The URL can be used to link to this page

2014-03-12 HRA Agenda PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. I_I!! M 1 _1 MOUND HOUSING & REDEVELOPMENT AUTHORITY RESCHDULDED REGULAR MEETING WEDNESDAY, MARCH 12, 2014 6:45 P.M. MOUND CITY COUNCIL CHAMBERS Page 1. Open meeting 2. Action approving agenda, with any amendments 3. Action approving minutes: February 25, 2014 regular meeting 1 i. Action approving payment of claims 2 -4 5. Catherine Pausche, Finance Director /Clerk/Treasurer, requesting action 5 -24 on a resolution authorizing the Executive Director to execute a Rental Assistance Demonstration (RAD) Program Application with the US Department of Housing and Urban Development (HUD) and certifying an agreement to comply with all requirements of the program and PIH Notice 2012 -32 6. Sarah Smith, Community Development Director with an update on the Mound special legislation request 7. Adjourn MOUND HOUSING AND REDEVELOPMENT AUTHORITY FEBRUARY 25, 2014 The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in regular session on Tuesday, February 25, 2014, at 6:55 p.m. in the council chambers of the Centennial Building. Members present: Chair Mark Hanus; Commissioners Ray Salazar, Kelli Gillispie, and Heidi Gesch. Members absent: Mark Wegscheid Others present: Executive Director Kandis Hanson, Community Development Director Sarah Smith, Finance Dir /Clerk/freasurer Catherine Pausche, City Engineer Dan Faulkner, Planner Rita Trapp 1. Open meeting Chair Mark Hanus called the meeting to order at 6:57 p.m. 2. Approve agenda MOTION by Gesch, seconded by Gillispie, to approve the agenda. All voted in favor. Motion carried. 3. Approve minutes MOTION by Salazar, seconded by Gesch, to approve the minutes of the February 11, 2014 regular meeting. All voted in favor. Motion carried. 4. Approve claims MOTION by Salazar, seconded by Gesch, to approve the claims in the amount of $8,967.32. All voted in favor. Motion carried. 5. Cancel Meeting MOTION by Salazar, seconded by Gillispie, to cancel a special meeting workshop scheduled for Saturday, March 1, 2014 at 1:00pm for presentation of a development proposal. All voted in favor. Motion carried. 6. Adiourn MOTION by Salazar, seconded by Gillispie, to adjourn at 6:58 p.m. All voted in favor. Motion carried. Attest: Catherine Pausche, Clerk -1- Chair Mark Hanus -2- $16,294.47 CITY OF MOUND 03/07/148:04 AM Page 1 Payments j CITY OF NM UND Current Period: March 2014 Batch Name 031114HRA User Dollar Amt $16,294.47 Payments Computer Dollar Amt $16,294.47 $0.00 In Balance Refer 6 CASH, PETTY CASH _ Cash Payment E 680.49800 -322 Postage 2 BOOKS POSTAGE STAMPS $19.60 Invoice 03112014 3/6/2014 Cash Payment E 680 - 49600 -220 Repair /Maint Supply CEILING REPAIR -WHITE CAST ACRYLIC $64.24 SHEET- UNITS #300 & #307 Invoice 03112014 3/6/2014 Transaction Date 3/6/2014 Wells Fargo HRA 10120 Total $83.84 Refer -, 1 CENTERPOINT ENERGY(MINNEG Cash Payment E 680 -49800 -383 Gas Utilities GAS SERVICE 1 -21 THRU 2 -19 IKM $1,563.00 Invoice 03112014 2/2112014 Transaction Date 5/1/2012 Wells Fargo HRA 10120 Total $1,563.00 Refer 5 GUARDIAN PEST SOLUTIONS, INC� Cash Payment E 680 - 49800 -440 Other Contractual Servic BED BUG HEAT TREATMENT #207 IKM $1,295.00 Invoice 1367697 2/26/2014 Cash Payment E 680 -49800 -440 Other Contractual Servic BED BUG HEAT TREATMENT #213 IKM $1,295.00 Invoice 1367049 2/6/2014 Cash Payment E 680 -49800 -440 Other Contractual Servic BEDBUG HEAT TREATMENT #102 IKM $1,295.00 Invoice 1367700 2126/2014 Cash Payment E 680- 49800 -440 Other Contractual Servic BEDBUG HEAT TREATMENT #310 IKM $1,295.00 Invoice 1375242 2128/2014 Transaction Date 3/6/2014 Wells Fargo HRA 10120 Total $5,180.00 Refer 9 HENNEPIN COUNTY TREASURER _ Cash Payment E 680 - 49800 -438 Licenses and Taxes FY2013 PILOT CONTRACT NO. 0-858 $3,171.50 Invoice 03112014 3/6/2014 Transaction Date 3/6/2014 N .u,v .... n�.. Wells Fargo HRA 10120 Total w.-.. a.-,...... .....,.�,w,�......,....�,..�.. �......,,.- ,,...v..,M...K,.h,.n..,.. $3,171,50 Refer 2 KENNEDYAND GRAVENT Cash Payment E 680 - 49800 -304 Legal Fees TENANT EVICTION CASEWORK THRU 1 -31- $1,208.65 14 Invoice 118877 2125/2014 Transaction Date 3/5/2014 Wells Fargo HRA 10120 Total $1,208.65 Refer MOUND, CITY OFn Cash Payment E 680 - 49800 -382 Water Utilities WATER SVC 1 -2 -14 THRU 2-4 -14 IKM $2,175.57 Invoice 03112014 212012014 Transaction Date 6/6/2013 Wells Fargo HRA 10120 Total $2,175.57 Refer 7 STA -SAFE LOCKSMITHS COMPAN_ Cash Payment E 680 -49800 -401 Building Repairs OPEN APT #213, REPLACE & REKEY DOOR $188.05 & MAILBOX LOCKS, KEYS Invoice 00019791 2/11/2014 Transaction Date 3/6/2014 Wells Fargo HRA 10120 Total $188.05 Refer TRUE VALUE MOUND (IKM) Cash Payment E 680 -49800 -220 Repair /Maint Supply #301 SHOWER COVER PLASTIC ADHESIVE $4.79 Invoice 112384 2/12/2014 Cash Payment E 680 -49800 -220 Repair /Maint Supply #300 PLASTIC ACCESS DOOR $21.99 Invoice 112373 2/12/2014 -3- _ CITY OF MOUND 03/07/148:04 AM Page 2 Payments CITY OF MOUND Refer m,. 4 XCEL ENERGY Cash Payment E 680 -49800 -381 Electric Utilities Invoice 0510456558 2/27/2014 Transaction Date 81112011 Fund Summary 680 HRA PUBLIC HOUSING ELECTRIC SERVICE 1 -24 THRU 2 -27 IKM $2,355.24 Weiss Fargo HRA 10120 10120 Wells Fargo HRA $16,294.47 $16,294.47 Pre - Written Check $0.00 Checks to be Generated by the Computer $16,294.47 Total $16,294.47 ME Total $2,355.24 Current Period: March 2014 Cash Payment E 680 - 49800 -220 Repair /Maint Supply #108 SMOKE ALARM $19.99 Invoice 112386 2/12/2014 Cash Payment E 680- 49800 -220 Repair /Maint Supply #300 PLASTIC ACCESS DOOR $21.99 Invoice 112534 2/20/2014 Cash Payment E 680 -49800 -220 Repair /Maint Supply #300 CLAMPS $12.98 Invoice 112570 2/21/2014 Cash Payment E 680 -49800 -220 Repair/Maint Supply #307 BATH CEILING REPAIR, DRIL BIT, $6.89 SCREWS, NUTS Invoice 112577 2/21/2014 Cash Payment E 68049800 -210 Operating Supplies ICE MELT SALT FOR TRASH DRIVEWAY $15.99 Invoice 112623 2/24/2014 Transaction Date 3/6/2014 Wells Fargo HRA 10120 Total $104.62 Refer...,M. „., 8 WILMAR Cash Payment E 68049800 -210 Operating Supplies CLEANING SUPPLIES, DEGREASER, DOGGY $264.00 POO BAGS, ICE MELT SALT MIX Invoice 305889388 2125/2014 Transaction Date 3/6/2014 Wells Fargo HRA 10120 Total $264.00 Refer m,. 4 XCEL ENERGY Cash Payment E 680 -49800 -381 Electric Utilities Invoice 0510456558 2/27/2014 Transaction Date 81112011 Fund Summary 680 HRA PUBLIC HOUSING ELECTRIC SERVICE 1 -24 THRU 2 -27 IKM $2,355.24 Weiss Fargo HRA 10120 10120 Wells Fargo HRA $16,294.47 $16,294.47 Pre - Written Check $0.00 Checks to be Generated by the Computer $16,294.47 Total $16,294.47 ME Total $2,355.24 Date: March 6, 2014 To: Mound HRA Board Chair and Commissioners From: Catherine Pausche, Finance Director /Clerk/Treasurer Subject: Indian Knoll Manor Rental Assistance Demonstration Project Application The Rental Assistance Demonstration (RAD) Program was authorized by the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112 -55, approved November 18, 2011), which provided fiscal year 2012 appropriations for HUD to support this program. RAD allows Public Housing Authorities (PHAs) to convert public housing subsidies into a long- term Project Based Section 8 rental assistance subsidy. This is beneficial to PHAs because historically public housing subsidies and funding for capital projects have been unpredictable and can fluctuate annually due to changes to the federal budget. Project -Based Section 8 Vouchers provide a stable and predictable annual subsidy, have less strings attached /administrative requirements, and will allow flexibility in ownership if the right partner can be found who is committed to preserving the project as affordable housing. The attached application was prepared with the assistance of HUD. Section 9 on Page 6 projects effective Gross Income of $289,996 based on the RAD conversion rent formula, which basically locks in FY2012 public housing funding levels. The 2014 approved operating budget, including non -cash depreciation, was $297,208 and is presented on page 5 of the application. The application has to show a break -even or surplus on the bottom line, so I am proposing to lower the management fee and depreciation as I believe we will be able to lower these expenses with the conversion. A HUD Headquarters representative stated that HUD is accepting applications for a RAD conversion but said there is currently a cap on the number that can be approved at this time. HUD still encourages submission as they are working with lawmakers in an effort to lift the cap. Therefore, Staff is asking that you approve a resolution authorizing Staff to execute a Rental Assistance Demonstration (RAD) Program Application and certify that the Mound HRA is willing to comply with all requirements of the program and PIH Notice 2012 -32. The first three pages of the notice are attached and the entire text of the notice can be found on the HUD website. If the HRA Board agrees to move forward with approving the RAD application, the Board would be authorizing the Executive Director Kandis Hanson to attest to the following: -5- I hereby certify to the following: (1) that I have the requisite authority to execute this application on behalf of the owner; (2) that HUD can rely upon this certification in evaluating the Application, (3) that 1 acknowledge that 1 have read and understand PIH Notice 2012 -32 (the "Notice "), which describes the Rental Assistance Demonstration (RAD) (the "Program "), and agree to comply with all requirements of the Program or Notice; (4) that all materials submitted in association meets all applicable eligibility requirements for the Program set forth in the Notice; (6) that the owner approves the creation of a single —asset entity of the affect project if required by the lendor to facilitate financing; (7) that, if selected for award, the owner will comply with the fair housing and civil rights requirements at 24 CFR5.105(a) (general requirements) and will affirmatively further fair housing; (8) that there are no debarments, suspensions, or Limited Denials of Participation in Federal programs lodged against the applicant, PHA Executive Director, Board members, or affiliates; (9)that this Board Approval Form has been approved by the Board of Commissioners on the date noted below; and (10) that, if selected for an award, the PHA will comply with all provisions of HUD's Commitment to Enter into a Housing Assistance Payment (CHAP) Contract, which shall indicate the HUD - approved terms and conditions for conversion of assistance, or will indicate to HUD within 15 days that it is refusing the terms of the CHAP and withdrawing from the RAD participation. I would appreciate you letting me know in advance of the meeting if you need additional information so I can be prepared for the discussion. In Date: March 6, 2014 To: Mound HRA Board Chair and Commissioners From: Catherine Pausche, Finance Director /Clerk/Treasurer Subject: Indian Knoll Manor Resident Meeting Summary On February 26, 2014, two meetings were held at Indian Knoll Manor to give residents an opportunity to meet with City Manager Kandis Hanson, Finance Director Catherine Pausche and Common Bond Senior Resident Manager Abbie Hemmelgarn. One of the topics discussed was the HRA's intention to apply for HUD's Rental Assistance Demonstration (RAD) program. The following information was provided in a handout to the residents that attended either meeting and copies were left in the office for those who did not make it. The mission of HUD is to "promote adequate and affordable housing, economic opportunity, and a suitable living environment free from discrimination." In 1970, the Mound Housing and Redevelopment Authority (HRA) signed a contract with HUD to build Indian Knoll Manor for elderly and handicapped citizens. Through reforms, public housing is now open to individuals and families who meet the low income thresholds. • •. The Mound HRA is subject to HUD's Public Housing regulatory requirements, which are far more complex and restrictive than the requirements for Section 8 providers. It is difficult to administratively keep up with the requirements for a 50 unit facility and the HRA Board wishes to explore the efficiencies that could be gained if the property was converted to Section 8 and transferred to a responsible owner who specializes in providing quality affordable housing. -7- One option is to apply for HUD's Rental Assistance Demonstration (RAD) Program which allows Public Housing properties to convert to long -term Section 8 rental assistance contracts. This would provide flexibility in ownership and efficiencies in regulatory reporting and requirements. RAD is a central part.of HUD's rental housing preservation strategy, which works to preserve the nation's stock of deeply affordable rental housing, promote efficiency within and among HUD programs, and build strong, stable communities. CommonBond Communites (CBC) has managed Indian Knoll Manor since 2011. CBC is a not for profit that manages and owns approximately 5,000 housing units in and around the Twin Cities metropolitan area, including the Westonka Estates apartments in Mound. If the Mound HRA is approved under the RAD program, the Mound HRA would either continue the management agreement with CBC or look for a similar entity to take over ownership. Either way, the HRA is committed to Indian Knoll remaining a quality affordable housing option for its citizens. Any questions regarding this study can be directed to Catherine Pausche, City of Mound Director of Finance and Administration, at (952)472 -0633 or via email at catherinepausche @cityofmound.com. A total of 16 residents attended one of the two sessions. No comments were received from the residents present during the meeting, nor has any resident attempted to contact me since the meeting regarding the RAD program. 12 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT II�IIIII Office of Public and Indian Housing Office of Housing Special Attention of: Public Housing Agencies Public Housing Hub Office Directors Public Housing Program Center Directors Multifamily HUB Directors Multifamily Program Center Directors Regional and Field Office Directors Regional Administrators Performance Based Contract Administrators Notice PIH- 2012 -32 (HA) Issued: July 26, 2012 Expires: This Notice remains in effect until amended, superseded, or rescinded. SUBJECT: Rental Assistance Demonstration — Final Implementation Purpose This notice (Notice) provides program instructions for the Rental Assistance Demonstration (RAD or Demonstration), including eligibility and selection criteria. Back,2round RAD is authorized by the Consolidated and Further Continuing Appropriations Act of 2012 (P0I1Iic law: i 12-55, approved November 18, 2011), which provided fiscal year 2012 appropriations for HUD (2012 Appropriations Act). RAD has two separate components: First component. The first component allows projects funded under the public housing and Section 8 Moderate Rehabilitation (Mod Rehab) programs to convert their assistance to long -term, project -based Section 8 rental assistance contracts.' Under this component of RAD, public housing agencies (PHAs) and Mod Rehab owners may choose between two forms of Section 8 Housing Assistance Payment (HAP) contracts: project -based vouchers (PBVs) or project -based rental assistance (PBRA). No incremental funds are authorized for this component. PHAs and Mod Rehab owners will convert their assistance at current subsidy levels. The 2012 Appropriations Act authorizes up to 60,000 units to convert assistance under this component, to be selected competitively. Sections I and II of this Notice provide further instructions for PHAs and owners of Mod Rehab projects, respectively. ' Conversions of properties under the Mod Rehab program exclude single room occupancy (SRO) dwellings as authorized by Title f V of the McKinney -Vento Homeless Assistance Act. PIH- 2012 -32 (HA) Rental Assistance Demonstration —Final Implementation M m Second component. The second component allows owners of projects funded under the Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), and Mod Rehab programs to convert tenant protection vouchers (TPVs) to PBVs, upon contract expiration or, for owners of Rent Supp and RAP projects, termination, occurring after October 1, 2006, and no later than September 30, 2013. While there is no cap on the number of units that can convert assistance under this component of RAD, and no requirement for competitive selection, actions under this component are subject to the availability of TPVs. Sections II and III of this Notice provide further instructions for owners of Mod Rehab projects and owners of Rent Supp and RAP projects, respectively. Collectively, projects that convert their form of assistance under the Demonstration are referred to in this Notice as "covered projects." On March 8, 2012, HUD issued PIH Notice 2012 -18, Rental Assistance Demonstration — Partial Implementation and Request for Comments. While PIH Notice 2012 -18 sought public comment Oil all instructions and criteria, the instructions and criteria applicable to the Section III were effective immediately. This final Notice incorporates consideration of public comment, including revisions to the Section III instructions and criteria. A copy of HUD's response to public comments received on PIE Notice 2012 -18 may be obtained from the RAD website at: w\s�.v.hud <oov /rad. Because Section III of PIH Notice 2012 -18 was effective immediately, any Rent Supp or RAP owner that has submitted a complete RAD conversion request to the MF Hub for review under PIH Notice 2012 -18 prior to the date of this final Notice will be subject to PIH Notice 2012 -18. All requests that have not yet been submitted are to be subject to the terms of this final Notice. Notice Organization The main body of this Notice (Program Instructions) is divided into three sections: Section I: Provides instructions to PHAs and their partners, who can convert the assistance of public housing projects under the first component of the Demonstration. Section II: Provides instructions to owners of Mod Rehab projects, who can convert the assistance of these projects under the first or second component of the Demonstration. Section III: Provides instructions to owners of Rent Supp and RAP projects, who can convert the assistance of these projects under the second component of the Demonstration. Please refer to the appropriate section for relevant instructions. A table of contents is provided on pages 5 -7 of this Notice for reference. Demonstration Goals RAD provides the opportunity to test the conversion of public housing and other HUD- assisted properties to long -term, project -based Section 8 rental assistance to achieve certain goals, including the preservation and improvement of these properties through enabling access by PIH - 2012 -32 (HA) Rental Assistance Demonstration —Final Implementation -10- PHAs and owners to private debt and equity to address immediate and long -term capital needs. RAD is also designed to test the extent to which residents have increased housing choices after the conversion, and the overall impact on the subject properties. Evaluation Each component of RAD will be evaluated separately: • For the conversion of public housing assistance to long -term, project -based Section 8 with no incremental funding, HUD is required under the RAD statute to assess and publish findings regarding the impact of the conversion on: the preservation and improvement of the former public housing units, the amount of private capital leveraged as a result of such conversion, and the effect of such conversion on residents. (The 2012 Appropriations Act does not require an evaluation of the conversion of Mod Rehab under the first component.) HUD is currently developing an evaluation design. • For the conversion of TPVs to PBVs, the legislation requires that the Comptroller General of the United States conduct a study of the long -term impact on the ratio of tenant -based vouchers to project -based vouchers. Further Information Please check "_}s w _l1ud; vovh ad for the latest information on RAD or to join the RAD listserv. All materials referenced in this Notice may be obtained from this RAD website. Email questions to RADra)hud.cov. Additionally, HUD will develop informational materials to address various program elements that HUD will post on the RAD website. Paperwork Reduction Act In accordance with the Paperwork Reduction Act (PRA), HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number. OMB approved application and information collection forms will be posted on the RAD website and the Federal Re tg'ster. /s/ Sandra B. Henriquez, Assistant Secretary for Public and Indian Housing /s/ Carol J. Galante, Acting Assistant Secretary for Housing — Federal Housing Commissioner PIH- 2012 -32 (HA) Rental Assistance Demonstration —Final Implementation -11- Rental Assistance Demonstration (RAD) U.S. Department of HUD, Form HUD -5260 Public Housing Program Application Office of Public Housing, Office of Multifamily Housing Revision 1.01; 10/02112 OMB Approval Number 2577 -0278 (Issue date 9/21/12) (Expires 9130/15) There are several explanation boxes that extend the full width of this form. Increase or decrease the height of the box as needed (click to the left on the horizontal line below the row number, then drag the line up or down as needed). Enter the PIC Development Number and Name. Name THE CITY OF W Universal 9524720609 Telephone Number the requested contact information and complete the below questions regarding the project. (952)472 -0633' Telephone Number of Conversion: PBRA (Project Based Rental Assistance)` this Project an existing Mixed Finance Project? No this Project an existing Mixed Finance Project? No you requesting the Choice - Mobility Exemption for this project? EJ No (DUNS) The formulalc resultfrom FASS data Corrected PHA entry (if applicable) (Review the below table of project unit counts, by bedroom size, per the PIC data extract as of 09/13/12 Enter the date corrected or PIC ticket created (MM/DD /YYYY) -12- Page 1 of 10 Average PIC Bedroom Distribution Bedroom 0 -BR 16 1 I -BR 33 2 -BR 3 -BR 4 -BR 1 1 0 0 5 -BR 0 6 -BR 0 Total Units 50 per Unit 0.70 Is the above PIC information correct? ;: Yes: Skip to proposed post -RAD- conversion unit distribution Average Actual Bedroom Distribution PIC corrected Bedroom 0-BR 16 1 -BR ' 33 2 -BR 3 -BR 4 -BR 1 1 0 1 0 5 -BR 0 6 -BR 0. Total Units 50 per Unit 0.70 Enter the date corrected or PIC ticket created (MM/DD /YYYY) -12- Page 1 of 10 Proposed Post -RAD- Conversion Unit Distribution. Below, show the mix of units that you have proposed to convert, as well as other dwelling units at the project 0 -BR I 1 -BR I 2 -BR 3 -BR 4 -BR F 5 -BR 6 -RR I Total Units covert ng 0 -BR 1 -BR 2 -BR 3 -BR 0 0 0 50 Market Rate 0 0 0 0 0 0 0 0 .Other Affordable 1 0 1 0 0 1 0 0 0 0 0 FTOtal 1 16 1 33 1 0 0 1 n 1 n cn For units converting under RAD, enter the current utility allowances and estimated reasonable rent determinations for each unit type. table below compares the current total public housing units, the number proposed for conversion, the number posed to be reduced, and the applicable de minimis threshold. Indicate the number of reductions by category in rows that follow, along with an explanation in the accompanying text box. Current Public Housing Units 0 -BR 1 -BR 2 -BR 3 -BR 4 -BR 5 -BR 6 -BR Utility Allowances $0 I $0 $0 I Reasonable Rents $588 $693 $84L'.: table below compares the current total public housing units, the number proposed for conversion, the number posed to be reduced, and the applicable de minimis threshold. Indicate the number of reductions by category in rows that follow, along with an explanation in the accompanying text box. Current Public Housing Units Total Units Proposed for Conversion 1 Units Proposed to be Reduced de minimis threshold Units above the de minimis threshold 50 50 0 5 0 Skip to section 4 _ Units have already received Section 18 Demolition - Disposition approval from HUD _ Reconfiguring efficiency apartments _ Facilitating social service delivery Units vacant for more than 24 months Partial conversion 0 Total -13- Page 2 of 10 Enter below information on the project's existing indebtedness, if applicable: Performance Contract (EPC) Fund Financing Program (CFFP) $0 Per Unit $0 Per Unit $0 Per Unit $0 Per Unit $0 Per Unit $0 Per Unit $0 Enter the most recent estimate of capital needs for the project, broken down by Immediate, Short-term, and Long- term needs. If these break -downs are not available, provide reasonable estimates. apital Needs: That are your capital needs? Year 1 (Immediate) Years 2 -5 (Short-term) Years 6 -20 (Long -term) how you have $0 $17,500 $17;500 icement Reserve Funding the Initial Deposit and Annual Deposit to replacement reserves below. Formula Amount Initial Deposit to Repl. Reserve (IDRR) $11,660 Annual Deposit to Repl. Reserve (ADRR) $1,167 and bad debt data for the proposed conversion. 3 Yr Historical Avg Proposed Per Unit $0 Per Unit $350 Per Unit $350 Your Proposal $11,660 $1,167 Vacancy Rate (%) a 7.20% ,,;100 %0 Explain reductionfrom historical Explanation Debt Rate ( %) 13 0.27% Slip; no explanation necessary -14- Page 3 of 10 In addition to units that will be included under the HAP contract, enter other rent potential, vacancy loss, and bad debt loss for the proposed conversion. Type of Adfl Gross Potential Rent Annual GPR Vacancy Loss % Bad Debt Loss % Market rate apartments Other affordable apartments Office space Retail space no Enter other income for the planned project. Annual Late / NSF charges Damage charges Laundry /Vending $1,200 Other Other Other tsxplananon Explanation Explanation -15- Page 4 of 10 Are you proposing the conversion in conjunction with new construction? No Enter the Tatest Approved Operating Budget'jor the current fiscal year and the proposed conversion Operating Expenses. An explanation is required if any line item is entered below 85% of the latest approved operating budget. Latest Approved Operating Budget Proposed nistrative $31,500 $3t,50'.0 Resident Manager, Audit, Telephone, Mileage, Postage Asset Management Fee $33,000 $25;000 Explain variances less than 85% Management overheads, accounting and payroll, regulatory, reporting - RAD'.should reduce complexity of admin it Services $9,700 $9,700 Answering Service, Background Checks, Bad Debt, Advertising and Legal y Expense $60,000 $60,000 Water, Electric, this and Refuse ary Maim and Ops $95,348 $95,345 Maintenance labor, supplies, contracts on mechancial systems caretaker and janitorial ,ctive Services $0d ,$0 Explanation Estate Taxes $4,000 $4;000. Explanation zty Insurance $5,000 $5,000 Explanation lity Insurance $1,500 $1,500 Explanation General Expenses $57,160 $55;000 Depreciation and operating supplies Operating Expenses $297,208 $287,048 3 Year Historical Expenses: IM No New Construction: Provide Historical Operating Expenses 1900 AFS 2010 AFS 2011 AFS $265,356 $309,998 5259,659 PHA Corrected 3 Year Historical Expenses: 2009 AFS 2010 AFS 2011 AFS 3 Year Average $265,356 $309,998 $25909 $27$338 New Construction : Section Not Applicable. No explanation is required. Explanation -16- Page 5 of 10 (Presented below is a summary calculation of the proposed project's Net Operating Income. Before proceeding, review and make any necessary changes in the applicable section of the application. irtment Gross Potential Rent RAD Units $303,996 50 Units $6,080 per unit annual Market Rate Units $0 0 Units $0 per unit annual Other Affordable Units $0 0 Units $0 per unit annual office /Retail GPR $0 acancy and Bad Debt Loss ($15,200) 5.0% weighted average ther Income $1,200 Effective Gross Income $289,996 Operating Expenses al Reserve Deposit Net Operating Income Are you proposing to for this project? INo first mortgage proposed. Skip this section. Interest Rate % per Year ;. Mortgage Insurance Premium % Amortization Term Maturity Term Debt Service Coverage Ratio Maximum Supportable Mortgage Loan Proposed Mortgage Loan Amount Calculated Annual Debt Service $5,741 PUPA $23 PUPA Enter uses of funds for the proposed conversion. cquisition Costs Building and Land Acquisition Payoff Existing Loans Other Costs Costs Costs 1 -17- Page 6 of 10 Professional Fees Architecture & Engineering Physical Conditions Assessment Borrower's Legal Counsel Lender's Legal Counsel Feasibility Studies Environmental Reports Appraisal / Market Study Accounting Survey Other Costs Loan Fees and Costs FIIA MIP FHA Application Fee FHA Inspection Fee Financing Fee Organizational Costs Title Insurance/Exam Fee Recordation Fee Closing Escrow Agent Fee Prepayment Penalty/Premium Payables Construction Interest Construction Loan Fees Cost of Bond Issuance Other Costs Reserves Initial Deposit to Replacement Reserve Initial Operating Deficit Escrow Operating Reserve Tax and Insurance Escrow Other Costs sources of funds for the proposed conversion. New First Mortgage Loan Public Housing Operating Reserves Public Housing Capital Funds Replacement Housing Factor Low Income Housing Tax Credit Equity - 4% Low Income Housing Tax Credit Equity - 9% Other /Local Other /Local Other /Local aka Total Uses of Funds Total Sources of Funds 13 $11,660 aces and uses are in balance in Page 7 of 10 LIHTCs are not proposed, skip to Section 14 if QAP timing' RAD requires that you demonstrate recent success, intemally or through development team partners, in obtaining 9% LIHTCs. Below, briefly discuss your capacity and experience in obtaining 9% LIHTCs from the relevant State allocating agency. Demonstration of recentsuecess obtaining 9% LIHTCs Do you have a letter from the credit - issuing authority as described in Section 1.9(B) of the RAD Notice? Efforts to secure letter from credit- issuing authority RAD requires that you attach a self - scored QAP application. Below, briefly discuss why you believe that a QAP application for the subject project, at the indicated score, is likely to receive a 9% LIHTC award. 1) Do you want to designate this project as your PHA's priority project? go 2) Are you applying for a ranking factor for Choice Mobility? Skip to section Question 3 (a) Are you receiving choice - mobility vouchers? (b) Are you providing choice - mobility vouchers? Are you requesting the Factor for Green Buildine and M Page 8 of 10 -20- Page 9 of 10 The Following Must Be Attached as Part of Your Electronic Application: Yes Board Approval Form No Evidence of PHA to Administer PBV Contracts No Mixed - finance Affidavit No Financing Letter of Interest/Intent for Lender(s) or Equity Investor(s) No Financing Letter of Interest/Intent for 4% LIHTCs No Financing Letter of Interest/Intent for 9% LIHTCs No Choice - Mobility Letter Agreement No 9% LIHTC Reservation Letter No Letter from credit - issuing authority No Self - Scored QAP Application for 9% LIFITCs No QAP Timeline Yes Resident Comments ie 2 attachments indicated 'Yes' above must be included in your electronic application package. Incomplete application packages will be jected, and if you re- submit, your place on the waiting list will be based on the date of re- submission. changes were made to the PIC data -21- Page 10 of 10 Attachment IA: Board Approval Form AMP No: MN0740o0001 5o Pans PrafeR Bmetl Rental Msbtan[e $ummary I P'oposedfeF (Units Proponni pendent, u1 $oYNwFTst u.a Mc Loan New First sing Loan $6,080 Gross Potential Re nts for Other Apartment Units $0 Open Public Housing Operating Reserves Gross Potential Rents for Commercial 0 $ll,60 $233 Public Housing Capibi Funds ($15,200) $0 $0 Replacement Housing Factor $24 $0 $0 Low Income Housing Tax Credit Equity -4% Total Operating Expenses $0 $0 Low Income I-maing Tax Credit Equity -9% ($1,167) $0 $0 Other $36 $0 $0 Other Operating Cesh Flow $0 $0 Other $o $0 Total Sources of Funds $11,60 $233 Um of F"di\'`.= e "`strr)4unf Vl;^,, a`A[t UPiI L Ar,LIsmon COSh $0 $0 UratrUNOn Costs $0 $0 Relocation Costs $0 $0 Professional Fees $0 $0 Wan Fees and Costs $0 $o Reserves $11,660 $233 Developer Fees $0 $0 Total USes of Funds $11,60 $133 '.t.etfal R.,ts$forR DUr.hT`{` Gross potential Rents for llAD Units $303, $303,996 $6,080 Gross Potential Re nts for Other Apartment Units $0 $0 Gross Potential Rents for Commercial $0 N/A Vaca my Lass and Bad Debt Loss ($15,200) -$304 Other Income $1,200 $24 Effective Gross Income $189,996 $5,800 Total Operating Expenses ($287,048) ($5,241) Annual Deposit to Replacement Reserve ($1,167) ($23) Net Operating income $1,281 $36 First Mortgage Debt Service $0 $0 Operating Cesh Flow $1,281 $36 panwaranun oflfomame housi,y. -22- Attachment 1A: Board Approval Form NRA Of THE CITY Of MOUND, MINNESOTA RAO Apt —I.en for INDIAN KNOIt MANOR 3 Year Historical Average Comparison I hereby certify to the following (1) that I have the requisite authority to execute this application on behalf ofthe owner, (2) that HUD can rely upon this certification In evaluating the Application, (3) that I acknowledge that I have read and understand FEW Notice 2012 -32 (the "Notice "), which describes the Rental Assumore Demonstration (PAD) (the "Program "), and agree to comply with all requirements of the Program or Notice; (4) that all materials submitted in association with the application are accurate, complete and not misleading; (5) that the application meets all applicable eligibility requirements for the Program set forth in the Notice; (6) that the owne,.,,roves the creaVon of a single. asset entity Afthe affected project If required by the lender to facilitate financing; (7) that, if selected for award, the owner will comply with the fair housing and cN0 rights requirements at 24 CPS 5.105(a) (general requirements) and will affirmatively further fair housing; (B) that there are no debarments, suspensions, or Umlted Denials of Participation In Federal programs lodged against the applicant, PHA Executive Director, Boats members, or affiliates -, (9) that this Board Approval Form has been approved by the Board of Commissioners on the date noted below; and (10) that if selected for an award, the PHA will temple with all provisions of HUD's Commitment to Enter into a HAP (CHAP), which shall Indicate the HUD - approved terms and conditions for conversion of asslstarm, or will indicate to HUD within 15 days that It is refusing the terms of the CHAP and withdrawing from SAO participation. Warning: HUD will pmaecute false Balms and zmmo nto. Conviction may result In crimina l and /or nyll penalties (18 USC Sections 1001, 1010, 1012; 31 USC Sections 3229,3802) PHA Certification: By Kandla M. Hanson (Executive Dlreguori Signature: -23- March 13, 2014 Dale. MOUND HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. 14--H RESOLUTIONAUTHORIZING THE EXECUTIVE DIRECTOR OF THE MOUND HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF MOUND, MINNESOTA, TO EXECUTE A RENTAL ASSISTANCE DEMONSTRATION (RAD) PROGRAM APPLICATION WITH THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) AND CERTIFYING AN AGREEMENT TO COMPLY WITH ALL REQUIREMENTS OF THE PROGRAM AND PIH NOTICE 2012 -32 WHEREAS, the Rental Assistance Demonstration (RAD) program is authorized by the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112 -55, approved November 18, 2011), which provided fiscal year 2012 appropriations for HUD to support this program; and WHEREAS, the RAD Program allows Public Housing Authorities (PHAs) to convert public housing subsidies into a long -term, Project Based Section 8 rental assistance subsidy that provides a stable and predictable annual subsidy; and WHEREAS, stable and predictable revenues allow the owner to apply for Low - Income Housing Tax Credits and other sources of financing to fund public housing renovations; and WHEREAS, the Mound HRA has determined that submitting a RAD application is financially feasible and would facilitate a potential transfer to a responsible owner committed to perseveration of affordable housing; and WHEREAS, the Mound HRA held two resident meetings as required to inform the residents of the Mound HRAs plan to apply for the RAD program; NOW, THEREFORE BE IT RESOLVED by the Housing and Redevelopment Authority of and for the City of Mound, Minnesota, hereby authorizes the Executive Director to execute a Rental Assistance Demonstration (RAD) Program Application with the U.S. Department of Housing and Urban Development (HUD) and certifying an agreement to comply with all requirements of the program and PIH Notice 2012 -32. Adopted this 12th day of March, 2014, Attest: Catherine Pausche, Clerk Chair Mark Harms -24-