082508 EDA
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
August 25, 2008
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Martin Opem Sr.
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Karen Nolte
Commissioner Daniel Stauner
1. Call to order
2. Roll call
3. Approval of regular meeting minutes of July 28,2008
4. Resolution authorizing the expenditure of Hennepin County Housing and
Redevelopment Authority (HCHRA) funds from the Hennepin County Affordable
Housing Incentive Fund to be received and expended by West Hennepin Affordable
Housing Land Trust (WHAHLT) within the city of New Hope
J. Adjournment
EDA Minutes
Regular Meeting
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 844
Item 4
MOTION
Item 4
EDA Meeting
Page 1
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
July 28, 2008
City Hall
President Opem called the meeting of the Economic Development Authority
to order at 9:10 p.m.
Present:
Martin Opem Sr., President
John Elder, Commissioner
Andy Hoffe, Commissioner
Karen Nolte, Commissioner
Daniel Stauner, Commissioner
Staff Present:
Kirk McDonald, City Manager
Curtis Jacobsen, Director of Community Development
Guy Johnson, Director of Public Works
Valerie Leone, City Clerk
Melanie Persellin, City Attorney's Office
Jason Quisberg, City Engineer
Motion was made by Commissioner Nolte, seconded by Commissioner Elder,
to approve the Regular Meeting Minutes of June 23, 2008. All present voted
in favor. Motion carried.
President Opem introduced for discussion Item 4, Resolution approving BCD
Holdings, LLC/Holiday Station loan documents for the redevelopment of 7180
42nd Avenue North (improvement project no. 844).
Commissioner Stauner expressed concerns regarding language within the
mortgage subordination agreement. He recommended striking the language
or ensuring the references reflect interest, mortgage, or lien "of record" to
prohibit the city from agreeing to subordinate a loan that is not currently in
place. He suggested a letter of agreement from Holiday stating the city would
subordinate to an amount currentlv owed. He also recommended a limitation
.'
on the interest rate so it is no greater than the present rate, and guarantee that
there would be no changes in late fees or other material loan documents. He
emphasized the need for the city to be adequately protected.
Mr. Kirk McDonald, city manager, stated the city attorney has been working
with the petitioner's attorney and v"ill be asked to revise the loan documents.
Commissioner Hoffe requested that any known concerns by the city attorney
or staff be drawn to the EDA's attention in advance.
Motion was made by C0111missioner Stauner, seconded by Commissioner
Elder, to postpone approval of the loan documents to a future meeting to
July 28, 2008
IMP. PROJECT 766
Item 5
EDA RESOLUTION
08-10
Hem 5
ADJOURNMENT
EDA Meeting
Page 2
allow revision of the loan documents. All present voted in favor. Motion
carried.
President Opem introduced for discussion Item 5, Resolution authorizing the
expenditure of Hennepin County Housing and Redevelopment Authority
(HCHRA) funds from the Hennepin County Affordable Housing Incentive
Fund to be received and expended by Project for Pride in Living (PPL) within
the city of New Hope (improvement project no. 766).
Mr. Curtis Jacobsen, director of community development, stated PPL has
found it necessary to apply for funding through the Hennepin County HRA
and the Hennepin County Affordable Housing Incentive Fund (AHIF) to
assist the organization with holding costs at the Linden Park Condominiums
during the slow housing market. He reported that state statutes require that
before a county HRA can expend money within a city that has its own
development agency it must receive authorization for said action from the
city. Staff recommends that the Council approve the resolution authorizing
PPL to accept and expend the Hennepin County AHIF monies within the city
of New Hope. Mr. Jacobsen reported that he was recently advised that PPL
was granted $320,000 whidl will be reflected in the resolution.
Commissioner Hoffe inquired whether the funding would burden the city.
Mr. Jacobsen stated there is no risk to the city.
Commissioner Nolte introduced the following resolution and moved its
adoption: "RESOLUTION AUTHORIZING THE EXPENDITURE OF
HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY
(HCHRA) FUNDS FROM THE HENNEPIN COUNTY AFFORDABLE
HOUSING INCENTIVE FUND TO BE RECEIVED AND EXPENDED BY
PROJECT FOR PRIDE IN LIVING (PPL) WITHIN THE CITY OF NEW
HOPE (IMPROVEMENT PROJECT NO. 766)." The motion for the adoption
of the foregoing resolution was seconded by Commissioner Stauner, and
upon vote being taken thereon, the following voted in favor thereof: Opem,
Elder, Hoffe, Nolte, Stauner; and the following voted against the same: None;
Abstained: None; Absent: None; whereu!Jon the resolution was declared duly
!Jassed and ado!Jted, signed by the president which was attested to by the
executive director.
Motion was made by Commissioner Nolte, seconded by Commissioner Elder,
to adjourn the meeting. All present voted in favor. Motion carried. The Ne'vV
Hope EDA adjourned at 9:20 p.m.
Respectfully submitted,
~ AJ
I~u~ CZ?trnv
Valerie Leone, City Clerk
July 2S, 200S
EDA
Request for Action
Originating Department
Community Development
Approved for Agenda
Agenda Section
August 25,2008
EDA
Item No.
4
By: Curtis Jacobsen, Director of CD
Eric Weiss, CD Assistant By: Kirk McDonald, City Manager
Resolution authorizing the expenditure of Hennepin County Housing and Redevelopment Authority
(HCHRA) funds from the Hennepin County Affordable Housing Incentive Fund to be received and expended
b West Henne in Affordable Housina Land Trust (WHAHLT) within the city of New Ho e
Requested Action
The Authority is requested to approve the attached resolution which authorizes WHAHLT to accept and
expend monies from the HCHRA's Affordable Housing Incentive Fund within the city of New Hope.
Policy/Past Practice
It has been a past practice of the city to take such steps as are required to facilitate the acquisition and
expendihue of available outside funding within the city of New Hope.
Background
WHAHL T has found it necessary to apply for funding through the HCHRA and the Helmepin County
Affordable Housing Incentive Fund for $25,000 to be used to assist the agency to acquire and rehabilitate
permanently affordable homeownership units located throughout the suburban conU11Unity. State statutes
require that before a county HRA can expend money within a city with its own developnlent/redevelopment
agency it must receive authorization for said action from the host city.
WHAHLT is requesting that the Authority approve the attached resolution authorizing them to accept and
expend funds in the amount of $25,000 from the Hemlepin County Affordable Housing Incentive FlUld to
assist in purchasing the land at 4315 Nevada Avenue North.
Attachment(s)
'" Resolution
o HCHRA grant agreement
Motion by
Second by
To:
II
I: \RFA\PLANNING\PLANNING\ Q & R - WH..A.HLT authorization to ex end HCH..l~A. funds.doc
Resolution 2008-
Resolution authorizing the expenditure of Hennepin County
Housing and Redevelopment Authority (HCHRA) funds
from the Hennepin County Affordable Housing Land Trust
to be received and expended by West Hennepin Affordable
Housing Land Trust (WHAHLT) vvithin the city of New Hope
WHEREAS, West Hennepin Affordable Housing Land Trust has applied
for funding through the Hennepin County Affordable
Housing Incentive Fund; and
WHEREAS, The Hennepin County Housing and Redevelopment Authority
has awarded $25,000.00 to West Hennepin Affordable Housing
Land Trust to assist with the purchase of the land at 4315
Nevada Avenue North; and
WHEREAS, the Authority is required to authorized the acceptance and
expenditure of this funding with the city of New Hope.
NO\^!, THEREFORE BE IT RESOLVED by the Economic Development Authority
(EDA) in and for the city of New Hope hereby authorizes the use
of Affordable Housing Incentive Funding (AHIF) as approved by
the Helmepin County HRA (HCHRA.) board to assist with the
purchase of the land at 4315 Nevada Avenue North in New
Hope, Minnesota. The AHIF funds in the amount of $25,000 vvill
be awarded to West Hennepin Affordable Housing Land Trust to be
utilized for subsidizing the cost of the property at 4315 Nevada A venue.
Adopted by the Economic Development Authority in and for the city of New Hope,
Hennepin Coun.ty, Minnesota this 25th day of August 2008.
President
Attest:
Executive Director
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Hennepin County Housing and Redevelopment Authority
Affordable Housing Incentive Fund Program
Contract No. A071927
GRANT AGREEMENT
THIS GRANT AGREEMENT ("Agreement") 1s made and entered into as ofthe 16th day of November,
2007, between the Hennepin County Housing and Redevelopment Authority, a public body corporate and
politic under the laws of the State of Minnesota, hereinafter referred to as the "Authority," having its
principal office at 417 North Fifth Street, Suite 320, Minneapolis, MN 55401, and West Hennepin
Affordable Housing Land Trust, a Minnesota nonprofit corporation, whose address is 5101 Thimsen
Avenue, Suite 200, Minnetonka, MN 55345, hereinafter referred to as "Provider."
RECITA!&
1. The Authority's Board of Commissioners created the Affordable Housing Incentive Fund
("AHIF") Program by adopting Resolution 08-HCHRA-OO on June 27,2000, for the purpose of
expanding the supply of safe, decent, sanitary housing for very low-income households and
individuals in Hennepin County.
2. The Authority provided funding of $4 million of capital tax exempt general obligation bonds for
the implementation of the 2007AHIF Program.
3. The Provider has been awarded funding of$140,000 by the Authority, the proceeds of which are
to be used solely for the Homes within Reach Program to acquire and rehabilitate a minimum of
four permanently affordable homeownership units located throughout the suburban communities
of Hennepin County (the "Projecf'). TIle four (4) units VlriU be AHIF units serving very low~
income households ("Low Income Units") pursuant to the application requirements of the AHIF.
Provider will be the owner ofllie land underneath t.1e Low Income Units.
4. Authority desires to have certain activities, hereinafter referred to as "Activities," perforI'!1ed
by Provider as described within this Agreement, including any exhibits and attachments, as
authorized by resolutions of the Authority's Board of Commissioners for the purpose of
implementing eligible activities under the and applicable rules, regulations, a.f1d guidelines
promulgated by federal, state, and county authorities.
5. The purpose of this Agreement is to provide for cooperation betvveen the Authority and Provider,
as the parties to this Activities to set and
conditions under -which said Activities shaH be implemented.
6.
. h' i' "" '..:i ~", <
AuLonty ana the t'roviuer are aUtnonzea ana
Minnesota Statutes gS 469.001 to 469.047 and 469.192,
to enter into
olqer applicable la-w.
THEREFORE, cOflsideration afthe mutual covena.nts and promises hereinafter set forth, t.."he
'.1' . "" '0 h t .!:' 'I
j,\uulOniy and. x'TOV! 'ef Rereo agree as lO!.OWS:
AGREEMENT FOR.PROVISIOK OF AFFOR}")A'BLE HOUSING
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1. GRANT OF AHlF FUNDS. The Authority agrees to provide Provider with AHIF funds not to
exceed One Hundred Forty Thousand and Noll 00 Dollars ($140,000,00) in the fonn ofagrant (the
"Grant") subject to the conditions set forth in this Agreement, which conditions expire thirty (30)
years from the latter ofthe date of this agreement and the date that aU four (4) Low Income Units are
available for occupancy by very lowDincorne households to enable Provider to carry out the Activities.
The Authority shall make no payment of AHIF funds to Provider and draw no funds from Hennepin
County on behalf ofPl'ovider prior to having received copies of all documents and records needed to
ensure that Provider has complied with the appropriate regulations and requirements and prior
conditions set forth in this Agreement. The Authority's commitment to provide said AHIF funds is
subject to the grounds for termination set forth in paragraph 27 of this Agreement.
2. SCOPE OF ACTIVITIES. In furtherance of the Project, by December 31,2008, the Provider shall
perfonn and carry out, in a satisfactory and proper manner at the Premises, the foHowing Activities:
A. PROJECT DESCRIPTION. Four (4) units will be AHIF Low Income Units and provide
homeownership opportunities for eligible very low=income households. A very 10w=incorne
household is defmed as a household whose median family income is fifty percent (50%) or
less of area median income adjusted for family size as detennined by United States
Department of Housing and Urban Development ('.tfUD) (the "Affordability Requirements")
who certifies that the Premises will be used as that person's principal residence (the
"Qualified Purchaser"). A Qualified Purchaser who meets the income requirements of the
previous sentence may (l) buy real property from the Provider or from another Qualified
Purchaser, or (2) enter into a ground lease with respect to real property and is the owner of
improvements to that real propelty for which Provider has provided financial assistance,
whether or not such assistance has been repaid, or (3) buy the improvements from a person
described in clause (2).
B. FIRM COMM11'MENT OF NONDAIDF FUNDI1~G SOURCES. Pdorto the disbursal of
any AHIF funds under this Agreement, the Provider must demonstrate to the Authority that
adequate non-AHIF funds are secured for the implementation of said Activities. The
Provider shaH provide leverage of other funds for the Project. Provider shall to agree
on 8.!'1 ongoing basis, it will ma1ce timely appHcation fOf, and use its best efforts to secure, all
necessary funding to assure the financial stability of me Projec'~ including but not to
funding from grants from governmental or other sources ror operating costs.
C. BUDGET. A revised schedule of revenue and expenses, including operating
expenses ror said Premises, must be provided prior to closing. funds must represent
the same or not exceed the approximate contribution as presented in the budget or
original application.
fLlnds \iviH be
CostSjl
be paid
budget.
to the
must supply docum,entation for review by Authoritis staff, which assures at a minL.mum
compHa~ce with all AHTF rules and regulations relating to housing quality standards,
environmental review, acquisition, and lead-based pamt.
3. USE OF FUNDS. The use of funds Linder this grant agreement is restricted to those costs and
expenses pennitied under applicable law, including but not limited to Minn. Stat. sectio~s 383B.79
al1d 373.40 ("Permitted Costs"). Examples of costs Qr expenses that may not be Pen1Utied Costs
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include, but are not limited to: marketing; tax credit fees; tax credit syndication fees such as
organization fees, bridge loan and tax opinion; and financing costs that relate specifically to other
debt incurred in connection with the project.
The Authority will not approve disbursement of funds for costs or expenses that are not Pennitted
Costs.
The Provider agrees to repay to the Authority any AHIF funds disbursed for costs or expenses that are
not Pennitted Costs, whether used by the Provider or by any third party.
4. DURA TI ON OF AGREEMENT. The Prov ider shall use its best efforts, and shall take all necessary
actions to cause the Low Income Units in the Premises as horneownership housing affordable to
Qualified Purchasers, whether upon the first sale or transfer oftitle of any ownership interest or title
of such unit or for any subsequent sales or transfers, and comply with the provisions and requirements
of this Agreement for a period of thirty (30) years from the latter of the date afthis Agreement and
the date that the Low Income Units are first sold or title is otherwise transferred to Qualified
Purchasers. Unless otherwise forgiven. or repaid pursuant to this Agreement, Provider agrees to repay
to the Authority the amount of the AHIF funds specifically used: (a) at point of sale or transfer of any
ownership interest or title ofaLow Income Unit to someone who is not an Qualified Purchaseroc the
Provider, or (b) upon Provider's unexcused failure to meet any terms and conditions of this
Agreement or the terms and conditions of other documents executed in connection with this
Agreement, whichever comes first. If none of the foregoing events occurs, then at the end of the
thirty (30) years no repayment shall be required. .
5. ASSURANCES THAT CONDITIONS OF GRANT WILL BE lV1ET. Provider agrees that, prior
to closing on this Grant, Provider will execute a Promissory Note (the 'INote") in the amount of the
Grant. The AHIF funds shaH be secured by a mortgage and a declaration recorded against the land
underneath each Low Income Units. Upon sale of any of the Low Income Unit to a Qualified
Purchaser, the Provider shall requ ire that the Qualified Purchaser shall enter into an addendum to the
land trust lease with the Provider that will obligate the Qualified Purchaser to sell the Low Income
Unit to another Qualified Purchaser or back to the Provider and acknowledge the funds the Authority
initially disbursed to ensure affordabHity of the Low Income Unit. The forms ofthe note, mortgages,
declaration, and llilid lease addendum are, collectively, the HLo8.l1. Securing Documents". ""Vithout
releasing Provider from any of its obligations to assure each Income Unit is owned,
occupied, sold or transferred only to a Qualified Purchaser, Provider expressly assigns the Authority
the right to exercise all of Provider's rights under any Loan Securing Document or otherwise, at the
sole discretion of the AuttlGrity, to enforce any provision relating to assuring that the Low Income
Units can only be owned, occupied or sold or transferred to Qualified Purchasers. To the extent that
declaration, land trust lease or other restriction, or any part of same, is or construed to be
unenforceable for any reason by any court or arbitrator, Provider must provide substitute security to
, h' . 1 ~~ t d . . 1 L A
tne AutAonty to eqmva.ent e!llec an i m eqUlva~enl amount.
The Loan Securing Documents as approved by
~ 11' . '1' , L . I
ro..owmg proVISiOns, Wallcn mUSt expres.sly De
secured by the Loan Securing Documents:
shall at least the
to survive repayment of funds
(1)
Prior to any sale or transfer of any ownership interest or title of aLow Income Unit,
the oVv'TIer a.lld Provider must give at least 300days notice to the Authority and
provide the Authority information sufficient to show that the proposed buyer is a
Qualified Purchaser.
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(2) The Authority must be named as a third-party beneficiary of the Loan Securing
Documents with express authority, at the sole discretion of Authority, to bring,
intervene in, or contest, in the name of Provider, any action or matter involVing
whether any Low Income Unit is or will be owned by a Qualified Purchaser.
(3) The conditions set forth in this Section 5A must be included as part of any future
agreements to sell or otherwise transfer title of a Low Income unit to any
subsequent owner.
B. The Loan Securing Documents and any other documents must not include any provision
permitting Provider or a buyer of a Low Income Unit to sell or transfer any ownership interest
or title of a Low Income Unit to anyone other than a Qualified Purchaser unless the sale or
transfer (1) is from a Qualified Purchaser back to Provider, or (2) is with the prior written
consent of the Authority at the Authority's sole discretion.
Provider, for itself and for its successors and/or its assigns, further agrees and consents to the
filing of such security instruments and this Agreement with the government officials or
entities as determined by the Authority to be appropriate to protect the interest of the
Authority in the Property.
If a Joan closing does not take place between Provider and the Owner within ninety (90) days
of the date of this Agreement, this Agreement shall be null and void and have no further
effect.
In the event that the Provider's Note is prepaid, the Provider shaH escrow such proceeds and
hold them in trust for the Authority until the expiration offue Grant Agreement, to be paid to
the Authority at such time as the AffordabiHty Requirements are" not maintained.
6. REP A VT\1ENT OF FUNDS. No repayment of the Grant shaH be required if, and only
following terms and conditions are met:
~,
l!1e
A.
The Low Income Units comply prmnslOns
Agreement, any other instrument securing Note, or
Note.
requirements set forth in this
- other instrument collateral to the
B. The Low Income Units remain homeowners hip housing, each unit purchased by a Qualified
Purchaser, or by the Provider to be resold to another Qualified Purchaser.
Should the Provider fail to meet any ofllie above tenns conditions, Authority at its option,
after sixty (60) days notice to , declare pmtlon of Grant
aitritm.table to the non=conforrn.ing Unites) due and payable Notwithstanding the
foregoing, the Authority acknowledges that the Loan Securing Documents and other documents the
Provider reQuires the Qualified Purchasers to sign Purchasers to repay the
portion of the AHIF Loan secured by their Low Income Unit to the Aut1orh.)' if they seH their Low
Income Unit to a non=QuaHfiec! Purchaser. The Authority win provide Ii reasonable period of time for
the defaulting Qualified Purchaser to repay the portion anIle p.Y.JP secured by its Low I?come
Unit to the Authority, before the Authority wHl take legal action the or prov!de the
above 60=oay default notice to Provider.
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7. COVENANTS. Without the prior written Consent of the Authority, which consent shall be within the
sole discretion of the Authority, Provider shail not:
A. To the extent Provider has such authority, permit an owner of a Low Income Unit to transfer
fee title in the Low Income Unit to anyone other than Provider or a Qualified Purchaser.
Should the Provider do or allow to be done any of the above actions, the portion ofthe unpaid Loan
allocable to the non=complying Low Income Unit shall become due and payable in full.
8. RESALEITRANSFER GUIDELINES FOR PROVIDER. The Loan Securing Documents as
approved by the Authority shall contain at least the following conditions:
A. In the event of a sale or transfer of any ownership interest or title of a Low Income Unit to
anyone other than a Qualified Purchaser or Provider, Provider must repay to the Authority the
remaining balance of the portion of the Grant attributable to that Low Income Unit iftbe
seller of the Low Income Unit does not repay such portion.
B. In the event the Provider obtains title to a Low Income Unit through foreclosure or a deed in
lieu of foreclosure, Provider can sell the Low Income Unit to another Qualified Purchaser
without repayment of the portion of the Loan to the Low Income Unit during the tenn of the
Loan as approved by the Authority.
C. In the event of a voluntary sale or transfer of title of a Low Income Unit to other than a
Qualified Purchaser as approved by the Authority, the Provider must repay the remaining
balance of the Grant allocated to the Low Income Unit ifthe seHer orthe Low Income Unit
does not repay such portion. The Authority may in its sole discretion agree to a lesser amount
in the event that the AUlhority determines Lhere are no net sale proceeds or where the net sale
proceeds are insufficient to repay the full Grant amount.
D. In the event the Provider retains a Purchase Option on the Low Income Unit, the Provider
can offer the homeownership opportunity to anomer Qualified Purchaser
repayment of the AHIF Grant the tenm of the
9. material alterations, modifications, or
waivers of provisions of this Agreement shaH be valid only when they have been reduced to vvriting
as an Amendment to t."his Agreement, signed and approved, and properly 6"}(ecuted the amhorized
representatives of the parties,
10, as
subcontract, transfer, or pledge this Agreement and/or the Activities to be
whether in whole or in part, withoutthe prior consent ofthe Authority.
. . h'" ~ '''1 . I L
transfer, asslgn, sell, or ot! eJW~se <llSpOSe ot or any or l~S ng.HS
or the Providerl s Mortgage without the consent
discretion.
not assign:
herel.1.nder,
Provider may not
Note
Aut~ority's sole
11.
A. The Provider agrees to defend, indemnify, and hold harmless Authority, its elected'
officials, officers, agents, and employees (including duly authorized volunteers) from any
liability, claims, causes of action,judgmeKrts, damages, losses, costs, or expenses, including
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Aug, 19, 2008
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reasonable attorney's fees, resulting directly or indirectly from any negligent act or omission
or willful misconduct of the Provider, its officers, agents, employees (including duly
authorized volunteers), or contractors, and/or anyone for whose act, omission, they may be
liab Ie in the performance of the Activities required by this Agreement, and against all loss by
reason ofthe failure of said Provider to perfonn fuBy, in any respect, all obligations under
this Agreement.
B. The Provider agrees to defend, indemnifY, and hold harmless the Provider, its officials,
officers, agents, and employees (including duly authorized volunteers) from any liability,
claims, causes of action, judgments, damages, losses, costs, or expenses, including
reasonable attorney's fees, resulting directly or indirectly from any negligent act or omission
or willful misconduct of its officers, agents, employees (including duly authorized
volunteers), or contractors, and/or anyone for whose act, omission, they may be liable in
connection with the Project.
C, In order to further the public purpose of providing low-income hOUsing by minimizing risk
to the Project, Provider agrees to keep in force at all applicable times during the tenn of this
Agreement and beyond such term when so requested by the Authority the following
insurance coverages:
Builders Risk Completed Value nonreporting fonn offire, extended coverage vandalism and
malicious mischief hazard insurance covering the replacement value of the Premises.
D. In the event that the Authority deteanines that the above coverages and Hmits or any other
insurar."1ce coverages and limits become insufficient, Provider agrees to furnish within thirty
(30) days, alternative coverages or increased limits requested by the Authority,
12. l.N"DEPENDENT CONTRACTOR Nothing is intended or should be construed in i:i!."1Y manner as
creating or establishing the relationship of co-partners, whether between the parties hereto 1 or as
constituting the Provider as the agent, representative, or employee ofthe Authority for al1)' purpose or
in fu'1)' manner whatsoever. The Provider is to be i1ild shaH remain an independent contractor with
respect to aU activities performed under this Agreement. The Provider represents that it has, or will
. g, 1" .. ,.. 1"'11' 'f, bO... '-1-' A b
secure at its own expense; all personne" requlfea m m.H .mg hS 0 'Hganon unCler t..rllS 'greemelll.
Any and all personnel of the Provider or other persons while engaged the performance of allY
activities required by the Provider under this Agreement shaH have no contractual relationship with
the AUlhority, and shaH not be considered employees of the Authority, Any and an claims that may or
might arise under the Unemployment Compensation Act or the Workers' Compensation Act ofine
State of Minnesota on l;lehalf of said personnel, arising out of employment or alleged employment,
. I d' l' " j . ",.., t' , "'. -' 'f, -= . .!.~
mCAU mg1 .l.ffiitatmn, C!atiTiS or CHscnmma Ion agamst rTO'VHler, ItS OHlcers, agent:'>,
contractors, employees Of a.ilY others, shall no be the responsibility of the Au lhorhy , The
Provider shaH defend, indemnify, hold the Authority, its officers, agents, ~'1d employees harmless
from any and aU such claims irrespectIve of a.gency,
board1 commission, or court Such personnel or ot.her persons shaH nor be entitled to
cornpensation, rIghts, or benefits of any kind including, vv-ithout
limitation; tenure rights, medical a.T:\d hospital care, sick and vacation leave, Workers I Compensation,
Unemployment Insurance, disability, severance pay, and Public Employees Retirement Act.
13 . DATA PRl-V ACY. To the extent that data on individuals are made available betvveen the Authority
and Provider pursuant to this Agreement, Provider agrees that it wm abide by the provisions of the
Minnesota Government Data Practices Act a..Qd all other applicable state a.1i.d federal laws; rules, and
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regulations relating to such data, and as any ofthe same may be amended, Provider agrees to defend
and hold the Authority, its officers, agents, and employees hannless from any claims resulting from
Provider's unlawful disclosure and/or use of such data on individuals.
14, HOUSING QUALITY STANDARDS AND PROPERTY REQUIREMENTS. Provider shall
maintain the Premises, at a minimum, to meet HOO's Housing Quality Standards, and maintain
compliance with all applicable ordinances, building and use restrictions, code-required building
pennits, and any requirements with respect to licenses, pennits, and agreements necessary for the
lawful use and operation of the Premises for the duration of this Agreement. Newly constructed
housing must meet the current edition of the Model Energy Code published by the International
Council of American Building Officials.
15. EQUAL OPPORTUNITY AND FAIR HODSING. Provider shall, and Provider shall comply with
all federal laws, executive orders, and implementing rules and regulations set forth to ensure that no
person shall on the grounds of race, color, national origin, religion, haiJ.dicap, familial status, or sex be
excluded from participation in, be denied the benefits of, or be subjected to discrimination under any
program or activity funded in whole or in part with AHIF funds.
These rec]Uirements include:
.
A. The Fair Housing Act, as amended, and implementing regulations issued at 24 CPR Part
100;
B. Executive Order 11063, as a,.'1lended by Executive Order 12259, "Equal Opportunity in
Housing, II and implementing regulations issued at 24 CPR Part 107;
C. Title V1 of the Civil Rights Act or 1964 and li'TIplementing regulations issued at 24 CFR
Part 1;
16. COUNTY POLICY ON AFFIRMATIVE ACTION EQUAL In
accordance Hennepin County's policies against discrimination. no person .shall be excluded
, '- . h. "'"',. L' . J.!,; b "'. ... s -rj,.,,,,, 0- PicLivi'-v on the
emplOymerh ng. lS or pal CIClpalwn m or me eneIHS or any program,e! \ .""', L ...i.L.. .t" L ,..
'''' I d 1" " "1'M' ~ , 'v' 1 -Ubil''''
graunas or race, co or, cree ., relIgIOn, age, sex, CHS8.DLh,y, Starns, se".UCL p' A ...
assistance status, or national origin; and no person is protected by applicable fed.eral or state
laws, rules, or regulations against discrimination shall be otherwise subjected to d.iscrimLllation,
Provider will also comply with applicable iocal rules for action.
federal, state, and/or local policies and requirements for affirmative action and equa~em~loYn:e~!
opportunity differ, the most policies apply. Jirovlder shaH
provide any reports or other documentation required by each jurIsdiction order to demonstrate
compliance with applicable laws, ordinailces, regulations.
17. ON ami applicable, Provider shan
. . h ' k b ,..,.. , '1. h' . . , T i'l"J 1 01 ':l'4h
comply wIL, aM ma reest eu:orts to nave 1[S t 1m pmVAuers :...I"'-'.'!' -~....v
AI11~ricans with Disabilities Act of 1990, Title I "Employment/, Title II "Public Services" - Subtitle
and III "Public Accommodations and. Services Operated by Private Entities" and aU ensuing
federal regulations implementing said Act.
18. El\TV1ROl',WiENTAL , Unless the Authority has already certified in writing that such
infonnation and documents have been provided, Provider shaH provide necessary information and
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relevant documents to the Authority to accomplish an environmental review that meets the
requirement of the AHIF Progra...m.
19. DISPLACEMENT, RELOCATION AND ACQUISITION. Provider shall take all reasonable
steps to minimize displacement of persons as necessary for implementation of the Activities. Provider
shall conduct all such acquisitions in its name, or in the name of another eligible organization
acceptable to the Authority, which shall hold title to all real property purchased. Provider shall
prepare all notices, appraisals, and documentation required in conducting acquisition under the latest
applicable regulations of the Unifonn Relocation Assistance and Real Property Acquisition Act of
1970, Section 1 04( d) of the Housing and Community Development Act of 1992, and provide all
relocation notices, counseling, and services.
20.. LEAD-BASED P AlNT. Provider shaH comply with the lead-based paint risk assessment,
notification, inspection, and correction of deteriorated or defective surfaces, as specified in the
Section 8 Minimum Housing Quality Standards and as required by the AHIP Program.
21. RECORDS AND REPORTS; MONITORING. Provider shan maintain records for the receipt and
expenditure of all AHIF funds.
All records pertinent to the AHIF Program shall be made available for inspection and copying upon
request of the Authority. The Authority shall have the right to review any and an procedures,
including property management agreements, and all materials, notices, documents, etc., prepared by
Provider in implementation ofthe Activities and Provider agrees to provide all information required
by any person authorized by the Authority to request such information from Provider for the purpose
of reviewing the same. The records of the Provider shall be subject to audit as provided in .MN
Statutes S l6C, 05 Subdivision 5 for a minimum of six years.
The Authority shall review the performance of Provider, its subcontractors, and O\vners of rental
housing assisted with AHIF funds to assess compliance with the requirements of the AHlF Program
set forth in this Agreement. The results of such review wHl be of public record.
. , " 1., A L' "h ,. . Lt.- '1.\
22. . ProvioeI' agrees to prov.!ae tue l-\utnont)' VvH _ an aumt report conSiSLen Wh.l
provisions ofOlV.tB Circular A -133 Audits of States, Local Governments Nonprofit Organizations
in accordance -with goveffiA'1lent auditing standards, as applicable, by July 1 ofthe year foHowing
distribution of AHIF funds. The cost of81"1 audit is not reimbursable from funds. The Authority
reserves the right to recover from Provider the full amount of any funds found to be improperly
expended or otherwise disallowed,
..,..., . ~ 1., II"'=' /..' .... ..4. ..~ '::-;_.-., ~ ~
is a nonprofit YfOVWer s assurance and. certmC2!.LWn r;;garumg ItS '!'.IHd.nc.a!
management system is attached hereto as 2, incorporated herein reference.
23.
to
or
"""'!lUl'peme1'lt j" '"Lhi<;: A DTPFmfmt 01.-. !;1TIV nnte 1TI0rt~age or other executed in connection
",.:t..r'"'2. ....c. ........ ilZ. ...t.L. "'-...... ~04Q"'__"'_"-=_"'._" ~"'J A..._ ,... -. .. ........ ~ , .... ..
,.t,:<< A greprnoni' a pel"iod of (1,9()) davs a1'l:er the Aut.~odty gives vvrltten notice
.HLu ... '" .....z"", . ". - ~ J ~ . . _ ,
specifying the form of non-compliance, shaH constitute breach of contract and a default by Provlder,
" any default shall occur, Authority may ~eclare the funds provided ,to Provider to ~e
forthwith due and payable without presentment, demand, or fTlrther notice of any kmd. The A.uthoniy
may also pursue remedies available under the terms of any mortgage or other instrument executed to
secure the Authority's interests in the AJiIF funds, 1Lnd other such remedies as may be available under
local, state, or federal laws.
o
o
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24. GRANT ADMINISTRATION. Deputy Executive Director, Hennepin County Housing and
Redevelopment Authority, shall manage this Grant on behalf of the Authority and serve as liaison
between the Authority and Provider. The Authority may from time to time designate other persons to
serve as Grant manager at its discretion and without amending this Agreement.
25. METHOD OF NOTICE. Any notice or demand which must be given or made by a party hereto
under the terms ofthls Agreement or any statute or ordinance shall be in writing, and shall be sent by
registered or certified mail. Notices to the Authority shall be sent to the Chair or Deputy Executive
Director, Hennepin County Housing and Redevelopment Authority, 417 North Fifth Street, Suite 320,
Minneapolis, Minnesota 55401-1362. Notice to Provider shall be sentto the address as given in the
opening paragraph of this Agreement.
26. PRE-DISBURsAL DOCUMENTATION. Prior to disbursal of any oftne Grant, Provider must
provide the Authority the following documentation:
A. Articles of Incorporation and Bylaws.
B. Certificate of Good Standing from the Secretary of State.
C. Celtlfied Resolution of Board of Directors of Provider authorizing the execution of this
Grant Agreement and the other documents referenced in Section 6 of this Agreement.
D. Provider will furnish to the Authority, within a reasonable time prior to the disbursal of
any funds under this Agreement, an opinion orits legal counsel, addressed to and in fom
and content acceptable to the Authority, which shall state legal counsel's opinion that:
(a) Provider is a duly orga.l'lized and validly existing nonprofit corporation under the laws
ofthe State of Minnesota; (b) Provider has full power, right lii1d authority to execute and
deliver this Agreement and the documents required herein, to accept the funds d.escribed
in Section 1 and commit to aU ofthe security described in Section 6 and to perform all
duties provided for in the documents described in Section 6: (c) to tl1e best legal
counsel's kn,owledge, there are no actions, suits or proceedings pending or threatened
against Provider or the Premises, and Provider is not in default respect to any orderl
writ, injunction, decree or demand of any court or governmental authority; and (d) the
consummation of this transaction and the performance of Provider's obligations under the
documents described in Section 6 will not result in any breach of, or constitute a default
under, 3.l1.y mortgage, lease, loan agreement, or which affects
Premises or Provider, or to v>,hich is a party,
Copy of a valid and fully executed purchase agreement or deed for
Premises.
P
L ,
must demonstrate
projected development costs.
been
G~
".
a
~ .. '- . .t- '"
pOAley Llide
favor of Provider the amount
Grant
- "'" l' 7'>., . . 't'L. ~t OC ~.he ~'"'S'lrQVl""e TI">nU!' TP>n
insurance l:"O!cy or .omaer eV]Qencmg '.!e procuremeH 1 Ul m. '" """",, A "''1 ,...~
pursuant to Section 12.
9
Documentation that aU rea estate taxes currently due and payable are paid and the
Premises is not subject to Jy pending assessments.
The Note, Provider's MO~gage, Assignment of Rights Agreement and Declaration
described in Section 6 of th1s Agreement.
I
Copies of any other docul1lentation required by the terms of this Agreement to be
provided at closing. I
27. !ERM][NA~ION O~ AGREEM..ENT}' In orde;!o ensmethe public ?urpos~ ofmaintaining low-
Income housmg and, If necessary, to re Hocate mnds to another provIder, thIs Agreement may be
terminated by the Authority if:
A. Provider is in default of its ~dertaking hereunder and the tenus a.1d condition, herein
beyond any applicable cure period.
I
Any information or represehtation presented to the Authority in connection with this
Agreement is materially unte. .
There is any materia! chang~ in or linrepaired damage to the Premlses.
i
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No. 1199
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1.
i
I
I
Documentstion of complilnce that the Premises comply with
ordinances, building and rse restrictions, building permits, etc.,
Commitment. l
Mechanic's Hen waivers fa any work initiated or completed on Premises within the
previous one hundred twent (120) days.
City Board Resolution sup. otting the AHIF funding of the project in the community
where the project resides.
applicable zoning
as required in the
J.
K.
1.
M.
N.
There is any significant unr~pa.ired damage to
income housing units. !
The Gral1t described in Pro~ider'S proposal, as accepted by the Authority, is not closed
within ninety (90) days oftbje date of this Agreement.
nremises adversely
" -
the
funds are not disburse;fd
,. I. --' L "41.' A ~
one year or tile uate or t.nlS .rlgreemenL.
Provided, however, that Ilie event of such
,.. 1 G i"1 n 'd' 'h," .'
the amounts or to.e . 'fant a.s weL as .Pmv!er' S oiJJJgat.!ons
. /' h jn! ].,
SectiOn 0, s..au sue.!
O'k1:~",;.;,,~ "0 --~"'.V
'UUQ.",LLVH L . !vp~,/
described
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D '''/' r
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PROVIDER, having signed this Agreement, and the Authority having duly approved this
Agreement on , 2007, and pursuant to such approval and the proper Authority
officials having signed this Agreement, the parties hereto agree to be bound by the provisions herein set
forth.
HENNEPIN COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY
By:
Its: Chair (or, where appropriate, the
Chair's designee)
By:
Its: Executive Director (or, where appropriate, the
Executive Director's designee)
APPROVED AS TO FORM AND EXECUTION
Assistant County Attorney
Date:
"lIVEST HE~"NEPIN AFFORDA..BLE HOUSING
TRUS~' a MinneSOmprofit C lJ'oration
l
Executive
STATE
IvlIN'NESOTA
)
) 55.
COUNTY
instrument was aclmowledged before me this
the -2.'l~ It- ~w <ft-1'r-i(" of West
. L h 'f'
non=profit corporatwn, on De air
day of
2007,
Houisng Land
Notary Public
EX1dUBIT 1
LEGAL DESCRIPTION
11
DORIS GRUIS
NO'rPJ<r\f ?U5L~Ji!!\l!'\lEOOrA
~Ity Commlssloo ~rea ~ :tI, ~10
I '92^IOQ
P,ug.l. VU
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P. 13/15
That certain real property located in the County of Hennepin, State of Minnesota, and legally described as
follows:
1. Address:
Legal:
2. Address;
Legal:
3. Address:
Legal:
4. Address:
Legal:
EXh"lBIT 2
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ASSURANCE AND CERTIFICATION
In connection with our responsibilities to manage the Affordable Housing Incentive Fund (AHIF)
Program funds that have been provided to our organization, we certify and assure that we are in
compliance with the financial standards set forth in Federal Office of Management and Budget (OMB)
Circular A-l33.
Specifically, our organization's financial management system provides for the following:
1. Accurate, current, and complete disclosure ofthe financial results of each federally sponsored and
AHIF project or program in accordance with the reporting requirements set forth in OMB Circular
A-133 (Financial Reporting Requirements).
2. Records that identifY adequately the source and application of funds for federally sponsored activities.
These records contain information pertaining to federal awards, authorizations, obligations, unobligated
balances, assets, outlays, and income.
3. Effective control over the accountability for all funds, property, and other assets. These assets are
adequately safeguarded and are used solely for authorized purposes.
4. Comparison of actual outlays with budget amounts for each grant or other agreement and, whenever
appropriate or required, comparisons of fInancial infonnation with performance and unit cost data.
5. Procedures to minimize the elapsed time between the transfer of funds from Hennepin Count)' to
our organization and the disbursement of funds by our organization.
6. Procedures for detemlining the reasonableness, aHowability, a.nd aHocability of costs accordance
with the provisions of the applicable federal cost principles and the terms of the grant or other
agreement.
7. Accounting records that are supported by source
8. Annual audits by a firm ofindependent Certified Public Accountailts to the effectiven.ess
of the financial management systems and. internal procedures that we have established to meet the
terms a.nd. conditions ofllie federal grants and 01".11.6r agreements. The audits are conducted on an
Qrganization~wide basisa.l'J.d include an appropriate sampling federal agreements.
9.
Pt. systernatic
recommendations.
to assure
of
J. O. Organizations that receive
standards set forth in certification.
us are
to
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No,1199 P. 15/15
This assurance and certification is given in connection with any and all AHIF funds received from Hennepin
County Housing and Redevelopment Authority after the date this ronn is signed. This includes payments
after such date for financial assistance approved before such date. The undersigned recognizes and agrees
that any such assistance will be extended in reliance on the representations and agreements made in this
assurance. This assurance and certification is binding on this organization, and on the authorized official
whose signature appears below.
Dated: \ \ \ \ ~ '.01
\J-.~ ~~~IV\ ~~ ~La.,J
Organization Nam ./J...o}
B~ial~~
14