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
.....................