IV. 2. 5 Year Capital Fund Plan and Annual Plan (HRA2023-03)
CITY OF HOPKINS
HRA Board Report 2023-03
To: Honorable Board Chair and Members
Mike Mornson, City Manager
From: Muse Mohamed, Executive Director
Date: March 21, 2023
Subject: 5 Year Capital Fund Plan and Annual Plan
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO adopt Resolution 551 to approve Capital Funding Resolution for the period
ending 03/31/2024.
OVERVIEW
Each year, Hopkins HRA is required by the Department of Housing and Urban
Development (HUD) to develop and approve a capital fund plan for HRA owned
building Dow Towers. For FYE 2024, we will receive capital funding from HUD to assist
in the general modernization and maintenance of Dow Towers. Congress annually
determines the funding for the public housing programs. At this time, we anticipate we
will receive $123,158.00 from HUD. HUD requires the submission of the resolution to
enable the HRA to accept the funding.
SUPPORTING INFORMATION
• HUD Form 50075 and 52840-A
• Resolution 551
Alternatives:
The HRA has the following alternatives regarding this issue:
1. Approve the action as recommended by staff.
2. Continue for further information
HOUSING AND
REDEVELOPMENT
AUTHORITY
OMB Approval No. 2577-0075
(exp. 08/31/2023)
Capital Fund Program
(CFP) Amendment
Annual Contributions Contract
Terms and Conditions (HUD-52840-A)
Whereas, (Public Housing Authority)(herein called the “PHA”)
and the United States of America, Secretary of Housing and Urban Development (herein called “HUD”) entered into an Annual Contributions Contract
ACC(s) Numbers(s) (On File) dated (On File)
Whereas, in accordance with Public Law 117-328, Division L, Title II,
$ $122,829.00 for Fiscal Year 2023 to be referred to under the Capital Fund Grant NumberMN46P07850123
PHA Tax Identification Number (TIN): On File UEI Number: On File
Whereas, HUD and the PHA are entering into the CFP Amendment Number __________On File______________________________________
Now Therefore, the ACC is amended as follows:
(mark one) : Yes No
U.S. Dept of HUD PHA (Executive Director or authorized agent)
By /s/By Date:
Marianne Nazzaro
Title: Deputy Assistant Secretary Title
Office Public Housing Investments
Previous versions obsolete form HUD-52840-A OMB Approval No.2577-0075 (exp. 08/31/2023)
Date: 02/17/2023
U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing
HRA OF HOPKINS, MINNESOTA MN078
The parties have executed this CFP Amendment, and it will be effective on the date HUD signs below.
9. Implementation or use of funding assistance provided under this CFP Amendment is subject to
the attached corrective action order(s).
10. The PHA is required to report in the format and frequency established by HUD on all open
Capital Fund grants awarded, including information on the installation of energy conservation
measures.
12. CFP assistance provided as an Emergency grant or a Safety and Security grant shall be
subject to a 12 month obligation and 24 month expenditure timeperiod. CFP assistance provided
as a Natural Disaster grant shall be subject to a 24 month obligation and 48 month expenditure
time period. The start date shall bethe date on which such funding becomes available to the PHA
for obligation. The PHA must have a recorded and effective Declaration(s) of Trust on all property
funded with Capital Fund grants (all types) or HUD will exercise all available remedies including
recapture of grant funding.
Whereas, HUD has agreed to provide CFP assistance, upon execution of this Amendment, to the PHA in the amount to be specified below for the purpose of assisting the PHA in
carrying out capital and management activities at existing public housing projects in order to ensure that such projects continue to be available to serve low-income families. HUD
reserves the right to provide additional CFP assistance in this FY to the PHA. When HUD provides additional amounts, it will notify the PHA and those amended grants will be subject to
these terms and conditions.
7. The PHA shall continue to operate each public housing project as low-income housing in
compliance with the ACC(s), as amended, the Act and all HUD regulations for a period of twenty
years after the last disbursement of CFP assistance for modernization activities for each public
housing project or portion thereof and for a period of forty years after the last distribution of CFP
assistance for development activities for each public housing project and for a period of ten years
following the last payment of assistance from the Operating Fund to each public housing project.
Provided further that, no disposition of any project covered by this amendment shall occur unless
approved by HUD.
4. For cases where HUD has approved a Capital Fund Financing Amendment to the ACC, HUD
will deduct the payment for amortization scheduled payments from the grant immediately on the
effective date of this CFP Amendment. The payment of CFP funds due per the amortization
scheduled will be made directly to a designated trustee within 3 days of the due date.
6. Subject to the provisions of the ACC(s) and paragraph 3, and to assist in capital and
management activities, HUD agrees to disburse to the PHA or the designated trustee from time
to time as needed up to the amount of the funding assistance specified herein.
8. The PHA will accept all CFP assistance provided for this FY. If the PHA does not comply with
any of its obligations under this CFP Amendment and does not have its Annual PHA Plan
approved within the period specified by HUD, HUD shall impose such penalties or take such
remedial action as provided by law.HUD may direct the PHA to terminate all work described in
the Capital Fund Annual Statement of the Annual PHA Plan. In such case, the PHA shall only
incur additional costs with HUD approval.
2. The PHA must carry out all capital and management activities in accordance with the United
States Housing Act of 1937 (the Act), 24 CFR Part 905 (the Capital Fund Final rule) as well as
other applicable HUD requirements, except that the limitation in section 9(g)(1) of the Act is
increased such that of the amount of CFP assistance provided for under this CFP amendment
only, the PHA may use no more than 25 percent for activities that are eligible under section 9(e)
of the Act only if the PHA’s HUD-approved Five Year Action Plan provides for such use;
however, if the PHA owns or operates lessthan 250 public housing dwelling units, such PHA
may continue to use the fullflexibility in accordance with section 9(g)(2) of the Act.
11. If CFP assistance is provided for activities authorized pursuant to agreements between HUD
and the PHA under the Rental Assistance Demonstration Program,the PHA shall follow such
applicable statutory authorities and all applicable HUD regulations and requirements. For total
conversion of public housing projects, no disposition or conversion of any public housing project
covered by these terms and conditions shall occur unless approved by HUD. For partial
conversion, the PHA shall continue to operate each non-converted public housing project as low-
incomehousing in accordance with paragraph 7.
5. Unless otherwise provided, the 24 month time period in which the PHA must obligate this
CFP assistance pursuant to section 9(j)(1) of the Act and 48 month time period in which the
PHA must expend this CFP assistance pursuant to section 9(j)(5) of the Act starts with the
effective date of this CFP amendment (the date on which CFP assistance becomes available to
the PHAfor obligation). Any additional CFP assistance this FY will start with the same effective
date.
3. The PHA has a HUD-approved Capital Fund Five Year Action Plan and has complied with
the requirements for reporting on open grants through the Performance and Evaluation Report.
The PHA must comply with 24 CFR 905.300 of the Capital Fund Final rule regarding
amendment of the Five Year Action Plan where the PHA proposes a Significant Amendment to
the Capital Fund Five Year Action Plan.
2023 Capital Fund
The information collection requirements contained in this document have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) and assigned OMB control number 2577-0075. There is no personal information contained in this application. Information on activities and expenditures of grant
funds is public information and is generally available for disclosure. Recipients are responsible for ensuring confidentiality when disclosure is not required. In accordance with the
Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB
control number.
1. The ACC(s) is (are) amended to provide CFP assistance in the amount specified above for
capital and management activities of PHA projects. This CFP Amendment is a part of the ACC.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION No. 551
RESOLUTION AUTHORIZING ACCEPTANCE AND USE OF
2023 CAPITAL FUNDS
WHEREAS, the Housing and Redevelopment Authority In and For the City
of Hopkins, Minnesota, (the “Authority”) operates a Low Rent Public Housing
Program; and,
WHEREAS, the Authority and the Department of Housing and Urban
Development will enter into a Capital Fund ACC Amendment for Fiscal Year
2023 for the purpose of carrying out capital activities at Dow Towers.
NOW, THEREFORE, BE IT RESOLVED that the Authority Board of
Commissioners hereby authorizes the Authority to accept an estimated amount
of $122,829.00 in Capital Fund Program funding and authorizes the use of such
funds.
Adopted this 21st day of March, 2023
_____________________________________
Patrick Hanlon HRA Board Chair
ATTEST:
_________________________________________
Muse Mohamed, Executive Director