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HomeMy WebLinkAboutHousing & Redevelopment Authority - HRA-Packet-02-13-2026 Supporting Documents - 02/13/2026OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING AGENDA Government Services Center, Dead Lake Room 515 West Fir Avenue, Fergus Falls, MN February 13 | 7:45 am Commissioners may participate in the meeting by interactive technology. 1.Call Meeting to Order and Roll Call – Chairperson 2.Approval of Agenda 3.New Business: A.Resolution No. 332 Approving Housing Trust Fund Loan to The Lincoln LLC 4. Adjourn 1 of 5 2 of 5 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _February 13, 2026 __ BOARD MEETING DATE AGENDA ITEM #3A Amy Baldwin February 11, 2026 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Approval of Resolution No. 332 Approving a Housing Trust Fund Loan to The Lincoln LLC PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED The Lincoln LLC is a ten (10) unit workforce housing development located in Battle Lake, MN. Construction is nearly complete with landscaping items remaining. The work will be completed in the spring by a local landscaping company. Five of the ten units have been leased with three of those households already residing in the building. Final disbursement of grant funds from an award from MN Housing will not be available until landscaping and the grant close out process have been completed. It was not anticipated that the final disbursement from MN Housing would be held until the completion of landscaping as the Developer was paying that cost with his own funds. The requested action is authorizing a short-term loan in the amount of $165,000, the amount of MN Housing’s final disbursement. This project falls within the rent limits of the Affordable Rental Unit Construction Loan Program administered under the Housing Trust Fund. Loan limits for the program are $100,000 repaid over 10 years at 0% interest with rent limits in place for the duration of loan. This project is utilizing other funds that restrict rent until 2050 (unless repaid sooner). While the requested loan exceeds the typical program cap, the proposed short-term repayment structure, combined with long-term rent restrictions already in place, presents an opportunity to support a workforce housing development that aligns with the mission and intent of the Housing Trust Fund. EXECUTIVE DIRECTOR DATE: Amy Baldwin 02/11/2026 ATTACHMENT LIST: Exhibit A FINANCIAL IMPLICATIONS: $165,000 BUDGETED: X YES NO FUNDING: Housing Trust Fund COMMENTS 3 of 5 RESOLUTION NO. 332 RESOLUTION APPROVING HOUSING TRUST FUND LOAN TO THE LINCOLN LLC WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) administers the Housing Trust Fund (the “Fund); and WHEREAS, the Affordable Rental Unit Construction Loan Program (the “Program”) is a program administered under the Fund; and WHEREAS, the purpose of the Program is to promote the construction of rental housing units in Otter Tail County; and WHEREAS, The Lincoln LLC (the “LLC”) has constructed ten (10) units of workforce housing in Battle Lake, Minnesota; and WHEREAS, certain funding sources utilized by the LLC require compliance with rent limits that mirror those established under Program; and WHEREAS, the loan amount exceeds guidelines for the Program; and WHEREAS, the Authority has determined that, due to the short-term nature and unique circumstances of this request, providing a loan to the LLC is consistent with the intent of the Program and furthers the purposes of the Fund. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1.That the loan to The Lincoln LLC is hereby approved in accordance with the terms listedin Exhibit A; and2.That the Executive Director is directed to prepare and execute all documents necessary toadminister the loan. 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 13th day of February, 2026. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 4 of 5 EXHIBIT A Proposed Loan Terms Developer Name: The Lincoln LLC Loan Amount: $165,000 Interest Rate: 0% Repayment Terms: Within 30 days of MN Housing’s final disbursement to the City of Battle Lake or August 31, 2026, whichever occurs first 5 of 5