board of commissioners packet...2020/07/07 · executive director be authorized to approve...

Board of Commissioners Packet

July 14, 2020 3:30 p.m. - Regular Meeting

CDA Office, 1228 Town Centre Drive, Eagan

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BOARD MEETING July 14, 2020 – 3:30 p.m.

Dakota County CDA, 1228 Town Centre Drive, Eagan, MN 55123

If you wish to speak at the Public Hearings or speak to any other agenda item, please notify the Clerk to the Board via email at [email protected]. Emails must be received by

12 p.m. on Tuesday, July 14, 2020. Instructions on how to participate will be sent to anyone interested.

AGENDA PAGE# 1. ROLL CALL

A. AudienceAnyone in the audience wishing to address the CDA Board on an item not on the agenda or an item on the consent agenda may come forward at this time. Anyone wishing to address the Board who cannot attend the meeting in person may notify the Clerk to the Board and instructions will be given to participate during the meeting. Comments are limited to five minutes. Comments can be sent prior to the meeting to [email protected]

2. APPROVAL OF AGENDA AND MEETING MINUTES June 16, 2020 Board Meeting Minutes 2

3. FEDERAL PUBLIC HOUSING AND HOUSING CHOICE VOUCHERCONSENT AGENDA

A. Approval Of Amendments To The Housing Choice Voucher Administrative Plan 13

B. Authorization To Submit Amendment To HUD Demolition/Disposition Approval (DDA0009902) 25

C. Approval Of Amended Statutory And Regulatory Waivers For The Housing Choice Voucher AndPublic Housing Programs 27

REGULAR AGENDA

A. Oath Of Office – At-Large Commissioner

4. CONSENT AGENDAA. Approval Of Record Of Disbursements – June 2020 32

B. Approval Of Carryover Of Fiscal Year Ended June 30, 2020 Budget Authority To Fiscal Year EndingJune 30, 2021 35

C. Schedule Public Hearing For Fair Housing Implementation Council Twin City Regional Analysis OfImpediments To Fair Housing Choice 40

D. Award Contract For The Common Area Flooring Replacement Project At Winsor Plaza (Lakeville)Senior Housing Development 43

5. REGULAR AGENDAA. Conduct Continued Public Hearing To Receive Comments And Authorize Executive Director To

Enter Into A Purchase Agreement For A Vacant Lot On Founders Lane Between Garrett AndGalaxie Avenues In Apple Valley

46

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mailto:[email protected]


51

59

63

73

B. Conduct And Close A Public Hearing To Receive Comments, Adoption Of A Housing Finance Program For An Affordable Housing Development, And Authorization For The Issuance Of Housing Development Bonds Backed By The Full Faith And Credit Of Dakota County

C. Authorization For Executive Director To Execute A Construction Contract For Gateway Place Housing Development Located In West St. Paul

D. Authorization To Enter Into Agreement With NextStage To Implement A Small Business Relief Program

E. CDA COVID-19 Response And Executive Director’s Update – Informational

F. Closed Executive Session: Executive Director Mid-Year Performance Evaluation 74

6. INFORMATION

A. Status Report, Q2 2020 76

7. ADJOURNMENT

For more information, call 651-675-4432.

Dakota County CDA Board meeting agendas are available online at: http://www.dakotacda.org/board_of_commissioners.htm

Next CDA Board Meeting: August 18, 2020 Regular Meeting – 3:30 p.m. Dakota County CDA Boardroom, 1228 Town Centre Drive, Eagan, MN 55123

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http://www.dakotacda.org/board_of_commissioners.htm

CDA Board of Commissioners Regular Board Meeting

June 16, 2020

Dakota County CDA, 1228 Town Centre Drive, Eagan, MN 55123 (Via Zoom Conference Call)

Commissioner Gerlach called the meeting to order at 3:33 p.m. COMMISSIONER ROLL CALL

CDA staff in attendance: Tony Schertler, Executive Director Kari Gill, Deputy Executive Director Sara Swenson, Director of Administration and Communications Kaili Braa, Assistant Director of Administration and Communications Sarah Jacobson, Administrative Coordinator Lisa Alfson, Director of Community & Economic Development Maggie Dykes, Assistant Director of Community & Economic Development Kathy Kugel, Housing Finance Coordinator Ken Bauer, Director of Finance Chris Meyer, Assistant Director of Finance Lisa Hohenstein, Director of Housing Assistance Anna Judge, Director of Property Management Others in attendance: Tom Donely, Dakota County Erin Stwora, Dakota County Steve Mielke, Dakota County Jean Erickson, Dakota County Kathy Aho, Baker Tilly Paul Steinman, Baker Tilly Carah Koch, Dakota Broadband David Murphy, Kutak Rock Anna Boroff, Minnesota Cable David Olson, City of Lakeville Katie Bachmayer, City of Lakeville Brian Hoese, Braun Intertec J. Collins AUDIENCE

No audience members addressed the Board. Building open, but no one was in the audience to testify. APPROVAL OF AGENDA AND MEETING MINUTES

20-6267 Approval Of Agenda And Meeting Minutes

BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners that the agenda for the June 16, 2020 Regular CDA Board meeting be approved as written.

Present Absent Commissioner Slavik, District 1 X Commissioner Gaylord, District 2 X Commissioner Egan, District 3 X Commissioner Atkins, District 4 X Commissioner Workman, District 5 X Commissioner Holberg, District 6 X Commissioner Gerlach, District 7 X Commissioner Cummings, At Large X

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BE IT FURTHER RESOLVED, by the Dakota County Community Development Agency Board of Commissioners that the minutes for the May 12, 2020 Regular CDA Board meeting be approved as written.

Motion: Commissioner Holberg

Second: Commissioner Egan

Ayes: 8

Nays: 0 Abstentions: 0

Yes No Absent Abstain Slavik X Gaylord X Egan X Atkins X Workman X Holberg X Gerlach X Cummings X

FEDERAL PUBLIC HOUSING AND HOUSING CHOICE VOUCHER AGENDA Consent Agenda

20-6268 Approval Of Amendments To The Housing Choice Voucher Administrative Plan

WHEREAS, the Dakota County Community Development Agency (CDA), as an administrator of the Federal Housing Choice Voucher (HCV) program, is required to adopt and maintain an administrative plan to delineate the mandatory and discretionary policies used to govern the program; and WHEREAS, the Dakota County CDA has made updates to the HCV Administrative Plan to include requirements for the administration of Tenant Protection Vouchers (TPVs) and 40 Project Based Vouchers at Cahill Place. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the amendments to the Housing Choice Voucher Administrative Plan are approved.

Motion: Commissioner Cummings

Second: Commissioner Atkins

Ayes: 8



Regular Agenda

20-6269 Approval Of The Fiscal Year Ending June 30, 2020 Public Housing And Section 8 Operating Budgets

WHEREAS, the Dakota County Community Development Agency (CDA) has completed the fiscal year ending June 30, 2021 operating budget process; and WHEREAS, the CDA Board of Commissioners has reviewed the proposed operating budget for the Public Housing and Section 8 programs for the fiscal year ending June 30, 2021; and NOW, THEREFORE, BE IT RESOLVED that the Dakota County Community Development Agency Board of Commissioners hereby adopts the fiscal year ending June 30, 2021 operating budgets for the Public Housing and Section 8 programs as follows:

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Total Expense: $27,116,115 Breakdown by program:

BE IT FURTHER RESOLVED, that form HUD-52574, PHA/IHA Board Resolution, required by the U.S. Department of Housing and Urban Development (HUD) is hereby approved; and BE IT FURTHER RESOLVED, that the CDA authorized the transfer of pre-2004 Unrestricted Net Position in the Section 8 Housing Choice Voucher program sufficient to fund the operating deficits of the MHFA-funded housing assistance programs that are included in the non-Public Housing and Section 8 portion of the operating budget; and BE IT FURTHER RESOLVED, that the Executive Director is authorized to implement and carry out this budget program.

Motion: Commissioner Cummings

Second: Commissioner Gaylord

Ayes: 8



CONSENT AGENDA

20-6270 Approve Record Of Disbursements – May 2020

BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners, That the May 2020 Record of Disbursements is approved as written.

20-6271 Approval Of Amendments To The Fiscal Year Ended June 30, 2020 Operating Budget

WHEREAS, the Dakota County CDA has adopted an operating budget for the Fiscal Year Ended June 30, 2020; and WHEREAS, CDA budget policy requires that a listing of budget transfers approved by the Executive Director be presented to the Board of Commissioners; and WHEREAS, the CDA created the Dakota County CDA Workforce Housing LLC to acquire family housing partnership projects that have reached the end of their tax credit periods; and WHEREAS, the CDA contributed Heart of the City and Erin Place Townhomes to the Dakota County CDA

Transfers Reserves &Subfund/Program Revenue Expense In (Out) Fund BalancesPublic Housing 2,489,511$ 2,248,675$ -$ 240,836$ Housing Assistance -Vouchers 24,519,885 24,597,491 (11,167) (88,773) Housing Assistance - FSS 24,876 24,876 - - Housing Assistance - Mainstream 187,964 227,636 - (39,672) Housing Assistance - SRO 17,350 17,437 - (87) Total Public Housing/Section 8 27,239,586$ 27,116,115$ (11,167)$ 112,304$

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Workforce Housing LLC in December 2019 necessitating an amendment to the Fiscal Year Ending June 30, 2020 operating budget; WHEREAS, the CDA wishes to increase spending for the Fiscal Year Ended June 30, 2020 by $16,180 net of additional revenues. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the budget amendments approved by the Executive Director for the Fiscal Year Ended June 30, 2020 pursuant to the requirements of CDA budget policy are affirmed by the CDA Board; and BE IT FURTHER RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the budget amendment to the Dakota County CDA Workforce Housing LLC for the Fiscal Year Ended June 30, 2020 is approved.

20-6272 Approval Of Amendments To CDA Personnel Policy #310 – Leave of Absence WHEREAS, the Administration Department periodically reviews policies and procedures and makes

recommendations in order to maintain and enhance the effective provision of human resource management functions of the CDA; and NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Community Development Agency Board of Commissioners hereby adopts amendments to Personnel Policy #310 – Leave of Absence. BE IT FURTHER RESOLVED, the Human Resources Administrator is authorized to modify the policy accordingly.

20-6273 Authorization To Award Contract For Unit Turn Projects At Senior And Workforce Housing

Developments WHEREAS, formal bids were received on May 29, 2020 for the unit turn project for 20 CDA senior and

workforce housing developments in Dakota County; and WHEREAS, J Lewis Building and Remodeling submitted a low bid of $10,231.69 per unit; and WHEREAS, J Lewis Building and Remodeling meets the bidder qualifications in the specification; and WHEREAS, the contractor is being recommended on their past experience in projects with the Dakota County CDA; and WHEREAS, funds will be budgeted in the annual Extraordinary Maintenance budgets to cover the cost of each project. NOW, THEREFORE, BE IT RESOLVED, by the Dakota County Community Development Agency Board of commissioners, That the Deputy Executive Director be authorized to sign a construction contract on behalf of the Dakota County CDA with low bidder, J Lewis Building and Remodeling.

20-6274 Authorization To Award Contract For Attic Dry System Replacement At The Dakotah In West St.

Paul WHEREAS, the Dakota County Community Development Agency (CDA) accepted bids on May 27, 2020

for the replacement of the dry fire suppression system in the attic at The Dakotah senior housing development located in West St. Paul; and WHEREAS, Viking Automatic Sprinkler Co. was the lowest responsible bidder with a bid total of $132,100.00; and WHEREAS, funds are budgeted for this project in the Common Bond Fund budget; and WHEREAS, the Dakota County CDA proposes to execute a contract for the project to commence June 2020.

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NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Deputy Executive Director be authorized to sign a contract for the project with the lowest responsible bidder Viking Automatic Sprinkler Co. in an amount of $132,100.00; and BE IT FURTHER RESOLVED, that the Deputy Executive Director be authorized to execute change orders not to exceed the contract amount by 10% or $13,210; and BE IT FURTHER RESOLVED, that the funds for this project are approved to be carried forward to the FYE21 Operating Budget.

20-6275 Authorization To Enter Into An Architectural Contract With LHB Inc. For Concord Workforce

Housing Project In Inver Grove Heights WHEREAS, the Dakota County Community Development Agency (CDA) owns property on Concord

Boulevard between 63rd Street East and Delilah Avenue in Inver Grove Heights; and WHEREAS, the CDA is pursuing development of the property as a 34-unit affordable housing development; and WHEREAS, the CDA requested a Fee Proposal from LHB, Inc. for architect services to design the Concord housing development; and WHEREAS, LHB, Inc. provided a fee proposal in the amount of $265,200 for the project that includes schematic design through construction administration; and WHEREAS, the architectural firm LHB, Inc. is being recommended as a Professional Service under the Noncompetitive Proposal Section (6.5.1.5) of the CDA Procurement Policy; and WHEREAS, the contract amount is within the percentage allowed for architectural services by Minnesota Housing; and WHEREAS, if the housing development is approved, the construction would begin after financing is secured. NOW, THEREFORE, BE IT FURTHER RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Executive Director is authorized to enter into an architectural contract with LHB, Inc. for $265,200.

20-6276 Adoption Of Dakota county CDA Section 18 LLC Admissions and Continued Occupancy Policy WHEREAS, the Dakota County Community Development Agency (CDA) administers the Department of

Housing and Urban Development (HUD) Public Housing Program with 323 units located throughout Dakota County; and WHEREAS, HUD’s Section 18 of the US Housing Act of 1937 (Disposition) application allows agencies to convert public housing into long-term Section 8 contracts to provide a stable funding source to satisfactorily meet capital needs of public housing units; and WHEREAS, the Dakota County Community Development Agency (CDA) received approval of this conversion for 120 of its 323 scattered sit units located throughout Dakota County; and WHEREAS, the Dakota County CDA in its role as owner and Property Manager requires an Admissions and Continued Occupancy Policy to ensure the fair and consistent consideration of applicants and residents. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the DCCDA Section 18 Admissions and Continued Occupancy Policy is adopted.

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20-6277 Establish The Date For A Public Hearing Regarding A Housing Finance Program And The Issuance Of Housing Development Bonds Backed By The Full Faith And Credit Of Dakota County Pursuant To Minnesota Statutes, Section 469.034, Subd. 2

WHEREAS, pursuant to Minnesota Statues, Section 469.001 through 469.047 (the “Act”), and

particularly Section 469.034, Subd. 2, the Dakota County Community Development Agency (the “Agency”) is authorized to issue its bonds for the purpose of financing the construction of qualified housing development projects, and with the consent of Dakota County (the “County”), to pledge the County’s full faith and credit to such bonds; and WHEREAS, the Agency proposes to undertake one “qualified housing development project” (as described in Minnesota Statutes, Section 469.034, Subd. 2 (e)) providing housing for low and moderate income persons, within the County (the “Development”); and WHEREAS, the Agency will request that the County pledge its full faith and credit to housing development revenue bonds of the Agency (the “Bonds”) to finance the construction of the Development; and WHEREAS, the Act requires as a condition precedent to issuance of the Bonds that both the Agency and the County hold public hearings regarding the issuance of the Bonds; and WHEREAS, pursuant to the Act, the Agency is required to adopt a housing finance program (the “Program”) with respect to the Development. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners: 1. That a public hearing will be held by the Dakota County Community Development Agency (the

“CDA”) on July 14, 2020 on or after 3:30 p.m. for the purpose of receiving comments regarding : (i) a housing finance program (the “Program”) providing for the issuance by the CDA of bonds (the “Bonds”) to finance a multifamily housing development to be located in West St. Paul; and (ii) the pledge by the CDA of the full faith and credit of Dakota County (the “County”) to secure the Bonds pursuant to Minnesota Statutes, Section 469.034, Subd. 2 (the “Act”)

2. That the Executive Director or his designee is hereby authorized and directed to cause notice of

such public hearing to be published in a newspaper of general circulation in Dakota County, and to cause a copy of the Program to be submitted to the Metropolitan Council, not fewer than fifteen (15) days prior to such hearing.

3. That the CDA requests the Board of Commissioners of the County to hold a public hearing and

approve the pledge by the CDA of the County’s full faith and credit to the Bonds, in accordance with the Act.


Second: Commissioner Egan

Ayes: 7 Nays: 0 Abstentions: 0

Yes No Absent Abstain Slavik X Gaylord X Egan X Atkins X Workman X Holberg X Gerlach X

REGULAR AGENDA

INFO Open And Continue Public Hearing For a Vacant Lot On Founders Lane Between Garrett And Galaxie Avenues in Apple Valley

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Public hearing was continued to July 14, 2020.

20-6278 Approval Of A Redevelopment Incentive Grant For The City Of Lakeville

WHEREAS, the Dakota County Community Development Agency (CDA) established a Redevelopment Incentive Grant (RIG) program in 2006 to assist Dakota County cities with the redevelopment of blighted and under-utilized areas to increase the tax base and improve the quality of life in Dakota County; and WHEREAS, to date, the program has awarded nearly $12.9 million for 63 redevelopment grants and 26 planning grants; and WHEREAS, the RIG program has an approved budget of available grant funds of $1,096,000 for the fiscal year ending June 30, 2020; and WHEREAS, the CDA has committed $896,000 in its FYE 2020 budget, and Dakota County, through its Environmental Resources Department, has committed additional $200,000 of funding for RIG projects that require environmental remediation; and WHEREAS, Dakota County cities can apply up to $250,000 per redevelopment projects (one per local government) and up to $15,000 per planning grant (one per local government); and WHEREAS, the City of Lakeville has submitted an application for $81,600 for the removal of contaminated soils, and installation of clean soil buffers and a vapor mitigation system necessary for the construction of a 55-unit independent senior living located at 16890 Klamath Trail; and WHEREAS, the City’s application meets the eligibility criteria to receive funding as listed in the Redevelopment Incentive Grant Program Policy and Procedures Guide. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the City of Lakeville is awarded of $81,600 Redevelopment Incentive Grant contingent upon the grantee meeting program guidelines, and entering into a grant agreement with the CDA, in form and content acceptable to the Executive Director of the CDA.


Second: Commissioner Slavik

Ayes: 7



20-6279 Approval Of The Fiscal Year Ending June 30, 2021 Operating Budget (Excluding The Public Housing and Section 8 Operating Budgets)

WHEREAS, the Dakota County Community Development Agency (CDA) has completed the fiscal year ending June 30, 2021 operating budget process; and WHEREAS, the CDA Board of Commissioners has reviewed the proposed operating budget for the fiscal year ending June 30, 2021; and WHEREAS, the CDA Board of Commissioners shall approve the operating budget for Public Housing Fund and the Section 8 Voucher and Single Room Occupancy programs in a separate resolution; and

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NOW, THEREFORE, BE IT RESOLVED that the Dakota County Community Development Agency Board of Commissioners, hereby adopts the fiscal year ending June 30, 2021 operating budget (excluding the Public Housing and Section 8 programs approved by separate resolution) as follows: Total Expense $39,679,462 Breakdown by program:

BE IT FURTHER RESOLVED, that the Executive Director is authorized to implement and carry out this budget program.

Motion: Commissioner Egan

Second: Commissioner Workman

Ayes: 7



INFO Preview Of Financial Analysis For Issuance Of Housing Development Bonds

Kathy Aho & Paul Steinman from Baker Tilly presented.

INFO CDA COVID-19 Response And Executive Director’s Update

Tony Schertler and Anna Judge provided updates.

ADJOURNMENT

20-6280 Adjournment

BE IT RESOLVED, that the Dakota County Community Development Agency Board of Commissioners hereby adjourns until Tuesday, July 14, 2020.

Motion: Commissioner Gaylord Second: Commissioner Slavik

Transfers Reserves &Subfund/Program Revenue Expense In (Out) Fund BalancesHD&R 3,642,370$ 3,686,543$ 1,713,158$ 1,668,985$ HIA 40,995 12,694 - 28,301 HOPE 206,000 2,771,045 1,150,000 (1,415,045) Levy 8,795,645 - (8,863,158) (67,513) Tax Increment 2,316,756 2,120,607 (130,000) 66,149 Senior Housing 16,790,116 20,207,539 5,680,000 2,262,577 Housing Assistance - State/Local 1,886,675 2,297,842 411,167 - Workforce Housing 3,776,034 4,063,853 50,000 (237,819) Youth Housing 338,950 343,693 - (4,743) Real Estate Operations 3,936,420 3,005,980 - 930,440 Office Building 255,152 247,973 - 7,179 Technology 911,812 921,693 - (9,881) Total Other Subfunds/Programs 42,896,925$ 39,679,462$ 11,167$ 3,228,630$ , ,$ , ,$ $ , ,$

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Ayes: 8 Nays: 0 Abstentions: 0


The CDA Board meeting adjourned at 5:26 p.m. __________________________________________ __________________________________________ CDA Board Chairperson CDA Board Secretary

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DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION

Approval Of Amendments To The Housing Choice Voucher Administrative Plan

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Housing Assistance Amount included in current budget Prepared By: Lisa Hohenstein Budget amendment requested Contact: Lisa Hohenstein FTE included in current complement Contact Phone: 651-675-4543 New FTE(s) requested

Other:

PURPOSE/ACTION REQUESTED • Approve amendments to the Housing Choice Voucher Administrative Plan.

SUMMARY The Dakota County Community Development Agency (CDA), as an administrator of the federal Housing Choice Voucher (HCV) program, is required to adopt and maintain an administrative plan to delineate the mandatory and discretionary policies used to govern the program. Periodically, the plan needs to be updated as the U.S. Department of Housing and Urban Development adopts new or revised regulations and as the agency determines a need to revise its policies.

Attachment A is the edited chapter of the CDA’s HCV Administrative Plan.

Changes are for: • Housing Quality Standards (HQS) inspections.

RECOMMENDATION Staff recommends adopting the proposed revisions to ensure program compliance.

EXPLANATION OF FISCAL/FTE IMPACT N/A

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Supporting Documents: Previous Board Action(s): Attachment A: Applicable Chapter of the HCV Administrative Plan

Resolution No. 20-XXXX

Approval Of Amendments To The Housing Choice Voucher Administrative Plan

WHEREAS, the Dakota County Community Development Agency (CDA), as an administrator of the federal Housing Choice Voucher (HCV) program, is required to adopt and maintain an administrative plan to delineate the mandatory and discretionary policies used to govern the program; and

WHEREAS, the Dakota County CDA has made updates to the HCV Administrative Plan to include changes to the Housing Quality Standards (HQS) inspections.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the amendments to the Housing Choice Voucher Administrative Plan are approved.

Executive Director’s Comments: Strategic Plan Priorities: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness

_____________________________________________ Executive Director

_____________________________________________ Department Director

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ADMINISTRATIVE PLAN

FOR THE

HOUSING CHOICE VOUCHER PROGRAM

Approved by the CDA Board of Commissioners: December 14, 2010 Amended: March 15, 2011 Amended: March 20, 2012 Amended: March 19, 2013 Amended: September 23, 2014 Amended: June 16, 2015 Amended: December 15, 2015 Amended June 21, 2016 Amended November 15, 2016 Amended June 15, 2017 Amended August 30, 2017 Amended May 22, 2018 Amended September 17, 2019 Amended March 17, 2020 Amended June 16, 2020 Amended July 14, 2020

Submitted to HUD: December 20, 2010

3A - Attachment A

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8-I.B. ADDITIONAL LOCAL REQUIREMENTS

The CDA may impose variations to the HQS as long as the additional criteria are not likely to adversely affect the health or safety of participant families or severely restrict housing choices for families. HUD approval is required for variations to the HQS. HUD approval is not required if the variations are clarifications of HUD's acceptability criteria or performance standards [24 CFR 982.401(a)(4)].

Thermal Environment [HCV GB p.10-7]

The CDA must define a “healthy living environment” for the local climate. This may be done by establishing a temperature that the heating system must be capable of maintaining, that is appropriate for the local climate.

CDA Policy

The heating system must be capable of maintaining an interior temperature of 68 degrees Fahrenheit between October 1 and May 1.

Clarifications of HUD Requirements

CDA Policy

As permitted by HUD, the CDA has adopted the following specific requirements that elaborate on HUD standards.

Walls and Ceilings

In areas where plaster or drywall is sagging, severely cracked, including large holes that may result in air infiltration or vermin infestation or is otherwise damaged, it must be repaired or replaced

Ceilings with large holes and other serious defects must be repaired or replaced.

For units built prior to 1978 and with occupants under the age of 6, oOwners will be required to scrape peeling paint and repaint all surfaces cited for peeling paint with 2 coats of non-lead paint (See HUD Guidebook 1.4 for further information about Lead Based Pain regulations/requirements). An extension may be granted as a severe weather-related item as defined below.

Windows

Window sashes must be in good condition, solid and intact, and properly fitted to the window frame. Damaged or deteriorated sashes must be replaced.

Windows must be weather-stripped as needed to ensure a weather-tight seal.

In rooms with openable windows, at least one intact window screen, in good condition, will be required.Window screens are required on all windows and must be in good condition.

All windows designed to open must be openable and all accessible windows must lock securely. Taping or caulking of window cracks is generally not acceptable.

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The placement of a bed or other furniture in front of a window that blocks egress (no other window available escape) will need to be removed and relocated to another part of the room.

Doors

All exterior doors must be weather-tight to avoid any air or water infiltration, be lockable, have no holes, have all trim intact, and have a threshold.

All interior doors, in finished spaces, must have no holes, have all trim intact, and be openable without the use of a key.

Floors

All wood floors must be sanded to a smooth surface and sealed. Any loose or warped boards must be re-secured and made level. If they cannot be leveled, they must be replaced.

All floors must be in a finished state. Raw wood or unsealed concrete is not permitted.

All floors should have some type of base shoe, trim, or sealing for a "finished look." Vinyl base shoe is permitted.

Broken, uneven or missing steps must be repaired or replaced.

Sinks

All sinks and commode water lines must have shut off valves, unless faucets are wall mounted.

All sinks must have functioning stoppers at initial inspection.

Toilets

All worn or cracked toilet seats and tank lids must be replaced and toilet tank lid must fit properly.

Security

If window security bars or security screens are present on emergency exit windows, they must be equipped with a quick release system. The owner is responsible for ensuring that the family is instructed on the use of the quick release system.

Emergency Back Up lights located in hallways and stairwells must be operating.

Double keyed deadbolt locks are not acceptable.

Electrical Specifications Any surface mounted Romex wiring should be run in such a manner to be protected from any damage and all surface wiring is be to securely attached to structural components. Cord or pull chain fixtures shall be cloth (non-metallic) in moisture areas (e.g.,

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kitchen bathroom and basement). If accessible, all missing light bulbs should be installed in order to close an open electrical socket. Dead outlets or switches should be made operable or device removed, wires properly capped and a blank cover installed on box. Electrical service panel shall have no open knock-outs. A three-way switch must be installed for stairway lighting if there is a basement bedroom and lighting from the top of the stairs to the bedroom must be adequately continuous to permit a person to safely walk from the top of the stairs to the bedroom.

Infestation The owner is responsible for treating vermin infestation even if caused by the family’s living habits. However, if such infestation is serious and repeated, it may be considered a lease violation and the owner may evict for serious or repeated violation of the lease. The CDA may terminate the family’s assistance on that basis.

Utilities A ¾” overflow pipe must be present on the hot water heater safety valves and terminate to a safe place of disposal or within 18 inches of the floor.installed down to within 6 inches of the floor. In units where the tenant must pay for utilities, each unit must have separate metering device(s) for measuring utility consumption. Smoke and Carbon Monoxide Detectors

The owner will be required to repair an inoperable smoke or carbon monoxide detector unless the CDA determines that the family has intentionally disconnected it (by removing batteries or other means). In this case, the family will be required to repair the smoke or carbon monoxide detector.

8-I.C. LIFE-THREATENING CONDITIONS [24 CFR 982.404(a); FR Notice 1/18/17]

HUD requires the CDA to define life-threatening conditions and to notify the owner or the family (whichever is responsible) of the corrections required. The responsible party must correct life-threatening conditions within 24 hours of CDA notification. The CDA may give a short extension (not more than forty-eight (48) additional hours) whenever the responsible party cannot be notified or it is impossible to correct the repair within the 24-hour period. In those cases where there is leaking gas or potential of fire or other threat to public safety, and the responsible party cannot be notified or it is impossible to make the repair, proper authorities will be notified by the CDA.

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CDA Policy

The following are considered life-threatening conditions:

Any condition that jeopardizes the security of the unit

• Major plumbing leaks or flooding, waterlogged ceiling or floor in imminent danger of falling

• Natural or LP gas or fuel oil leaks

o A fuel storage vessel, fluid line, valve, or connection that supplies fuel to a HVAC unit is leaking or a strong odor is detected with potential for explosion or fire or that results in a health risk if inhaled

• Any electrical problem or condition that could result in shock or fire

o A light fixture is readily accessible, is not securely mounted to the ceiling or wall, and electrical connections or wires are exposed

o A light fixture is hanging by its wires

o A light fixture has a missing or broken bulb, and the open socket is readily accessible to the tenant during the day-to-day use of the unit

o A receptacle (outlet) or switch is missing or broken and electrical connections or wires are exposed

o An open circuit breaker position is not appropriately blanked off in a panel board, main panel board, or other electrical box that contains circuit breakers or fuses

o A cover is missing from any electrical device box, panel box, switch gear box, control panel, etc., and there is exposed electrical connections

o Any nicks, abrasions, or fraying of the insulation that exposes conducting wire

o Exposed bare wires or electrical connections

o Any condition that results in openings in electrical panels or electrical control device enclosures

o Water leaking or ponding near any electrical device

o Any condition that poses a serious risk of electrocution or fire and poses an immediate life-threatening condition

• Absence of a working heating system when outside temperature is below 40 degrees Fahrenheit and inside unit is below 68 degrees Fahrenheit

• Utilities not in service, including no running hot or cold water

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• Conditions that present the imminent possibility of injury

• Obstacles that prevent safe entrance or exit from the unit

o Any components that affect the function of the fire escape are missing or damaged

o Stored items or other barriers restrict or prevent the use of the fire escape in the event of an emergency

o The building’s emergency exit is blocked or impeded, thus limiting the ability of occupants to exit in a fire or other emergency

• Absence of a functioning toilet in the unit

• Inoperable or missing smoke detectors

• Missing or inoperable carbon monoxide detector

• Missing, damaged, discharged, overcharged, or expired fire extinguisher (where required)

• Gas/oil-fired water heater or heating, ventilation, or cooling system with missing, damaged, improper, or misaligned chimney venting

o The chimney or venting system on a fuel-fired water heater is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting or gases

o A gas dryer vent is missing, damaged, or is visually determined to be inoperable, or the dryer exhaust is not vented to the outside.

o A fuel-fired space heater is not properly vented or lacks available combustion air

o A non-vented space heater is present

o Safety devices on a fuel-fired space heater are missing or damaged

o The chimney or venting system on a fuel-fired heating, ventilation, or cooling system is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting of gas

• Deteriorating paint as defined at 24 CFR 35.110 in a unit built before 1978 that is to be occupied by a family with a child under six years of age if it would prevent the family from moving into the unit

• Broken lock(s) on the first-floor door or windows

• Broken windows that unduly allow weather elements into the unit

If an owner fails to correct life-threatening conditions as required by the CDA, the CDA will enforce the HQS in accordance with HUD requirements. See 8-II-G.

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If a family fails to correct a family-caused life-threatening condition as required by the CDA, the CDA will enforce the family obligations. See 8-II.H.

PART II: THE INSPECTION PROCESS

8-II.A. OVERVIEW [24 CFR 982.405]

Types of Inspections

The CDA conducts the following types of inspections as needed. Each type of inspection is discussed in the paragraphs that follow.

• Initial Inspections. The CDA conducts initial inspections in response to a request from the family to approve a unit for participation in the HCV program.

• Annual/Biennial Inspections. HUD requires the CDA to inspect each unit under lease at least annually or biennially, depending on CDA policy, to confirm that the unit still meets HQS. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately.

• Special Inspections. A special inspection may be requested by the owner, the family, or a third party as a result of problems identified with a unit between annual inspections.

• Quality Control Inspections. HUD requires that a sample of units be inspected by a supervisor or other qualified individual to evaluate the work of the inspector(s) and to ensure that inspections are performed in compliance with the HQS.

Inspection of CDA-Owned Units [24 CFR 982.352(b)]

The CDA must obtain the services of an independent entity to perform all HQS inspections in cases where an HCV family is receiving assistance in a CDA-owned unit. A CDA-owned unit is defined as a unit that is owned by the CDA that administers the assistance under the consolidated ACC (including a unit owned by an entity substantially controlled by the CDA). The independent entity must communicate the results of each inspection to the family and the CDA. The independent agency must be approved by HUD, and may be the unit of general local government for the CDA jurisdiction (unless the CDA is itself the unit of general local government or an agency of such government).

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Inspection Costs [Notice PIH 2016-05]

The CDA may not charge the family for unit inspections or reinspections [24 CFR 982.405(e)]. In the case of inspections of CDA-owned units, the CDA may compensate the independent agency from ongoing administrative fee for inspections performed. The CDA and the independent agency may not charge the family any fee or charge for the inspection [24 CFR.982.352(b)]. The CDA may not charge the owner for the inspection of the unit prior to the initial term of the lease or for a first inspection during assisted occupancy of the unit. However, the CDA may charge a reasonable fee to owners for reinspections in two situations: when the owner notifies the CDA that a repair has been made but the deficiency has not been corrected, and when the time for repairs has elapsed and the deficiency has not been corrected. Fees may not be imposed for tenant-caused damages, for cases in which the inspector could not gain access to the unit, or for new deficiencies discovered during a reinspection.

The owner may not pass the cost of a reinspection fee to the family. Reinspection fees must be added to the CDA’s administrative fee reserves and may only be used for activities related to the provision of tenant-based assistance.

CDA Policy

The CDA will not charge a fee for failed reinspections.

Notice and Scheduling

The family must allow the CDA to inspect the unit at reasonable times with reasonable notice [24 CFR 982.551(d)].

CDA Policy

Both the family and the owner will be given reasonable notice of all inspections. Except in the case of a life-threatening emergency, reasonable notice is considered to be not less than 48 hours. Inspections may be scheduled between 8:00 a.m. and 7:00 p.m. Generally, inspections will be conducted on business days.

Owner and Family Inspection Attendance

HUD permits the CDA to set policy regarding family and owner presence at the time of inspection [HCV GB p. 10-27].

CDA Policy

When a family occupies the unit at the time of inspection an adult family member must be present for the inspection. The presence of the owner or the owner's representative is encouraged but not required.

At initial inspection of a vacant unit, the CDA will inspect the unit in the presence of the owner or owner's representative. The presence of a family representative is permitted, but not required.

8-II.B. INITIAL HQS INSPECTION [24 CFR 982.401(a)]

Initial Inspections [FR Notice 1/18/17]

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The CDA may, but is not required to, approve assisted tenancy and start HAP if the unit fails HQS inspection, but only if the deficiencies identified are non-life threatening. Further, the CDA may, but is not required to, authorize occupancy if a unit passed an alternative inspection in the last 24 months.

CDA Policy

The unit must pass the HQS inspection on or before the effective date of the HAP contract.

The CDA will not rely on alternative inspections and will conduct an HQS inspections for each unit prior to executing a HAP contract with the owner.

Timing of Initial Inspections

HUD requires CDA’s with fewer than 1,250 budgeted units to complete the initial inspection, determine whether the unit satisfies HQS, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA). For CDAs with 1,250 or more budgeted units, to the extent practicable such inspection and determination must be completed within 15 days. The 15-day period is suspended for any period during which the unit is not available for inspection [982.305(b)(2)].

CDA Policy

The CDA will complete the initial inspection, determine whether the unit satisfies HQS, and notify the owner and the family of the results in a reasonable, timely and efficient manner indicative of good customer service.

Inspection Results and Reinspections

CDA Policy

If any HQS violations are identified, the owner will be notified of the deficiencies and be given a time frame to correct them. If requested by the owner, the time frame for correcting the deficiencies may be extended by the CDA for good cause. The CDA will reinspect the unit within 15 business days of the date the owner notifies the CDA that the required corrections have been made.

If the time period for correcting the deficiencies (or any CDA-approved extension) has elapsed, or the unit fails HQS at the time of the reinspection, the CDA will notify the owner and the family that the unit has been rejected and that the family must search for another unit. The CDA may agree to conduct a second reinspection, for good cause, at the request of the family and owner.

Utilities

Generally, at initial lease-up the owner is responsible for demonstrating that all utilities are in working order including those utilities that the family will be responsible for paying.

CDA Policy

If utility service is not available for testing at the time of the initial inspection, the CDA will allow the utilities to be placed in service after the unit has met all other HQS

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requirements. The CDA will reinspect the unit to confirm that utilities are operational before the HAP contract is executed by the CDA.

Appliances [Form HUD-52580]

CDA Policy

If the family is responsible for supplying the stove and/or refrigerator, the CDA will allow the stove and refrigerator to be placed in the unit after the unit has met all other HQS requirements. The required appliances must be in place before the HAP contract is executed by the CDA. The CDA will execute the HAP contract based upon a certification from the family that the appliances have been installed and are working.

8-II.C. ANNUAL/BIENNIAL HQS INSPECTIONS [24 CFR 982.405 and 982.406; Notice PIH 2016-05]

CDA Policy

Each unit under HAP contract must be inspected within 1224 months of the last full HQS inspection.

The CDA will not rely on alternative inspection standards.

Scheduling the Inspection

CDA Policy

If an adult family member cannot be present on the scheduled date, the family should request that the CDA reschedule the inspection. The CDA and family will agree on a new inspection date that generally should take place within 15 business days of the originally-scheduled date. The CDA may schedule an inspection more than 15 business days after the original date for good cause.

The CDA will automatically schedule up to 3 inspection appointments. If the family misses the scheduled inspections without CDA approval, the CDA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family’s assistance in accordance with Chapter 12.

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Authorization To Submit Amendment To HUD Demolition/Disposition Approval (DDA0009902)

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Property Management Amount included in current budget Prepared By: Anna Judge Budget amendment requested Contact: Anna Judge FTE included in current complement Contact Phone: 651-675-4501 New FTE(s) requested Other:

PURPOSE/ACTION REQUESTED • Authorize submission of proposed amendment to the Dakota County Community Development Agency’s

Demolition/Disposition Approval (DDA0009902). SUMMARY On July 30, 2019, the Dakota County Community Development Agency (CDA) submitted application DDA0009902 to the U.S. Department of Housing and Urban Development’s Special Applications Center (SAC) for the disposition of 92 dwelling buildings containing 120 dwelling units and 27.84 acres of land at MN147000001 (the HUD property designation for the CDA’s scattered site public housing units). SAC approved the application on September 17, 2019. The approval provides for disposition to Dakota County CDA, LLC (the LLC), subject to a 30-year use restriction requiring operation of these units as low-income housing. The SAC approved an amendment to its approval at the CDA’s request on May 6, 2020, allowing also for negotiated sale at fair market value (FMV) to qualified resident purchasers, and sale at FMV via public bid if the condition or location of any units make them incompatible with long-term preservation. Except for the units that CDA will sell to resident purchasers or the public, the HUD approval requires conveyance of units to the LLC via 30-year ground lease. The requested amendment is to allow the CDA to sell the properties rather than ground lease the units to the LLC. Staff believes that a sale at nominal consideration would be administratively easier than a ground lease, while still allowing the CDA to enforce the 30-year use restriction through deed restrictions and to take the necessary actions to preserve this housing for the long-term through its control of the LLC. RECOMMENDATION Staff recommends that the CDA Board authorize the submission of this amendment to the SAC for the CDA’s disposition approval scattered site public housing units. EXPLANATION OF FISCAL/FTE IMPACT None other than minor changes in administrative costs of implementation.

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Supporting Documents: Previous Board Action(s): 19-6139; (6/18/2019); 20-6232 (2/11/2020)


Authorization To Submit Amendment To HUD Demolition/Disposition Approval (DDA0009902)

WHEREAS, the Dakota County CDA submitted HUD application DDA0009902 on July 30, 2019 to the U.S. Department of Housing and Urban Development’s Special Applications Center (SAC); and WHEREAS, the application was approved by SAC on September 17, 2019 for the disposition of 120 CDA scattered site public housing units and amended such approval on May 6, 2020; and WHEREAS, the method of sale approved by HUD for the units to be conveyed to Dakota County CDA, LLC (the LLC) and preserved with project-based voucher assistance is via 30-year ground lease; and WHEREAS, the CDA believes that conveyance via sale at nominal consideration would be administratively easier than via ground lease, while still allowing the CDA to enforce the 30-year use restriction through deed restrictions and to take the necessary actions to preserve this housing for the long term through its control of the LLC. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That staff is authorized to submit an amendment request to the disposition approval for HUD’s review and consideration that would allow for conveyance to the LLC via sale at nominal consideration rather than via 30-year ground lease.


____________________________________________ Executive Director


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Approval Of Amended Statutory And Regulatory Waivers For The Housing Choice Voucher And Public Housing Programs

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Housing Assistance/Property Management Amount included in current budget Prepared By: Lisa Hohenstein Budget amendment requested Contact: Lisa Hohenstein/Anna Judge FTE included in current complement Contact Phone: 651-675-4543; 651-675-4501 New FTE(s) requested

Other:

PURPOSE/ACTION REQUESTED • Approve revisions of statutory and regulatory waivers for the Housing Choice Voucher and Public Housing

Programs.

SUMMARY Pursuant to the authority provided under the Coronavirus Aid, Relief and Economic Security (CARES) Act, the U.S. Department of Housing and Urban Development (HUD) issued a Public and Indian Housing (PIH) Notice on April 10, 2020. This notice provides administrative flexibilities and relief to public housing agencies (PHAs) through statutory and regulatory waivers. On July 2, 2020 HUD issued a revision, PIH Notice 2020-13 (HA) Rev-1.

HUD continues to strongly encourage PHAs to utilize any waivers and alternative requirements as necessary to keep Public Housing (PH) and Housing Choice Voucher (HCV) Programs operational to the extent practicable. The notice also provides information on additional actions HUD is taking, including the temporary suspension of the Public Housing Assessment System (PHAS) and the Section Eight Management Assessment Program (SEMAP).

The Dakota County CDA has implemented a number of waivers that will provide flexibility to critical functions when normal operations are restricted and severely constrained, further prevent the spread of COVID-19, and mitigate the health risks posed by COVID-19 to the CDA.

Attached is a chart of the waivers implemented and revisions are marked in red.

RECOMMENDATION Staff recommends adopting the statutory and regulatory waiver to ensure program compliance.


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Supporting Documents: Previous Board Action(s): Attachment A: Implemented Waivers 20-6259; 5/12/2020


Approval Of Amended Statutory And Regulatory Waivers

For The Housing Choice Voucher And Public Housing Programs

WHEREAS, pursuant to the authority provided under the Coronavirus Aid, Relief and Economic Security (CARES) Act, the U.S. Department of Housing and Urban Development (HUD) issued a Public and Indian Housing (PIH) Notice on April 10, 2020; and WHEREAS, this notice provides administrative flexibilities and relief to public housing agencies (PHAs) through statutory and regulatory waivers; and WHERAS, on July 2, 2020 HUD issued a revision, PIH Notice 2020-13 (HA) Rev-1; and WHEREAS, HUD strongly encouraged PHAs to utilize any waivers and alternative requirements as necessary to keep Public Housing (PH) and Housing Choice Voucher (HCV) Programs operational to the extent practicable; and WHEREAS, the Dakota County CDA has implemented a number of waivers that will provide flexibility to critical functions when normal operations are restricted and severely constrained, further prevent the spread of COVID-19, and mitigate the health risks posed by COVID-19 to the CDA. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That adoption of the amended implemented waivers, and revisions, has been approved.


_____________________________________________ Executive Director


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Housing Choice Voucher Waivers Item Statutory and Regulatory Waivers Summary of Alternative Requirements Availability Period

Ends HCV-3: Family Income and Composition: Annual Reexamination; Income Verification Requirements

Regulatory Authority § 982.516(a)Sub-regulatory GuidancePIH Notice 2018-18

• Waives the requirements to use the incomehierarchy, including the use of EIV, and will allowPHA’s to consider self-certification as the highestform of income verification

12/31/2020

HCV-4: Family Income and Composition: Interim Examinations

Regulatory Authority § 982.516(c)(2)Sub-regulatory GuidancePIH Notice 2018-18

• Waives the requirements to use the incomehierarchy, including the use of EIV, and will allowPHA’s to consider self-certification as the highestform of income verification

12/31/2020

HCV-7: Waiting List: Opening and Closing; Public Notice

Regulatory Authority § 982.206(a)(2)Sub-regulatory GuidancePIH Notice 2012-34

• Waives public notice requirements for openingand closing waiting list

• Requires alternative process

12/31/2020

HCV-6: FSS Contract of Participation

Regulatory Authority § 984.303(d)

• Provides for extensions to FSS contract ofparticipation

• Waives the requirement for an oral briefing

12/31/2020

HCV-2: Information When Family is Selected – PHA Oral Briefing

Regulatory Authority § 982.301(a)(3)§ 983.252(a)

• Provides for alternative methods to conductrequired voucher briefing

12/31/2020

HVC-3: Term of Voucher-Extensions of Term

Regulatory Authority § 982.303(b)(1)

• Allows PHAs to provide voucher extensionsregardless of current PHA policy

12/31/2020

HCV-4: PHA Approval of Assisted Tenancy

Regulatory Authority § 982.305(c)

• Provides for HAP payments for contracts notexecuted within 60 days

12/31/2020

11a PHAS Regulatory Authority 24 CFR Part 902

• Allows for alternatives related to inspections• PHA to retain prior year PHAS score unless

requests otherwise

HUD will resume issuing new PHAS scores starting with PHAs with FYE dates of 03/31/2021

11b: SEMAP Regulatory Authority 24 CFR Part 985

• PHA to retain prior year SEMAP score unlessrequests otherwise

HUD will resume issuing new SEMAP scores starting with PHAs with FYE dates of 03/31/2021

3C - Attachment A

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HQS Inspections HCV-1: Initial Inspection Requirements

Statutory Authority Section 8 (o)(8)(A)(i) Section 8(o)(8)(C) Regulatory Authority §§ 982.305(a), 982.305(b), 982.405

• Changes initial inspection requirements allowing for owner certification that there are no life-threatening deficiencies

• Where self-certification was used, PHA must inspect the unit no later than 1-year anniversary of date of owner’s certification.

12/31/2020 1-year anniversary of date of owner’s certification

HCV-3: Initial Inspection: Non-Life-Threatening Deficiencies (NLT) Option

Statutory Authority Section 8 (o)(8)(A)(ii) Regulatory Authority HOTMA HCV Federal Register Notice January 18, 2017

• Allows for extension of up to 30 days for owner repairs of non-life-threatening conditions

12/31/2020

HVC-4: HQS Initial Inspection Requirement: Alternative Inspection Option

Statutory Authority Section 8 (o)(8)(A)(iii) Regulatory Authority HOTMA HCV Federal Register Notice January 18, 2017

• Under Initial HQS Alternative Inspection Option-allows for commencement of assistance payments based on owner certification there are no life-threatening deficiencies

• Where self-certification was used, PHA must inspect the unit no later than October 31, 2020.

12/31/2020 1-year anniversary of date of owner’s certification

HCV-6: Interim Inspections

Statutory Authority Section 8 (o)(8)(F) Regulatory Authority §§ 982.405(g) § 983.103(e)

• Waives the requirement for PHA to conduct interim inspection and requires alternative method

• Allows for repairs to be verified by alternative methods

12/31/2020

HVC-9: HQS QC Inspections Regulatory Authority § 982.405(b)

• Provides for a suspension of the requirement for QC sampling inspections

12/31/2020

HCV: Annual Recertification Inspections (relief offered in previous PIH Notice)

Regulatory Authority PIH Notice 2016-05

• Authorizes PHAs to conduct unit sections every other year instead of annually.

• A PHA that moves to biennials inspections for all of the units in its portfolio does not need to update its Admin Plan to reflect the change.

N/A

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Public Housing Waivers

Item Statutory and Regulatory Waivers Summary of Alternative Requirements Availability Period Ends

PH Annual Reexamination Income Verification

Regulatory Authority § 5.233(a)(2) Sub-regulatory Guidance PIH Notice 2018-18

Waives the requirements to use the income hierarchy, including the use of EIV, and will allow PHA’s to consider self-certification as the highest form of income verification

12/31/2020

PH Interim Reexaminations Statutory Authority Section 3(a)(1) Regulatory Authority §5.233(a)(2) 982.516(c)(2) 960.257(b) and (d) Sub-regulatory Guidance PIH Notice 2018-18

Waives the requirement to use the income verification requirements, including the use of EIV, for interim reexaminations

12/31/2020

PH EIV System Monitoring Regulatory Authority §5.233 Sub-regulatory Guidance PIH Notice 2018-18

Waives the mandatory EIV monitoring requirements 12/31/2020

PH-5 CSSR

Statutory Authority Section 12(c) Regulatory Authority §960.603(a) and 960603(b)

Temporarily suspends Community Service and Self-Sufficiency

3/31/2021

PH-7 Over-income families

Housing Opportunity Through Modernization Act of 2016: Final Implementation of the Public Housing Income Limit 83 FR 35490 Notice: Notice PIH 2019-11

Changes to timeframe for determination of over-income

12/31/2020

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Approval Of Record Of Disbursements – June 2020

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Finance Amount included in current budget Prepared By: Chris Meyer Budget amendment requested Contact: Ken Bauer FTE included in current complement Contact Phone: 651-675-4450 New FTE(s) requested

Other:

PURPOSE/ACTION REQUESTED • Approve Record of Disbursements for June 2020.

SUMMARY In June 2020, the Dakota County Community Development Agency (CDA) had $5,684,441.55 in disbursements and $427,029.64 in payroll expenses. Attachment A provides the breakdown of disbursements. Additional detail is available from the Finance department.

RECOMMENDATION Staff recommends approval of the Record of Disbursements for June 2020.

EXPLANATION OF FISCAL/FTE IMPACT These disbursements are included in the Fiscal Year Ending June 30, 2020 budget.

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Supporting Documents: Previous Board Action(s): Attachment A: Record of Disbursement – June 2020


Approval Of Record Of Disbursements – June 2020

BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners, That the June 2020 Record of Disbursements is approved as written.




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Date Amount TotalCommon Bond Fund

06/18/20 92,813.99$

92,813.99$ Disbursing

06/01/20 74,716.00$ 06/04/20 772,570.66$ 06/11/20 793,681.40$ 06/15/20 416.00$ 06/18/20 305,759.30$ 06/25/20 1,794,596.21$

3,741,739.57$ Housing Assistance

06/01/20 1,782,478.99$ 06/15/20 67,409.00$

1,849,887.99$

Total Disbursements 5,684,441.55$

June 2020 Payroll06/05/20 214,814.31$ 06/19/20 212,215.33$

Total Payroll 427,029.64$

Disbursement detail is available in the Finance Office

Dakota County CDARecord of Disbursements

For the month of June 2020

4A - Attachment A

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Approval Of Carryover Of Fiscal Year Ended June 30, 2020 Budget Authority To Fiscal Year Ending June 30, 2021

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Finance Amount included in current budget Prepared By: Chris Meyer Budget amendment requested Contact: Ken Bauer FTE included in current complement Contact Phone: 651-675-4450 New FTE(s) requested

Other:

PURPOSE/ACTION REQUESTED • Approve carryover of Fiscal Year Ended June 30, 2020 budget authority to Fiscal Year Ending June 30, 2021

SUMMARY As staff works to close the fiscal year that just ended, several projects and work items have been identified that were not fully completed by June 30, 2020. To complete these projects and items, unspent budget authority will need to be carried forward from the Fiscal Year Ended June 30, 2020 operating budget to the Fiscal Year Ending June 30, 2021 operating budget. A listing of these carryover items is as follows:

Program Description Amount

Housing Development & Renewal

Downpayment assistance loans $41,800

HOPE Downpayment assistance loans $42,500

HOPE Residential rehab loans (13) $127,059

Tax Increment Financing Funding Senior Housing EM & capital improvements $300,000

Senior Housing (Common Bond)

Elevator replacement parts - $8,000 (All Buildings) and $1,953,206 of Capital/EM projects (Attachment A-1)

$1,961,206

Senior Housing (Common Bond)

TIF Funding of Senior Housing EM & capital improvements ($300,000)

Workforce Housing LLC Various Capital/EM projects (Attachment A-2) $163,900

Youth Housing Safety Equipment/Security Cameras $5,000

TOTAL $2,341,465

RECOMMENDATION Staff recommends approval of the carryover of Fiscal Year Ended June 30, 2020 budget authority to Fiscal Year Ending June 30, 2021.

EXPLANATION OF FISCAL/FTE IMPACT Transfer $2,341,465 of unspent budget authority from Fiscal Year Ended June 30, 2020 to Fiscal Year Ending June 30, 2021.

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Supporting Documents: Previous Board Action(s): Attachment A-1: Extraordinary Maintenance Project List Attachment A-2: Extraordinary Maintenance Project List


Approval Of Carryover Of Fiscal Year Ended June 30, 2020 Budget Authority

To Fiscal Year Ending June 30, 2021

WHEREAS, the Dakota County CDA has adopted an operating budget for the Fiscal Year Ended June 30, 2020; and WHEREAS, the CDA had $2,341,465 of uncompleted projects and work items relating to the operating budget for the Fiscal Year Ended June 30, 2020; and WHEREAS, the CDA wishes to carry forward the unspent budget authority relating to these uncompleted projects and items to the operating budget for the Fiscal Year Ending June 30, 2021. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That $2,341,465 of Fiscal Year Ended June 30, 2020 budget authority be carried forward to the operating budget for the Fiscal Year Ending June 30, 2021.




- 36 -

ATTACHMENT A-1: EXTRAORDINARY MAINTENANCE PROJECT LISTSENIOR HOUSINGFOR YEAR ENDED JUNE 30, 2020

BudgetProject # Dept Staff Description G/L Code Carryover Comments

Lakeville - Winsor Plaza CBF 02-05 HD BR Paint siding winsor.4611-00-000 64,000.00 CBF 02-07 HD NS Replace common area flooring winsor.4611-00-000 135,000.00 CBF 02-AD HD N/A HD admin fee winsor.4195-01-000 19,900.00

218,900.00 West St. Paul - Haskell Court

CBF 04-06 HD NS Replace toilet supply lines and shut offs haskel.4611-00-000 8,400.00 CBF 04-AD HD N/A HD admin fee haskel.4195-01-000 840.00

9,240.00 Hastings - Mississippi Terrace

CBF 06-07 HD TB Replace passage levers on common area doors [a] missis.4611-00-000 3,000.00 Carry over from FYE 6/30/19CBF 06-08 HD TB Install spring hinges on apt. entry doors [a] missis.4611-00-000 3,000.00 Carry over from FYE 6/30/19CBF 06-09 HD TB Replace closers on common area doors [a] missis.4611-00-000 4,400.00 Carry over from FYE 6/30/19CBF 06-AD HD N/A HD admin fee missis.4195-01-000 1,040.00

11,440.00 Rosemount - Cameo Place

CBF 11-02 HD BR Replace community room tables and chairs cameop.4611-00-000 26,055.00 CBF 11-AD HD N/A HD admin fee cameop.4195-01-000 2,606.00

28,661.00 Eagan II - O'Leary Manor

CBF 12-01 HD TB Replace unit refrigerators oleary.4611-00-000 39,000.00 CBF 12-03 HD TB Replace unit microwaves oleary.4611-00-000 29,200.00 CBF 12-05 HD TB Replace windows, siding, and roof oleary.4611-00-000 820,000.00 $300,000 transfer in - TIF (cbfund.3660-00-000)CBF 12-AD HD N/A HD admin fee oleary.4195-01-000 88,820.00

977,020.00 Burnsville II - Park Ridge Place

CBF 13-03 HD BR Replace community room tables and chairs parkri.4611-00-000 39,700.00 CBF 13-04 HD NS Replace unit flooring parkri.4611-00-000 75,000.00 CBF 13-AD HD N/A HD admin fee parkri.4195-01-000 11,470.00

126,170.00 Lakeville II - Mainstreet Manor

CBF 15-02 HD TB Install door operators at 2 laundry rooms mainst.4611-00-000 10,000.00 CBF 15-03 PM Commercial space - tenant improvements msmcom.4611-00-000 30,000.00 CBF 15-AD HD N/A HD admin fee mainst.4195-01-000 1,000.00

41,000.00

4B - Attachment A

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Inver Grove Heights II - Cahill Commons CBF 16-03 HD BR Replace dry system piping cahill.4611-00-000 15,200.00 CBF 16-AD HD N/A HD admin fee cahill.4195-01-000 1,520.00

16,720.00 Mendota Heights II - Village Commons

CBF 17-05 HD TB Install door operators at 3 laundry rooms village.4611-00-000 5,000.00 CBF 17-AD HD N/A HD admin fee village.4195-01-000 500.00

5,500.00 Eagan III - Lakeside Pointe

CBF 18-01 HD TB New screen porch lakesi.4611-00-000 20,000.00 CBF 18-AD HD N/A HD admin fee lakesi.4195-01-000 2,000.00

22,000.00 West St. Paul II - The Dakotah

CBF 19-02 HD TB Repair block walls at Robert & Annapolis thedak.4611-00-000 50,000.00 CBF 19-03 PM Commercial space - tenant improvements dakcom.4611-00-000 40,000.00 CBF 19-04 PM BR Re-insulate attic thedak.4611-00-000 22,000.00 CBF 19-05 HD BR New dry system at The Dakotah thedak.4611-00-000 135,000.00 CBF 19-AD HD N/A HD admin fee thedak.4195-01-000 20,700.00

267,700.00 Lakeville III - Crossroads Commons

CBF 23-01 HD NS Replace unit flooring crossr.4611-00-000 75,000.00 CBF 23-AD HD N/A HD admin fee crossr.4195-01-000 7,500.00

82,500.00 Apple Valley III - Cobblestone

CBF 24-01 HD NS Replace common area flooring including community cobble.4611-00-000 100,000.00 room and stairwells

CBF 24-09 HD TB Replace unit shut off valves cobble.4611-00-000 25,000.00 CBF 23-AD HD N/A HD admin fee cobble.4195-01-000 12,500.00

137,500.00 Farmington - Vermillion River Crossing

CBF 26-03 HD NS Repair clock vermil.4611-00-000 4,550.00 Carry over from FYE 6/30/19CBF 26-AD HD N/A HD admin fee vermill.4195-01-000 455.00

5,005.00 Inver Grove Heights III - Hillcrest

CBF 28-01 HD NS Battery backup for CO ventilation control hillcr.4611-00-000 3,500.00 CBF 28-AD HD N/A HD admin fee hillcr.4195-01-000 350.00

3,850.00

TOTAL 1,953,206.00

- 38 -

ATTACHMENT A-2: EXTRAORDINARY MAINTENANCE PROJECT LISTWORKFORCE HOUSING LLCFOR YEAR ENDED JUNE 30, 2020


Lakeville - Cedar ValleyWH 24-02 HD TB Replace water heaters cedarv.4611-00-000 40,000.00 WH 24-AD HD N/A HD admin fee cedarv.4195-01-000 4,000.00

44,000.00 Lakeville II - Country Lane

WH 26-01 HD BR Replace exterior doors countr.4611-00-000 50,000.00 WH 26-AD HD N/A HD admin fee countr.4195-01-000 5,000.00

55,000.00 Mendota Heights - Hillside Gables

WH 27-02 HD BR Replace exterior shutters hillsi.4611-00-000 7,000.00 WH 27-03 HD BR Replace Playground equipment hillsi.4611-00-000 15,000.00 WH 27-AD HD N/A HD admin fee hillsi.4195-01-000 2,200.00

24,200.00 Hastings II - Marketplace

WH 28-04 HD TB Re-work laundry drain piping market.4611-00-000 25,000.00 WH 28-AD HD N/A HD admin fee market.4195-01-000 2,500.00

27,500.00 Burnsville Heart of the City

WH 29-02 HD BR Tree removal, trimming, sod, plantings hearto.4611-00-000 12,000.00 WH 29-AD HD N/A HD admin fee hearto.4195-01-000 1,200.00

13,200.00

TOTAL 163,900.00

4B - Attachment B

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Schedule Public Hearing For Fair Housing Implementation Council Twin Cities Regional Analysis Of Impediments To Fair Housing Choice

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Community & Economic Development Amount included in current budget Prepared By: Kathy Kugel Budget amendment requested Contact: Lisa Alfson FTE included in current complement Contact Phone: 651-675-4467 New FTE(s) requested

Other:

PURPOSE/ACTION REQUESTED • Schedule a public hearing for 3:30 p.m. on August 18, 2020 to receive comments on the draft of the Twin Cities

Regional Analysis of Impediments to Fair Housing Choice.

SUMMARY The Dakota County Community Development Agency (CDA) administers the federal Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) programs on behalf of Dakota County. These federal funds are directly received from the U.S. Department of Housing and Urban Development (HUD) for a variety of housing and community development programs and activities, and require the recipient to affirmatively further fair housing. This obligation to affirmatively further fair housing has been in the Fair Housing Act since it was signed into law in 1968. Federal grantees cannot discriminate against protected classes of persons, e.g. the elderly, minorities, the disabled, etc., in the programs and activities of recipients receiving federal/HUD funding.

The CDA joined together with other communities that also administer these federal funds in 2002 within the Twin Cities Region to form the Fair Housing Implementation Council (FHIC) to coordinate efforts to comply with their obligations to affirmatively further fair housing throughout the Twin Cities metro housing market area. To satisfy part of the obligation to affirmatively further fair housing the FHIC completes an Analysis of Impediments to Fair Housing Choice (AI) every five years within their communities to assist in the development and implementation of strategies and actions to overcome any impediments to fair housing choice based on their history, circumstances, and experiences.

The draft public hearing notice is Attachment A.

RECOMMENDATION Staff recommends a public hearing be scheduled for August 18, 2020 at 3:30 p.m. and to authorize the Executive Director to complete a notice to receive comments on the draft Twin Cities Regional Analysis of Impediments to Fair Housing Choice.

EXPLANATION OF FISCAL/FTE IMPACT None.

- 40 -

Supporting Documents: Previous Board Action(s): Attachment A: Draft Public Hearing Notice


Schedule Public Hearing For Fair Housing Implementation Council Twin Cities Regional Analysis Of Impediments To Fair Housing Choice

WHEREAS, Dakota County is an Entitlement County for funds through the Community Development Block Grant (CDBG) Program and Emergency Solutions Grant (ESG) Program, and a Participating Jurisdiction for the HOME Investment Partnerships (HOME) Program; and

WHEREAS, the Dakota County Community Development Agency (CDA) administers the CDBG, ESG and HOME programs on behalf of Dakota County, thereby requiring agreements between the U.S. Department of Housing and Urban Development (HUD) and Dakota County for the CDBG, ESG, and HOME funds and between Dakota County and the Dakota County CDA for CDBG, ESG and HOME program administration; and

WHEREAS, the U.S. Department of Housing and Urban Development (HUD) requires the recipient of intergovernmental funds to affirmatively further fair housing to further the purposes of the Fair Housing Act; and

WHEREAS, the obligation to affirmatively further fair housing has been in the Fair Housing Act since it was signed into law in 1968; and

WHEREAS, to assist in meeting the obligation to affirmatively further fair housing HUD further requires the development and submission of an “Analysis of Impediments to Fair Housing Choice” (AI) within their communities; and

WHEREAS, the Fair Housing Implementation Council (FHIC) was established July 2002 to facilitate and initiate implementation of affirmative activities having metro-wide significance identified in regional AI and the related Fair Housing Action Guide; and

WHEREAS, the FHIC completes a Twin Cities Regional AI every five years to assist in the development and implementation of strategies and actions to overcome any impediments to fair housing choice based on their history, circumstances, and experiences; and

WHEREAS, the requested public hearing is to receive comments and inform the public on the draft Twin Cities Regional AI.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners:

1. That a public hearing will be held by the Dakota County Community Development Agency (the “CDA”) onAugust 18, 2020 at 3:30 p.m. for the purpose of receiving comments regarding the Twin Cities RegionalAnalysis of Impediments to Fair Housing Choice.

2. That the Executive Director or his designee is hereby authorized and directed to cause notice of such publichearing to be published in a newspaper of general circulation in Dakota County, not fewer than fifteen (15)days prior to such hearing.




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NOTICE TO ANNOUNCE PUBLIC HEARING FOR FAIR HOUSING IMPLEMENTATION COUNCIL TWIN CITIES REGIONAL ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING

CHOICE

NOTICE IS HEREBY GIVEN that the Board of Directors of the Dakota County Community Development Agency (CDA) will meet on Tuesday August 18, 2020 at 3:30 p.m. at its offices located at 1228 Town Centre Drive, Eagan, Minnesota, for the purpose of conducting a public hearing for the purpose of receiving comments from the general public concerning the Twin Cities Regional Analysis of Impediments to Fair Housing Choice (AI).

The Twin Cities Regional AI is a thorough examination of structural barriers to fair housing choice and access to opportunity for members of historically marginalized groups protected from discrimination by the federal Fair Housing Act (FHA). The Twin Cities Regional AI also outlines meaningful strategies that can be implemented to achieve progress towards the various entitlement jurisdictions’ obligation to affirmatively furthering fair housing.

An executive summary and full draft of the AI is available on the Dakota County CDA website at www.dakotacda.org. On request, the Dakota County CDA will make every attempt to make the information available in alternative formats.

Members of the public can participate in the public hearing in one of the following ways: • All persons interested may appear and be heard at the time and place set forth above.• The public may comment in writing or via voicemail. Any comments and materials submitted

by 12:00 pm of the day of the meeting will be attached to the public record and available forreview by the Board. Comments may be submitted to the Clerk of the Board via email [email protected] or by voicemail at 651-675-4434.

• If you wish to speak at the public hearing and are unable to attend in person, please notifythe Clerk to the Board via email at [email protected]. Emails must bereceived by 12:00 pm of the day of the meeting. Instructions on how to participate will besent to anyone interested.

[Date of Publication]

BY ORDER OF THE BOARD OF COMMISSIONERS OF THE DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY

By /s/ Tony Schertler Executive Director

4C - Attachment A

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Award Contract For The Common Area Flooring Replacement Project At Winsor Plaza (Lakeville) Senior Housing Development

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Housing Development Amount included in current budget Prepared By: Nick Sisterman Budget amendment requested Contact: Kari Gill FTE included in current complement Contact Phone: 651-675-4477 New FTE(s) requested

Other:

PURPOSE/ACTION REQUESTED • Authorize Deputy Executive Director to execute a contract with Galaxie Floor Stores.• Authorize change order authority.

SUMMARY This contract is for the common area flooring replacement at Winsor Plaza in Lakeville, a development in the Dakota County Community Development Agency (CDA) senior housing portfolio.

A bid was solicited using Sourcewell, a cooperative purchasing company. Sourcewell creates and maintains competitively solicited cooperative contracts for use by government, educational, and non-profit organizations. They provide access to local contractors through locally bid contracts. Contracts are based on a catalog of pre-priced tasks. Solicitation of the bid was done in accordance with section 6.6 of the Procurement Methodology (chapter 6 of the Procurement Policy); the standards proposed for use of the Cooperative Purchasing/Intergovernmental Agreement recommended here are reasonable and appropriate. The bid is reasonable in cost compared with similar projects for the CDA in the past.

RECOMMENDATION Staff recommends that the Deputy Executive Director be authorized to enter into a contract with Galaxie Floor Stores, in the amount of $127,292.15. In a project this size, it is possible there may be change orders that would result in minor changes to the project. To deal with these change orders more efficiently, staff recommends that the Deputy Executive Director be authorized to approve change orders up to the amount of $6,365 (5% of the contract amount).

EXPLANATION OF FISCAL/FTE IMPACT Funds are available for this project from FYE20 and will be carried forward to the FYE21 budget.

- 43 -

Supporting Document: Previous Board Action(s): Attachment A: Sourcewell Minnesota Legal References


Award Contract For The Common Area Flooring Replacement Project At Winsor Plaza (Lakeville) Senior Housing Development

WHEREAS, the Dakota County Community Development Agency solicited a bid using Sourcewell, a cooperative purchasing company, for the common area flooring replacement at the CDA owned senior building of Winsor Plaza; and

WHEREAS, funds to complete this project are included in the FYE20 Common Bond Fund budget and will be carried forward to the FYE21 budget.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Deputy Executive Director is authorized to sign a contract with Galaxie Floor Stores in the amount of $127,292.15; and

BE IT FURTHER RESOLVED that the Deputy Executive Director be authorized to execute change orders not to exceed $6,365 (5% of the initial contract amount).




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Minnesota Legal References

State Agencies:

Minn. Stat. § 16C.03 (2017). Commissioner's authority; powers and duties

Subd. 10. Cooperative purchasing. The commissioner is authorized to enter into a cooperative purchasing agreement for the provision

of goods, services, construction, and utilities in accordance with section 16C.105.

Local Governments:

Minn. Stat. § 471.345 (2017). Uniform Municipal Contracting Law

Subd. 15. Cooperative purchasing. (a) Municipalities may contract for the purchase of supplies, materials, or equipment by utilizing

contracts that are available through the state's cooperative purchasing venture authorized by section 16C.11. For a contract estimated

to exceed $25,000, a municipality must consider the availability, price and quality of supplies, materials, or equipment available through

the state's cooperative purchasing venture before purchasing through another source.

(b) If a municipality does not utilize the state's cooperative purchasing venture, a municipality may contract for the purchase of supplies,

materials, or equipment without regard to the competitive bidding requirements of this section if the purchase is through a national

municipal association's purchasing alliance or cooperative created by a joint powers agreement that purchases items from more than

one source on the basis of competitive bids or competitive quotations.

About Sourcewell:

Sourcewell is a service cooperative created by the Minnesota legislature as a local unit of government. Minn. Const. art. XII, sec. 3. As

a public corporation and agency, Sourcewell is governed by local elected municipal officials and school board members. Minn. Stat. §

123A.21 Subd. 4 (2017Under its enabling statute, Sourcewell is explicitly authorized to provide cooperative purchasing services to

eligible members. Id. at Subd. 7(23).

Sourcewell follows the competitive contracting law process to solicit, evaluate and award cooperative purchasing contracts for goods

and services. Sourcewell cooperative purchasing contracts are made available through the joint exercise of powers law to member

agencies. Minn. Stat. § 471.59 (2017). Membership in Sourcewell is available for all eligible state and local governments, education,

higher education and nonprofit entities across North America. § 123A.21 at Subd. 3.

The information found on the Sourcewell website are provided for educational and informational purposes only.This information contained on the website, including any printed material derived from this website, is not legal advice and no attorney-client or other contractual relationship is formed by access to this information.Information here may be out of date, obsolete, or otherwise inaccurate.Please consult with a qualified attorney regarding any questions.

202 12th Street NE | P.O. Box 219 | Staples, MN 56479 888-894-1930 | www.sourcewell-mn.gov

4D - Attachment A

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https://www.sourcewell-mn.gov

https://www.sourcewell-mn.gov


Conduct Continued Public Hearing To Receive Comments And Authorize Executive Director To Enter Into A Purchase Agreement For A Vacant Lot On Founders Lane Between Garrett And Galaxie Avenues

In Apple Valley

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Housing Development Amount included in current budget Prepared By: Lori Zierden Budget amendment requested Contact: Kari Gill FTE included in current complement Contact Phone: 651-675-4477 New FTE(s) requested

Other:

PURPOSE/ACTION REQUESTED • Conduct and close a public hearing regarding the disposition of vacant property.• Authorize Executive Director to enter into purchase agreement for 4.77 acres located in Apple Valley.

SUMMARY The property being proposed for disposition is excess land located on Founders Lane between Garrett and Galaxie Avenues (legally described as Lot 1, Block 1 Village at Founders Circle 2nd Addition) as shown in Attachment A, Site Map.

The CDA’s real estate broker has been marketing the property since January 2020. The CDA has received four offers that would fully develop the property.

The details of the offers will be provided at the public hearing and are included in Attachment B, Summary of Offers. All four offers exceed the appraised market value. Staff’s review of all four proposals determined all would fit on the site and all of the offers received are from established, well-respected developers. Ultimately, the City of Apple Valley will need to approve the proposed project and density.

The buyers would be responsible for costs related to site due diligence including City approvals for their project. If this resolution is approved, a purchase agreement would be prepared and reviewed by the Dakota County Attorney’s Office. The Purchase Agreement will be contingent upon receiving City Approvals.

This sale is proceeding under Minnesota Statute 469.105, by which the CDA may sell property if it determines that the sale is in the best interest of the county and that the transaction furthers its general plan of economic development. Pursuant to Minn. Stat. 469.105, a public hearing must be held on the proposed terms of the sale of the property. This public hearing was scheduled by Resolution #20-6261 at the May 12, 2020 CDA Board Meeting. The Public Hearing was opened at the June 16, 2020 CDA Board meeting and will be continued at the July 14, 2020 meeting; this public hearing fulfills this requirement.

RECOMMENDATION Staff recommends authorization for the Executive Director to negotiate and enter into a purchase agreement with Roers Companies in the amount of $3,000,000 for the 4.77 acres, legally described as Lot 1, Block 1 Village at Founders Circle 2nd Addition, after approval by the Dakota County Attorney’s office.

EXPLANATION OF FISCAL/FTE IMPACT Revenue from the sale of the lot will be credited back to the original funding source.

- 46 -

Supporting Documents: Previous Board Action(s): Attachment A: Site Map 20-6261; 5/12/2020 Attachment B: Summary of Offers Attachment C: Affidavit of Publication Public Hearing Notice


Conduct Continued Public Hearing To Receive Comments And Authorize Executive Director To Enter Into A

Purchase Agreement For A Vacant Lot On Founders Lane Between Garrett And Galaxie Avenues In Apple Valley

WHEREAS, the CDA is able to dispose of property after holding a public hearing for which notice is published; and WHEREAS, pursuant to Minn. Stat. 469.105 a notice of the public hearing was published by the CDA in the Dakota County Tribune not less than ten days nor more than 30 days prior to the date of the public hearing (the Public Hearing Notice); and WHEREAS, the Dakota County CDA acquired the property through tax-forfeiture for the purpose of causing a private owner to develop high quality, Class A mixed-income residential development located on Founders Lane between Garrett and Galaxie Avenues legally described as Lot 1, Block 1 Village at Founders Circle 2nd Addition; and WHEREAS, a broker has been marketing the 4.77 acres since January 2020; and WHEREAS, the CDA has received four viable offers from MFW Properties, Roers Companies, Real Estate Equities, and Sentinel Management Company proposing a multifamily housing development; and WHEREAS, the offer from Roers Companies for an apartment building provides more funds to the CDA, is expected to close relatively quickly, will be requesting TIF assistance for the affordable units but no other financial assistance and fully utilizes the site based on density; and WHEREAS, any potential sale would be subject to receipt of City approvals for the proposed project; and WHEREAS, pursuant to Minn. Stat. 469.105, a public hearing was opened and continued on June 16, 2020; and WHEREAS, the public hearing was conducted on July 14, 2020 on the proposed terms of the sale of the property. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, that the Executive Director is authorized to negotiate with and enter into a purchase agreement with Roers Companies for $3,000,000 subject to approval as to form by the Dakota County Attorney’s office.

Executive Director’s Comments: Strategic Plan Goal: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness



- 47 -

Attachment A - Founders Lane Site

Property Information

June 9, 20200 450 900225 ft

0 130 26065 m

1:4,800

Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification.

5A - Attachment A

- 48 -

MWF ROERS REAL ESTATE EQUITIES SENTINEL MANAGEMENT COMPANY

LOI Submitted 3/6/2020 4/3/2020 5/20/2020 6/22/2020

# of Proposed Units 168 units 160-200 units 169 plus 14 3-bedroom townhome units for total of 183 units Mininium of 168 units

Purchase Price $2,400,000 $3,000,000 $2,750,000 $2,520,000

Due Diligence Timeframe 365 days 150 days 180 days 60 days

Extension Options1-365 day option for $30,000 non-refundable

deposit None 1-6 month option for $25,000 non-refundable deposit

2-30 day extensions for $12,500 for each extension

Due Diligence Contingencies Enviromental, soils, survey, title, Govt

approvals, financial approvalsEnvironmental, physical, title, regulatory,

financingEnvironmental, physical, title, regulatory,

financial Physical

Closing 30 days after expiration of contigency date

and waiver of contingencies

30 days after expiration of contigency date with option to extend 30 days for

$30,000180 after DD or estimated 6/1/2021 30 days with 2-15 day extensions for

$10,000 per extension

Potential Financing Source(s)TIF, Deferred Loans/HOPE, CDA Land Loan,

LIHTC 4% or 9% TIF but not tax credits Tax exempt bonds and TIF through Dakota CDA TIF

Brian PankratzFirst Vice President+1 952 924 [email protected]

FOUNDER'S LANE, APPLE VALLEY SUMMARY OF OFFERS

Attachment B - Summary of Offeres

5A - Attachment B

- 49 -


5A - Attachment C

- 50 -


Conduct And Close A Public Hearing To Receive Comments, Adoption Of A Housing Finance Program For An Affordable Rental Housing Development, And Authorization For The Issuance Of Housing Development

Bonds Backed By The Full Faith And Credit Of Dakota County

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Community & Economic Development Amount included in current budget Prepared By: Kathy Kugel Budget amendment requested Contact: Lisa Alfson FTE included in current complement Contact Phone: 651-675-4467 New FTE(s) requested

Other: Budgeted each fiscal year

PURPOSE/ACTION REQUESTED • Conduct and close a public hearing to receive public comments regarding a housing finance program and the

issuance by the Dakota County Community Development Agency (“CDA”) and pledge of Dakota County’s full faithand credit to the CDA’s Housing Development Bonds for an affordable rental housing project.

• Adopt the Housing Finance Program for the construction of an affordable rental housing project in West St. Paul.• Authorize the issuance, sale and delivery of Governmental Housing Development Bonds backed by the full faith

and credit of Dakota County.

SUMMARY The CDA owns a site located on the north end of Robert Street South between Annapolis Street East and Haskell Street East in West St. Paul. The application for a proposed 54-unit multifamily development (the “Project”) has been approved by the West St. Paul City Council. This Project will be the 10th building in Phase III of the Dakota County CDA Capital Improvement Plan (the “CIP”). The financing plan for Phase III CIP developments includes the issuance of bonds.

The CDA proposes to finance the construction of the Project by issuing its Governmental Housing Development Bonds in the principal amount of approximately $12,000,000 (the “New Money Bonds”). In addition, the CDA proposes to issue refunding bonds in the principal amount of approximately $25,500,000 (the “Refunding Bonds” and together with the New Money Bonds, the “2020 Bonds”) to refund the outstanding principal amount of the CDA’s Governmental Housing Development Bonds, Series 2010A, Series 2010C and Series 2010D, in order to achieve savings in debt service. The 2020 Bonds will be issued on a parity with other housing development bonds previously issued, or to be issued, to finance projects contemplated by the CIP (all together, the “Bonds”).

Revenue from the existing senior buildings, the new general occupancy building, and the CDA special benefit levy is sufficient to pay debt service on the Bonds and are expected to be sufficient to provide a debt service coverage ratio in excess of 110%. In order to further secure the 2020 Bonds and thereby reduce interest rates, and subject to the approval of the Board of Commissioners of the County, the CDA also proposes to pledge the full faith and credit of Dakota County to the Bonds. The Dakota County Board of Commissioners will hold a public hearing and vote to extend its general obligation pledge to these bonds on August 4, 2020.

Under Minnesota Statutes, Sections 469.001 through 469.047 (the “Act”), the CDA is authorized to undertake housing development projects and to issue obligations to finance such projects. The Act requires the CDA to adopt a housing finance program (the “Program”) following a public hearing as a condition to undertaking such a program and requires the CDA to hold a public hearing as a condition to issuing bonds backed by the general obligation of Dakota County. The Program provides for the development of multifamily residential rental housing project to be located in West St. Paul and the issuance of bonds backed by the County’s general obligation. Notice of this hearing was duly published in the Star Tribune on June 27, 2020. The affidavit of publication is attached.

RECOMMENDATION Staff recommends conducting and closing the public hearing, adopting the Housing Finance Program for the construction of the affordable housing rental project and authorizing the issuance, sale and delivery of the 2020 Bonds backed by the full faith and credit of Dakota County.

EXPLANATION OF FISCAL/FTE IMPACT Under the Common Bond Fund, revenue from all housing buildings is dedicated to paying debt service on all outstanding bonds. The Capital Improvement Plan for Phase III includes a financial analysis demonstrating that the projected revenues and CDA’s special benefit levy currently pledged to the Common Bond Fund are more than sufficient to make debt service payments on the proposed bonds.

- 51 -

Supporting Documents: Attachment A: Affidavit of Publication

Previous Board Action(s): 20-6627; (6/16/2020)


Conduct And Close A Public Hearing To Receive Comments, Adoption Of A Housing Finance Program For An Affordable Rental Housing Development, And Authorization For The Issuance Of Housing Development

Bonds Backed By The Full Faith And Credit Of Dakota County

WHEREAS, pursuant to Minnesota Statutes, Sections 469.001 through 469.047 (the “Act”), and particularly Section 469.034, Subd. 2, the Dakota County Community Development Agency (the “CDA”) is authorized to issue its bonds for the purpose of financing the construction of qualified housing development projects, and with the consent of Dakota County (the “County”), to pledge the County's full faith and credit to such bonds; and

WHEREAS, the Act requires a) adoption of a housing finance program, and b) approval of the issuance of bonds backed by Dakota County, Minnesota, after a public hearing, for which notice was published in a newspaper of general circulation in Dakota County at least fifteen days in advance of the hearing; and

WHEREAS, on the date hereof, the CDA held a public hearing regarding (i) the adoption of the Housing Finance Program in substantially the form attached hereto as Exhibit A (the “Program”), and (ii) the issuance of bonds backed by the full faith and credit of Dakota County pursuant to the Program; and

WHEREAS, notice of the public hearing was duly published not fewer than 15 days prior to the date hereof, and a copy of the Program was filed with the Metropolitan Council on or before the publication date; and

WHEREAS, pursuant to the Program, and Minnesota Statutes, Section 469.034, Subd. 2 (“Subd. 2”), the CDA proposes to issue its Governmental Housing Development Bonds (Dakota County, Minnesota, General Obligation), Series 2020A (the “Series A Bonds”) in an aggregate principal amount not to exceed $12,000,000, to finance the development a rental housing project (the “Project”) for low and moderate income households to be located in West St. Paul, of which will be a “qualified housing development project” within the meaning of Subd. 2; and

WHEREAS, the CDA further proposes to refund the outstanding principal amount of its Governmental Housing Development Bonds (Dakota County, Minnesota – Unlimited Tax General Obligation), Series 2010A, its Governmental Housing Development Bonds (Dakota County, Minnesota – Unlimited Tax General Obligation), Series 2010C, and its Governmental Housing Development Bonds (Dakota County, Minnesota – Unlimited Tax General Obligation), Series 2010D (together, the “Prior Bonds”), through the issuance of the CDA’s Governmental Housing Development Revenue Bonds (Dakota County, Minnesota, General Obligation), Series 2020B in an aggregate principal amount of approximately $25,500,000 (the “Series B Bonds” and, together with the Series A Bonds, the “2020 Bonds”); and

WHEREAS, the 2020 Bonds will be issued pursuant to the CDA’s Fourth Amended and Restated Basic Indenture (the “Basic Indenture”) and a Fifth Supplemental Indenture of Trust (the “Supplemental Indenture”) and secured, on a parity basis with other bonds of the CDA previously issued, or to be issued thereunder (together with the 2020 Bonds, the “Bonds”), by revenues of the Project and other senior housing facilities previously or to be financed pursuant to the Basic Indenture and certain reserves; and

WHEREAS, subject to the satisfaction of certain statutory requirements, including the approval of Dakota County, the 2020 Bonds will be further secured by the CDA’s pledge of the full faith and credit of the County, pursuant to Subd. 2; and

WHEREAS, the 2020 Bonds will be paid exclusively from amounts pledged to the payment of the Bonds pursuant to the Basic Indenture and the Supplemental Indenture (together, the “Indenture”) and shall not constitute a debt of the CDA within the meaning of any constitutional or statutory limitation, constitute or give rise to a pecuniary liability of the CDA or a charge against its general credit or taxing powers or constitute a charge, lien or encumbrance, legal or equitable upon any property of the CDA other than the revenues and amounts pledged to the payment of the 2020 Bonds pursuant to the Indenture.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, as follows:

1. That a public hearing has been conducted in accordance with applicable law and closed.

- 52 -

2. That it is in the best interest of the public health, safety and welfare of the citizens of the County that the CDA undertake the Project as described in the Program to alleviate a shortage of decent, safe and sanitary housing for low and moderate income households in the County.

3. That the Program is hereby in all respects adopted.

4. The CDA hereby finds and determines that it is necessary and in the public interest to issue the Series A Bonds to finance the Project in furtherance of the CDA's program of providing affordable rental housing to low and moderate income households and to issue the Series B Bonds and refund the Prior Bonds in order to achieve debt service savings.

5. The 2020 Bonds are being issued as tax-exempt governmental essential function bonds secured by amounts pledged to the Bonds under the Indenture, including, subject to approval by the County, the pledge by the CDA of the full faith and credit of the County. Proceeds of the Series A Bonds will be used to finance the Project, fund certain reserves and pay costs of issuance. Proceeds of the Series B Bonds will be used to refund the Prior Bonds.

6. The following documents have been submitted to the CDA for approval: a. the Supplemental Indenture; and

b. an Arbitrage Compliance Agreement, dated as of the first day of the month in which the 2020 Bonds are

issued, between the CDA, the Trustee and Baker Tilly Municipal Advisors, LLC (Baker Tilly) as rebate analyst; and

c. a Continuing Disclosure Certificate, dated as of the first day of the month in which the 2020 Bonds are issued, made by the CDA and the County, and accepted by the Trustee.

7. The CDA hereby finds, determines and declares that:

a. Based on cash flow projections prepared by Baker Tilly. on behalf of the CDA, the Revenues, County Levy and Supplemental Revenues described in the Basic Indenture (not including the full faith and credit of the County) pledged to the payment of the 2020 Bonds and the other Bonds, will equal or exceed 110% of the principal and interest due on all of the Bonds in each year throughout the respective terms thereof; and

b. The Project will constitute a qualified housing development project within the meaning of Subd. 2(e), and

will provide affordable housing for low and moderate income households; and c. The maximum principal amount of (i) the 2020 Bonds, (ii) other outstanding Bonds to which the full faith

and credit of the County have been pledged under Subd. 2, and (iii) the outstanding general obligation bonds of all cities in the County issued under Subd. 2, is $88,010,000, which does not exceed one-half of one percent of the estimated market value of the County which is $267,618,385; and

d. The construction of the Project, the delivery of the Official Statement described below, the issuance and

sale of the 2020 Bonds by the CDA, the execution and delivery of the agreements described in 6 above, and such other documents, agreements, instruments and certificates necessary or convenient in connection with the issuance of the 2020 Bonds (together, the "Agreements"), and the performance of all covenants and agreements of the CDA contained in the Agreements and of all other acts and things required under the Constitution and Laws of the State of Minnesota to make the Agreements and the 2020 Bonds valid and binding revenue obligations of the CDA and to make the 2020 Bonds valid and binding general obligations of the County, are authorized by the Act; and

e. The construction and financing of the Project for the purposes and in the manner contemplated by the

Agreements conforms or will conform to all pertinent statutes, regulations and ordinances of the State of Minnesota, the County and the CDA.

8. The CDA shall proceed forthwith to issue the 2020 Bonds in an aggregate principal amount of approximately

$37,500,000, in the forms and upon the terms determined as follows and to be set forth in the Supplemental Indenture. There is hereby delegated to a Pricing Committee comprised of the Chair and Executive Director, or their designees, acting upon advice of Baker Tilly, the financial advisor to the CDA, the authority to receive proposals at one or more times and to select the purchaser or purchasers offering the lowest net interest cost for the 2020 Bonds and to approve specific principal amounts, maturities, interest rates, redemption provisions

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and other terms of the 2020 Bonds, provided that the interest rate shall not cause the cash flow projections described above to show revenues pledged to the payment of debt service on all of the Bonds to be less than 110% of debt service due on the Bonds in each year. Each series of the Bonds shall be sold at a price determined by the pricing committee. The determinations of the Pricing Committee regarding the terms of the 2020 Bonds shall be set forth in the Supplemental Indenture, and execution and delivery of the Supplemental Indenture shall constitute conclusive evidence of the determinations made by the Committee.

The CDA reserves the right to use proceeds of the 2020 Bonds for a different qualified housing development project or projects to the extent it determines that it is in its best interest to do so, but only if such use satisfies all requirements applicable to such series of bonds under state and federal law.

9. The CDA hereby approves and authorizes execution and delivery of the 2020 Bonds and Agreements in forms approved by the Executive Director, on the advice of bond counsel and the financial advisor. Agreements which require execution by the CDA shall be executed and delivered in the name and on behalf of the CDA by the Executive Director. The 2020 Bonds shall be executed by manual or facsimile signature of the Executive Director as described in the Indenture and delivered to the Trustee for authentication and delivery to the purchaser, together with a certified copy of this resolution and other documents required by the Indenture.

10. Subject to the approval of the County, the CDA will pledge the full faith and credit and taxing power of the

County to the payment of the 2020 Bonds pursuant to the Supplemental Indenture and Subd. 2.

11. The CDA hereby consents to the distribution and the use in connection with the sale of the 2020 Bonds of preliminary and final official statements in forms to be approved by the Executive Director (the "Official Statements") a draft of which will be provided to the Commissioners prior to the distribution thereof. The Official Statements are the sole materials consented to by the CDA for use in connection with the offer and sale of the 2020 Bonds.

12. All actions of the members, employees and staff of the CDA heretofore taken in furtherance of the Project and issuance of the 2020 Bonds are hereby approved, ratified and confirmed.

13. The Executive Director and any officers of the CDA are authorized and directed to prepare and furnish when the 2020 Bonds are issued, certified copies of all proceedings and records of the CDA relating to the 2020 Bonds and such other affidavits and certificates (including but not limited to those required by bond counsel) as may be required to show the facts relating to the legality, marketability and tax exemption of the 2020 Bonds, as such facts appear from the books and records in said officer's custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the CDA as to the truth of all statements made by the CDA and contained therein.

14. In the event the Executive Director or any officers of the CDA authorized to execute documents on behalf of the CDA under this resolution shall for any reason be unable or unavailable to do so, the Deputy Executive Director or any member of the Board of Commissioners of the CDA is hereby directed and authorized to do so on behalf of the CDA, with the same effect as if executed by the Executive Director or such officer authorized to do so in this resolution.

15. There may be deposited as described under the Supplemental Indenture, in addition to proceeds of the 2020 Bonds, amounts identified therein to pay certain costs of the Project.

16. The Executive Director, or his designee, is authorized and directed to take all actions necessary or convenient to develop the Project and administer the program financed pursuant to the Basic Indenture, including, but not limited to, from time to time executing and delivering amendments to the Agreements which are necessary or convenient and which do not require the approval of the holders of any of the Bonds and which do not adversely affect the interests of the CDA.

17. The refunding of the Prior Bonds is hereby approved, and the Executive Director, or his designee, is authorized and directed to take all actions necessary or convenient to redeem the Prior Bonds within not fewer than 60 days following the date of issuance of the Series B Bonds.

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EXHIBIT A

DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY

HOUSING FINANCE PROGRAM

Pursuant to Minnesota Statutes, Sections 469.001 through 469.047 (the “Act”), the Dakota County Community Development Agency (the “CDA”) is authorized to undertake housing development projects and to issue its revenue bonds to finance such projects. Minnesota Statutes, Section 469.0171, requires the adoption of a housing finance program as defined in Minnesota Statutes, Section 462C.04 and 462C.05, prior to the issuance of bonds to finance housing development projects. The CDA proposes to undertake this Financing Program (the “Program”) to finance the construction of a 54-unit rental housing development which is expected to be located in West St. Paul, but which, in the discretion of the CDA, may be located in any other jurisdiction within Dakota County (the “Project”). The Project is designed for occupancy by low and moderate income households, and will be owned by the CDA. The CDA may provide financing for the Project through the issuance of one or more series of housing development bonds in an aggregate principal amount estimated to be $12,000,000 (the “Bonds”), which subject to satisfaction of procedural requirements and the approval of Dakota County (the “County”) may be backed by the full faith and credit of the County in accordance with Minnesota Statutes, Section 469.034, Subd. 2. The Bonds may also be secured by a lien on the Project, a pledge of revenues of the Project, and a portion of the CDA’s annual special benefits tax levy. The Bonds may also be secured by a pledge of revenues of other multifamily housing developments owned and operated by the CDA. The Project will be held for occupancy by low and moderate income households to the extent required by Section 469.034, Subd. 2. Project rents will provide affordable housing to households who would not be served by the private housing market. The CDA has determined that constructing the Project and financing the same pursuant to this Program is in the best interest of the public health, safety and welfare of the people of the County. Section A. Program For Financing the Project. The CDA is establishing this Program to provide financing for the construction of the Project at such costs and upon such other terms and conditions as may be determined by the CDA in accordance with the Act. The proceeds of the Bonds will be applied by the CDA to finance the construction of the Project, to fund required reserves and to pay the costs of issuing the Bonds. The cost of the Project may change between the date of preparation of this Program and the date of issuance of Bonds and the principal amount of the Bonds may be adjusted accordingly. Section B. Local Contributions To The Program. The CDA expects to pay certain administrative costs of the Program from Bond proceeds and revenues generated by the Project. As described above, the Bonds may be backed by the full faith and credit of the County in accordance with Minnesota Statutes, Section 469.034, Subd. 2, a pledge of revenues of the Project, a portion of the CDA’s annual levy and a lien on and pledge of revenues relating to other multifamily housing development projects owned and operated by the CDA. The CDA may hire additional staff to act as project managers and may employ a caretaker for the Project. Section C. Standards and Requirements Relating to the Financing of the Project Pursuant to the Program. The following standards and requirements shall apply with respect to the operation of the Project by the CDA: (1) The CDA will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, or status with regard to public assistance or disability. (2) The Project will be constructed in accordance with applicable zoning ordinances or other applicable land use regulations, including the state building code as set forth under Minnesota Statutes, Section 16.83, et seq. (3) Housing units in the Project will be occupied or held for occupancy by low and moderate income households, as determined by the CDA pursuant to Minnesota Statutes, Section 469.012, subd. 1i, to the extent required by Minnesota Statutes, Section 469.034, Subd. 2. Section D. Issuance of Bonds. To finance the Project pursuant to this Program, the CDA expects to issue the Bonds. It is anticipated that the Bonds issued under this Program will have a maturity not exceeding 40 years and will bear interest at the rate not exceeding 6.5% per annum, however the Bonds will, of course, be priced to the market at the time of issuance.

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Section E. Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the CDA or otherwise illegal or inoperative by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions.

Section F. Amendment. The CDA shall not amend this Program, while Bonds authorized hereby are outstanding, to the detriment of the holders of such Bonds.

Section G. Volume Cap. None of the state volume cap for private activity bonds will be applied for with respect to the Bonds.




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AFFIDAVIT OF PUBLICATION

STATE OF MINNESOTA )

COUNTY OF HENNEPIN )

1. (S)He is and during all times herein stated has been an employee of the Star Tribune Media CompanyLLC, a Delaware limited liability company with offices at 650 Third Ave. S., Suite 1300, Minneapolis,Minnesota 55488, or the publisher's designated agent. I have personal knowledge of the facts stated inthis Affidavit, which is made pursuant to Minnesota Statutes §331A.07.

2. The newspaper has complied with all of the requirements to constitute a qualified newspaper underMinnesota law, including those requirements found in Minnesota Statutes §331A.02.

3. The dates of the month and the year and day of the week upon which the public noticeattached/copied below was published in the newspaper are as follows:

650 3rd Ave. S, Suite 1300 | Mineapolis, MN | 55488

Dates of Publication

Terri Swanson, being first duly sworn, on oath states as follows:

Advertiser Account # Order #

StarTribune 06/27/2020 KUTAK ROCK 1000089451 359912

$459.204. The publisher's lowest classified rate paid by commercial users for comparable space, asdetermined pursuant to § 331A.06, is as follows:

5. Mortgage Foreclosure Notices. Pursuant to Minnesota Statutes §580.033 relating to the publication

of mortgage foreclosure notices: The newspaper ’s known office of issue is located in Hennepin County.

The newspaper complies with the conditions described in §580.033, subd. 1, clause (1) or (2). If the

newspaper’s known office of issue is located in a county adjoining the county where the mortgaged

premises or some part of the mortgaged premises described in the notice are located, a substantial

portion of the newspaper’s circulation is in the latter county.

FURTHER YOUR AFFIANT SAITH NOT.

Subscribed and sworn to before me on:

Notary Public

06/29/2020

5B - Attachment A

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Authorization For The Executive Director To Execute a Construction Contract For Gateway Place Housing Development Located In West St. Paul

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Housing Development Amount included in current budget Prepared By: Lori Zierden Budget amendment requested Contact: Kari Gill FTE included in current complement Contact Phone: 651-675-4477 New FTE(s) requested

Other:

PURPOSE/ACTION REQUESTED • Authorize Executive Director to execute a construction contract.• Authorize Deputy Executive Director to execute change orders.

SUMMARY On May 28, 2020 at 2:00 p.m. a formal bid opening was held for the construction of Gateway Place Housing Development at the Dakota County CDA office. Gateway Place will be a 54-unit apartment building located on South Robert Street at the corner of Annapolis Street in West St. Paul.

A number of contractors picked up plans, bids were received from five general contractors as shown in Attachment A: Bid Tabulation. RJM Construction, LLC and Tri-Construction, acting as a joint venture, (the “joint venture”) submitted the low bid of $8,750,648 when Alternates #2 (BIBS Insulation $7,095), #3 (Storage unit system at parking stall $41,205) and #4 (Diamond Kote finish on LP product $5,348) are accepted. After conferring with the Dakota County Attorney’s Office, it was determined that the CDA should accept the bid from the joint venture, which is the lowest responsive bid.

The pre-bid estimate for the cost of construction was $9,425,000, and the joint venture bid with the recommended alternates is $8,750,648.

RECOMMENDATION Staff recommends that Alternate 2 (BIBS Insulation), Alternate 3 (Storage unit system at parking stall) and Alternate 4 (Diamond Kote finish on LP product) be included in the contract. Staff further recommends that the CDA Board authorize the Executive Director to enter into a construction contract with the joint venture in the amount of $8,750,648.

In a project of this size, it is possible there may be a number of change orders that would result in minor changes in the project. To deal with these change orders efficiently to avoid delays in construction, it is recommended that the Deputy Executive Director be authorized to approve additional change orders up to $350,025 (4% of the contract amount).

It is anticipated that the project would begin during August 2020 with occupancy estimated for late summer 2021.

EXPLANATION OF FISCAL/FTE IMPACT Funds will be available from the Housing Development Bonds backed the full faith and credit of Dakota County to be issued for the construction of this project.

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Supporting Documents: Previous Board Action(s): Attachment A: Bid Tabulation Attachment B: Public Notice-Affidavit of Publication


Authorization For The Executive Director To Execute a Construction Contract

For Gateway Place Housing Development Located In West St. Paul

WHEREAS, formal bids were received on May 28, 2020 for the construction of the Gateway Place Housing Development in West St. Paul; and WHEREAS, RJM Construction, LLC and Tri-Construction, acting as a joint venture, (the “joint venture”) is the low responsive and responsible bidder; and WHEREAS, the additional costs incurred for bid alternates must be balanced against the potential benefits to residents of the project and the most effective use of public funds; and WHEREAS, the bid submitted by the joint venture, including alternates 2, 3, and 4, is $8,750,648, which is less than the pre-bid construction cost estimate; and WHEREAS, the Dakota County CDA will be issuing Housing Development Bonds backed the full faith and credit of Dakota County for this project providing the necessary funds. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Executive Director be authorized to sign a construction contract with RJM Construction, LLC and Tri-Construction, acting as a joint venture, in an amount of $8,750,648 which includes bid alternates #2, #3 and #4; and BE IT FURTHER RESOLVED, That the Deputy Executive Director be authorized to approve change orders in an amount not to exceed $350,025 (4% of the contract amount) for this project.

Executive Director’s Comments: Strategic Plan Goal: Recommend Action Item Type-Consent Housing and Livability Do Not Recommend Action Item Type-Discussion Community Vitality Reviewed-No Recommendation Item Type-Informational Community Connections Reviewed-Information Only Organizational Culture Submitted at Commissioner Request Financial Management



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PROJECT TITLE: Gateway Place - Phase 1

Dakota County CDA

BID CLOSE: May 28, 2020 at 2:00 PM

BIDDER AD

DE

ND

A

BID

BO

ND

BASE BID

ALT. #1

Pella Impervia

Windows

ALT. #2

Blown in Blanket

System (BIBS)

Insulation

ALT. #3

Storage Unit

System at Parking

Stall

ALT. #4

Diamond Kote

Ffinish on LP

Product

Greiner Construction X X $9,410,223 $54,752 $21,897 $52,530 $5,020

Stevens Construction No Bid

CBS Construction Services X X $9,332,000 $65,194 $8,195 $36,176 $14,784

Rachel Contracting, LLC No Bid

Copeland Building

CorporationNo Bid

Frerichs Construction No Bid

Ebert Construction X X $9,084,000 $43,000 $7,700 $35,000 $10,000

Brennan Construction No Bid

Wieser Brothers Construction No Bid

RJM Construction X X $8,697,000 $90,589 $7,095 $41,205 $5,348

Ironmark Building Company X X $9,367,000 $36,800 $10,900 $43,200 $5,500

BID TABULATION

5C - Attachment A

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Ad: 1

$161.50

DAKOTA COUNTY CDA PUBLIC NOTICE

ADVERTISEMENT FOR BIDS

The Dakota County Community Development Agency (CDA) invites prospective Bidders to submit bids for the construction of a 54-unit apartment development in West St. Paul, Minnesota. Single bids will be received for the total bid package. Sealed bids will be received at the CDA until 2:00 PM CST on Thursday, May 28, 2020. Bids received after this date and hour will be returned unopened. No telephone, email or fax bids will be accepted. Bids will be opened publicly and read aloud. Bids shall be addressed to: Kari Gill, Dakota County CDA, 1228 Town Centre Drive, Eagan, Minnesota 55123. The CDA will enforce so-cial distancing at the public hearing; only one representative per com-pany will be permitted to attend the bid opening.

Bidding Documents will be available on or about Friday, May 8, 2020. Bid Documents are available electronically on-line at www.questcdn.com (Quest eBidDoc #: 7045715). There is a download fee of $25.00. Alternatively, Bidding Documents can be viewed at local plan rooms listed on the bid register of the Quest CDB website. Plan Holders list is available at www.questcdn.com.

A certified check, cashier’s check or corporate surety bond in an amount equal to five (5%) percent of the base bid shall accompany each bid. The bid security shall be made payable to the Dakota County Community Development Agency. The bidder who is awarded the con-tract will be required to furnish a Performance Bond and a Labor and Material Payment Bond. The cost of all bonds shall be included in the Bid. The Contractor must be a responsible bidder as defined in the bid documents. This project is subject to Minnesota State Prevailing Wage requirements.

The CDA may select any combination of alternates at its own discre-tion. The CDA reserves the right to reject any and all bids received and to waive informalities and irregularities in the bidding.

Published in the Dakota County Tribune

May 8, 15, 20201043379

5C - Attachment B

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Authorization To Enter Into Agreement With NextStage To Implement A Small Business Relief Program

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Community & Economic Development Amount included in current budget Prepared By: Lisa Alfson Budget amendment requested Contact: Lisa Alfson FTE included in current complement Contact Phone: 651-675-4467 New FTE(s) requested

Other: CARES Act funding

PURPOSE/ACTION REQUESTED • Authorize the Dakota County Community Development Agency (CDA) to enter into an agreement with a

contractor, NextStage, to implement a small business relief program.

SUMMARY As part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Coronavirus Relief Fund (CRF) was established to assist States and eligible units of local government with COVID-19-related expenses. Dakota County received $52 million of CARES CRF dollars from the State of Minnesota. One of the eligible uses of CRF dollars is providing grants to small businesses to reimburse the costs of business interruption caused by required closures related to the COVID-19 pandemic.

The CDA has been working closely with Dakota County on the development of a small business relief program, which would provide Dakota County eligible businesses with a one-time emergency grant up to $10,000 for eligible expenses. The County Board is anticipated to act on the creation of a small business relief program at its July 14, 2020 meeting. If the County Board creates the program, as many as 10,000 businesses could apply for the funds.

Due to the anticipated volume of applications, CDA staff believes it would be prudent to obtain the services of a third-party administrator to implement a small business relief program. CDA’s current staff and technological capacities are not sufficient to handle the expected number of businesses that would be eligible to seek assistance. The CDA has received a Scope of Service and Fee Schedule (Attachment A) from NextStage, a Minnesota non-profit organization, to implement a small business relief program. NextStage has provided technical assistance to the $20 million Hennepin County Small Business Relief Fund and is currently implementing the Scott County Small Business Relief Fund.

NextStage has a well-developed technology platform, processes, and staff capacity in place to assist Dakota County and the CDA with a multi-million dollar small business relief program to be completed before calendar year end.

There is an immediate need for this service that cannot be met with other procurement methods and that the service contracted for are limited to those necessary to meet the emergency facing small businesses.

RECOMMENDATION CDA staff recommends the Executive Director be authorized to enter into a contractual agreement with NextStage for the implementation of a small business relief program, based upon the NextStage Scope of Service and Fee Schedule, subject to approval by the County Attorney’s Office as to form.

EXPLANATION OF FISCAL/FTE IMPACT Administration of a small business relief program will be funded with Dakota County CARES CRF funds.

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Supporting Documents: Previous Board Action(s): Attachment A: Contractor Scope of Service & Fee Structure

Authorization To Enter Into Agreement With NextStage To Implement A Small Business Relief Program WHEREAS, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Coronavirus Relief Fund (CRF) was established to assist States and eligible units of local government with COVID-19-related expenses; and

WHEREAS, Dakota County received $52 million of CARES CRF dollars from the State of Minnesota; and

WHEREAS, one of the eligible uses of CRF dollars is providing grants to small businesses to reimburse the costs of business interruption caused by required closures related to the COVID-19 pandemic; and

WHEREAS, the Community Development Agency (CDA) has worked closely with Dakota County on the development of a small business relief program to assist eligible businesses with one-time emergency grants up to $10,000 for eligible expenses; and

WHEREAS, due to the anticipated volume of applications for a small business relief program, CDA staff believes it would be prudent to obtain the services of a third-party administrator to implement a small business relief program; and

WHEREAS, the CDA has received a Scope of Service and Fee Schedule from NextStage, a Minnesota non-profit organization, to implement a small business relief program; and

WHEREAS, NextStage has provided technical assistance to the $20 million Hennepin County Small Business Relief Fund and is currently implementing the Scott County Small Business Relief Fund; and

WHEREAS, NextStage has a well-developed technology platform, processes, and staff capacity in place to assist Dakota County and the CDA with a multi-million small business relief program to be complete before year end; and

WHEREAS, there is an immediate and serious need for this service that cannot be met with other procurement methods and that the service contracted for are limited to those necessary to meet the emergency facing small businesses.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners that the Executive Director is authorized and directed to enter into a contractual agreement with NextStage for the implementation of a small business relief program, based upon the NextStage Scope of Service and Fee Schedule, subject to approval by the County Attorney’s Office as to form.




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NextStage Proposal

to administer

The Dakota County Business Relief Program 2020

July 1, 2020

This document is an outline of a possible Scope of Service and Fee Structure for NextStage to assist Dakota County (the County) and the Dakota County Community Development Agency (the CDA) with the set-up and delivery of the Dakota County Business Relief Program. This draft was based on the program details provided in the Dakota County Small Business Relief Program (Proposed Guidelines), and incorporates NextStage’s direct experience in design, operationalization, and implementation of a similar program- the Hennepin County Small Business Relief Fund- a program utilizing similar eligibility criteria, and compliance requirements attached to its funding source- the federal CARES Act.

This document is a draft, and intended for discussion purposes; we welcome the opportunity to discuss, clarify and negotiate all aspects of this proposal to meet the County’s needs. Thank you for your consideration:

Sincerely,

Lee Hall, CEO

NextStage

PROGRAM PHASES:

I. Application ManagementII. Review of Eligibility

III. Grant Closing & Agreements for Approved GrantsIV. Disbursement of Grant FundsV. Grant Audits

VI. Program Reporting

Application Management:

Application Development - NextStage will design an application for the Dakota County Small Business Relief Program that captures contact and business data necessary to pre-sort for initial eligibility, and to contact selected applicants to initiate the confirmation and agreement process. At the CDA’s request, NextStage can include demographic or survey questions the County/CDA would like to gather on all applicants - either for survey purposes or to establish preferences in awards.

5D - Attachment A

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Application Delivery - NextStage will publish and host the application on-line, and electronically gather all application responses into a sortable spreadsheet. NextStage will supply IT support and maintain the underlying architecture for the application portal, but provide will page links and access to the County- and any designated County partners - in order to share and publicize the program.

Application Review and Selection- At the designated closing time for the application, NextStage will sever the portal link and conduct a high-level review of applications for eligibility, removing duplicate applications and those with obvious disqualifiers- such as a location not in Dakota County. NextStage will randomize the remaining list, and assign each application a unique file number. The CDA at its discretion can pre-set parameters for the selection process - identifying either application criteria to give preference in a broad sorting, or sub-dividing the list and awarding sub-grouping based on those divisions. Along with a witness/witnesses designated by the CDA, NextStage will conduct the selection based on either a straight randomization, or utilizing a set of rules of preference or distribution devised by the CDA.

Applicant Notification - Utilizing language and messaging approved by the CDA, NextStage will notify applicants identified by the randomization of their initial selection, and instruct them on the requirements and process for confirming eligibility. NextStage will notify all applicants not initially selected that they have been placed on a waitlist and will be notified if a slot or funding opens up.

Review of Eligibility:

NextStage will manage the collection and review of client documentation confirming program and grant eligibility as defined by the County’s program rules, and any requirements tied to the funding source. NextStage will create a secure platform to allow clients to upload documents demonstrating eligibility, and retain and store those documents for six (6) years (or a time period requested by the County).

NextStage will provide selected applicants with an outline of required program documents, a preliminary eligible budget template and certifications, and a secure link to upload those materials. Each applicant will be assigned to a member of NextStage’s Review Team, who will conduct follow-up and outreach with applicants, assist with identifying and gathering the necessary documentation, and answer any questions the applicant may have.

For each selected applicant, a NextStage Reviewer will confirm the legal name of the business and its status as active and in good standing with the Secretary of State, confirm and note the physical address in Dakota County the applicant conducts business from, and confirm client eligibility in each category defined by the County’s program guidelines - noting the source document utilized in the confirmation of each.

A NextStage Reviewer will collect a proposed use of funds budget for each qualified applicant, and provide technical assistance to applicants to determine a final grant budget reflective of that business’ eligible expenses. The Reviewer shall notify the applicant of the final approval, and note the qualified grant amount in the approval in order to facilitate generation of grant agreements.

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Where an applicant is deemed unqualified based on program criteria, NextStage shall notify the applicant, provide the reason and basis for disqualification, and either confirm the disqualification if accurate, or work with the applicant to identify additional documentation to establish qualification.

NextStage will track and report on the type and nature of documents used to confirm each eligibility point, and will retain those documents for program audit for a period of six (6) years. At no point will client tax returns, payroll documents or other personal or financial records pass through County control nor will NextStage deliver source documents or specifics of those documents to County or CDA staff and/or elected officials in order to maintain an arms-length relationship between business applicants, and County/CDA officials, and to protect client data privacy.

Grant Closing & Agreements for Approved Grants:

NextStage shall produce individual grant agreements for each approved grant recipient based on an agreement format provided by the County/CDA. NextStage will conduct a virtual closing with each client, securing an electronic signature on the agreement through DocuSign, and collecting the grant budget, payment instructions, and any other closing documents deemed necessary by the County/CDA. NextStage will deliver those agreements and attachments to the County/CDA for payment in whatever format requested.

Alternately, at the County/CDA’s direction, NextStage can prepare and deliver a list of confirmed qualified applicants and necessary data points in a format acceptable to the County/CDA to facilitate the County/CDA’s drafting of grant agreements should they choose to manage that step in the process in-house.

Disbursement of Grant Funds:

This proposal assumes that the disbursement of funds is to be conducted/controlled by the County/CDA. NextStage will assist in gathering any relevant tax and bank forms necessary to facilitate those payments, to be delivered in a manner acceptable to the County/CDA.

If requested, NextStage has the capability to issue payments to approved applications by bank ACH; procedures, authorization and cost for doing so would need to be established prior to the start of program funding.

Grant Audits:

Within approximately 90 days of the closing of the grant round, NextStage would conduct an audit of a percentage of grant recipients to determine and document eligible use of grant funds. NextStage will contact businesses selected for audit, and – utilizing the grant budget included in the grant agreement and certified by the grantee - request evidence of expense and payment equal to, or greater, than the total grant award, and consistent with program eligible expenses.

NextStage will retain the grantee’s audit documentation alongside their eligibility documents for the agreed upon retention period.

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Upon completion of all audits, NextStage will issue a report to the County/CDA detailing the finding of those audits, including number and percentage of grantee pass/fails, and total dollars and percent of total grant dollars vs confirmed grant-eligible expenses.

The number or percentage of total grantees to be audited should be determined by the County/CDA. However, audit and expense confirmation will be time consuming, and detailed work, and - as grantees will already have the funds in hand - there are limited incentives to apply to encourage timely compliance. For a large-scale program, it will be expensive and impractical to audit all or even most grants. The County/CDA and NextStage should agree on a percentage/count for audit that provides a meaningful sample of data, but we would recommend a number between 5-10% of recipients depending on total number of awards.

Program Reporting:

Upon completion of the application, review, award and audit stages, NextStage will issue a final report to the County/CDA summarizing the project, detailing all recipients, and providing some level of data analysis. NextStage will work with County/CDA staff to determine potential datapoints, but these may include:

• Total number of awards, total dollars awarded. • Break-down of recipients by City, Industry, Revenue and Employment. • Demographic breakdown of applicant pool vs final award pool. • Percent of applicants determined ineligible in review, and breakdown of reason for ineligibility.

EXPECTED TIMELINE:

• Program Design, Operationalizing Requirements and Standards- 1 Week • Application Design, Public Advertising of Grant Opportunity- 2 Weeks • Open Application Period- 2 Weeks • Initial Data Review and Cleaning, Sort and Selection of Applicants- 2 Days • Secure Portal File and Access Link Generation, Client notifications and Secure Invitation- 5 Days • Application Assistance, Eligibility Review, Grant Documentation and Closing- 4- 6 Weeks • Performance of Eligible Expense Audits- 2-4 Weeks • Final Report- 1 Week

Estimated Term of Program: 13-17 Weeks.

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COMPENSATION PROPOSAL:

Task Description Task Rate Grant Count

200 500 1000 Application Management $10,000 $ 10,000.00 $ 10,000.00 $ 10,000.00 Eligibility Review & Documentation $200/Grant $ 40,000.00 $ 100,000.00 $ 200,000.00 Grant Agreement Generation and Closing $75/Grant $ 15,000.00 $ 37,500.00 $ 75,000.00 Grant Eligible Use Audit $250/Grant $ 5,000.00 $ 12,500.00 $ 25,000.00 Final Report $3,000 $ 3,000.00 $ 3,000.00 $ 3,000.00 Overhead/Admin 10% $ 7,300.00 $ 16,300.00 $ 31,300.00 Total Proposed Fee $ 80,300.00 $ 179,300.00 $ 344,300.00 Percent of Program @ $10,000/Grant 4.02% 3.59% 3.44%

ORGANIZATION

NextStage

Overview & Experience:

NextStage is a Minnesota non-profit corporation, focused on providing support, training and financing assistance to Twin Cities metro area entrepreneurs through their planning, start-up and growth phases. While NextStage is a relatively new organization, it is the collaboration of individuals with significant experience assisting entrepreneurs, and managing and community economic development initiatives-including training programs, portfolio management, and the design and delivery of community economic development programs in partnership with City and County Development Authorities throughout the Twin Cities.

Since early May, NextStage has provided technical assisting with the delivery of the Hennepin County Small Business Relief Fund, a $20 million initiative to provide small grants to local businesses that meet program eligibility. NextStage staff is managing the applicant data, collecting and reviewing eligibility documentation, and drafting and closing on grant agreements for County funding. We anticipate completing the review and agreement closing phases of this project by mid-July.

NextStage is currently assisting the Scott County CDA in the launch of the Scott County Small Business Recovery Fund. NextStage consulted with CDA staff on overall program design, and will serve as the principal program manager for the fund. This includes application design and collection, sorting and selection, review and confirmation of eligibility, agreement generation and closing, and fund distribution. The Scott County Small Business Recovery Program is set to open in early July, with program delivery expected to take 2-3 months.

Capacity:

At present, NextStage has two full-time staff, and five part-time Reviewers working on the Hennepin County program. As systems and processes have become refined, NextStage has been able to move more than 200 applications a week through review, document generation and closing. With the significant work on the Hennepin County program expected to wrap up by mid-July, the organization will

- 69 -

shift a portion of its focus and capacity to servicing the Scott County program. However, the Scott County program essentially mirrors the Hennepin County program in terms of NextStage’s responsibilities, and is significantly smaller in scale. NextStage has the existing capacity to launch and manage a similar program alongside the Scott County program, and has the platform to add additional processors to manage an even larger volume of applications if necessary.

The larger challenge from a capacity standpoint is program administration, including the management of program data, generating individual grant documents, and conducting virtual closings. Should NextStage be selected to provide program assistance to Dakota County, and that timeline would overlap with its commitment to Scott County, NextStage has identified and negotiated terms for a highly qualified candidate to join NextStage’s team as an additional Program Administrator.

Key Staff:

Lee Hall - CEO, has worked in the Community Development field for more than 20 years. In addition to providing hands-on assistance and training to thousands of new and growing entrepreneur ventures, he has designed, managed and directly administered multiple local and regional economic development and small business-focused initiatives in partnership with City and County-level development authorities throughout the Twin Cities. In his career he has served as the Chief Financial and Operating Officer of the Business Initiative Development Center (BIDC), and The Metropolitan Consortium of Community Developers (MCCD) where he supervised a staff of 15 , and was responsible for broad financial management- including general accounting, tracking and reporting on private and governmental grants, and audit compliance. Prior to entering the non-profit field, Lee worked as a commercial lender for a regional bank, and as a Contract CFO for multiple small to mid-sized businesses.

Lee will act as the Overall Project Manager. He will provide general supervision, and quality control at each stage of the process; act as the principle liaison between the County and NextStage, and directly manage the organization and flow of application and program data including the generation and closing of grant agreements.

Kris Maritz - Business Advisor, has over 30 years of experience in finance, management, strategic and business planning for both local and international organizations. She holds a B.A. in Political Science from the University of Missouri-Columbia and an M.B.A. in Finance from the George Washington University in Washington, D.C. Kris specializes in loan packaging, real estate financing and works with start-ups as well as expanding businesses. Kris’ previous non-profit lending experience includes the Metropolitan Consortium of Community Developers (MCCD) where she was a Business Advisor for the Open to Business Program for 13 years, African Development Center (ADC), City of Minneapolis Community Planning & Economic Development (CPED), and Metropolitan Economic Development Association (MEDA).

Kris will act as the full-time Senior Reviewer on this project, providing direct application review, and managing and supporting the Review Team.

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Natalia Pretelt - Business Advisor, has worked with small businesses locally and nationally since 2003. Natalia has an MBA from the University of St. Thomas, and is a member of Wells Fargo’s SBA department where she packages and documents small business loan applications for compliance with and submission to the SBA. Natalia’s previous experience includes serving as the Loan Program Manager for another non-profit CDFI lender, where she was responsible for all closing and servicing aspects of the organization’s portfolio, including generating closing documents, filing and perfecting security agreements, managing and posting loan payments, and conducting collection activities.

Natalia has been assisting NextStage’s Review Team with the Hennepin County program on a contract basis. In order to effectively manage programs for Scott and Dakota Counties simultaneously, Natalia would shift into a grant management role, which would utilize her extensive experience in loan documentation and management, and provide additional capacity and back-up for the agreement and closing functions.

GeekLogic- NextStage’s Technology Partner, leverages 12+ years of strategic planning, design, and solution implementation. The firm specializes in building systems for its clients that fit their specific needs, and helps them leverage those tools to streamline their business for efficiency and growth.

GeekLogic has extensive experience partnering with municipalities, having worked with and provided information technology support to the City of Pismo Beach, the City of San Luis Obispo, and the City of Ventura, California. Most recently GEEKLOGIC has been assisting NextStage in creating the cloud-based architecture and multi-client communication necessary to setup and deliver the Hennepin County Small Business Relief Fund.

Program Reviewers - At present, NextStage is utilizing a team of five Reviewers to communicate with applicants and gather eligibility documents, review application materials, and clear applications for closing. NextStage’s IT systems allow these individuals to work securely from their own location, and on their own schedule. Our systems are easily scalable to add additional support to meet a higher volume of applications.

The Review Team consists of finance professionals, consultants, and entrepreneurs who have the necessary understanding and familiarity with the tax and payroll documents being provided by the applicants to confirm eligibility, and were recruited Lee and Kris’ extensive professional networks. Three of the five current Reviewers are bilingual (Spanish), and NextStage is contracting with a Program Assistant to assist the Review Team with contact and translation for Somali business owners.

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Insurance and Liability:

NextStage maintains the following coverage types and amounts relevant to this proposal:

NEXTSTAGE INSURANCE COVERAGES

(1) Commercial General Liability (CGL)

General Aggregate $2,000,000 Products—Completed Operations Aggregate $2,000,000 Personal and Advertising

Injury Each Occurrence—Combined Bodily Injury and Property Damage

$1,500,000 $1,500,000

(2) Workers’ Compensation and Employer’s Liability

Workers’ Compensation Employer’s Liability: Bodily injury by accident—Each Accident

Employer’s Liability: Bodily injury by Disease—Policy Limit Employer’s Liability: Bodily injury by Disease—Each Employee

Statutory $500,000 $500,000 $500,000

(3) Professional Liability (PL/E&O) Per Claim Aggregate

$1,000,000 $2,000,000

REFERENCES:

For information on NextStage’s performance on a similar project, please contact:

Patricia Fitzgerald

Community and Economic Development Manager

Housing and Economic Development | Hennepin County

working remotely: 612-532-4588

[email protected]

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CDA COVID-19 Response And Executive Director’s Update – Informational

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Administration Amount included in current budget Prepared By: Kaili Braa Budget amendment requested Contact: Tony Schertler FTE included in current complement Contact Phone: 651-675-4432 New FTE(s) requested Other:

PURPOSE/ACTION REQUESTED • Update on agency response to COVID-19. • Preview of items for the August 18, 2020 CDA Board meeting and other agency updates.

SUMMARY Executive Director Tony Schertler will provide an update on the CDA’s business operations response to COVID-19.

A preview of items that will be on the August 18, 2020 CDA Board meeting agenda will also be provided.

RECOMMENDATION N/A – Informational Only





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Closed Executive Session: Executive Director Mid-Year Performance Evaluation

Fiscal/FTE Impact: Meeting Date: 7/14/2020 None Department: Administration Amount included in current budget Prepared By: Sara Swenson Budget amendment requested Contact: Tony Schertler FTE included in current complement Contact Phone: 651-675-4433 New FTE(s) requested Other:

PURPOSE/ACTION REQUESTED • Hold a closed executive session. SUMMARY The Dakota County Attorney has advised that prior to closing a CDA Board meeting, pursuant to the Open Meeting Law, Minn. Stat. Ch. 13D, the Board must resolve by majority vote to close the meeting. RECOMMENDATION The Executive Director has recommended that a closed executive session be held during the CDA Board meeting on July 14, 2020, to discuss the following:

• Evaluate the mid-year performance of the Executive Director. The Executive Director has agreed to the closed executive session for this purpose.

EXPLANATION OF FISCAL/FTE IMPACT None.

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Supporting Documents: Previous Board Action(s):


Closed Executive Session: Executive Director Mid-Year Performance Evaluation

WHEREAS, upon adoption of a resolution by majority vote, the CDA Board is authorized, pursuant to Minn. Stat. § 13D.05 3(a), to hold a closed executive session to discuss the performance of an individual who is subject to its authority; and WHEREAS, the CDA Board of Commissioners desires to meet to discuss the performance of the Executive Director. NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Community Development Agency Board of Commissioners hereby closes the CDA Board meeting on July 14, 2020 to discuss the performance of the Executive Director.

Executive Director’s Comments: Strategic Plan Goal: Recommend Action Item Type-Consent Housing and Livability Do Not Recommend Action Item Type-Discussion Community Vitality Reviewed-No Recommendation Item Type-Informational Community Connections Reviewed-Information Only Organizational Culture Submitted at Commissioner Request Financial Management



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293 43 294

MEMOJuly 10, 2020

TO: CDA Board of Commissioners Dakota County Manager and Physical Development DirectorCity Administrators & Managers

FROM: Tony Schertler, Executive Director

RE: Status Report ‐ Quarter 2, 2020

_________________________________________________________________________________________

This Status Report provides summary information on the use of affordable housing and community development programs in Dakota County. The Status Report reflects statistics through the second quarter of 2020 and not the entire life of programs. As a reference tool, the appendix has an explanation of each program.

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Dakota County • Quarter 2, 2020

Statistics through June 30, 2020

as of March 31 as of June 30 ⁺⁄₋

Development-Based Housing ProgramsElderly/

DisabledYouth/ Family

Elderly/ Disabled

Youth/ Family

Previous Quarter

CDA Housing Programs 1,669 831 1,669 831 0Project Based Housing Choice Vouchers 183 257 183 257 0Other Affordable Housing Programs 1100 1,730 1100 1,730 0Total Development-Based Housing Units 2,952 2,818 2,952 2,818 0

Tenant-Based Housing Programs All All⁺⁄₋

Quarter

Tenant Based Housing Choice Vouchers 2,279 2,241 -38Portable Incoming Vouchers 170 187 17Outgoing Vouchers 396 420 24Other Rental Housing Subsidy Programs 130 125 -5Total Tenant-Based Housing Vouchers 0 2,975 0 2,973 -2Tenant-based program vouchers may be used by residents of development-based housing.

Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2020 YTD

Rehab & Improvement Loans Closed 22 10 0 0 32Weatherization Projects Completed 20 0 0 0 20

First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2020 YTD

First Mortgage Loans & Downpayment 1 22 0 0 23Mortgage Credit Certificates 1 18 0 0 19Pre-Purchase Counseling 5 7 0 0 12Home Stretch Homebuyer Education 40 0 0 0 40

Graph represents monthly data.

Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2020 YTD 2019 YTD

Sheriff Sales 39 9 0 0 48 218

Notice of Pendency 157 38 0 0 195 1,420

Workforce Housing

29%

Senior Housing

59%

Youth Supportive

Housing1%

Public Housing

11%

Status Report

CDA Properties include:• 29 Senior Housing Developments• 24 Workforce Housing Developments• 1 Youth Supportive Housing

Development• 323 units Scattered Site Public Housing

Rental Assisted Housing includes:Development-Based Housing Programs • CDA Senior Housing• CDA Workforce Housing• CDA Youth Supportive Housing• Section 8 Housing Choice Vouchers• 202 Housing• 811 Housing• 236 Housing• Low Rent Housing• Non-CDA Bond Financed Housing• Non-CDA Tax Credit Housing• FMHA

Tenant-Based Housing Programs • Section 8 Housing Choice Vouchers• Continuum of Care• Bridges• Family Unification Program• Veteran Affairs Supportive Housing• Housing Trust Fund• Single Room Occupancy

Program statistics are available upon request.

Ren

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Fore

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CDA Property Portfolio

0

5

10

15

20

25

First Mortgage Loans

Mortgage Credit Certificate

Pre-Purchase Appointments

Home Stretch Course

0

10

20

30

40

50

60

70

2020 Sheriff Sales

2020 Notice of Pendency

2019 Sheriff Sales

02468

1012

Housing Rehab & Improvement

Weatherization

$99,136.75 $99,330.60

$144,169.75

$93,726.85 $71,310.63

$96,996.30 Housing Rehab Funds Spent

- 77 -

Apple Valley • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter

CDA Housing Programs 170 111 170 111 0Project Based Housing Choice Vouchers 72 56 72 56 0Other Affordable Housing Programs 215 117 215 117 0Total Development-Based Housing Units 457 284 457 284 0


Quarter

Tenant Based Housing Choice Vouchers 269 268 -1Portable Incoming Vouchers 17 18 1Other Rental Housing Subsidy Programs 14 13 -1Total Tenant-Based Housing Vouchers 300 299 -1Tenant-based program vouchers may be used by residents of development-based housing.




First Mortgage Loans & Downpayment 0 2 0 0 2Mortgage Credit Certificate Requested 0 2 0 0 2



Notice of Pendancy 24 5 0 0 29 196

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CDA Properties in Apple Valley

Senior Housing DevelopmentsOrchard Square • 50 units Cortland Square • 60 unitsCobblestone Square • 60 units

Workforce Housing DevelopmentsGlenbrook Townhomes • 39 units Chasewood Townhomes • 27 unitsQuarry View Townhomes • 45 units

Scattered Site Public Housing51 units

Other Affordable Housing in Apple Valley

Project Based VouchersApple Valley Villa • 72 senior unitsWhitney Grove Townhomes • 56 family units

Section 811 HousingApple Grove Apartments • 16 units

Non-CDA Managed Tax CreditHaralson Apartments • 36 units

Non-CDA Bond Financed HousingHidden Ponds • 19 affordable

family units of 84 total unitsHearthstone Apartments &

Townhomes • 46 affordable family units of 228 total units

Legends of Apple Valley • 163 affordable senior units

Non-CDA OtherScott-Carver-Dakota CAP Agency •

1 affordable unit0 0.5 1 1.5 2 2.5 3 3.5


Weatherization

January

February

March

April

May

June

July

August

September

October

November

December

0

0.2

0.4

0.6

0.8

1

1.2



02468

101214

2020 Sheriff Sales


2019 Sheriff Sales

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Burnsville • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter

Tenant Based Housing Choice Vouchers 521 500 -21Portable Incoming Vouchers 46 49 3Other Rental Housing Subsidy Programs 17 16 -1Total Tenant-Based Housing Vouchers 584 565 -19Tenant-based program vouchers may be used by residents of development-based housing.








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CDA Properties in Burnsville

Senior Housing Developments:Eagle Ridge Place • 60 units Park Ridge Place • 66 unitsValley Ridge • 80 units

Workforce Housing Developments:Parkside Townhomes • 22 units Heart of the City Townhomes • 34 units


Other Affordable Housing in Burnsville

Project Based Vouchers Chowen Bend Townhomes • 32 unitsCliff Hill • 32 unitsHorizon Heights • 25 units

Section 811 HousingWest Apartments • 24 unitsLeah's Apartments • 17 units

Section 236 HousingChancellor Manor • 200 units

Section 202 Housing

Ebenezer Ridge Point • 42 units

Non-CDA Managed Tax Credit Timber Ridge • 48 unitsAndrew's Pointe • 57 units

Non-CDA Bond Financed HousingGrande Market Place • 46 affordable units

of 113 total unitsDakota Station • 60 affordable units

of 150 total unitsWyngate Townhomes • 10 affordable units

of 505 total units

Non-CDA OtherCounty Road 5 - Tasks Unlimited •

6 affordable units Scott-Carver-Dakota CAP Agency •

8 affordable units


0 0.5 1 1.5 2 2.5 3 3.5


Weatherization

January

February

March

April

May

June

July

August

September

October

November

December

0

0.5

1

1.5

2

2.5



0123456789

2020 Sheriff Sales


2019 Sheriff Sales

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Eagan • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter

Tenant Based Housing Choice Vouchers 321 307 -14Portable Incoming Vouchers 22 20 -2Other Rental Housing Subsidy Programs 14 14 0Total Tenant-Based Housing Vouchers 357 341 -16Tenant-based program vouchers may be used by residents of development-based housing.








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CDA Properties in Eagan

Senior Housing DevelopmentsO'Leary Manor• 65 units Oakwoods of Eagan • 65 unitsLakeside Pointe • 60 unitsOakwoods East • 55 units

Workforce Housing DevelopmentsOak Ridge Townhomes • 42 units Erin Place Townhomes • 34 unitsNorthwood Townhomes • 42 unitsRiverview Ridge Townhomes • 27 unitsLakeshore Townhomes 50 units

Youth Supportive HousingLincoln Place • 24 units


Other Affordable Housing in Eagan

Non-CDA Bond Financed Housing Cedar Villas • 21 affordable

family units of 104 total unitsCommons on Marice • 32 affordable

senior units of 156 total unitsView Pointe Apartments • 60 affordable

units of 327 total units


8 affordable units Dakota Woodlands (Mary's Shelter) •

21 beds


0 1 2 3 4 5 6


Weatherization

January

February

March

April

May

June

July

August

September

October

November

December

0

0.2

0.4

0.6

0.8

1

1.2



0123456789

2020 Sheriff Sales


2019 Sheriff Sales

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Farmington • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter

Tenant Based Housing Choice Vouchers 50 51 1Portable Incoming Vouchers 4 5 1Other Rental Housing Subsidy Programs 8 8 0Total Tenant-Based Housing Vouchers 62 64 2Tenant-based program vouchers may be used by residents of development-based housing.








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CDA Properties in Farmington

Senior Housing DevelopmentsVermillion River Crossing • 66 units

Workforce Housing DevelopmentsTwin Ponds Townhomes • 51 units


Other Affordable Housing in Farmington

Project Based VouchersSpruce Place • 60 senior units

FMHARed Oak Manor • 37 senior unitsWestview Apartments • 60 units

Non-CDA Managed Tax CreditFarmington Family Townhomes •

28 affordable family units of 32 total units

Farmington Townhomes • 16 units

Non-CDA OtherElim Terrace • 4 affordable units

of 18 total units Dakota Woodlands (Mary's Shelter) •

21 beds


0 0.5 1 1.5 2 2.5


Weatherization

January

February

March

April

May

June

July

August

September

October

November

December

0

0.2

0.4

0.6

0.8

1

1.2



0

2

4

6

8

10

12

2020 Sheriff Sales


2019 Sheriff Sales

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Hastings • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter









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CDA Properties in Hastings

Senior Housing DevelopmentsMississippi Terrace • 40 units Rivertown Court • 63 units

Workforce Housing DevelopmentsMarketplace Townhomes • 28 units Pleasant Ridge Townhomes • 31 unitsWest Village Townhomes • 21 units


Other Affordable Housing in Hastings

Section 202 HousingOak Ridge • 109 senior units

Non-CDA Managed Tax CreditGuardian Angels Apartments &

Townhomes • 26 affordable family units of 30 total units

Artspace Hastings Lofts 37 affordable units


0 0.2 0.4 0.6 0.8 1 1.2


Weatherization

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

0

0.2

0.4

0.6

0.8

1

1.2



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2020 Sheriff Sales


2019 Sheriff Sales

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Inver Grove Heights • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter

Tenant Based Housing Choice Vouchers 176 163 -13Portable Incoming Vouchers 13 16 3Other Rental Housing Subsidy Programs 4 4 0Total Tenant-Based Housing Vouchers 193 183 -10Tenant-based program vouchers may be used by residents of development-based housing.








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CDA Properties in Inver Grove Heights

Senior Housing DevelopmentsCarmen Court • 51 units Cahill Commons • 60 unitsHillcrest Pointe • 66 units

Workforce Housing DevelopmentsSpruce Pointe Townhomes • 24 units Layfayette Townhomes • 30 unitsInver Hills Townhomes • 24 units


Other Affordable Housing in Inver Grove Heights

Project Based VouchersPrairie Estates • 40 family units

Section 236 HousingRolling Meadows Cooperative •

202 units

Non-CDA Bond Financed Housing Blackberry Pointe • 92 affordable

family units of 219 total units


0 0.5 1 1.5 2 2.5 3 3.5 4 4.5


Weatherization

January

February

March

April

May

June

July

August

September

October

November

December

0

0.2

0.4

0.6

0.8

1

1.2



01234567

2020 Sheriff Sales


2019 Sheriff Sales

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Lakeville • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter

Tenant Based Housing Choice Vouchers 160 163 3Portable Incoming Vouchers 10 16 6Other Rental Housing Subsidy Programs 7 4 -3Total Tenant-Based Housing Vouchers 177 183 6Tenant-based program vouchers may be used by residents of development-based housing.








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CDA Properties in Lakeville

Senior Housing DevelopmentsWinsor Plaza • 64 units Main Street Manor • 51 unitsCrossroads Commons • 87 unitsArgonne Hills 62 units

Workforce Housing DevelopmentsCountry Lane Townhomes • 29 units Prairie Crossing Townhomes • 40 unitsMeadowlark Townhomes • 40 unitsCedar Valley Townhomes • 30 units Keystone Crossing • 36 units


Other Affordable Housing in Lakeville

Section 202 Housing Fairfield Terrace • 24 units

Non-CDA Managed Tax CreditLakeville Court Apartments • 50 unitsLakeville Pointe • 49 units

Non-CDA OtherScott-Carver-Dakota • 4 affordable units


0 1 2 3 4 5 6


Weatherization

JanuaryFebruaryMarch

AprilMayJuneJulyAugustSeptember

OctoberNovemberDecember

00.10.20.30.40.50.60.70.80.9

1



01234567

2020 Sheriff Sales


2019 Sheriff Sales

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Mendota Heights • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter









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CDA Properties in Mendota Heights

Senior Housing DevelopmentsParkview Plaza • 65 units Village Commons • 60 units

Workforce Housing DevelopmentsHillside Gables Townhomes • 24 units

Scattered Site Public Housing1 unit

Other Affordable Housing in Mendota Heights

Project Based VouchersDakota Adults • 12 handicapped units


0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1


Weatherization

January

February

March

April

May

June

July

August

September

October

November

December

00.10.20.30.40.50.60.70.80.9

1



0

0.5

1

1.5

2

2.5

2020 Sheriff Sales


2019 Sheriff Sales

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Rosemount • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter









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CDA Properties in Rosemount

Senior Housing DevelopmentsCameo Place • 44 unitsCambrian Commons • 60 units

Workforce Housing DevelopmentsCarbury Hills Townhomes • 32 unitsPrestwick Place • 40 units


Other Affordable Housing in Rosemount

Project Based VouchersRosemount Plaza • 39 senior unitsRosemount Greens • 28 family units

Non-CDA Bond Financed Housing Waterford Commons • 23 affordable units

of 106 total units

Non-CDA Managed Tax CreditPark Place • 36 units


0 0.2 0.4 0.6 0.8 1 1.2


Weatherization

January

February

March

April

May

June

July

August

September

October

November

December

00.10.20.30.40.50.60.70.80.9

1



0123456789

10

2020 Sheriff Sales


2019 Sheriff Sales

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South St. Paul • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter

Tenant Based Housing Choice Vouchers 226 229 3Portable Incoming Vouchers 14 15 1Other Rental Housing Subsidy Programs 29 28 -1Total Tenant-Based Housing Vouchers 269 272 3Tenant-based program vouchers may be used by residents of development-based housing.








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CDA Properties in South St. Paul

Senior Housing DevelopmentsRiver Heights Terrace • 54 units Dakota Heights • 56 unitsThompson Heights • 60 units

Other Affordable Housing in South St. Paul

Project Based VouchersCamber Hills Townhomes • 44 units

Low RentJohn Carroll • 165 unitsNan McKay • 131 units

Non-CDA Managed Tax CreditKaposia Terrace Townhomes • 19 affordable units of 20 total units

Non-CDA Bond Financed Housing Kaposia (Rose) Apartments •

20 affordable units of 48 total units


12+ affordable units


0 1 2 3 4 5 6 7


Weatherization

January

February

March

April

May

June

July

August

September

October

November

December

0

0.5

1

1.5

2

2.5



00.5

11.5

22.5

33.5

44.5

2020 Sheriff Sales


2019 Sheriff Sales

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West St. Paul • Quarter 2, 2020Statistics through June 30, 2020




Elderly/ Disabled

Youth/ Family

Previous Quarter



Quarter

Tenant Based Housing Choice Vouchers 357 357 0Portable Incoming Vouchers 35 35 0Other Rental Housing Subsidy Programs 29 27 -2Total Tenant-Based Housing Vouchers 421 419 -2Tenant-based program vouchers may be used by residents of development-based housing.








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CDA Properties in West St. Paul

Senior Housing DevelopmentsHaskell Court • 42 units The Dakotah • 59 units

Scattered Site Public Housing10 unitsColleen Loney Manor 80 units

Other Affordable Housing in West St. Paul

Section 202 HousingMount Carmel • 60 units

Low Rent 4 units

Non-CDA Bond Financed HousingThe Sanctuary of West St. Paul

164 senior units

Non-CDA Tax CreditCovington Court 160 units

Non-CDA OtherThe Oaks of West St. Paul 25 affordable

units of 132 total unitsWestview Park 15 affordable units

of 72 total units


0 1 2 3 4 5 6 7


Weatherization

January

February

March

April

May

June

July

August

September

October

November

December

0

0.5

1

1.5

2

2.5



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2020 Sheriff Sales


2019 Sheriff Sales

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Small Cities • Quarter 2, 2020Statistics through June 30, 2020

as of March 31 as of June 30


Quarter

Cannon Falls 0 Castle Rock 0 Douglas Township 0 Empire 0 Hampton 4 4 0 Lilydale 0 Mendota 0 Miesville 0 Northfield 0 Randolph 1 1 0 Ravenna 0 Sunfish Lake 0 Vermillion 0 Waterford 0Total Tenant-Based Housing Vouchers 5 5 0

Home Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2020 YTD

Cannon Falls 0 Castle Rock 0 Douglas Township 0 Empire 0 Hampton 0 Lilydale 0 Mendota 0 Miesville 0 Northfield 0 Randolph 0 Ravenna 0 Sunfish Lake 0 Vermillion 0 Waterford 0Programs include Weatherization, Home Improvement & Rehabilitation Loan programs


First Mortgage Loans Closed & Downpayment 0 2 0 0 2Mortgage Credit Certificate 0 2 0 0 2

Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2020 YTD 2019 Total



Tenant-based programs include Tenant Based Housing Vouchers and Other Rental Housing Subsidy programs

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Small Cities include:Cannon Falls

Castle Rock

Douglas Rownship

Empire

Hampton

Lilydale

Mendota

Miesville

Northfield

Randolph

Ravenna

Sunfish Lake

Vermillion

Waterford

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Appendix Assisted Housing Development Based Housing Programs

Development Based Housing Programs are housing sites where the eligible subsidy is tied to the site and the units remain affordable for the duration of the funding contract. The site is made affordable usually through public funding for construction along with an ongoing operating subsidy. Units may target special needs while others may be general occupancy units. Development Based Housing is listed separately at the bottom of each city's report. Development Based Housing Programs include:

CDA Senior Housing Program provides one- and two-bedroom rental apartment units for persons 62 years of age and older. The CDA issues tax exempt bonds, credit enhanced with a general obligation pledge from Dakota County and has created a common bond fund. Under this financing structure, rental revenue from all of the buildings is pooled to pay to expenses and debt service for all the buildings. About 72% of the debt service on the bonds is paid from the supplemental revenues, including tax increment revenue and the CDA’s property tax levy that is exclusively dedicated to senior housing. Land and public improvements are paid for in part with CDBG, HOME and other local funds.

CDA Workforce Housing Program provides high quality housing at an affordable rate to meet the needs of households earning modest wages. The affordable workforce housing units are financed through a the CDA’s Family Housing Partnership Program, which was developed as a public/private limited partnership to syndicate low income housing tax credits and raise equity from the private sector for the development's construction. Financing packages also include below market loans and grants from public, private and non-profit sources.

CDA Youth Supportive Housing Program is a supportive housing development that provides 24 units of affordable, safe, stable housing at Lincoln Place with services for young adults ages 18-25 who are homeless or are at significant risk of becoming homeless. The CDA is the owner, developer and property manager of Lincoln Place. Dakota County Community Services is the sponsor of the project and serves as a referral service for youth who would be good candidates for Lincoln Place. To provide one-on-one case management at Lincoln Place, Dakota County Community Services contracted with The Link to provide advocacy, life skills training, goal setting around education, employment and overall health (chemical, mental and physical) to help residents transition to independence.

Project Based Housing Choice Vouchers (Section 8) is a rental subsidy that can cover all of the units in a given housing development or a designated number of units. Rents are set at 40% of the tenant’s income and are paid to the project’s owner. The remainder of the rent (the subsidy amount) is paid by the federal government. Since the assistance is tied to the unit, a household who moves from the project-based unit does not have any right to continued housing assistance. However, they may be eligible for a tenant based voucher when one becomes available. These rental units are owned and operated by private owners, either for-profit or not-for-profit.

Section 202 Housing units are available to elderly or handicapped residents. This program aims to expand the supply of affordable housing with supportive services for the elderly by providing capital advances to private, not-for-profit organizations to finance property acquisition, site improvement, conversion, demolition, relocation and other expenses associated with supportive housing for the elderly. Project Rental Assistance Contracts are used to cover the difference between the HUD approved operating costs per unit and the

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tenant’s rent. Housing financed under this program may include appropriate support services and activities such as cleaning, cooking and transportation for elderly persons who are frail or at risk of being institutionalized. Section 202 is a federally funded program.

Section 811 Housing is a supportive housing program with units available to persons with disabilities. This program provides capital advances to not-for-profit sponsors to finance the development of rental housing with supportive services for persons with disabilities. The capital advance is interest free and does not have to be repaid as long as the housing remains available for very low-income persons with disabilities for at least 40 years. The program also provides project rental assistance to cover the difference between the HUD approved operating costs per unit and the amount the resident pays. This is a federally funded program.

Section 236 Housing units are generally fixed or flat rents, meaning that they do not vary according to tenant income. The government provided a large mortgage subsidy that reduced interest rates to as little as 1%. These rental units are owned and operated by private owners.

Scattered Site Public Housing are rental units owned and operated by a Public Housing Agency, such as the CDA. These housing units consist of high-rise apartments, single family homes, duplexes and townhomes. Tenant income eligibility is based on 80% of area median income. Residents of public housing units pay 30% of their income for rent. Rental payments go to the public housing agency and are used for the operation and maintenance costs of the housing. Federal subsidies also assist with operating costs.

In addition to scattered site units, the CDA owns Colleen Loney Manor, which is an apartment building for low-to-moderate income person who are 62 years of age and older, handicapped or disabled, near elderly (50 years or older) and single persons.

South St. Paul HRA administers public housing program for the City of South St. Paul.

Low Rent Housing are units of housing for families, seniors and disabled households, which are federally subsidized.

Farmers Home Administration (FMHA) are units if housing for the elderly or families, which are federally funded.

Tenant Based Housing Programs

Tenant Based Housing Programs are when the eligible housing subsidy is tied to the tenant and the subsidy travels with the tenant. The housing subsidy makes up the difference between the market rate rent and the tenant's income based payment. Tenant Based Housing Programs include:

Tenant Based Housing Choice Voucher (Section 8) Program is the federal government’s major program for assisting very low-income families, the elderly and the disabled to afford decent and safe housing in the private market. A household that is issued a housing voucher is responsible for finding a suitable housing unit of the household’s choice where the owner agrees to rent under the program. Rental units must meet minimum standards of health and safety, as determined by the public housing authority.

The CDA administers this program in Dakota County.

Tenant Based Portable Incoming Vouchers (Section 8) are Housing Choice Vouchers that are issued by a Public Housing Authority other than the CDA but are administered by the CDA because the tenant eligible for the housing subsidy moved into Dakota County.

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Tenant Based Portable Outgoing Vouchers (Section 8) are Housing Choice Vouchers that are issued by the CDA but are administered by another Public Housing Authority because the tenant eligible for the housing subsidy moved out of Dakota County.

Continuum of Care is a Federally funded program that provides rental assistance to homeless persons with disabilities. The CDA administers the housing subsidy while Dakota County Social Services refers applicants and provides supportive services for program participants. This program provides intensive case management for households most at risk for chronic homelessness to help them to achieve long-term stability. Continuum of Care is a Federally funded program through the Department of Housing and Urban Development.

Bridges serves persons with chronic and persistent mental illness. The CDA administers the housing subsidy portion of this program and Dakota County Social Services provides supportive services to help stabilize participating households. This is a temporary subsidy that “bridges” the gap between homelessness, treatment centers, institutional facilities, and permanent affordable housing. Bridges is a state funded program through a grant from the Minnesota Housing Finance Agency.

Family Unification Program provides housing vouchers targeted to applicants in two categories:

1) Families for whom the lack of adequate housing is the primary reason for placement of a child in foster care, or is the cause for delays in reuniting a child with their family, and

2) Youth between the ages of 18 and 21 years who left foster care at 16 or older and who lack adequate housing.

The CDA works with Dakota County Community Services to identify and connect with families and youth who might be eligible for the program. Family Unification Program is a federally funded program.

Veteran Affairs Supportive Housing (VASH) is a unique partnership between the Department of Veteran Affairs and the Department of Housing and Urban Development that provides long-term case managmeent, supportive services and permanent housing support for chronically homeless Veterans. The program seeks to serve the neediest, most vulnerable homeless Veterans. A key component of the program is VA's case management services. Case management services promote housing stability and support recoveries from physical and mental illnesses and substance use disorders. These services are designed to improve the Veteran's physical and mental health and enhance the veteran's ability to live in safe and affordable housing within Dakota County.

Housing Trust Fund is a State Funded program for all individuals or families who must be referred by Dakota County Supportive Housing Unit (SHU). This program is administered by the Dakota County CDA.

Housing Trust Fund (Homeless) is a State Funded program for all individuals or families who must be referred by Dakota County Supportive Housing Unit (SHU). This program is administered by the Dakota County CDA.

Home Ownership Connection

Housing Rehabilitation and Home Improvement Loan Program assists low and moderate income homeowners with making repairs and improvements to their homes. Funds are commonly used for roof replacement, furnace replacement, electrical and plumbing repairs, insulation and special needs improvements such as ramp and bathroom and kitchen modifications. The Housing Rehabilitation and Home Improvement Loan Program is funded by a variety of sources including the Minnesota Housing Finance Agency

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(MHFA), Community Development Block Grant (CDBG), Home Investment Partnership Program (HOME), Housing Opportunities Enhancement Program (HOPE) and CDA general fund dollars.

MHFA Community Fix Up Fund (CFUF) - 75% MHFA + 25% HOME funds. State and Agency funds to help discount loan rates to rehab homes.

MHFA Fix-Up Fund (Home improvement Loan) - State funds to provide low-interest loans to homeowners with income below $96,500. Max loan $35,000.

MHFA Home Rehab Loan is State funded to provide no-interest loans to eligible extremely low-income homeowners (30% Area Median Income) to make homes more livable, accessible and energy efficient.

Community Development Block Grant (CDBG) Loans - federally funded program for public facilities, housing, neighborhood revitalization, public services, planning and project administration. These are home rehab loans.

HOME Program Loans is a federally funded program available for home rehabilitation, homebuyer programs, rehabilitation of rental housing, tenant based rental assistance and new construction of affordable housing. These are home rehab loans.

Weatherization services are cost-effective energy efficiency measures for existing residential and multifamily housing with low-income residents. A wide variety of energy measures that encompass the building envelope, its heating and cooling systems, its electrical systems and electricity consumption are the focus. This program is targeted to recipients of fuel assistance. It has the effect of reducing the demand for future fuel assistance by increasing energy efficiency. The Weatherization Program is administered as a joint effort between the CAP Agency and the CDA. Funding is provided to the CDA on an annual basis from the Minnesota Department of Commerce.

First Time Homebuyer Program provides low interest rate mortgages and entry cost assistance for buyers purchasing their first home in Dakota County. The CDA finances this program through the issuance of mortgage revenue bonds. The CDA partners with area mortgage lenders who originate loans directly to first time homebuyers. In conjunction with the first time homebuyer program, the CDA also offers downpayment and/or closing cost assistance. All homebuyers applying for a First Time Homebuyer Loan must complete an approved homebuyer education course before closing on their loan.

Mortgage Credit Certificate (MCC) Program is available to homebuyers using the First Time Homebuyer Program. It is a certificate (filed with the IRS) that allows the homeowner to use 20% of their annual mortgage interest payment as a credit toward their tax liability. It can be used throughout the life of the loan. A specified amount of the CDA's bond authority is periodically used to assist first time homebuyers with a market rate mortgage product combined with a mortgage credit certificate. All homebuyers applying for a Mortgage Credit Certificate must complete an approved homebuyer education course before closing on their loan.

Downpayment Assistance Loans are available to homebuyers using the First Time Homebuyer Program and meet the income requirements. Homebuyers can apply for downpayment assistance loans of up to $8,000.

Home Stretch Homebuyer Education is a course that teaches homebuyers about the entire homebuying process and the responsibilities of homeownership. Classes are taught by CDA Housing Counselors and industry professionals such as mortgage lenders, Realtors and inspectors.

Pre-Purchase Counseling Sessions are individual counseling sessions for homebuyers to meet with a trained homeownership specialist to answer questions about homeownership and review the household’s financial situation to develop a plan to become a homeowner.

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Foreclosure Sheriff Sales are distressed public property auctions. It is generally the last step in the foreclosure process after the homeowner has exhausted all their options to avoid defaulting on a mortgage. Once the borrower has defaulted, the lender will file suit in court to recover its loan loss, and if the court awards a judgment, the property will be scheduled to be sold at a public auction.

Notice of Pendency is filed by a mortgage company’s attorney as official notification that the foreclosure process has begun. Not all of these result in Sheriff Sales.

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