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12-02-2021 HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING December 02, 2021 7:00 PM Fridley City Hall, 7071 University Avenue N.E. AGENDA Call to Order Roll Call Action Items 1.Approval of Expenditures from November 1-24, 2021 2.Approval of the Minutes from the HRA Meeting of November 4, 2021 3.Approval of 2022 HRA Budget 4.Approval of 2022 Housing Grant Programs 5.Insulation Rebate Pilot Program Informational Items 6.Update on Housing Programs Adjournment The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, program, or activities because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation or status with regard to public assistance. Upon request, programs,and activities. Hearing impaired persons who need any interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at (763) 572-3500. (TTD/763-572-3534). 2 Jufn!2/ AGENDA REPORT Meeting Date:December 2, 2021 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Approval of Expenditures Background Recommendation Staff recommends the HRA approve the expenditures for the periodNovember1through November 24, 2021. Attachments and Other Resources Check Report Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 3 Jufn!2/ 4 Jufn!2/ 5 Jufn!3/ AGENDA REPORT Meeting Date:December 2, 2021 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Approval of the Minutes from the HRA Meeting of November 4, 2021 Background Recommendation Staff recommends the HRA approve the minutes from the HRA meeting of November 4, 2021. Attachments and Other Resources HRA Minutes November 4, 2021 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 6 Jufn!3/ HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING November 4, 2021 7:00 PM Fridley City Hall, 7071 University Avenue N.E. MINUTES Call to Order Chair Holm called the Housing and Redevelopment Authority Meeting to order at 7:00 p.m. Roll Call Present William Holm Elizabeth Showalter Gordon Backlund Kyle Mulrooney Paul Bolin, HRA Assistant Executive Director Jim Casserly, Development Consultant Members Absent: Rachel Schwankl Action Items 1.Approval of Expenditures from September 1 through October 29, 2021. Motion made by Commissioner Backlundto approve the expenditures, Seconded by Commissioner Showalter. Voting Yea: Chair Holm, Commissioner Showalter, Commissioner Backlund, Commissioner Mulrooney 2.Approval of the Minutes from the HRA Meeting of September 2, 2021 Motion made by Commissioner Mulrooneyto approve the minutes, Seconded by Commissioner Showalter. Voting Yea: Chair Holm, Commissioner Showalter, Commissioner Backlund, Commissioner Mulrooney 3.Approval of Purchase Agreement between the Fridley Housing and Redevelopment Authority and Archer Kath, 1358 Mississippi Street 7 Jufn!3/ Housing & Redevelopment Authority Regular Minutes Page 2 Meeting 11/4/2021 Paul Bolin, HRA Assistant Executive Director, stated that Julie Archer Kath at 1358 Mississippi Street property relates to others HRA owns in the area. The purchase price is $170,000 based on the appraisal from May of 2021. This price is in alignment for properties in the area. Staff recommends a motion approving the purchase of the Archer Kath property and authorize staff and Chair Holm to execute documents necessary for closing of the property. Motion made by Commissioner Backlund to approve the Purchase Agreement between the Fridley Housing and Redevelopment Authority and Archer Kath, 1358 Mississippi Street. Seconded by Commissioner Mulrooney. Voting Yea: Chair Holm, Commissioner Showalter, Commissioner Backlund, Commissioner Mulrooney 4.!Approval of Professional Services Agreement between the Fridley Housing and Redevelopment Authority and Northland Securities, Inc. Paul Bolin, HRA Assistant Executive Director, stated that staff is recommending Ms. Tammy Omdal, Managing Director of Public Finance for Northland Securities, be contracted by the Authority to provide financial and development consulting. She has 25 years in public and private sector advising, experience in city management and finance, experience drafting/working out development deals. Legal work will continue to be handled by Vickie Loher-Johnson of Monroe, Moxness & Berg. She will work with Greg Johnson on cash flow and TIF projections as needed. Staff recommends the Authority approve the agreement with Northland Securities Inc. to provide financial and development consulting services to the Authority. Ms. Omdal, Northland Securities, thanked the Authority for this opportunity and looks forward to working with the City of Fridley and the HRA. Motion made by Commissioner Backlund to approve the Professional Services Agreement between the Fridley Housing and Redevelopment Authority and Northland Securities, Inc. Seconded by Commissioner Mulrooney. Voting Yea: Chair Holm, Commissioner Showalter, Commissioner Backlund, Commissioner Mulrooney Informational Items 5. Update on Housing Programs Mr. Bolin presented that in October seven loans closed for a total of 41 loans in the amount of $874,299 total year to date. Remodel Advisor Visits had four in October for a total of 60 year to date. Home Energy Squad Visits had 10 for September/October for a total of 25 year to date. 8 Jufn!3/ Housing & Redevelopment Authority Regular Minutes Page 3 Meeting 11/4/2021 Grant programs are no longer taking applications. Front Door Grant had 96 applications processed, 46 signed agreements and 28 projects completed. Foundations MR Grant 16 had applications, 5 signed grant agreements and 2 projects completed. Exterior Paint Grant had 9 applications received and 6 projects completed. nd The next meeting is scheduled for December 2 at 7 p.m. Adjournment Motion made by Commissioner Showalter. Seconded by Commissioner Backlund. Voting Yea: Chair Holm, Commissioner Showalter, Commissioner Backlund, Commissioner Mulrooney Meeting adjourned at 7:22 p.m. _________________________________________________ Krista Peterson Recording Secretary 9 Jufn!4/ AGENDA REPORT Meeting Date:December 2, 2021 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Korrie Johnson, Interim Finance Director Title HRA 2022 Budget Background On Thursday night, staff will present the Proposed 2022 Budget for the Authority to review and approve. Paul Bolin and Korrie Johnson will be available to answer any questions that the Commissioners may have on the proposed budget. Last month, the Authority reviewed their cash fund balances in a work session. The cash flow projections and discussion that ensued serve as the basis for the Proposed 2022 Budget attached to this memorandum. It includes the General Fund, Housing Loan Program Fund and the various TIF Funds. The General Fund covers the bulk of the administrative and overhead costs of the Authority. It is also used to provide internal loans for development projects. The Housing Loan Program Fund covers the housing related programs and services (e.g., CEE programs). Recommendation Staff recommends approval of the Proposed 2022 Budget as presented. Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. : Jufn!5/ AGENDA REPORT Meeting Date:December2, 2021 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Nancy Abts, Associate Planner Title Approval of 2022 Housing Grant Programs Background The Housing and Redevelopment Authority offered homeowners three new grant programs in 2021a modifications but also funding optional exterior renovations; and for exterior painting supplies for income-qualified homeowners. As of Monday, November 22,2021,122 applicationsfor the three programshave been received and 57 grant projects have been successfully awardedfor the year. The 57 confirmedgrants represent approximately $166,000 of awarded funding, alongside a total investment of nearly $1,120,000 in contributions from both property owners and HRA grants. Going forward, staff recommends keeping the Paint Rebate program as-is, with income limits updated based on 2021 Area Median Income (AMI) figures. To streamline administration and remove confusion surrounding redundancy between programs, staff recommends consolidating the Front Door and Foundations Grants by allowing permanent interior improvements as an eligible type of under a FrontDoor Grant continue to be reimbursed only onceof the Front Door programhas been provided.In 2021, only one Foundations Grant did not include a Beautification component. To facilitate timely project completion and assist with competitive bidding of work, staff also suggests providing an application deadline in late March, with an additional application window in May if funds remain. Per the proposed 2022 budget, $150,000 will be allocated to Housing Grants in the coming year. Recommendation Staff recommends the HRA approve the Housing Grant Programs for 2022. Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 21 Jufn!5/ Attachments and Other Resources !2021 Grant Programs Overview Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 22 Jufn!5/ HOUSING & REDEVELOPMENT AUTHORITY 2021 GRANTPROGRAMS OVERVIEW Paint Front Door Foundations What is covered? RebateGrantGrant The Fridley Housing & Redevelopment Authority (HRA) is offering 3 grant programs in 2021. These programs are intended to assist Exterior Improvements Fridley homeowners in making eligible upgrades to their properties. Exterior Paintxx Beautification Projects Paint Rebate Provides up to $500 for paint & related supplies for Front, storm and/or garage doorsx income-qualified homeowners x Sidelight windows by front door x Front Door Grant Assists homeowners of properties valued Columns at front doorx x $400,000 or less in Covered front porchx x home. Minimum project cost $4,000 of Beautification Projects. Adding brick, stone or shakesx x Minimum grant award of $1,000 & maximum $5,000. Alter roofline on front of homex x Foundations Grant Assists homeowners of houses at least 20 Driveway / Sidewalk (repair or replace) x years old to make large, value-added improvements to the interior Window boxes, shutters (add or replace) x living space of their homes. Minimum project cost of $35,000. Screening of utility boxes, garbage cans x Maximum grant of $2,500 for Interior-only projects; $5,000 if Decorative fence (add, repair or replace) x exterior upgrades are included. Permanent landscaping*x x Basic Projects Paint Front Door Foundations Submittal Requirements RebateGrantGrant Roofx x Siding x x Application Soffit / Fascia x Property Ownership, Age, Homestead, & Trim x xxx Tax Status Verification Gutters*x https://prtpublicweb.co.anoka.mn.us/search/commonsearch.aspx?mode=realprop Via Anoka County: Windowx x xxx Picture(s) of proposed area of work Chimney repair, tuck pointing, repointing x x Income Verification (<110% AMI) Deck front or side yard (repair or replace) x Prior to Participation Agreement Porch front or side yard (repair or replace) x xx Project bids and/or cost estimates Retaining wall (repair or replace)x xx Permits for work to be done (if necessary) Interior Improvements Project Completion Building an addition and/or 2nd storyx . Paid invoices and/or receipts xxx Finishing a basement or attic*x . dated after Participation Agreement signatures Basement remodel*x . xxx Certificate of Completion Adding a bathroom*x . Site Visit from HRA Staff xxx 23 Moving/removing wallsx separate from any permit inspections *Consider also applying for a Water Efficiency Rebate for new appliances & irrigation If over $600 xx Form W-9 / Taxpayer Information equipment! More information follows on Page 2. Jufn!5/ HOUSING & REDEVELOPMENT AUTHORITY Additional Programs & Incentives Water Rebate Program Weatherization Assistance Program For a limited time, Fridley residents and businesses can qualify The Weatherization Assistance Program provides free home for rebates of up to 75 percent off the cost of water efficient energy upgrades to income-eligible homeowners and renters appliances and irrigation system components. Items include to help save energy and make sure your home is a healthy and certain washing machines, toilets, irrigation system controllers, safe place to live. Income guidelines are based on 200% of the irrigation system audits, spray sprinkler bodies, and rain Federal Poverty Income Guidelines for 2021. See income limits barrels. & learn more at mn.gov/commerce/consumers/consumer- assistance/weatherization/ This program is provided by funding through the Clean Water, Land & Legacy Amendment. Well-Sealing Grants Learn more: fridleymn.gov/1144/Water-Rebate-Program If your home was built prior to water service being installed in the area, it may have a well. Wells can often look like: SOLAR FINANCING o A pipe or ring sticking up from your basement floor or in Low interest loans for Minnesota homeowners to increase the the yard energy efficiency of their homes using photovoltaic (PV) solar o A pipe or ring behind false paneling or in an offset room in technology. the basement Visit mnlendingcenter.org/solar. o A glass block in the stoop Ensuring your well is properly sealed protects water quality Sign up for an Enhanced Home Energy Squad Visit® and can avoid complications in home sales. Grants are The Fridley HRA is paying ½ the cost for a Home Energy available to help with the cost of well sealing. Squad visit. Call 651-328-6220 or learn more and sign up https://www.fridleymn.gov/1377/Wellhead-Protection-Plan online. The first step is a free virtual visit with the Home Energy Squad (HES). During a virtual visit, an energy consultant will guide customers on a walk-through assessment of their homes via video chat. They will receive energy-saving tips to start saving energy right away and recommendations for next steps. If the virtual visit team thinks your home could benefit from an in-home visitthey can connect you to the best visit for your needs. 24 Jufn!6/ AGENDA REPORT Meeting Date:December 2, 2021 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Rachel Workin, Environmental Planner Title Insulation Rebate Pilot Program Background Since 2014, the HRA has partnered with the Center for the Energy and Environment (CEE) to provide Fridley residents reduced costHome Energy Squad (HES) visits to increase the energy efficiency of their homes. In 2018, the City Council adopted an Energy Action Plan that established a goal of reducing -wide energy consumption 20% by2030as compared to the 2017 baseline. Continuing to inc thisgoal. Often times, oneof the most cost-effective waysto ienergy efficiency is by increasing the amount of insulation. This is particularly true for older homes that were built before the current Building Code requirements.Insulation helps conserve energy by retaining heat in the winter and deflecting solar energy in the summer. This results in additional benefits including lower energy bills, decreased strain on equipment, reduced draftiness, increased home comfort,decreasedoutside noise, and reduced noise. Insulation is evaluated as part of a HES visit and improving insulation is one of the most frequently made recommendations. Residents that complete this work using aCenterPoint- approved contractor are eligible for rebatesof 30% of the project cost up to $300-$600depending on the type of insulation. However, few homeowners end up receivingthis rebate-in the past 12 months, 45 HES visits have been completedof which37 received a recommendation to improve their insulationbut only 6 have received a rebate. While some of these residents may beinstalling insulation themselves, others are choosing not to move forward with the HES recommendation. Asurvey as to whythey are not completing the insulation installationhas not been completed, but it is likely that the high upfront cost of insulation installation is a contributing factor. Staff is proposing anewInsulation Rebate Pilot Program, where the HRA wouldmatch CenterPoint . This would bring the total rebate amountto 60%of the project costup to $600-1,200 when combined with the CenterPointrebate. The rebates would be issued on a first come basis following proof of receipt of a CenterPoint invoice with a total program cap of $15,000. Staff is proposing to require that residents have received a HES visit in the past three years to qualify, which provides an added benefit of incentivizing participation in the HES Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 25 Jufn!6/ receive free support to promote this program through targeted mailers. Staff is monitoring the status of the federal Build Back Better bill that currently includes insulation rebates. rebate to $100 due to the projected increase in applicants. By still offering a rebate of greater value than the HES visit, the HRA would incentivize completion of a HES visit amongst this group. Recommendation Staff recommends approval of this pilot grant program. The program is extremely targeted towards homes needing additional insulation. The program will be capped at $15,000. Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 26 Jufn!7/ AGENDA REPORT Meeting Date:December 2,2021 Meeting Type:HRA RegularMeeting Submitted By:Paul Bolin, Asst. Executive Director Title Update on Housing Programs Background On a monthly basis, staff will provide updates from CEE on the past loan programs, remodeling advisor visits and Home Energy Squad Visits. Attachments and Other Resources Chart of Loans Issued & Remodeling Advisor Visits Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 27 Jufn!7/ 2: 75 5 58 11 9247:/13 532 593772/58 6111/11 24 26111/11 1/11 11 1/11 1/11 13 28:99/:4 11 11 1/11 1: 311111/11 826761/51 9747:/13 646 1/111376129/1123 1/11376129/1123 1 28 Jufn!7/ -- 23/19 22/7: / 57:6/94 46/19 23/19 57/89 46/19 34/4: 69/58 46/19 // 22/7: / 22/7: 57/89 57/89 22/7: / 22/7: 34/4: 22/7: 2127/:6 34/4: 22/7: 69/58 34/4: 46/19 29