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09-07-2023 Housing & Redevelopment Authority Regular Meeting September 07, 2023 8:00 PM Fridley City Hall, 7071 University Avenue N.E. Agenda Call to Order Roll Call Action Items 1.Approval of Expenditures 2.Approval of the Minutes from the HRA Meeting of August 3, 2023 3.HRA Resolution No. 2023-13 Adopting a 2023 Tax Levy Collectible in 2024 4.HRA Resolution No. 2023-14 Authorizing Transfer of Loan Portfolio from Community Reinvestment Fund (CRF) to the Center for Energy & Environment (CEE) for the Purpose of Servicing Loan Portfolio Informational Items 5.Update on Housing Programs Adjournment Upon request, accommodation will be provided to allow individuals with disabilities to participate in any City of Fridley services, programs, or activities. Hearing impaired persons who need an interpreter or other persons who require auxiliary aids should contact the City at (763) 571-3450. 2 Jufn!2/ AGENDA REPORT Meeting Date:September 7, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Approval of Expenditures Background Attached are the check reports for the month of August2023. Recommendation Staff recommend the HRA approve the expenditures for the periodAugust1 through August 30, 2023. 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:September 7, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Approval of the Minutes from the HRA Meeting ofAugust 3,2023 Background Recommendation Staff recommends the HRA approve the minutes from the meeting of August 3, 2023. Attachments and Other Resources HRA Minutes August 3, 2023 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 6 Jufn!3/ Housing and Redevelopment Authority August 3,2023 7:00 PM Fridley City Hall, 7071 University Avenue NE Minutes Call to Order Chairperson Showaltercalled the Housing and Redevelopment Authority meeting to order at 7:00 p.m. Present Elizabeth Showalter Gordon Backlund Troy Brueggemeier Rachel Schwankl Kyle Mulrooney Others Present Paul Bolin, HRA Assistant Executive Director Action Items 1. Approval of Expenditures Motionby Commissioner Brueggemeierto approve the expenditures. Seconded by Commissioner Mulrooney. Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously. 2.ApprovalJune 1,2023, Meeting Minutes Motionby Commissioner Backlundto approve the meeting minutesof June 1,2023as presented. Seconded by Commissioner Schwankl. Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously. 3.Approval of Resolution No. 2023-12, Purchase of 6421 Central Avenue (Lot 19, Block 1, Spring Valley Addition) Paul Bolin, HRA Assistant Executive Director, provided background on the area noting that in recent years the HRA has accumulated five parcelsand this purchase would be the sixth and final piece of that puzzle. He stated that an agreement of $250,000 for one acre has been reached and this would allow them to move forward with redevelopment of this area. He noted that this would close in August and reviewed the next steps that would follow to prepare the site for redevelopment. 7 Jufn!3/ Housing and Redevelopment Authority Minutes Page 2 8/3/2023 Commissioner Schwankl asked the approximate size of all the properties. Mr. Bolin replied that the total with roadways would be a little over five acres. Commissioner Brueggemeier asked if the plan for redevelopment has already been decided. Mr. Bolin stated that those conversations would follow between the Council and HRA, noting that different housing concepts had been discussed thus far. Motion by Commissioner Mulrooney to approve HRA Resolution No. 2023-12 Approving the Purchase Agreement and Authorizing the Assistant Executive Director to Sign Documents Needed to Close on the Property Legally Described as Lot 19, Block 1, Spring Valley Addition, Anoka County, Minnesota. Seconded by Commissioner Schwankl. Upon a voice vote, all voting aye, Chair Showalter declared the motion carried unanimously. Informational Items 4. Update on Housing Programs Mr. Bolin provided an overview of the recent activity of the housing programs, as well as year to date data. Adjournment Motion by Commissioner Brueggemeier to adjourn the meeting. Seconded by Commissioner Backlund. Upon a voice vote, all voting aye, Chairperson Showalter declared the motion carried and the meeting adjourned at 7:08 p.m. Respectfully submitted, Melissa Moore City Clerk 8 Jufn!4/ AGENDA REPORT Meeting Date:September 7, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Approval of HRA Tax Levy for Taxes Payable in 2024 Background Since 1996, the HRA has utilized a tax levy to help support its housing rehabilitation programs. In accordance with Minnesota Statute, 469.033, the Authority is seeking to levy the statutory maximum, equal to .0185% of the estimated market value of all real estate and personal property. The tax levy will allow the Authority to collect approximately $752,679based on an estimated market value of $4,068,533,300, an increase of approximately $119,100more than last year. In terms of the impact on taxpayers, the levy would cost approximately $53per year for the average homeowner (average home valued at $283,100)and $185 per year for a commercial property valued at $1,000,000. The revenues raised by the levy are directed towards ongoing and future redevelopment priorities. State Statutes require the consent of the City Council, prior to the tax levy becoming effective. The City Council will act on this item on September 25th. As a final note, the HRA tax levy will be certified to the County Auditor by September 30, 2023. Recommendation Staff recommends the Authority approve the attached resolution, adopting a 2023Tax Levy, collectible in 2024. Attachments and Other Resources HRA Resolution No. 2023-13Adopting a 2023Tax Levy Collectible in 2024 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 9 Jufn!4/ HRA RESOLUTION NO. 2023-13 RESOLUTION ADOPTING A 2023 TAX LEVY COLLECTIBLE IN 2024 BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"), as follows: Section 1. Recitals. 1.01. The Authority is authorized by Minnesota Statutes Section 469.033 to adopt a levy on all taxable property within its area of operation, which is the City of Fridley, Minnesota (the "City"). 1.02. The Authority is authorized to use the amounts collected by the levy for the purposes of Minnesota Statutes Sections 469.001 to 469.047 (the "General Levy"). Section 2. Findings. 2.01. The Authority hereby finds that it is necessary and in the best interests of the City and the Authority to adopt the General Levy to provide funds necessary to accomplish the goals of the Authority. Section 3. Adoption of General Levy. 3.01. The following sums of money are hereby levied for the current year, collectible in 2024, upon the taxable property of the City for the purposes of the General Levy described in Section 1.02 above: Total General Levy: .0185% of Estimated Market Value Amount: Maximum Allowed by Law Section 4. Report to City and Filing of Levies. 4.01. The Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the City Council for its consent to the General Levy. 4.02. After the City Council has consented by resolution to the General Levy, the Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the County Auditor of Anoka County, Minnesota. Passed and adopted by the Housing and Redevelopment Authority in and for the City of th Fridley this 7 day of September, 2023. ________________________________________________ Attest: Elizabeth Showalter - Chairperson _______________ Walter T. Wysopal Executive Director : Jufn!5/ AGENDA REPORT Meeting Date:September 7, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Center for Energy and Environment Loan Servicing Background Since 1996, the HRA has contracted the servicing of its loan portfolio to the Community Reinvestment Fund (CRF). Over the past few years, the quality of the service they provide has beenrapidlydeclining and they have now informed us that they willnot serviceconsumer loans after 2023. exit the loan servicing business is not surprising as severalcities, Fridley included, started to move away from CRF over the past 3-4 years. In 2019, the Authority made the decision to use the Center for Energy and Environment(CEE)to service all loans made after January 1, 2020. The existing loans were left in The Center for Energy and Environment (CEE) is the non-profit agency responsible for administering the abilitation programs. The Authority has contracted with CEE since 1996 to oversee the housing programs. Partnering with CEE, allows the HRA to outsource most of the administrative functions, including program marketing, loan processing, underwriting, loan closing, fund disbursements to the contractorsand loan servicing. There are efficiencies in having our loans underwritten, issued and serviced by the same group.There are also efficiencies with transferring the CRF portfolio to CEE. As CEE was the group that underwrote and closed the loans, they have copies of many of the documents needed to service the portfolio.For a fee of $5,000 CEE will transfer the 175 loans into their servicing platform. The transfer of the loans is expected to take a few weeks, but CEE anticipates servicing our loans prior to November 1. Recommendation Staff recommends the Authority approve the attached resolution, the Center for Energy and Environment for loan servicing. Attachments and Other Resources HRA Resolution No. 2023-14 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 21 Jufn!5/ Resolution No. 2023 14 Authorizing Transfer of Loan Portfolio from Community Reinvestment Fund (CRF) to the Center for Energy & Environment (CEE) for the Purpose of Servicing Loan Portfolio Whereas, the Housing and Redevelopment Authority in and for established a Revolving Loan Fund (RLF) in 1996; and Whereas, the Authority entered into an agreement with the Center for Energy & Environment to process loan applications, underwrite, close on loans, and disburse loan funds; and Whereas, the Authority entered into an agreement with the Community Reinvestment Fund (CRF) to service the loans; and Whereas, the Community Reinvestment Fund (CRF) provided notice to the Authority that their organization will no longer be servicing loans; and Whereas, the Center for Energy & Environment has the ability and capacity to service the Now, therefore be it resolved, that the Authority hereby approves and authorizes the transfer of their loan portfolio to the Center for Energy and Environment for the purpose of servicing the loans. Passed and adopted by the Housing and Redevelopment Authority in and for the City of Fridley this 7th day of September, 2023. Elizabeth Showalter Chairperson Attest: Walter T. Wysopal Executive Director 22 Jufn!6/ AGENDA REPORT Meeting Date:September 7, 2023 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Update on Housing Programs Background On a monthly basis, staff will provide updates from loan programsandremodeling advisor visits. Attachments and Other Resources Chart of Loans Issued and Remodeling Advisor Visits Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 23 Jufn!6/ 16 2: 2 53 11 67531/11 332 6865:3/67 6111/11 26 36111/11 1/11 11 1/11 1/11 11 1/11 1/11 11 1/11 1/11 11 1/11 1/11 1: 29:771/83 8:1264/39 72531/11 446 1/11128:8:/112 555:4/112351488/11: 555:4/11369467/1121 2 24 Jufn!6/ 52:2/22 56/11 / 59/9: 56/11 22/36 22/36 / 33/61 22/36 67/36 56/11 22/36 22/36 / 78/61 22/36 33/61 // 22/36 / 78/61 22/36 /44/86 44/86 44/86 89/86 78/61 33/61 33/61 22/36 44/86 33/61 - 33/61 67/36 25