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HomeMy WebLinkAboutHousing & Redevelopment Authority - HRA-Packet-02-04-2026 Supporting Documents - 02/04/2026OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN February 4, 2026 | 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, January 7, 2026 B. Joint CDA-HRA Work Session Meeting Notes, January 7, 2026 C. Housing Choice Voucher Rental Assistance Program for December 2025 D. Community Housing Investment Program & Housing Trust Fund for December 2025 E. Public Housing and Senior Housing for December 2025 F. Check Report and Financial Reports - None 4. New Business A. Resolution No. 330 Accepting Grant and Interim Loan Awards from Minnesota Housing B. CDA/HRA Tax Forfeited Land Development Policy C. Independent Contractor Agreement with Barbara Dacy, LLC 5. Old Business A. March HRA Board Meeting Date: Monday, March 9, 2026 @ 12:45 pm 6. Discussion A. Impact Fund Project Review 7. Executive Director Report A. Community Development & Housing Annual Report B. 2026+ Housing Strategy C. Federal Update 8. General Discussion – Topics by Commissioners 9. Adjourn 1/27 2/27 The Otter Tail County HRA Board of Commissioners Met for a regular meeting on January 7, 2026 at 1:36 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 Megan Myers 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 1. CALL TO ORDER Chairperson Johnson called the meeting to order at 1:36 pm. 2. APPROVAL OF AGENDA 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made by Jeff Ackerson, second by Lee Rogness to approve the January 7, 2026 Agenda and the Consent Agenda without additions or changes. Motion passed unanimously. 4. NEW BUSINESS A Board Officers for Fiscal Year 2026. Motion made by Jeff Ackerson, second by Megan Myers to nominate the Board Officers for Fiscal Year 2026 as follows: Wayne Johnson, Chairperson; Leland Rogness, Vice Chairperson; and Kurt Mortenson, Secretary. Motion passed unanimously. B. Legal Publication for Fiscal Year 2026 Motion made by Kurt Mortenson, second by Lee Rogness to approve the Fergus Falls Daily Journal as the Legal Publication for Fiscal Year 2026. Motion passed unanimously. C. Board Member Per Diem for Fiscal Year 2026 Motion made by Lee Rogness, second by Kurt Mortenson to approve the per diem of $75 plus the current IRS mileage rate. State Statute 469.011 provides that elected officials may receive the daily payment only if they do not receive payment for public service. Motion passed unanimously. D. Day, Time, Location for the next 12 months The 2026 meeting dates have been set for February 4, March 4, April 1, May 6, June 3, July 1, August 5, September 2, October 7, November 4, December 2, and January 6, 2027. All meetings begin at 12:45 OTTERTAIL COUNTY • MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 218-998-8730 @ OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER @ ottertailcounty.gov LIVE YOUR best life HERE. _____ ...---------7 3/27 Pg. 2 pm and will be held at the Government Services Center in the Otter Tail Lake Room. The March 4th meeting will need to be rescheduled as a majority of the commissioners are unable to attend. Motion made by Megan Myers, second by Jeff Ackerson to approve the dates listed above except for the March 4th date as it will need to be determined. Motion passed unanimously E. Conflict of Interest Acknowledgement A copy of Minnesota Statute 469.098 Conflict of Interest was provided to each commissioner. Signatures for the 2026 Annual Conflict of Interest Statement were received by all commissioners. 5. NEW BUSINESS – None 6. OLD BUSINESS – None 7. DISCUSSION – Amy Baldwin, HRA Executive Director stated that The Lincoln Apartments will be holding an Open House in Battle Lake next Thursday, January 15, 3-4:30pm. 8. EXECUTIVE DIRECTOR REPORT A. Department of Revenue Payment Amy Baldwin, HRA Executive Director stated the State had sent a SWIFT Payment which our HRA Accountant, Julie Bakken followed up with:  It was a State Ag Homestead Credit.  It should have been received since 2021, was previously sent to the Wadena HRA.  Total $148,051.01.  Added to our cash balance. 9. GENERAL DISCUSSION – TOPICS BY COMMISSIONERS 10. ADJOURNMENT At 2:07 pm a motion was unanimously carried to adjourn the meeting. ________________________________________________________ ___________________ Secretary/Clerk Date 4/27 NOTES OF THE JOINT WORK SESSION BETWEEN OTTER TAIL COUNTY COMMUNITY DEVELOPMENT AGENCY AND HOUSING AND REDEVELOPMENT AUTHORITY OF OTTER TAIL COUNTY Government Services Center, County Board Room 515 W Fir Ave, Fergus Falls, MN 56537 January 7, 2026 Call to Order The Joint Work Session between the Otter Tail County Community Development Agency and the Housing and Redevelopment Authority convened at 12:02 pm, Wednesday, January 7, 2026. Attendance was as follows: CDA HRA Present in person Present via Tech Absent Board Members: Jeff Ackerson CDA/HRA X Dena Johnson CDA X Wayne Johnson HRA X Val Martin CDA X Kurt Mortenson CDA/HRA X Megan Myers HRA X Betsy Roder CDA X Leland Rogness HRA X Heidi Samuelson CDA X Bob Schempp Jr. CDA X Dave Schornack CDA X Sean Sullivan CDA X Staff: Amy Baldwin, CDA Director/HRA Executive Director X Tanya Westra, HRA Housing Program Supervisor X Sarah Schake, CDA Project Manager X Julie Bakken, HRA Accountant X Paula Grunewald, HRA Administrative Assistant X Introductions were made and Amy Baldwin, Community Development Director (CDA) and Housing and Redevelopment (HRA) Director reviewed and discussed:  2025 Review of Housing Activities: Community Outreach and Support; Pinewood Estates – Pelican Rapids; Senior Housing – North Fields of Dalton; Small Cities Development Program – Pelican Rapids.  Community Investment Efforts: OTC Works - Empowered Worker Program; Childcare: Community driven project support in Ottertail and PioneerCare; Family Resource Centers  Tax Forfeiture Draft Policies  2026 + Beyond o What’s known: Seven single family home builds - funded (2026-28) in three communities: Pelican Rapids, New York Mills and Parkers Prairie; Small Cities Development Program in Pelican Rapids; Possible New York Mills application; Launching Bring it Home Rent Voucher Program; Continuing administration of existing housing programs. o What’s ahead: Westridge Mall (unsure); Continue affordable senior housing efforts in New York Mills and Perham (in discussion phase). What are we missing? We currently focus on 1) single family, 2) senior housing and 3) market rate/workforce rental OTTERTAIL COUNTY· MINNESOTA 5/27 opportunities. Community Outreach and Support: Community focused housing events - Perham Housing Symposium scheduled for March 12; Creating action events; Strategic Partner Summit; Community staff meetings – intentional outreach; Continue grant/funding applications.  Where do we go from here: Work plans will be presented at the next monthly CDA and HRA meetings. Community outreach meetings are important. 6/27 12/31/2025 1/1/2026 Difference 40,133.44$ 37,560.17$ -$2,573.27 78 74 -4 34,993.00$ 32,418.00$ *HAP Adjustment *Utility Adjustment *Portability Tranactions (Out)4,883.00$ 4,883.00$ 61.00$ 61.00$ *Portablilty Admin Fee (Paid)198.17$ 198.17$ (1.73)$ 12/31 1/1 New Admissions 0 End Participation 4 Vouchers Issued 2 0 Current HCV Participant Ports-Out Paid 4 4 Ports Out Pending 2 0 Ports In Pending 1 1 12/31/2025 Waiting List/To Date 141 Applications in Progress 12 Vouchers issued 1 From Waitlist & Port In ELI%100%YTD Monthly Trend Report*Units Available Units Leased Leasing %Budget %Per Unit $ July 2025 144 83 62.7% 81.3% 480.66$ August 2025 144 83 62.1% 80.7% 508.71$ September 2025 144 79 61.5% 80.2% 496.78$ October 2025 144 80 61.2% 80.0% 546.28$ November 2025 144 79 60.8% 79.8% 517.21$ December 2025 144 78 60.1% 79.2% 514.53$ *Leasing % and Budget % based on cumulative activity during calendar year Per Unit $ is rolling three month average *Portability Utility Reimbursement Portability Adjustments OTC Section 8 Housing Choice Voucher Rental Assistance Program Summary of Actions December 31, 2025 Program Total Financial Transaction Paid This Month* UML (Unit Months Leased or # of Households) *HAP & Utility Reimbursement Payments &, OTTE:R 'TAIL ~, COUNTY -MINNESOTA 218-998-8730 ® HOUSINIG AND REDEVIEL.OPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Go,v,etn men,t Services Center 500 Wes:t Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov 7/27 COMMUNITY HOUSING INVESTMENT PROGRAMS (CHIP) BOARD REPORT December 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 Down Payment Assistance (DPA) 6 6 SCDP: Reuse Rent Rehab – RR 1 Affordable Rental Unit Construction - ARUC 1 1 Housing Trust Fund Emergency Home Repair Program (EHRP) On-Going Down Payment Assistance (DPA) 10 3 N/A N/A 9 On-Going Rent Rehab – RR On-Going Affordable Rental Unit Construction - ARUC 1 1 1 1 On-Going Residential Owner- Occupied Leverage (ROHL) 1 1 1 PELICAN RAPIDS 09/30/2027 SCDP: Commercial 4 1 4 1 10 SCDP: Homeowner 11 1 11 5 1 17 218-998-8730 @ HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (!) EOU/\L HOUSING OPPORTUNITY @ ottertailcounty.gov 8/27 PUBLIC HOUSING BOARD REPORT December 2025 Rents Payable $ 6,279 Rents Collected $ 5,717* Total Negative Rents $ 0 Negative Rents Paid $ 0 Late Fees Charged $ 268 Late Fees Collected $ 223** Number of Units Paying Flat Rent 4 Fiscal Year ELI *One tenant not paid in December, but paid in full in January **One late fee not paid in December, but paid in full in January WAITING LIST as of 1/08/2026 Community 2 Bedroom 3 Bedroom 4 Bedroom Pelican Rapids 18 20 N/A Underwood 9 8 3 Henning 7 4 2 New York Mills 11 15 3 VACANCIES UNIT VACATED LEASE SIGNED 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 G:r EOUJ\L HOUSING OPPORTUNITY @ ottertailcounty.gov 9/27 AFFORDABLE SENIOR HOUSING BOARD REPORT December 2025 Rents Payable $ 4,225.00 Rents Collected $ 3,380.64* Late Fees $ 0 Late Fees Collected $ 0 WAITING LIST as of 1/08/2026 Community 1 Bedroom 2 Bedroom Dalton 2 0 VACANCIES UNIT VACATED LEASE SIGNED 138 Court Street (2br) 130 Court Street (2br) * Unit 130 vacated 12/4/25 * Contacted other Agencies * Ad in local paper * Incentive for tenants * For rent sign in yard * Flyer's up throughout neighboring communities *one rent was pro-rated for move-out and another tenant has rent paid by another agency and that rent was not paid in December but we do have that rent now in January-pd in full. 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 (!) EOUI\L HOUSING OPPORTUNITY @ ottertailcounty.gov 10/27 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION February 4, 2026 BOARD MEETING DATE AGENDA ITEM #4A Tanya Westra 01/23/2026 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Approval of Resolution No.330 Accepting Grant and Interim Loan Awards for the Community Homeownership Impact Fund In July 2025, the HRA submitted three applications to MN Housing for Impact Fund Value Gap Grant and Interim Loan Funds to construct and sell seven homes in the county. Communities identified for the applications were Parkers Prairie, New York Mills and Pelican Rapids. In December 2025, staff was notified that all three applications were awarded. Award totals were not in the notification letter, but the December 2025 MN Housing Board Packet suggests the following: Community # of Homes Interim Loan Funds Applied Interim Loan Funds Tentatively Awarded Value Gap Grant Applied Value Gap Tentatively Awarded Parkers Prairie 3 $1,200,000 $776,847 $840,450 $840,450 New York Mills 2 $900,000 $262,241 $562,100 $562,100 Pelican Rapids 2 $900,000 $582,636 $561,000 $561,000 Interim Loan Funds act as a construction loan. We are not required to use them, but they would be available should we choose to do so. The interest rate on the loan has not been made available yet but would only be payable on the amount of loan funds accessed. The HRA would earn a developer fee that equals 10% of the total development cost for each home constructed and sold up to the requested amount listed in the application. Staff is in the process of completing due diligence items required by MN Housing. Once all documents are submitted and approved, MN Housing will email the contract for execution. Staff recommends the approval of Resolution No. 330. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 01/26/2026 ATTACHMENT LIST: A. Resolution No. 330 FINANCIAL IMPLICATIONS: Developer Fee paid to HRA BUDGETED: YES X NO FUNDING: MN Housing COMMENTS 11/27 RESOLUTION NO. 330 RESOLUTION ACCEPTING GRANT AND INTERIM LOAN AWARDS FROM MINNESOTA HOUSING WHEREAS, Minnesota Housing has awarded Community Homeownership Impact Funds (“the Funds”) to the Otter Tail County Housing and Redevelopment Authority (the “HRA”) for the construction and sale of single-family homes; and WHEREAS, the Funds are in the form of Interim Loan Financing as well as a Value Gap Grant; and WHEREAS, the HRA accepts the grant and loan awards from Minnesota Housing for the Funds; and WHEREAS, the HRA has been awarded funding to construct and sell three homes in Parkers Prairie; and WHEREAS, the HRA has been awarded funding to construct and sell two homes in New York Mills; and WHEREAS, the HRA has been awarded funding to construct and sell two homes in Pelican Rapids. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Housing and Redevelopment Authority of Otter Tail County accepts funding from Minnesota Housing and authorizes the following individuals to sign the contract and execute any documents necessary: a. Amy Baldwin, Executive Director, abaldwin@ottertailcounty.gov, 218-998-8050 b. Tanya Westra, Housing Program Supervisor, twestra@ottertailcounty.gov, 218-998-8732 c. Mitchell Harry, Project Manager, mharry@ottertailcounty.gov, 218-998-8736 is authorized to request funds from Minnesota Housing Upon the motion of ________________________, seconded by _________________________, and passed on a ___________________ vote, the above resolution is hereby adopted by the Housing and Redevelopment Authority of Otter Tail County Board of Commissioners. Adopted this 4th day of February 2026. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 12/27 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION February 4, 2026 BOARD MEETING DATE AGENDA ITEM #4B Amy Baldwin 01/30/2026 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 331 Approving the Otter Tail County Housing and Redevelopment Authority Tax Forfeited Land Development Policy and Recommendation for Approval of the Otter Tail County, Minnesota Tax Forfeited Land Policy Staff has developed the Otter Tail Countty, Minnesota Tax Forfeited Land Policy to guide County Commissioners when considering requests for reductions in the cost of tax-forfeited parcels. The policy establishes procedures for determining when a cost reduction is appropriate and the extent of such reduction. Under the policy, a potential buyer requesting a cost reduction must submit an application and required documentation to the Community Development and Housing Department. Staff will review the application and determine whether it should be processed through the HRA or the CDA, based on the type and location of the proposed project. When a city is the applicant, staff will review the application, but it will not be processed through either agency. The proposed project must either eliminate blight or be used for the development of affordable housing. Once this determination is made, staff will present the project to the appropriate board, which will either deny the application or recommend approval. Projects recommended for approval will then be forwarded to the County Board for final consideration and action. The Otter Tail County HRA/CDA Tax Forfeited Land Development Policy provides developers and staff clear procedures and timelines as to the process of applying for and ultimately obtaining a tax forfeited parcel at a reduced cost. Developers will complete an application in which they will clearly describe their proposed project to ensure that it corrects blighted conditions and/or will be developed for affordable housing. The policy addresses the responsibilities of the HRA/CDA and the developer. Staff recommends the HRA board provide a recommendation to the County Board for the approval of the County policy and as approval of Resolution No. 331 related to the Tax Forfeited Land Development Policy. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 01/30/2026 ATTACHMENT LIST: Resolution No. 331 Draft policies FINANCIAL IMPLICATIONS: collection of application fee BUDGETED: X YES NO FUNDING: applicant COMMENTS 13/27 RESOLUTION NO. 331 RESOLUTION APPROVING THE OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY TAX FORFEITED LAND DEVELOPMENT POLICY WHEREAS, Otter Tail County (the “County”) administers the sale of tax forfeited land (the “Land”) located within its jurisdiction; and WHEREAS, the County will periodically offer the Land for sale to the public through auction; and WHEREAS, Governmental Subdivisions, including the Otter Tail Housing and Redevelopment Authority (the “Authority”), may acquire the Land for the purpose of correcting blighted conditions or for the development of affordable housing; and WHEREAS, the Authority has developed the Otter Tail County Housing and Redevelopment Authority Tax Forfeited Land Development Policy (the “Policy”); and WHEREAS, the Policy promotes opportunities for development and returns the Land back to productive use; and WHEREAS, the intent of the Policy aligns with the goal of the Otter Tail County Long Range Strategic Plan; and NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Otter Tail County Housing and Redevelopment Authority Tax Forfeited Land Development Policy is hereby approved and adopted; and 2. That the Executive Director is directed to prepare and execute all documents necessary to administer the Policy. 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 4th day of February, 2026. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 14/27 1 OTTER TAIL COUNTY, MINNESOTA TAX FORFEITED LAND POLICY INTENT AND PURPOSE It is the intent of the Tax Forfeited Land Policy (the “Policy”) to provide County Administration with guidelines with regard to the disposition of tax forfeited lands upon request by a Governmental Subdivision. Government Subdivision is defined in the same way as the term “political subdivision” is defined for property tax purposes. This definition includes the following local taxing districts: counties, cities, townships, school districts, and special taxing districts, including HRAs and EDAs. The purpose of the Policy is to: 1. Return tax forfeited land to productive use and thereby increase Otter Tail County’s tax base; 2. Promote opportunities for development that align with local community need; 3. Provide opportunities to correct blighted conditions or develop affordable housing. PROCESS Initial Public Sale. The Otter Tail County Auditor-Treasurer’s Office administers the disposition of tax-forfeited lands. These properties default to the State of Minnesota ownership after three years of non-payment of taxes from the judgment year. Property owners have an opportunity to repurchase their forfeited property subject to certain requirements. If parcels are not repurchased, the County Auditor-Treasurer’s Office will conduct an initial public auction to the highest bidder. Any tax forfeited lands not sold at the public sale can be added to the next public auction. Governmental Subdivision Request. From time to time, however, certain non-conservation tax forfeited lands may provide opportunities to accomplish the purposes of this Policy. The Governmental Subdivision shall submit to the County Auditor-Treasurer and the County Board, a written request that certain tax forfeited lands be withheld from a subsequent public auction for six months (the “Request”). The repurchase time frame for the property owner(s) of the affected tax forfeited land must have expired, and a Confession of Judgement has not been issued. The Request must also include a completed Application to Acquire Tax Forfeited Property that contains sufficient information conforming to the requirements of Minnesota State Statute 282.01(a)(d), which include 1) the specific plans for correcting the blighted conditions or developing affordable housing, 2) the specific law or laws that empower it to acquire real 15/27 2 property in furtherance of the plans; and 3) a preliminary development financial analysis that a reduced sale price at twenty-five (25) percent of the current year estimated market value (as determined by the County Assessor), is in the public interest because it is necessary to provide an incentive to correct the blighted conditions and/or the reduced price will lead to the development of affordable housing. Determination by the County Board. The County Board shall review the Request within forty- five (45) days and determine if the Request is consistent with and furthers the purposes of this Policy. The County Board shall adopt a resolution rejecting or approving the Request and/or directing the County Auditor-Treasurer to withhold the property from further public auctions. 16/27 3 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY / COMMUNITY DEVELOPMENT AGENCY TAX FORFEITED LAND DEVELOPMENT POLICY The Otter Tail County HRA/CDA, acting on behalf of Otter Tail County, has established the following procedures to apply to the sale of certain tax forfeited lands (the “Properties”): A. Application: The Otter Tail County HRA/CDA (“OTC HRA/CDA”) may solicit proposals from interested parties interested in the purchase and development of Properties (the “Developers”) or will consider proposals received from Developers without solicitation. The OTC HRA may require that interested Developers submit a proposal in the form of an “Application to Acquire Tax Forfeited Property” (the “Application”). Applications may be for affordable housing or for the elimination or prevention of blight on the Property. B. Relocation: If a Property contains an occupied building, relocation costs may apply. The Developer will be responsible for any relocation costs. The OTC HRA/CDA will clarify whether relocation costs will apply and assist the Developer to estimate the amount of payment required. C. Acquisition Price: Properties will be made available to Developers at a discounted price targeted at 25% of the estimated market value. “Estimated market value” means the current-year market value of the Property as determined by the Otter Tail County Assessor. D. Due Diligence: The Developer will have 45 days to complete its due diligence, including title review, and to confirm its intent to move forward with the approval process for the Application or to withdraw its Application. Developers will be responsible for all costs of obtaining marketable title for the Property. E. Contract: When an Application has been submitted and confirmed, OTC HRA/CDA staff will negotiate a purchase and development contract (the “Contract”) with the Developer. OTC HRA/CDA staff will require the following from the Developer before presenting the Contract to the OTC HRA/CDA Board for approval: 1. Contract signed by the Developer. 2. Acquisition price (“Acquisition Price”): The Acquisition Price will be targeted at 25% of the estimated market value (as determined by the County Assessor), plus recording fees and costs. 3. A non-refundable administrative fee of $500 per application payable to either the OTC HRA or CDA. 4. A check in the amount of any outstanding special assessments levied against the Property, payable to the County (the “Special Assessments Payment”). F. HRA/CDA Board Approval: Upon receipt of the items listed above, staff will seek OTC HRA/CDA Board approval of the Contract. If approved, the OTC HRA/CDA will execute the Contract contingent upon County approval, then proceed to request conveyance of the Property from the County. If the OTC HRA/CDA Board denies the Application and Contract, the Acquisition Price, , and Special Assessments Payment will be refunded to the Developer. The OTC HRA/CDA may then solicit other proposals for the Property or will release its hold on the Property. G. County Approval: Once the OTC HRA/CDA Board approves the Contract, staff will send the approving resolution, the Developer’s Application and the Acquisition Price to the County Board, requesting conveyance of the Property to the OTC HRA/CDA. Following approval by the County and acquisition 17/27 4 of the Property from the State of Minnesota, the OTC HRA/CDA will schedule closing with the Developer. 1. Closing: Once the County has recorded the deed for the Property and the OTC HRA/CDA has received the recorded deed, the OTC HRA/CDA will schedule a closing with the Developer. At the closing, the Developer will be responsible to pay all closing costs and any additional fees charged by the County. 2. Post-Closing Obligation: After closing, the Developer will be solely responsible for all property maintenance and construction costs. The Contract will require that improvements must be completed within 12 months after closing or as negotiated. 3. Failure to Perform: If the Developer fails to complete the improvements on the Property within 12 months after closing or as negotiated, no additional Property may be acquired by the Developer through the Tax Forfeited Hold Sale Procedure until the default is cured. If the default is not cured in accordance with the terms of the contract, the property title reverts back to the OTC HRA/CDA. 18/27 INDEPENDENT CONTRACTOR AGREEMENT INDEPENDENT CONTRACTOR: Barbara Dacy, LLC STREET ADDRESS: 13201 40th Street South CITY, STATE, AND ZIP: Afton, Minnesota 55001 (hereinafter referred to as "INDEPENDENT CONTRACTOR") agrees to provide to the OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY, (hereinafter referred to as “HRA”), INDEPENDENT CONTRACTOR services as specified in Exhibit A in accordance with the terms and conditions contained in this Agreement. 1. Term. INDEPENDENT CONTRACTOR shall coordinate their work efforts and maintain a liaison with the Board of Directors, or with a duly appointed representative. Unless terminated in accordance with provisions of Paragraph 9 hereof, these services shall be performed during the period stated in Exhibit A. During such term, INDEPENDENT CONTRACTOR shall make herself available and will use their best efforts to perform those services. 2. Payment For Services Rendered. For providing services as defined herein, HRA shall pay INDEPENDENT CONTRACTOR in accordance with the terms stated in Exhibit A. Under no circumstances shall INDEPENDENT CONTRACTOR be deemed to have earned or be entitled to any fee, expenses, commission, bonus, or other compensation for services hereunder, except as expressly provided in Exhibit A. 3. INDEPENDENT CONTRACTOR's Warranties. 3.1 INDEPENDENT CONTRACTOR hereby warrants that no other party has exclusive rights to their services in the specific areas described herein and that INDEPENDENT CONTRACTOR is in no way compromising any rights or trust relationships between any other party and INDEPENDENT CONTRACTOR, or creating a conflict of interest, or any possibility thereof, for INDEPENDENT CONTRACTOR or for HRA. INDEPENDENT CONTRACTOR further warrants that all services provided hereunder will be performed in accordance with all applicable Federal, State, or local laws and executive orders. INDEPENDENT CONTRACTOR agrees to indemnify and hold HRA harmless from any and all claims of other parties for breach of these warranties. 3.2 INDEPENDENT CONTRACTOR represents and warrants to HRA with respect to all works of authorship, if any, created by their in the performance of services under this Agreement ("Work Product") that (a) INDEPENDENT CONTRACTOR's retention by HRA and the creation, use, or distribution of the Work Product does not and will not violate any non-compete, confidentiality, or other contract binding on INDEPENDENT CONTRACTOR or infringe on any patent, copyright, trade secret, or other proprietary right of any third party; (b) the Work Product is and will 19/27 be original; and (c) the Work Product shall conform strictly and in all respects to specifications and prevailing standards of quality and workmanship. 4. Indemnity. INDEPENDENT CONTRACTOR shall indemnify and hold HRA harmless from and against any and all liability, loss, damage, cost, or expense (including reasonable attorney fees) arising out of or relating to INDEPENDENT CONTRACTOR's performance of the services identified in Exhibit A, or which HRA may incur or sustain by reason of any malpractice, negligence, or other legal liability of INDEPENDENT CONTRACTOR. 5. Nature Of Relationship. INDEPENDENT CONTRACTOR herein is an independent contractor and will not act as HRA’s agent, nor shall be deemed an employee of HRA for the purposes of any employee benefit programs, or be deemed an employee of HRA for purposes of income tax withholding, FICA taxes, unemployment benefits, workers compensation benefits, or otherwise. INDEPENDENT CONTRACTOR shall not enter into any agreement or incur any obligations on HRA’s behalf, or commit HRA in any manner without HRA’s prior written consent. As an independent contractor, INDEPENDENT CONTRACTOR understands and agrees that they are solely responsible for the control and supervision of the means by which the services defined in Exhibit A are completed. Such means are subject to INDEPENDENT CONTRACTOR's discretion, which discretion must be exercised consistent with the goal of completing the services on schedule and in accordance with the terms of this Agreement. INDEPENDENT CONTRACTOR also understands that no training is required, nor will any training be provided by HRA. Any supplies, which in the opinion of INDEPENDENT CONTRACTOR may be necessary to perform the services required, shall be the responsibility of INDEPENDENT CONTRACTOR. 6. Work for Hire. All Work Product, if any, created as a result of INDEPENDENT CONTRACTOR's performance hereunder, including but not limited to designs, programs, videos, presentations, pamphlets, etc., is "work made for hire" under United States copyright law and shall be owned exclusively by HRA. If and to the extent INDEPENDENT CONTRACTOR may, under copyright or other applicable law, be entitled to claim any ownership interest in the Work Product, INDEPENDENT CONTRACTOR hereby transfers, grants, conveys, assigns, and relinquishes exclusively to HRA all of INDEPENDENT CONTRACTOR's right, title, and interest, including the copyright, in and to the Work Product. INDEPENDENT CONTRACTOR will promptly upon the request of HRA execute such assignments and other documents and take such other action as HRA may reasonably request to convey to HRA full ownership of any and all Work Product. 7. Nondisclosure Covenant. Except as permitted or directed by HRA, INDEPENDENT CONTRACTOR shall not during the term of retention or thereafter divulge, furnish, or make accessible to anyone or use in any way any confidential, health, trade secret, or proprietary information of HRA, which they have acquired or become acquainted with during the retention of INDEPENDENT CONTRACTOR by HRA, whether developed by INDEPENDENT CONTRACTOR or by others. INDEPENDENT CONTRACTOR acknowledges that the above- described knowledge or information constitutes a unique and valuable asset of HRA and represents a substantial investment by HRA, and that any disclosure or other use of such knowledge or information, other than for the sole benefit of HRA, would be wrongful and would cause irreparable harm to HRA. INDEPENDENT CONTRACTOR will refrain from any acts or 20/27 omissions that would reduce the value of such knowledge or information to HRA. The foregoing obligations of confidentiality shall not apply to any knowledge or information the entirety of which is now published or subsequently becomes generally publicly known, other than as a direct or indirect result of the breach of this Agreement by INDEPENDENT CONTRACTOR or a breach of a confidentiality obligation owed to HRA by any third party. 8. Injunctive Relief. INDEPENDENT CONTRACTOR agrees that it would be difficult to compensate HRA fully for damages for any violation of the provisions of Paragraphs 7 of this Agreement. Accordingly, INDEPENDENT CONTRACTOR specifically agrees that HRA shall be entitled to temporary and permanent injunctive relief to enforce Paragraph 7 of this Agreement and that such relief may be granted without the necessity of proving actual damages. This provision with respect to injunctive relief shall not, however, diminish the right of HRA to claim and recover damages in addition to injunctive relief. 9. Termination. Without limiting any rights which HRA may have for reason of any default by INDEPENDENT CONTRACTOR, HRA reserves the right to terminate this Agreement in whole or in part by written notice to INDEPENDENT CONTRACTOR upon any breach of any provision hereof by INDEPENDENT CONTRACTOR. Aside from any continuing work, HRA’s sole obligation in the event of such termination shall be to reimburse INDEPENDENT CONTRACTOR for services actually performed by INDEPENDENT CONTRACTOR up to the effective date of such termination. HRA also reserves the right to terminate this Agreement without cause at any time following the Agreement's effective date upon thirty (30) days' notice. Such termination shall result in payment to INDEPENDENT CONTRACTOR as set forth in Exhibit A. Any termination shall be effective in the manner and upon the date specified in said notice and shall be without prejudice to any claims which HRA may have against INDEPENDENT CONTRACTOR. Termination shall not relieve INDEPENDENT CONTRACTOR of their continuing obligations under this Agreement, particularly the requirements of Paragraphs 6, 7 and 8 above. INDEPENDENT CONTRACTOR reserves the right to terminate this Agreement without cause at any time following the Agreement's effective date upon written notification of thirty (30) days in advance. Termination shall not relieve the HRA of its obligations to compensate the INDEPENDENT CONTRACTOR as set forth in Exhibit A under this Agreement for services rendered through the effective date of the termination. 10. Invoicing and Payment. INDEPENDENT CONTRACTOR shall submit invoices to the HRA Board President based on the payment schedule in Exhibit A. Invoices shall reference this Agreement and the time period of authorized performance involved. Invoices submitted by INDEPENDENT CONTRACTOR must be approved by the HRA Board President or his/her appointed representative. 11. Dispute Resolution. Before bringing any action or legal proceeding of any kind with respect to this Agreement, INDEPENDENT CONTRACTOR will promptly notify HRA (at its address for written communications shown in Exhibit A to this Agreement) of any dispute they have with HRA under this Agreement. No action or legal proceeding of any kind will be brought by INDEPENDENT CONTRACTOR against HRA until: (1) both parties conduct a study of the dispute or disagreement; (2) a meeting between the parties is held to try to resolve the dispute; and 21/27 (3) if, after such meeting takes place, one of the parties sends a letter to the other stating it is unable to resolve the matter in dispute. 12. Conflict Of Interest. INDEPENDENT CONTRACTOR agrees that they will not, while performing under this Agreement, create a conflict of interest which may prove to be detrimental to the interests of HRA. The responsibility to notify HRA of any potential conflict of interest rests with INDEPENDENT CONTRACTOR. HRA agrees to promptly evaluate and notify INDEPENDENT CONTRACTOR of its decision. 13. Subcontracting and Assignments. It is understood and agreed that this Agreement is for the rendering of consulting services by INDEPENDENT CONTRACTOR who is acting as an independent contractor. INDEPENDENT CONTRACTOR may not subcontract any part or all of the services to be provided without the prior written consent of HRA. All covenants, stipulations, and promises in this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns, heirs and legal representatives. 14. Disclosure. INDEPENDENT CONTRACTOR acknowledges and agrees that it may be necessary for HRA to disclose the fact of INDEPENDENT CONTRACTOR's retention, the duties performed, and the compensation paid should there be proper inquiry from such a source as an authorized U.S. government agency or should HRA believe it has a legal obligation to disclose such information, and INDEPENDENT CONTRACTOR hereby authorizes any such disclosures. 15. General Provisions. 15.1 Waiver. No failure on the part of either party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy granted hereby or by any related document or by law. 15.2 Governing Law. This Agreement shall be deemed to be a contact made under the law of the State of Minnesota and for all purposes it, plus any related or supplemental documents and notices, shall be construed in accordance with and governed by the law of such state. 15.3 Amendments. This Agreement may not be and shall not be deemed or construed to have been modified, amended, rescinded, canceled, or waived in whole or in part, except by written instruments signed by the parties hereto. 15.4 Entire Agreement. This Agreement, including Exhibit A attached hereto and made a part hereof, constitutes and expresses the entire agreement and understanding between the parties. All previous discussions, promises, representations and understandings between the parties relative to the subject matter of this Agreement, if any, have been merged into this document. Notwithstanding the foregoing, nothing in this Agreement shall be deemed to supersede any prior confidentiality 22/27 or similar agreement between the parties, which the parties acknowledge shall remain in full force and effect. 15.5 Severability. To the extent that any provision of this Agreement shall be determined to be invalid or unenforceable, the validity and enforceability of the remainder of such provision and of this Agreement shall be unaffected. If any particular provision of this Agreement shall be adjudicated to be invalid or unenforceable, the parties specifically authorize the tribunal making such determination to edit the invalid or unenforceable provision to allow this Agreement, and the provisions thereof, to be valid and enforceable to the fullest extent allowed by law and/or public policy. IN WITNESS WHEREOF, the parties execute this Agreement as follows: OTTER TAIL COUNTY HOUSING & REDEVELOPMENT AUTHORITY ________________________________________________ By: Amy Baldwin Title: Otter Tail County Housing and Redevelopment Authority Executive Director Date: ________________________________________________ By: Barbara Dacy, LLC Date: 23/27 OTTER TAIL COUNTY HOUSING & REDEVELOPMENT AUTHORITY EXHIBIT A AGREEMENT FOR INDEPENDENT CONTRACTOR SERVICES INDEPENDENT CONTRACTOR NAME: Barbara Dacy, LLC OTTER TAIL COUNTY HOUSING & REDEVELOPMENT AUTHORITY REPRESENTATIVE: Amy Baldwin Executive Director TERMS OF AGREEMENT I. TERM: This Agreement is effective from March 1, 2026 through February 28, 2027 II. SERVICES TO BE RENDERED: INDEPENDENT CONTRACTOR will: A. Provide housing program and project support services for the Otter Tail County HRA, including but not limited to: 1. Work with staff to identify possible partnership and funding opportunities that further the goals and activities of the Otter Tail County HRA. This could include support of submitting funding applications to Minnesota Housing and/or other state agencies, nonprofit organizations, or other entities. 2. Work with staff to create new programs as determined necessary and/or assist with revisions to existing programs. 3. Provide technical support to Executive Director and Housing Program Supervisor. The aforementioned services may be adjusted by HRA. Necessary and appropriate interventions and timelines will be discussed and determined using a team approach. III. COMPENSATION A. COMPENSATION FOR INDEPENDENT CONTRACTOR SERVICES: INDEPENDENT CONTRACTOR shall be paid $65.00/hour for a term of one year, with 24/27 payments to occur monthly upon submission of monthly invoices. Total compensation will not exceed $10,000 for the term of the contract. B. The compensation includes payment for services, incidental expenses, and mileage reimbursement, except as outlined in the following Section III.C. C. These services are anticipated to be provided on a remote basis. If in-person attendance is required prior to April 15, 2026 and/or after November 1, 2026, mileage reimbursement from Afton to Fergus Falls and the return trip will be invoiced at the IRS rate for the month the mileage is accrued. If overnight stays are required prior to April 15, 2026 and/or after November 1, 2026, the actual cost of lodging up to $75/night will be included on the monthly invoice. 25/27 OTTER TAIL COUNTY CDA & HRA 2026+ HOUSING STRATEGY PROJECT ROLES CONVENER SUPPORTIVE CAPACITY FUNDING PROVIDER PROJECT LEAD/ DEVELOPER PRIORITY HOUSING TYPES Single-family entry level Market rate workforce rental Affordable senior rental PROJECT PLANNING KNOWN PROJECTS • Pelican Rapids, Parkers Prairie, and New York Mills single-family supported by MN Housing grant award LIKELY PROJECTS • Tax forfeit policy for acquisition, rehab, resale projects and house relocation projects o Fergus Falls-Vine Street tax forfeit home • New York Mills senior triplexes ON THE RADAR • Small footprint homes • Multi-family workforce projects o Pelican Rapids • Affordable senior rental o Perham • Westridge Mall redevelopment • Acquisition and preservation of naturally occurring affordable housing (NOAH) units o Preservation of USDA Section 515 properties • Innovative financing and partnerships PLANNED OUTREACH • Local housing events o Perham Housing Symposium • Check-ins with city staff o City zoning challenges o Redevelopment opportunities • Community housing studies analysis for coordination of needs to planned projects * ~ It O O O II 26/27 Local housing events Perham Housing Symposium Check-ins with city staff City zoning challenges Redevelopment opportunities Acquisition and preservation of naturally occurring affordable housing (NOAH) units Preservation of USDA Section 515 properties Small footprint homes Multi-family workforce projects Pelican Rapids Single-family supported by MN Housing grant award Pelican Rapids, Parkers Prairie & New York Mills Westridge Mall redevelopment New York Mills senior triplexes Tax forfeit policy for acquisition, rehab, resale projects Fergus Falls-Vine Street tax forfeit home Affordable senior rental Perham = Known & confirmed project = Likely project = On the radar project • m\l ii. <I) * <I) ~ 0 ~ ~ ~ ~ l(o O ojl <I) ~ •• i •• ~ 27/27