Housing and Redevelopment Authority

Housing and Redevelopment Authority Meeting Agenda Immediately following the January 25, 2023 regular Woodbury EDA meeting, estimated to be 7:55 p.m. Council Chambers, Woodbury City Hall This Housing and Redevelopment Authority meeting is taking place virtually and at the Woodbury City Hall in the Council Chambers. Members of the public may attend the meeting in person and may also join the meeting using a PC, Mac, iPad, iPhone, or Android device. Watch the Live Meeting Public comments will be accepted during the meeting both in person and by using the link to the virtual meeting to join the meeting and then submit your questions via the online Q&A feature within the meeting. Questions regarding the meeting will also be taken between the hours of 8:00 a.m. to 4:30 p.m. at 651-714-3524 or at council@woodburymn.gov. Questions received after 4:30 p.m. will be responded to in the next three to seven business days. Please note that all agenda times are estimates. 7:55 p.m. 1. Call to Order 7:56 p.m. 2. Roll Call 7:57 p.m. 3. Consent Agenda All items listed under the consent agenda are considered to be routine by the HRA Board and will be enacted by one motion and an affirmative vote by roll call of a majority of the members present. There will be no separate discussion of these items unless a Commissioner or citizen so requests, in which event, the items will be removed from the consent agenda and considered a separate subject of discussion by the Board. A. 2023 HRA Annual Meeting 23-01 Staff recommends HRA adopt HRA Resolution 23-01 appointing the 2023 HRA officers. B. Approval of Minutes – December 14, 2022 HRA Meeting C. Designating Depository of Public Funds 23-02 Staff recommends HRA adopt a motion designating CorTrust Bank as the HRA’s depository of public funds for the year 2023.  Housing and Redevelopment Authority Meeting Agenda January 25, 2023 7:58 p.m. 4. Public Hearings – No items 7:59 p.m. 5. Discussion Agenda A. Approving Carryovers to the 2023 HRA Budget 23-03 Staff recommends HRA adopt HRA Resolution 23-02 authorizing $21,528 to be carried forward from the 2022 HRA budget. B. Review of 2023 HRA Work Plan 23-04 8:15p.m. 6. Adjournment The City of Woodbury EDA is subject to Title II of the Americans with Disabilities Act which prohibits discrimination on the basis of disability by public entities. The EDA is committed to full implementation of the Act to our services, programs, and activities. Information regarding the provision of the Americans with Disabilities Act is available from the Executive Director’s office at 651-714-3523. Auxiliary aids for disabled persons are available upon request at least 72 hours in advance of an event. Please call the ADA Coordinator, Clinton P. Gridley at 651-714-3523 (TDD 651-714- 3568) to make arrangements.  3A City of Woodbury, Minnesota Office of the HRA Executive Director HRA Letter 23-01 January 25, 2023 To: The Honorable President and Commissioners of the Woodbury HRA From: Clinton P. Gridley, HRA Executive Director Subject: 2023 HRA Annual Meeting Summary Per the by-laws of the HRA, it is necessary to hold an annual meeting of the HRA on the fourth Wednesday of January. At this annual meeting, the HRA commissioners shall appoint the officers for the year. Recommendation Staff recommends HRA adopt HRA Resolution 23-01 appointing the 2023 HRA officers. Fiscal Implications Not applicable Policy The by-laws of the HRA as most recently amended and adopted by HRA Resolution 20-01 on January 22, 2020 require the HRA to hold its annual meeting on the fourth Wednesday of each January. Public Process This is the first public process for this item. Background The Woodbury HRA has officer positions of Chair, Vice Chair and Secretary which are filled by members of the Board as required by Section 2.1 of the HRA by-laws. In addition, the HRA has staff-level officer positions of Executive Director, Deputy Executive Director, Clerk and Treasurer. In the past, Woodbury’s Mayor has served as the Chair, the Mayor pro tem has served as the Vice Chair and the remaining commissioner with the longest tenure on the Board has served as the Secretary. Additionally, Woodbury’s City Administrator has served as the Executive HRA Letter 23-01 January 25, 2023 Page 2 Director, the Assistant City Administrator has served as the Deputy Executive Director, the Community Development Director has served as the Clerk and the CFO/Controller has served as the Treasurer. If the 2023 HRA Board chooses to follow these past practices and staff recommendations, the officers of the HRA for 2023 would be: Chair: Anne Burt Vice Chair: Andrea Date Secretary: Steve Morris Executive Director: Clinton Gridley Deputy Executive Director: Angela Gorall Clerk: Janelle Schmitz Treasurer: Jason Schirmacher The specific appointment of officers is at the discretion of the board although, as noted above, the positions of Chair, Vice Chair and Secretary must be filled by members of the Board. Staff would like to highlight that Commissioners Morris and Santini joined the HRA at the same time. As such staff is recommending that Commissioner Morris be appointed HRA Secretary and, via separate action, staff will recommend that Commissioner Santini be appointed EDA Treasurer. Written By: Janelle Schmitz, Community Development Director Approved Through: Clinton P. Gridley, HRA Executive Director Attachments: HRA Resolution 23-01  HRA Resolution 23-01 Resolution of the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Woodbury, Washington County, Minnesota Appointing 2023 HRA Officers BE IT RESOLVED by the Board of Commissioners (the "Board") of the Housing and Redevelopment Authority in and for the City of Woodbury (the "HRA"), as follows: 1. Recitals. All things required by the applicable provisions of Minnesota Statutes, Sections 469.001 to 469.047, have been duly taken in order to create, constitute, and activate the HRA. 2. Appointment of Officers. In accordance with the by-laws of the HRA hereby adopted, the Board hereby appoints to the following offices of the HRA the following persons, respectively: Chair: Anne Burt Vice Chair: Andrea Date Secretary: Steve Morris Executive Director: Clinton Gridley Deputy Executive Director: Angela Gorall Clerk: Janelle Schmitz Treasurer: Jason Schirmacher This Resolution was declared duly passed and adopted and was signed by the Chair and attested to by the Executive Director this 25th day of January, 2023. Attest: Anne W. Burt, Chair Clinton P. Gridley, Executive Director  MINUTES WOODBURY HOUSING AND REDEVELOPMENT AUTHORITY December 14, 2022 3B Pursuant to the due call and notice thereof, a regular meeting of the Woodbury Housing and Redevelopment Authority was duly held at the Woodbury City Hall, 8301 Valley Creek Road, on the 14th day of December 2022. Call to Order Chair Anne Burt called the meeting to order at 7:05 p.m. Chair Burt welcomed those listening and attending. She said members of the public may attend the meeting but will be required to comply with social distancing parameters as determined by the City. Members of the public may also join the meeting using a PC, Mac, iPad, iPhone or Android device. Public comments will be accepted during the meeting both in person and by using the link to the virtual meeting to join the meeting and then submit your questions via the online Q&A feature within the meeting. Questions regarding the meeting will also be taken between the hours of 8:00 a.m. to 4:30 p.m. via email council@woodburymn.gov or call 651-714-3524 and leaving a voicemail message. Roll Call Upon roll call the following were present: Chair Anne Burt, Kim Wilson, Andrea Date, Steve Morris, and Jennifer Santini. Absent: None. Others Present: Janelle Schmitz, HRA Clerk; Kimberlee K. Blaeser, City Clerk; Clinton Gridley, HRA Executive Director; Kevin Sandstrom, Woodbury City Attorney. Consent Agenda All items listed under the consent agenda are considered to be routine by the HRA Board and will be enacted by one motion and an affirmative vote by roll call of a majority of the members present. There will be no separate discussion of these items unless a Commissioner or citizen so requests, in which event, the items will be removed from the consent agenda and considered a separate subject of discussion by the Board. Item A Approval of Minutes – September 28, 2022 HRA Meeting Item B A motion approving the HRA’s 2023 calendar Item C To adopt the following resolution Resolution 22-05 Resolution of the Housing and Redevelopment Authority of the City of Woodbury, Washington County, Minnesota authorizing the extension of the HRA Loan Administrator Agreement with NeighborWorks Home Partners. Member Santini moved, seconded by Member Morris, to approve the Consent Agenda items. Voting via voice: Kim Wilson – aye Andrea Date – aye Steve Morris – aye Jennifer Santini - aye Anne Burt – aye Public Hearings No items scheduled Page 1 of 2  MINUTES WOODBURY HOUSING AND REDEVELOPMENT AUTHORITY December 14, 2022 Discussion A. Adoption of 2023 HRA Budget HRA Clerk Janelle Schmitz stated the HRA 2023 budget includes expenditures of $550,000 loan pool disbursements, which is about what it was last year; $191,200 in labor reimbursements to the City’s General Fund; $64,100 in professional services; and $7,850 in operating expenditures. She stated the HRA budget revenues that correspond to the revenues include $250,000 HRA property tax levy minus $2,500; $280,000 loan principal and interest; $9,700 in investment income; $370 in LMCIT dividends and miscellaneous and $275,580 in HRA fund balance. Ms. Schmitz stated in regard to the HRA levy the $250,000 being proposed is unchanged since 2011. She stated the annual impact on median-valued home is $6.78. Ms. Schmitz stated the Council reviewed the budget at the September 14, 2022 budget workshop and on September 28, 2022 the HRA held a meeting for the not-to-exceed levy which was adopted at that time. Member Wilson asked how much the total amount of the levy was. Ms. Schmitz stated $250,000. Member Morris stated in the new presentation there was no mention of the new code enforcement officer for the new rental licensing program. Ms. Schmitz apologized and stated that part of that salary is included in the labor reimbursement. Member Morris asked if it would partially come out of the fund. Ms. Schmitz agreed and added it would be at a declining percentage over time. She stated it got pushed back a year because they did not hire until this year. Member Santini moved, seconded by Member Morris, To adopt the following resolution Resolution 22-06 Resolution of the Housing & Redevelopment Authority of the City of Woodbury, Washington County, adopting the 2023 Housing and Redevelopment Authority Budget. Voting via voice: Kim Wilson – aye Andrea Date – aye Steve Morris – aye Jennifer Santini - aye Anne Burt – aye Adjournment President Burt moved, seconded by Member Morris, to adjourn the December 14, 2022 Housing & Redevelopment Authority meeting. Voting in Favor: Wilson, Date, Morris, Santini, Burt Absent: None Chair Burt adjourned the meeting at 7:10 p.m. _________________________________________ Anne W. Burt Approved by the Woodbury Housing and Redevelopment Authority on January 25, 2023. Page 2 of 2  3C City of Woodbury, Minnesota Office of the HRA Executive Director HRA Letter 23-02 January 25, 2023 To: The Honorable Chair and Commissioners of the Woodbury HRA From: Clinton P. Gridley, Executive Director Subject: Designating Depository of Public Funds Summary Minnesota State Statues 118A.02 requires the City Council to designate the City’s depository of public funds. The City and CorTrust Bank extended the current banking service agreement in June of 2021 for three years until October 1, 2024. Recommendation Staff recommends that the HRA Board adopt a motion designating CorTrust Bank as the HRA’s depository of public funds for the year 2023. Fiscal Implications The interest income and fees per the agreement are accounted for in the 2023 HRA budget. Policy In accordance with the City’s investment policy, this action affirms staff’s recommendation to designate CorTrust as the HRA’s depository of public funds. Public Process This is the first public process for this item. Background Not Applicable. Written By: Janelle Schmitz, Community Development Director Approved Through: Clinton P. Gridley, HRA Executive Director Attachments: None  5A City of Woodbury, Minnesota Office of the HRA Executive Director HRA Letter 23-03 January 25, 2023 To: The Honorable Chair and Commissioners of the Woodbury HRA From: Clinton P. Gridley, Executive Director Subject: Approving Carryovers to the 2023 HRA Budget Summary The HRA’s Neighborhood Reinvestment Fund assists Woodbury homeowners with access to capital to prevent or cure blight, encourage home renovation and increase home values in the City. The adopted 2022 HRA budget included funds for the HRA’s loan programs. There were three Neighborhood Reinvestment Fund loans that closed in 2022 that did not see final closeouts because the construction activity was still ongoing at the end of the year. Staff recommends that these funds be carried forward to the 2023 HRA budget. Recommendation Staff recommends HRA adopt HRA Resolution 23-02 authorizing $21,528 to be carried forward to the 2023 HRA budget. Fiscal Implications Three loans were issued via the HRA’s Neighborhood Reinvestment Fund in the second half of 2022 in connection to properties in Woodbury where the construction is still active. The Neighborhood Reinvestment Fund is structured in a manner that pays the contractors upon the completion of construction. As such, $21,528 of HRA funds that were obligated in 2022 will not be expended until calendar year 2023. Therefore, staff is recommending that these dollars be carried forward from the 2022 HRA budget into 2023. Carryovers are generally funded from fund balance. Since the authorized appropriations were not expended fully in 2022, the dollars were automatically transferred to the HRA Fund’s fund balance on December 31, 2022 in accordance with Generally Accepted Accounting Principles. Funding for the proposed 2022 HRA carryovers will come from the use of HRA fund balance. Policy The carryover technique is a common financial practice and is typically utilized by the City of Woodbury on an annual basis at the beginning of the year. HRA Letter 23-03 January 25, 2023 Page 2 Public Process This is the first public process for this item. Background Low-interest loans of up to $40,000 are available to income-qualified households who earn no more than 125 percent of the Woodbury median household income, currently $146,000. Eligible improvements include home renovation that remedies a code violation as well as exterior improvements such as new roofs, siding, windows or interior improvements that would increase the value of the home. Also eligible are any improvements that address health and safety, habitability, energy conservation or accessibility. Written By: Janelle Schmitz, Community Development Director Approved Through: Clinton P. Gridley, HRA Executive Director Attachments: HRA Resolution 23-02  HRA Resolution 23-02 Resolution of the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Woodbury, Washington County, Minnesota Authorizing $21,528 to be carried forward to the 2023 HRA budget WHEREAS, the 2022 HRA budget included funds to issue loans via the Woodbury First-Time Homeownership Program and the Neighborhood Reinvestment Fund; and WHEREAS, there were three Neighborhood Reinvestment Fund loans that were issued in the second half of 2022 but were not closed out because the construction activity had not concluded as of December 31, 2022; and WHEREAS, the unexpended amount of said loans sums to $21,528. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Woodbury, Washington County, Minnesota to approve the following 2022 HRA Fund budget carryovers: Fund Account Amount HRA Loan Program Disbursements $21,528 NOW, THEREFORE, BE IT FURTHER RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Woodbury, Washington County, Minnesota that the following revenue adjustments be made: Revenue Category Amount Use of Fund Balance—HRA Fund $21,528 This Resolution was declared duly passed and adopted and was signed by the Chair and attested to by the Executive Director this 25th day of January 2023. Attest: Anne W. Burt, Chair Clinton P. Gridley, Executive Director  5B City of Woodbury, Minnesota Office of the HRA Executive Director HRA Letter 23-04 January 25, 2023 To: The Honorable Chair and Commissioners of the Woodbury HRA From: Clinton P. Gridley, HRA Executive Director Subject: Review of 2023 HRA Workplan Summary The City adopted its 2021 Housing Action Plan (HAP) on April 14, 2021 which included fifteen separate implementation strategies to guide housing policy for the City over the next decade. To date, five of the implementation strategies have been completed, while other strategies range from short-term to longer-term for implementation. The attached HAP implementation matrix provided serves as the workplan for the HRA. Recommendation This HRA Letter is generative in nature and does not request a formal action. Rather, informal guidance and/or affirmation is requested from the HRA Board. In 2023, staff proposes to continue to prioritize the following HAP implementation steps: • “marketing and utilization of the Neighborhood Reinvestment Fund and Woodbury First-Time Homeownership Program through new marketing and communications strategies to reach audiences and potential borrowers who may not be aware of the programs” (Step 1.1) • “new single-family and townhome rental licensure program” (Step 6.1). Fiscal Implications This item does not have any specific fiscal implications but may lead to policy conversations regarding investments from the HRA Fund, the HUD Fund or other City assets. Policy The 2021 HAP provides policy guidance for housing-related topics in the community. Public Process 1. The 2040 Comprehensive Plan identified the need to update the HAP. 2. The City Council held workshop discussions on the 2021 HAP on March 25, 2020, October 21, 2020, and February 22, 2021. 3. The City Council adopted the 2021 HAP on April 14, 2021. HRA Letter 23-04 January 25, 2023 Page 2 Background Overview The 2021 HAP replaces the prior version of the HAP which was adopted in 2007. The 2021 HAP provides introduction and background information and also identifies the City’s housing guiding principles as well as detailed reviews of nine specific housing policy topics. Each housing policy topic has at least one implementation step which are summarized in the attached matrix. HAP Implementation The City has spent a significant amount of time on policy and analytics over the course of the previous two years related to housing and is now shifting to an implementation mode of the HAP with the information below highlighting the 2023 implementation strategies: 1. Despite a key housing staff vacancy for much of the year, the HRA issued 16 loans in 2022. A new housing position is expected to start in the first quarter of 2023, and one of their primary duties will be to focus on the marketing and outreach connected to these loan programs. Furthermore, with the change in the interest rate environment, this program will be an even more critical resource for those looking to enter the first-time home ownership market. 2. With regard to the City’s proposed single-family and townhome rental licensure program, staff is in the final process of drafting ordinance amendments and adjusting software systems in advance of community engagement in the second quarter of 2023. An additional code enforcement staff was added in mid-2022 to facilitate the launch of the program. As defined by the adopted 2023 Budget, the HRA Fund will contribute to a portion of the costs associated with the new code enforcement position. Written By: Janelle Schmitz, Community Development Director Approved Through: Clinton P. Gridley, HRA Executive Director Attachments: 2021 HAP Implementation Matrix  Housing Action Plan Implementation Matrix, January 25, 2023 Strategy Number Strategy Status/Timing 1.1 New marketing of HRA loan programs Kicking off in 2023 (new housing position) Investigate a potential new "step-up" 1.2 Future HRA loan program COMPLETE, new program guidelines were adoped on April 13, 2022, and 1.3 Investigate 3.5% minimum contribution affirmed 3.5% minimum but added a cap of $10,000 COMPLETE, adopted July 14, 2021 as 2.1 HRA Fund Policy HRA Directive HRAD-1.5 3.1 Housing Choice Voucher pilot Remain opportunistic 4.1 Consider land banking within 2.1 COMPLETE 4.2 Review sites for land banking Remain opportunistic COMPLETE, Council Directive CD- 5.1 Update the TIF policy COMDEV-3.5 updated on June 23, 2021 6.1 Create new rental licensure program Q2 2023 go-live date Evaluate ordinance update needs for 6.2 Q3 2023 ordinance update apartment licensure 6.3 ID how to be a rental advocate Ongoing Via the Gold Line Station Area Master 7.1 Review density policy re Gold Line Plan implementation; Q2 2023 COMPLETE, 2021 HAP adopted on April 8.1 Adopt HAP 14, 2021 8.2 Adoption of fair housing policy Future 9.1 Fair housing compliance Future