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Housing & Redevelopment Authority - HRA-Packet-08-06-2025 Supporting Documents - 08/06/2025
OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN August 6, 2025 | 12:45 pm Commissioners may participate in the meeting by interactive technology. 1.Call Meeting to Order and Roll Call – Chairperson 2. Approval of Agenda 3. Consent Agenda A. Regular Board Meeting Minutes, July 2, 2025 B. Housing Choice Voucher Rental Assistance Program for June 2025 C. Community Housing Investment Programs for June 2025 D. Public Housing and Senior Housing for June 2025 E. Check Report and Financial Reports for June 2025 4. New Business A. Resolution No. 311 Approving Special Benefit Levy for Taxes Payable 2026 B. Call for public hearing related to Annual Agency Plan, Administrative Plan and Admissions & Continued Occupancy Plan Changes and the 2026 Capital Fund Plan C. Resolution No. 312 Adopting Amendments to Community Housing Improvement Program Policies and Procedures a. Down Payment Assistance b. Emergency Home Repair Program c. Owner-Occupied Housing Leverage Program d. Affordable Rental Unit Construction Program e. Rental Rehabilitation Program D. Resolution No. 313 Approving Community Housing Investment Programs to be Administered through the Otter Tail County Housing Trust Fund E. Resolution No. 314 Transfer of Funds to Otter Tail County Housing Trust Fund a. Special Benefit Levy b. Rental Rehabilitation Account 5. Old Business 6. Discussion A. 2026 Agency Goals B. Administrative Plan and Admissions & Continued Occupancy Plan Changes 1/49 C. 2026 Capital Fund Plan 7. Executive Director Report A. Tax Forfeited Property 8. General Discussion – Topics by Commissioners 9. Adjourn 2/49 The Otter Tail County HRA Board of Commissioners Met for a regular meeting on July 2, 2025 at 12:45 pm 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 Rogness, Vice Chairperson Others Present: Amy Baldwin, OTC HRA Executive Director Tanya Westra, OTC HRA Housing Program Supervisor Julie Bakken, OTC HRA Accountant Paula Grunewald, OTC HRA Administrative Assistant Aisling Cox, CDA Intern 1. CALL TO ORDER Chairperson Johnson called the meeting to order at 12:50 pm. 2. APPROVAL OF AGENDA Motion made by Betty Murphy, second by Leland Rogness to approve the July 2, 2025 Agenda. Motion passed unanimously. 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made Kurt Mortenson second by Jeff Ackerson to approve Consent Agenda without changes. Motion passed unanimously. 4. NEW BUSINESS A. Consider Recommended Updates to the Housing Trust Fund Ordinance Amy Baldwin, HRA Executive Director stated that the Otter Tail County Housing Trust Fund was established in 2021, through a County ordinance with the HRA named as the administrator of the Fund. The State recently awarded matching funds for local housing trust funds with the HRA being awarded $150,000. With this award, a review of the ordinance to ensure current relevance was completed. With a recommendation from the HRA on the proposed changes, a revised ordinance will be presented to the Otter Tail County Board of Commissioners. Motion made by Leland Rogness, second by Betty Murphy to approve the recommended changes to the Housing Trust Fund Ordinance and the additional changes indicated today and submit to the Otter Tail County Board of Commissioners as an Otter Tail County Standard Ordination for a Public Hearing. Motion passed unanimously. . 3/49 Pg. 2 B. Approve Submission of Application for Community Impact Fund Grant and Interim Loan Financing to Minnesota Housing Amy Baldwin, HRA Executive Director stated that the application for the Community Impact Fund Grant to Minnesota Housing would include Value Gap Grant Funds as well as Interim Loan Financing to cover the construction of seven single-family homes in three communities. Build sites would be located in Pelican Rapids, New York Mills and Parkers Prairie. The application includes a provision for a seven-year deed restriction period, which would require a new buyer to be income qualified. Applications that include leverage will score higher and the proposed committed leverage by HRA of $70,000 for site acquisition could be funded by the Housing Trust Fund. There would be 36 months to complete construction with the flexibility to stagger construction. Motion made by Kurt Mortenson, second by Jeff Ackerson to approve submitting the application for the Community Impact Fund Grant and Interim Loan Financing to Minnesota Housing as proposed with three separate applications for: 1) Pelican Rapids, 2) New York Mills 3) Parkers Prairie. 5. OLD BUSINESS - none 6. DISCUSSION A. SEMAP Scoring Amy Baldwin, HRA Executive Director stated that the Section 8 Management Assessment Program (SEMAP) scoring was included in the packet. The HRA’s overall performance rating was 85% equal to Standard. We are in the process of enhanced processing and training to bring scores up. SEMAP scoring is required every other year. Also noted that the 2024 Audit has been completed, including a Federal Single Audit of the HCV program. There will be an upcoming Audit Presentation to the HRA Finance Committee 7. EXECUTIVE DIRECTOR REPORT A. MN Legislative Session Review Key programs funded in the Housing omnibus bills are Greater MN Housing Infrastructure Workforce Housing Development Program Challenge Program HIB Bonds Includes land use and zoning policy language – Scoring criteria will include “local actions to support housing” B. Changes to the Open Meeting Law for remote participation were reviewed. Board members who join remotely do not have to have the location where they will be joining from noticed with the agenda. It was noted that other requirements remain unchanged, including that all members need to be able to hear and see one another as well as at least one member who is physically present. Votes would be conducted by roll call so each member’s vote can be identified and recorded. This change was effective July 1, 2025. New language will be created to be included on our agenda. 8. GENERAL DISCUSSION – TOPICS BY COMMISSIONERS - none 9. ADJOURNMENT At 1:41 pm a motion was unanimously carried to adjourn the meeting. ________________________________________________________ ___________________ Secretary/Clerk Date 4/49 6/30/2025 7/1/2025 Difference 44,188.52$ 41,437.06$ -$2,751.46 86 84 -2 42,118.00$ 35,539.00$ *HAP Adjustment Port out adjustment 2,138.00$ *Utility Adjustment *Portability Tranactions (Out)1,109.00$ 2,819.00$ 61.00$ *Portablilty Admin Fee (Paid)38.52$ 91.06$ 923.00$ 789.00$ 6/30 7/1 New Admissions 0 End Participation 0 Shop Mode/ARS 0 Ports-Out Paid 2 2 Ports Out Pending 2 0 Ports In Pending 0 0 6/30/2025 Waiting List/To Date 70 Applications in Progress 0 Vouchers Issued 0 Vouchers "On the Strreet"2 ELI%0%YTD Monthly Trend Report*Units Available Units Leased Leasing %Budget %Per Unit $ January 2025 144 95 66.0% 91.2% 536.54$ February 2025 144 94 65.6% 88.3% 500.37$ March 2025 144 92 65.3% 86.2% 491.23$ April 2025 144 91 64.8% 85.0% 493.06$ May 2025 144 88 64.6% 83.5% 493.17$ June 2025 144 86 64.4% 83.2% 513.82$ *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 June 30, 2025 Program Total Financial Transaction Paid This Month* UML (Unit Months Leased or # of Households) *HAP & Utility Reimbursement Payments 5/49 COMMUNITY HOUSING INVESTMENT PROGRAMS (CHIP) BOARD REPORT June 2025 Program Applications Approved Applications Denied Inspections Conducted Proceed to Work Issued Projects Complete Goal Program End Date Emergency Home Repair Program (EHRP) 1 2 1 1 1 On-Going Down Payment Assistance (DPA) 4 4 On-Going SCDP: Reuse On-Going Rent Rehab – RR On-Going Affordable Rental Unit Construction - ARUC On-Going PELICAN RAPIDS 09/30/2027 SCDP: Commercial 4 3 SCDP: Homeowner 6 1 5 1 Residential Owner-Occupied Leverage (ROHL) 6/49 PUBLIC HOUSING BOARD REPORT June 2025 Rents Payable $5,666 Rents Collected $5,666 Total Negative Rents $ 0 Negative Rents Paid $ 0 Late Fees Charged $ 55 Late Fees Collected $ 55 Number of Units Paying Flat Rent 0 Fiscal Year ELI WAITING LIST as of 07/25/2025 Community 2 Bedroom 3 Bedroom 4 Bedroom Pelican Rapids 11 8 N/A Underwood 3 3 2 Henning 5 3 2 New York Mills 4 4 2 VACANCIES UNIT VACATED LEASE SIGNED *3 BR-Henning - Lease termination *3 BR-Henning- Lease termination 06/01/2025 07/21/2025 07/24/2025 Families on waiting list have been contacted 7/49 AFFORDABLE SENIOR HOUSING BOARD REPORT June 2025 Rents Payable $ 3,300 Rents Collected $ 3,300 Late Fees $ 0 Late Fees Collected $ 0 WAITING LIST as of 07/29/2025 Community 1 Bedroom 2 Bedroom Dalton 1 0 VACANCIES UNIT VACATED LEASE SIGNED 138 202 8/49 Doc Num Voided Type 149 No DD 150 No DD 151 No DD 152 No DD 153 No DD 1614 No CHK 1615 No CHK 1616 No CHK 1617 No CHK 1618 No CHK 1619 No CHK End of Report Total:11 $67,749.66 Vendor Accounting - 11 $67,749.66 Vendor Accounting Total 11 $67,749.66 Transaction Type Summary Transaction Type Count Amount Check (CHK)6 $66,991.21 Total:11 $67,749.66 Count Amount Direct Deposit (DD)5 $758.45 Project Summary Program - Project Payments Deposits General Revolving (GR) - $67,749.66 $0.00 Total:$67,749.66 $0.00 Document Type Summary Document Type Cleared: 8 $66,269.60 Uncleared: 3 $1,480.06 Total Payments: 11 $67,749.66 06/27/2025 Sprinklers, timers, hoses, maint supplies.No $812.56 06/27/2025 O&E Pelican Rapids No $285.00 06/13/2025 Payroll, Postage, Amazon, Acct Serv May 25 Yes $55,321.15 06/27/2025 General Matters Legal Services No $382.50 06/13/2025 Remainder of Contract- N Fields of Dalton Yes $10,000.00 06/13/2025 O&E SCDP Pelican Rapids Yes $190.00 06/13/2025 Per Diem/Mileage June 25 Yes $103.70 06/27/2025 Consulting Services 05/19-06/16/25 Yes $373.75 06/13/2025 Per Diem/Mileage June 25 Yes $93.20 06/13/2025 Per Diem/Mileage June 25 Yes $77.80 Payment Date Document Description Cleared Amount 06/13/2025 Per Diem/Mileage June 25 Yes $110.00 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register General Revolving (GR) Posted Payments www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 1:48:58 PM Printed by: Julie Bakken 9/49 50% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3610 Interest Income 3703/5353/3741/0054 3,348.91 4,568.38 8,000.00 (3,431.62)57% 3690 Other Revenue MISC 20,205.00 20,205.00 3690.01 SCDP Administration (DEED) - All Communities 7,049.00 61,200.00 (54,151.00)12% 3690.02 SCDP City/Grant Funds - All Communities 408,598.00 (408,598.00)0% 3691 Levy Revenue 921,834.64 1,610,431.00 (688,596.36)57% 3693.02 CHIP Res Owner Occup Housing Lev (ROHL) Repayment 4,572.40 4,572.40 3693.05 CHIP Rental Rehab Revolving Loan Payments 590.50 5,224.60 14,704.00 (9,479.40)36% TOTAL INCOME 3,939.41 963,454.02 2,102,933.00 (1,139,478.98)46% EXPENSES 4130 Legal 382.50 382.50 20,000.00 19,617.50 2% 4140 Staff Training 169.00 6,000.00 5,831.00 3% 4150 Travel 500.00 500.00 0% 4170 Accounting 5,000.00 25,000.00 60,000.00 35,000.00 42% 4171 Audit 16,500.00 22,000.00 5,500.00 75% 4190 Other Administrative Expenses 179.86 15,902.72 (15,902.72) 4190.01 Manuals, Subscriptions 30.00 1,000.00 970.00 3% 4190.02 Office Supplies 67.43 411.79 1,700.00 1,288.21 24% 4190.03 Postage 360.47 1,218.57 2,500.00 1,281.43 49% 4190.05 Dues 954.34 1,500.00 545.66 64% 4190.06 Advertising 2,000.00 2,000.00 0% 4190.08 Consulting Fees 373.75 3,176.60 50,000.00 46,823.40 6% 4190.2 Management Fees-OTC Admin 41,200.85 203,691.74 620,000.00 416,308.26 33% 4210 Board Member Payments 384.70 2,322.20 4,100.00 1,777.80 57% 4420 Maintenance - Materials 800.58 800.58 (800.58) 4430.1 Misc Contracts - Software 7,218.00 7,700.00 482.00 94% 4510 Insurance 15,559.35 50,000.00 34,440.65 31% 4570 Housing Choice Voucher Operating Support 1,110.60 4,089.26 30,000.00 25,910.74 14% 4580 Public Housing Operating Support 7,413.92 10,420.55 20,000.00 9,579.45 52% 4590.01 SCDP O & E Reports 475.00 570.00 1,235.00 665.00 46% 4590.02 SCDP Lead Based Paint Testing 8,000.00 8,000.00 0% 4590.03 SCDP Construction (DEED)7,049.00 400,000.00 392,951.00 2% 4590.04 SCDP Recording Fees 92.00 598.00 506.00 15% 4592.01 HOP Demolition/Site Clearance 45,000.00 45,000.00 0% 4593.02 CAP Property Acquisition 25,000.00 25,000.00 0% 4593.03 CAP Consulting Fees 10,000.00 10,000.00 0% 4593.04 CAP Architect/Engineering 5,000.00 5,000.00 0% 4593.05 CAP Legal Fees 5,000.00 5,000.00 0% 4593.06 CAP Affordable Senior Housing Program Leverage 125,000.00 125,000.00 0% 4594 CHIP Down Payment Assistance 54,420.00 75,000.00 20,580.00 73% 4595.01 CHIP Emergency Housing Repair Program (EHRP)1,751.46 100,000.00 98,248.54 2% 4595.02 CHIP Res Owner Occupied Housing Leverage (ROHL)138.00 56,000.00 55,862.00 0% 4595.04 CHIP Affordable Rental Unit Constr (ARUC) Program 46.00 100,000.00 99,954.00 0% 4595.05 CHIP Rental Rehabilitation Loan 95.00 50,000.00 49,905.00 4596.50 CWIP Pre-Development Expense 10,000.00 14,680.00 (14,680.00) 4597.01 County Assistance Repay Principal (BUDGET USE ONLY 34,633.00 34,633.00 0% 4597.02 County Assistance Repay Interest-N Fields Dalton (1,993.86)15,821.00 17,814.86 -13% TOTAL EXPENSES 67,749.66 384,694.80 1,955,287.00 1,570,592.20 20% SURPLUS (63,810.25)578,759.22 147,646.00 431,113.22 392% Otter Tail County Housing Redevelopment Authority Operating Statement Six Months Ending 06/30/2025 Program: General Revolving (GR) Project: Consolidated Percent of Year www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 11:39:37 AM Printed by: Julie Bakken 10/49 Period Amount Balance ASSETS 1111 Cash (67,470.29)2,817,758.08 1111.1 Certificates of Deposit 3,050.09 154,085.56 1111.4 Committed for Housing Trust Fund 542,835.00 1113 Cash Rental Rehab 609.95 237,000.33 1130.1 Loan Receivable-Rental Rehab 44,478.49 1130.2 Loan Receivable-Down Payment Assistance 124,920.00 1130.3 Loan Receivable-Tax Levy Rehab Provision 195,983.97 1130.4 Loan Receivable-Homeowner Rehab 25,577.19 1130.9 Loan Allowance (221,561.16) 1400.5 Accumulated Depreciation (536.50) 1400.6 Land 26,400.00 TOTAL ASSETS (63,810.25)3,946,940.96 LIABILITIES AND SURPLUS LIABILITIES 2130.1 OTC Long-Term Loan 791,045.71 TOTAL LIABILITIES 791,045.71 SURPLUS 2700 Income/Expense Clearing Account (1,096,378.03) 2700 Income/Expense Clearing Account (Current Year) (10,000.00)(12,686.14) 2806 Unrestricted Net Position 3,686,894.19 2806 Unrestricted Net Position (Current Year) (53,810.25)591,445.36 2806 Unrestricted Net Position (Unclosed 2024) (13,380.13) TOTAL SURPLUS (63,810.25)3,155,895.25 TOTAL LIABILITIES AND SURPLUS (63,810.25)3,946,940.96 Otter Tail County Housing Redevelopment Authority Balance Sheet June 2025 Program: General Revolving (GR) Project: Consolidated www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 11:39:36 AM Printed by: Julie Bakken 11/49 Doc Num Voided Type 1473 No DD 1474 No DD 1475 No DD 1476 No DD 1477 No DD 1478 No DD 1479 No DD 1480 No DD 1481 No DD 1482 No DD 1483 No DD 1484 No DD 1485 No DD 1486 No DD 1487 No DD 1488 No DD 1489 No DD 1490 No DD 1491 No DD 1492 No DD 1493 No DD 1494 No DD 1495 No DD 1496 No DD 1497 No DD 1498 No DD 1499 No DD 1500 No DD 1501 No DD 1502 No DD 1503 No DD 1504 No DD 1505 No DD 1506 No DD 1507 No DD 1508 No DD 1509 No DD 1510 No DD 6679 No CHK 6680 No CHK 6681 No CHK 6682 No CHK 6683 No CHK 6684 No CHK 6685 No CHK 6686 No CHK 6687 No CHK 6688 No CHK 6689 No CHK 6690 No CHK 6691 No CHK 06/01/2025 HAP Util Payment Jun 25 Yes $170.00 06/01/2025 HAP Util Payment Jun 25 Yes $58.00 06/01/2025 HAP Util Payment Jun 25 Yes $134.00 06/01/2025 HAP Util Payment Jun 25 Yes $15.00 06/01/2025 HAP Payment Jun 25 Yes $2,406.00 06/01/2025 HAP Util Payment Jun 25 No $40.00 06/01/2025 HAP Payment Jun 25 Yes $700.00 06/01/2025 HAP Payment Jun 25 Yes $997.00 06/01/2025 HAP Payment Jun 25 Yes $508.00 06/01/2025 HAP Payment Jun 25 Yes $322.00 06/01/2025 HAP Payment Jun 25 Yes $217.00 06/01/2025 HAP Payment Jun 25 Yes $801.00 06/01/2025 HAP Payment Jun 25 Yes $332.00 06/01/2025 HAP Payment Jun 25 Yes $313.00 06/01/2025 HAP Payment Jun 25 Yes $309.00 06/01/2025 HAP Payment Jun 25 Yes $2,147.00 06/01/2025 HAP Payment Jun 25 Yes $300.00 06/01/2025 HAP Payment Jun 25 Yes $887.00 06/01/2025 HAP Payment Jun 25 Yes $735.00 06/01/2025 HAP Payment Jun 25 Yes $457.00 06/01/2025 HAP Payment Jun 25 Yes $499.00 06/01/2025 HAP Payment Jun 25 Yes $345.00 06/01/2025 HAP Payment Jun 25 Yes $396.00 06/01/2025 HAP Payment Jun 25 Yes $269.00 06/01/2025 HAP Payment Jun 25 Yes $784.00 06/01/2025 HAP Payment Jun 25 Yes $672.00 06/01/2025 HAP Payment Jun 25 Yes $1,342.00 06/01/2025 HAP Payment Jun 25 Yes $342.00 06/01/2025 HAP Payment Jun 25 Yes $405.00 06/01/2025 HAP Payment Jun 25 Yes $2,339.00 06/01/2025 HAP Payment Jun 25 Yes $640.00 06/01/2025 HAP Payment Jun 25 Yes $650.00 06/01/2025 HAP Payment Jun 25 Yes $5,148.00 06/01/2025 HAP Payment Jun 25 Yes $879.00 06/01/2025 HAP Payment Jun 25 Yes $1,469.00 06/01/2025 HAP Payment Jun 25 Yes $589.00 06/01/2025 HAP Payment Jun 25 Yes $818.00 06/01/2025 HAP Payment Jun 25 Yes $177.00 06/01/2025 HAP Payment Jun 25 Yes $567.00 06/01/2025 HAP Payment Jun 25 Yes $600.00 06/01/2025 HAP Payment Jun 25 Yes $465.00 06/01/2025 HAP Payment Jun 25 Yes $441.00 06/01/2025 HAP Payment Jun 25 Yes $594.00 06/01/2025 HAP Payment Jun 25 Yes $5,110.00 06/01/2025 HAP Payment Jun 25 Yes $400.00 06/01/2025 HAP Payment Jun 25 Yes $365.00 06/01/2025 HAP Payment Jun 25 Yes $579.00 06/01/2025 HAP Payment Jun 25 Yes $498.00 06/01/2025 HAP Payment Jun 25 Yes $546.00 06/01/2025 HAP Payment Jun 25 Yes $386.00 Payment Date Document Description Cleared Amount 06/01/2025 HAP Payment Jun 25 Yes $531.00 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers Posted Payments www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 2 7/16/2025 1:55:21 PM Printed by: Julie Bakken 12/49 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers 6692 No CHK 6693 No CHK 6694 No CHK 6695 No CHK 6696 No CHK 6697 No CHK 6698 No CHK 6700 No CHK 6701 No CHK 6702 No CHK End of Report Total:61 $49,468.42 Vendor Accounting - 3 $7,002.90 Vendor Accounting Total 3 $7,002.90 HAP Accounting Total 57 $41,318.00 HAP Accounting - 57 $41,318.00 Port/Sub Out - Payment 1 $1,147.52 Portability/Subsidy Out 1 $1,147.52 Transaction Type Summary Transaction Type Count Amount Check (CHK)23 $15,456.42 Total:61 $49,468.42 Count Amount Direct Deposit (DD)38 $34,012.00 Project Summary Program - Project Payments Deposits Housing Choice $49,468.42 $0.00 Total:$49,468.42 $0.00 Document Type Summary Document Type Cleared: 58 $49,197.42 Uncleared: 3 $271.00 Total Payments: 61 $49,468.42 06/13/2025 HCV Payroll May 2025 Yes $6,879.00 06/27/2025 June 25 Mileage Reimb No $84.00 06/01/2025 Port Out Payment Jun 25 Yes $1,147.52 06/13/2025 Mileage Reimb May 25 Yes $39.90 06/01/2025 HAP Util Payment Jun 25 Yes $35.00 06/01/2025 HAP Util Payment Jun 25 Yes $61.00 06/01/2025 HAP Util Payment Jun 25 No $147.00 06/01/2025 HAP Util Payment Jun 25 Yes $133.00 06/01/2025 HAP Util Payment Jun 25 Yes $212.00 06/01/2025 HAP Util Payment Jun 25 Yes $37.00 www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 2 of 2 7/16/2025 1:55:21 PM Printed by: Julie Bakken 13/49 50% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rent HAP Repayment 17,506.00 17,506.00 3301 Admin Subsidy 7,808.00 49,724.00 69,800.00 (20,076.00)71% 3301.1 HAP Subsidy 43,500.00 299,408.00 515,000.00 (215,592.00)58% 3610 Investment Income (0062)9.58 51.66 130.00 (78.34)40% 3690.1 Other Revenue HAP 30,000.00 (30,000.00)0% TOTAL INCOME 51,317.58 366,689.66 614,930.00 (248,240.34)60% EXPENSES 4140 Staff Training 1,716.00 4,400.00 2,684.00 39% 4150 Travel 123.90 204.40 250.00 45.60 82% 4190 Other Admin Expenses (Apps, Service Charges)11.00 66.00 400.00 334.00 17% 4190.01 Manuals, Subscriptions 478.00 8,500.00 8,022.00 6% 4190.2 Management Fees-OTC 6,879.00 35,455.41 55,000.00 19,544.59 64% 4715.1 HAP Occupied Units 43,041.00 267,563.00 515,000.00 247,437.00 52% 4715.P HAP-Portability Out 2,705.00 8,523.00 15,000.00 6,477.00 57% 4716.P Port Out Admin Fee 38.52 231.12 500.00 268.88 46% TOTAL EXPENSES 52,798.42 314,236.93 599,050.00 284,813.07 52% SURPLUS (1,480.84)52,452.73 15,880.00 36,572.73 330% Otter Tail County Housing Redevelopment Authority Operating Statement Six Months Ending 06/30/2025 Program: Housing Choice Vouchers Project: Consolidated Percent of Year www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 12:27:11 PM Printed by: Julie Bakken 14/49 Period Amount Balance ASSETS 1111 Cash Unrestricted 1,838.16 108,316.65 1121 Fraud A/R 17,506.00 1121.1 Fraud Recovery - Allowance (903.00) TOTAL ASSETS 1,838.16 124,919.65 LIABILITIES AND SURPLUS LIABILITIES 2112 A/P HAP 3,319.00 4,589.00 TOTAL LIABILITIES 3,319.00 4,589.00 SURPLUS 2700 Inc & Exp Clearing 3,175.69 2805 Restricted Net Position 26,005.74 2805 Restricted Net Position (Current Year) (2,246.00)23,322.00 2806 Unrestricted Position 38,696.49 2806 Unrestricted Position (Current Year) 765.16 29,130.73 TOTAL SURPLUS (1,480.84)120,330.65 TOTAL LIABILITIES AND SURPLUS 1,838.16 124,919.65 Otter Tail County Housing Redevelopment Authority Balance Sheet June 2025 Program: Housing Choice Vouchers Project: Consolidated www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 12:27:10 PM Printed by: Julie Bakken 15/49 Doc Num Voided Type #01-00000621-00-0 May 25 No INV #01-00010108-00-9 June 25 No INV #01-00010350-00-0 June 25 No INV #01-00010787-04 June 25 No INV #01-00041004-00-6 May 25 No INV #01-00041152-00-6 May 25 No INV #991 721 5394 4 June 25 No INV 7482 No CHK 7483 No CHK 7484 No CHK 7485 No CHK 7486 No CHK 7487 No CHK 7488 No CHK 7489 No CHK 7490 No CHK 7491 No CHK 7492 No CHK 7493 No CHK Doc Num Voided Type No CHK 130 No CHK 136 No CHK 137 No CHK 1004 Yes CHK 1004 No VD 1059 No CHK 1061 No CHK 1076 No CHK 1079 No CHK 1350 No CHK 2915 No CHK 2916 No CHK 2917 No CHK 5010 No CHK 030698 No MO 10517585 No CHK 10520157 No CHK 2028 No CHK 22-097306527 No MO 22-097381229 No MO 22-098476988 No MO 22-97381345 No CHK 29061298495 No MO 29661264516 No MO 2966126887 No MO MAHUBE No DDE Water's Edge Church No CHK Water's Edge Church No CHK Project Summary 06/02/2025 Payment - Check Yes $293.00 Cleared: 29 $12,742.58 Uncleared: 0 $0.00 Total Deposits: 29 $12,742.58 06/09/2025 Payment - Direct Debit Yes $835.00 06/02/2025 Payment - Check Yes $716.41 06/04/2025 Payment - Money Order Yes $550.00 06/20/2025 Payment - Money Order Yes $200.00 06/20/2025 Payment - Check Yes $167.79 06/02/2025 Payment - Money Order Yes $540.00 06/04/2025 Payment - Money Order Yes $293.67 06/04/2025 Payment - Money Order Yes $300.00 06/04/2025 Payment - Check Yes $200.00 06/27/2025 Payment - Money Order Yes $300.00 06/04/2025 Payment - Check Yes $43.00 06/20/2025 Payment - Check Yes $220.00 06/02/2025 Payment - Check Yes $979.31 06/02/2025 Payment - Money Order Yes $2,000.00 06/13/2025 Payment - Check Yes $500.00 06/27/2025 Payment - Check Yes $500.00 06/02/2025 Payment - Check Yes $644.37 06/02/2025 Payment - Check Yes $500.00 06/02/2025 Payment - Check Yes $835.00 06/13/2025 Payment - Check Yes $89.29 06/02/2025 Payment - Check Yes $500.00 06/04/2025 Payment - Check Yes $500.00 06/02/2025 Payment - Check Yes $1,708.00 06/26/2025 Insufficient funds Yes ($1,708.00) 06/20/2025 Payment - Check Yes $214.64 06/27/2025 Payment - Check Yes $95.00 06/20/2025 Payment - Check Yes $237.10 06/02/2025 Payment - Check Yes $489.00 Posted Deposits Control Date Document Description Cleared Amount Cleared: 10 $19,411.30 Uncleared: 9 $1,342.28 Total Payments: 19 $20,753.58 06/27/2025 Paint - Henning No $88.32 06/27/2025 NYM CO Issue No $356.00 06/27/2025 Maintenance Materials No $57.46 06/27/2025 Lawn Mowing - Henning No $90.00 06/18/2025 Remove old decks/build new-Henning.Yes $16,877.77 06/27/2025 Air Exchanger Repair - Underwood No $440.00 06/13/2025 Carpet Deep Clean - Underwood Yes $306.56 06/13/2025 Mileage Reimb May 25 Yes $35.00 06/13/2025 Junk Removal Henning Yes $175.00 06/13/2025 Water, Gas, Sewer Yes $539.27 06/13/2025 Install Washer Box - Underwood Yes $500.00 06/13/2025 Repair/Install Underwood Yes $295.00 06/04/2025 Water, Elec, Gas, Sewer Yes $242.52 06/10/2025 Gas No $29.22 06/26/2025 Water, Sewer No $94.56 06/04/2025 Water, Elec, Gas, Sewer Yes $250.00 06/26/2025 Water, Sewer No $92.81 06/26/2025 Water, Sewer No $93.91 Payment Date Document Description Cleared Amount 06/04/2025 Water, Elec, Gas, Sewer Yes $190.18 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Public Housing Posted Payments www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 2 7/16/2025 1:59:01 PM Printed by: Julie Bakken 16/49 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Public Housing End of Report Total:48 $33,496.16 Tenant Accounting - 28 $14,450.58 Tenant Accounts 29 $12,742.58 Tenant Accounting - AR 1 ($1,708.00) Vendor Accounting - 12 $19,760.38 Vendor Accounting Total 19 $20,753.58 Transaction Type Summary Transaction Type Count Amount Vendor Accounting - 7 $993.20 Total:48 $33,496.16 Money Order (MO)7 $4,183.67 Direct Debit (DDE)1 $835.00 Invoice (INV)7 $993.20 Void Payment (VD)1 ($1,708.00) Count Amount Check (CHK)32 $29,192.29 Program - Project Payments Deposits Public Housing - Family $20,753.58 $12,742.58 Total:$20,753.58 $12,742.58 Document Type Summary Document Type www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 2 of 2 7/16/2025 1:59:01 PM Printed by: Julie Bakken 17/49 50% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rental 5,750.00 33,702.00 39,500.00 (5,798.00)85% 3401.1 HUD Operating Subsidy 3,746.00 23,150.00 32,000.00 (8,850.00)72% 3401.2 HUD Capital Funds-Operations/Admin 7,108.00 7,000.00 108.00 102% 3401.3 HUD Capital Funds-Project 23,379.42 40,257.19 35,000.00 5,257.19 115% 3610 Interest Income (5673/0070)10.97 54.35 250.00 (195.65)22% 3690 Other Income (NSF, Late Fee, GR Support)106.00 496.00 21,000.00 (20,504.00)2% 3690.1 Water Charge Income 551.40 3,658.97 7,000.00 (3,341.03)52% 3690.2 Electric Charge Income 745.08 5,087.39 13,000.00 (7,912.61)39% 3690.3 Gas Charge Income 396.02 7,136.06 10,000.00 (2,863.94)71% 3690.31 Sewer Charge Income 633.61 4,179.31 7,500.00 (3,320.69)56% 3690.4 Other Tenant Charges (Maint)507.55 507.55 TOTAL INCOME 35,318.50 125,336.82 172,250.00 (46,913.18)73% EXPENSES 4130 Legal 2,000.00 2,000.00 0% 4140 Staff Training 229.00 4,400.00 4,171.00 5% 4150 Travel 35.00 35.00 300.00 265.00 12% 4171 Audit 2,400.00 2,400.00 100% 4190 Other Admin Expenses (Reports, Apps)3.00 343.65 200.00 (143.65)172% 4190.01 Manuals, Subscriptions 650.00 650.00 0% 4190.06 Advertising 200.00 200.00 0% 4190.2 Management Fees-OTC 25,000.00 25,000.00 100% 4310 Water 634.93 3,219.94 7,000.00 3,780.06 46% 4320 Electric 805.91 2,991.88 13,000.00 10,008.12 23% 4330 Gas 497.97 6,498.39 10,000.00 3,501.61 65% 4331 Sewer 720.13 3,690.00 7,500.00 3,810.00 49% 4420 Maintenance - Materials 145.78 2,384.35 6,000.00 3,615.65 40% 4430 Maintenance - Contracts 2,162.56 4,101.96 14,000.00 9,898.04 29% 4431 Garbage and Trash Removal Contracts 500.00 500.00 0% 4510 Insurance 30,964.60 28,500.00 (2,464.60)109% 4520 PILOT 3,330.00 3,330.00 0% 4521 Assessments 969.26 1,050.00 80.74 92% 4570 Collection Loss 500.00 500.00 0% 4580 Interest Expense (on Security Deposits)100.00 100.00 0% 4600 Capital Fund Projects 16,877.77 40,257.19 40,000.00 (257.19)101% 4610 Extraordinary Maintenance 3,500.00 3,500.00 0% TOTAL EXPENSES 21,883.05 123,085.22 170,130.00 47,044.78 72% SURPLUS 13,435.45 2,251.60 2,120.00 131.60 106% Otter Tail County Housing Redevelopment Authority Operating Statement Six Months Ending 06/30/2025 Program: Public Housing Project: Consolidated Percent of Year www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 1:32:08 PM Printed by: Julie Bakken 18/49 Period Amount Balance ASSETS 1111 Cash 17,160.92 104,062.79 1114 Tenant Security Deposit Cash 835.00 10,301.36 1122 A/R Tenants (2,844.55)8,021.00 1122.1 Allowance for Doubtful Accts (200.00) 1122.9 A/R Tenant Repayment Agreements (150.00) 1129 A/R Other 0.83 1400.5 Accumulated Depreciation (1,153,613.17) 1400.6 Land 32,990.31 1400.7 Buildings 1,661,869.49 TOTAL ASSETS 15,001.37 663,432.61 LIABILITIES AND SURPLUS LIABILITIES 2111.1 A/P Tenants 205.00 205.00 2114 Tenant Security Deposits 835.00 10,301.36 2119 Accounts Payable (418.66) 2119.1 A/P Admin 418.66 2240 Tenants Prepaid Rent 525.92 1,629.96 TOTAL LIABILITIES 1,565.92 12,136.32 SURPLUS 2700 Income/Expense Clearing Account (123,145.14) 2700 Income/Expense Clearing Account (Current Year) 13,435.45 2,251.60 2700 Income/Expense Clearing Account (Unclosed 2024) (432.04) 2802 Invested in Capital Assets, Net of Related Debt 679,466.94 2806 Unrestricted Net Position 93,154.93 TOTAL SURPLUS 13,435.45 651,296.29 TOTAL LIABILITIES AND SURPLUS 15,001.37 663,432.61 Otter Tail County Housing Redevelopment Authority Balance Sheet June 2025 Program: Public Housing Project: Consolidated www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 1:32:07 PM Printed by: Julie Bakken 19/49 Doc Num Voided Type 1017 No CHK 1018 No CHK 1019 No CHK 02-0000-2371-00-3 MAY2025 No INV 02-00002351-00-7 MAY2025 No INV 20118158 MAY 2025 No INV 20118160 MAY 2025 No INV 20118161 MAY 2025 No INV 20118163 MAY 2025 No INV 20118164 MAY 2025 No INV 20118165 MAY 2025 No INV Doc Num Voided Type 1237 No CHK 1239 No CHK 5487 No CHK 12458 No CHK 12460 No CHK 12471 No CHK 12472 No CHK 031521 No MO MAHUBE No CHK End of Report Total:20 $7,147.89 Tenant Accounts 9 $6,206.88 Tenant Accounting - 9 $6,206.88 Vendor Accounting - 3 $218.29 Vendor Accounting Total 11 $941.01 Transaction Type Summary Transaction Type Count Amount Vendor Accounting - 8 $722.72 Total:20 $7,147.89 Money Order (MO)1 $925.00 Invoice (INV)8 $722.72 Count Amount Check (CHK)11 $5,500.17 Project Summary Program - Project Payments Deposits Finding Home I LLC - $941.01 $6,206.88 Total:$941.01 $6,206.88 Document Type Summary Document Type 06/20/2025 Payment - Check Yes $2,143.90 Cleared: 9 $6,206.88 Uncleared: 0 $0.00 Total Deposits: 9 $6,206.88 06/30/2025 Payment - Check Yes $725.00 06/02/2025 Payment - Money Order Yes $925.00 06/02/2025 Payment - Check Yes $81.19 06/30/2025 Payment - Check Yes $66.03 06/02/2025 Payment - Check Yes $1,046.82 06/02/2025 Payment - Check Yes $725.00 06/02/2025 Payment - Check Yes $362.50 06/20/2025 Payment - Check Yes $131.44 Posted Deposits Control Date Document Description Cleared Amount Cleared: 4 $568.77 Uncleared: 7 $372.24 Total Payments: 11 $941.01 06/06/2025 ELECTRIC No $52.81 06/06/2025 ELECTRIC No $62.77 06/06/2025 ELECTRIC No $32.05 06/06/2025 ELECTRIC No $31.97 06/06/2025 ELECTRIC No $73.00 06/06/2025 ELECTRIC No $66.03 06/03/2025 SEWER/WATER Yes $206.09 06/03/2025 SEWER/WATER Yes $198.00 06/13/2025 PLUMBING SUPPLIES Yes $29.33 06/27/2025 9 V BATTERIES FOR DALTON No $53.61 Payment Date Document Description Cleared Amount 06/13/2025 GARBAGE Yes $135.35 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Finding Home I LLC Posted Payments www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 1:44:42 PM Printed by: Julie Bakken 20/49 50% Period YTD YTD Remaining Amount Amount Budget Budget INCOME 3110 Rent Revenue 3,300.00 19,239.00 30,000.00 (40,761.00)32% 3210 Replacement Reserves (Emergency/Updating)1,050.00 (2,100.00)0% 3610 Interest Income 1.22 6.66 6.66 3690 Other Income (NSF, Late Fees)124.00 2,550.00 (4,976.00)2% TOTAL INCOME 3,301.22 19,369.66 33,600.00 (47,830.34)29% EXPENSES 4130 Legal 750.00 1,500.00 0% 4150 Travel 16.80 (16.80) 4190 Administrative Expense (1.50)250.00 501.50 0% 4190.06 Advertising/Marketing/Printing 375.00 750.00 0% 4310 Water 216.09 1,074.38 1,500.00 1,925.62 36% 4320 Electric 193.39 390.73 500.00 609.27 39% 4331 Sewer 188.00 940.00 1,200.00 1,460.00 39% 4410 Maintenance-Labor 1,000.00 2,000.00 0% 4420 Maintenance-Materials 82.94 1,597.29 750.00 (97.29)106% 4430 Maintenance-Contracts 1,785.00 6,450.00 11,115.00 14% 4431 Garbage/Trash Removal 135.35 744.40 1,650.00 2,555.60 23% 4510 Insurance 5,031.22 2,500.00 (31.22)101% 4521 Property Taxes/Assessments 2,600.00 5,200.00 TOTAL EXPENSES 815.77 11,578.32 19,525.00 27,471.68 30% SURPLUS 2,485.45 7,791.34 14,075.00 (20,358.66)28% Otter Tail County Housing Redevelopment Authority Operating Statement Six Months Ending 06/30/2025 Program: Finding Home I LLC Project: Consolidated Percent of Year www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 11:52:35 AM Printed by: Julie Bakken 21/49 Period Amount Balance ASSETS 1111 Cash 5,137.72 29,416.89 1114 Tenant Security Deposit Cash 3,300.00 1122 A/R Tenants (2,352.54)73.00 1400.5 Accumulated Depreciation (2,266.28) 1400.6 Land 13,500.00 TOTAL ASSETS 2,785.18 44,023.61 LIABILITIES AND SURPLUS LIABILITIES 2114 Tenant Security Deposit 3,300.00 2240 Tenant Prepaid Rents 299.73 1,661.23 TOTAL LIABILITIES 299.73 4,961.23 SURPLUS 2700 Income/Expense Clearing Account 33,537.32 2700 Income/Expense Clearing Account (Current Year) 2,485.45 7,791.34 2700 Income/Expense Clearing Account (Unclosed 2024) (2,266.28) TOTAL SURPLUS 2,485.45 39,062.38 TOTAL LIABILITIES AND SURPLUS 2,785.18 44,023.61 Otter Tail County Housing Redevelopment Authority Balance Sheet June 2025 Program: Finding Home I LLC Project: Consolidated www.pha-web.com © 2025 Management Computer Services, Inc. (MCS) Page 1 of 1 7/16/2025 11:52:34 AM Printed by: Julie Bakken 22/49 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _August 6, 2025__ BOARD MEETING DATE AGENDA ITEM # 4A Amy Baldwin 07/31/2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 311 Adopt Special Benefit Levy for Taxes Payable 2026 PROPOSED REQUEST/JUSTIFICATION The proposed levy request for taxes payable in 2026 is $1,610,431. The levy is a crucial resource in accomplishing the HRA strategic initiatives; Strengthening Communities Initiative: “Create New Homes” and the Housing Stability Initiative: “Keeping People in Their Homes”. Based on the 2021 housing needs analysis, there is a significant need for affordable senior housing and work force housing, both owner occupied and rental. The HRA completed construction and began operating a 6-unit affordable senior housing development in Dalton in 2025 and is actively pursuing financing for constructing a similar project in New York Mills. An application has been submitted to the MN Housing Impact Fund program, which would support the construction of seven single family homes in three communities, Pelican Rapids, New York Mills and Parkers Prairie. The HRA administers important programs to enable households to access existing housing and to maintain the livability of their homes. The HRA Community Housing Investment Programs provide down payment assistance for new homebuyers and rehabilitation assistance for single family and multiple family owners. Rehabilitation programs serve to maintain the livability of housing units and preserve the overall market value of neighborhoods. The HRA collaborated with the City of Pelican Rapids to submit a Small Cities Development Program (SCDP) Grant Application for rehabilitation of owner occupied and commercial properties and was awarded $948,000. Staff is coordinating with the City of New York Mills on preapplication work for a potential 2026 SCDP application submission. Finally, the housing assessment also documented a shortage of rental units, and the Housing Choice Voucher and Public Housing programs provide an opportunity for lower income households to find housing. HRA work is done in partnership with communities. The HRA staff provides the technical capacity regarding housing initiatives as authorized by communities, and when authorized by the HRA Board, provides financial capacity to assist in accomplishing community housing needs. Staff recommends the Board adopt the Resolution as presented. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 7/31/2025 ATTACHMENT LIST: Resolution No. 311 FINANCIAL IMPLICATIONS: $1,610,431 BUDGETED: Pending YES NO FUNDING: Tax Levy 23/49 RESOLUTION NO. 311 APPROVE SPECIAL BENEFIT LEVY FOR TAXES PAYABLE IN 2026 FOR THE OTTER TAIL COUNTY HRA WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) is empowered by Minnesota Statute 469 to levy a Special Benefit Levy in an amount not to exceed .0185% of the estimated market value; and WHEREAS, the Authority has determined that $1,610,431 is necessary to effectuate the strategic initiatives for 2026; and NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That $1,610,431 is requested for the Otter Tail County HRA. 2. That the Executive Director is authorized to communicate the amount to the County Auditor in a timely fashion. 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 6th day of August 2025. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 24/49 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION August 6, 2025 BOARD MEETING DATE AGENDA ITEM #4C Tanya Westra 07/30/2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Approval of Resolution No. 312 Adopting Amendments to the Community Housing Improvement Program Policies and Procedures PROPOSED REQUEST/JUSTIFICATION Staff has reviewed policy and procedure guidelines for each of the five Community Housing Improvement Programs. Proposed amendments include: Overall clarification and clean up language Overall language update as to where HRA Special Benefit Levy funds can be utilized Down Payment Assistance – adjust income limit to 115% state AMI, addition of language as to whose income will be counted in household income calculation Affordable Rental Unit Construction and Rental Rehabilitation Programs – increase in rent limit from 60% to 70% of the maximum gross rent, using the most recently published MHFA table, renamed rent table to match how it is named on MHFA’s website, update required documentation at time of application Staff recommends the approval of Resolution No. 312 PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 07/30/2025 ATTACHMENT LIST: Resolution No. 312 Exhibit A – Down Payment Assistance Program Exhibit B – Emergency Home Repair Program Exhibit C – Owner-Occupied Housing Leverage Program Exhibit D – Affordable Rental Unit Construction Program Exhibit E – Rental Rehabilitation Program FINANCIAL IMPLICATIONS: None BUDGETED: YES NO FUNDING: Levy 25/49 RESOLUTION NO. 312 RESOLUTION ADOPTING AN AMENDMENT TO COMMUNITY HOUSING IMPROVEMENT PROGRAM POLICIES AND PORCEDURES WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) administers the Community Housing Improvement Programs that include the Down Payment Assistance, Emergency Housing Repair, Owner-Occupied Housing Leverage, Affordable Rental Unit Construction and Rental Rehabilitation Programs (the “Programs”); and WHEREAS, on June 17, 2021, the Authority Board of Commissioners approved Resolution No. 159 establishing policy and procedure governing the Programs; and WHEREAS, the Authority has determined that amendments to the current program requirements are necessary (the “Amendments”) in order to continue the mission of the Authority; and WHEREAS, the proposed amendment is contained in Exhibits A, B, C, D and E incorporated herein and attached hereto. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Down Payment Assistance Program Policy and Procedure as outlined in Exhibit A to this Resolution are hereby amended. 2. That the Emergency Home Repair Program Policy and Procedures as outlined in Exhibit B to this Resolution are hereby amended. 3. That the Owner-Occupied Housing Leverage Program Policy and Procedures as outlined in Exhibit C to this Resolution are hereby amended. 4. That the Affordable Rent Unit Construction Program Policy and Procedures as outlined in Exhibit D to this Resolution are hereby amended. 5. That the Rental Rehabilitation Program Policy and Procedures as outlined in Exhibit E to this Resolution are hereby amended. 6. That the Amendments are effective August 6, 2025. 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 6th day of August, 2025. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 26/49 EXHIBIT A OTTER TAIL COUNTY HOUSING TRUST FUND DOWN PAYMENT ASSISTANCE PROGRAM (DPA) TERMS 0% interest loan to be used for up to 6% of the purchase price, with a maximum deferred loan of $15,000. The loan must be repaid at the time of mortgage refinance or the term of the first mortgage whichever occurs first. ELIGIBLE CRITERIA Applicant households must be first-time homebuyers as defined by HUD. A first-time homebuyer is an individual who meets any of the following criteria: An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers). A single parent who has only owned with a former spouse while married. An individual who is a displaced homemaker and has only owned with a spouse. An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations. An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure. The homebuyer(s) must contribute 2% of the purchase price towards the down payment using their own funds. The borrower(s) must be preapproved for a 15 to 30-year fixed rate mortgage using a local mortgage lender. Home loans of a shorter duration will be considered on a case-by-case basis. A homebuyer education course is required of at least one borrower and the homebuyer(s) must supply a certificate of completion to the OTC HRA prior to approval of applicationclosing. The homebuyer(s) must use the home as their primary residence. Methodology to calculate income and assets will follow theHUD’s Housing Choice Voucher Program. Household gross annual income must not exceed 115% of state AMI, reviewed annually as published by HUD. Buyers may retain up to $30,000 of liquid assets, any assets above the $30,000 must be used towards the down payment before any funding will beis provided by Otter Tail County HRA Housing Trust Fund. Retirement accounts, such as IRA’s, are not considered liquid assets. The income of the following persons will be verified and included when considering household eligibility: Anyone who will have title to the home being purchased and signs the mortgage. The legal spouse of the mortgagor who will also reside in the home to be purchased. 27/49 Anyone expected to reside in the home to be purchased but who is not on the mortgage, title or deed. PROPERTY CRITERIA Property must be located within Otter Tail County and in areas where the Otter Tail County HRA is identified as the HRA District on the property tax statement. This would exclude the cities of Fergus Falls, Perham and a portion of Wadena. Projects that utilize funds originating from the Otter Tail County Housing and Redevelopment Authority’s Special Benefit Levy can only be used in areas where the Otter Tail County HRA has been identified as the HRA District on the property tax statement for the parcel to be purchased. Eligible dwellings must have an inspection and be deemed habitable by a certified home inspector. Otter Tail County HRA staff has the authority to deny funding based on the results of the home inspection. Eligible dwellings must be on a permanent foundation. ELIGIBLE ACTIVITIES/USES Down payment assistance for first-time homebuyer purchase of an existing home or a new home construction meeting property criteria. PROCEDURE Once the HRA receives the completed application and all required documentation, an income calculation will be conducted in a timely manner. The fully complete application and all required verifications of income, assets and homebuyer course certification must be received in the HRA office at least 30 days before the closing date. If a household is found to be ineligible, the Housing Coordinator will send a letter to the applicant notifying them that they arethat they are ineligible and the applicable policies as to why. They will also be notified that if they do not agree with the Housing Coordinator’s decision, thatdecision, they can request a review to be done by the Executive Director of the HRA or their designee. A review must be requested within 14 calendar days of the date the denial letter was sent to the applicant. If a review is not requested within the allotted time, the decision stands uncontested. If deemed eligible the applicant(s) will receive a letter stating that funds will be reserved in their name. The applicant(s) will then have 120 days to secure a contract on a property and execute a purchase-and-sale agreement. Additional updated income verification may be required to ensure the applicant household still meets eligibility criteria at the time of executed purchase agreement. The homebuyer(s) will be required to have the home inspected by a certified professional home inspector and submit the inspection report to the HRA. If the home inspection reveals any seriouslife threatening, health or safety defects or is deemed uninhabitable, the Otter Tail County HRA reserves the right to deny funding. Inspection requirements will follow HUD’s NSPIRE guidelines. In the event funding is denied based on the results of the home inspection, the applicant may secure a purchase contract on another property should the applicant still be within the 120-day pre-approval period. Upon approval of the home inspection, the homebuyer(s) will need to obtain a fully executed purchase and sale agreement from their first mortgage lender and provide documentation of the agreement to Otter Tail County HRA. The HRA will then send a commitment letter to the approved applicant household notifying them of their eligibility in the program. A copy of the letter will also be sent to the first mortgage lender. 28/49 The commitment letter will be valid for 90 days on an existing home or 180 days for on a new construction. The mortgage lender or title company must provide the required information for preparation of the loan documents for closing to Otter Tail County HRA at least 10 days prior to closing. The loan document and HRA portion of the down payment will be sent to the title company for execution prior to closing. The title company will be responsible for recording the document and providing a copy to the HRA. The homeowner(s) will be required to repay the loan in one lump sum as defined in the mortgage agreement at the time of refinancing or at term of the first mortgage, whichever occurs first. Upon repayment of the deferred loan, a satisfaction document will be executed and mailed to the homeowner(s). It is the responsibility of the homeowner(s) to record this document. DOCUMENTATION REQUIRED FROM APPLICANT(S) Completed application Verification of income (copy of 2 most recent paystubs received by all household members 18 years of age or older, 3rd party verification, award letters, etc.). Copy of most recent income tax return (2 years if self-employed). Pre-qualification letter from local bank or mortgage lender. Verification of liquid assets (most recent statements). Certificate of completion of a homebuyer education course. DOCUMENTATION PROVIDED BY OTC HRA Fair Housing Brochure Lead Based Paint Radon Information Data Privacy Notice 29/49 EXHIBIT B OTTER TAIL COUNTY HOUSING TRUST FUND EMERGENCY HOUSING REPAIR PROGRAM GUIDELINES (EHRP) FINANCING TERMS $20,000 Lifetime Benefit (per borrower household). If any household member listed on the application has received funding under any of the homeowner rehabilitation programs, the loan amount previously borrowed will be counted towards the lifetime maximum benefit. In cases where borrower households divorce, legally separate or are no longer residing together, previously borrowed amounts as well as the Lifetime Benefit maximum will be split equally between the parties and be taken into consideration to determine future eligibility. 0% Interest Deferred Loan that forgives at a rate of 10% per year for 10 years. If the Homeowner sells, moves out or otherwise conveys the property or converts it to a rental property, an amount will have to be repaid as stated in the Repayment Agreement within 30 days of the sale, conveyance, move out date or conversion. Example: A household signs the mortgage agreement on May 15, 2021 May 15, 2021 – May 14, 2022 100% Payable May 15, 2022 - May 14, 2023 90% Payable May 15, 2023 – May 14, 2024 80% Payable May 15, 2024 – May 14, 2025 70% Payable May 15, 2025 – May 14, 2026 60% Payable May 15, 2026 – May 14, 2027 50% Payable May 15, 2027 – May 14, 2028 40% Payable May 15, 2028 – May 14, 2029 30% Payable May 15, 2029 – May 14, 2030 20% Payable May 15, 2030 – May 14, 2031 10% Payable May 15, 2031 0% Payable HOUSEHOLD ELIGIBILITY CRITERIA Applicant household gross annual income must not exceed 80% AMI as established annually by HUD. Methodology to calculate income will follow the requirements of the Housing Choice Voucher Program. In cases where land surrounding the home to be improved exceeds 20 acres, the value of the home and immediate surrounding 20 acres will be excluded from the income calculation. All other acreage will be counted as an income or asset. Households whose income levels are 50% to 80% of the AMI, must first apply for other funding sources (bank loan, USDA Rural Development 504 Fund, etc.). If the household is not eligible for other funding, then the OTC HRA may proceed with an application. This could be verified with copies of loan rejection 30/49 letters. Homeowner(s) may also sign a Release of Information form so the HRA may obtain the required information directly from the other funding source(s). If any household member listed on the application has received funding under any of the homeowner rehabilitation programs, the loan amount previously borrowed will be counted towards the lifetime maximum benefit. All applicants are required to go through the verification process. Failure to comply with this requirement will result in denial of the application. PROPERTY CRITERIA Property must be located within Otter Tail County. County and in areas where the Otter Tail County HRA is identified as the HRA District on the property tax statement. This would exclude the cities of Fergus Falls, Perham and a portion of WadenaProjects that utilize funds originating from the Otter Tail County Housing and Redevelopment Authority’s Special Benefit Levy can only be used in areas where the Otter Tail County HRA has been identified as the HRA district on the property tax statement for the parcel to be improved upon. Home to be improved must be applicant’s only residence. Properties held in a trust or life estate not eligible. Properties being purchased on a contract for deed basis would be eligible so long as the contract holder agrees to the loan terms. All parties will be held accountable for loan repayment and must sign loan documents accordingly. Estimated Market Value as designated on the Property Tax Statement must not exceed $250,000. Mortgage payments and property taxes must be current. Home must be insured at time of application and for duration of deferred loan. Eligible dwellings must be habitable and on a permanent foundation. Work on mobile homes will not be permitted with the exception of well and septic repair or replacement. Properties can only have one active lien filed by the Otter Tail County HRA (or any other entity in which OTC Tax Levy funds were previously used to improve the property). If the home is converted to a rental property (seasonal or otherwise), the loan must be repaid within 30 days of conversion. ELIGIBLE REHAB ACTIVITIES The repair or replacement of failing or near failing systems (definition of near failing: system that is expected to fail within next 12 months) as determined by the Otter Tail County HRA Project Manager: Well Septic* Electrical Heating System Plumbing Water Heater Windows Roof Radon Mitigation Mobility Modifications** *Septic System Repair/Replacement is an eligible activity only when Otter Tail County Land and Resource Department does not have SSTS grants and/or loan funds available. **Modifications must benefit a physically disabled person who permanently resides in the household. The disability is expected to last at least 2 years. Requested modifications must need be directly linked to the 31/49 disabling condition (a ramp or widened doorways for someone who uses a mobility aid). Modifications are required to be of a permanent nature. PROCEDURE Once HRA receives completed application and all required documentation, an income calculation will be conducted in a timely manner. If a household is found to be ineligible, the Project Manager will send a letter to the applicant notifying them that they arethat they are ineligible and the applicable policies as to why. They will also be notified that if they do not agree with the Project Manager’s decision, thatdecision, they can request a review to be done by the Executive Director of the HRA or their designee. A review must be requested within 14 calendar days of the date the denial letter was sent to the applicant. If a review is not requested within the allotted time, the decision stands uncontested. If an applicant is deemed eligible, a property inspection will take place as soon as possible. This inspection will verify the request for emergency repairs or disability related modifications. A scope of work will be drafted and mailed to the homeowner. The homeowner will be responsible for obtaining 2 bids from licensed contractors. When Once bids have been received, they will be reviewed to ensure that they are complete. Generally, the responsible lower bid will be awarded the project so long as the bid is in line with average construction costs. (low bid, then try to submit change orders in hopes of obtaining more money). Once a contractor is selected, a contract will be drafted for both the homeowner(s) and contractor to sign. A title search will be conducted only to the extent of obtaining information on who owns the property to be rehabbed and confirmation of any outstanding liens. Repayment Agreement documents will be drafted and signed by the homeowner(s). A 3-day right of recission will be offered to the homeowner(s). If no recission is requested, a Proceed to Work Order will be issued to the contractor along with the construction contracts. At this point, work may begin. If escrowed owner funds are part of the project, they will be used first to pay contractor invoices. Once those funds are exhausted, then program funds may be used. Contractors may only bill twice during a project. When a partial invoice is received, an inspection will take place. In cases where this is not possible, contact will be made with the homeowner(s) to verify that the completed work listed on the invoice for has been completed. When final invoice has been received an inspection will commence. The homeowner(s) will have to sign a Final Inspection Form, indicating that all work has been done and the project is complete. At this time, final payment will be issued to the contractor and the Mortgage/Repayment Agreement will be recorded against the property. If the homeowner sells, vacates or otherwise conveys the property during the term of the deferred loan all or part of the borrowed amount must be repaid as stated in the Mortgage Agreement within 30 days of the sale, conveyance or move out date. If a homeowner refinances their property during the term of the deferred loan, Subordination requests will be approved only in cases where no cash out is taken. 32/49 Upon repayment or forgiveness of the deferred loan, a Satisfaction document will be executed and mailed to the homeowner. It is the responsibility of the homeowner to record this document. In cases where the property is sold and a title company is performing the closing, the Satisfaction will be mailed to the appropriate title company. The final file package will be saved electronically for the duration of the loan plus two years. After which, the documents will be deleted from the system. Legal name of property owner(s), property address, date of Repayment Agreement, summary of work done as well as final cost will be retained indefinitely. DOCUMENTS REQUIRED FROM APPLICANT(S) Completed application Copy of most recently filed tax return (2 years if self-employed) Documentation of household income (paystubs, 3rd party verification, current award letters, etc.) Documentation of assets (most recent statements) Bank Verification Form Copy of most recent mortgage statement Copy of Declarations Page for property insurance policy Walk Away Policy Data Privacy Form What to Expect Form Release of Information (when necessary) INFORMATION PROVIDED BY OTC HRA Fair Housing Brochure Copy of Walk Away Policy Copy of Data Privacy Form Copy of What to Expect Form 33/49 EXHIBIT C OTTER TAIL COUNTY HOUSING TRUST FUND RESIDENTIAL OWNER-OCCUPIED HOUSING LEVERAGE PROGRAM (OHLP) This loan fund may ONLY be used in combination with another funding source (i.e. DEED, MHFA, Federal Home Loan Bank, etc.) FINANCING TERMS 0% Interest Repaid at time of refinance or sale of property $7,000 maximum Recording fee will be rolled into loan HOMEOWNER ELIGIBILITY CRITERIA Homeowner(s) must meet all criteria for other funding sources in addition to: Applicant household gross annual income must not exceed 80% AMI as established annually by HUD. Methodology to calculate income will follow the requirements of the Housing Choice Voucher Program. In cases where land surrounding the home to be improved exceeds 20 acres, the value of the home and immediate surrounding 20 acres will be excluded from the income calculation. All other acreage will be counted as an income or asset. All applicants are required to go through the verification process. Failure to comply with this requirement will result in denial of the application. PROPERTY CRITERIA Home must meet all eligibility criteria for other funding source in addition to: Property must be located within Otter Tail County and in areas where the Otter Tail County HRA is identified as the HRA District on the property tax statement. This excludes the cities of Fergus Falls, Perham and a portion of Wadena. Projects that utilize funds originating from the Otter Tail County Housing and Redevelopment Authority’s Special Benefit Levy can only be used in areas where the Otter Tail County HRA has been identified as the HRA district on the property tax statement for the parcel to be improved upon. Mortgage payments and property taxes must be current. Home must be insured at time of application and for duration of deferred loan. Eligible dwellings must be habitable and on a permanent foundation. Properties can only have one active lien filed by the Otter Tail County HRA (or any other entity in which OTC Tax Levy funds were previously used to improve the property). ELIGIBLE ACTIVITIES/USES 34/49 Eligible uses will follow the guidelines as established by the primary funding source which could include but is not limited to: MN Department of Employment & Economic Development, Minnesota Housing Finance Agency and Federal Home Loan Bank. PROCEDURE Once HRA receives completed application and all required documentation, an income calculation will be conducted in a timely manner. If a household is found to be ineligible, the Project Manager will send a letter to the applicant notifying them that they arethat they are ineligible and the applicable policies as to why. They will also be notified that if they do not agree with the Project Manager’s decision, that they can request a review to be done by the Executive Director of the HRA or their designee. A review must be requested within 14 calendar days of the date the denial letter was sent to the applicant. If a review is not requested within the allotted time, the decision stands uncontested. If an applicant is deemed eligible, a property inspection will take place as soon as possible. This inspection will verify the request for emergency repairs or disability related modifications. A scope of work will be drafted and mailed to the homeowner. The homeowner will be responsible for obtaining 2 bids from licensed contractors. When Once bids have been received, they will be reviewed to ensure that they are complete. Generally, the lowrest responsible bid will be awarded the project so long as the bid is in line with average construction costs. Should the homeowner want to use the higher bid, they will be expected to pay the diƯerence. This cost will be due at time of “closing” and be placed in escrow. Once a contractor is selected, a contract will be drafted for both the homeowner(s) and contractor to sign. A title search will be conducted only to the extent of obtaining information on who owns the property to be rehabbed and confirmation of any outstanding liens. Mortgage/Repayment Agreement documents will be drafted and signed by the homeowner(s). A 3-day right of recission will be oƯered to the homeowner(s). If no recission is requested, a Proceed to Work Order will be issued to the contractor along with the construction contracts. At this point, work may begin. If escrowed owner funds are part of the project, they will be used first to pay contractor invoices. Once those funds are exhausted, then program funds may be used. Contractors may only bill twice during a project. When a partial invoice is received, an inspection will take place. In cases where this is not possible, contact will be made with the homeowner(s) to verify that the completed work listed on the invoice for has been completed. When final invoice has been received an inspection will commence. The homeowner(s) will have to sign a Final Inspection Form, indicating that all work has been done and the project is complete. At this time, final payment will be issued to the contractor and the Mortgage/Repayment Agreement will be recorded against the property. If the homeowner sells, vacates or otherwise conveys the property during the term of the deferred loan all of the borrowed amount must be repaid as stated in the Mortgage Agreement within 30 days of the sale, conveyance or move out date. 35/49 If a homeowner refinances their property during the term of the deferred loan, Subordination requests will be approved only in cases where no cash out is taken or if cash taken out is to renovate the previously improved property. Upon repayment of the deferred loan, a Satisfaction document will be executed and mailed to the homeowner. It is the responsibility of the homeowner to record this document. In cases where the property is sold and a title company is performing the closing, the Satisfaction will be mailed to the appropriate title company. The final file package will be saved electronically for the duration of the loan plus two years. After which, the documents will be deleted from the system. Legal name of property owner(s), property address, date of Repayment Agreement, summary of work done as well as final cost will be retained indefinitely. DOCUMENTS REQUIRED BY APPLICANT Completed application Copy of most recently filed tax return (2 years if self-employed) Documentation of household income (paystubs, 3rd party verification, current award letters, etc.) Documentation of assets (most recent statements) Bank Verification Form Copy of most recent mortgage statement Copy of Declarations Page for property insurance policy Walk Away Policy Data Privacy Form Release of Information (when necessary) What to Expect Form INFORMATION PROVIDED BY HRA Fair Housing Brochure Radon Information Copy of Walk Away Policy Copy of Data Privacy Form Copy of What to Expect Form 36/49 EXHIBIT D OTTER TAIL COUNTY HOUSING TRUST FUND AFFORDABLE RENTAL UNIT CONSTRUCTION (ARUC) TERMS 0% Interest Repaid monthly over 10 years $12,500 per unit 2-8 units Gross rents cannot exceed the 60 70% rent limit for Otter Tail County as established by MHFA’s Multifamily Tax Subsidy Project Program Housing Tax Credit Program for the term of the loan (using Table N the most recently published table for units placed in service on or after 04/01/2021). The recording fee of $46 will be rolled into the loan. ELIGIBLE CRITERIA Building owners agree to complete an forms annually to certify gross rent amounts survey to confirm gross rents for duration of loan. Current and/or projected rent as well as other payment collections must support actual and anticipated building expenses which would include a potential loan payment. PROPERTY CRITERIA Property must be located within Otter Tail County. and in areas where the Otter Tail County HRA is identified as the HRA District on the property tax statement. This would exclude the cities of Fergus Falls, Perham and a portion of Wadena. Projects that utilize funds originating from the Otter Tail County Housing and Redevelopment Authority’s Special Benefit Levy can only be used in areas where the Otter Tail County HRA has been identified as the HRA district on the property tax statement for the parcel to be improved upon. Mortgage and property taxes must be current. Building must be insured from beginning of construction or at time of application. ELIGIBLE ACTIVITIES/USES Seasonal Property construction is not an eligible use. Funds can only be used for construction of the building and/or actual rental unit(s). Necessary utility connections are permitted. Parking lots, sidewalks and landscaping are not eligible uses. PROCEDURE Once HRA receives completed application and all required documentation, a review of rental income and building expenses as well as other required documentation will be conducted in a timely manner. If an applicant is found to be ineligible, the Project Manager will send a letter to notify them that they are ineligible and the applicable policies as to why. They will also be notified that if they do not agree with the Project Manager’s decision, that they can request a review to be done by the Executive Director of the HRA or their designee. A review must be requested within 14 calendar days of the date the denial letter was 37/49 sent to the applicant. If a review is not requested within the allotted time, the decision stands uncontested. Prior to determining eligibility, the building owner/developer must provide the HRA with a copy of the building plan, bids obtained for the project from licensed contractors, permits required for construction and documentation of other funding sources that will be used to finance the remainder of the project. Once a contractor is selected, a contract will be drafted for both the building owner and contractor to sign. A title search will be conducted only to the extent of obtaining information on who owns the property to be rehabbed and confirmation of any outstanding liens. Mortgage/Repayment Agreement documents will also be signed by the building owner(s). A 3-day right of recission must be offered. If no recission is requested, a Proceed to Work Order will be issued to the contractor along with the construction contracts. At this point, work may begin. Contractors may only bill twice during a project (an exception could be made for a large project). When a partial invoice is received, an inspection will take place. In cases where this is not possible, contact will be made with the building owner(s) to verify that the items listed on the invoice have been completed. When final invoice has been received an inspection will take place. The building owner(s) will have to sign a Final Inspection Form, indicating that all work has been done and the project is complete. At this time, final payment will be issued to the contractor and the Mortgage/Repayment Agreement will be recorded against the property. Loan payments will be due on the 1st day of each month with a grace period to the 5th day of each month. A late fee of 10% of the monthly loan payment will be assessed to the account. If a payment is not received by the due date, a letter will be sent to the building owner notifying them of their late payment along with the late fee assessment. Upon repayment of the loan, a Satisfaction will be executed and mailed to the building owner. It is the responsibility of the building owner to record this document. In cases where the property is sold and a title company is performing the closing, the Satisfaction will be mailed to the appropriate title company for recording. DOCUMENTS NEEDED Application Rent roll for previous 12 months Pro Forma that includes cash flow information for 15 years Sources and Uses Statement Copy of mortgage statement and property insurance policy Confirmation/documentation of other funds used for project Copy of mortgage statement and/or property insurance policy Building Plan Copy of permits (only if required) Copy of bids from licensed contractors Walk Away Policy Data Privacy sign off Fair Housing sign off form(s) What to Expect Form DOCUMENTATION PROVIDED 38/49 Fair Housing Lead Based Paint Radon Information Walk Away Policy Copy of What to Expect Form 39/49 EXHIBIT E OTTER TAIL COUNTY HOUSING TRUST FUND RENTAL REHABILITATION LOAN (RR) LOAN TERMS and LIMITS 2% interest repaid in monthly installments over 10 years $20,000 SF limit $12,500 per unit MF 2-8 units Building owner must contribute 25% of the project’s total cost Gross rents must not exceed the 60 70% limit as established by MHFA’s for the HTC programMultifamily Tax Subsidy Project Program for the term of the loan (reviewed annually, Table N for rental units placed in service on or after 04/01/2021 using the most recently published table) for the duration of the loan term. Recording fee ($46) for Mortgage document will be rolled into loan. ELIGIBILITY CRITERIA Building owners agree to complete an annual surveyforms annually to certify confirm gross rents for duration of loan. Rent and other payment collections must support building expenses plus a potential loan payment. PROPERTY CRITERIA Property must be located within Otter Tail County. and in areas where the Otter Tail County HRA is identified as the HRA District on the property tax statement. This excludes the cities of Fergus Falls, Perham and a portion of Wadena. Projects that utilize funds originating from the Otter Tail County Housing and Redevelopment Authority’s Special Benefit Levy can only be used in areas where the Otter Tail County HRA has been identified as the HRA district on the property tax statement for the parcel to be improved upon. Mortgage and property taxes must be current. Building must be insured and remain insured for duration of loan. Rental property must be on a permanent foundation. Mobile Homes that are more than 10 years old are not permitted. Seasonal rental property is not eligible. ELIGIBLE ACTIVITIES/USES Improvements to the interior and exterior of the building. Replacement of existing utility lines are an eligible activity. For rural rental properties, well repair/replacement and septic* repair/replacement are 40/49 permitted. No parking lots, landscaping, sidewalks. Ineligible activities could be funded with the owner’s portion of the project. *Septic System Repair/Replacement is an eligible activity only when Otter Tail County Land and Resource Department does not have SSTS grants and/or loan funds available. PROCEDURE Once HRA receives completed application and all required documentation, a review of rental income and building expenses as well as other required documentation will be conducted in a timely manner. If an applicant is found to be ineligible, the Project Manager will send a letter to notify them that they are ineligible and the applicable policies as to why. They will also be notified that if they do not agree with the Project Manager’s decision, that they can request a review to be done by the Executive Director of the HRA or their designee. A review must be requested within 14 calendar days of the date the denial letter was sent to the applicant. If a review is not requested within the allotted time, the decision stands uncontested. If an applicant is deemed eligible, a property inspection will take place as soon as possible. A scope of work will be drafted and mailed to the building owner. The owner will be responsible for obtaining 2 bids from licensed contractors. Once bids have been received, they will be reviewed to ensure that they are complete. Generally, the lower bid will be awarded the project so long as the bid is in line with average construction costs (low bid, then try to submit change orders in hopes of obtaining more money). Once a contractor is selected, a contract will be drafted for both the building owner and contractor to sign. A title search will be conducted only to the extent of obtaining information on who owns the property to be rehabbed and confirmation of any outstanding liens. Mortgage/Repayment Agreement documents will also be signed by the building owner(s). A 3-day right of recission must be offered. If no recission is requested, a Proceed to Work Order will be issued to the contractor along with the construction contracts. At this point, work may begin. Escrowed owner funds will be used first to pay contractor invoices. Once those funds are exhausted, then program funds may be used. Contractors may only bill twice during a project. When a partial invoice is received, an inspection will take place. In cases where this is not possible, contact will be made with the building owner(s) to verify that the items listed on the invoice have been completed. When final invoice has been received an inspection will take place. The building owner(s) will have to sign a Final Inspection Form, indicating that all work has been done and the project is complete. At this time, final payment will be issued to the contractor and the Mortgage/Repayment Agreement will be recorded against the property. Loan payments will be due on the 1st day of each month with a grace period to the 5th day of each month. A late fee of 10% of the monthly loan payment will be assessed to the account. If a payment is not received by the due date, a letter will be sent to the building owner notifying them of their late payment along with the late fee assessment. 41/49 Upon repayment of the loan, a Satisfaction will be executed and mailed to the building owner. It is the responsibility of the building owner to record this document. In cases where the property is sold and a title company is performing the closing, the Satisfaction will be mailed to the appropriate title company for recording. DOCUMENTS NEEDED Application Rent roll for previous 12 months Copy of mortgage statement and property insurance policy Confirmation/documentation with regard to availability of owner funds Copy of bids from 2 licensed contractors Walk Away Policy Data Privacy sign off Lead Paint and Fair Housing sign off form(s) What to Expect Form DOCUMENTATION PROVIDED Fair Housing Lead Based Paint Radon Information Walk Away Policy Copy of What to Expect Form 42/49 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION August 6, 2025 BOARD MEETING DATE AGENDA ITEM #4D Amy Baldwin 07/31/2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Approval of Resolution No. 313 Approving Community Housing Investment Programs to be Administered through the Otter Tail County Housing Trust Fund PROPOSED REQUEST/JUSTIFICATION In June 2021, the Otter Tail County Board of Commissioners adopted an ordinance to create the Otter Tail County Housing Trust Fund. This ordinance names the HRA as the administrator. To date, the HRA has committed $542,385 to the Housing Trust Fund. The HRA’s Community Housing Investment Programs (CHIP) align with the Trust Fund ordinance and support Otter Tail County’s Strategic Plan of “Keeping people in their homes” and “Creating new homes”. In spring 2025, staff reviewed with the HRA Board a proposal to begin administering the existing Community Housing Investment Programs through the Housing Trust Fund versus having each program as a standalone budgeted program. With direction from the HRA Board, staff has been working on updating policy and procedure for each individual program under CHIP to add clarifying language and ensure that it is in compliance with the Trust Fund ordinance. Staff recommends the approval of Resolution No. 313 authorizing Community Housing Investment Programs to be administered through the Housing Trust Fund. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 07/312025 ATTACHMENT LIST: Resolution No. 313 FINANCIAL IMPLICATIONS: None BUDGETED: YES NO FUNDING: Levy 43/49 RESOLUTION NO. 313 RESOLUTION APPROVING COMMUNITY HOUSING INVESTMENT PROGRAMS TO BE ADMINISTERED THROUGH OTTER TAIL COUNTY HOUSING TRUST FUND WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) administers the Community Housing Investment that includes Down Payment Assistance, Emergency Home Repair, Owner-Occupied Housing Leverage, Affordable Rental Unit Construction and Rental Rehabilitation Programs (the “Programs”); and WHEREAS, on June 17, 2021, the Authority Board of Commissioners approved Resolution No. 159 establishing policy and procedure governing the Programs; and WHEREAS, on June 27, 2021, the Otter Tail County Board of Commissioners adopted an ordinance to create the Otter Tail County Housing Trust Fund (the “Trust Fund”); and WHEREAS, the ordinance identifies the Authority as the administrator of the Trust Fund; and WHEREAS, the intent of the Programs aligns with the purpose of the Trust Fund; and WHEREAS, the Authority has determined that the Programs shall be administered through the Trust Fund; NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That effective August 7th the Programs will be administered through the Trust Fund. 2. That the Executive Director is directed to prepare the appropriate documents to administer the Programs through the Trust Fund. 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 6th day of August 2025. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 44/49 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION August 6, 2025 BOARD MEETING DATE AGENDA ITEM #4E Amy Baldwin July 30, 2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Approval of Resolution No. 314 Authorizing Transfer of Funds to the Otter Tail County Housing Trust Fund PROPOSED REQUEST/JUSTIFICATION On November 18, 2024, the HRA Board of Commissioners approved the fiscal year 2025 budget. This budget includes committed funds to the Down Payment Assistance, Emergency Home Repair, Owner-Occupied Housing Leverage, Affordable Rental Unit Construction and Rental Rehabilitation Programs. Program 2025 Program Budget Year to Date Spent/Committed Remaining Balance Down Payment Assistance $75,000 $66,000 $9,000 Emergency Home Repair Program $100,000 $1,695.46 $98,304.54 Owner-Occupied Leverage Program (FKA ROHL) $56,000 $0 $56,000 Affordable Rental Unit Construction Program $100,000 $0 $100,000 Rental Rehabilitation Program $50,000 $0 $50,000 $381,000 $67,695.46 $313,304.54 As of July 30, 2025, the Rental Rehabilitation checking account has an approximate balance of $237,250. This account was established prior to the administration of programs being transferred to Otter Tail County in August 2021. Currently, this account is used to collect monthly payments on outstanding rent rehab loans. Staff recommendations are as follows: As these programs will be administered through the Otter Tail County Housing Trust Fund, any 2025 unspent funds be transferred to the Trust Fund account. Transfer $237,000 of the Rental Rehabilitation checking account balance to the Housing Trust Fund. Monthly Rental Rehabilitation loan payments continue to be deposited into the Rental Rehabilitation checking account with an annual balance transfer to the Housing Trust Fund until the loans have been repaid. Repayments of outstanding loans for the Down Payment Assistance, Emergency Home Repair, Owner Occupied Leverage Programs be transferred to the Housing Trust fund on an annual basis. Staff is requesting approval of Resolution No. 314, authorizing the above recommendations. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 07/30/2025 ATTACHMENT LIST: Resolution No. 314 FINANCIAL IMPLICATIONS: Program Funds would be transferred from the General Revolving Account to the Housing Trust Fund BUDGETED: YES NO FUNDING: Special Benefit Levy & Repaid Loans 45/49 RESOLUTION NO. 314 RESOLUTION AUTHORIZING TRANSFER OF FUNDS TO THE OTTER TAIL COUNTY HOUSING TRUST FUND WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the "Authority") has adopted Resolution No. 313 to administer the Community Housing Investment Programs (the “Programs”) through the Otter Tail County Housing Trust Fund (the “Trust Fund”); and WHEREAS, the Authority allocated funds in its 2025 annual budget for the administration of the Programs; and WHEREAS, the Authority has identified unspent and uncommitted funds in the 2025 allocation for the Programs; and WHEREAS, the Authority holds a separate bank account for the Rental Rehabilitation Program. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the HRA staff is authorized to transfer funds from the Rental Rehabilitation bank account in the amount of $237,000 to the Otter Tail County Housing Trust Fund. 2. That the HRA staff is authorized to transfer funds from its General Revolving bank account in the amount of $313,300 to the Otter Tail County Housing Trust Fund. 3. The Executive Director is hereby authorized, empowered, and directed to do all other acts and things as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolutions. 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 6th day of August 2025. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 46/49 218-998-8730 ottertailcounty.gov housing@ottertailcounty.gov OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY 2026 ANNUAL PLAN I. Key components to the 2026 Annual Plan. a. Proposed changes to the Housing Choice Voucher Program Administrative Policy. b. Proposed changes to the Public Housing Admissions and Continued Occupancy Policy. c. Proposed activity for the Public Housing program Capital Fund. In 2026, capital improvements will include continued replacements of decks and light fixtures. Replacement of cabinetry, countertop and flooring as needed will take place at time of unit turn. II. Goals and Objectives The HRA Board adopted two strategic initiatives beginning in 2023: 1) Housing Stability Initiative – “Keep People In Their Homes”; and 2) Strengthening Communities Initiative – “Create New Homes”. The goals for the Housing Stability Initiative include the following: a. Maintain High Performer Status for the Scattered Site Public Housing Program. b. Complete necessary capital improvements to the properties to maintain and improve the condition of housing units. c. Adopt an updated Administrative and Continued Occupancy Policy for the Public Housing Program. d. Partner with area agencies to offer all rental assistance participants programs and information on budgeting, caring for rental property and homeownership. e. Maintain Standard Performer status for the Housing Choice Voucher Program, while strengthening procedures and accuracy to obtain High Performer status with 2026 file actions. f. Adopt an updated Administrative Plan aimed at utilizing all federal funds as efficiently as possible. g. Seek funding for additional rental assistance programs to serve target special populations including but not limited to foster youth, veterans, people without a home, and others as identified by the county. h. Administer the Otter Tail County Housing Trust Fund to rehabilitate existing owner occupied and rental properties. i. Administer the Small Cities Development Program Grant to complete owner occupied and commercial rehabilitation in Pelican Rapids. j. Apply to MN DEED on behalf of the City of New York Mills for the Small Cities Development Program Grant for owner occupied, rental and/or commercial rehabilitation. k. Continue programs to enable homeownership including down payment assistance and first-time home buyer programs. l. Own, operate and manage six affordable senior housing units in Dalton. The goals for the Strengthening Communities Initiative – “Create New Homes” a. Administer the Otter Tail County Housing Trust Fund for activities such as rental assistance, down payment assistance, rehabilitation, and/or new construction. b. If adequate funding is secured, begin construction of six affordable senior housing units in New York Mills. c. If awarded funding through MN Housing, construct and sell single family homes in Pelican Rapids, Parkers Prairie and New York Mills d. Formalize a program to acquire, rehabilitate/demolish existing homes or rental buildings and to identify vacant lots to facilitate the construction of new housing. 47/49 Proposed Administrative Plan Changes for the Housing Choice Voucher Program 1. Interim reexamination will be calculated when earned income increases by $200 or more per month. Current policy states that no interim will be conducted when the family reports an increase in their earned income between annual recertifications, regardless of the amount of the increase and regardless of whether there was a previous decrease since the family’s last annual reexamination. Proposed Admission and Continued Occupancy Plan Changes for the Public Housing Program 1. Interim reexamination will be calculated when earned income increases by $200 or more per month. Current policy states that no interim will be conducted when the family reports an increase in their earned income between annual recertifications, regardless of the amount of the increase and regardless of whether there was a previous decrease since the family’s last annual reexamination. This list does not include regulatory changes required by HUD. 48/49 Capital Fund Five Year Action Plan 2022-2026 MN 177 Otter Tail County HRA $7,500.00 $7,000.00 $16,716.00 $0.00 $0.00 $0.00 Year 2 2023 Year 4 2025 Year 5 2026Year l 2022 Year 3 2024 Operations $7,000.00 Unit Update $14,519.12 $7,602.88 $0.00 $0.00 $0.00 $12,500.00 $41,622.00 Radon Testing & Mitigation Replace Water Heater - Underwood Total Replace Furnace/Air conditioner - Underwood Replace Light Fixtures Replace deck, stairs and railings $43,716.00 $7,000.00 $15,596.00 $0.00 $0.00 $0.00 $7,500.00 $12,500.00 $42,596.00 $7,000.00 $9,000.00 $0.00 $12,500.00 $7,000.00 $9,500.00 $0.00 $6,000.00 $20,000.00 $0.00 $0.00 $42,500.00$42,500.00 $2,500.00 $24,000.00$0.00 $0.00 49/49