Loading...
052896 EDA Official File Copy CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting #9 May 28, 1996 Agenda #10 President Edward J. Erickson Commissioner W. Peter Enck Commissioner Pat La Vine Norby Commissioner Gerald Otten Commissioner Terri Wehling 1. Call to Order 2. Roll Call 3. Approval of Minutes of May 13, 1996 4. Motion Approving Tasks Unlimited as the Owner and Service Provider for the Special Needs Rental Housing to be Located in New Hope 5. Resolution Approving Change Order No. 3 for Construction Contract for 6073/81 Louisiana Avenue North (Improvement Project No. 519) 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes May 13, 1996 Meeting #8 CALL TO ORDER President Pro tern Enck called the meeting of the Economic Development Authority to order at 10:17 p.m. ROLL CALL Present: Enck, Otten, Norby, Wehling Absent: Erickson Staff Present: Sondrall, Hanson, Donahue, Leone, Bellefuil APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner Norby, to approve the EDA minutes of April 22, 1996. Voting in favor: All. Motion carried. IMP. PROJECT 519 President Pro tem Enck introduced for discussion Item 4, Resolution Item 4 Approving Change Order Nos. 1 and 2 for Construction Contract for 6073/81 Louisiana Avenue North (Improvement Project No. 519). EDA RESOLUTION Commissioner Otten introduced the following resolution and moved its 96-09 adoption: "RESOLUTION APPROVING CHANGE ORDER NOS. I AND 2 Item 4 FOR CONSTRUCTION CONTRACT FOR 6073/81 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT NO. 519)." The motion for adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon the following voted in favor thereof: Otten, Enck, Wehling, Norby; and the following voted against the same: None; Abstained: None; Absent: Erickson; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner Wehling, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 10:19 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA May 13, 1996 Page I  EDA FOR AOTION O~rlgtnattng Department Approved for Agenda Agenda Section tZ~ty Manager EDA  28-96 Sarah Bellefuil Item No. By: Community Development Specialist By: 4 MOTION APPROVING TASKS UNLIMIr. 'ED AS THE OWNER AND SERVICE PROVIDER FOR THE SPECIAL NEEDS RENTAL HOUSING TO BE LOCATED IN NEW HOPE At the April 22 Economic Development Authority meeting, staff presented the above motion approving Tasks Unlimited as the owner and service provider for special needs rental housing to be located in New Hope. At the April 22 meeting, the EDA asked that the item be tabled to allow staff time to arrange a presentation by Tasks Unlimited at the May 28 EDA meeting. Staff has arranged for two speakers at the May 28 EDA meeting: 1. The first speaker will be Laura Klein, a Development Consultant with Project for Pride in Living (PPL), and a representative for the CHDO. Ms. Klein will discuss her relationship with the CHDO, the HOME funds that are available to support the project, the selection process used to find a service provider, and PPL's analysis of Tasks Unlimited proposal. 2. The second speaker will be a representative from Tasks Unlimited. The Tasks Unlimited representative will discuss the services provided by Tasks Unlimited, their organizational philosophy, years of experience, housing arrangements for clients, the Tasks Unlimited work program for clients, and their reception and involvement in other suburban areas. Tasks Unlimited will also be presenting a three minute video about their program. In 1993, the CO-OP Northwest Community Revitalization Corporation, a non-profit Housing Development Organization (CHDO), was established to provide affordable housing to low and moderate income residents of Brooklyn Park, Brooklyn Center, Crystal, New Hope, and Robbinsdale. Because of the establishment of CO-OP Northwest, the five cities have received Federal HOME Investment Partnership Program funds which the cities can use toward their affordable housing goals. Examples of HOME funded projects in New Hope include the handicap accessible twin homes built at 7901/7909 51st Avenue North and 6073/6081 Louisiana. MOTION BY ~ SECOND BY To: O, Review: Administration: Finance: RFA-O01 Request for Action 2 5-28-96 New Hope has also received $90,000 in HOME funds designated for special needs housing. Specifically, · a large house, duplex, or small apartment would be purchased and rehabilitated for low-income developmentally disabled or mentally ill persons. In addition, the City has committed a $90,000 zero interest loan that would come from Economic Development Authority (EDA) funds. The loan would be considered a first mortgage on the facility and would have to be paid back to the City. The City's role in the project would be to provide financing and staff services (including recommendations on site selection and rehabilitation) to the organization that would purchase and manage the site. At the September 25, 1995 EDA meeting, the EDA approved a Request for Proposals which was sent to service providers that own and manage special needs rental housing. The City received four proposals from possible providers. Staff from CO-OP Northwest, PPL, and the City interviewed three of the providers on February 22, 1996. Selection criteria included: sound budgetary practices, appropriate support services, financial ability to provide services, and a proven track record. Of the providers interviewed, Tasks Unlimited was rated highest by the interviewers in all areas. In addition, Tasks Unlimited received recommendations from Hennepin County staff and the Hennepin County Board of Commissioners. The interview team also went on a tour of five Tasks Unlimited facilities located in Golden Valley, Richfield, and Bloomington, and their training Center in St. Louis Park. All of the facilities are in large, single family homes or converted duplexes. Most of the facilities host four to six individuals who reside in the home on a long term basis. Staff recommends that Tasks Unlimited be the owner and service provider for the special needs rental housing to be located in New Hope. If the EDA approves Tasks Unlimited as the owner and service provider, staff will begin working with Tasks Unlimited to find a suitable transitional housing site in New Hope. In addition, the City and Tasks Unlimited will enter into a Letter of Understanding with regards to the project. New Hooe Lodge Prooosal Submitted to: Northwest Human Services Council Submitted by: Tasks unlimited Lodges and Tasks UnEmited 'Hental Health Services New Hope Lodge I. Narrative A. Housing plan 1. Brief description Tasks Unlimited Lodges proposes to establish a lodge in the City of New Hope with the assistance of The CO-OP Northwest Community Revitalization Corporation and the City of New Hope. The project would provide affordable Iow income supported housing for six to eight adults disabled lay serious and persistent mental illness. The no-interest 30-year toan will bring peer-supported group living within the financial reach of all qualifying lodge members. Members will pay no more than 30% of their income for rent and utilities. Ail residents will be at or below 50% of Metropolitan Medium Income. A lodge is a peer-run shared housing unit in which six to eight adults with serious and persistent mental illness live together as a "family" sharing in the work, finances, and mutual support and friendship. The group collects a monthly lodge membership fee from which they I~ay for food, household supplies, phone service and discretionary items such as cable TV, and some furnishings not provided by the landlord. The group also collects and manages a utility fund from which they pay the utilities. Members pay a monthly rent to Tasks Unlimited Lodges, the "landlord." Lodge members receive support services from a lodge coordinator through Tasks Unlimited Mental Health Services who consults with them on managing their group, and provides mental health case coordination services to the members. They also receive vocational training, coaching, and sometimes special job-site supervision from one of Tasks vocational branches such as Tasks Unlimited Janitorial Service. All'members (residents) work a minimum of 4 hours per day. The goal is to provide quality, affordable, peer run, permanent supported housing. Tasks Unlimited Lodges currently operates 12 similar housing units .. ranging from three to eight members each. They are located in single family homes or d~e4exes. FcYur of the existing units have been established with assistance of Hennepin ~ourm/Suburbatt HOME funds, and another was established with the City of St. Paul HOME 2. Describe any unique features of the proposal. One unique aspect of the proposal is the peer-run nature of the lodge. This format is not experimental, but one of the most researched and tested models of supported housing for this population. The lodge model was developed in the early 1960's by a research team headed by Dr. George Fairweather working with a group of veterans in Palo Alto, California. After successfully replicating their findings they developed a federally funded dissemination program in the early 1970's. Tasks Unlimited, Inc., was one of the early organizations to replicate the program. Tasks has given national leadership to the lodge movement. Tasks' success is featured in a ten-page case study in a recently published book, Empowering the Mentat~y ii), by Dr. George Fairweather and Dr. Esther Fergus. Tasks Unlimited is the only Page I '~ew Hope Lod~3e Proposal Submitled to: Northwest Human Service~ Council Submitted by: Tasks Unlimited Lodses and Tasks Unlimited ~4ental Health Services ~r~a,~,zat~on ~n M~nnesota usin§ this nationailv acc!aimed model. ,-~t a nat~onai com, e~ -:~ of Fa~r-v~eather programs heid in September of 199.5 Tasks Unlimited won an aw~r~ ior :me best ~nte§ration of housing, support services and employment. Residents will have completed training at Task Unlimited Training Center which ~s a transmonat supported housin§ program. Trainin§ Center residents come from Regional Treatment Centers and other institutional settings or have demonstrated difficulty tiring on their own and are Teferred by the Hennepin County Adult Mental Heatth Services Division. At the tram!ng center they develop the skiils and demonstrate their ability, todowetl ~n a lodge type setting. B. Experience and capacity of the applicant 1. Describe the extent and length of experience the applicant has in developing and managing similar housing activities. Tasks began running lodges in 1970 in the City of Minneapolis where six units now Latter lodges were added in Ramsey and Anoka counties and more recently in suburban Hennepin County. Tasks is recognized as a CHODO by the Suburban Hennepin HOME Program. Tasks Unlimited, Inc. and its subsidiaries are financially sound organizations with good, stable management and a committed community board including several consumers and family members. The five member senior management team at Tasks averages over 17 years seniority with the organization. Tasks Unlimited's mission is to assist adults with serious and persistent mental illness enhance their status by promoting self-sufficiency. 2. Provide a list of projects which the applicant has proposed, completed and or managed. 1. Aces Lodge--4731 Dupont Avenue North--Minneapolis, established in 1970. Capacity 4 2. Blue Star Lodge--2917 Fremont Avenue North--Minneapolis, established in 1970. Capacity 6 3. Comets Lodge--3639 Park Avenue South--Minneapolis, established in 1976. Capacity 8 4. Masters Lodge--4155 Wentworth Avenue South--Minneapolis, established in 1971. Capacity 6 5. Spotless Lodge--5357 Emerson Avenue North--Minneapolis, established in 1974. Capacity 8 6. Capital City Lodge----414 Van Buren Avenue--St. Paul, established in 1981. Capacity 7 7. Rockets Lodge--6711 Main St. NE.--Fridley, established in 1991. Capacity 6 8. Dut~lex--3241 Cedar Avenue South--Minneapolis, established in 1983. Capacity 2\2 (4) 9. Flyers Lodge--7915 Stevens Avenue South--Bloomington, established in 1993. Capacity 4 10.Astros Lodge--6733 Lyndale Avenue South--Richfield, established in 1994. Capacity 4 Page 2 New Hotoe Lodge Progosal Submitted 1to: Northwest Human Services Council Submitted b,~: Tasks m~nilmited LodR. es and Tasks Unlimited ,~enta| He;qth Services ii. '~ovas Lodge--8032-34 Portland Avenue South--Btoom~n§ton, established 1994. Capacity 6 12.Saints Lodge--2112 St. Clair Av. --St. Paul, established in 1995. Capacit7 7 13. Lodge Training Program--4027 Utica Av.--St. Louis Park (established in ,Minneapolis in 1981, relocated to St. Louis Park in 1995). Capacit"V, 9. This Iocatior~ differs from the others in that it is transitional housing and has more intensive support and training services on site and prepares people for living in one of the other permanent housing lodges. 14.Approved for another lodge in Suburban Hennepin County--t 995 3. Describe the extent and length of experience the applicant has in working with and or providing services to the targeted population. Tasks Unlimited has been providing integrated housing, mental health supports, employment, and vocational services to adults with serious and persistent mental illness since 1970. Currently it operates four programs with host county agreements in Anoka, Hennepin, and Ramsey Counties. Average weekly census is 155 adut~ with serious and persistent mental illness. In addition to supported housing, services include: mental health supports, recreation, advocacy, .vocational rehabilitation, and employment. Adults with serious and persistent mental illness are the only target population for the agency. 4. Explain how the applicant will be able to maintain the proposed level of support services for the life of the project, if applicable. Tasks Unlimited has had a purchase of service contract with Hennepin County to provide mental health support services since 1974. While there are no guarantees, the kind of services Tasks provides are high on the priority list for funding. Tasks' budget and service capacity increased every year from 1970 to 1995. The vocational funding seems to be equally secure and flows directly from the Minnesota Department of Economic Security, Rehabilitation .Services. $. Describe the. applicant staff levels and expertise to implement the activity Mat~,*GgM~.~IT: Ta"Jt~"~:t~li~it~d Lodge~ has management personnel, accounting department, and mair~-~a~¢e department staff. The five member senior management teams averages over ] $ years of service with the organization. Tasks has over 25 years of experience in operating similar supported housing unilm for this population. " SUPPORT STAFF.'"T'J~tO eigh~ person lodge would be assigned a staff coordinator. The c~e~,dinator provides housing, mental health, a~et vocational supports for one or two lodge ~;,.,,,~ ,~--~ndi~8 on experience, the size of the groups and extent of vocational duties. Tasks Unlimited has additional staff who will provide vocational rehabilitation and support to the lodge members. Additional support staff include the lodge program director and the recreation coordinator. LOOGE MEMBEltS: Lod~members are responsible for usuat activities of maintenance performed by home renters, such as lawn mowing and snow shoveling. Tasks Unlimited Lodges has a full-time maintenance manager responsible for performing or coordinating other repairs and maintenance. 6. Describe the financial capacity of the applicant to undertake this activity. T~e organizations have a combined budget for 1995 of $4.1 million. Tasks Unlimited Lodges has real estate holdings valued at $1,238,000 with an indebtedness of $1,084,000. The Iow indebtedness makes it possible to maintain very affordable housing for this population Page 3 ',~ew Ho~e Lod~Je Proposal Submitted to: ~iorthwest Human Services Council Submitted by: Tasks Unlimited Lodges and Tasks Unlimited Menial Health Services · ,,. :~'ou~ ~uoJic su0sidies. These proDemes are used entirely'for hous~n§ and support sar', ce5 for :he c!~ents. The agency has nacI an extended history, of sound financial managemen[ stab~iit¥. One of Tasks strengths is putting multiple funding streams together for the benefit ot ~ntegrated se~ices for its clients. Availability of HOME funding has strengthened TUL's ability to provide quality, safe, affordable housing to Iow-income disabled adults. C. Affordability 1. Describe the extent to which the proposed activity provides long-term affordable housing and how it will be accomplished. The project provides long term affordable housing for six to eight adults disabled by mental illness. Lodge members currently pay $178 per month for furnished housing with a s~ngie bedroom. They pay their lodge group a utility fee. The group then pays their utilities from this fund. The utility fee is based on actual usage but is tikety to be about $50. Tasks Unlimited Lodges would guarantee that these two figures do not exceed 30% of an individuals monthly income. We ha,,;e a few lodge members who have.been in our Hennepin County Lodges for over 23 years. This supported housing is designed to be available to the resident as long as they need and want it. 2. Describe how the project provides affordable housing and the anticipated income range of the residents in the project. Tasks lodges provide a highly affordable housing option. The peer run home with s{'aff consultation not only reduces shares and expenses, but increases the supports available to the participants. This use of "natural supports" contributes to the long-term viability of the housing. Our average lodge client's income is about $500 from wages and $490 from benefits providing a total average of approximately $1000 per month, well under the income guideline. We can manage this in such a way as to assure that no one over the income guideline would be eligible for admission to this project. It is important to note that most of our clients have extraordinary ongoing medical expenses for medications, generally ranging from $75 to $250 per month and in cases of clients on newer medications as high as $1100 per month. Those at the high end would qualify for some Medical Assistance on a spend down. The point is that for most of them a sizable portion of their income goes for medications on a continuing basis. Without the help from the medication they would need to be hospitalized. D. Evidence of need 1. Demonstrate the need for the proposed housin$ and support services for the targeted special needs population. C~ wide housing alternatives for adults with serious and persistent mental illness is a ,,,ant azu;t pressing, need. It has been one of the priority unmet needs of the Hennepin County ~dental Health Advisory Committee for several years. It was again named as a top priority in a study by the Mental Health Association of Minnesota. Affordable, permanent, supported housing is especially needed in the suburban areas of the county. Six of our nine Hennepin county lodges are in inner Minneapolis and there is high demand for suburban housing in "nicer, safer" neighborhoods. Demand for the lodge program has increased over the last three years with lodges remaining filled to capaciW and almost no one choosing to leave the lodges. This increased demand is in part a result of people realizing they have need for more support than is available in their own apartments. Currently Tasks has four clients who are waiting for placements or will be ready to transfer from our training center to a lodge in the next couple of weeks. Additional clients are awaiting admission to the training center. Demand for training has increased with the move Page 4 SPECIAl, NEEDS liENTAL liOUSING I'RO FORMA YRI YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YRI0 6,oss Rc,fl h~comc 17,088 17,568 18,048 18,528 19,008 19,488 19,968 20,448 20,928 21,408 P*,kiag Income 0 0 0 0 0 0 0 0 0 0 Laun&¥ inco~ne 0 0 0 0 0 0 0 0 0 0 OIlier ~OUI'CCS Spccify: Hennepin County 12,902 13,160 13,423. 13,691 13,965 14,244 14,529 14,819 15,115 15,41/ Mental Health Div. Tolal Gross Income 29,990 30,728 31,471 32,219 32,973 33,732 34,497 35,267 36,043 36,825 Vacancy~7% of rent 15,892 16,338 16,784 17,231 17,677 18,123 18,570 19,016 19,463 19,909 1 ncome _ Ellrecflve income 28,794 29,498 30,207 30,922 31,642 32,367 33,099 33,835 34,578 35,326 Espenses Operating Expcmlscs 10,472 10,786 11,109 11,442 11,785 12,138 12,502 12,877 13,263 13,660 Real Estalc 'raxcs 2,400 0 0 0 0 0 0 0 0 0 SuppoflScrviccs 12,902 13,160 13,423 13,691 13,965 14,244 14,529 14,819 15,115 15,41/ Total Expenses 25,774 23,946 24,532 25,133 25,750 26,382 "~7,031 27,694 28,378 '29,077 Net Operathig lnco,,,e 3,020 5,552 5,675 5,789 5,892 5,985 6,068 6,141 6,200 6,249 Debt Semite 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 Cash I"lo~v 20 2,552 2,552 2,675 2,789 2,985 3,068 3,141 3,200 3,;'4'~ bud H C ennepin ounty An Equal Opporrum?,' ..~.'": November 30, 1995 To Whom it May Concern: Tasks Unlimited Lodges has received HOME Investment Partnership funding through the Hennepin County Consortium in 1993, 1994 and 1995. Funds were provided for the acquisition and rehabilitation of five lodges and a nine bed training facility. To date, Tasks Unlimited Lodges has completed three lodges and the training facility. Tasks ha~ proved to be expeditious in their project implementation and committed to providing quality housing for their clients. Sincerely, Barbara Hayden Administrative Manager Office Of Planning & Development Development Planning Unit 10709 Wayzata Boulevard, Suite 260 Minnetonka, Minnesota 55305 (612) 541-7080 FAX:(612) 541-7090 PE >.'N~' STEELE COMMISSIONER TDD BOARD OF I'-IENNEPIN COUNTY COMMISSIONERS A-2400 GOVERNMENT CENTER MINNE..kPOLIS, ~IINNESOTA 55487-0240 December 12, 1995 Mr. Dave Greeman Northwest Hennepin Human Services Council 7601 Kentucky Avenue North Brooklyn Park, MN 55428 Dear Mr. Greeman: I write in support of Tasks Unlimited's application for a special Iow-interest loan to provide affordable housing for Iow-income disabled people. Tasks Unlimited is one of my favorite programs. I especially like the way they assist people to obtain and maintain employment, thus reducing and in some cases eliminating dependence on welfare. I understand the selection criteria include consideration of the applicant's proven ability to provide supported housing and the stability of their funding. I have personally visited Tasks-sponsored "Lodges" and spoken with the residents and I was very impressed with the quality of the services and the upkeep of the homes. As for stability, I understand Hennepin County has contracted with Tasks Unlimited to provide services, now known as "supported housing," long before the term was invented. Nothing is 100% certain in this long overdue period of increased fiscal responsibility, but I consider Tasks Unlimited an example that other human services programs need to follow. I am not the only one who thinks so; Tasks Unlimited is one of the rare programs that enjoy bipartisan support of the entire Hennepin County Board. Tasks was one of the programs that saw a staff-recommended increase rather than a cut as many programs received. Sincerely, Penny Steele County Commissioner - 7th District PS:pr PRLNTED ON RECYCLED PAPER Transitional Housing RFP Ranking Form --January 24, 1996 h:\housing\transtn xls Selection Criteria HOMES Wright NH Lodge W. Hennepin Sound bugetary practices 3 4 5 '~ Appropriate support services 5 3 3 3 Financial ability to prOvide services 3.5 2 4 2 .... Meet affordability needs 3 2 4 2 Proven track record 3.5 4 4 1 =rovide,,,,quality housing opportunities Total Points (30 points possible) 18 15 20 9 Interview -- February 22, 1996 Selection Criteria HOMES Wright NH Lodge Sound bugetary practices 2 4 5 Appropriate support services 3,5 2.5 4.5 Financial ability to provide services 3.5 3 5 Meet affordability needs 2 2 5 Proven track record 2.5 3 5 Provide quality housing opportunities Total Points !30 points possible) 13.5 14.5 24.5 Please rank each criteda on a 0 - 5 scale ( t 0/9/9 s ) REQUEST FOR PROPOSALS To Own and Manage Special Needs Rental }lousing and Provide Supportive Services as Necessary The CO-OP Northwest Community Revitalization Corporation, a non-profit provider of affordable housing, and the City of New Hope are soliciting proposals from orgamzations seeking to own and manage an affordable multi-unit remal housing facility for low-income developmentally disabled, physically disabled or mentally ill persons or households and provide appropriate supportive services. Background The CO-OP Northwest Community Revitalization Corporation is a non-profit 501 (c)(3) Community Housing Development Organization (CHDO) with a mission of groviding affordable housing to low- and moderate-income residents of Brooklyn Center, Brooklyn Park, Crystal, New Hope and Robbinsdale. Additional goals of the organization are to stabilize neighborhoods and maintain the existing housing stock through working closely with participating cities. The Corporation was formed in 1993 and its activities are supported by the five cities and Northwest Hennepin Human Services Council. The Corporation has recently contracted with Project for Pride in Living (PPL) to provide housing development assistance. The City of New Hope has extensive experience in housing development and in providing affordable housing opportunities for low- and moderate-income persons. Past and present projects include: a scattered site housing acquisition and rehab program to create affordable homeownership opportunities for low and moderate households; scattered site housing rehab loans for low and moderate income homeowners to maintain their homes; a Section 8 rental assistance program; construction of barrier free affordable rental housing for people with physical disabilities; and, construction of affordable barrier free owner-occupied housing for persons with disabilities. Pro~ram Description The CO-OP Northwest Community Revitalization Corporation and the City of New Hope have entered into a partnership to renovate a multi-unit housing facility in New Hope for use as long- term affordable rental housing for low-income developmentally disabled, physically disabled or mentally ill persons. An organization (or organizations Submitting a proposal jointly) will be selected through this RFP process to own and manage the housing and place staff on-site to provide appropriate support services. The City of New Hope has committed Economic Development Authority (EDA) funds and the CO-OP Northwest Community Revitalization Corporation has committed Federal HOME funds towards acquisition and renovation costs. The owner/provider selected through this RFP process would acquire the property. The City has identified several properties as potential project sites containing between 4 and $ units. The owner/pro,,sder will identify the needs of the population being served and work directly with the CO-OP Northwest Community Revitalization Corporation and the City of New Hope to identify the site and rehab needs appropriate to the special needs population. The New Hope Community Development Department will contribute staff time to oversee the project preparation, development, renovation specifications and the rehab process. The capital financial assistance provided by the City and the CHDO would enable the owner/provider to maintain the property as permanent, safe housing for persons/households in one of the three designated special needs population groups with incomes at or below 50% of the Metro area median income. The housing facility would be combined with a range of appropriate supportive services to enable the residents to live successfully in the community. There would be legal agreements with cross-guarantees between the CO-OP Northwest Community Revitalization Corporation, the City of New Hope, and the owner/service provider to guarantee a satisfactory quality of operation and supervision in the housing facility. Form of Financial Assistance The City of New Hope has committed $90,000 in Economic Development Authority (EDA) funds, and the CO-OP Northwest Community Revitalization Corporation has committed $90,000 in Federal HOME f-un~ to help cover acquisition and renovation cost& Both sources of financing will be allocated in the form of loans to the owner/provider selected through tiffs RFP process. The City financing would be secured through a $90,000 first mortgage on the property at 0% interest. Full repayment of the $90,000 first mortgage is expected. The CHDO would have the second mortgage on the property also at 0% interest. Repayment of the second mortgage is also required. Repayment schedules for the first and second mortgages would be negotiated upon selection of the owner/provider. Goals .. The goals of the project are as 1) Rehabilitalv a ¢-8' trrdt multi-family housing facility to increase the supply of housing for per~-'-~'~ilie~ a4th: a. Ph~aiml disabilit~s; b. Deve!opnma~ disabilities; or c. Mental illness. 2) Establish and maintain tong-term ( 10-20 years) xffordable housing available to persons/families at or below 50% of the Metro area median income in one of the three special needs listed above 3) Maintain and improve the existing housing stock in the City of New Hope and surrounding cities in Northwest Hennepin County. Criteria for Selection: Stronger consideration will be given to those proposals that: 1. Demonstrate an understanding of sound budgeta~, practices in managing~' ~ atforc~le multi-family housing as demonstrated through the pro forma budget subrmtted by the applicant. 2. Include appropriate supportive services for the target population being served which help to integrate that population into the broader community. 3. Demonstrate the financial ability to provide supportive services for the identified low- income special needs population for at least 10 years. 4. Adequately meet the affordability needs of the target population as demonstrated in the budget submitted by the applicant. 5. Demonstrate a proven track record of providing decent, safe long-term affordable housing. 6. Provide quality affordable housing opportunities for low income special needs residents of New Hope, Brooklyn Center, Brooklyn Park, Crystal and Robbinsdale. Eiin_ible Applicants .. Non-profit or for profit housing and/or supportive s~n'vic~ providers. Proposals submitted jointly by housing providers and supportive service providers will be accepted. Profram Reauirements Applicants must comply with ail requirements of the HOME Investment Partnerships Program (HOME). Any additional financing or subsidies proposed by applicants must also be in accordance with Federal HOME requirements. The federal regulations governing the HOME program can be obtained by contacting Dave Greemart, at Northwest Hermepin Human Services COuncil, at 493-2802. Applicants must be committed to operating the multi-family housing facility as affordable housing for a designated special needs population for no less than 10 years. 3 The selected owner/provider must be willing to market rental units in accordance with the Affirmative Marketing Plan adopted bv the CO-OP Northwest Community Revitalization Corporation which includes, but is not limited to, compliance with Federal Fair Housing laws The selected owner/provider must locate s.:aff on-site at the housing facility to provide necessary supportive services and any required supe~'l~lon. Selection Process and Funding Commitmcm Projects will be selected based upon the established goals and priorities. A selection committee consisting of representatives of the CO-OP Northwest Community Revitalization Corporation and the City of New Hope will make a recommenoauon to the CO-OP Northwest Community Revitalization Corporation Board of Directors and the New Hope Economic Development Authority. The initial funding commitment will serve as a preliminary commitment. A final commitment will be made at the point a contractual agreement has been executed. The Hennepin County Housing Consortium will review the contractual agreement prior to its execution to verify that the agreement is consistent with HOME requirements and those established by Hennepin County. The CO-OP Northwest Community Revitalization Corporation and the City of New Hope reserve the right to reject all funding requests and rescind tiffs request for proposals. Deadlines for Proposals All proposals must be submitted by 4:30 p.m., December 15, 1995. Mail or deliver proposals to: Northwest Hermepin Human Services Council, 7601 Kentucky Avenue North, Brooklyn Park, MN 55428. Direct any questions to David Greeman at Northwest Hermepin Human Services Council at 493-2802. PROPOSAL CONTENTS L Narrative · . Items A through E should be addressed in the Narrative section. The Narrative section is limited to 5 pages. A. Housing Plan 1) Provide a brief description of the plan for owning and operating the housing facility as long-term affordable housing and providing appropriate support services for residents. In responding to this item, identify the special needs population for which the housing would be provided. 4 2) Describe any unique features of the proposal. B. Experience and Capacity of the Applicant 1) Describe the extent and length of experience of the applicant(s) in owning and managing similar housing activities. 2) Provide a list of projects which the applicant has proposed, completed and/or managed. 3) Describe the length of experience the applicant has in working with and/or providing services to the targeted population. 4) Explain how the applicant will maintain the proposed level of support services. 5) Describe the applicant stafflevels and expertise to implement the activity. 7) Describe the financial capacity of the applicant to undertake the activity. C. Affordability 1) Describe the extent to which the proposed activity provides long-term affordable housing and how it will be accomplished. 2) Describe how the project provides affordable housing and the anticipated income range of residents. D. Evidence of Need 1) Demonstrate the need for the proposed housing and support services for the targeted special needs population. .. E. Supponive Service~ 1) Describe supportive services which are an integral part of the proposed activity and why the services are appropriate for the residents. 2) Describe how the services will be provided for the residents and financed. H. Budget 1) Provide a detailed operating budget, using the pro forma budget attached. Include yearly expenses related to operating and maintaining the property as affordable housing and providing appropriate supportive services. Also provide irdormation on yearly revenue sources including rents and other sources including reimbursement for the provision of resident services if applicable. Please also list debt service and cash flow to indicate the proposed schedule for repaying the mortgages aeld by the City and the CHI)O. The repayment schedule for the first and second mortgages will be negotiated upon the selection of an owner/provider For the purpose of completing the pro forma budget, assume that the property will be a fourplex with a $1 I0,000 purchase price and $70,000 in rehab and conversion costs. Also assume a 3% annual increase in expenses and revenues. ('Note: Applicants should not assume that this will be the actual scenario for the project selected.) 2) Provide information on the proposed repayment schedule for the, first and second mortgages. Ill. Community and Constituency Support 1) Letters of' support may be attached as appendices to the application. SPECIAL NEEDS RENTAL HOUSING PRO FORMA YRI ¥R2 ¥R3 YR4 YR$ ¥R6 YR7 YR8 YR9 YRI0 Income (;eo~ Rct]l Parkin~ Income | ,mlndrv [llcolT10 Othce S,,u~ccs gpecil~¥ Total G~. Income Vacancy (a~ 7% Eff~live Income Expen~e~ Operaling I~xpenses Real I~sfalc 'l'a~ s Suppod ~etvices Tolal Expennes Net Operaling Income ~ebt Semite Cash Flow EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA  '~-96 Sarah Bellefuil Item No. By: Community Development Specialist By:. 5 RESOLUTION APPROVING CHANGE ORDER NO. 3 FOR CONSTRUCTION CONTRACT FOR 6073/6081 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT #519) At the November 13, 1995 EDA meeting, the City awarded the contract to construct a twin home at 6073/608 l'Louisiana Avenue North to Michlitsch Builders for $199,900. At the May 13, EDA meeting, the EDA approved two change orders for $1,704.72. Of that amount, the Abbotts paid $1,543.39 directly to the builder for cosmetic additions to 6073 Louisiana Avenue. The remaining $161.33 was charged to the City. The change order presented this evening is for $1,172.50 and includes: $962.50 for 2-10 Insurance (2-10 Insurance is required for new construction financed through FHA financing. The $962.50 will be reimbursed to the City through HOME funds after the property is sold.) $210 for additional curbing (additional curbing was required when the driveway was installed. This will be paid for using CDBG or EDA funds.) Staff recommends approval of a resolution authorizing a change order for the property located at 6073/6081 Louisiana Avenue North. qb-lO. Review: Administration: Finance: RFA-O01 EDA RESOLUTION NO. 96- RESOLUTION APPROVING CHANGE ORDER NO. 3 FOR CONSTRUCTION CONTRACT FOR 6073/6081 LOUISIANA AVENUE NORTH WHEREAS, the EDA has entered into a Building Construction Contract with Michlitsch Builders, Inc., to construct a handicap accessible twin home on Lots 1 and 2, Block 1, Cameron 3rd Addition; and WHEREAS, the City is requiring Change Order No. 3 for costs totaling $1,172.50; and WHEREAS, Change Order No. 3 includes $962.50 for 2-10 Insurance which is required for new construction financed through FHA financing and will be 13aid directly to the builder upon completion of the project; and WHEREAS, Change Order No. 3 also includes $210 charged to the City for additional curbing that was required when the driveway was installed and will be paid directly to the builder upon completion of the project. NOW, THEREFORE, BE IT RESOLVED, by the EDA in and for the City of New Hope as follows: 1. That the above items are incorporated in the above reference; 2. The change order attached hereto as Exhibit A is approved, and the President and Executive Director are authorized and directed to sign the change order on behalf of the EDA; 3. The contact price to be paid by the Owner to the Builder shall be increased by $1,172.50, to $201,233.83. Adopted by the Economic Development Authority in and for the City of New Hope this 28th day of May, 1996. Edward J. Erickson, President Attest: Daniel J. Donahue, Executive Director MICHCIT$¢H ~UIL~£R$~ INC 6125571694 P. 01 Chnnge Order - 6073/6081 Louisiana Avenue North Date: May 22, 1996 1. 2-10 Insurance for 6075 Louisiana Avenue North $481.25 , · 2. 2-I0 Insurance for 608 ! Louisiana Avenue North $481.25 ' ~, Addificmal cement curbing_ . + ~10.00 Total $1,172.$0 Micblitsch Builders, 4770 Quinwood Lane Plymouth, MN 55442 cnangts Apparent I~y: : Dale: By: .__ Date: By:_ _ , . ~ICHLIT$CH ~UIL~£RS~ I~C 6125571694 P.O1 MICHLITSCH BUILDERS, INC. 4770 QUINWOOD LN. N., PLYMOUTH, MN 55442 6t2-557-t694 LICENSE ~g)001038 FAX 557-6791 ~I~HLIT~CH ~UIL~£R$~ IN¢ 6125571694 P.02 F~m : ELITE Concrete_, Inc. PHONE No. : 61~ 441 5~6 May, O~ 19c~5 G:2?AM' P02 r'UTE CONCRETE, INC, ANOKA, MN NO,: ~/30/96 chlttsch Builders, °~V Hichlitsch lac. 6~73 - 6081 ~OUI~IA~A 4770 ~uinwood ~anm N ~ HOPS, ~N Pl~outh~ Hinn~o~a 55442 ......... ;' Sltework & Br~-~-~- ....... 4,57~.0 ~ pem~ Curb ~20,0 ..... Treated 2x6 60,0 ~FNT~ .N.t 3o s~s 1.5% Monthly Flnanoe Charge TOTAL ~ 5,064. C .....................