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Home My WebLink About2024/02/14 - ADMIN - Agenda Packets - Housing Authority - RegularMISSION STATEMENT The Housing Authority develops, integrates, and operates housing and housing assistance policies and programs to ensure the availability of safe, affordable, and desirable housing options that meet the diverse, lifecycle housing needs of all the residents of St. Louis Park. AGENDA Housing Authority, St. Louis Park, Minnesota Wednesday, February 14, 2024 5 p.m. City Hall, Westwood Room, third floor 1.Roll Call 2.Approval of Minutes for December 2023 3.Hearings: none 4.Presentation a.none 5.Unfinished Business a.None 6.New Business a.Approval of SEMAP certification fiscal year end Dec. 31, 2023 b.Fifth Amendment to Project Based Voucher Assistance contract with Vail Place c.Proposed allocation of 2024 Community Development Block Grant (CDBG) funds 7.Communications from Executive Director a.Claims Lists:December 2023 and January 2024 b.Financials:November 2023 c.Communications: 8.Other 9.Adjournment Auxiliary Aides for those with disabilities are available upon request. To make arrangements please call the Housing Authority office at 952-924-2579 (TDD 952-924-2668) at least 96 hours in advance of meeting. 1 2 MINUTES St. Louis Park Housing Authority St Louis Park, MN Wednesday, December 13, 2023, 5 p.m. MEMBERS PRESENT: Commissioner Catherine Courtney, Commissioner Paul Beck, Commissioner Reynold Burrowes, Commissioner Thom Miller MEMBERS ABSENT: Commissioner Richard Webb STAFF PRESENT: Marney Olson, Amy Morris, Angela Nelson, Nicole Randall 1. Call to Order – The meeting was called to order at 5:05 p.m. 2. Approval of Minutes – Minutes for the November 8, 2023 board meeting were reviewed. A motion to approve was made by Commissioner Miller and seconded by Commissioner Beck. Motion passed 4-0. 3. Hearings – None. 4. Presentation – None. 5. Unfinished Business – None 6. New Business a. Public Housing Budget Fiscal Year Ending December 31,2024, Resolution No. 756 – Ms. Olson reviewed the Public Housing Operating Budget for Fiscal Year Ending December 31, 2023. A motion to approve was made by Commissioner Miller and seconded by Commissioner Burrowes. Motion passed 4-0. b. Revisions to the Public Housing calculation of flat rent, Resolution No. 757 – Ms. Olson reviewed the revisions to the Public Housing flat rent calculation for 2024 due to significant increases in HUD’s Fair Market Rents. A motion to approve was made by Commissioner Beck and seconded by Commissioner Miller. Motion passed 4-0. c. Public Housing Program Collection Loss Write-Off No. 758 – Ms. Morris reviewed the annual write off with the board for the public housing program in the amount of $4,899.67. These charges were due to cleaning, repairs and materials at move out. The housing choice voucher program has an annual write off in the amount of $12,684.01. These losses are due to failure to report income and not paying balances before leaving the HCV program. Although the HA will write them off for audit purposes, staff continue to try and collect funds. A motion to approve was made by Commissioner Miller and seconded by Commissioner Burrowes. Motion passed 4-0. 3 d. Contract extension for audit services for fiscal year end 2023-2025. Ms. Olson reviewed the Redpath proposal for a three-year extension for audit services for fiscal year ends 2023, 2024, 2025. A motion to approve was made by Commissioner Miller and seconded by Commissioner Beck. Motion passed 4-0. e. Contract amendment with Center for Energy and Environment (CEE) loan programs. Ms. Olson reviewed the amendment with CEE that eliminates the credit score requirement for the first- generation program and clarifies that the first-generation program may not be layered with the city’s down payment assistance program. Since the HA board approved the contract amendment, Commissioner Courtney recommended the signature line on the amendment be changed from the housing supervisor to the board chair. The executive director is currently listed and will remain on the contract amendment. A motion to approve was made by Commissioner Beck and seconded by Commissioner Miller. Motion approved 4-0. 7. Communications 8. Other 9. Adjournment Commissioner Beck moved to adjourn the meeting and Commissioner Miller seconded. The motion passed 4-0. The meeting was adjourned at 6:06 p.m. Respectfully submitted, _________________ Paul Beck, Secretary 4 HOUSING AUTHORITY OF ST. LOUIS PARK Agenda Item #6a St. Louis Park, Minnesota Meeting Date: February 14, 2024 TITLE: Approval of Section Eight Management Assessment Program (SEMAP) Fiscal Year End December 31, 2023. RECOMMENDED ACTION: Staff recommend that the Housing Authority Board approve the execution and transmission of HUD-Form 52648 - SEMAP Certification. POLICY CONSIDERATION: Does the Housing Authority Board confirm that the SEMAP certification accurately reflects the HA’s management and administration of the Housing Choice Voucher program and approve its transmission of HUD-Form 52648 SEMAP Certification to HUD? SUMMARY: The Department of Housing and Urban Development (HUD) implemented the Housing Choice Voucher (Section Eight) Management Assessment Program (SEMAP) in the fall 2000. SEMAP is a management assessment system utilized by HUD to annually measure the performance of local housing agencies that administer the Housing Choice Voucher rental assistance program. HUD measures the performance of housing authorities in 14 key areas. The 14 indicators of performance show whether eligible families are helped to afford decent rental units at a reasonable subsidy cost as intended by federal housing legislation and by Congress’ appropriation of federal tax dollars for this program. The 14 key indicators of performance are: • Selection from Waiting List • Rent Reasonable • Determination of Adjusted Income • Utility Allowance Schedule • HQS Quality Control Inspections • HQS Enforcement • Expanding Housing Opportunities • Payment Standards • Annual Reexams • Correct Tenant Rent Calculations • Precontract HQS Inspections • Lease Up • Family Self Sufficiency Enrollment • Deconcentration Bonus SEMAP is used to remotely measure PHA performance and administration of the housing choice voucher program. SEMAP uses HUD's national database of tenant information and information 5 from audits conducted annually by independent auditors. HUD will annually assign each PHA a rating on each of the 14 indicators and an overall performance rating of high, standard, or troubled. Metropolitan PHAs are also able to earn bonus points for their achievements in encouraging assisted families to choose housing in low poverty areas. If a housing agency is not performing adequately on any of the 14 indicators or is assigned an overall performance rating of troubled, SEMAP requires corrective action. HUD will conduct on-site review of housing authorities rated as troubled to assess the magnitude and seriousness of the problems. The housing authority must implement a thorough corrective action plan that HUD will monitor, to ensure improvement. It is HUD’s intent that the systematic and comprehensive approach of SEMAP will improve HUD’s oversight of the Housing Choice tenant-based rental assistance programs and will help HUD to target monitoring and assistance to housing agency programs that need the most improvement. The HA’s most recent submission of SEMAP was FYE 2022 and the HA received a score of 100. HA Fiscal Year (FYE) 2023 Certification Attached is HUD Form-52648, Housing Choice Voucher (Section 8) Management Assessment Program (SEMAP) Certification, for review. Certification and electronic transmission of the management operation indicator information is required by HUD to calculate the HA’s SEMAP score within 60 Days of the fiscal year end, or February 29, 2024. A staff examination of the HA’s records, systems and files indicates that the HA meets the highest threshold for all indicators. HUD will determine the HA’s final SEMAP score by examining information from the national database of Housing Choice Voucher tenant information and the HA’s certification. An HA must receive a score of 90% or higher to be considered a high performer; 60% to 89% classifies an HA as a standard performer. HAs receiving scores below 60% will be considered “troubled”. Based on staff’s examination of the HA’s records, staff anticipate receiving a score of 105 and a classification of high performer. The additional points are the result of a de-concentration of poverty bonus. Attachment: HUD Form-52648, Housing Choice Voucher (Section 8) Management Assessment Program (SEMAP) Certification Prepared By: Nicole Randall, housing assistance administrator Reviewed by: Marney Olson, housing supervisor 6 OMB Approval No. 2577-0215U.S. Department of HousingSection 8 Management Assessment and Urban Development (exp. )Program (SEMAP)Office of Public and Indian Housing Certification Public reporting burden for this collection of information is estimated to average 12 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not conduct or sponsor, and you are not required to respond to, a collection of information unless it displays a currently valid OMB control number. This collection of information is required by 24 CFR sec 985.101 which requires a Public Housing Agency (PHA) administering a Section 8 tenant-based assistance program to submit an annual SEMAP Certification within 60 days after the end of its fiscal year. The information from the PHA concerns the performance of the PHA and provides assurance that there is no evidence of seriously deficient performance. HUD uses the information and other data to assess PHA management capabilities and deficiencies, and to assign an overall performance rating to the PHA. Responses are mandatory and the information collected does not lend itself to confidentiality. Instructions Respond to this certification form using the PHA’s actual data for the fiscal year just ended. PHA Name For PHA FY Ending (mm/dd/yyyy)Submission Date (mm/dd/yyyy) Check here if the PHA expends less than $300,000 a year in Federal awards Indicators 1 - 7 will not be rated if the PHA expends less than $300,000 a year in Federal awards and its Section 8 programs are not audited for compliance with regulations by an independent auditor. A PHA that expends less than $300,000 in Federal awards in a year must still complete the certification for these indicators. Performance Indicators 1.Selection from the Waiting List. (24 CFR 982.54(d)(1) and 982.204(a)) (a) The PHA has written policies in its administrative plan for selecting applicants from the waiting list. PHA Response Yes No (b) The PHA’s quality control samples of applicants reaching the top of the waiting list and of admissions show that at least 98% of the families in the samples were selected from the waiting list for admission in accordance with the PHA’s policies and met the selection criteria that determined their places on the waiting list and their order of selection. PHA Response Yes No 2.Reasonable Rent. (24 CFR 982.4, 982.54(d)(15), 982.158(f)(7) and 982.507) (a) The PHA has and implements a reasonable written method to determine and document for each unit leased that the rent to owner is reasonable based on current rents for comparable unassisted units (i) at the time of initial leasing, (ii) before any increase in the rent to owner, and (iii) at the HAP contract anniversary if there is a 5 percent decrease in the published FMR in effect 60 days before the HAP contract anniversary. The PHA’s method takes into consideration the location, size, type, quality, and age of the program unit and of similar unassisted units, and any amenities, housing services, maintenance or utilities provided by the owners. PHA Response Yes No (b) The PHA’s quality control sample of tenant files for which a determination of reasonable rent was required shows that the PHA followed its written method to determine reasonable rent and documented its determination that the rent to owner is reasonable as required for (check one): PHA Response At least 98% of units sampled 80 to 97% of units sampled Less than 80% of units sampled 3.Determination of Adjusted Income. (24 CFR part 5, subpart F and 24 CFR 982.516) The PHA’s quality control sample of tenant files shows that at the time of admission and reexamination, the PHA properly obtained third party verification of adjusted income or documented why third party verification was not available; used the verified information in determining adjusted income; properly attributed allowances for expenses; and, where the family is responsible for utilities under the lease, the PHA used the appropriate utility allowances for the unit leased in determining the gross rent for (check one): PHA Response At least 90% of files sampled 80 to 89% of files sampled Less than 80% of files sampled 4.Utility Allowance Schedule. (24 CFR 982.517) The PHA maintains an up-to-date utility allowance schedule. The PHA reviewed utility rate data that it obtained within the last 12 months, and adjusted its utility allowance schedule if there has been a change of 10% or more in a utility rate since the last time the utility allowance schedule was revised. PHA Response Yes No 5.HQS Quality Control Inspections. (24 CFR 982.405(b)) A PHA supervisor (or other qualified person) reinspected a sample of units during the PHA fiscal year, which met the minimum sample size required by HUD (see 24 CFR 985.2), for quality control of HQS inspections. The PHA supervisor’s reinspected sample was drawn from recently completed HQS inspections and represents a cross section of neighborhoods and the work of a cross section of inspectors. PHA Response Yes No 6.HQS Enforcement. (24 CFR 982.404) The PHA’s quality control sample of case files with failed HQS inspections shows that, for all cases sampled, any cited life-threatening HQS deficiencies were corrected within 24 hours from the inspection and, all other cited HQS deficiencies were corrected within no more than 30 calendar days from the inspection or any PHA-approved extension, or, if HQS deficiencies were not corrected within the required time frame, the PHA stopped housing assistance payments beginning no later than the first of the month following the correction period, or took prompt and vigorous action to enforce the family obligations for (check one): PHA Response At least 98% of cases sampled Less than 98% of cases sampled form HUD-52648 (11/2013)Previous edition is obsolete Page 1 of 4 ref. 24 CFR Part 9857 7.Expanding Housing Opportunities. (24 CFR 982.54(d)(5), 982.153(b)(3) and (b)(4), 982.301(a) and 983.301(b)(4) and (b)(12)). Applies only to PHAs with jurisdiction in metropolitan FMR areas. Check here if not applicable (a) The PHA has a written policy to encourage participation by owners of units outside areas of poverty or minority concentration which clearly delineates areas in its jurisdiction that the PHA considers areas of poverty or minority concentration, and which includes actions the PHA will take to encourage owner participation. PHA Response Yes No (b) The PHA has documentation that shows that it took actions indicated in its written policy to encourage participation by owners outside areas of poverty and minority concentration. PHA Response Yes No (c) The PHA has prepared maps that show various areas, both within and neighboring its jurisdiction, with housing opportunities outside areas of poverty and minority concentration; the PHA has assembled information about job opportunities, schools and services in these areas; and the PHA uses the maps and related information when briefing voucher holders. PHA Response Yes No (d) The PHA’s information packet for voucher holders contains either a list of owners who are willing to lease, or properties available for lease, under the voucher program, or a list of other organizations that will help families find units and the list includes properties or organizations that operate outside areas of poverty or minority concentration. PHA Response Yes No (e) The PHA’s information packet includes an explanation of how portability works and includes a list of neighboring PHAs with the name, address and telephone number of a portability contact person at each. PHA Response Yes No (f) The PHA has analyzed whether voucher holders have experienced difficulties in finding housing outside areas of poverty or minority concentration and, where such difficulties were found, the PHA has considered whether it is appropriate to seek approval of exception payment standard amounts in any part of its jurisdiction and has sought HUD approval when necessary. PHA Response Yes No 8.Payment Standards. The PHA has adopted current payment standards for the voucher program by unit size for each FMR area in the PHA jurisdiction and, if applicable, for each PHA-designated part of an FMR area, which do not exceed 110 percent of the current applicable FMR and which are not less than 90 percent of the current FMR (unless a lower percent is approved by HUD). (24 CFR 982.503) PHA Response Yes No Enter current FMRs and payment standards (PS) 0-BR FMR _________1-BR FMR _________2-BR FMR _________3-BR FMR ________4-BR FMR _________ PS ______________PS ______________PS ______________PS ______________PS ______________ If the PHA has jurisdiction in more than one FMR area, and/or if the PHA has established separate payment standards for a PHA-designated part of an FMR area, attach similar FMR and payment standard comparisons for each FMR area and designated area. 9.Annual Reexaminations. The PHA completes a reexamination for each participating family at least every 12 months. (24 CFR 982.516) PHA Response Yes No 10.Correct Tenant Rent Calculations. The PHA correctly calculates tenant rent in the rental certificate program and the family rent to owner in the rental voucher program. (24 CFR 982, Subpart K) PHA Response Yes No 11.Precontract HQS Inspections. Each newly leased unit passed HQS inspection before the beginning date of the assisted lease and HAP contract. (24 CFR 982.305) PHA Response Yes No 12.Annual HQS Inspections. The PHA inspects each unit under contract at least annually. (24 CFR 982.405(a)) PHA Response Yes No 13.Lease-Up. The PHA executes assistance contracts on behalf of eligible families for the number of units that has been under budget for at least one year. PHA Response Yes No 14a.Family Self-Sufficiency Enrollment. The PHA has enrolled families in FSS as required. (24 CFR 984.105) Applies only to PHAs required to administer an FSS program . Check here if not applicable PHA Response a. Number of mandatory FSS slots (Count units funded under the FY 1992 FSS incentive awards and in FY 1993 and later through 10/20/1998. Exclude units funded in connection with Section 8 and Section 23 project-based contract terminations; public housing demolition, disposition and replacement; HUD multifamily property sales; prepaid or terminated mortgages under section 236 or section 221(d)(3); and Section 8 renewal funding. Subtract the number of families that successfully completed their contracts on or after 10/21/1998.) or, Number of mandatory FSS slots under HUD-approved exception form HUD-52648 (8/2000)Previous edition is obsolete Page 2 of 4 ref. 24 CFR Part 9858 b. Number of FSS families currently enrolled c. Portability: If you are the initial PHA, enter the number of families currently enrolled in your FSS program, but who have moved under portability and whose Section 8 assistance is administered by another PHA Percent of FSS slots filled (b + c divided by a) 14b. Percent of FSS Participants with Escrow Account Balances. The PHA has made progress in supporting family self-sufficiency as measured by the percent of currently enrolled FSS families with escrow account balances. (24 CFR 984.305) Applies only to PHAs required to administer an FSS program . Check here if not applicable PHA Response Yes No Portability: If you are the initial PHA, enter the number of families with FSS escrow accounts currently enrolled in your FSS program, but who have moved under portability and whose Section 8 assistance is administered by another PHA Deconcentration Bonus Indicator (Optional and only for PHAs with jurisdiction in metropolitan FMR areas). The PHA is submitting with this certification data which show that: (1)Half or more of all Section 8 families with children assisted by the PHA in its principal operating area resided in low poverty census tracts at the end of the last PHA FY; (2)The percent of Section 8 mover families with children who moved to low poverty census tracts in the PHA’s principal operating area during the last PHA FY is at least two percentage points higher than the percent of all Section 8 families with children who resided in low poverty census tracts at the end of the last PHA FY; or (3)The percent of Section 8 mover families with children who moved to low poverty census tracts in the PHA’s principal operating area over the last two PHA FYs is at least two percentage points higher than the percent of all Section 8 families with children who resided in low poverty census tracts at the end of the second to last PHA FY. PHA Response Yes No If yes, attach completed deconcentration bonus indicator addendum. I hereby certify that, to the best of my knowledge, the above responses under the Section 8 Management Assessment Program (SEMAP) are true and accurate for the PHA fiscal year indicated above. I also certify that, to my present knowledge, there is not evidence to indicate seriously deficient performance that casts doubt on the PHA’s capacity to administer Section 8 rental assistance in accordance with Federal law and regulations. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Executive Director, signature Chairperson, Board of Commissioners, signature ____________________________________________________________________________________________________________________ Date (mm/dd/yyyy) ____________________________________________Date (mm/dd/yyyy) _________________________________________ The PHA may include with its SEMAP certification any information bearing on the accuracy or completeness of the information used by the PHA in providing its certification. form HUD-52648 (11/2013)Previous edition is obsolete Page 3 of 4 ref. 24 CFR Part 9859 Page 4 of 4 . SEMAP Certification - Addendum for Reporting Data for Deconcentration Bonus Indicator Date (mm/dd/yyyy) ____________________________ PHA Name ______________________________________________________________________________________ Principal Operating Area of PHA _____________________________________________________________________ (The geographic entity for which the Census tabulates data) Special Instructions for State or regional PHAs Complete a copy of this addendum for each metropolitan area or portion of a metropolitan area (i.e., principal operating areas) where the PHA has assisted 20 or more Section 8 families with children in the last completed PHA FY. HUD will rate the areas separately and the separate ratings will then be weighted by the number of assisted families with children in each area and averaged to determine bonus points. 1990 Census Poverty Rate of Principal Operating Area __________________________________________________ Criteria to Obtain Deconcentration Indicator Bonus Points To qualify for bonus points, a PHA must complete the requested information and answer yes for only one of the 3 criteria below. However, State and regional PHAs must always complete line 1) b for each metropolitan principal operating area. 1)__________a. Number of Section 8 families with children assisted by the PHA in its principal operating area at the end of the last PHA FY who live in low poverty census tracts. A low poverty census tract is a tract with a poverty rate at or below the overall poverty rate for the principal operating area of the PHA, or at or below 10% whichever is greater. __________b. Total Section 8 families with children assisted by the PHA in its principal operating area at the end of the last PHA FY. __________c. Percent of all Section 8 families with children residing in low poverty census tracts in the PHA’s principal operating area at the end of the last PHA FY (line a divided by line b). Is line c 50% or more? Yes No 2)__________a. Percent of all Section 8 families with children residing in low poverty census tracts in the PHA's principal operating area at the end of the last completed PHA FY. __________b. Number of Section 8 families with children who moved to low poverty census tracts during the last completed PHA FY. __________c. Number of Section 8 families with children who moved during the last completed PHA FY. __________d. Percent of all Section 8 mover families with children who moved to low poverty census tracts during the last PHA fiscal year (line b divided by line c). Is line d at least two percentage points higher than line a? Yes No 3)__________a. Percent of all Section 8 families with children residing in low poverty census tracts in the PHA's principal operating area at the end of the second to last completed PHA FY. __________b. Number of Section 8 families with children who moved to low poverty census tracts during the last two completed PHA FYs. __________c. Number of Section 8 families with children who moved during the last two completed PHA FYs. __________d. Percent of all Section 8 mover families with children who moved to low poverty census tracts over the last two completed PHA FYs (line b divided by line c). Is line d at least two percentage points higher than line a? Yes No If one of the 3 criteria above is met, the PHA may be eligible for 5 bonus points. See instructions above concerning bonus points for State and regional PHAs. form HUD-52648 (11/2013)Previous edition is obsolete ref. 24 CFR Part 98510 Housing Authority of St. Louis Park Agenda Item # 6b St. Louis Park, Minnesota Meeting Date: February 14, 2024 TITLE: Fifth Amendment to the Project Based Voucher Assistance Contract with Vail Place RECOMMENDED ACTION: Staff recommends that the Board authorize the execution of an amendment to the contract with Vail Place, to continue administration of eight (8) units of Project Based Voucher rental assistance (PBV) at the property owned by Vail Place located at 3647 Sumter Avenue, for an additional five years. The proposed amendment will be the fifth amendment to the contract effective June 1, 2003. The proposed contract term is January 1, 2024 through December 31, 2028. POLICY CONSIDERATION: Does the Board support the continuing the project basing of eight (8) Vouchers at the Vail Place property located at 3647 Sumter Avenue? SUMMARY: At the April 11, 2001 Housing Authority (HA) Board Meeting, the Board authorized project basing up to fifteen percent (40 units) of the HA’s HCV allocation. HUD regulations allow HAs to project- base up to 20% of the HA’s total HCV allocation. Based on the twenty-percent rule, the HA can allocate up to 78 PBVs. Currently, the HA has 46 units PBV units at three developments: • Perspectives Inc. 22 PBV units: 2 one-bedroom units and 20 two-bedroom units • Wayside House 16 PBV units: 14 two-bedroom units; 2 three-bedroom units • Vail Place 8 PBV units: 7 one-bedroom units; 1 studio unit VAIL PLACE UPDATE: Vail Place constructed an eight-unit apartment building in 2003 with onsite office space for staff and common space for the residents. The building is located on 37th Street and Sumter Avenue. The building provides permanent and affordable housing with Vail Place program services tailored to the needs of people with disabilities. Vail Place provides essential services such as employment, education, social support, independent living skills, health care and other relevant mental health support services. Vail Place has a long history of providing social and housing services to this population. The project has a desirable location and has successfully integrated into the neighborhood. The building offers the eight residents who reside there safe, affordable and supportive housing that would have otherwise been difficult to attain without the Project-Based Vouchers from the HA. Three of the original residents from when the building was built in 2003 are still living in the building. Due to the low turnover rate, the development has had no operational impact on the HA’s ability to issue vouchers to applicants off the general voucher waiting list. The development has provided stable and needed housing assistance for the resident population. Supporting Documents: Amendment to the contract Prepared by: Nicole Randall, housing assistance administrator Reviewed by: Marney Olson, housing supervisor 11 FIFTH AMENDMENT TO THE PROJECT BASED HOUSING CHOICE VOUCHER ASSISTANCE CONTRACT BETWEEN THE HOUSING AUTHORITY OF ST. LOUIS PARK AND VAIL PLACE This Fifth Amendment to the Housing Assistance Payments (HAP) Contract to administer eight (8) units of Project Based Voucher (PBV) rental assistance at the property owned by Vail Place, located at 3647 Sumter Avenue, St. Louis Park, MN for an additional five (5) years, by and between the Housing Authority of St. Louis Park, referred to as “Authority” and Vail Place, hereinafter referred to as “Vail Place”. Recitals A. The aforementioned parties entered into a Contract for administration of eight (8) units of PBV at the property owned by Vail Place, located at 3647 Sumter Avenue, St. Louis Park, MN, dated June 1, 2003. B. The aforementioned parties wish to amend one of the Contract’s provisions herein provided. NOW THEREFORE, it is agreed between the parties as follows: 1. Section C. Effective Date and Term of HAP Contract is amended as follows: The term of this Contract is January 1, 2024 through December 31, 2028, with an option for the Authority to extend the Contract by providing Vail Place with an Amendment. 2. Except as herein provided, all terms, conditions and provisions of the said HAP Contract dated June 1, 2003, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the HAP Contract for administration of eight (8) Project Based Voucher (PBV) Rental Assistance at property owned by Vail Place, located at 3647 Sumter Avenue, St. Louis Park, MN. Approved by the Housing Authority Board February 14, 2024. HOUSING AUTHORITY OF ST. LOUIS PARK VAIL PLACE _______________________________ ______________________________ Catherine Courtney, Chairperson Karina Forrest-Perkins, Executive Director _______________________________ Karen Barton, Executive Director 12 HOUSING AUTHORITY OF ST. LOUIS PARK Agenda Item# 6c St. Louis Park, Minnesota Meeting Date: February 14, 2024 TITLE: Proposed Allocation of 2024 Community Development Block Grant (CDBG) funds RECOMMENDED ACTION: No action required. This report is for informational purposes only. POLICY CONSIDERATION: Does the Housing Authority Board have any comments or questions on the proposed CDBG allocation? SUMMARY: Each year the city must decide how to use its annual allocation of CDBG Funds. The public hearing and official city council action is scheduled for February 20, 2024. The 2024 allocation is not yet available, so for 2024 Hennepin County used the allocation amount received last year as an estimate. The estimated allocation for St. Louis Park is $149,231.95. The national objectives of the CDBG program are to benefit low- and moderate-income persons, prevention or elimination of slum or blight and/or to meet a particular urgent community development need. The CDBG program allows for up to 15% of allocated funds to be used to fund public services such as emergency rental and food assistance. Hennepin County sets aside fifteen percent of the overall CDBG budget for public service activities awarded through a single combined, competitive RFP. Hennepin County advertises the RFP process and sends information to public service providers including past recipients.The city has provided a letter of support to STEP for their application upon request and provided a letter again for the 2024 RFP. The city council has focused CDBG funds on improvements to the housing stock for low-income families or on affordable homeownership. The past several years funding has been allocated between Homes Within Reach/West Hennepin Affordable Housing Land Trust (WHAHLT) and the low-income deferred rehab loan administered by Hennepin County. In 2023 the city allocated all funds to the deferred rehab loan program to address the growing number of households on the waiting list. At the end of the third quarter in 2023 111 households were on the waiting list. Using all CDBG funds for the deferred loan program not only increases the funding for the deferred loan program, but it also reduces the administrative work required to receive CDBG reimbursement for WHAHLT. The city increased the budget for WHAHLT so WHAHLT was not negatively impacted by eliminating CDBG funding. Staff is recommending the city council allocate all 2024 funds to the low-income deferred rehab loan program for homeowners with annual incomes at or below 80% area median income. The rehab focuses on improvements to bring homes into code compliance, address deferred maintenance and provide long-term maintenance-free housing. The maximum loan amount is $30,000 and is deferred until the sale of the home or forgiven after 15 years. Prepared by: Marney Olson, Housing Supervisor 13 14 15 16 17 18 19 20 21 22 23 Agenda Item #7b YTD YTD PTD YTD PTD YTD PTD YTD PTD YTD PTD YTD PTD YTD Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Rental Income 78668 840588 Subsidy - HUD 0 416571 301104 3038504 30770 252720 17026 185421 Other income - Port In 11783 148971 Interest Income Operating Transfers In FSS Forfeiture 0 0 0 0 Other income -359 27814 100 7382 0 1120 12240 0 44955 6620 66238 Grants/Admin Fees 0 34347 399024 3372 28233 1400 15450 - 78309 1284973 347334 3593881 34142 280953 19546 213111 0 44955 6620 66238 Salaries & Benefits 39997 327266 24355 193177 1990 21996 831 19042 - Training 439 8051 239 10693 Other Admin 5114 52906 3066 33691 145 1430 145 1430 -6620 66238 45550 388223 27660 237561 2135 23426 976 20472 -6620 66238 Water 5651 34690 Electricity 5348 75277 Gas 1348 34504 Sewer/ Garbage 12819 73142 25166 217613 ---- Salaries and Benefits 17443 164446 0 0 Contract Costs 27784 299476 1375 8835 0 0 0 45227 463922 1375 8835 0 0 -- Insurance 3684 43713 Pmts In Lieu Of Tax 2675 31149 Misc Expenses 9089 26810 8230 80665 Collection Losses 0 0 Extraordinary Expenses 0 0 FSS Expense 2895 18616 4288 31504 Operating transfer 0 0 HAP Expense --307246 3203878 32905 274286 16450 186173 HAP Port in --11783 148971 -- Depreciation 24443 268877 -- 42786 389165 331547 3465018 32905 274286 158731 1458923 360583 3679911 32905 274286 17426 206645 0 45282 0 0 -80423 -173949 254 2596 0 0 -79167 -160608 -12993 -83433 1236 6667 2119 6465 762 11857 0 -327 0 0 ROSS General Expenses TOTAL RECEIPTS EXPENSES Administrative Total Admin Expenses ROSS (FSS) REVENUES Public Housing Voucher Stable Home KIP General Fund Total General Exp. TOTAL EXPENSES NET INCOME/LOSS Utilities Total Utilities Exp. Maintenance Expenses Total Maintenance Exp Non Operating Revenue St Louis Park Housing Authority Income Statement For the Period Ended 11/30/2023 BUDGET PROGRESS REPORT 24