Housing and Redevelopment Authority

HOUSING & REDEVELOPMENT AUTHORITY AGENDA 3RD FLOOR CONFERENCE ROOM MONDAY, JULY 13, 2026 6:00 PM 1. Call to Order 2. Approve Agenda 3. Introduction of HRA Executive Director- Casie Steeves 4. Approval of the Minutes 5. Program Reports A. Mobile Home Coordinator Report- Q2 2026 B. June 2026 Operating Fund Financial Report 6. Property Reports A. June 2026 Scattered Sites Update and Financial Report B. Status Updates 7. Public Hearings 8. Items for Discussion A. Housing Partner Presentation - Three Rivers Community Action Agency - Laura Helle B. Overview of a Proposed 10-Year Loan to Hill Block LLC for the Hill Block Redevelopment C. Strategic Priority #1 - Request for a Construction Loan/Discussion of Creating a Construction Loan Program 1 Discussion of Construction Loan Program and Chamber Trust Request 2 Resolution 2026-19 Amend Resolution 2026-13 to Clarify Land Transfer and Construction Timeline for 728 East Division Street D. 2027 HRA Preliminary Tax Levy E. HRA General Updates - Verbal Only 9. Adjournment HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 1 of 32 Page 2 of 32  Agenda Item: 2 Request for Action TO: Faribault Housing & Redevelopment Authority FROM: THROUGH: David Wanberg, Director of Community and Economic Development MEETING DATE: July 13, 2026 SUBJECT: Approve Agenda BACKGROUND: REQUESTED ACTION: ATTACHMENTS: HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 3 of 32  Agenda Item: 3 Request for Action TO: Faribault Housing & Redevelopment Authority FROM: David Wanberg, CED Director THROUGH: David Wanberg, Director of Community and Economic Development MEETING DATE: July 13, 2026 SUBJECT: Introduction of HRA Executive Director- Casie Steeves BACKGROUND: The City of Faribault is very pleased to welcome Casie Steeves as the new HRA Executive Director! A six-person interview committee, which included two HRA members, noted Casie's extensive experience in managing complex projects in Faribault as one of the many qualities that Casie brings to her new role as Executive Director. With the completion of Faribault's Housing Needs Analysis and the adoption of the HRA's Strategic Priorities, this is an exciting and important time to have Casie work closely with the HRA to address the community's housing and redevelopment needs. Please welcome Casie! REQUESTED ACTION: Introduction of Casie and the HRA Board. ATTACHMENTS: HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 4 of 32  HOUSING & REDEVELOPMENT AUTHORITY MINUTES 3RD FLOOR MONDAY, JUNE 8, 2026 6:00 PM CONFERENCE ROOM Meeting Items 1. Call to Order/ Approve Agenda Chair Rowan called the meeting to order at 6:00 pm. Commissioners in attendance were Mandy Barnes, Jonathan King, Deborah Lyzenga, Jeannie Michels, Travis McColley, Carrie Winjim and Chair John Rowan. Staff present were Kari Casper, David Wanberg, and Jessica Kinser. Special guests include Dayna Norvold with the Habitat for Humanity. A motion was made by Travis McColley, seconded by Carrie Winjim to approve the agenda as presented. The motion carried unanimously. 2. Approval of the Minutes of May 11, 2026, Meeting. A motion was made by Travis McColley, seconded by Mandy Barnes to approve the meeting minutes of May 11, 2026 as presented. The motion passed unanimously. 3. List of Claims to be Paid A motion by Travis McColley, seconded by Mandy Barnes to approve the list of claims to be paid as presented. The motion carried on a 7/0 vote. 4. Program Reports None 5. Property Reports A. April 2026- Scattered Sites Fund Financial Report Jessica Kinser, City Administrator, presented the financial report. A motion was made by Travis McColley, seconded by Deb Lyzenga. The motion passed unanimously. B. Hail Damage Report on Scattered Sites from League of Minnesota Cities A motion was made by Travis McColley, seconded by Deborah Lyzenga to receive and file this report as presented. The motion passed unanimously. C. Property Management and Other Scattered Site Updates A motion was made by Mandy Barnes, seconded by Jonathan King to receive and file this report as presented. The motion passed unanimously. 6. Public Hearings 7. Items for Discussion HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 5 of 32 A. Housing Partner Presentation - Habitat for Humanity- Dayna Norvold Dayna Norvold gave a presentation on what Habitat has accomplished in Rice County and Faribault and talked about future needs. B. Resolution 2026-18 Authorize Closure of Bank Account A motion was made by Mandy Barnes, seconded by Carrie Winjum to approve Resolution 2026-18 Authorize Closure of Bank Account as presented. The motion passed unanimously. C. Strategic Priority 1 - Development of Housing After much discussion, the board would like to see a variety of potential housing projects with a spreadsheet and pro forma. No action was taken at this time. D. Housing Results Committee Motion by Travis McColley, seconded by Mandy Barnes to receive and file this report as presented. Motion passed unanimously. 8. Adjournment Motion by Mandy Barnes, seconded by Travis McColley to adjourn the meeting at 8:12 p.m. Motion passed unanimously. By: __________________________ Jessica Kinser, City Administrator Page 6 of 32  Agenda Item: 5.A Request for Action TO: Faribault Housing & Redevelopment Authority FROM: Jessica Kinser, City Administrator THROUGH: David Wanberg, Director of Community and Economic Development MEETING DATE: July 13, 2026 SUBJECT: Mobile Home Coordinator Report- Q2 2026 BACKGROUND: The HRA has a contract with Three Rivers Community Action Agency for the Mobile Home Coordinator through June 30, 2027. Quarterly reports are required as part of that contract. Laura Helle will be present to provide an update. REQUESTED ACTION: None ATTACHMENTS: HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 7 of 32  Agenda Item: 5.B Request for Action TO: Faribault Housing & Redevelopment Authority FROM: Jessica Kinser, City Administrator THROUGH: David Wanberg, Director of Community and Economic Development MEETING DATE: July 13, 2026 SUBJECT: June 2026 Operating Fund Financial Report BACKGROUND: The June 2026 financial report for the HRA Operating Fund (290) is attached. This is the fund that receives the property tax dollars from the HRA tax levy as the main source of revenue. I have highlighted some lines in the attachment with more information below. This report does have some errors which I have asked the Finance Department to correct. Therefore, I ask that the Board not approve this report at this time. The cash balance without the corrections noted below at the end of June is $1,418,291.28. Revenue The HRA has received 70% of the first half of the property tax payments. The remaining 30% will come from the County in July. The total current and delinquent taxes received is $164,166. This is the first big revenue deposit into this fund of the fiscal year. The June interest is not yet credited on this report, but I want to highlight the YTD actual interest through May. We got the HRA bank account from a 0.50% interest account up to 3%+ back in February. The Robinwood bank accounts were closed, and those funds were moved into the HRA Faribault checking account (the City's financial system splits the funds so they are not co-mingled). That combined balance, which is nearly $3 million, has been earning more than $3,500 per month in interest. Unfortunately, all the interest has been credited to the Operating Fund, so the $10,663.50 is not the correct amount. I have asked Finance to correct this allocation, so the HRA Special Project Fund (which holds the Robinwood proceeds) is getting the interest earned as well. Even with that HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 8 of 32  Agenda Item: 5.B change, the HRA will be earning more in interest this year than budgeted. Expenditures There was one large expense in June, which requires correction. The contract between the HRA and the City for management services is for $50,000 annually, with $25,000 to be paid in June and the second half in December. Finance billed the full amount in June. I have asked that this be corrected. I also wanted to highlight the $40,000 in the encumbrance column. With the approval of the resolution to provide $5,000 per property for 8 properties as down payment assistance to the Rice County HRA/Twin Oaks, we issued a purchase order, which is earmarking those funds as not available. We are looking at the same process for other commitments made in prior years that have not been paid out. REQUESTED ACTION: No action ATTACHMENTS: 1. June 2026 HRA Operating Fund HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 9 of 32 City of Faribault YEAR-TO-DATE BUDGET REPORT FOR 2026 06 ACCOUNTS FOR: ORIGINAL REVISED AVAILABLE PCT 290 Faribault HRA APPROP BUDGET YTD ACTUAL MTD ACTUAL ENCUMBRANCES BUDGET USE/COL HRA Faribault HRA HRA 31010 Current Ad Valorem Taxes -439,868 -439,868 -161,931.86 -161,931.86 .00 -277,936.14 36.8%* HRA 31020 Delinquent Ad Valorem Ta 0 0 -2,070.39 -2,070.39 .00 2,070.39 100.0% HRA 31035 Delinquent Mobile Home T 0 0 -163.93 -163.93 .00 163.93 100.0% HRA 36210 Interest on Invest -3,686 -3,686 -10,663.50 .00 .00 6,977.50 289.3% HRA 42010 Supplies 450 450 .00 .00 .00 450.00 .0% HRA 43010 Auditing & Accounting Se 5,775 5,775 .00 .00 .00 5,775.00 .0% HRA 43040 Legal Fees – Civil Proce 15,000 15,000 1,072.60 97.20 .00 13,927.40 7.2% HRA 43090 Expert & Professional Se 150,000 150,000 54,055.60 50,000.00 .00 95,944.40 36.0% HRA 43095 Software Maintenance & S 12,000 12,000 316.35 .00 .00 11,683.65 2.6% HRA 43140 Training & Education 7,000 7,000 760.00 .00 .00 6,240.00 10.9% HRA 43310 Travel Expense 3,000 3,000 .00 .00 .00 3,000.00 .0% HRA 43410 Advertising 500 500 .00 .00 .00 500.00 .0% HRA 43510 Legal Notices Publishing 500 500 .00 .00 .00 500.00 .0% HRA 43520 Recording Fees 450 450 .00 .00 .00 450.00 .0% HRA 43610 Insurance & Bonds 6,000 6,000 3,266.00 .00 .00 2,734.00 54.4% HRA 43820 Water Utilities 0 0 116.63 .00 .00 -116.63 100.0%* HRA 44330 Dues and Subscriptions 800 800 488.00 .00 .00 312.00 61.0% HRA 44390 Taxes & Licenses 250 250 .00 .00 .00 250.00 .0% HRA 44600 Loans & Grants 235,000 235,000 110,000.00 .00 40,000.00 85,000.00 63.8% TOTAL Faribault HRA -6,829 -6,829 -4,754.50 -114,068.98 40,000.00 -42,074.50 -516.1% TOTAL Faribault HRA -6,829 -6,829 -4,754.50 -114,068.98 40,000.00 -42,074.50 -516.1% TOTAL REVENUES -443,554 -443,554 -174,829.68 -164,166.18 .00 -268,724.32 TOTAL EXPENSES 436,725 436,725 170,075.18 50,097.20 40,000.00 226,649.82 Report generated: 07/07/2026 08:03 Page 4 User: jprahm Program ID: glytdbud Page 10 of 32  Agenda Item: 6.A Request for Action TO: Faribault Housing & Redevelopment Authority FROM: Jessica Kinser, City Administrator THROUGH: David Wanberg, Director of Community and Economic Development MEETING DATE: July 13, 2026 SUBJECT: June 2026 Scattered Sites Update and Financial Report BACKGROUND: Trekk went live with the property management of the scattered sites on July 1st, and June was spent a number of hours in the onboarding process and transfer of records. Occupancy Update 7 Vacant Units Claims List The City's Finance Department cut off processing of any payments on June 19th. The bills under $10,000 that were processed prior to turning over the finances to Trekk are attached, which total $1,544.98. We know other invoices were received in June and will be working with Trekk on obtaining a list for approval for anything over $10,000 to come forward at the August meeting. Financial Report The City has reconciled the Scattered Sites Fund in the City's financial system as of June 30th, and has turned over a trial balance to Trekk for their financial tracking to start as of July 1st. This will be the last report from the City's financial system (less a year-end summary), and Trekk will provide a financial report for future meetings. The first sheet of the financial report is the balance sheet accounts through June. The first highlight is the cash in the operating fund (which does not include deposits or the capital reserve), which is nearly $1.5 million. The next highlights, which are zeros, show that the amounts due to Robinwood HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 11 of 32  Agenda Item: 6.A and to the HRA Operating Fund have been paid. The final highlight is the fund balance as of June 30, 2026, which is slightly higher than the beginning of the year, despite some significant repayments to other funds. The second page is the revenues and expenditures. The interest being earned by the Scattered Sites bank account was also modified, and this account is now earning more than $4,000 each month (including the separate accounts for the deposits and the replacement reserve). Rents are below 50% for the half-way point in the year and will likely be behind as units turnover. The expenditures capture those presented at the June 8th meeting and those that are on the attached spreadsheet. While more than 50 percent has been spent, there have been large expenses as some units have turned over and required significant work. REQUESTED ACTION: Approve and place on file ATTACHMENTS: 1. 6.20.26 claims PH-RW 2. June 2026 Scattered Sites Financial Report HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 12 of 32  Scattered Sites Bills Paid Through June 20, 2026 Vendor # Vendor Invoice Document Voucher PO Description Type Invoice Net Due Date 999997 AR Refunds One Time 061026 NA 18236 Security Deposit Release 1522 Western INV $506.72 07/10/2026 11276 Bug Busters, Inc 81583 18239 Bug Tx at 910 1st St NW INV $42.50 03/11/2026 10353 Chadderdon Lumber 221181 18335 Chadderdon Lumber for 902A Spring Road INV $46.07 06/05/2026 10417 Faribo Plumbing & Heating Inc 67293 18240 1522 Western -- Leaking Faucet EFT $427.50 07/10/2026 11199 QSC of Northfield Inc 913239 18238 Litter Clean up for Western Spring and 1st EFT $473.44 07/01/2026 10973 Xcel Energy 980889623 18237 Commercial Parking Lot Lights at Western INV $48.75 07/05/2026 $1,544.98 Page 13 of 32 Account Trial 2026 Period 1 to 6 All Accounts Accounts Description Organization Beginning Bal Debits Credits Net Change Ending Balance 294 HRA Scattered Site 0.00 2,678,744.22 2,600,825.17 77,919.05 77,919.05 294 10100 Cash 294 0.00 79.97 79.97 0.00 0.00 294 10125 CashEscrow-Security Deposits 294 15,640.13 0.00 15,640.13 -15,640.13 0.00 294 10130 Cash Required Reserves 294 0.00 61,260.00 61,260.00 0.00 0.00 294 10151 Cash - Scattered Site Deposit 294 0.00 22,431.82 6,791.69 15,640.13 15,640.13 294 10152 Cash - Scattered Site Operate 294 1,878,609.35 388,263.01 771,280.21 -383,017.20 1,495,592.15 294 10155 Cash - SBF HRA Deposit Sweep 294 90.00 0.00 0.00 0.00 90.00 294 10156 Cash - SS Replacement Reserve 294 0.00 63,302.00 0.00 63,302.00 63,302.00 294 11500 Accounts Receivable 294 9,226.61 0.00 9,226.61 -9,226.61 0.00 294 11600 Accounts Receivable - Misc 294 20,398.64 0.00 20,398.64 -20,398.64 0.00 294 13600 Rent Receivable 294 0.00 25,740.81 22,120.00 3,620.81 3,620.81 294 15500 Prepaid Items 294 0.00 39.99 39.99 0.00 0.00 294 20200 Accounts Payable 294 -18,565.89 177,488.80 159,316.93 18,171.87 -394.02 294 20201 ACI Accounts Payable 294 0.00 75.05 75.05 0.00 0.00 294 20205 Accounts Payable Miscellaneous 294 -26,696.64 26,696.64 0.00 26,696.64 0.00 294 20700 Due to Oth Funds 294 -339,170.00 339,170.00 0.00 339,170.00 0.00 294 20800 Due to Oth Governments 294 -42,969.60 42,969.60 0.00 42,969.60 0.00 294 22000 Deposits 294 -15,605.95 500.00 6,855.95 -6,355.95 -21,961.90 294 22200 Deferred Revenues 294 -3,222.15 2,986.53 0.00 2,986.53 -235.62 294 25300 Unreserved Fund Balance 294 -1,477,734.50 0.00 0.00 0.00 -1,555,653.55 Total 0.00 1,151,004.22 1,073,085.17 77,919.05 77,919.05 Grand Total 0.00 2,678,744.22 2,600,825.17 77,919.05 77,919.05 7/8/2026 10:18:27 AM Page 1 of 1 Page 14 of 32 City of Faribault YEAR-TO-DATE BUDGET REPORT FOR 2026 06 ACCOUNTS FOR: ORIGINAL REVISED AVAILABLE PCT 294 HRA Scattered Site APPROP BUDGET YTD ACTUAL MTD ACTUAL ENCUMBRANCES BUDGET USE/COL SSite HRA Scattered Site SSite 36200 Oth Miscellaneous Reve 0 0 -6,418.00 .00 .00 6,418.00 100.0% SSite 36210 Interest on Invest 0 0 -8,115.49 -4,681.07 .00 8,115.49 100.0% SSite 36220 Rents 0 -763,870 -352,921.75 -52,504.92 .00 -410,948.25 46.2%* SSite 36240 Refunds & Reimbursemen 0 0 -500.00 .00 .00 500.00 100.0% SSite 37160 NSF & Late Fees 0 0 -184.92 .00 .00 184.92 100.0% SSite 42010 Supplies 0 29,990 351.94 .00 .00 29,638.06 1.2% SSite 42410 Minor Equipment & Smal 0 0 4,688.20 1,767.71 .00 -4,688.20 100.0%* SSite 43010 Auditing & Accounting 0 2,080 .00 .00 .00 2,080.00 .0% SSite 43040 Legal Fees – Civil Pro 0 29,250 -1,259.00 .00 .00 30,509.00 -4.3% SSite 43060 Contract Labor 0 0 212.50 .00 .00 -212.50 100.0%* SSite 43070 Management Services 0 25,000 .00 .00 .00 25,000.00 .0% SSite 43090 Expert & Professional 0 125,000 110.38 .00 .00 124,889.62 .1% SSite 43610 Insurance & Bonds 0 42,000 28,424.00 .00 .00 13,576.00 67.7% SSite 43810 Electric Utilities 0 1,500 1,307.82 139.83 .00 192.18 87.2% SSite 43820 Water Utilities 0 1,100 3,024.83 .00 .00 -1,924.83 275.0%* SSite 43830 Gas Utilities 0 1,000 1,850.82 72.82 .00 -850.82 185.1%* SSite 43840 Refuse Disposal 0 4,200 2,204.97 157.08 .00 1,995.03 52.5% SSite 43850 Sewer Utilities 0 700 .00 .00 .00 700.00 .0% SSite 43860 Storm Water Utilities 0 700 .00 .00 .00 700.00 .0% SSite 44010 Building Maintenance 0 140,000 221,537.88 14,209.51 .00 -81,537.88 158.2%* SSite 44050 Extraordinary Maintena 0 150,000 .00 .00 .00 150,000.00 .0% SSite 44325 Bank Fees & Charges 0 0 30.49 -4.00 .00 -30.49 100.0%* SSite 44390 Taxes & Licenses 0 23,400 27,729.56 .00 .00 -4,329.56 118.5%* SSite 44700 Interest 0 400 6.72 6.72 .00 393.28 1.7% TOTAL HRA Scattered Site 0 -187,550 -77,919.05 -40,836.32 .00 -109,630.95 41.5% TOTAL HRA Scattered Site 0 -187,550 -77,919.05 -40,836.32 .00 -109,630.95 41.5% TOTAL REVENUES 0 -763,870 -368,140.16 -57,185.99 .00 -395,729.84 TOTAL EXPENSES 0 576,320 290,221.11 16,349.67 .00 286,098.89 Report generated: 07/07/2026 08:07 Page 10 User: jprahm Program ID: glytdbud Page 15 of 32  Agenda Item: 6.B Request for Action TO: Faribault Housing & Redevelopment Authority FROM: Casie Steeves, Executive Director City of Faribault HRA THROUGH: David Wanberg, CED Director MEETING DATE: July 13, 2026 SUBJECT: Status Updates BACKGROUND: Update on Hail Damage DJ Medin Architects will be conducting aerial photography/ drone photography to include with the RFP’s for outdoor inspection of roofing, siding, and other exterior components, following the April 2026 hailstorm. Lumina Comprehensive Needs Assessment: The next round of inspections with Lumina will be completed 7/28/2026- 7/30/26. REQUESTED ACTION: Receive and File ATTACHMENTS: HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 16 of 32  Agenda Item: 8.A Request for Action TO: Faribault Housing & Redevelopment Authority FROM: Jessica Kinser, City Administrator THROUGH: David Wanberg, Director of Community and Economic Development MEETING DATE: July 13, 2026 SUBJECT: Housing Partner Presentation - Three Rivers Community Action Agency - Laura Helle BACKGROUND: As part of Strategic Priority #4, Laura Helle with Three Rivers Community Action Agency will be at the meeting to discuss the areas of housing the organization is involved in, outside of the Mobile Home Coordinator. REQUESTED ACTION: None ATTACHMENTS: HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 17 of 32  Agenda Item: 8.B Request for Action TO: Faribault Housing & Redevelopment Authority FROM: David Wanberg, CED Director and Jessica Kinser, City Administrator THROUGH: David Wanberg, Director of Community and Economic Development MEETING DATE: July 13, 2026 SUBJECT: Overview of a Proposed 10-Year Loan to Hill Block LLC for the Hill Block Redevelopment BACKGROUND: The HRA held a special meeting on Thursday, February 26, 2026, to discuss a request from Hill Block LLC for a low-interest loan to assist in the redevelopment of the Hill Block Portfolio in downtown Faribault. The City’s financial advisor conducted a detailed review of the project’s pro forma to determine the project’s need for financial assistance. Ultimately, the City approved tax increment financing, and the HRA and EDA stated that they each would provide a $300,000 loan with a ten-year term at 2.75% interest. The HRA and EDA are scheduled to hold a public hearing at a special joint meeting of the HRA and EDA on Thursday, July 16, immediately following the EDA’s 7:00 AM meeting. The purpose of the public hearing is to gather public input on the proposed HRA and EDA loans. The HRA and EDA will then each take action on the loan requests. The following summarizes the terms of the requested loan: • Monthly interest payment: $687.50 • Number of monthly payments: 120 • Total interest paid over ten years: $82,500.00 • Principal repaid at the end of Month 120: $300,000 • Total of all payments over the life of the loan: $382,500.00 HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 18 of 32  Agenda Item: 8.B The loan would come out of the HRA’s Operating Fund, which has sufficient balance from the tax levy funds not used in previous years. Due to the ten- year length of the loan, the loan would remain tied to the Operating Fund, and the interest would be recognized as revenue in the Operating Fund. City Staff will strive to address any questions or comments regarding the terms of the requested loans at the regular meeting of the HRA before the upcoming special joint meeting of the HRA and EDA. Alex Baraniak will attend the meeting and will be available to help answer any questions the HRA may have. REQUESTED ACTION: The HRA is scheduled to act on the loan request at a special meeting of the HRA and EDA on Thursday, July 16, 2026, immediately following the EDA's 7:00 AM regular meeting. The HRA may ask City Staff questions about the loan request at this meeting. ATTACHMENTS: HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 19 of 32  Agenda Item: 8.C Request for Action TO: Faribault Housing & Redevelopment Authority FROM: Jessica Kinser, City Administrator THROUGH: David Wanberg, Director of Community and Economic Development MEETING DATE: July 13, 2026 SUBJECT: Strategic Priority #1 - Request for a Construction Loan/Discussion of Creating a Construction Loan Program BACKGROUND: Housing developers have expressed a need for low-interest loans to keep new construction housing affordable through presentations to the Board or in conversations with staff. The HRA does not have such a construction loan program currently and has instead chosen to assist single-family home development through a $5,000 contribution to offset building permit or other City fees. Both commitments have occurred at Twin Oaks, first through Habitat for Humanity, and second through the Rice County HRA. The Chamber Trust is requesting a low-interest loan to develop a single- family residence at 728 Division Street East for up to $275,000 at a 3% interest rate to develop the house. The Trust anticipates paying the full loan and interest to the HRA within 12 months. The loan would be payable and not forgivable. By way of background, in 2020, the City extended State Avenue from Division Street East to Highway 60, which created an undeveloped lot at 728 Division Street East. The City transferred the lot to the HRA, which in turn transferred the lot to the Chamber Trust for the development of an affordable single-family residence with housing. The Chamber Trust did not develop the property per the timeline in the purchase agreement with the HRA, and the lot should have reverted to the HRA in 2023. At the April 13th meeting, the HRA Board approved the attached resolution releasing the right of reverter clause for the Chamber Trust to transfer the property to the Rice County Community Land Trust. No release has currently occurred as the title has not been transferred. HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 20 of 32  Agenda Item: 8.C There are three issues for the HRA Board to discuss and provide direction on: 1. Affordable Housing Construction Revolving Loan Fund — No program exists to currently meet this request; however, this is not the only request that would likely be received given the recent presentation from Habitat as well as other non-profit or private developers who are focused on the development of affordable single-family housing. Staff needs additional time to put together a program that could serve multiple projects in the community and make a recommendation to the Board about the terms and structure of that program. This would support Priority #1 in the HRA's strategic priorities. 2. Chamber Trust Loan Request — The HRA should determine if it would like to consider a low-interest construction loan to the Chamber Trust outside a formal program being created. The Chamber Trust is working with South Central College to build the house. Construction is slated to begin in September, so they are interested in hearing from the HRA Board quickly on direction to prevent delays in construction. The Rice County Community Land Trust has not yet reviewed and discussed the Chamber Trust proposal. 3. Resolution 2026-19 — A resolution has been prepared to amend Resolution 2026-13 to clarify that the Rice County Community Land Trust (RCCLT) is not leading any construction project at 728 East Division Street. Instead, the Chamber Trust is proposing to construct the home and then transfer the land to the RCCLT. The prior resolution approved the transfer of the land to the RCCLT but with an RCCLT construction project. This resolution clarifies the process that is being proposed by the Chamber Trust at this time. REQUESTED ACTION: See action/discussion items below. ATTACHMENTS: 1. Chamber Trust Housing Construction Loan Request 2. 2026-13 Resolution to Release Right of Reverter from Purchase Agreement with Chamber Trust for 728 Division St East HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 21 of 32 Page 22 of 32 Page 23 of 32 Page 24 of 32 Page 25 of 32  HOUSING AND REDEVELOPMENT AUTHORITY OF FARIBAULT, MINNESOTA Resolution #2026-13 Retease RrGHT oF REVERTER FRoM PURCHASE AGREEMENT wrrH CHlMgen Tnusr ron 728 DrvrsroN Srneer Easr WHEREAS, the Housing and Redevelopment Authority ("HRA") authorized a Purchase Agreement for 728 Division Street East with the Chamber Trust on May 10,2021; and WHEREAS, the Purchase Agreement stipulated that the Chamber Trust must construct, market and sell a single-family residential home to a family at or below 100 percent of the Rice County area median income within three years of May 10, 202I; and WHEREAS, the Purchase Agreement contained a provision making the conveyance subject to a Right of Reverter, meaning should the ChamberTrust fail to meet the stipulations of the Purchase Agreement, the title to the property would automatically revert back to the HRA; and WHEREAS, the Chamber Trust did not meet the required stipulations by May 10, 2024, but no actions to transfer title back to the HRA have been undertaken since that date; and WHEREAS, the Chamber Trust is proposing the transfer of the property to the Rice County Community Land Trust for the construction of a single-family residential property, where the land would be held in perpetuity by the Land Trust in order to continue affordable housing in the community; and WHEREAS, the HRA still desires this property as a location for an affordable single family residence regardless of the organization committing to the original goal; NOW, THEREFORE BE IT RESOLVED, the HRA hereby releases the Right of Reverter in the deed to 728 Division Street East and authorizes the HRA Board Chair to execute all documents to complete this action. I Page 26 of 32 Adopted: April 13, 2026 F:wr?.^-- CHnz< ATTEST: CEo Dlre.tor 2 Page 27 of 32  HOUSING AND REDEVELOPMENT AUTHORITY OF FARIBAULT, MINNESOTA Resolution #2026-19 AMEND RESOLUTION 2026-13 TO CLARIFY LAND TRANSFER AND CONSTRUCTION TIMELINE FOR 728 EAST DIVISION STREET WHEREAS, the Housing and Redevelopment Authority (“HRA”) authorized a Purchase Agreement for 728 Division Street East with the Chamber Trust on May 10, 2021; and WHEREAS, the Purchase Agreement stipulated that the Chamber Trust must construct, market and sell a single-family residential home to a family at or below 100 percent of the Rice County area median income within three years of May 10, 2021; and WHEREAS, the Purchase Agreement contained a provision making the conveyance subject to a Right of Reverter, meaning should the Chamber Trust fail to meet the stipulations of the Purchase Agreement, the title to the property would automatically revert back to the HRA; and WHEREAS, the Chamber Trust did not meet the required stipulations by May 10, 2024, but no actions to transfer title back to the HRA have been undertaken since that date; and WHEREAS, the HRA approved Resolution 2026-13 on April 13, 2026, releasing the right of reverter to allow the Chamber Trust to transfer the property to the Rice County Community Land Trust; and WHEREAS, the Chamber Trust is proposing to construct a residence while owner of the land and transfer the land to the Rice County Community Land Trust at the time of sale of the fully-constructed home on the property; NOW, THEREFORE BE IT RESOLVED, the HRA hereby amends the terms of Resolution 2026-13, allowing the land transfer to the Rice County Community Land Trust to occur at the time of sale of the residential structure. 1 Page 28 of 32 Adopted: July 13, 2026 ____________________________ ____________________________ ATTEST: ___________________________ ___________________________ 2 Page 29 of 32  Agenda Item: 8.D Request for Action TO: Faribault Housing & Redevelopment Authority FROM: Jessica Kinser, City Administrator THROUGH: David Wanberg, Director of Community and Economic Development MEETING DATE: July 13, 2026 SUBJECT: 2027 HRA Preliminary Tax Levy BACKGROUND: In August, the HRA Board will have a resolution to approve a preliminary tax levy for 2027, which will then go to the City Council in September to be adopted as part of the overall preliminary tax levy. State law limits the amount an HRA can tax to 0.0185% of the prior year's market value for all Faribault properties. The 2026 market value was $2,514,801,600, meaning that the HRA can request a maximum of $465,238. As the tax levy is the main source of revenue, now is an ideal time to get feedback on the expenses the Board would like to plan for in 2027. Here are some initial thoughts/questions/recommendations: Priority #1 — Housing Development With the HRA as the developer, it is not recommended that any of the operating funds be designated towards housing development. Instead, the sale proceeds from Robinwood would be dedicated to this priority. The operating fund could pick up some of the costs of development, like fees for permits, initial engineering and architecture costs and others before a final product is decided upon. If supporting other parties in housing development, there would be one- time dollars as fund balance in the operating fund to work with. Staff is looking at what would be needed for a revolving loan fund for the support of the development of owner-occupied housing and will come back at a future meeting with a proposal. Priority #2 — Housing Stability Through Targeted Financial Support In the current year, the HRA provided $50,000 to Community Action Center HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 30 of 32  Agenda Item: 8.D (CAC) for emergency rental assistance, which is an ongoing program. In the past, the HRA has provided assistance to CAC for hotel vouchers for individuals experiencing homelessness in the winter months. This priority focused on a pilot project to provide short-term support. Funds could be earmarked in the operating budget for 2027 if no ideas exist from the Board at this point. Priority #3 — Rehab/Preservation of Existing Housing The Mobile Home Coordinator contract with Three Rivers runs through June 30, 2027, so $30,000 will be budgeted. If the Board believes that this should be continued beyond that point, additional funds will need to be budgeted. For 2026, only $45,000 is budgeted for owner-occupied improvements to properties. While a proposal will come before the Board before the end of the year for a new program for 2027, the Board should consider the amount of funds to be put into a rehabilitation program and determine how many projects should be supported from the operating fund on an annual basis. The operating fund also has a 2026 budget for tree removal assistance. For 2026, $40,000 is earmarked to the City's ReLeaf grant, providing more opportunities for income-qualifying property owners to have free tree and stump removal and replacement. There is $20,000 that is not going to be spent in 2026 that was to be no-interest loans repayable at the time of sale or refinancing. Ash trees will continue to be a blight issue in the community, with the City continuing to offer the voluntary special assessment program into the future. I would recommend figuring out an amount for tree removal and revisiting the program details to determine how to offer something into the future that better ties in with the City's special assessment process. Priority #4 — Strategic Partnerships Past budgets have not had direct organizational support for other housing agencies, but that certainly is something that could be included in operational funds. It is likely the HRA will get a funding request from the Rice County Community Land Trust based on their statement when in front of the Board. Though not directly related, the down payment assistance or other support offered to other agencies and their specific projects would fit under this priority. Specifically, there was $5,000 per unit paid out to Habitat in 2025, and there is now $5,000 per unit directed toward Rice County HRA. Both payouts were directed towards the new HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 31 of 32  Agenda Item: 8.D homeowners/construction costs of the homes in the Twin Oaks subdivision. Priority #5 — Address Blight for Future Opportunity This priority focuses on opportunities for the HRA to participate in blight remediation and housing development specifically in the downtown. Past programs have provided grants for the development of new units or, more recently, the Hill Block payable loan for ten years. This priority specifically states that consideration will be given to projects on a case-by-case basis. The Board could consider setting aside some amount of the budget for downtown specifically or could look at the budget and requests as they come in. The goal of this discussion is not to formulate the entire spending of the $465,000 tonight but to give guidance to staff on what should come back as a draft to the August meeting. The board will need to adopt a final budget at the November meeting, so this will be a discussion item until that time. REQUESTED ACTION: Feedback only ATTACHMENTS: HONESTY ▪ RESPECT ▪ DEDICATED ▪ VISIONARY ▪ ACCOUNTABILITY Page 32 of 32