barbara Dacy, OTC HRA Executive Director Amy Baldwin, OTC CDA Director Tanya Westra, OTC HRA Project Manager Julie Bakken, OTC HRA Accounting Specialist Paula Grunewald, OTC HRA Administrative Assistant 1. CALL TO ORDER Chairperson, Wayne Johnson, called the meeting to order at 11:50 am. 2. APPROVAL OF AGENDA Barbara Dacy, OTC HRA Executive Director, stated that Resolution 261 “Adopting the 2024 Annual Budget” had updates on the General Revolving Fund portion of Exhibit A and an amended Exbibit A was provided. Motion made by Lee Rogness, second by Betty Murphy to approve the November 21, 2023 Agenda. Motion passed unanimously. There was no additional discussion. 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made by Kurt Mortenson, second by Jeff Ackerson to approve the Consent Agenda. Motion passed unanimously. There was no additional discussion. 4. NEW BUSINESS A. Resolution No. 258 Adopt Amendment To Community Housing Improvement Program Down Payment Assistance and the Emergency Housing Repair Program Requirements. Tanya Westra, OTC Housing Program Supervisor, stated that the Down Payment Assistance and Emergency Home Repair Programs need to be amended because of increasing housing costs. She stated that Resolution No. 258 amends the Down Payment Assistance Program Policy to increase the deferred loan amount to 6% of the purchase price, up to a maximum of $15,000, and decrease the homebuyer match requirement to 2% of the purchase price. She stated that Resolution No. 258 also amends the Emergency Housing Repair Program to increase the Lifetime Benefit to $20,000, add code violations as an eligible activity and increase the maximum estimated market value of the property to $250,000. Motion made by Kurt Mortenson, second by Betty Murphy to approve. Motion passed unanimously. B. Resolution No. 259 Adopting Write-Off Policy Tanya Westra stated that that the Write-Off Policy matches the current practice regarding tenant receivables, 5 of 98 218-998-8730 @ 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 and it does not relieve the tenant’s responsibility to pay amounts due to the HRA. She stated that the HRA submits any unpaid amounts to the “Revenue Recapture” Program, and the 2023 unpaid balances will be presented at the December meeting. Motion made by Lee Rogness, second by Jeff Ackerson to approve. Motion passed unanimously. C. Resolution No. 260 Adopting 2024 Public Housing Operating Budget Tanya Westra stated the Public Housing Operating Budget was based on year-to-date information through October 31, 2023. She stated that HUD requires adoption of the form included in the packet and is required to be submitted electronically. She stated that the budget includes a $20,000 allocation of Special Benefit Levy for 2024, as has been done in 2022 and 2023. She stated that the HRA did not utilize the $20,000 in 2022 and it is anticipated that it will not be used in 2023. It was noted that there was increased fees in insurance, as well as management fees. Motion made by Kurt Mortenson, second by Betty Murphy to approve. Motion passed unanimously. D. Resolution No. 261 Adopting 2024 Housing and Redevelopment Authority Budget Director Barbara Dacy stated the proposed budget is approximately $1 million dollars smaller due to the completion of the Hidden Meadows development. She stated that this is a good example of how the HRA Budget can fluctuate from year to year because of various funding programs. She stated that the budget reflects the strategic initiatives of the HRA to keep people in homes (67% of the budget), create new homes (8% of the budget), and provide technical assistance (14% of the budget) and operating expenses (10% of the budget). She stated that the Special Benefit Levy provides a majority of the HRA funding but it leverages outside funding from the federal and state at a $1 to $1.14 ration. Motion made by Lee Rogness, second by Kurt Mortenson to approve. Motion passed unanimously. E. Resolution No. 262 Appoint Amy Baldwin Housing and Redevelopment Authority Executive Director Effective December 4, 2023 Director Barbara Dacy stated that it is recommended that Amy Baldwin be appointed Housing and Redevelopment Authority Executive Director as of December 4, 2023. She stated that her Independent Contractor Agreement with the HRA terminates as of 12/31/2023. She stated that transitioning now permits time for the transition of various administrative issues between Barbara Dacy and Amy Baldwin. She noted that the resolution identifies other duties that she will undertake in December. Motion made by Betty Murphy, second by Jeff Ackerson to approve. Motion passed unanimously. Commissioner Betty Murphy thanked Director Barbara Dacy and said, “she is amazing”. Commissioner Johnson, stated “We have been very fortunate to have you.” F. Resolution No. 263 Adopting Purchasing Card Policy and Procedures; Rescind Resolution No. 160 Director Barbara Dacy reported that the county recently updated to its purchasing card policy. She stated that the purpose of the resolution is to enable the issuance of a department card for the HRA and employees would need to abide by the policy. She stated that the HRA has a Home Depot credit card for emergency and non-routine supplies for the scattered site public housing units, but this is not a credit card by definition. Motion made by Jeff Ackerson, second by Kurt Mortenson to approve. Motion passed unanimously. 5. EXECUTIVE DIRECTOR REPORT 1. 117 NW 1st Avenue, Pelican Rapids, MN. Directory Barbara Dacy stated that the HRA has received an offer to purchase the property at 117 NW 1st Avenue in Pelican Rapids. She stated that statute requires a public hearing prior to the sale of HRA owned property, and a public hearing will be scheduled for the December 18, 2023, meeting, and potential action by the Board. Motion made by Lee Rogness to hold a Public Meeting on December 18, 2023 at noon, second by Kurt Mortenson to approve. Motion passed unanimously. 6 of 98 Pg. 3 2. North Fields of Dalton. Staff is considering preparing a competitive proposal process for the proposed development. 3. Statewide Affordable Housing Aid. She stated that Otter Tail County will receive $143,671 in December 2023 and December 2024. Staff will schedule time with the county finance committee to discuss potential uses of the funds. 4. Commissioners Training. Ms. Dacy stated that the next training, “The Role of the Commissioner in the Future of HRA”, will be held on November 29 at 11:30 am. 5. Small Cities Development Program. The deadline for submission is November 29 for Pelican Rapids. 6. GENERAL DISCUSSION – TOPICS BY COMMISSIONERS Amy Baldwin, OTC Community Development Director, stated a Request for Proposal or a Request for Qualifications will be distributed for additional expertise and technical knowledge regarding housing and redevelopment programs, especially federal programs. Ms. Baldwin stated that the recent Housing Summit on November 16 was a success and stated that the county should continue to hold them. She stated that the public seems to appreciate the information and it was well attended. Director Barbara Dacy said it has been a tremendous honor to serve the Otter Tail County HRA. 7. ADJOURNMENT At 12:47 pm a motion was unanimously carried to adjourn the meeting. __________________________________________________ ___________________ Kurt Mortenson/Secretary/Clerk Date 7 of 98 11/30/2023 12/1/2023 Difference 40,273.00$ 44,093.00$ $3,820.00 94 98 *HAP Transactions 39,390.00$ 42,919.00$ *Utility Reimbursements 883.00$ 1,174.00$ *HAP Adjustment *Portability Tranactions (Out) *Portablilty Admin Fee (Paid) 11/30 12/1 New Admissions 6 End Participation 2 Shop Mode/ARS 0 Ports-Out Paid 0 0 Ports Out Pending 0 0 Ports In Pending 0 1 11/7/2023 Waiting List/To Date 0 Applications in Progress 23 Vouchers Issued 16 Vouchers "On the Strreet"0 ELI%100% Monthly Trend Report*Units Available Units Leased Leasing %Budget % Per Unit $ 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$ September 2023 144 95 68.7% 97.1% 434.00$ October 2023 144 94 68.4% 96.8% 426.53$ November 2023 144 94 67.2% 95.2% 428.43$ *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 November 30, 2023 Program Total Financial Transaction Paid This Month* UML (Unit Months Leased or # of Households) 8 of 98 &, 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 November 2023 Program Applications Approved Applications Denied Inspections Conducted Proceed to Work Issued Projects Complete Goal Program End Date Emergency Home Repair Program (EHRP) 1 1 1 On-Going Down Payment Assistance (DPA) 2 2 On-Going SCDP: Reuse 2 2 2 2 On-Going 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 8 6 8 5 5 20 Residential Owner-Occupied Leverage (ROHL) 4 4 3 UNDERWOOD 09/30/2024 SCDP: Homeowner 12 4 12 9 8 17 Residential Owner-Occupied Leverage (ROHL) 5 5 4 9 of 98 218-998-8730 HOUSING AND REDEVELOPMENT AUTHORITY ottertailcou nty.gov Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 hra@ottertailcounty.gov PUBLIC HOUSING BOARD REPORT November 2023 Rents Payable $2,788 Rents Collected $2,788 Total Negative Rents $500 Negative Rents Paid $234.95 Late Fees Charged $26 Late Fees Collected $26 Number of Units Paying Flat/Ceiling Rent 1 Fiscal Year ELI 100% WAITING LIST 2 Bedroom 21 3 Bedroom 3 4 Bedroom 0 VACANCIES UNIT VACATED LEASE SIGNED 3 Bdrm - Henning 08/14/2023 Eligible family identified pending receipt of birth certificate 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 98 218-998-8730 HOUSING AND REDEVELOPMENT AUTHORITY ottertailcou nty.gov Government Services Cen ter 500 West Fir Avenue Fergus Falls, MN 56537 hra@ottertailcounty.gov Doc Num Voided Type Document Recipient #2023-030 No INV City of Henning 67 No DD Barbara Dacy LLC 1395 No CHK City of Battle Lake 1396 No CHK HighPoint Homes Inc 1397 No CHK Kevin Currie 1398 No CHK Contractor Compliance & Monitoring Inc 1399 No CHK Cynthia Yuen Arbit 1400 No CHK HighPoint Homes Inc 1401 No CHK Jennifer Abbott 1402 No CHK Language Line Services Inc 1403 No CHK N F Field Abstract Co LLC 1404 Yes CHK Otter Tail County Recorder's Office 1404 No VD Otter Tail County Recorder's Office 1405 No CHK Otter Tail County Recorder's Office 09/15/23-10/13/23 No INV Cardmember Service Payments $142,289.65 $142,289.65 Count 2 1 11 1 15Total:$142,289.65 End of Report $9,743.45 Check (CHK)$131,468.22 Void Payment (VD)($46.00) Project Summary Program - Project Deposits General Revolving (GR) - General Revolving $0.00 Total:$0.00 Type Summary Document Type Amount Invoice (INV)$1,123.98 Direct Deposit (DD) Cleared: 13 $119,930.65 Uncleared: 2 $22,359.00 Total Payments: 15 $142,289.65 11/17/2023 Notary Commission-M Harry Yes $20.00 10/12/2023 Hotels & Office Supplies Yes $823.98 11/17/2023 Notary Commission-M Harry Yes $46.00 11/17/2023 Written for wrong amount.Yes ($46.00) 11/17/2023 Over-the-Phone Interpretation Yes $44.55 11/17/2023 O&E SL A SE 1/4 25-136-41 Yes $85.00 11/17/2023 Hidden Meadows #109 Pay App #9 No $22,059.00 11/17/2023 Hearing Prep & Write Up Yes $460.00 11/17/2023 HM Labor Compliance Service Oct 23 Yes $750.00 11/17/2023 Technical Assistance June, Oct, Nov Yes $213.75 11/03/2023 Hidden Meadows #109 Pay App #7 Yes $103,582.00 11/03/2023 October 2023 Consulting Services Yes $3,907.92 11/03/2023 October 2023 Services Yes $9,743.45 11/03/2023 109 Hidden Meadows Connection Charge No $300.00 Payment Date Document Description Cleared Amount 11/01/2023 109 Hidden Meadows Connection Charge Yes $300.00 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 12/6/2023 10:03:20 AM Printed by: Julie Bakken 11 of 98 92% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3610 Interest Income 3703/5353/3741/0054 515.88 5,530.55 1,800.00 3,730.55 307% 3690 Other Revenue MISC 1,757.27 1,757.27 3690.01 SCDP Administration (DEED) - All Communities 2,912.46 85,000.00 (82,087.54)3% 3690.02 SCDP City/Grant Funds - All Communities 325.00 19,742.77 444,920.00 (425,177.23)4% 3690.99 Refunds & Reimbursements 272.00 13,477.85 13,477.85 3691 Levy Revenue 68,276.71 1,258,395.56 1,309,725.00 (51,329.44)96% 3693.01 CHIP Emerg Housing Repair Program (EHRP) Repayment 6,842.00 6,842.00 3693.03 CHIP FFHRA Rehab Repayments 7,791.60 31,804.50 31,804.50 3693.05 CHIP Rental Rehab Revolving Loan Payments 1,710.52 17,783.58 31,821.00 (14,037.42)56% 3695.01 MHFA Loan Distributions - All Projects 220,875.80 568,477.80 500,000.00 68,477.80 114% 3695.02 MHFA Grant Distributions - All Projects 516,000.00 (516,000.00)0% 3697 Owner Match Revenue 9,469.93 9,469.93 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 299,767.51 2,359,061.42 3,709,266.00 (1,350,204.58)64% EXPENSES 4130 Legal 3,352.96 30,000.00 26,647.04 11% 4140 Staff Training 755.30 6,340.52 5,000.00 (1,340.52)127% 4150 Travel 369.26 4,300.00 3,930.74 9% 4170 Accounting 45,000.00 60,000.00 15,000.00 75% 4171 Audit 15,175.00 16,100.00 925.00 94% 4190 Other Administrative Expenses 2,227.80 200.00 (2,027.80)1114% 4190.01 Manuals, Subscriptions 717.00 200.00 (517.00)359% 4190.02 Office Supplies 88.68 1,084.50 1,700.00 615.50 64% 4190.03 Postage 2,128.62 4,500.00 2,371.38 47% 4190.04 Telephone & Internet 199.70 300.00 100.30 67% 4190.05 Dues 911.74 1,000.00 88.26 91% 4190.06 Advertising 1,538.11 1,300.00 (238.11)118% 4190.08 Consulting Fees 718.30 7,669.34 28,000.00 20,330.66 27% 4190.2 Management Fees-OTC Admin 212,204.28 364,342.00 152,137.72 58% 4190.21 Management Fees-Administrator Contract 9,743.45 97,434.50 116,918.00 19,483.50 83% 4190.22 Management Fees - Construction Consultant 3,907.92 43,263.60 40,000.00 (3,263.60)108% 4210 Board Member Payments 3,697.39 4,900.00 1,202.61 75% 4430.1 Misc Contracts - Software 6,373.50 5,000.00 (1,373.50)127% 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 2,000.00 1,915.00 4% 4590.02 SCDP Lead Based Paint Testing 650.00 10,000.00 9,350.00 7% 4590.03 SCDP Construction (DEED)116,107.77 432,000.00 315,892.23 27% 4590.04 SCDP Recording Fees 460.00 920.00 460.00 50% 4590.05 SCDP General Expense - Leverage 212,007.00 212,007.00 0% 4591 MHFA Impact Fund Expenses 126,241.00 1,030,568.78 1,016,000.00 (14,568.78)101% 4591.01 MHFA Administration/Overrun 1,801.00 31,373.77 75,000.00 43,626.23 42% 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 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 44,657.43 (44,657.43) 4593.05 CAP Legal Fees 4,627.00 (4,627.00) 4594 CHIP Down Payment Assistance 10,000.00 50,000.00 40,000.00 20% 4595.01 CHIP Emergency Housing Repair Program (EHRP)85.00 85.00 40,000.00 39,915.00 0% 4595.02 CHIP Res Owner Occupied Housing Leverage (ROHL)6,833.15 70,000.00 63,166.85 10% 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 143,340.65 1,990,891.78 3,607,107.00 1,616,215.22 55% SURPLUS 156,426.86 368,169.64 102,159.00 266,010.64 360% Otter Tail County Housing Redevelopment Authority Operating Statement Eleven Months Ending 11/30/2023 Program: General Revolving (GR) Project: Consolidated Percent of Year www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 12/6/2023 9:17:46 AM Printed by: Julie Bakken 12 of 98 Period Amount Balance ASSETS 1111 Cash 171,799.22 1,350,673.60 1111.1 Certificates of Deposit 142,898.17 1111.2 Cash MHFA Loan Acct #0054 0.50 4,083.10 1111.3 Cash Committed for Hidden Meadows 375,000.00 1111.4 Committed for Housing Trust Fund 542,596.00 1113 Cash Rental Rehab 1,773.14 305,680.01 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 156,426.86 2,921,853.62 LIABILITIES AND SURPLUS LIABILITIES 2310 MHFA Note Payable 167,006.00 TOTAL LIABILITIES 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) 156,426.86 368,249.64 TOTAL SURPLUS 156,426.86 2,754,847.62 TOTAL LIABILITIES AND SURPLUS 156,426.86 2,921,853.62 Otter Tail County Housing Redevelopment Authority Balance Sheet November 2023 Program: General Revolving (GR) Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 12/6/2023 9:17:45 AM Printed by: Julie Bakken 13 of 98 Doc Num Voided Type 638 No DD 639 No DD 640 No DD 641 No DD 642 No DD 643 No DD 644 No DD 645 No DD 646 No DD 647 No DD 648 No DD 649 No DD 650 No DD 651 No DD 652 No DD 653 No DD 654 No DD 655 No DD 656 No DD 657 No DD 658 No DD 659 No DD 660 No DD 661 No DD 662 No DD 663 No DD 664 No DD 665 No DD 666 No DD 667 No DD 668 No DD 669 No DD 670 No DD 671 No DD 672 No DD 673 No DD 674 No DD 675 No DD 676 No DD 677 No DD 678 No DD 6124 No CHK 6125 No CHK 6126 No CHK 6127 No CHK 6128 No CHK 6129 No CHK 6130 No CHK 6131 No CHK 6132 No CHK11/01/2023 HAP Util Payment Nov 23 Yes $37.00 11/01/2023 HAP Payment Nov 23 Yes $331.00 11/01/2023 HAP Payment Nov 23 Yes $466.00 11/01/2023 HAP Payment Nov 23 No $461.00 11/01/2023 HAP Payment Nov 23 Yes $667.00 11/01/2023 HAP Payment Nov 23 Yes $357.00 11/01/2023 HAP Payment Nov 23 Yes $969.00 11/01/2023 HAP Payment Nov 23 Yes $675.00 11/01/2023 HAP Payment Nov 23 Yes $1,045.00 11/01/2023 HAP Payment Nov 23 Yes $637.00 11/01/2023 HAP Payment Nov 23 Yes $238.00 11/01/2023 HAP Payment Nov 23 Yes $674.00 11/01/2023 HAP Payment Nov 23 Yes $527.00 11/01/2023 HAP Payment Nov 23 Yes $1,240.00 11/01/2023 HAP Payment Nov 23 Yes $294.00 11/01/2023 HAP Payment Nov 23 Yes $429.00 11/01/2023 HAP Payment Nov 23 Yes $280.00 11/01/2023 HAP Payment Nov 23 Yes $590.00 11/01/2023 HAP Payment Nov 23 Yes $496.00 11/01/2023 HAP Payment Nov 23 Yes $396.00 11/01/2023 HAP Payment Nov 23 Yes $517.00 11/01/2023 HAP Payment Nov 23 Yes $670.00 11/01/2023 HAP Payment Nov 23 Yes $289.00 11/01/2023 HAP Payment Nov 23 Yes $268.00 11/01/2023 HAP Payment Nov 23 Yes $357.00 11/01/2023 HAP Payment Nov 23 Yes $401.00 11/01/2023 HAP Payment Nov 23 Yes $815.00 11/01/2023 HAP Payment Nov 23 Yes $391.00 11/01/2023 HAP Payment Nov 23 Yes $3,401.00 11/01/2023 HAP Payment Nov 23 Yes $267.00 11/01/2023 HAP Payment Nov 23 Yes $493.00 11/01/2023 HAP Payment Nov 23 Yes $596.00 11/01/2023 HAP Payment Nov 23 Yes $900.00 11/01/2023 HAP Payment Nov 23 Yes $411.00 11/01/2023 HAP Payment Nov 23 Yes $5,203.00 11/01/2023 HAP Payment Nov 23 Yes $880.00 11/01/2023 HAP Payment Nov 23 Yes $145.00 11/01/2023 HAP Payment Nov 23 Yes $450.00 11/01/2023 HAP Payment Nov 23 Yes $1,031.00 11/01/2023 HAP Payment Nov 23 Yes $1,023.00 11/01/2023 HAP Payment Nov 23 Yes $625.00 11/01/2023 HAP Payment Nov 23 Yes $1,025.00 11/01/2023 HAP Payment Nov 23 Yes $5,949.00 11/01/2023 HAP Payment Nov 23 Yes $400.00 11/01/2023 HAP Payment Nov 23 Yes $294.00 11/01/2023 HAP Payment Nov 23 Yes $327.00 11/01/2023 HAP Payment Nov 23 Yes $394.00 11/01/2023 HAP Payment Nov 23 Yes $301.00 11/01/2023 HAP Payment Nov 23 Yes $247.00 Payment Date Document Description Cleared Amount 11/01/2023 HAP Payment Nov 23 Yes $548.00 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 12/6/2023 10:17:00 AM Printed by: Julie Bakken 14 of 98 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers 6133 No CHK 6134 No CHK 6135 No CHK 6136 No CHK 6137 No CHK 6138 No CHK 6139 No CHK 6140 No CHK 6141 No CHK 6142 No CHK 6143 No CHK 6144 No CHK 6145 No CHK Doc Num Voided Type 22-041212367 No MO 27762628792 No MO Payments $40,542.54 $40,542.54 Count 41 22 2 65 End of Report $6,123.54 Money Order (MO)$148.00 Total:$40,690.54 Project Summary Program - Project Deposits Housing Choice $148.00 Total:$148.00 Type Summary Document Type Amount Direct Deposit (DD)$34,419.00 Check (CHK) Cleared: 2 $148.00 Uncleared: 0 $0.00 Total Deposits: 2 $148.00 11/08/2023 Payment - Money Order Yes $75.00 11/08/2023 Payment - Money Order Yes $73.00 Posted Deposits Control Date Document Description Cleared Amount Cleared: 61 $39,856.54 Uncleared: 2 $686.00 Total Payments: 63 $40,542.54 11/17/2023 Nov 2023 Mileage Reimb Yes $44.54 11/17/2023 NSPIRE Training for Kelly Miller No $225.00 11/01/2023 HAP Util Payment Nov 23 Yes $34.00 11/01/2023 HAP Util Payment Nov 23 Yes $49.00 11/01/2023 HAP Util Payment Nov 23 Yes $148.00 11/01/2023 HAP Util Payment Nov 23 Yes $48.00 11/01/2023 HAP Util Payment Nov 23 Yes $77.00 11/01/2023 HAP Util Payment Nov 23 Yes $36.00 11/01/2023 HAP Util Payment Nov 23 Yes $290.00 11/01/2023 HAP Util Payment Nov 23 Yes $84.00 11/01/2023 HAP Util Payment Nov 23 Yes $54.00 11/01/2023 HAP Util Payment Nov 23 Yes $12.00 11/01/2023 HAP Util Payment Nov 23 Yes $14.00 www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 2 of 2 12/6/2023 10:17:00 AM Printed by: Julie Bakken 15 of 98 92% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rent HAP Repayment 7,156.00 7,156.00 3301 Admin Subsidy 6,861.00 70,902.00 79,201.00 (8,299.00)90% 3301.1 HAP Subsidy 28,823.00 447,490.00 434,498.00 12,992.00 103% 3450 Fraud Recovery - Admin 50%2,873.24 2,873.24 3450.1 Fraud Recovery - HAP 50%2,873.24 2,873.24 3610 Investment Income (0062)9.98 123.64 105.00 18.64 118% 3690.1 Other Revenue HAP 30,000.00 (30,000.00)0% TOTAL INCOME 35,693.98 531,418.12 543,804.00 (12,385.88)98% EXPENSES 4140 Staff Training 225.00 225.00 (225.00) 4150 Travel 44.54 404.39 1,200.00 795.61 34% 4190 Other Admin Expenses (Apps, Service Charges)11.00 285.51 120.00 (165.51)238% 4190.01 Manuals, Subscriptions 240.00 240.00 0% 4190.08 Consulting Fees 1,945.00 1,945.00 100% 4190.2 Management Fees-OTC 67,275.89 93,887.00 26,611.11 72% 4715.1 HAP Occupied Units 40,273.00 437,909.00 394,904.00 (43,005.00)111% 4715.P HAP-Portability Out 15,330.00 32,462.00 17,132.00 47% 4716.P Port Out Admin Fee 1,016.08 1,423.00 406.92 71% TOTAL EXPENSES 40,553.54 524,390.87 526,181.00 1,790.13 SURPLUS (4,859.56)7,027.25 17,623.00 (10,595.75)40% Otter Tail County Housing Redevelopment Authority Operating Statement Eleven Months Ending 11/30/2023 Program: Housing Choice Vouchers Project: Consolidated Percent of Year www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 12/6/2023 9:35:19 AM Printed by: Julie Bakken 16 of 98 Period Amount Balance ASSETS 1111 Cash Unrestricted (4,711.56)55,312.37 1121 Fraud A/R (148.00)2,697.00 1129 A/R Tenants 4,311.00 TOTAL ASSETS (4,859.56)62,320.37 LIABILITIES AND SURPLUS LIABILITIES TOTAL LIABILITIES SURPLUS 2700 Inc & Exp Clearing 4,078.69 2805 Restricted Net Position 22,114.50 2805 Restricted Net Position (Current Year) (11,450.00)(2,875.76) 2806 Unrestricted Position 29,099.93 2806 Unrestricted Position (Current Year) 6,590.44 9,903.01 TOTAL SURPLUS (4,859.56)62,320.37 TOTAL LIABILITIES AND SURPLUS (4,859.56)62,320.37 Otter Tail County Housing Redevelopment Authority Balance Sheet November 2023 Program: Housing Choice Vouchers Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 12/6/2023 9:35:18 AM Printed by: Julie Bakken 17 of 98 Doc Num Voided Type #01-00000684-00-1 Oct 23 No INV #01-00000683-00-0 Oct 23 No INV #01-00000621-00-0 Oct 23 No INV #01-00041004-00-6 Oct 23 No INV #01-00041152-00-6 Oct 23 No INV #10108 Oct 23 No INV #10350 Oct 23 No INV #10787 Oct 23 No INV #1129723 Oct 23 No INV #1130792 Oct 23 No INV #1130793 Oct 23 No INV #1130796 Oct 23 No INV #1130799 Oct 23 No INV #1130903 Oct 23 No INV #1143860 Oct 23 No INV #480160 Oct 23 No INV #480161 Oct 23 No INV #991 721 5394 4 Oct 23 No INV #991 721 5394 4 Nov 23 No INV 7306 No CHK 7307 No CHK 7308 No CHK 7309 No CHK 7310 No CHK 7311 No CHK 7312 No CHK 7313 No CHK 7314 No CHK 7315 No CHK 7316 No CHK 7317 No CHK 7321 No CHK Doc Num Voided Type 1214 No CHK 1218 No CHK 1316 No CHK 1317 No CHK 1318 No CHK 2825 No CHK 3581 No CHK 3596 No CHK 5623 No CHK 82458959 No CHK 82458960 No CHK 82458961 No CHK 11/02/2023 Payment - Check State of MN Yes $170.49 11/02/2023 Payment - Check State of MN Yes $392.00 11/07/2023 Payment - Check Yes $867.28 11/02/2023 Payment - Check State of MN Yes $91.00 11/02/2023 Payment - Check Yes $240.00 11/20/2023 Payment - Check Yes $240.00 11/20/2023 Payment - Check Yes $559.91 11/07/2023 Payment - Check Yes $300.00 11/02/2023 Payment - Check Yes $165.99 11/02/2023 Payment - Check Yes $112.75 11/02/2023 Payment - Check Yes $725.78 11/20/2023 Payment - Check Yes $290.62 Posted Deposits Control Date Document Description Cleared Amount 12/01/2023 Payment Nov 23 No $198.98 Cleared: 30 $5,039.70 Uncleared: 2 $240.36 Total Payments: 32 $5,280.06 11/17/2023 Serve Eviction Summons Yes $107.60 11/17/2023 504 Marshall, Henning Yes $914.73 11/17/2023 Nov 23 Mileage Reimb Yes $29.48 11/17/2023 Water, Gas, Sewer Yes $658.36 11/17/2023 Cleaning 504 Marshall, Yes $165.00 11/17/2023 Quickfit Handle Set Yes $53.36 11/06/2023 11/6/23 Eviction Notice Yes $295.00 11/17/2023 Solar Salt Yes $21.40 11/03/2023 Oct 23 Mileage Reimb Yes $53.71 11/03/2023 Payment Nov 23 Yes $234.95 11/03/2023 Cleaning Services - Henning Yes $765.00 11/03/2023 Maintenance Materials Yes $94.07 10/11/2023 Gas Yes $21.20 11/08/2023 Gas No $41.38 10/31/2023 Gas Yes $34.37 10/31/2023 Gas Yes $16.36 10/19/2023 Electric Yes $15.56 10/19/2023 Electric Yes $73.82 10/19/2023 Electric Yes $114.63 10/19/2023 Electric Yes $72.39 10/19/2023 Electric Yes $126.80 10/19/2023 Electric Yes $112.75 10/02/2023 Water, Sewer Yes $88.14 10/19/2023 Electric Yes $53.46 10/25/2023 Water, Sewer Yes $106.26 10/25/2023 Water, Sewer Yes $80.36 11/01/2023 Water, Electric, Gas, Sewer Yes $250.00 11/01/2023 Water, Electric, Gas, Sewer Yes $252.28 10/30/2023 Water, Sewer Yes $58.02 11/01/2023 Water, Electric, Gas, Sewer Yes $109.96 Payment Date Document Description Cleared Amount 10/30/2023 Water, Sewer Yes $60.68 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 2 12/6/2023 10:21:50 AM Printed by: Julie Bakken 18 of 98 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Public Housing 27407470803 No MO 28114210776 No MO 28365507810 No MO Payments $5,280.06 $5,280.06 Count 19 25 3 47 End of Report $7,747.46 Money Order (MO)$1,180.00 Total:$10,615.88 Project Summary Program - Project Deposits Public Housing - Family $5,335.82 Total:$5,335.82 Type Summary Document Type Amount Invoice (INV)$1,688.42 Check (CHK) 11/29/2023 Payment - Money Order Yes $820.00 Cleared: 15 $5,335.82 Uncleared: 0 $0.00 Total Deposits: 15 $5,335.82 11/07/2023 Payment - Money Order Yes $229.68 11/07/2023 Payment - Money Order Yes $130.32 www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 2 of 2 12/6/2023 10:21:50 AM Printed by: Julie Bakken 19 of 98 92% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rental 2,288.00 32,979.46 25,000.00 7,979.46 132% 3401.1 HUD Operating Subsidy 3,004.00 46,140.00 45,000.00 1,140.00 103% 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)29.35 244.76 40.00 204.76 612% 3690 Other Income (NSF, Late Fee, GR Support)26.00 832.50 21,000.00 (20,167.50)4% 3690.1 Water Charge Income 582.37 6,849.80 6,300.00 549.80 109% 3690.2 Electric Charge Income 655.24 10,411.94 8,550.00 1,861.94 122% 3690.3 Gas Charge Income 417.46 7,627.34 11,000.00 (3,372.66)69% 3690.31 Sewer Charge Income 685.10 7,905.13 7,350.00 555.13 108% 3690.4 Other Tenant Charges (Maint)1,209.00 1,209.00 TOTAL INCOME 7,687.52 165,534.81 164,240.00 1,294.81 101% EXPENSES 4130 Legal 402.60 783.10 750.00 (33.10)104% 4140 Staff Training 450.00 500.00 50.00 90% 4150 Travel 83.19 477.02 1,000.00 522.98 48% 4171 Audit 2,000.00 2,000.00 0% 4190 Other Admin Expenses (Reports, Apps)59.00 2,100.00 2,041.00 3% 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 1,945.00 100% 4190.2 Management Fees-OTC 16,999.99 17,000.00 0.01 100% 4310 Water 548.37 6,417.29 6,400.00 (17.29)100% 4320 Electric 724.30 9,120.48 8,700.00 (420.48)105% 4330 Gas 426.66 7,361.74 11,500.00 4,138.26 64% 4331 Sewer 647.45 7,193.20 7,500.00 306.80 96% 4400 Maintenance - Tools & Equip 22.95 750.00 727.05 3% 4420 Maintenance - Materials 147.43 2,519.42 5,500.00 2,980.58 46% 4430 Maintenance - Contracts 951.40 7,812.83 20,000.00 12,187.17 39% 4431 Garbage and Trash Removal Contracts 914.73 1,044.73 500.00 (544.73)209% 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 4,846.13 116,178.59 143,558.00 27,379.41 81% SURPLUS 2,841.39 49,356.22 20,682.00 28,674.22 239% Otter Tail County Housing Redevelopment Authority Operating Statement Eleven Months Ending 11/30/2023 Program: Public Housing Project: Consolidated Percent of Year www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 12/6/2023 9:46:17 AM Printed by: Julie Bakken 20 of 98 Period Amount Balance ASSETS 1111 Cash 3,089.11 134,060.60 1114 Tenant Security Deposit Cash 9,044.40 1122 A/R Tenants (505.95)3,675.02 1122.1 Allowance for Doubtful Accts (200.00) 1400.5 Accumulated Depreciation (1,072,546.36) 1400.6 Land 32,990.31 1400.7 Buildings 1,661,869.49 TOTAL ASSETS 2,583.16 768,893.46 LIABILITIES AND SURPLUS LIABILITIES 2111.1 A/P Tenants (234.95) 2114 Tenant Security Deposits 9,044.40 2240 Tenants Prepaid Rent (23.28)1,543.46 TOTAL LIABILITIES (258.23)10,587.86 SURPLUS 2700 Income/Expense Clearing Account (63,672.49) 2700 Income/Expense Clearing Account (Current Year) 2,841.39 49,356.22 2802 Invested in Capital Assets, Net of Related Debt 679,466.94 2806 Unrestricted Net Position 93,154.93 TOTAL SURPLUS 2,841.39 758,305.60 TOTAL LIABILITIES AND SURPLUS 2,583.16 768,893.46 Otter Tail County Housing Redevelopment Authority Balance Sheet November 2023 Program: Public Housing Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 12/6/2023 9:46:17 AM Printed by: Julie Bakken 21 of 98 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _December 18, 2023__ BOARD MEETING DATE AGENDA ITEM #3F Administration ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 12/18/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 264 Adopting Bank Reconciliation Financial Close Out and Reporting Policy PROPOSED REQUEST/JUSTIFICATION The proposed policy contains the routine procedures regarding monthly and year-end bank account reconciliations and monthly and year-end financial transactions close-out and reporting. In addition, it requires the Executive Director to review month end financial reports and requires routine communication with Finance staff regarding organizational issues, program changes or other activities that may require accounting modifications. The policy also contains the procedures for the specific tasks required to complete the year-end financial statements, including the federal reporting requirements and transmission of the audit report to the HRA Finance Committee and the HRA Board. The policy mirrors current practice. Staff recommends that the Board adopt the attached resolution approving the Bank Reconciliation Financial Close Out and Reporting Policy. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/13/2023 ATTACHMENT LIST: Resolution No. 264 and Exhibit A FINANCIAL IMPLICATIONS: NA BUDGETED: YES NO FUNDING: COMMENTS 22 of 98 RESOLUTION NO. 264 RESOLUTION ADOPTING BANK RECONCILIATION FINANCIAL CLOSE OUT AND REPORTING 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 regarding bank account reconciliations, fiscal year close out tasks, and reporting procedures (the “Policy”), as represented in Exhibit A; and WHEREAS, the Authority has determined that the provisions contained in the Policy as represented in Exhibit A, attached hereto and incorporated herein, are necessary and appropriate. NOW THEREFORE BE IT 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 December, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 23 of 98 EXHIBIT A BANK RECONCILIATION, FINANCIAL CLOSE OUT & REPORTING POLICY BANK RECONCILIATION POLICY This policy applies to all HRA programs, including federal and non-federal, and programs subject to partnership agreements, regulatory agreements, and/or financial agreements, unless specifically noted in the above-mentioned agreements. Each bank account will be reconciled monthly. Bank discrepancies will be communicated to the Finance staff. Posting discrepancies will be documented and corrected in the accounting system. BANK RECONCILIATION PROCEDURES Bank Reconciliation Each bank account will be reconciled and certified by the individual performing the actual bank reconciliation. The individual(s) initials and date will accompany the actual bank reconciliation. The signed and dated bank reconciliation certifies that: 1. The reconciliation has been reviewed for discrepancies, and 2. The reconciled balance matches the general ledger. It is preferred to have the bank reconciliations prepared within the HRA’s accounting system, but an Excel format is acceptable. Similarly, it is preferred that the bank reconciliations be prepared using an electronic copy of the bank statements in the case where the HRA’s accounting system permits the electronic reconciliation of the account. The following is a list of account balances that will be reconciled monthly: 1. Tenant accounts receivable and security deposit balances will be reconciled against tenant register reports from the system. 2. Investments will be reconciled against statements provided by the financial institution. 3. Prepaid assets and debt will be reconciled to their corresponding amortization schedules or statements. 4. Capital Fund Program (CFP) reports will be reconciled against eLOCCS draws and reports. 5. Low Rent, HCV, and other program revenues will be reconciled against the respective funding documentation. Any necessary accruals for program income will be accrued monthly. 6. Bank reconciliations will be kept with their respective bank statements and filed. 7. Management and bookkeeping fees will be reconciled against their respective schedules. 8. For accounting purposes, all inter-program transfers must be reconciled as part of the monthly reporting process. Transfer of funds from one project to another are allowed in accordance with 24 of 98 218-998-8730 @ OTTER TAIL COUNTY I HOUSING 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 applicable federal and state law and regulations. The HRA shall transfer funds from one project or program to another only if the transfer is by the Executive Director and approved. Review of Bank Reconciliations The Finance staff will review the completed reconciliation reports to ensure that there are no questionable transactions, outstanding checks, or deposits in transit. Year End Review for Outstanding Checks The HRA will retain a copy of all bank reconciliations in accordance with the HRA’s record retention policy. At the end of the fiscal year, the bank reconciliation should be specifically reviewed by the Finance staff. Any outstanding checks that have been dormant for more than three (3) years and meet the definition of unclaimed property by the state will be remitted to the state as outlined in the state’s unclaimed property rules and guidance. FINANCIAL CLOSE-OUT AND REPORTING POLICY The monthly and year-end financial close-out and reporting policy and procedures ensure that accounting transactions are completed within the HRA’s financial accounting system so that detailed, accurate, and timely financial statements are available to decision makers. For year-end close-out, the financial reports from the accounting system must be in sufficient detail to allow for the preparation of the Financial Data Schedule (FDS) and financial statements in accordance with Generally Accepted Accounting Principles (GAAP). Specifically, The financial close shall be performed timely following month-end to allow for the preparation of the financial analysis and board reporting in accordance with the respective policies. The Finance staff is responsible for the preparation and reporting of the financial statements and supporting schedules. The reporting of other information, including performance metrics shall be the responsibility of the respective areas of the HRA using information from the HRA’s management information system. FINANCIAL CLOSE-OUT AND REPORTING PROCEDURES Month-End Closing (including the fiscal year-end month) Following the entry of typical transactions including receipts, accounts payable, and disbursements into the accounting system, bank reconciliations will be prepared for all demand accounts of the HRA in accordance with the bank reconciliation policy. Any discrepancies discovered in the bank reconciliations will be addressed with applicable journal entries entered into the accounting system. Journal Entry and General Ledger Journal entries shall be created for transactions that are not disbursements and have attached supporting documentation. The journal voucher and supporting documentation shall be filed in the accounting software system for the fiscal year. As part of the monthly processing of the financial statements, the general ledger should be reviewed to determine whether the transactions have been recorded accurately. If discrepancies are noted, the Finance department should be made aware of the issue and the discrepancy should be resolved prior to the closing and printing of the final financial statements. 25 of 98 Review of Month-End Financial Reports Financial statements shall be reviewed by the Executive Director and other HRA staff, as applicable. Communication with the Finance staff will be established to ensure that the Finance staff is kept aware of any changes to the HRA organization, programs, or other HRA activity (such as changes to health benefits, accrued vacation, creation of a non-profit, etc.), which may require finance to modify the accounting for the HRA. Fiscal Year-End Closing On an annual basis, the Executive Director in conjunction with Finance staff will create a list of due dates for specific tasks required to complete the year-end financial statements. This list may include items such as reconciling the depreciation schedule or conducting an inventory of maintenance materials. This approach is intended to allocate the work related to the preparation of the year-end financial statements throughout the year rather than all at once at year end. The Finance staff will prepare the submission of the unaudited and audited Financial Data Schedule (FDS). Once a copy of the audit report is available, the audit may be reviewed by the HRA Finance Committee. A copy of the audit and minutes of the Finance Committee shall be provided as part of the next Board reporting package. The audit report shall be scheduled for acceptance at the Board meeting. The audit report will be provided to the HUD local field office and other oversight organizations, as required. 26 of 98 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _December 18, 2023__ BOARD MEETING DATE AGENDA ITEM #3G Administration ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 12/18/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 265 Adopting Board Meeting Policy PROPOSED REQUEST/JUSTIFICATION The proposed policy states that the Board must be provided with accurate and timely information, and it should be sufficient to “effectively govern the entity and monitor the implementation of policies”. This policy is intended to provide appropriate guardrails between Board and staff regarding the Board’s decision making and to establish minimum expectations regarding the information especially when it comes to monitoring the performance of federal programs. The policy also requires timely distribution of the “monthly Board reporting package” and that minutes and copies of the package are appropriately maintained. Finally, the policy states that the meetings will be advertised and conducted according to the HRA Bylaws and state law. Staff recommends that the Board adopt the attached resolution approving the Board Meeting Policy. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/13/2023 ATTACHMENT LIST: Resolution No. 265 and Exhibit A FINANCIAL IMPLICATIONS: NA BUDGETED: YES NO FUNDING: COMMENTS 27 of 98 RESOLUTION NO. 265 RESOLUTION ADOPTING BOARD MEETING 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 is governed by five (5) Commissioners (the “HRA Board of Commissioners”) appointed by the Otter Tail County Board of Commissioners (the “County Board”); and WHEREAS, the Authority has determined it prudent to adopt a Board Meeting Policy (the “Policy”), as represented in Exhibit A, regarding the content and distribution of information to the HRA Board of Commissioners; and WHEREAS, the Authority has determined that the provisions contained in the Policy as represented in Exhibit A, attached hereto and incorporated herein, are necessary and appropriate. NOW THEREFORE BE IT 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 December, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 28 of 98 EXHIBIT A BOARD MEETING POLICY It shall be the policy to provide the HRA Board of Commissioners with accurate and timely information regarding the activities of the HRA. The HRA will conduct its board meetings in accordance with its bylaws, as amended from time to time, and state law. BOARD MEETING PROCEDURES Board Reporting Package Information provided to the Board shall be part of the board reporting package. The information provided should be enough for the HRA Board of Commissioners to effectively govern the entity and monitor the implementation of policies. To that end, the following items may be provided as part of a Board reporting package: 1. Meeting Agenda (with items requiring Board approval). 2. Minutes from the prior Board meeting. 3. Entity-wide and Project/Program Financial Statements (for all periods since the last meeting). 4. Program Monitoring key performance indicators; dashboards; and other summary metrics, which may include financial information for Public Housing, Capital Fund Program and/or Housing Choice Vouchers involving occupancy, rent collection, work orders, inspections, monitoring reporting, HCV utilization. 5. Executive Director’s report (Notable Items Report). 6. Supporting documentation for any items that requires Board approval. 7. Other reports as requested by the HRA Board of Commissioners. 8. Other reports as necessary to meet the Policy Objectives. At minimum, the package shall include reports generated from the financial system, dashboard reports, and other monitoring reports. The board reporting package shall be delivered monthly to each board member within a reasonable amount of time prior to the scheduled board meeting and the board package shall also be available at the board meeting. The board reporting package may be delivered in an electronic or physical format. A copy of each board reporting package with a signed and dated copy of the minutes shall be filed and maintained by the HRA. 29 of 98 218-998-8730 @ OTTER TAIL COUNTY I HOUSING 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 HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _December 18, 2023__ BOARD MEETING DATE AGENDA ITEM #3H Administration ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 12/18/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 266 Adopting General Internal Controls PROPOSED REQUEST/JUSTIFICATION The proposed policy states that internal controls be established to mitigate threats of fraud and theft and to ensure proper administration of HRA Programs. The policy also requires that the HRA Board, management staff, and staff create a “control environment” that promotes “integrity and ethical values”. It further requires ongoing risk assessment, control activities, good communication, and monitoring. In general, the HRA, through the Joint Powers Agreement with Otter Tail County, is using the internal control processes and procedures implemented by the County Finance staff. In addition, the HRA staff has created procedures as they pertain to the administration of federal programs (as evidenced by the recent VMS Review) and conducts internal monitoring activities. Staff recommends that the Board adopt the attached resolution approving the General Internal Controls Policy. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/13/2023 ATTACHMENT LIST: Resolution No. 266 and Exhibit A FINANCIAL IMPLICATIONS: NA BUDGETED: YES NO FUNDING: COMMENTS 30 of 98 RESOLUTION NO. 266 RESOLUTION ADOPTING GENERAL INTERNAL CONTROLS POLICY WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) operates a variety of housing and redevelopment programs, including federal and state funded programs (the “Programs”); and WHEREAS, the Authority has determined it prudent to adopt a General Internal Controls Policy (the “Policy”), as represented in Exhibit A, to carry out the processes and procedures related to the operation of the Programs and the various initiatives of the Authority; and WHEREAS, the Authority has determined that the provisions contained in the Policy as represented in Exhibit A, attached hereto and incorporated herein, are necessary and appropriate. NOW THEREFORE BE IT 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 December, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 31 of 98 EXHIBIT A GENERAL INTERNAL CONTROLS POLICY The HRA will establish general internal controls that will be applied to all programs to: 1) mitigate the threat of theft, fraud, or misappropriations of company assets, and 2) to ensure the HRA administers its programs in a manner to obtain reasonable assurance that the goals and objectives of the HRA and programs are met in a cost-effective way. The internal controls will include procedures related to authorizations, approvals, reconciliations, and monitoring activities designed to safeguard all assets of the HRA. The HRA will ensure compliance with the “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). GENERAL INTERNAL CONTROLS PROCEDURES General Internal Control Program All staff will be involved in carrying out the processes and procedures related to the operations of the HRA. However, it is ultimately the responsibility of the Executive Director or designee of the Executive Director to make sure the HRA is operating as effectively and efficiently as possible. The Executive Director or designee of the Executive Director will be responsible for the design and implementation of the internal controls of the agency, and he/she is the one who will set the ethical tone of the HRA. The Executive Director or designee of the Executive Director is accountable to the HRA Board of Commissioners, who will provide governance and oversight to the HRA. An active and knowledgeable Board will foster and reinforce the positive control environment of the agency. The HRA may choose to have an internal audit function to assist in monitoring the control activities of the agency. The internal auditor will assess the effectiveness of controls and make recommendations to the Executive Director or designee of the Executive Director and Board of Directors. It is understood that: Internal control is a process and is not complete once controls have been established but is ongoing and is to be continually assessed in order to meet the goals and objectives of the agency. Internal control is affected by people. Internal control is not simply a collection of policies and procedures as personnel at every level should be informed on the policy and procedures that are ultimately approved and execute the policy and procedures. Internal control can be expected to provide only reasonable assurance, not absolute assurance, to management and the HRA Board of Commissioners 32 of 98 218-998-8730 @ OTTER TAIL COUNTY I HOUSING OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 '5) EOU/\1. HOUSING OPPORTUNITY @ ottertailcounty.gov Required COSO Internal Control-Integrated Framework A system of internal controls involves certain components as outlined by the COSO Internal Control- Integrated Framework. According to COSO, there are five (5) components of internal control: 1. Control Environment. The control environment is the foundation for all other components of internal control. The control environment sets the tone for the HRA and is the attitude taken by management on how business operations should be handled at the organization. There is an expectation of integrity and ethical values in the completion of the HRA’s business and mission, including how the HRA communicates and is viewed by the public, staff, their vendors, and the program participants. The expectation starts at the top and works its way down through the agency. If top management is not ethical in its decisions and the way they treat others, it is likely that all other components of the internal control framework will fail. To instill a proper control environment: The HRA Board of Commissioners and top management will implement a system of internal controls that will be periodically reviewed and updated as needed. The HRA Board of Commissioners and management will oversee the internal control system through a collection of reports. These reports can be used to evaluate the effectiveness of management and staff for key performance indicators such as leasing or the HRA/program’s financial position. The agency’s structure is designed to meet the key needs of each program within the funding levels. 2. Risk Assessment. This component requires the HRA to identify the risks that are relevant to each program. Example of risks are: theft of cash if the HRA accepts cash for payment of rent; the existences of fictitious landlords or inaccurate check amounts associated with HAP processing for the Housing Choice Voucher program; the creation of phony tenant files with fake landlords for the Housing Choice Voucher program; personal use of HRA vehicles or other assets; and timecards not signed by supervisors. Management will assess and document the risk associated with a respective area. The risk item identified through this process will be ranked by priority order. Risks shall be assessed not just in terms of financial and performance impact and probability, but also using subjective criteria such as health and safety impact, reputational impact, vulnerability, and speed of onset. 3. Control Activities. Once risks have been identified, control activities are the processes and procedures to mitigate the threat of those risks and to ensure the HRA directives are to be carried out in an effective and efficient manner. Examples of control activities include authorizations, approvals, reconciliations, reviews, analysis, segregation of duties, physical safeguards, and security settings for software. For most HRAs, these control activities are documented in the HRAs policy and procedures. After the risk assessment is completed, management will review the current applicable policy and procedures and modify them as necessary, to reduce the identified risk. If there is not a current policy or procedure that mitigates the risk, management and the HRA Board of Commissioners will create the necessary policy and procedure. The procedures for the policy should be documented to provide evidence that the internal control system is performing and functioning as intended. All applicable staff will be trained on the policy and procedures. 33 of 98 Hard copies or electronic copies of the policy and procedures will be made available to respective staff. The HRA will ensure that the various policy and procedures are current and are available to the public. 4. Information and Communication. Appropriate and relevant information needs to be communicated within and between departments and programs to confirm that all staff are working toward the same goals and objectives of the HRA. HRA’s will establish appropriate reporting to ensure that required parties are provided necessary data and information. This data and information will be timely and accurate. Information and communication can take the form of written documents, emails, electronic files, electronic data sets, and oral communication. 5. Monitoring. Assesses the effectiveness of the internal control policies and procedures. The internal controls should be reviewed from time to time to ensure that they work properly and are not obsolete. Where a process or procedure is no longer working effectively, the processes and procedures will need to be updated to reflect the current workflow or eliminated to reduce confusion. 34 of 98 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _December 18, 2023__ BOARD MEETING DATE AGENDA ITEM #3I Administration ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 12/18/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 267 Adopting Uncashed and Voiding of Checks Policy PROPOSED REQUEST/JUSTIFICATION The proposed policy contains the procedures for instances where checks are lost in the mail or for checks that may contain errors. In the case of uncashed checks, the policy requires year-end review of the bank reconciliation report and review of any outstanding checks that have been dormant and issued in the previous fiscal year. Finance staff will conduct research to determine if checks should be voided by the HRA. The HRA will follow the Minnesota Department of Commerce rules, guidelines and procedures for unclaimed property when reconciling for uncashed checks. The Executive Director or Housing Program Supervisor will then review the documentation and provide approval to void the checks. Staff recommends that the Board adopt the attached resolution approving the Uncashed and Voiding of Checks Policy. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/13/2023 ATTACHMENT LIST: Resolution No. 267 and Exhibit A FINANCIAL IMPLICATIONS: NA BUDGETED: YES NO FUNDING: COMMENTS 35 of 98 RESOLUTION NO. 267 RESOLUTION ADOPTING UNCASHED AND VOIDING OF CHECKS POLICY WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) operates a variety of housing and redevelopment programs, including federal and state funded programs (the “Programs”); and WHEREAS, the Authority has determined it prudent to adopt an Uncashed and Voiding of Check Policy (the “Policy”), as represented in Exhibit A, to carry out appropriate financial procedures regarding of the Authority; and WHEREAS, the Authority has determined that the provisions contained in the Policy as represented in Exhibit A, attached hereto and incorporated herein, are necessary and appropriate. NOW THEREFORE BE IT 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 December, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 36 of 98 EXHIBIT A UNCASHED AND VOIDING OF CHECKS POLICY Checks may need to be voided from time to time based on a variety of situations. The voiding of a check must be approved by the appropriate personnel and recorded in the general ledger in a timely manner to provide accurate financial statements. The proper program or project from which the funds were initially charged will be credited in the amount of the voided check. UNCASHED AND VOIDING OF CHECKS PROCEDURES There are a variety of situations in which the HRA may need to void checks. The most common reasons include the following: Errors printing the checks (wrong amount, wrong vendor, check put in printer wrong) Checks lost in the mail Outstanding checks after bank reconciliation at end of HRA’s fiscal year When it has been determined that a check needs to be voided, specific procedures should be followed based on the reason for voiding the check. Errors If an error occurred while printing the check or an error was identified prior to mailing the check to the vendor, the Assistance Finance Director (the “AFD”) or designee of the AFD should be notified immediately. Once the Assistance Finance Director or designee of the AFD has reviewed the check and agrees that it needs to be voided, the check should be altered so that it cannot be cashed by any banking institution. The word “VOID” should be written across the check. The voided original check should be retained for audit verification. Lost in the Mail If a vendor has contacted the HRA to state they did not receive the check in the mail, the Finance Department may contact the bank to authorize a stop payment on the check. The HRA will print and send the vendor another check within 60 days after requesting and receiving verification in the form of appropriate signed documentation. The HRA will notify the vendor that if the original check eventually arrives, that they should either destroy the check or return it to the HRA. Outstanding Checks After Bank Reconciliation At the end of the fiscal year, the bank reconciliation should be reviewed by the Finance Department and any outstanding checks that have been dormant and issued in the previous fiscal year will need to be researched to determine if they should be voided by the HRA. The HRA will follow the Minnesota Department of Commerce rules, guidelines and procedures for unclaimed property when reconciling for uncashed checks. 37 of 98 218-998-8730 @ OTTER TAIL COUNTY I HOUSING OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 '5) EOU/\1. HOUSING OPPORTUNITY @ ottertailcounty.gov The Executive Director or Housing Program Supervisor will review the documentation and provide approval to void the checks. The Finance Department will void the check in the HRA’s software system and update the bank reconciliation accordingly. 38 of 98 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 4. PUBLIC HEARING Regarding Sale of Property located at 117 NW 1st Avenue, Pelican Rapids 39 of 98 1ir EOU/\l. HOUSING OPPORTUNITY OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _December 18, 2023__ BOARD MEETING DATE AGENDA ITEM #4A Administration ORIGINATING DEPARTMENT/SERVICE Tanya Westra 12/18/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Conduct Public Hearing Regarding Sale of Property Located at 117 NW 1st Avenue, Pelican Rapids PROPOSED REQUEST/JUSTIFICATION The Authority took possession of this parcel via the tax forfeit process in October 2021 at the request of the City. The HRA authorized asbestos abatement and demolition of the single family home, which occurred in 2022. On October 26, 2023, staff received correspondence from Patti Thorson inquiring about the possibility of purchasing HRA owned property and has made an offer to purchase of $7,100. The amount offered is $700 higher than the current land value and is similar to the land values of the two vacant lots to the west of the subject parcel. Minnesota statue requires that a public hearing be conducted prior to the sale of HRA owned property. It is recommended that the Board open the hearing at 12 p.m. as advertised and take comment. The next item on the agenda after the public hearing is a resolution authorizing the sale subject to several conditions. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Barbara Dacy 12/18/2023 ATTACHMENT LIST: Offer Letter FINANCIAL IMPLICATIONS: $7,100 BUDGETED: YES X NO FUNDING: To be deposited in General Revolving COMMENTS 40 of 98 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 5. NEW BUSINESS 41 of 98 1ir EOU/\l. HOUSING OPPORTUNITY OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _December 18, 2023__ BOARD MEETING DATE AGENDA ITEM #5A Administration ORIGINATING DEPARTMENT/SERVICE Tanya Westra 12/18/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 268 Approving Sale of Property At 117 1st Avenue in Pelican Rapids PROPOSED REQUEST/JUSTIFICATION Staff received an offer of $7,100 to purchase the property located at 117 NW 1st Avenue in Pelican Rapids from a private party wishing to construct a home to be used as her primary residence. Staff recommends that the Board adopt Resolution No. 268 with the following conditions as noted in Exhibit A: Closing will be scheduled upon verification of the following: 1. That the Purchaser has financing in place to improve the property. 2. That Purchaser’s gross income does not exceed $111,700 for a household consisting of one or two people or $128,455 for a household consisting of three or more people. 3. City of Pelican Rapids approves the construction plans of a single-family home and garage. The Purchase Agreement will contain a repurchase provision. Closing Documents provide that should the purchaser not complete construction within 6 months from date of sale, that the HRA has the option to buy back the property in the amount of $7,100. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/13/2023 ATTACHMENT LIST: Resolution No. 268 and Exhibit A FINANCIAL IMPLICATIONS: $7,100 BUDGETED: YES X NO FUNDING: To be deposited in General Revolving COMMENTS 42 of 98 43 of 98 Tanya Westra From: Sent: To: Subject: pason09@yahoo.com Friday, November 10, 2023 2:46 PM Otter Tail County HRA Lot@ 117 1st Ave NW Pelican Rapids, _MN 56572 □-·· .. -_,.. _____ ----------------· -----------. -·· --... ------------------------.. You don't often get email from pason09@yahoo.com. learn why this is important ----------·--~----·-------·---__ , ______ __, ________ , --·----------------·------ Board of Directors Otter Tail Co HRA 500 Fir Ave W November 10, 2023 Fergus Fa Us, MN 56537 Tanya, ---·---.----, This letter serves to express interest in purchasing the below referenced property consisting of approximately 7500 square feet ofland, identified by Otter Tail County property data parcel #76-000-99-0131-000. Purchaser: Patti A. Thorson Seller: Otter Tail County HRA Use: USDA RD New Build Property Address: 117 1st Ave NW Pelican Rapids, MN 56572 Legal Description: Lot 12 BLK 6 Purchase Price: $7,100 1 RESOLUTION NO. 268 RESOLUTION APPROVING SALE OF PROPERTY AT 117 NW FIRST AVE IN PELICAN RAPIDS WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the "Authority”) was contacted by the City of Pelican Rapids in 2021 regarding a blighted, tax-forfeit property located at 117 NW 1st Avenue in Pelican Rapids (the “Property”); and WHEREAS, the Authority determined that acquisition of the Property and demolition of the unsafe, blighted structure were necessary to promote new housing opportunity; and WHEREAS, the Authority adopted Resolution No. 154 on April 15, 2021 and Resolution No. 161 on June 17, 2021 authorizing purchase of the property through the tax forfeit process; and WHEREAS, the Otter Tail County Board of Commissioners approved the sale of the Property via Resolution No. 2021 – 167 on October 26, 2021; and WHEREAS, the Authority took possession of the property October 26, 2021 via a Commissioner of Revenue Deed # 02237427; and WHEREAS, the Authority adopted Resolution No. 171 on October 21, 2021 authorizing the asbestos abatement and demotion of the structure at 117 NW 1st Avenue; and WHEREAS the Authority is empowered by Minnesota Statue 469.029 to dispose of property; and WHEREAS, the Authority has received an offer of $7,100 (the “Offer”) to purchase the property located at 117 NW 1st Avenue, Pelican Rapids; and WHEREAS, the Authority has determined that the Offer is $700 higher than the current tax value of the Property; and WHEREAS, the Authority has determined that the Offer is consistent with the tax value of neighboring vacant lots of the same size; and WHEREAS, the Authority has properly advertised for a public hearing to be conducted on December 18, 2023 at 12 p.m. THEREFORE, IT IS HEREBY RESOLVED: 1. The Board authorizes the Executive Director to execute a Purchase Agreement to expire six months from the date of execution that will contain a repurchase provision for the Property. 2. So long as conditions in Exhibit A are met, the Board authorizes sale of the Property in the amount of $7,100. 44 of 98 3. That the Board Chair and Secretary are empowered to execute any and all documents necessary to effectuate the sale and closing of the Property. 4. That in the absence of the Chair, the Vice Chair is also empowered to execute any and all documents necessary to effectuate the sale and closing of the Property. 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 December, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 45 of 98 EXHIBIT A Conditions on Sale of Property Located at 117 NW 1st Avenue Pelican Rapids, Minnesota Closing will be schedule upon the following: 1. That the Purchaser has financing in place to improve the property. 2. That Purchaser’s gross income does not exceed $111,700 for a household consisting of one or two people or $128,455 for a household consisting of three or more people. 3. City of Pelican Rapids approves the construction plans of a single-family home and garage; The Purchase Agreement will contain a repurchase provision. Closing Documents provide that should the purchaser not complete construction within 6 months from date of sale, that the HRA has the option to buy back the property in the amount of $7,100. 46 of 98 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION December 18, 2023 BOARD MEETING DATE AGENDA ITEM # 5B & C Public Housing ORIGINATING DEPARTMENT/SERVICE Tanya Westra 12/11/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 269 Award 2024 Public Housing Insurance Bid; Authorize Execution of Insurance Documents Resolution 270 Approving the Write Off of Outstanding Debts from Vacated Tenants PROPOSED REQUEST/JUSTIFICATION Resolution No. 269. The purpose of Resolution No. 269 is to approve the mutli-peril insurance bid received from State Farm Insurance. State Farm Insurance was the only respondent. Multi-peril coverages include public liability, fire and extended building coverage, and non-owned automobile liability. During review of the current policy, staff became concerned that the HRA is underinsured given the current cost of construction. Staff further evaluated what adequate coverage would look like based on square footage of each of the nine buildings using $275 per square foot as a construction cost (building breakdown is attached). The published RFP asked for coverage at 100% and 75% of estimated replacement values. The bid received was for $4,897,000 in building coverage with a supplemental $101,000 in coverage for detached garages. The deductible for this policy is $5,000 per occurrence. State Farm will not write a policy for this same coverage with a $2,500 deductible. Please note that State Farm has changed their wind and hail deductible to 1% of the building value with a maximum of $5,000 per occurrence. The annual premium is $26,073.13 which includes a discount as the HRA has purchased coverage from State Farm for several years. Another option would be to renew our current policy which offers $2,273,000 in blanket coverage with a $5,000 per occurrence deductible at an annual premium of $16,847.58 (an increase of $1,084.98). Although a there is a significant difference in the annual premium, staff recommends purchasing the policy which reflects the current estimated replacement value. The increase in annual premium was anticipated while developing the 2024 Public Housing Operating Budget. Resolution No. 270. The purpose of Resolution No. 270 is to authorize writing off certain balances as depicted in the attachment in the public housing program. These expenses are associated with repairing the damage to units that were vacated. Writing off these expenses does not relieve the required repayment by the tenant but instead reduces the amount of tenant receivables in the agency’s financial statement. This is a typical practice. The HRA, as many other agencies do, seek reimbursement of these expenses through the Revenue Recapture program administered by the state’s Department of Revenue. The program recaptures any income tax owed to the individual and is paid to the agency. Staff recommends the Board approve Resolution No. 270 and authorize the write off $201.58 in the Public Housing Program. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/12/2023 ATTACHMENT LIST: 1 – Statement of Location and Unit Information 2 - Proposed Insurance Policy for 2024 3 - Renewal Policy offered by State Farm FINANCIAL IMPLICATIONS: $ 26,073.13 BUDGETED: X YES NO FUNDING: Operating Funds FINANCIAL IMPLICATIONS: $ 201.58 BUDGETED: YES X NO FUNDING: Operating Funds COMMENTS 47 of 98 Otter Tail County Public Housing Statement of Locations and Unit Information BUILDING ADDRESSES TYPE OF BUILDING YEAR BUILT FINISHED SQUARE FEET # OF STORIES GARAGE REPLACEMENT VALUE Pelican Rapids, MN 56572 Duplex 1980 2400 2 Attached $660,000 Underwood, MN 56586 Duplex 1980 2400 2 Attached $660,000 Underwood, MN 56586 Single Family 1980 1728 2 Detached $475,200 Henning, MN 56551 Duplex 1980 2400 2 Attached $660,000 Henning, MN 56551 Single Family 1980 1728 2 Detached $475,200 Henning, MN 56551 Single Family 1980 1512 1 Detached $415,800 New York Mills, MN 56567 Duplex 1980 2400 2 Attached $660,000 New York Mills, MN 56567 Single Family 1980 1512 1 Detached $415,800 New York Mills, MN 56567 Single Family 1980 1728 2 Detached $475,200 TOTAL REPLACEMENT VALUE $4,897,200 48 of 98 49 of 98 STATE FARM INS. APARTMENT PACKAGE BID Prepared for: Ottertail County HRA Date of bid: 11-29-2023 Policy Term: 1-1-2024 thru 12-31-2024 Current State Farm Policy: 93-EB-M175-3 Prepared by: Mark Rodning, Agent Policy placement: State Farm Fire and Casualty Insurance Company Property Coverage: Buildings Blanket Coverage: Appurtenant Auxiliary Structures: Business Personal Property: Liability Coverage: Business Liability Each Occurrence $4,897,200 (Building Schedule Attached) $101,000 (Building Schedule Attached) $0 Medical Payment Each Occurrence/Person $1,000,000 $5,000 Other Coverages: See Attached Apartment Policy-Coverage Summary for Included Coverages (includes coverages, limits, possibility of increasing limits and deductibles) Deductible: $5000 per occurrence excluding wind or hail. Wind or Hail deductible: 1% deductible (see attached wind hail deductible endorsement CMP-4849) Total Annual Premium: $26,073.13 (monthly, quarterly, and semi-annual payment plans available at no extra cost) State Farm Insurance 408 W Lincoln Ave Fergus Falls MN 56537 218-736-5633 mark@markrodning.com Page 1 of2 50 of 98 STATE FARM INS. APARTMENT PACKAGE BID Ottertail Public Housing Location and Coverage Schedule Page Building #1 Building #1A Building#2 Building #2A Building#3 Building #4 206 Holden Ave Henning MN 56551 Detached garage 206 Holden Ave Henning MN 56551 111 Milne Ave Henning MN 56551 Detached garage 111 Milne Ave Henning MN 56551 504 & 506 Marshall Ave Henning MN 56551 104 & 106 Smith Ave New York Mills MN 56567 Building #5 210 Larson Ct New York Mills MN 56567 Building #SA Detached garage 210 Larson Ct New York Mills MN 56567 Building #6 104 Pleasant Ln New York Mills 56567 Building #6A Detached garage 104 Pleasant LN New York Mills MN 56567 Building #7 216 Foss St Underwood MN 56586 Building #7A Detached garage 216 Foss St Underwood MN 56586 Building #8 206 Foss St #1 & #2 Underwood MN 56586 Building #9 106 & 110 10th Ave SW Pelican Rapids MN 56572 Total Blanket Coverage Total Appurtenant/Auxiliary Structures Coverage Total Coverage Coverage $415,800 $20,200 $475,200 $20,200 $660,000 $660,000 $475,200 $20,200 $415,800 $20,200 $475,200 $20,200 $660,000 $660,000 $4,897,200 $101,000 $4,998,200 Page 2 of2 51 of 98 Loss Of Income And Extra Expense Limit Per * Actual Loss -12 Months No Ded Applies Occurrence Money Orders And Counterfeit Money 1,000 Newly Acquired Business Personal Property 100,000 (applies only if this policy provides Coverage B - Business Personal Property) Newly Acquired Or Constructed Buildings (applies 250,000 only if this policy provides Coverage A - Buildings) Ordinance Or Law -Equipment Coverage Included Outdoor Property * 5,000 Personal Effects (applies only to those premises 2,500 provided Coverage B -Business Personal Property) Personal Property Off Premises 15,000 Pollutant Clean Up And Removal 10,000 Preservation Of Property 30 Days Property Of Others (applies only to those premises * 2,500 provided Coverage B -Business Personal Property) Signs * 2,500 Tenant Move Back Expenses 15,000 Valuable Papers And Records On Premises * 10,000 Valuable Papers And Records Off Premises * 5,000 Water Damage, Other Liquids, Powder Or Molten Included Material Damage This document contains only a general description of coverages and is not a contract. Details of coverages or limits vary in some states and provinces. All coverages are subject to terms, provisions, exclusions, and conditions in the policy itself and in any endorsements. Page 2 of 2 1001349 2002 137150 202 11-13-2014 52 of 98 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CMP-4849 WINDSTORM OR HAIL DEDUCTIBLE This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following is added to SECTION 1-DEDUCTIBLES: CMP-4849 Page 1 of 1 a. A special Windstorm Or Hail deductible applies to accidental direct physical loss to Covered Property caused by windstorm or hail. b. We will pay only the amount of loss in excess of the amount determined by applying the Windstorm Or Hail deductible percentage (%) shown in the Declarations to the Limit Of Insurance applicable to the Covered Property that has sustained loss as shown in the Declarations. If coverage is written on a blanket basis, the amount we pay will be determined by applying the Windstorm Or Hail deductible percentage (%) shown in the Declarations to the risk amount shown in our records as of the most re- _cent Declarations applicable to the Covered-Property that has sustained-loss-. -------- c. The Windstorm Or Hail deductible is calculated separately for, and applies separately to: (1) Each covered building that sustains loss; (2) The Business Personal Property at each building at which there is loss to Business Personal Property. If there is damage to both a covered building and Business Personal Property in that building, sepa- rate deductibles apply to the covered building and to the Business Personal Property. We will not deduct less than the Basic Deductible shown in the Declarations under SECTION I - DEDUCTIBLES. CMP-4849 ©, Copyright, state Farm Mutual AulomobUe Insurance Company, 2011 Includes copyrighted material of Insurance Services Office, Inc., wilh its permission. 53 of 98.;nou:rarm STATE FARM FIRE AND CASUAL T Y COMPANY u ~ A STOCK COMPANY WITH HOME OFFICES IN BLOOMINGTON, ILLINOIS DECLARATIONS ~ ~-----------------~ eoBox 2915 Bloommgton IL 61702-2915 Policy Number 93-EB-M175-3 Named Insured Policy Period Effective Date Expiration Date 12 Months JAN 1 2024 JAN 1 2025 M-05-7090-FA19 F W 000527 3123 OTTER TAIL COUNTY HRA C/0 BARBARA DACY The polipy period begins c1nd ends at12:01 am standard time attlle premises location. 500 W FIR AVE FERGUS FALLS MN 56537 1,111111111,l,1,11•111•1•11111111111111111•111111111111•111111111 Apartment Policy Agent and Mailing Address MARK RODNING INS AGENCY INC 408 W LINCOLN AVE FERGUS FALLS MN 56537-2008 PHONE : (218) 736-5633 Automatic Renewal -If the policy period is shown as 12 months . this policy will be renewed automatically subject to the premiums. rules and forms in effect for each succeeding policy period. If this policy is terminated, we will give you and the Mortgagee/Lienholder written notice in compliance with the policy provisions or as required by law. Entity: NON PROFIT NOTICE: Information concerning changes in your policy language is included. Please call your agent if you have any questions. pc -1 "" To obtain a copy of your policy, please contact your State Farm Agent. OTTER TAIL COUNTY POLICY PREMIUM MN Fire Safety Schg Total Amount Discounts Applied: Renewal Year Years in Business Multiple Unit Prepared NOV 08 2023 CMP-4000 003663 290 I C: l ,U:: I 7 $ 16,750.00 $ 97.58 $ 16,847.58 Claim Record NOV ? 0 2023 HOUSING AND REDEVELOPMEtJT AUTHORITY © Copyright. Stete Farm Mutuel Automobile Insurance Company, 2008 Includes copyrighted mererial of Insurance Services Office, Inc .. with its perm1ss1on Continued on Reverse Side of Page Page 1 of 8 54 of 98 ' DECLARATIONS (CONTINUED) ' Apartment Policy for OTTER TAIL COUNTV'HRA Policy Number 93-EB·M175•3 . ... , . ' . ~ ·, ' • • •l, .: I '•' . ·-. ' ' ~· SECTION I· PROPERTY BLANKET -· V 1· I' I " Coverage A • Buildings • ' • > Coverage B • Business Personal Property ·l:Jmlt of lnsuraiice*' '' I $ 2,273,300 No Coverage Prepared NOV082023 CMP-4000 003663 Location Number Location of Described Premises ; . - ' 001 ' -- 002 " 003 ·004 005 006 007 008 •. : " 206 HOLDEN.AVE HENNING MN 56551-4027· 111 MILNE AVE··'. HENNING MN 56551-4305 504 MARSHALL AVE HENNING MN 56551-4005 104SMITHAVE . : "_) ··NEW YORK MILLS·MN· 56567-4506 210 LARSON CT NEW YORK MILLS MN 56567-4500 104 PLEASANT LN NEW YORK MllLS MN 56567-4100 216 FOSS ST N UNDERWOOD MN 56586-7110 206 FOSS STN UNDERWOOD MN 56586-7110 © Copyrigh~ State Farm Mutual Autoimbile lnsurnnce Company, 2008 liicludes coPY'righted mater 0 ial of lns~rance Servi'ces Office, Inc., with its permission. I ' • • . , Cqntinued on Next Page ' ',· . ' ·• t :., . , ' ' Page 2 of 8 55 of 98StateFarm , ,-• I';/ Ae DECLARATIONS (CONTINUED) ~ I Apartment Policy for OTTER TAIL COUNTY HRA Policy Number 93-EB-M175-3 Location Number 009 . ,, Location of Described Premises I 106-110 10TH AVE SW PELICAN RAPIDS MN 56572-4420 .. ,. '.' ... • ·_. _.;. :-:_'_ . - AUXILIARY· STRUCTURES ' '' Location Number Description -, . 001A Garage or Carport 002A Garage or Carport 005A Garage or Carport 006A Garage or Carport .l / 007A Garage or Carport . ' M 3663 LJ .J-. • As of the effective .date of this policy, the Limit of Insurance as shown includes any increa~e )ri_.th~_limit due to ini!'ation Coverage. ' '' . • . . . SECTION 1-INFLATION COVERAGE INDEX/ES} Inflation C,overage Index: SECTION I • DEDUCTIBLES Basic Deductible Prepared NOV 08 2023 CMP-4000 003664 290 227.1 $5,000 © Copyright, State Farm Mutual Automobile lflsurance Company, 20□8 'Includes copyrighted material oflnsi.ira~Ce Services ciffiC~. Inc., with its permission. -c'ontinued cin Reverse Side of Page Page 3 of B 56 of 98 DECLARATIO~!> (CQNTINUED) . . . . . .. . Apartment Policy for OTTER TAIL COUNTY HRA Policy Number 93-EB-M175-3 Special Deductibles: Wind/Hail Employee Dishonesty. Lock Replacement : 1% $250. , $100 Other deductibles may apply -refer to policy. Data Compromise Equipment Bre~kdown $1,000 $2,500 SECTION I -EXTENSIONS OF COVERAGE -LIMIT OF INSURANCE -EACH DESCRIBED PREMISES The coverages and corresponding limits shown below apply separately to each described premises shown in these Declarations, unless Indicated by "See Schedule." If a coverage does not have a corresponding limit shown below, but has "Included" indicated, please refer to that policy provision for an explanation of that coverage. COVERf'GE Collapse Damage To Non-Owred_Buildings__Fronr:rheft, Burglary Or l'loqbery Debris Removal Equipment Breakdown Fire Department Service Charge Fire Extinguisher Systems Rech8:rge .Expense Glass Expenses Newly Acquired Business Personal Property (applies only if this policy proyides Coverage B'-Business Personal Property) • • Newly Acquired Or Constructed Buildings (applies only if this policy provides Coverage A -Buildings) . . .. . .. Ordinance Or Law -Equipment Coverage Preservation Of Property Water Damage, Other Liquids, Powder Or Molten Material Damage Prepared NOV OB 2023 CMP-4000 003664 © Copyright, State Farm Mutual Automobile Insurance Company, 2008 lnclud8s copyrighied material of lnsurancE! Services Office, Inc., with its permission. .) . . .. . Continu.ed on Next Page LIMITOF ''INSURANCE' Included Coverage B Limit 25% of covered loss Included $5,000 $5,000 Included $100,000 ., $250,000 Included 30'Days Included Page 4 of 8 57 of 98:,raierarm Ae -; 'i • ~i ~ ., \ .1 _, -; : :· .H I DECLARATIONS (CONTINUED) ~Mi1 ~ Apartment Policy for OTTER TAIL COUNTY HRA Policy Number 93-EB-M175-3 . • ' -' . ,j ¾. • •• ' ' ' SECTION I·• EXTENSIONS OF COVERAGE· LIMIT OF INSURANCE· EACH COMPLEX • •• M 3663 u '. ', '.... . ~ ' • ,. . .-. - • , •• , , ·I , ,.. . , , •' • , , ,. ' . "." , , I The coverages and corresponding limits shown below apply separately;to each complex as described In the policy. ' ..... . •. . . ·"· . ' . ;:: "' COVERAGE Accou.nts Receivable On Premises Off Premises Arson Reward Forgery, Or Alteration Lock Replacement Money.Orders And Counterfeit Money Outdoor ·Property ' Personal Effects (applies only to those premises provided Coverage B -Business Personal Property) Personal Property Off Premises Pollutant Clean Up And Removal Property OfOthers (applies only to those premises provided Coverage B -Business Personal ,Property) Signs . ' I-::,• Tenant Move Back Expenses Valuable Papers And Records On Premises Off Premises ;· Prepared NOV 08 2023 CMP-4000 © Copyright State Farm Mutu~I Automobile Jri,;'rance Company, 2008 Includes copyrighted ~aterial of lnsu.rance Se~i~es Offi~e. Inc., with its permission. 003665 290 '· Conti~ued cin Reverse Side of Page ~ LIMIT OF INSURANCE '';, $50,000 $15,000 $5,000 $10,000 $5,000 : ; :$1';000 '$5:aoo $2,500 ,$15,000 $10,000 $2,500 ,, , , $2,l50D . ' ,, . ' - $15,000. $10,000 $5,000 Page 5 of B 58 of 98 IVI UVVU DECLARATIONS (CONTINUED) .. , ." , • •-' • , l ~ ! ',/ • i Apartment Policy for OTTER TAIL COUNTY HRA Polley Number 93-EB-M175-3 SECTION I· EXTENSIONS OF ~OVER~~E. • LIMIT OF !NSURANCE -P§R P,OLICY. The coverages and corresponding limits shown below are the most we will pay regardless of the number of described premises shown in these Declarations. • '· • • • · • ' • • • • • • • •• COVERAGE Data Compromise Legal And Forensic Information Technology Review Per Occurrence Employee Dishonesty Identity Restoration Other Expenses Case Management Services Per Occurrence Lost Wages And Supervision Expenses LIMITOF INSURANCE $5,000' $50,000 $2?,000 $1,000 12 months $35,000 $5,000 .. Loss Of Income And Extra Expense Actual Loss Sustained -12 Months SECTION II • LIABILITY COVERAGE Coverage L -Business Liability ~ ., -• r' Coverage M -Medical Expenses (Any One Person) Damage To Premises Rented To You AGGREGATE LIMITS Products/Completed Operations Aggregate Prepared r ': . ' NOV OB 2023 CMP-4000 ©Copyright.State Farm Mutual Automobile Insurance Company, 2008 • Includes copyrighted material ofJnsurarce Services" ·Offic·e, Inc., yvith its permission. 003665 Continued on Next Page • \ . . . LIMITOF INSURANCE '$1,000,000 $5,000. $3oo;ooci • 'LIMIT OF INSURANCE $2,000,000 Page 6 of 8 59 of 98stateFarm M 3663 A~ DECLARATIONS (CONTINUED) Apartment Policy for OTTER TAIL COUNTY HRA Policy Number 93-EB-M175-3 General Aggregate $2,000,000 I tll Each paid claim for Liability Coverage reduces the amount ol insurance we provide during the applicable . . . annual period. Please refer to.Section II -Liability in the Coverage Form and any attached endorsements. Your policy consists ol these Declarations, the su·sINESSOWNERS COVERAGE FORM shown below, and any other forms and .endorsements that apply, including those shown below as well as those issued subsequent to the issuance.ofthis.po/icy. • .. • , • ." • • , , • ' • '· , ', , '11'' FORMS AND ENDORSEMENTS CMP-4100 CMP-4223.2 CMP-4561.4 CMP-4849 FE-6999.3 CMP-4500 CMP-4807 CMP-4502 CMP-4503.1 CMP-4746.1 FE-3650 CMP-4506.2 CMP-4710 CMP-4990.1 CMP-4994 CMP-4860 FD-6007 Businessowneis Coverage Form • Amendato ry· Endorsement *Policy Endorsement *Windstorm or Hail Deductible *Terrorism Insurance Gov Notice Apartment Endorsement Lock Replacement Tenant Move Back Expenses Heating Air Cond Loss Reimburs Hired Auto Liability Actual Cash Value Endorsement Loss of Income & Extra Expense Employee Dishonesty Identity Restoration Data Compromise Al Design Person Org Inland Marine Attach Dec • New Form Attached SCHEDULE Of' ADDITIONAL INTERESTS Interest Type: Addi Insured-Section II Endorsement #: CMP4860 Loan Number: NIA OTTER TAIL COUNTY 520 W FIR AVE FERGUS FALLS MN 565371364 . , Prepared NOV082023 CMP-4000 © Copyright State Farm Mutu~'1 Automobill! lns'urence Company, 2008 • includes copyri{lhted'material of lnsllrance Services Office, Inc., with its permission. ' .. . ' , u 003666 290 Continued on Reverse Side of Page Page Toi 8 r 60 of 98 DECLARATIONS (CONTINUED). ' ;, ' ' ' Apartment Policy for OTTER TAIL COUNTY HRA Policy Number 93-EB-M175-3 ,, This policy is "is·sued by the ·stabfFarmi Fire-and Casualty Company. :Participating Policy· ' j ' , .l' ' ' l • ' ' . ': ' ' . J' You are entitled to participate in a distribution of the earnings of the company as determined by our Board of Directors in accordance with the Company's Articles of Incorporation, as amended. In Witness Whereof, the State Farm Fire and Casualty Company has caused this policy to be signed by its President and Secretary at Bloomington, Illinois. . • •-: .. : . . .• ,. : .• ... _--. ~m-~ --•• --·· -.. /f(~-J,--- ---- secretary ·President, , Prepared NOV082023 CMP-4000 003666 290 E '' © Copyright, State Farm Mutual Automobile Insurance Company, 2008 •·includes copyrighted material of ln°surance Servl_ces Office, inc., with its permissiOn. ' !, ·,. ',.,, Page 8 of 8 61 of 98:,rare ta rm STATE FARM FIRE AND CASUAL TY COMPANY U A STOCK COMPANY WITH HOME;OFFICES IN_BLOO~INGT:ON, ILLlf'/01S INLA,!'/D l)/IARINE ATTACHING DECLARATIONS Ae PoBox2915 Bloommgton IL 61702-2915 Policy Number 93-EB•M175-3 Named Insured Policy Period Effactiva Data Expiration Data M-05-7090-FA19 F W 12 Months JAN 1 2024 JAN 1 2025 OTTER TAIL COUNTY HRA C/0 BARBARA DACY "(he polipy period begins ijnd ends at12:01 am standard trme at1he premrseslocatlon. • • SUD W FIR AVE -FERGUS FALLS MN 56537-- '· I' ; ATTACHING INLAND MARINE Automatic Ranewal -If the policy pariod is shown as 12 months, this policy will be renewed automatically subject to the premiums, rules and forms in effect for each succeeding policy period. If this policy is terminated, we will give you and the Mortgagee/Lienholderwritten notice in compliance with the policy provisions or as required by law. Annual Policy Premium Included The above Premium Amount is included in the Policy Premium shown on the Declarations. Your policy consists of these Declarations, the INLAND MARINE CONDITIONS shown below, and any other forms and endorsements that apply, including those shown below as well as those issued subsequentto the issuance of this policy. Forms, Options, and Endorsements FE-8739 FE-8743.1 Inland Marine Conditions Inland Marine Computer Prop See Reverse for Schedule Page with Limits Prepared NOV 08 2023 FD-6007 003667 I,' '; J,: .t'tl , I•.,: © CoP\1/igh't,_ Stat~ Far'm Mlltu~I-Autom·o~ile l_n·;ur~Oce Company, 2008 Includes copyrighted material of lns·urance Services Office, Inc., with its permission. tl ',, 62 of 98 ATTACHING INLAND MARINE SCHEDULE PAGE ,. ·"'J. ATTACHING INLAND MARINE ENDORSEMENT NUMBER FE-8743.1 COVERAGE Inland Marine. Computeir Prop Loss of Income and Extra Expense $ $ LIMIT OF INSURANCE 10,000 10,000 DEDUCTIBLE AMOUNT $ 500 ,,,, r , •. ,, , '11 , _1, ',, '' I ! •. ANNUAL PREMIUM Included Included ----------OTHER LIMITS AND EXCLUSIONS MAY APPLY -REFER TO YOUR POLICY---------Prepared NOV OS 2023 FD-6007 003667 •l © Copyrigh~ State Farm Mutual Automobile ln5"ran,e Company, 2008 l~cludes copyrighted mate;ial'o! Insurance s'ervices Offill~, Inc., with its permission. 530-666 a.2 05-31-2011 lo113233c 63 of 98StateFarm A~ ii I . ' - 93-EB-M175-3 003668 IMPORTANT NOTICE Regarding Changes to Your Policy CMP-4223. 2C Page 1 of8 CMP-4223.2 AMENDATORY:ENDORSEMENT (Minnesota) is ai:Jded to your State Farm® policy and re- places CMP-4223.1 AMENDATORY ENDOR~EMl;NT (Minnesota).;·. , • Editorial char:iges hav_e_bE:)en•made to the following provisions: , • .. , . .,_ 1• ~ECIIOI\I I ,·CQI\IDITIONS,-1'.-1ortgageholders . "'· , ,. , ,·. :SECTION I AND.SECTION 11-COMMON POLICY CONDITIONS,' Cancellation 1: , "' • l ~. • , ,. j ' , •.--'." , , ' ' • , • , , ,', , 1, , ' , • • SECTION I AND SECTION 11-COMMON POLICY CONDITldNs; When We Do Not Renew The endorsement follows this''notice. Please read'the endorsement and pi'ace it with your policy. If you "have any questions;'please cohtactyour State Farm agent.' • • .,. DISCLAIMER: This notice only provides a general summary of'changes to ,Your State Farrnpolicy. • This notice'iS not a' ~tatement of contract This notice does not change, modify, or Invalidate the -provisions, terms, rx conditions as set forth In your State.Farm policy booklet the most recentfy Issued declarations, and any applicable endorsements. ' .• • ' ' •• . ••1 • . ·' ' 1 • ' . :I l~ ~ 'J ! .,. ' ' •.• '.,:• . ' \ {" I .,. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE RE.AD IT CAREFULLY. •. • AMENDATORY ENDORSEMENT·(Minnesota) ,. . · .,. '· ' • This endorsement modifies insu~nc.e provided.under.the following: , BUSINESSOWNERS COVERAGE FORM •. • • a • r l ~• • ' ' • ' • , • •' • , , . 1. SECTION I is amended as follows: a. The following is added to SECTION I'-COVERED CAUSE~ OFLOSS: We insure for all loss caused by fire or lightning. • ' • • •• ',., ,, :,: '.. ' . '. ' ' I I ., . • I ';1 b. Paragraph 1.a. Ordinance Or Law of SECTION 1-: EXCLUSIONS is replaced by the following: • )~ • • ' I , 1, :: a. Ordinance Or Law , ·.,·., • '-:· Except as provided in-paragraph e.Loss Payment under SECTION I, CONDITIONS: • •. •• •• • r -'l • • " • ,. • • (1) The enforcement of any ordinance or law: • . '(a) Regulating the construction, use or repair of any property; or., ,,!' (b) Requiring the tearing down of any property, including the cost of re.moving 'its debris. . ,, ,, ,1. . • ~·· ;, .r, (2) This exclusion, Ordinance Or Law, applies whether the loss results'from: • • • • . . . ; . .., -. ,· .. . (a) An ordinance or law that is enforced even if the property has not lieen damaged; or . , ;/ , • , -_ H,.;:, . -. . . . 1· ... , n :·: . · (b) The increased costs. incurred to comply with an ordinance or law in the course of construction; repair, • '.' renovation; remodeli~g or demolition of property or rei:noval'of its. debris,'following an accidental direct ·physical loss to that property: • • ' • ;,c ~·' • ' • 1' ·,,~ , .• ••·, ' ,. c. Paragraph 9. Increased Cost Of Construction under SECTION 1,-~TENSIO~~ 9F COVERAGE, is deleted. ; ., . ' ". '·' d. The following is added to Paragraph 1, of S~_CTION.I-:: pED.U~TIBLES: The Deductible will not apply to a total loss of a building. ,,_ ,©, Copyright State Fann Mutu~I Automobile'i~surance Company, 2022 lnc!Udes c'opyrighted material of Insurance Services Office,··Inc., witti its pei-mlssion. u 64 of 98uu.,.iuuu e. SECTION I -CONDITIONS is amended as follows: (1) Paragraph 1.c. is replaced by the following: c. Duties In The Event OfLoss ., ,I (1) You must see.that.the following are done in the event of l_oss.to Covered Property: CMP-4223.2C Page 2 of 8 (a) Notify the police if a law may have been broken: 'l (b) Give us prompt notice of the loss.-lnclude a description of the property involved.· (c) Take all reasonable steps lo protect the Coverea Property from further damage: and keep a record of your emergency and temporary repair expenses necessary to protect the Covered Property, for con- • sideralion in the settlement of the claim. This will not increase the Limits Of Insurance of SECTION I -PROPERTY.: . , : , • ,. · • However, we wi_ll not pay for any subsequ_ent loss resulting from a _cause of loss that is not a Covered Cause Of Loss. Also, if (el!sible, set the damaged proP.erty aside_ and i.n the best possible order for examination. (d) Al our request, give us complete inventories of the damaged and undamaged property .. lnclude quan- tities, costs, values ar.d amount of loss claimeq. (e) As often as we reasonably require: I. Permit us to inspect the property, Also, permit us lo take samples of damaged and undamaged property for inspection, testing and analysis; Ii. Provide us with records and documents reasonably related to the loss, or certified copies if the , ··originals-are losl,"and perm~ us to make copies: -: ,; • (I) Send us, within 60 days after our request, a signed, sworn proof of loss containing the.following infor- mation werequire!o investigate the claim: • • • • I. A description of how and when the loss or damage occurred; • ii. The value of the property, except in the case oi a lotal loss of an insur~d building; iii. The interest of the insured and all others in the property; and .• _ iv. Other insurance ~ich may cover the_ loss or damage. , . We will supply you with the necessary forms. (g) Cooperate with us in the investigation or setlle~ent ot'the claim .. , ~ • ' • • . ' • ' , •· ( , -. ) • ~ 1' (h) Resume all or part of your "operations" as quickly as possible. (i) Send lo us, within a reasonable lime after our request, the following: • i.' • Cha'nges in title or occupancy of the property during the term of the policy; and Ii. Specifications of damaged buildings and ·detailed repair estimates. (2) The requirement to notify us can be satisfied by notifying our agent, Notice can be by any means of com- munication. (3) After we inform an insured:, • ' (a) Of the right to counsel; and _ ; ,1 •·.' • • I • / ' _ , ' •, ,. ' (b) Thatan insured's answers may be used against the insured in later civil or criminal proceedings; . ' ' . . . . . ' we may exa~lne any insured,under oath, while n61 in the pr~ence ~f. a~y other insured and at-such limes as may be reasonably required, about any matter relating lo.this insurance or the claim. In the event of an . examination, an insured's ans~rs must be signed. •• • (2)°' Los~ Paymentis.amended as follows: • • . I . (a) Paragraph 1.e.(4)(a)iv. is replaced by the following: ©, Copyright, state Farm Mutual Automobile lnsuran9e <;:ompany, 2022 Includes copyrighted material of Insurance SeNices Office, lnc., With its pennission. ' -' ,-. ' ' •' 65 of 98J1a,c,--a,u, 93•EB•M175·3 UU3t>ti9 Ae CMP-4223.2C Page 3of 8 iv: If thi1 coverage is provided on'a replac~menl'cost'b~sis"we will pay the increased cost of replacing, re- • building, repairing or demolishing any building in accordance with the minimum code in force at the time of loss as required by state or local authorities, when the loss or damage is caused by a Covered Cause Of Loss. In-case of a partial ;loss to the covered property, we will pay only for the damaged portion of the property. In case of a constructive· total loss to the covered property, we will pay for both the damaged portion and the·undamaged portion of the property. Coverage for the increased cost to replace, rebuild, repair or demolish a building' accoraing to code does· not increase"the limit of liability applicable to that building.• (b) Paragraph 1.e.(7) is replaced by the following: (7) Provided you have complied with all the terms of this policy, we will pay for covered loss within five business days after we have received the proof of loss and (a) We have reached an.agreement with you; • '· • • • ·' • ' • ' (b) In the event we use an independent claims adjuster,-we have received the agreement and you have satisfied the conditions ofthe agreement, if any; or:· . , , . . , , -. (c) An appraisal award has been made. • . , , , ,. :-. (c) The following is added to Paragraph e.: We agree that, in the event of a total loss, the Limit ()f Insurance for a building -which is Covered Property represents its value. This does not apply to Builders Risk policies or to damaged property covered under a blanket limit of insurance. • • • • • ' ' , ·-• · • (3) Paragraph 2.b. Mortgageholders is amended as follows: , ; (a) Paragraph 2.b.(1) is replaced by the following: (1) The term "mortgageholder" includes trustees and contract for deed vendors. :. ' (b) Paragraph 2.b.(4) is replaced by the following: (4) If we deny your claim because of your acts or because you liave failed to comply with the"terms of this poli9y, the mortgageholder will still have the right to receive loss payment if the mortgageholder: . (a) Pays any premium due under the policy at our request if you have failed to do so; and (b) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to doso. ,, ·.t , , •. : , . . • All of the terms of this policy will then apply directly to the mortgageholder. • ' (c) Paragraphs 2.b.(6) and 2.b.(7) are replaced by-the following:•· •• (6) If we cancel this policy, we will provide notice to the mortgagehblder at least: (a) 10 days before the effective daie of canceli°atiori if we cancel for your nonpayment of premium; or (b) '30 days before the effective date 91 cancellation if we cancel for any other reas~n. . . . . ., (7) If we elect not to renew this policy,,we will provide notice to the mortgageholder at least 1 O days before the expiration dale of this policy. ,. ~ ) " . . ' ., , (d) The following·is added to 2.b.:· . , • " . , · • · , • We will notify the mortgageholder of changes to this policy that result in a s"ubstantial reduction of coverage to the mortgaged property. ··' , , 2. SECTION II -LIABILITY is amended as follows: • , • ' a. Paragraph 3. under Section II -Supplementary Payments' is replaced by the following: I •' • l-' • • ' '3: So long as the conditions in Paragraph 2.' above ·are met, attorneys' f~es incurred by us in the defense of that indemnttee, necessa.ry litigation expe~~s incurred by us and necessary lttigation expenses incurred by the indem- nitee at our request Will be paid as Supplementary Payments. • ' ' •• pur obligation .to defend an ins~red's iridemnilee and to p~y for alt~er.i fees ind .necessary litigation expenses as Su~plemenlliry Payniepts_ ends whe,n:: • ' . . . • • , 1 . • , _ ·©, CopyrighL Slate F~m\-'Mutual Automobile Insurance Company, 2022 Includes copyrighted material of Insurance Services Office, inc., with its permission. LJ 66 of 98 CMP-4223.2C Page 4 of 8 a. We have used up the applicable Limit Of Insurance in the payment of judgments or settlements; or ' . . ' .. ' b. The conditions.set forth above, or the terms of the agreement described in Paragraph 2.f. above are no longer met b.' Paragraph 2.b. under Conliactual Liability o(SECTION 11.-EXCLUSIONS is replaced by the following: b. A~sumed in a con~a~t or ~gree~ent that is an ,:insured contract', ~rovided the "bodily injury" or "properly damage" occurs subsequent to the execution ofthe contract or. agreement , . , , ·, , c. The following is added to Paragraph 3. Duties In The Event Of Occurrence, Offense, Claim Or Suit of SECTION II - GENERAL CONDITIONS: The requirement to notify us can be satisfied by notifying our agent Notice can be made by.any means of communica- tion. ' . _,. 3. SECTION I AND SECTION 11-COMMON POLICY CONDITIONS is amended as follows: , : ·. • a. , Paragraph 2. is replaced by the following: 2, Concealment, Misrepresentation Or Fraud This policy is void if you have or any insured has: a. Before a loss, willfully; or b. After a loss, willfully and with ·intent to defraud; -': •, ., concealed or misrepre~nted any material fact or circumstan~es C!lnC~rning: (1) This policy; (2) The Covered Properly; (3) Your interest in the 9overed Properly; or_ (4) A claim under this policy. b. Paragraph 3. is replaced by th~ f9llowing: 3. • Examination Of Your Books And Records l.'t We may examine and audit your books and records as they relate to this policy at ariy time during the policy period . a~d up to one year afterward,_ . c. Paragraph 8. is replaced by the following: 8. Premiums a. The first Named Insured shown in the Declarations:- (1) Is respo~sible for the payment of all premiums; and (2) Will .be the pa~ee for <!nY retu(n premium~ we pay. , ,. b. The premium shown in the Declarations \MIS computed based on rates in effect at the time the policy was issued. On each renewal, continuation, or anniversary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect • c. Unless otherwise provided by an alternative payment plan "in'effect with "State Farm Companies", you may continue this policy in force by paying a continuation premium for each successive one-year period. The pre- mium must be: ' . (1) Paid to us prior to the anniversary date; and (2) Determined in accordance with Paragraph b. above. , Our forms tllen_in,effectwill apply, , . d. Und,eclared exposures or change in your business opei:ation, acquisition, or use of prell]ises may occur during the policy' pericidJhat are not. shown in Ifie Declarations. If so, we may require an additional premium, That • premium will be determined in accordance with our ·rates and rules then in effect. • • 1' ; • ' " •. When you request changes to this policy, or, the information or factors used lo calculate the premium for this policy changes during the policy period, we may adjust the premium in accordance with the change during the policy period and you must pay any additional premiu'm due within the time we specify. . ©, Copyrighl State Farm Mutual Automobile Insurance Company, 2022 Includes copyrighted material of Insurance Services Office, Inc., with its permission. 1 • , l • ,. • .,. 67 of 98:srateFarm Ae. 93-EB-M175-3 003670 . , e. The premium for this policy may vary based upon: (1) The purchase of other insurance from the "State Farm Companies". CMP-4223.2C Page 5of 8 (2) • Ttie purchase of products or services from an organization that has entered irit6 an agreement or contract with the "State Farm Companies". The "Slate Farm Companies" do:nolwairanlthe merchantability, fitness, or quality of any product or service offered or provided by that organization; or • (3) An agreement, concerning the insurance provided by this policy,that the "l3late F:arm Companies" has with an organization in which you have a membership, or of which you are a subscriber, licensee, or franchisee. ' ~ 1 . • ' I ' • • L •• ' '' ,, • • • _, • f. Yourpurchaseoflh,1spo)1cymayallow:, , . . ., , _ .. , . (1) .. You lo purchase or.obtain certain_ coverages, coverage options, coverage deductibles, coverage limits, or • coverage terms on other products'from the "State Farm Companies", subject lo their applicable eligibility • "rules; or • -'· (2) The premium or price for other products or services purchased byyou,:includilig non-insurance products or . services, lo vary. Such other products or services must be provided by the "State Farm Companies" or by •• an organization that has entered into an agreement or contract with the "state Farm Companies". The "State Farm Companies" do not warrant the merchantability, fitness, or quality .of any product or service offered or provided by that organization. ' • •• • d. Paragraph 10., is replaced by the following:· 10. Transfer Of Rights Of Recovery Against Others To u·s a. Applicable lo SECTION I'-PROPERTY: If any person or organization to or for whom we make payment under this policy has rights to recover damages from another, those rights are transferred to us to the extent of our"payment. That person or organization must do everything necE?ssary to secure our rights and must do_ ~olhing a.lier loss to impair them. However, our rights do not apply again~t · , -, . . -. • , . . ._,: _. , •. -- (1) An.i~sured; or . ., , , • ,.. • '' ":(2) Any person·or organization insured under another policy which was issued by us and responds to the same loss;.. • • : . , .,, . : -.. . -. - • ' . . ; ' . . , ' , , • ' . ·provided the loss was not intentionally caused tiy such insureds. • '' , • -• . • I • ' I . , ' ' b. You may waive your rights against another party in writing: .. ' . . (1) Prior to a loss to your Covered Properly . . (2) After a loss to your Covered Properly only if, at time of loss, that party is one of the following: (a) .S,bhieone insured by ihis-_insurance, unless the los~ was cau-sed intentionally by such insured; . ' ' . \ ~ -. -. ; ,._. (b) ,A·business.firm:. . .. , • -, 1, , i. Owned or controlled by you; or .. ii. Thal owns or controls you; or (c)" Your tenant . . You may also accept the usual bills of lading or shipping receipts limiting the liability of carriers. This wilbnot restrict your.insurance.. • -. c. Applicableto SECTION II -LIABILITY: !' ·11 thei insure~-h~~ rlghts to recover ~I_I or parrcir'any payment we hav~ mad~ under this policy, those rights are tra_nsferreq to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" • or transfer thosifrights to us and help us enforce them: This condition does not apply'to M,edical Expenses Cov- erage. Our rights do not apply against a~y person or organiz~tioii insured under ihis of ari/other policy we issue with • respect.lo the same "occurrence" or offense, provided the "ciccurrenclf or offense was not intentionally caused by such insureds. ' • ' • · · : ' --• . . ©i Copyright state Fa;,ri'Mirtual Aut~mobile insurance Company, 2022 Includes copyrighted material of lnsuran6e SeNices Office, Inc., with its permission. lJ 68 of 98UUwlUIU e. The following are added: Cancellation CMP-4223.2C Page 6cl8 a. The first Named l11sured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. • •. , . , , 1, .• b. Cancellation Of Policies In Effect For: ' '' •• ,.. (1) ·Less Than 90 Days·' •• •• ' ,. r • . ' • ' . ' ./ ·. . ' • . . , If this policy has been in effect for less than 90 days and is not a renewal wi1h us, we may cancel this policy by providing to the first Named Insured notice of cancellation at least (a) 10 days before the effective date of cancellation if we cancel for nonpayment of premium; or (b) 30 days before the effective dale of cancellation if we cancel for any other reason. (2) 90 Days Or More " . (a) If this 'policy_has been in effect for 90 days cir more or is a renewal with us, we may cancel only for one or more of the following reasons: • • • • • • • ,, ' t ( ' ;> , , i. Nonpayment of premium; ii. Misrepresentation or fraud made by you or with your knowledge in obtaining the policy or in pursuing a claim under the policy; , . , , . . . • . , . ' . ' ' ' ' '. . iii. An act or omission by you that substantially increases or ch~nges the risk insured; iv. Refusal by you lo eliminate known condition~ that increase the potential for loss after notification by us that the con~ition must be rem_oved;; v. Sulislantial change in the risk assum·ed, except lo the extent that we should reasonably have foreseen the change or contemplated the risk in writing the contract; ' ' vi. Loss of reinsurance by us which provided coverage to us for a: significa'nl amount of the underlying risk .insured. Any notice of cancellation under this clause will advise the policyholder that he or she has 10 days from the date of receipt of the notice to appeal the cancellation to the commissioner of commerce and that the commissioner will render a decision as to whether the cancellation is justified because of the loss of reinsurance within 30 business days after receipt of the appeal; vii. A determination by the commissioner that the· contir\uaticin of the policy could place us in violation of 1he Minnesota insurance laws; or viii. Nonpayment of dues to an association or organization, other than an insurance association or organ- ization, where p_aymenl of dues is a prerequisite to obtaining or continuing such insurance. This provi- sion for cancellation for failure to pay dues shall not be applicable to persons Who are retired at 62 years of age or older or who are disabled according to Social Security;standards. (b) If we cancel, we will provide to the first Named Insured notice of cancellation al least i. 10 days before the effective dale of cancellation, if we cancel for nonpayment of premium. The can- cellation notice shall contain the information regarding the, amount of premium due and the due date, and shall state the effect of nonpayment by the due dale. Cancellation shall not be effective if payment of the amount due is made prior lo the effective dale of cancellation; or II. 60 days before the effective date of cancellation if we cancel for any other allowable reason; c. If this policy has been issued for a term longer than one year or for an indefinite.term, we may cancel only for the specific reasons set forth in Paragraph b.(2)(a) above. Notice of cancellation will be provided to the first Named Insured al least 60 days before the effectiye date of cancellation. • . • , d: Notice or'cancellalion .will state the reason for and the effective date 'or cancellation. The policy period will end on ~~' ' ' ~-· e. We will provide notice in accordance with Minnesota law. . , . ·: f.. If this policy is cancelled, we will send the first Named Insured any premium refund due. The refund will be pro rata. The cancellation will be effective even if we have not made or offered a refund. ©, Copyright, state Farm Mutual Automobile Insurance Company, 2022 • lnclud~ copyrighted material of Insurance Services Office, lnc.,·with its pem,ission. 69 of 98;narerarm 93-EB-M175.3 003671 A~ ~ g. If this policy insured more than one Named Insured:· ',' I (1) The first Named Insured may affect cancellation for the accourif of ~II insur~ds; and··· CMP-4223.2C Page 7 of 8 '· (2) Our noiice cif'cancellation to the first Named Insured is notice'to all ·insureds. Payment of unearned premium to the first Named Insured is for the account of all interests therein:· ' When, We Do Not Renew , . -' • • • • -• • .. a. lfwe decide not to renew or continue this policy, we will provide to the first Named Insured shown in the Declarations ·: • :notice of the nonrenewal, in accori:lance with Minnesota law, at least 60 days before the expiration date. g b. •. We need not provide this 'notice if you have·: ~~ ~i!i (1) Insured elsewhere; (2) Accepted replacement coverage; or (3) Agreed notto renew this policy. , , . J Renewal With Altered Terms If we offei lo renew this p·olicy al less favora_ble terms as to: •• ' a. Dollar amount of coverage or deductibles; or b. High~r rates or hi~her-;ating ~Ian; • ' ' .. ~-' • •: • : ' we will n~tify you of the new terms at least 30 days prior t~ the expiration· dale. •-,•· ·_, .. 4. THE FOLLOWING ADDITIONAL PROVISIONS ARE APPLICABLE ONLY IF RESIDENTIAL COMMUNITY ASSOCIATION POLICY APPEARS ON YOUR DECLARATIONS: • •• • • • • • • • a. SECTION I -CONDITIONS is amended as follows: (1) The following is added to 1.e. Loss Payment . You may elect not to repair or replace lost or:damaged property if: (a) The condominium is terminated and the Association votes not to repair or replace all or part of tt; (b) Repair or Replacement would be illegal under any state or local health or safely statute or ordinance; or (c) 80% of the unit-owners vote not to rebuild. This includes every unit-owner and first mortgage holder of a unit or assigned limited common element that will not be rebuilt. (2) Paragraphs 2.b.(2), 2.b.(6) and 2.b.(7) under Mortgageholders are replaced by the following: (2) If the condominium is terminated, we will pay for covered loss to buildings or structures to each mortgageholder shown in the Declarations in their order precedence, as interests may appear. In all other respects, we will_pay for loss to buildings or structures to you or the designated insurance trustee in accordance with Loss Payment of SECTION I -CONDITIONS. (6) If we cancel this policy, we will provide notice to the mortgageholder at least 30 days before the effective date of cancellation. (7) If we elect not to renew this policy, we will provide notice to the mortgageholder al least 30 days before the expiration date of this policy. b. SECTION I AND SECTION II -COMMON POLICY CONDITIONS is amended as follows: (1) Cancellation Condition above is amended as follows: (a) Paragraph b.(1) is replaced by the following: b. Cancellation Of Policies In Effect For: (1) Less Than 90 Days If this policy has been in effect for less than 90 days and is not a renewal with us, we may cancel this policy for any reason by providing notice of cancellation al least 60 days before the effective dale to: (a) The first Named Insured and any agent and (b) Each unit-owner and owner of a security interestto whom certificates of insurance were issued. ©, Copyright, State Farm Mutual Automobile Insurance Company, 2022 Includes copyrighted material of Insurance Services Office, Inc., with its permission. LJ 70 of 98 ' ' (b) Paragraph b.(2)(b) is replaced by the following: (2) 90 Days Or More IYI .;JUUV CMP-4223.2C Page,8018 • . • ' ;J (b), If we cancel, we will provide notice of cancellation at least 60 days before.the effective dale to: • ' ' j • •' ' • ' '· • i. The first Named Insured and any agent and ii. Each unit-owner and owner of a security interest to whom certificates ofinsurancewere issued. • If we cancel for nonpayment of premium, the cancellation notice shall contain the information regarding the , . •<amount of premium due and the due date, and shall state the effect of nonpayment by the due date. Can- cellation shall not be effective if payment of th11 amount due is made prior to the _effective date of cancellation. (c) Cancellation paragraph c. is deleted. (2) The following is added: Unit-Owner Acts Or Omissions ',.. . . ' ., No act or omission by any unit-owner or holder of an interest as security for an otiligation will void this policy or be a condition to recovery under this policy. But this does not apply to unit-owners or interest holders acting within the scope of their authority on behalf of the association. • 1) i 5. IF EMPLOYEE DISHONESTY IS PROVIDED BY YOUR POLICY, THE FOLLOWING ADDITIONAL PROVISION APPLIES: . . ' With respect to Employee Dishonesty, Paragraph d.(2) of Legal Action Against Us under.SECTION I -CONDITIONS is replaced by the following: •• • • • ·12r The action is broughtwithiii 2 years after the date ya'~'discover the loss.'. All other policy provisions apply. CMP-4223.2 ©. Copyright state Farm Mutual Auto~oblle ln~r~nce Compan/ 2022 Includes copyrighted materl~I of Insurance Se,vices Office, Inc., with its.permission. ' ' . . ,- • ' :.·· (CONTINUED) 71 of 98StateFann A~ 93-EB-M175•3 003672 'IMPORTANT NOTICE Regarding Changes to.Your Policy • The following ,ch'anges to your policy are effective with this·policy term: •• • -· • 1 ·' '<,, l .·:··n '_' -, •• , , ,, •••_;·. -t· ..• _ ,, J,.• CMP-45~1.4C Page 1 of5 • SECTION 11_-:;_Dl;FINITION~; Paragraph 18. Personal and.Advertising Injury: . ·,.: . o . ·.Infringement of another's ·patent, trademark, or trade secret 'is n~ ld~ge'/' withih the definition of · ·,-personal and advertising:injury. • • •. • . •. • .: , n •. • .~~CTIQN II:-; EX~~HSIQ~S: Paragraph 17. P~rsonal ~nd Advertis_irig ii;iJu~:'. ,' o· Damages.from infringement of another's patent, tra,demar_k,,or,trade secret continue to.be specifi- _..,, . . ·:cally excluded ·under this policy. . -' ·, ., ,, . ...., ' • ' ~ , ' \ ., ' • ' -- -i ., ; ' _-. ,, The_ endorsemenpollows t~is no~ic,e. Please read the endorsement and, place' it with your policy. If you • have any questi_ons;-Pli?ase_cqntE!ctyour State Farm· agent. ~-• • ·''" ,, ' -: J ' • -., ' ,, -;, • ' • ' ,-,~ ~;._ • • • ~ ' • • • •• ' '' ., ; '' • J • " .;; , ' • ' I I• .,. .; 1, ~ , DISCLAIMER: This nob'ce on(y PJT)Vides a general summary of changes to your State Ffilfm fiolfoy.' This hotice is not a Statement·ot contract This notice does n_ot ' r ' I • • •• J •o •! • • • • • ' ' .-'0. ••a ' V • ' ' • • • change, modify; or 'invalidate' the' provisions, term's, or conditions as set forth in your state Farm poNcy lJo<?klet th~ most recently issued declarations, and any, appll§able 'endorsements. • , ··, •• • ' ' • ,., " • :· ' 1 :,· •• • POLiCY ENDORSEMENT 6 1, • • • ' ,. "" " " I ''1 •' '. ' • ' '' , , • . '. ~ ~ ·'' ! , .,, .. "-Jh!s endors,e,ment modifie_s insurance provided under the following: ; ;' ! ' ' ' ~ •• ,. '' • .. ' ,, . BUSl~ESSOWNERS C(?VERA\3~ ~ORM 1'• " ... 1. -BUSINESSOWNERS COVERAGE FORM TABLE OF • , CONTENTS-is amended as follows: t ' • ' ~:..• ,. ' .• ' a. The title Eleclro~ic Data is ·c~anged lo Access Or .-1, Disclosure OfConfideritial·Or Personal Information And Data-related Uability. • • • b. · The' title Recording And Distribution Of Material or Information In Violation Of Law is changed to Re- cording And Distribution'Of Material. 2. ·Paragrciph 2.f. Dishonesty under SECTION I -EXCLU- SIONS is'replaced:byJlie following: • • • • l ·◄.t' ,, ~"'• • , ,• f. . Dishone~ty_ . -,_. •. '(1/ Dish_9n·e~\6(c'riminal acts by you, anyone else • .: ',;with an interes,t in the property, or any of your or • their.1/a~ners, ''.members", officers, "managers", I employees, directors, trustees, or authorized ' representatives'. wtiether acting alone or in col-, • lusion witti ea/:ti other or with any other party; or , (2)." 'theft· by. ariy p;rson to 'Mlom you entrust the ·' property for any, purpose, whether acting alone or Ln' collusipn with any other party. .,:..-.. 1 ,.,· < ( This exclusion applies whether or'nol an act occurs dur- , i~g your-normal hours ofoperation. • Ttiis·exclusion does not apply to acfs of destruction by your , employees; but theft by.your employees is not covered. , • . With respect lo accounts receivable and "valuable papers •, ! and records",'.this exclusion does not apply to carriers for ·-hire., :•.,; • , ' , ',. 3. SECTION I:'-.EXTENSIONS· OF COVERAGE is ,. amended as follows; • _. • ' • I '., • ,,·, ,, a: • Paragraph 4.a.(1) "imder CoUapse is replaced by the following: ' •• (1): Coll_ap~e \TI~~ns,~ri abrupt fali,ing down_ or cav- ing m of a building or any part of a building; b. Paragiapti 5. isreplai:ed by the following: , 'f, ' .• • ,. ; • • .. 5. Water Damage, Other Liquids, Powder Or ,.Molten Material Damage If loss caused bV cov~red water or other liquid, powder, or molteii material occurs, we will also pay the cosMo tear out and replace only that particular part of the covered building or struc- ture necessary to gain access lo the specific 1 ,. I , , (, , •.• I ' ©, Copyright, state Farm Mutual Automobile Insurance Company, 2021 ~ lri'CJudeS cop'yrighted m"ate~ial of lnsurarice Servi2eS ooce, lni::., with its permission. u 72 of 98 ' ... " uu..,u,,· point of that system or appliance from which the water or other substance escaped. We will not pay the cost to repair any defect that caused the loss; but we will pay the cost to re- ·, pair or replace damaged parts of fire extinguish- ing equipment if the damage: a. Results in discharge of any'subs_tance from an automatic fire protection system; or •• ' J , , • " b. Is directly caused by freezing. • . . .... The amount we pay under this Extension of Coverage will not increase the applicable . Limit of Insurance'. ' • ' ' • • ' c: : Paragraph 13. is replaced by the following; 1 ' • 13. Personal Property Off Premises <:' . ·, ,. • You may extend. tfiii in~uran~ provided by th~ ' coverage form to apply lo Covered Property, other than •money'' and "securities", "valuable papers and records", or accounts receivable, while.it is in the 'course of tr:ansit or at another premises. • The most we will pay for loss in any one occur- rence under this Extension Of Coverage is-the Limit Of Insurance for Personal Property Off Premises shown. in the· Declarations. The amount we pay under this Extension Of Coverage is an additional amount of insurance. If the Covered Property is located at another ,:,· " , • ·premises you own, lease, operate, or regularly use, the insurance provided under this exten- sion applies •only if tne• loss occurs within 90 -days after the property is first moved, The Oilier Insurance Condition• contained in , • • SECTION I AND SECTION II '-COMMON POLICY CONDITIONS does not apply to this Ext_ension Of· Cpverage., The in_surance pro- • vided under this E)\tension Of Coverage is pri-, mary _and does· not contribute with any other 1 • .. • insurance: • : • • ' • - d. The following is added to Paragraph 22,e. under .. • • Equipment Breakdowri:' ' •• Paragraph 5.b. under, Coverage B-Business Per- .. ,_. sonal Property is replaced by:· • ,, '. . . • ,i. . b. Be your responsibility to maintain or insure ac- cording lo. the terms of your lease -or rental • ,agreemen_t. . • • ' ' ' • /1 . e. • The following is added: CMP-4561. 4C Page 2 of5 Business Personal Property In Portable Storage Units ·, • • • • • ·-' ·, • You may.extend the irisurarice provided by this cover- age form to apply to Business Personal Property, . ,-, , 9ther, than,"money'', and "se~uri~es",_:'vaJuable pa- • pers and records", or accounts receivable, while tem- porarily stored in a portable storage unit (including a detached trailer) locate_d .within 100 feet of the de- s·cribed premises. The most we will pay for loss un- • ,. der!his Extension Oi Coverage is $10,000. The amount we pay,under this Extension Of Cover- age will not ,increase the applicable Limit Of Insur- ance. . . , . , • , ,·I' . • • '. '' '. Coverage will ena 90 days after Business Personal ,, Property has been placed in the storage unit. Cov- . erage-does nol·apply•if the,storage unit itself has . • been in use at the qescribed premises for more than ' 90"consecutive days,· even· if the Business Personal • · ·'Property has beeri•stbred there for 90 cir fewer days at the time of loss. 4. SECTION II -LIABILITY is amended as follows: ;, • , , , • Y·, ·, 1 • , a. Section II -Exclusions is amended as follows: . ' . ' ' (1) The following is added to Paragraph 3. Liquor Liability: • ' .. This exclusion applies even if the claims .allege negligence or other wrongdoing in the.supervi- sion, hiring, employment, _training, or n:ionitoring of others by ari' ins·ured, or providing" or failing to provide transportation with ·respect to any per- son that may be under the influence df alcohol if the. "occurrence" which caused the "bodily in- . jury" or "property damage",involved that which is , _.. ,descri_bed in l;'aragraph 3.a._ (2) Paragrap_h il.f.-under Aircraft, Au'to Or Water- craft is ~placed by the following: f. "Bqtjily injUry'' or ,"property dal)lage" arising out of: ., . . .. ·, • (1) The operation,of· machinery or equjl- . ment that is attached to, or P.art of, a Jarid vehicle, that would quality under the definition of "mobile equipmenf' if ii were not subject to a 'compulsory or fi- .. nancial .re~poDsibility law or other mo- , , tor .. vehicle insurance or motor vehicle . ' registration law .where it is licensed or • . P\in,?ipaUy ga~ged; .. (2f}h_e opera\ion_ of any of the following machinery or equipment: •• (a) Cherrypi~k~rs and.similar devices mounted· on aufomobile or truck -~ ·~, ' ChasSis and used to raise or lower -: ' ' ,. workers; and ©, Copyright, state Farm ·Mutual Automobile Insurance Company, 2021 !nclu~es copyrighted ~at~.ric(Clf lnSUranc~ ~e~i,ce~ ·Office,_ Inc.; with i!s p~rmission. 73 of 98~unc.--a,11, 93•EB-M175•3 003673 Ae U-;;W m· ;:: <Ii ' ,. .(b) 'Air compressors, pumps, and gen: erators, including spraying, weld- ing, building cleaning, geophysical exploration, lighting, and well ser- vicing equipmen~ or (3) The operation of your business from a land vehicle: . (a) While it is parked and functioning; • other than "loading and unload-· ing"; as a premises for your busi- ness operations; and (b) Thatwould,qualify under the defini-' lion of 'mobile equipmenf'if ii were not subject to a compulsory or fi- . ; nancial responsibility law or other • • • ·motor vehicle insurance or motor vehicle "registration law where it is lice_nsed or principally garaged. (3) Paragraphs 17.b. and 17.c. under Personal And Advertising Injury are replaced by the foJ: lowing: • • b. Arising out of oral or written publication of • material, in any manner, if done by or at the • direction of the insured with knowledge of its falsity; c. Arising out of oral or written publication of material, in any manner, whose first publi- cation look place before the beginning of the policy period; (4) The Jasi paragraph of 17.h. under Personal And Advertising lnjury'is replaced by the fol- lowing: · • • _. , • -, Fo"r the'purposei of this exclusion, the placing . • .of frames, borders· or links, or advertising, for , • , you or others ~nywhere on the Internet, is not by . : • itself, considered the business of advertising, broadcasting, publishing or telecasting; • (5) '.Paragraphs ·1s. Electronic Data and 19. Re- cording And Distribution Of Material In Vio- lation Of Law,are replaced by the following: , . 18. Access Or Disclosure Of Confidential Or Personal Information And Data-related Liability • - a. Damages. arising out of any access lo ' •.' • ·, or disclosure of ariy person's or organ- • ization's confidential or personal infor, · • malion, · including '· patents, trade sec/els; processing methods, cus- tomer lists, financial information, credit card information, health information, or. - r ·,· ,· ' ' ' ', ,. '.' ~ny 9ther type mation; or CMP-4561.4C Page 3 of5 of nonpublic infer- b. .Damages arising out ofthe loss of, loss . of use of, damage to, corruption of, in- ability lo access, or inability lo manipu- late electronic data: •' This exclusion applies even if damages are claimed' for notification costs, cred~ monitor- ing exp~nses,.forensic expenses, public rela- tions expenses, or any other loss, cost or ' expense incurred by you or others arising out of that which is described in Paragraph a or b.above. As used in·lhis exclusion, electronic data means inforination, facts, or computer pro- • grams stored as or on, created or used on, , • • or transmitted lo or from computer software (including systems and applications soft- ware), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices, or any other repositories of computer soft- ware which are used with electronically con- , trolled equipment The term computer programs; referred to in the foregoing de- scription of electronic data, means a set of 'related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, , _store, retrieve, or .send data 19. Recording and Distribution of Material Damages arising' directly or indirectly out of any communication, by or on behalf of any insured, that violates or is alleged to violate: a. The Telephone Consumer Protection Act (TCPA), CAN-SPAM Act of 2003, Fair Credit Reporting Act (FCRA), or Fair and Accurate Credit Transaction Act (FACTA); including any regulations and any amendment of or addition to ~uch ~atutes; b. Any federal, slate or local law, statute, ordinance, or regulation, in addition to Paragraph a. above, that addresses, • prohibits .or·limits the printing, dissem~ nation; disposal, collecting, recording, se~ding, transmitting, communicating, or distribution of material or information; or c. Any other federal, state or local law, statute, ordinance, or regulation that may provide a basis for a separate ©, Capyrigh~ state Farm Mutual"Automobile lnsuranc!' Campany, 2021 Includes copyrighted material Of Insurance services Office, Inc., with its permission. L.J 74 of 98 . . claim or cause of action arising out of. any communication referenced in Par- agraphs a. orb. above. b. Paragraph 1.d.(2) under Coverage M-Medical Ex- penses of SECTION II -MEDICAL EXPENSES is replaced by the follo~ng: (2) Executes aut)lorization to allow us to obtain cop- ies of .medical bills, medical records, and any other information we deem necessary to sub- stantiate the claim. • Such authorizatiqns must not • (a) Restrict us-from performing our business functions in:. . i. Obtaining records, bills, information, and data; or • ·' l' ' • ii. Using or retaining records, bills, infer-i • mation, and data collected or received by ~s;· (b) Require us to violate federal or state laws . or regulations; -(c) Prevent us from fulfilling our data reporting and data retention obligations to insurance . regulators; or (d) Prevent us"" from disclosing claim infor- mation and"data:. L To enable performance ofour business function~; ii, To meet our reporting obligations to in- surance regulators; iii, To meet our reporting obligations to in- surance data consolidators; and iv. As olherwise permitted by law. If the holder of the information refuses to provide ~ to us despite the authorization, then at our.request the person making claini or his or herlegal representative must obtain the information and prompffy provide it to us; and c. SECTION 11-WHO'ls AN INSURED is amended asfollows: . • (1) Paragraph 1 :c. c!oes not apply. (2) Paragraphs 2.b.(1) and (4) are replaced by the . following: (1)· "Employees" ~h respect lo "bodily injury" to: (a) Any co-"employee" arising out of and in the course of the co-"employee's" em- CMP-4561.4C Page 4 of5 ployment or while performing duties re- lated to the conduct of your business; or (b) The spouse, child, parent, brother, or sister of that co-"employee" as a con- _sequence of,Paragraph (a) above; ; r • ;I ' I (4) The :owner of a '"non-owned auto" or any . agent of or any person or entity employed • _by such owner. d. Paragraph 2.b. under Financial Responsibility . Laws of SECTION II -GENERAL CONDI• TIONS does not apply. e. SECTION 11-DEFINITIONS is amended as fol- lows: • ' (1) Paragraph 2. is replaced by the following: . ' '; . · 2. '1Aulo" means: a. A land motor vehicle, trailer, or semitrailer designed for travel on public roads, including any at- tached • machinery or equipment, or b. Any other land vehicle that is sub- ject to a compulsory or financial responsibility law or other motor vehicle insurance or motor vehicle • registration law where ii is li- cen~ed pr principally garaged. However, "auto" does not include "mo- bile ~quipmenl". .(2) The following is added fo Paragraph 15. "mobile equipment": • However, "mobile equipment" does not in- clude land vehicles that are subject to a compulsory qr financial responsibility law or other motor vehicle insurance or motor ve- hicle registration where they are licensed or • principally-garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law or motor vehicle' registration law are consid- ered·"autos". • 5. ' The following is added to SECTION I AND SECTION II - • COMMON POLICY CONDITIONS: Our Rights Regarding Claim Information a. We will collect, receive, obtain, use, and retain all the items described in Paragraph b.(1) below and use and retain the information described in Paragraph • • b.(3)(b) below, in accordance with applicable federal and state laws and regulations and consistent with the performance of our business functions . ©, Copyright State Farm Mutual Automobile Insurance Company, 2021 Inell.ides copyrighted material of Insurance Services Office, Inc., with its permission. 1 o t ·-, ~ 75 of 98 ~ I 93-EB-M175•3 003674 b. Subject to Paragraph a. above, we will not be re- stricted in or prohibited from: (1) Collecting, receiving, or obtaining records, re- ceipts, invoices;, medical bills; medical reccrds: wage infamation, salary informa~on, emP,!oyment information, data, and any other information; (2) Using any of the items described in Paragraph b.(1) above; or·: • ·,·, •• ,' , • " (3)' Retainin : • .,_. , • .,,' • j '_'' '1'. •,• • : ' O g • < • : • ' 'L•I ' i [ (a) Any of the items in Paragraph b.(1) above; or (b) CAny other in(ormation we have in 9ur pos-. , ' ' . se~sion a~ a (esult of our. processing, han- • dling,' or • otherwise resolving claims submitted under this policy. c. We:may disclos~ ~ny of the iiems in Paragraph b.(1). 1 • above and any· of the information described in Para-· graph b.(3)(b) above:; • '' • • ,· '. ; CMP-4561.4 CMP-4561.4C .. • . Page5of5 •·.I,'. ' • , ._ ·, : ' (1) To enable performance of our business func- tions;· .. • •. (2) To meet our reporting obligations to _insurance • "regulators; • ' ·' ' • ' • ,. • ,, • ' ••,;.•• ' ·1 • , •• (3) J"o (lieet 9ur reporting obligations to insurance 'data consoliaators; • • • ' ,. . (4) To meet 9th~ obligations_r~quired by law; and • : • -(5) As ot~erwisepermitted by law; d. Our rights under Paragraphs a.,.'b., and C. above sh_all not be imp~ired by any: ;(1) Authorization relat_ed to any claim submitted un- ., ' der this policy; .or .. • (2). Act or omission of an insured or a legal repre- ; • • sentative acting on an insured's behalf. All 'other policy provisions· apply, ,, : ,; '.l ©, Copyright, State Farm 'Mutual Automobile Insurance Company, .2021 Includes copyrighted· material of Insurance services Office, Inc., with its perniiSsion . . , J ,. I '· ., ''. ' ·, j. ., ' ·,. • '', r u 76 of 98vv-1..,1.r1111 1, ~-v IMPORTANT NOTICE . . Regarding Changes to.Your Policy ' ~ ' . ' ~ \" ' ~ , CMP-4849 Windstorm Or Hail Deductible is added to your State Farm® policy. The foll_owing changes to y~ui policy are effective with. thi~ poli_cy'term: • • SECTION I -DEDUCTIBLES •• 1v1 voo~ , CMP-4849C Page 1 rJ 1 a A special Windstorm Or Hail deductible applies to accidental direct physical loss to Covered 'Property caused by windstorm or hail. The Windstorm Or Hail deductible is a percentage (%) of the Limit Of Insurance applicable to the Covered Property that has sustained loss. This deductible amount may be greater than the Basic Deductible. The Basic Deductible still"applies to all other property damage :losses. • a The Windstorm Or Hail deductible is calculated separate)y for; and applies separately to, each covered building-that sustains loss and the Business Personal Property at each building at which there is loss to Business Personal Property. ' • '· • • •• . : • o 0 1f there is dama~e to both a·covered building and Business PersonalProperty in that building, separate deductibles apply to the covered building arid fo the Business Personal Property. ' ' ' ' : o However, after sue~ calcula_tions, we will not deduct less than the BasicDeductible. See the endorsement for specific provisions. The endorsement follows this notice. Please read the endorsement and place it with your policy. If you have any questions, please contact your State Farm agent. DISCLAIMER: This nob only provides a general summary of changes to your State Farm poUcy. This notice Is not a statement of contract This notice does not change, m:xllfy, or tnvalidata the provisions, terms, or condi~'ons as set forth in your State Farm po/Icy bookfet the roost recentty Issued declarations, and any applicable endorsermn!s. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CMP-4849 WINDSTORM OR HAIL DEDUCTIBLE This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following is added to SECTION I -DEDUCTIBLES: a. A special Windstorm Or Hail deductible applies to accidental direct physical loss to Covered Property caused by windstorm or hail. b. We will pay only the amount of loss in excess of the amount determined by applying the Windstorm Or Hail deductible percentage (%) shown in the Declarations to the Limit Of Insurance applicable to the Covered Property that has sustained loss as shown in the Declarations. If coverage is written on a blanket basis, the amount we pay will be determined by applying the Windstorm Or Hail deducbble percentage (%) shown in the Declarations to the risk amount shown in our records as of the most recent Declarations applicable to the Covered Property that has sustained loss. c. The Windstorm Or Hail deductible is calculated separately for, and applies separately to: (1) Each covered building thatsustains loss; (2) The Business Personal Property at each building al which there is loss lo Business Personal Property. If there is damage to both a covered building and Business Personal Property in that building, separate deductibles apply to the covered building and to the Business Personal Property. We will not deduct less than the Basic Deductible shown in the Declarations under SECTION I -DEDUCTIBLES. CMP-4849 ©, Copyright state Farm Mutual Automobile Insurance Company, 2011 Includes copyrighted material of Insurance Services Office, Inc., with its permission. (CONTINUED) 77 of 98.:nau:rar111 Ae ii 93-EB-M175-3 003675 FE-6999.3 Page 1 of1 In accordance with the Terrorism Risk Insurance Act of 2002 as amended and extended by the Terrorism Risk Insurance Program Reauthorization Act of 2019, this disclosure is part of your policy. • POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE Coverage for acts of terrorism is not excluded from your policy. However your policy does contain other exclusions which may be applicable, such as an exclusion for nuclear hazard. You are hereby notified that the Terrorism Risk Insurance Act as amended in 2019, defines an act of terrorism in Section 102(1) of the Act: The term "act of terrorism" means any act that is certified by the Secre!aJy of the T reasury--in consultation with the Secre- !aJy of Homeland Security, and the Attorney General of the Untted States-to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the Untted States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been commit- ted by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United.States Government by coer- cion. Under this policy, any covered losses resulting from certified acts of terrorism may be partially reimbursed by the United States Government under a formula established by the Terrorism Risk Insurance Act, as amended. Under the formula, the U ntted States Government generally reimburses 80% beginning on January 1, FE-6999.3 2020 of covered terrorism losses exceeding the statutorily estab- lished deductible paid by the insurance company providing the coverage. The Terrorism Risk Insurance Act as amended, con- tains a $100 billion cap that limits U.S. Government reimburse- ment as well as insurers' liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $100 billion in any one calendar year. If the aggregate insured losses for all insurers exceed $100 billion, your coverage may be re- duced. There is no separate premium charged to cover insured losses caused by terrorism. Your insurance policy establishes the coverage that exists for insured losses. This notice does not expand coverage beyond that described in your policy. THIS IS YOUR NOTIFICATION THAT UNDER THE TERROR- ISM RISK INSURANCE ACT, AS AMENDED, ANY LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM UN- DER YOUR POLICY MAY BE PARTIALLY RElMBURSED BY THE UNITED STATES GOVERNMENT AND MAY BE SUB- JECT TO A $100 BILLION CAP THAT MAY REDUCE YOUR COVERAGE. ©, Copyright, state Farm Mutual Automobile Insurance Company, 2020 u 78 of 98:,raretarm Ae I ~ ;:: "' 93-EB-M175-3 003676 553-4442 One login, access.to all your accounts Follow these easy steps: Take care of business Need help? • Log in to statefarm.com/onelogin • Payabill Use your smartphone to scan this using your personal ID and • Access accounts through the QR code for detailed instructions. password State Fanm• mobile app ~ lil:li,1·· ;:~ • To find your business or organizational account, select • Get policy documents or a ~ Certificate of Insurance (COi) .. , "Switch account" under your name . . • Contact your agent [!], ... Don't see "Switch accountn? ~ .... Con tact your agent. 553-4442 A State Farm· 553-2795MN IMPORTANT INFORMATION 0ire Safety Surcharge .Minnesota law requires insurers to assess a premium surcharge on homeowners and commercial insurance policies that provide fire and non-liability insurance protection. Policies that are surcharged will display"MN Fire Safety Schg" on the Balance Due Notice or Declarations Page along with the surcl1arge amount. 553-2795 MN (C) (10107) LJ 79 of 98::.raretarm A STATE FARM FIRE AND CASUALTY COMPANY Po Box 2915 • Bloomington IL 61702-2915 000527 3123 -OTTER TAIL COUNTY HRA C/0 BARBARA DACY 500 W FIR AVE M-05-7090-FA 19 FERGUS FALLS MN 56537 Location: Important Message(s) Agent MARK RODNING INS AGENCY INC Telephone (218) 736-5633 MOVING? PLEASE SEE YOUR STATE FARM AGENT. 5tateFarm A . INSURED OTTER TAIL COUNTY HRA POLICY NUMBER 93-EB-M175-3 (o1f3092a) 0081 M 3663 Prepared: NOV 08 2023 90 I w CALAl'ivC UUC NU I lvC LJ POLICY NUMBER Apartment Policy 93-EB-M175-3 DATE DUE PLEASE PAY THIS AMOUNT FL ____________ _ _ JAN 1 2024 $16,847.58 Full payment by Date Due continues this policy to JAN 1 2025 PREMIUM MN FIRE SAFETY SCHG AMOUNT DUE $ $ $ 16,750.00 97.58 16,847.58 I Pieasefr"'-dlOaft-e J M-7090-F A 19 +, 17 2347 3222 See reverse for important information. Please keep this part for your record. Prepared NOV 08 2023 PLEASE RETURN THIS PART WITH YOUR CHECK MADE PAYABLE TO STATE FARM DATE DUE APARTMENT JAN 1 2024 PLEASE PAY THIS AMOUNT $16,847.58 0509402154 State Farm Insurance Companies P.O. Box 680001 Dallas, TX 75368-0001 11111111111111111111111111111111111I111111111111111111111II 111111 FIRE BAL DUE $16,847.58 0215 900404601684758 193658562175301505> 80 of 9893-EB•M175-3 -0081 M 3663 . ' r ' '' ' . When you provide a check as payment, ·you authorize us eitherto use information from your check to make ,i. one-lime electronic fund'transfer from your account or to process .the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn· from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution. 02-08-2007 (o113096a) For Office U$e Only □ 01 105a ,. RESOLUTION NO. 269 RESOLUTION AUTHORIZING AWARDING OF MULTI-PERIL INSURANCE BID FOR PUBLIC HOUSING PROGRAM WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the "Authority") administers Department of Housing and Urban Development ("HUD") programs including Public Housing; and WHEREAS, the Authority issued a request for sealed bids for multi-peril insurance coverage for the scattered site public housing program on November 8, 2023; and WHEREAS, one bid was received prior to the deadline. THEREFORE, IT IS HEREBY RESOLVED: 1. That the bid award shall be made to State Farm with blanket coverage in the amount of $____________________. 2. That the Executive Director is hereby authorized to execute any documents needed to effectuate the insurance coverage. 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 December, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 81 of 98 RESOLUTION NO. 270 RESOLUTION AUTHORIZING WRITE OFF OF CERTAIN PUBLIC HOUSING EXPENSES WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) administers the Department of Housing and Urban Development (“HUD”) programs including the Public Housing Program; and WHEREAS, the tenant account receivable balance at the end of the fiscal year is a scoring criteria to determine future HUD operating funds; and WHEREAS, it is common practice for Public Housing Authorities to “write off” outstanding balances from former tenants in order to keep the tenant account receivable balance as low as possible at the end of each fiscal year; and WHEREAS, during the 2023 Fiscal Year, $201.58 is outstanding for rent, utilities and cost to repair units upon vacating; and WHEREAS, writing off this balance does not relieve the tenant’s responsibility to pay this debt; and WHEREAS, the Otter Tail County HRA attempts to collect the outstanding balance through Minnesota Revenue Recapture. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Executive Director is hereby authorized to write off a balance of $201.58 for fiscal year 2023 in the Public Housing program. 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 December, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 82 of 98 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _December 18, 2023__ BOARD MEETING DATE AGENDA ITEM #5D Rehabilitation ORIGINATING DEPARTMENT/SERVICE Tanya Westra 12/11/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 271 Authorizing the Housing Program Supervisor and Project Manager to Execute Loan and Grant Documents for the Community Housing Investment Programs and Small City Development Programs; Rescinding Resolution No. 196 PROPOSED REQUEST/JUSTIFICATION From time to time, borrowers using the current and previous versions of CHIP and Small Cities Development Program loans may refinance their primary home or building mortgage, payoff their loan or the term may expire. It is necessary to execute appropriate loan documents for those situations in an expeditious manner. The Housing Program Supervisor position was created in 2023. Due to the timeliness required, and the necessity of an original (“wet”) signature on documents, it is recommended that: 1) The Housing Program Supervisor be authorized to execute loan documents in the absence of the Executive Director; and 2) The Project Manager be authorized to execute loan documents in the absence of the Executive Director and the Housing Program Supervisor. Resolution No. 196 was adopted in 2022 to address a similar situation when the Housing Program Supervisor position did not exist. It would be appropriate to rescind this resolution. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/13/2023 ATTACHMENT LIST: FINANCIAL IMPLICATIONS: NA BUDGETED: YES NO FUNDING: NA COMMENTS 83 of 98 RESOLUTION NO. 271 AUTHORIZING THE HOUSING PROGRAM SUPERVISOR AND PROJECT MANAGER TO EXECUTE LOAN AND GRANT DOCUMENTS FOR THE COMMUNITY HOUSING INVESTMENT PROGRAMS AND SMALL CITY DEVELOPMENT PROGRAMS; RESCINDING RESOLUTION NO. 196 WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) operates Community Housing Investment Programs as well as the Small Cities Development Program to homeowners and rental property owners (the “Programs ”); and WHEREAS, the Authority has entered into a Joint Powers Agreement with Otter Tail County for administration and staff services effective January 1, 2022; and WHEREAS, the Authority is responsible for executing various loan related documents in a timely manner as required by the Programs; and WHERAS, the Authority previously adopted Resolution No. 196 on April 21, 2022 authorizing the Project Manager to execute documents for the Programs in the absence of the Executive Director; and WHEREAS, the Housing Program Supervisor position was created in 2023; and WHEREAS, the Housing Program Supervisor has been assigned oversight of the Programs; and WHEREAS, from time to time, in order to administer the Programs expeditiously, the Authority has determined that additional document execution authority is warranted; and WHEREAS, the Authority has determined that the Housing Program Supervisor is the appropriate position to execute documents relating to the Programs, in the absence of the Executive Director; and WHEREAS, the Authority has determined if both the Executive Director and the Housing Program Supervisor are absent, the Project Manager is the appropriate position to execute documents relating to the Programs. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That it is necessary to grant additional staff the authority to execute Program documents in the absence of the Executive Director. 2. That in the absence of the Executive Director, the Housing Program Supervisor may execute loan documents related to current and future participants of Community Housing Investment Programs as well as the Small Cities Development Program. 3. That in the absence of both the Executive Director and the Housing Program Supervisor, the Project Manager may execute loan documents related to current and 84 of 98 future participants of Community Housing Investment Programs as well as the Small Cities Development Program. 4. That Resolution No. 196 is hereby rescinded. 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 December 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 85 of 98 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _December 18, 2023 BOARD MEETING DATE AGENDA ITEM #5E Executive Director ORIGINATING DEPARTMENT/SERVICE Amy Baldwin 12/13/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 272 Authorizing Application to Minnesota Cities Participation Program; Authorizing Execution of Commitment Agreement with Minnesota Housing PROPOSED REQUEST/JUSTIFICATION For several years, the HRA has participated in the Minnesota Housing “Minnesota Cities Participation Program” (MCPP). The program sets aside dedicated funding for local lenders to provide first time homebuyer assistance in the county. To date, staff actively promotes this program as appropriate. There is no fee to the HRA/county for participation and administration tasks are minimal. While the program is administered by lenders, Minnesota Housing requires an application and execution of a Commitment Agreement annually. The key provision of the ”Commitment Agreement” refers to the HRA requesting Minnesota Housing to commit and direct its designated “Master Servicer” to purchase the mortgage notes originated by the local lenders administering the program. In 2023, the “allocation” was $759,710 in first time homebuyer loans. As of November 30, 2023, five households have utilized $679,641 of the allocation. Staff recommends the Board adopt the attached resolution, which authorizes the filing of the required application and execution of the Commitment Agreement by the Executive Director for 2024. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/13/2023 ATTACHMENT LIST: Resolution No. 272 and Exhibit A FINANCIAL IMPLICATIONS: NA BUDGETED: NA YES NO FUNDING: Program administered by local lenders COMMENTS 86 of 98 RESOLUTION NO. 272 RESOLUTION AUTHORIZING APPLICATION TO MINNESOTA CITIES PARTICIPATION PROGRAM; AUTHORIZING EXECUTION OF COMMITMENT AGREEMENT WITH MINNESOTA HOUSING WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) has previously participated in the Minnesota Housing Minnesota Cities Participation Program (the “MCPP Program”); and WHEREAS, the Authority has determined that the MCPP Program is a critical resource to enable first time home buyers to become homeowners; and WHEREAS, the Authority is required to file an application to Minnesota Housing for the 2024 program year; and WHEREAS, the Authority is required to enter into the Minnesota Housing Commitment Agreement (the “Agreement”) as represented in Exhibit A, incorporated herein and attached hereto. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for Otter Tail County, Minnesota, as follows: 1. That the Executive Director is hereby directed and empowered to file the necessary application to Minnesota Housing for the MCPP Program. 2. That the Executive Director is hereby directed and empowered to execute the Minnesota Housing Commitment Agreement. 3. That the Executive Director is hereby directed and empowered to take any other action necessary to comply with the requirements of the MCPP Program. Upon the motion of_____________, seconded by_______________, and passed on a unanimous vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 18th day of December, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 87 of 98 Minnesota Housing - Minnesota City Participation Program Program Application-Commitment Agreement 1 MINNESOTA HOUSING FINANCE AGENCY MINNESOTA CITY PARTICIPATION PROGRAM PROGRAM APPLICATION COMMITMENT AGREEMENT THIS APPLICATION AND AGREEMENT (this “Agreement”) is between Otter Tail County Housing & Redevelopment Authority with its office at 500 W. Fir Ave., Fergus Falls, MN 56537 and Minnesota Housing Finance Agency ("Minnesota Housing"), with its office at 400 Wabasha Street North, Suite 400, St. Paul, MN 55102. RECITALS: A.Minnesota Housing, under the provisions of Minn. Stat. §474A.061, Subd. 2a isauthorized to issue qualified mortgage bonds, as that term is used in the Internal Revenue Code of 1986, as amended (the “Code”), on behalf of the City, and it will issue bonds for that purpose (the “Bonds”). B.The City applying to participate is a Minnesota city, county, city or county housing andredevelopment authority, economic development authority, port authority or a consortium of local government units, as defined by Minnesota Statutes §474A.061, Subd. 2a(c). C.Minnesota Housing has implemented Minnesota Housing Finance Agency Minnesota CityParticipation Program (the "Program") and will use the proceeds from the issuance of the Bondsto fund the Program. D. The City has requested and received a set-aside of funds from the Program. E. The City wishes to obtain a commitment by Minnesota Housing to direct MinnesotaHousing’s designated Master Servicer (the “Master Servicer”) to purchase mortgage notes ("Mortgages") that will be originated by a lender or lenders that meet Minnesota Housing requirements for participation in programs funded by qualified mortgage bonds (collectively, the"Lender”). F. Mortgages that the Master Servicer purchases pursuant to the commitment requested by the City must only be for residences located within a geographic area to be established and designated by the City. G. Minnesota Housing is willing to issue a commitment agreeing to purchase Mortgage-Backed Securities backed by Mortgages that are (i) originated by the Lender; (ii) purchased by the Master Servicer; (iii) in accordance with the terms and conditions of this Agreement, the Program, and the Start Up Procedural Manual to be supplied by Minnesota Housing (the"Procedural Manual"), the provisions of which are hereby incorporated by reference into thisAgreement as if set forth in full herein; and (iv) made to borrowers with adjusted incomes notexceeding the greater of 80 percent of statewide or area median income as calculated by Minnesota Housing. NOW, THEREFORE, in consideration of the covenants contained in this Agreement, Minnesota Housing and the City agree as follows: 1.City Requirements. All Mortgages submitted to Minnesota Housing for purchaseunder the Program must comply with all of the requirements of the Program, the Start Up Procedural Manual and this Agreement. 2.Commitment and Commitment Amount. The City, which applied in January 2024 for a commitment, hereby requests that Minnesota Housing cause its Master Servicer to purchase Mortgages that have been originated by the Lender and meet the requirements of, and are made in accordance with the provisions of, this Agreement, the Program, and the Procedural Manual. Minnesota Housing, by accepting this Agreement, commits to the purchase of those Mortgages in the aggregate principal amount (the "Commitment Amount") to be determined and allocated EXHIBIT A 88 of 98 Minnesota Housing - Minnesota City Participation Program Program Application-Commitment Agreement 2 by Minnesota Housing in accordance with Minnesota Statutes §474A.061, Subd. 2a(d), and provided to the City. The Master Servicer will only purchase Mortgages pursuant to this Agreement securing property that, and borrowers who, satisfy the requirements and provisions of this Agreement, the Program, and the Procedural Manual. The City acknowledges that the commitment is effective upon the approval thereof by Minnesota Housing and the delivery of a copy of this Agreement by Minnesota Housing to the City. 3. Lender Qualifications. Lenders must meet Minnesota Housing requirements for participation in programs funded by qualified mortgage bonds. 4. Commitment Term. The term of this Agreement and the City's participation in the Program (the "Commitment Term") will commence on January 16, 2024 and shall continue through November 30, 2024. This Agreement, and the City's participation in the Program, will automatically terminate, without the need for any action by either party hereto, at the end of the Commitment Term. 5. Set-Aside Term. The Commitment Amount will be set-aside and held by Minnesota Housing for the sole use by the City for a period of time to be established by Minnesota Housing, in its sole option and discretion, provided, however, that time period will not be less than six months (the "Set-Aside Term") commencing on a date to be selected and specified by Minnesota Housing. Minnesota Housing will notify the City in writing of the date on which the Set-Aside Term commences. Any portion of the Commitment Amount not reserved for the purchase of qualifying Mortgages as of the end of the Set-Aside Term shall be canceled and returned to Minnesota Housing for redistribution under the Program In addition, any portion of the Commitment Amount reserved for Mortgages that are not delivered to the Master Servicer for purchase within the time period delineated in the Procedural Manual for that purchase, will be canceled and Minnesota Housing will redistribute that amount under the Program. Minnesota Housing may make any funds available to the Program at the end of the Commitment Term for mortgage loans that are eligible to be financed with proceeds of the Bonds. 6. Commitment Fees. There is no commitment fee payable by the City for the commitment by Minnesota Housing to the purchase by the Master Servicer of qualifying Mortgages. 7. Purchase Price. The purchase price of each Mortgage to be purchased by the Master Servicer pursuant to this Agreement will be as set forth in the requirements of the Procedural Manual and posted on Minnesota Housing’s website. 8. Mortgage Terms. The terms and conditions for all Mortgages, including but not limited to the interest rate, will be set from time to time by Minnesota Housing, at its sole option and discretion, and communicated to the Lender in accordance with the procedures set forth in the Procedural Manual. 9. Area Limitation. Minnesota Housing, pursuant to this Agreement, is required to purchase only those Mortgages that are for residences located within a geographic area to be established and designated by the City. 10. Servicing. The servicing of Mortgages shall be the sole responsibility of the Master Servicer or one or more other entities that Minnesota Housing may designate in its sole discretion. 11. Contract Documents. The purchase by the Master Servicer of each Mortgage pursuant to Minnesota Housing’s commitment is a contract consisting of this Agreement and the provisions and requirements contained in the Procedural Manual, with all amendments and supplements thereto in effect as of the date of Minnesota Housing's acceptance of this Agreement. 89 of 98 Minnesota Housing - Minnesota City Participation Program Program Application-Commitment Agreement 3 12. Paragraph Captions and Program Headings. The captions and headings of the paragraphs of this Agreement are for convenience only and will not be used to interpret or define the provisions thereof. 13. Applicable Law. This Agreement is made and entered into in the State of Minnesota, and all questions relating to the validity, construction, performance and enforcement hereof will be governed by the laws of the State of Minnesota. 14. Agreement Conditional Upon Minnesota Housing Approval. This Agreement will be a binding obligation of Minnesota Housing upon its execution by Minnesota Housing and delivery of a copy of the same to the City; provided, however, Minnesota Housing may, in its sole option and discretion, any time on or after January 16, 2024 revoke such obligation and terminate this Agreement if the City has not fully executed and returned a fully executed original hereof to Minnesota Housing. That revocation and termination will be accomplished and evidenced by Minnesota Housing notifying the City thereof by way of a “Certified Letter - Return Receipt Requested” addressed and delivered to the City. Upon revocation and termination this Agreement will be null and void and of no force or effect. 15. Issuance of Bonds. The City hereby authorizes Minnesota Housing to issue, on behalf of the City, qualified mortgage bonds, as that term is used in the Code, in an amount equal to the Commitment Amount, and Minnesota Housing agrees to issue those bonds if and when federal law authorizes and Minnesota Housing deems it is economically feasible to do so. (THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK) 90 of 98 Minnesota Housing - Minnesota City Participation Program Program Application-Commitment Agreement 4 IN WITNESS WHEREOF, the City has executed this Agreement this _____ day of (Day) _____________________, _________. (Month) (Year) Otter Tail County Housing & Redevelopment Authority By: ________________________________ (Signature of Authorized Officer) _______________________________ (Name of Authorized Officer) Minnesota Housing APPROVAL Minnesota Housing hereby accepts the above Program Application-Commitment Agreement and approves and grants participation in the program. MINNESOTA HOUSING FINANCE AGENCY By: Kayla Schuchman Its: Assistant Commissioner, Single-Family Division Signed this ____ day of ____________, 2024. 91 of 98 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _December 18, 2023__ BOARD MEETING DATE AGENDA ITEM #5F Administration ORIGINATING DEPARTMENT/SERVICE Amy Baldwin 12/13/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 273 Reassigning Committed Funds PROPOSED REQUEST/JUSTIFICATION The purpose of Resolution No. 273 is to “reassign” the $375,000 that was set aside for the Hidden Meadows project. These funds were “committed” to this project in case sale of the homes were significantly delayed and the Authority needed to continue paying on the “Interim Loan” provided by Minnesota Housing. The term “committed” is defined by the Government Accounting Standards Board circular No. 54. In general, it means that an amount of the fund balance is constrained for a specific purpose. In this case it was for a specific project. Because the project is completed, it is now appropriate to reassign the funds as “Unassigned”, which is defined as, General Fund balance that is available for any purpose. The project is now completed. It is appropriate to remove the “committed” assignment on these funds and reassign these funds as “Unassigned” in the Authority’s fund balance. Staff recommends approval of Resolution No. 273. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/13/2023 ATTACHMENT LIST: Resolution No. 273 FINANCIAL IMPLICATIONS: $375,000 BUDGETED: X YES NO FUNDING: General Revolving COMMENTS 92 of 98 Period Amount Balance ASSETS 1111 Cash 171,799.22 1,350,673.60 1111.1 Certificates of Deposit 142,898.17 1111.2 Cash MHFA Loan Acct #0054 0.50 4,083.10 1111.3 Cash Committed for Hidden Meadows 375,000.00 1111.4 Committed for Housing Trust Fund 542,596.00 1113 Cash Rental Rehab 1,773.14 305,680.01 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 156,426.86 2,921,853.62 LIABILITIES AND SURPLUS LIABILITIES 2310 MHFA Note Payable 167,006.00 TOTAL LIABILITIES 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) 156,426.86 368,249.64 TOTAL SURPLUS 156,426.86 2,754,847.62 TOTAL LIABILITIES AND SURPLUS 156,426.86 2,921,853.62 Otter Tail County Housing Redevelopment Authority Balance Sheet November 2023 Program: General Revolving (GR) Project: Consolidated www.pha-web.com © 2023 Management Computer Services, Inc. (MCS) Page 1 of 1 12/6/2023 9:17:45 AM Printed by: Julie Bakken 93 of 98 RESOLUTION NO. 273 REASSIGNING COMMITTED FUNDS WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) received a request from the City of Battle Lake Economic Development Authority (the “City EDA”) and the City of Battle Lake (the “City”) in 2020 to assist in the preparation of an application to the Minnesota Housing Finance Agency (the “State Housing Finance Agency”) “Community Impact Fund” programs to spark new development in the Hidden Meadows subdivision; and WHEREAS, the application was awarded and the Authority authorized execution of the Grant Agreement and Interim Loan Financing Agreement (the “Agreements”) with the State on March 17, 2022 for the construction of three single family homes in the Hidden Meadows subdivision (the “Project”); and WHEREAS, on September 22, 2022, the Authority approved Resolution No. 206 awarding the bid for the Project and authorizing execution of a Construction Contract (the “Contract”) to HighPoint Homes (the “Builder”); and WHEREAS, the Government Accounting Standards Board Statement No. 54 (“GASB No. 54”) establishes classifications for governmental funds; and WHEREAS, the Authority designated $375,000 of its fund balance as “Cash Committed for Hidden Meadows” (the “Committed Funds for Hidden Meadows”) in the event that the Project was delayed, and Project expenses had to be paid; and WHEREAS, the Project has been completed in a timely basis; and WHEREAS, the Authority has determined that it is appropriate to reassign the Committed Funds for Hidden Meadows; and WHEREAS, the Authority has determined that the Committed Fund for Hidden Meadows be reassigned as “Unassigned” and is available for any purpose. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Committed Funds for Hidden Meadows is hereby reassigned as Unassigned, as that term is defined in GASB No. 54. 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 December 2023. 94 of 98 Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 95 of 98 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 6. EXECUTIVE DIRECTOR REPORT 96 of 98 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: Amy Baldwin, Executive Director DATE: December 18, 2023 SUBJECT: Executive Director Report 2024 Meeting Dates There are three months in 2024 where the HRA meeting scheduled for the 3rd Tuesday of the month will conflict with the County Board meetings, and alternate meeting days and times should be identified. The HRA Board will approve the 2024 meeting schedule at its January meeting. Following are the three conflicting dates: May 21 November 19 December 17 January 2024 Meeting Reminder that the January meeting is the “annual” meeting, and that the Board Packet will not include the December or January financials, since Finance staff will be working on the year-end close out. 97 of 98 218-998-8730 @ 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 7. GENERAL DISCUSSION TOPICS BY COMMISSIONERS and ADJOURN 98 of 98 1ir EOU/\l. HOUSING OPPORTUNITY