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IV.8. Second Reading Ordinance Establishing Summit on 7 Housing Improvement Area; Needham CITY OF HOPKINS City Council Report 2025-071 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Revée Needham, Community Development Manager Date: May 6, 2025 Subject: Second Reading of Ordinance 2025-1226 Establishing Summit on 7 Housing Improvement Area _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Approve the Second Reading of Ordinance 2025-1226 Establishing Summit on 7 Housing Improvement Area. OVERVIEW Public Hearing and First Reading On April 15, 2025, the City Council held a public hearing and first reading of the ordinance. The Council heard one public comment in favor of the project. The Council voted 5-0 to approve the first reading of the ordinance with no recommended changes. There is a separate Council Report 2025-072 for the public hearing to set the fees for the Summit on 7 Housing Improvement Area. HIA Overview A Housing Improvement Area (HIA), authorized under the Minnesota Statutes Chapter 428A, allows cities to help arrange and finance rehabilitation for common areas of owner-occupied residential buildings, such as condominiums or townhouses. HIAs cannot be used for private area improvements that are the responsibility of individual owners. An HIA is a defined area where private housing improvements are made and where costs associated with the improvements are paid for by fees imposed on property owners. Within an HIA, the city has the authority to finance housing improvements through levying fees and assessments, and may issue bonds to pay for those improvements. The association submitted signed petitions March 10, 2025 from a majority of owners requesting the City Council schedule a public hearing to establish the HIA and impose fees. Per state statue, cities may only establish an HIA when 50% or more of the association owners petition the city to do so. The City set a higher 75% threshold in the HIA policy. Petitions were received from 75% of the owners at Summit on 7 and certified by staff. The establishment of the HIA is a request of the Summit on 7 condominium association and is not something the City has proposed to the residents. On March 18, 2025 the City Council accepted the petitions and called for the public hearing. Planning & Economic Development Background Timeline July 2024 Staff met with a representative from Summit on 7 inquiring about housing improvement areas Sept. 2024 City Council approved an updated HIA policy Jan. 2025 City Council held work session on HIAs Summit on 7 submitted initial application materials Mar. 2025 Summit on 7 submitted petitions from 75% of owners City Council accepted petitions and calls for public hearing Apr. 2025 Public hearing notices sent to owners Public hearing & first reading of HIA Ordinance May 2025 Future Second reading of HIA Ordinance Public hearing and resolution to set HIA fees 45-day veto period Prepayments accepted Construction begins City Council approves Development Agreement & sells bonds Ideally, an association reserves money from association dues to make needed improvements. In reality, associations often fail to reserve adequate funds due to a number of factors including limitations in annual dues increases set by the association bylaws, failure to complete an accurate needs assessment and/or lack of an adequate corresponding budget. A one-time assessment to pay for major improvements is also problematic in that the high cost of repairs often puts a project out of reach for most homeowners and an assessment is often unaffordable if not allowed to be financed over time. It can also be more difficult for a condominium under shared ownership to obtain private financing for improvements, due to insufficient collateral as common areas have no real value that can be liened as security. Failure to obtain financing for needed improvements can result in entire developments being restricted from obtaining new mortgage lending, greatly impacting current owners’ ability to sell and decreasing property values. HIAs are considered a financing of last resort. To apply for HIA financing, an association needs to demonstrate that they have exhausted other means of financing by submitting at least two denial letters from lenders. The association would need to have an accredited third party complete thirty-year plans to review their current reserves, assess future necessary improvements, and ensure the association is sufficiently on track to cover future expenses, avoiding the need for another HIA. HIA Policy Analysis An analysis of how the project meets the City’s HIA Policy is attached. Community Input and Engagement • No community members commented on this item as of the writing of this report. • One person spoke at the public hearing on April 15, 2025 in favor of the Summit on 7 HIA. Engagement Activities: o The City Council’s public hearing. o Mailed notice of the public hearing to property owners of Summit on 7. o Published notice of this public hearing in the City’s official paper. Association Information Summit on 7 is located at 1502 5th St N. The building was a hotel converted to condominiums in 2006, and the association is comprised of 62 condominium units. The condominiums are a mix of one-bedroom, two-bedroom, and three-bedroom units ranging in size from 770 sq. ft. to 1450 sq. ft. The median estimated market value is $227,550 and the range is $174,200 to $261,600. The Association bylaws limit the number of rental units to six units in total. Affordable Homeownership All units at Summit on 7, even with HIA fees, will be affordable to households at 80% Area Median Income (AMI) based on the affordable homeownership limit of $290,300 set by the Department of Housing and Urban Development. The creation of the Summit on 7 HIA will preserve affordable homeownership in Hopkins. Proposed Scope of Work Based on an initial engineering assessment by Encompass, the scope of work includes: roof replacement, façade/siding replacement, renovation of balconies, and replacement of all windows and doors. The construction costs include a contingency and if that contingency is not fully used, the Association may complete the following projects: replacement of common area carpeting, repainting of common areas, replacement of the driveway and parking lot pavement. Initial Cost Estimates Summit on 7 requests $4,260,000 in funding which includes approximately $3,714,312 in hard costs and $545,688 in soft costs and contingency. They received five bids for the improvements. Initial estimates for the cost of bond issuance would equate to $4,640,000 in total costs including funding for construction costs, bond issuance costs, and City administrative, legal, and financial costs. The requested loan term is 20 years. The loan would be repaid by a fee collected as part of the each condominium owner’s property tax payment. Hennepin County would receive the payments and pass through to the City. This is a low-risk way for the City to assist with bringing the property up to date to ensure many years of continued use for current and future owners. Preliminary estimates of the fees to be imposed on the housing units are based on the current interest rate, which is subject to change based on market conditions. Initial estimates, attached, range from an annual payment of $5,033 to $9,478 per unit. There will is a separate public hearing item (Council Report 2025-072) to set the fees. Financing The HIA would be funded using general obligation special assessment bonds. In order to decrease the cost burden for homeowners, the City will directly issue bonds and the Association will not utilize a temporary construction loan. HIA financing has been well-tested in the Twin Cities region and has not had a negative impact on the City’s bond rating or resulted in negative cash flow for bond payments. The City has previously created four HIAs and had no collection issues. HIA Fees are not included in the calculation of levies or limits on levies imposed under any law or charter. The City is protected from financial risk in several ways: • Repayment of the loan is made through the owner’s real estate tax payments. • In foreclosure events, tax liabilities, including special assessments, must be paid by any party that purchases the unit. In cases of foreclosure, HIA fees have been treated the same as special assessments. • There would be 105% debt coverage when the City issues bonds. • A development agreement is required which will provide additional contractual conditions to ensure the financial stability of the association. Next Steps Upon approval, the Ordinance will be published and mailed to the Commissioner of Revenue. There is a 45-day period where owners can object to the creation of the HIA. If less than 45% of owners file an objection, then the HIA would be established. The City will accept prepayments until June 20, 2025. Construction would begin and the City would approve a Development Agreement with the Association. The City will issue bonds to cover the construction costs. SUPPORTING INFORMATION • Ordinance 2025-1226 • HIA Policy Analysis of Summit on 7 Request • Initial Cost Estimates • Hyperlink to HIA Policy • Hyperlink to April 15, 2025 Council Session • Hyperlink to March 18, 2025 Council Session • Hyperlink to January 14, 2025 Council Work Session CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 2025-1226 AN ORDINANCE ESTABLISHING SUMMIT ON 7 HOUSING IMPROVEMENT AREA THE CITY OF HOPKINS ORDAINS: SECTION 1. Background. 1.01. The City of Hopkins, Minnesota (the “City”) is authorized under Minnesota Statutes, Sections 428A.11 through 428A.21, as amended (the “Act”), to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part from fees imposed within the area. 1.02. The City Council of the City (the “Council”) adopted a Housing Improvement Area Policy on September 18, 2024 (the “Policy”). 1.03. The City has determined a need to establish the Summit on 7 Housing Improvement Area (the “Area”) as further defined below, in order to facilitate certain improvements to property known as the “Summit on 7” all in accordance with the Policy. 1.04. The City has consulted with The Summit Condominium Association, Inc. a Minnesota nonprofit corporation (the “Association”), and with residents in the proposed Area regarding the establishment of the Area and the housing improvements to be constructed and financed under this ordinance. SECTION 2. Findings. 2.01. The Council finds that, in accordance with Section 428A.12 of the Act and the Policy, owners of at least seventy five percent (75%) of the housing units within the proposed Area have filed a petition with the City Clerk requesting a public hearing regarding establishment of such Area. 2.02. On April 15, 2025, the Council conducted a public hearing, duly noticed in accordance with Section 428A.13, subdivision 2 of the Act, regarding adoption of this ordinance, at which all persons, including owners of property within the proposed Area, were given an opportunity to be heard. 2.03. The Council finds that, without establishment of the Area, the Housing Improvements (as defined below) could not be made by the Association for, or by the housing unit owners in, the Summit on 7. 2.04. The Council further finds that designation of the Area is needed to maintain and preserve the housing units within such Area. 2.05. The City has provided full disclosure of public expenditures, loans, bonds, or other financing arrangements in connection with the Area, and has determined that the Association will contract for the Housing Improvements. 2.05. The City will be the implementing entity for the Area and the improvement fee pursuant to Section 427A.14. 2.07. The Council finds that the Area meets each of the approval criteria contained in the Policy, including the criterion that a majority of the Summit on 7 owners support the project and the Area financing. The Association presented evidence to the Council adequate to demonstrate that these criteria were met, including presentation to the Council of the petitions described in Section 2.01 above. SECTION 3. Housing Improvement Area Defined. 3.01. The Area is defined as the area of the City legally described in Exhibit A attached hereto. 3.02. The Area contains sixty two (62) housing units as of the date of adoption of this ordinance. SECTION 4. Housing Improvements Defined. 4.01. For the purposes of this ordinance and the Area, the term “Housing Improvements” means the following improvements to housing units and common areas within the Area: (a) roof replacement, (b) façade and siding replacement, (c) renovation of balconies, (d) replacement of windows, (e) replacement of doors, and (f) if all the contingency is not used, the following improvements may be completed: replacement of common area carpeting, repainting of common areas, replacement of the driveway and parking lot pavement. Any remaining unused contingency will be placed in the City designated fund for the Association/Area for use on future debt service for any bonds issued by the City in connection with the Housing Improvements. The estimated total cost is $4,640,000, including construction costs, administrative fees and costs, soft costs, costs of issuing bonds to finance the improvements, and capitalized interest. 4.02. Housing Improvements also include the following: (a) all costs of architectural services, engineering services and consultant services for establishing an Area in connection with the activities described in Section 4.01 hereof; (b) all administration, legal and consultant costs in connection with the Area, including without limitation all costs related to financing or issuance of bonds, if any. SECTION 5. Housing Improvement Fee. 5.01. The City may, by resolution adopted in accordance with the hearing and notice procedures required under Section 428A.14 of the Act, impose a fee (the “Housing Improvement Fee”) on the housing units within the Area, at a rate, term or amount sufficient to produce revenues required to provide the Housing Improvements, subject to the terms and conditions set forth in this Section. 5.02. The Housing Improvement Fee will be based on the square footage (percentage of common expense obligation) of each unit, which is consistent with Section 428A.14, subdivision 1 of the Act and with the “Common Interest Community No. 1422 (Condominium) The Summit Condominiums Restated Declaration.” 5.03. The Housing Improvement Fee will be imposed and payable for a period no greater than 20 years after the first installment is due and payable. 5.04. Housing unit owners will be permitted to prepay the Housing Improvement Fee in accordance with the terms specified in the resolution imposing the fee. 5.05. The Housing Improvement Fee will not exceed the amount specified in the notice of public hearing regarding the approval of such fee; provided, however, that the Housing Improvement Fee may be reduced after approval of the resolution setting the Housing Improvement Fee, in the manner specified in the resolution. 5.06. The Housing Improvement Fee shall be collected at the same time and in the same manner as provided for payment and collection of ad valorem taxes, in accordance with Section 428A.15 of the Act and Minnesota Statutes, Section 428A.05. As set forth in Section 428A.14, subdivision 2 of the Act, the Housing Improvement Fee is not included in the calculation of levies or limits on levies imposed under any law or charter. SECTION 6. Annual Reports. 6.01. By August 15, 2026, and by each August 15th thereafter until the Housing Improvement Fees have been paid in full and any bonds issued are no longer outstanding (or any later date specified in an agreement between the City and the Association), the Association (and any successor in interest) must submit to the City Clerk a copy of the Association's audited financial statements. 6.02. The Association (and any successor in interest) must also submit to the City any other reports or information at the times and as required by any contract entered into between that entity and the City. SECTION 7. Notice of Right to File Objections. 7.01. Within five days after the adoption of this ordinance, the City Clerk is directed to mail to the owner of each housing unit in the Area the following: a summary of this ordinance; notice that owners subject to the proposed Housing Improvement Fee have a right to veto this ordinance if owners of at least forty-five percent (45%) of the housing units within the Area file a written objection with the City Clerk before the effective date of this ordinance; and notice that a copy of this ordinance is on file with the City Clerk for public inspection. SECTION 8. Amendment. 8.01. This ordinance may be amended by the Council upon compliance with the public hearing and notice requirements set forth in Section 428A.13 of the Act. SECTION 9. Summary Publication. 9.01. In accordance with Section 3.03 of the City Charter and Minnesota Statutes, Section 412.191, the City Council determines the publication of the title and a summary of the Ordinance would clearly inform the public of its intent and effect, and so City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: ORDINANCE NO. 2025-1226 AN ORDINANCE ESTABLISHING SUMMIT ON 7 HOUSING IMPROVEMENT AREA On April 15, 2025, the Hopkins City Council adopted Ordinance 2025-1226. The purpose of the ordinance is to establish the Summit on 7 Housing Improvement Area. The ordinance defines the housing improvement area, housing improvements, and authority to impose a housing improvement fee. The ordinance also provides certain findings, outlines annual reporting requirements, and identifies the rights of owners within the housing improvement area. A printed copy of the ordinance is available for inspection during regular business hours at Hopkins City Hall and at the Hopkins Library and is available online at the City's website located at www.hopkinsmn.com. SECTION 10. Effective Date. 10.01. This ordinance is effective forty-five (45) days after adoption, or thirty (30) days after publication, whichever is later, subject to the veto rights of housing unit owners under Section 428A.18 of the Housing Improvement Act. First Reading: April 15, 2025 Second Reading: May 6, 2025 Date of Publication: May 15, 2025 Date Ordinance Takes Effect: June 20, 2025 By_____________________ Patrick Hanlon, Mayor ATTEST: _______________________ Amy Domeier, City Clerk EXHIBIT A Legal Description Original Underlying Description. The Original Declaration established Common Interest Community No. 1422, Hennepin County, Minnesota, under the name The Summit Condominiums. It is a condominium (and not a planned community or cooperative), and is not subject to a master association. The underlying real estate included within this CIC was legally described in the Original Declaration as follows: Lot 1, Block 1, Crossroads, Hennepin County, Minnesota. Present Description. The real estate included in this CIC is now legally described as follows: Units 200 through 205, inclusive, 207 through 213, inclusive; Units 300 through 305, inclusive, 307 through 313, inclusive; Units 401 through 405, inclusive, 407 through 413, inclusive; Units 500 through 505, inclusive, 508 through 513, inclusive; Units 600 through 605, inclusive; Units 700 through 705, inclusive, The Summit Condominiums, Common Interest Community No. 1422, Hennepin County, Minnesota. 1 Housing Improvement Area Policy Analysis for Summit on 7 HIA APPROVAL CRITERIA 4.01 In order to be eligible for HIA financing through the City, the association must submit a housing improvement project application along with all required fees as set by the Council and must follow the HIA review process set forth in this Policy. All HIA loans financed through the City of Hopkins must meet the following minimum approval criteria. A proposed housing improvement project that meets these criteria is not automatically approved. Meeting these criteria creates no contractual rights on the part of the City or any association. The Association submitted the HIA application and required fees. 4.02 The project must be in accordance with the Comprehensive Plan and Zoning Ordinances, or required changes to the Plan and Ordinances must be under active consideration by the City at the time of approval. The project is in accordance with the Comprehensive Plan and Zoning Ordinances. 4.03 The HIA financing shall be provided within applicable state legislative restrictions, debt limit guidelines, and other City financial requirements and policies. The HIA financing will meet applicable state legislative requirements, debt limit guidelines, and other City financial requirements and policies. 4.04 The project must meet one or more of the above adopted HIA Goals of the City of Hopkins as noted in Section 4. The project meets the following HIA goals: a) To promote neighborhood stabilization and revitalization, removing blight and/or upgrading the existing housing stock in a neighborhood. c) To maintain or obtain Federal Housing Authority (FHA) mortgage eligibility for a particular condominium or townhome association home within the designated HIA. d) To increase or prevent the loss of the tax base of the City to ensure the City has a long-term ability to provide adequate services for its residents. e) To preserve or increase valuation and provide for the long-term maintenance of the property. f) To preserve naturally occurring affordable housing. 4.05 The association shall designate an administrator to be the City’s point of contact throughout the process for HIA financing. Summit on 7 designated Doug Strandness as the administrator. 4.06 The term of the HIA should be the shortest term possible while still making the annual fee affordable to the association members. The term of the bonds or other debt incurred for the HIA should mature in 20 years or less. The City has the 2 sole discretion to determine the source(s) of financing, and sources other than issuing bonds may be used. The term of the HIA will be 20 years. 4.07 Service charges, including, but not limited to, construction/housing improvement project costs, cost of issuance of bonds and other pertinent costs association with the proposed housing improvement project, will be imposed on the association members in the same ratio as common elements or other such uniform method as proposed by the applicant. The service charges will be imposed on the association members based on the square footage of the unit (percentage of undivided ownership) as prescribed in Exhibit A to the Summit on 7 Condominium Declaration. 4.08 The association applying for the HIA must provide adequate financial guarantees to ensure the repayment of the Housing Improvement Area financing and the performance of the administrative requirements of the development agreement. Financial guarantees may include, but are not limited to, the pledge of the association's assets including reserves, operating funds and/or property. The financial guarantees will be outlined within the Development Agreement. 4.09 All taxes, fees, assessments, and charges for shared or common areas must be current. The taxes are current for the common areas. 4.10 The proposed housing improvement project, including the use of HIA financing, must be supported, in writing, by at least seventy-five percent (75%) of the association members. The association must include the results of a vote by a minimum of 75% of association members with its HIA application along with the petitions to create the area. The Association submitted petitions from 75% of association members. The City will waive the vote requirement, given the logistical issues with coordinating a meeting with all association members at one time. 4.11 The minimum housing improvement project cost for the issuance of bonds is $750,000. The project cost exceeds $750,000. 4.12 The association must have a replacement reserve study (the “Reserve Study”) prepared by an independent third party, with designation as a Community Associations Institute (CAI) certified reserve specialist. The Reserve Study must conform to CAI Reserve Study standards and Minnesota Statutes 515B.3-114 through 515B.3-1141. The components of the Reserve Study must include a thirty‐year replacement reserve plan (the “Reserve Plan”), and the Reserve Study and Reserve Plan must be submitted with the proposed housing improvement project application and will be reviewed by the City’s financial advisor. The association must also have an independent third party prepare a thirty‐year reserve plan (the “HIA Reserve Plan”) with the components of the 3 proposed project for housing improvements removed from the Reserve Plan. The independent third party must also prepare a thirty‐year financial plan (the “Financial Plan”) that reflects the annual replacement reserve contributions based on the HIA Reserve Plan. The Financial Plan will provide a plan for the association’s operating budget with cost increases over time to finance maintenance and operation of the common elements within the association and a long-range plan to conduct and finance capital improvements therein, that does not rely upon the subsequent use of the HIA tool. The HIA Reserve Plan and the Financial Plan must be submitted with the proposed housing improvement project application and will be reviewed by the City’s financial advisor. The Association has submitted their Reserve Study, Reserve Plan, and Financial Plan. The City’s Financial Advisor has reviewed the plans. The Association is currently updating their Reserve Study and will resubmit in September 2025, with any necessary changes reflected in the Reserve Plan and Financial Plan. 4.13 HIA financial assistance is last resort financing and will not be provided to proposed housing improvement projects that have the financial stability to proceed without the benefit of HIA financing. Evidence that the association has sought other financing for the project must be provided at the time of application and should include an explanation and verification that an assessment is not feasible, along with rejection letters from at least two private lenders or other evidence indicating a lack of financing options. The project could not proceed without HIA financing, as a financing of last resort. The Association submitted two rejection letters from two private lenders. 4.14 The average market value of units in the association should not exceed 80% of the Area Median Income as set by the U.S. Department of Housing and Urban Development. All units at Summit on 7, even with HIA fees, will be affordable to households at 80% Area Median Income (AMI) based on the affordable homeownership limit of $290,300 set by the Department of Housing and Urban Development. 4.15 The association shall obtain temporary construction financing from a private lender, and the City shall provide a take-out commitment to the lender, detailing the terms of payoff of the construction financing. Upon project approval and issuance of a certificate of completion, the City will issue bonds or notes to satisfy the temporary construction loan. The City will waive the temporary construction financing requirement in order to minimize the cost burden for homeowners. 4.16 The association must enter into a development agreement, prepared by the City, which may include, but is not limited to, the following terms: a) Establishment of a reserve fund b) Staffing requirements c) Annual reporting and financial auditing requirements, including regular 4 updates to the financial plan not less than once every five years d) Conditions of disbursement e) Limitations on prepayment of fees, if any f) Required dues increases g) Notification to all new owners of levied fees, including to individuals that purchase property after the initial project h) Requirement of multiple bids for proposed housing improvement project construction i) Assessments, including interest and City fees A development agreement will be approved by City Council after the 45-day veto period. 4.17 The improvements financed through the HIA should be exterior improvements and, in the case of a homeowner's association, the improvements should be restricted to Limited Common Elements defined within the association’s governing documents. The improvements must be of a permanent nature. The association must have a third party conduct a facility needs assessment to determine and prioritize the scope of improvements. The improvements are limited common elements including exterior elements. Encompass Engineering conducted an assessment to determine the scope of the improvements. 4.18 HIA financing should not be provided to projects that are not in the public interest, as determined by the Council, including: poor project quality; projects that do not comply with the Comprehensive Plan, zoning, or redevelopment plans, and City policies; projects that provide no significant improvement to the neighborhood and/or the City; and projects that do not provide a significant increase in the tax base and/or prevent the loss of tax base. The project is in the public interest, meeting the City’s policies and goals. 4.19 The financial structure of the project must receive a favorable review by the City's Finance Director and Financial Advisor. Legal components will be reviewed by the City’s legal counsel. If applicable, the review will include an analysis of performance and level of outstanding debt related to any previously approved HIAs. There is no outstanding debt related to other HIAs in the City. The City Attorney, Finance Director, and Financial Advisor have reviewed the financial structure and legal components of the project. 4.20 If bonds are to be issued, legal components will be reviewed by the City bond counsel. The Financial Advisor has reviewed initial estimates and will review the final bond issuance. 4.21All rental units within the HIA must be licensed according to City ordinance. 5 There are two rental licenses currently for units at Summit on 7. 4.22 The City will charge an administrative fee of 1% of the total project amount or $7,500, whichever is greater. The Association is responsible for all City out of pocket expenses, which can be financed with the project costs or paid from the escrow. Any unused portion of the escrow shall be refundable to the Association. The Association has paid the initial escrow to cover administrative fees and the initial bond cost estimates include administrative costs. The City will return any unused portion of the escrow. 4.23 The City reserves the right to deny funding for specific improvements if they are determined to not be in keeping with the intent of the policy. City of Hopkins Summit Housing Improvement Area Financing Summary - DRAFT March 20, 2025 SOURCES OF FUNDS Par Amount of Bonds $ 4,640,000 Prepaid Assessments $- Association Funds -$ TOTAL 4,640,000$ USES OF FUNDS HIA Project Budget - Hard Costs 3,714,312$ HIA Project Budget - Soft Costs 245,688$ Contingency 300,000$ Rebate of prepaids special assessments $- Total Project Costs 4,260,000$ Soft Costs (see detail below) $ 57,800 Underwriters Discount $ 55,680 Cost of Issuance $ 74,000 Capitalized Interest (Bond) $ 143,729 Rounding Amount $ 2,391 City Admin Fee (1%) $ 46,400 Total Soft and Loan Costs 380,000$ TOTAL 4,640,000$ Financing Information Term (years)20 All Inclusive Cost 5.20% All Inclusive Cost Plus 200 bps 7.20% Average Annual Debt Service $ 444,815 Required Coverage (105%) $ 467,055 Annual Dues Paid 467,055$ Average Annual Assessment - Per Unit $ 7,533 Average Assessment if Monthly - Per Unit $628 Average Total Assessment - Per Unit - If Prepaid $ 74,839 Project Soft Costs Detail (included in Bond Amount) City Legal Fees (estimate) $ 20,000 City Financial Advisor Fees (estimate) $ 15,000 Public Hearing/Legal Notice Fees $ 1,500 Ongoing Bond Consulting Expenses - To City (Con Disc, Pay Agent) - .05% of Bond Amount $ 21,300 TOTAL $ 57,800 Sources and Uses of Funds Amount #PID Building Unit No.Sq. Ft Percentage Interest Total Common Area Construction Cost Total Financing & Soft Costs Total Costs (BEFORE BOND SALE) Annual Fee (105% of Total Costs) Total P & I Paid Per Unit (105%) - Non prepaid only Rebate to Owners for Prepaid Assessments Total Annual Fee With $10 City Admin. Charge 1 2411722220078 1502 5th Str. N 200 770 1.0776% $45,905.81 $4,094.88 $50,000.70 $5,033 $100,660 $5,043 2 2411722220079 1502 5th Str. N 201 1,000 1.3995% $59,617.94 $5,318.03 $64,935.97 $6,536 $130,727 $6,546 3 2411722220080 1502 5th Str. N 202 1,086 1.5198% $64,745.08 $5,775.38 $70,520.47 $7,098 $141,970 $7,108 4 2411722220081 1502 5th Str. N 203 787 1.1014% $46,919.32 $4,185.29 $51,104.61 $5,144 $102,882 $5,154 5 2411722220082 1502 5th Str. N 204 1,105 1.5464% $65,877.83 $5,876.43 $71,754.25 $7,223 $144,453 $7,233 6 2411722220083 1502 5th Str. N 205 787 1.1014% $46,919.32 $4,185.29 $51,104.61 $5,144 $102,882 $5,154 7 2411722220084 1502 5th Str. N 207 826 1.1560% $49,244.42 $4,392.69 $53,637.11 $5,399 $107,981 $5,409 8 2411722220085 1502 5th Str. N 208 1,448 2.0265% $86,326.78 $7,700.51 $94,027.29 $9,465 $189,293 $9,475 9 2411722220086 1502 5th Str. N 209 1,445 2.0223% $86,147.93 $7,684.56 $93,832.48 $9,445 $188,901 $9,455 10 2411722220087 1502 5th Str. N 210 1,450 2.0292% $86,446.01 $7,711.15 $94,157.16 $9,478 $189,554 $9,488 11 2411722220088 1502 5th Str. N 211 1,450 2.0292% $86,446.01 $7,711.15 $94,157.16 $9,478 $189,554 $9,488 12 2411722220089 1502 5th Str. N 212 1,298 1.8165% $77,384.09 $6,902.81 $84,286.89 $8,484 $169,684 $8,494 13 2411722220090 1502 5th Str. N 213 1,012 1.4163% $60,333.36 $5,381.85 $65,715.21 $6,615 $132,296 $6,625 14 2411722220091 1502 5th Str. N 300 770 1.0776% $45,905.81 $4,094.88 $50,000.70 $5,033 $100,660 $5,043 15 2411722220092 1502 5th Str. N 301 1,000 1.3995% $59,617.94 $5,318.03 $64,935.97 $6,536 $130,727 $6,546 16 2411722220093 1502 5th Str. N 302 1,086 1.5198% $64,745.08 $5,775.38 $70,520.47 $7,098 $141,970 $7,108 17 2411722220094 1502 5th Str. N 303 787 1.1014% $46,919.32 $4,185.29 $51,104.61 $5,144 $102,882 $5,154 18 2411722220095 1502 5th Str. N 304 1,105 1.5464% $65,877.83 $5,876.43 $71,754.25 $7,223 $144,453 $7,233 19 2411722220096 1502 5th Str. N 305 787 1.1014% $46,919.32 $4,185.29 $51,104.61 $5,144 $102,882 $5,154 20 2411722220097 1502 5th Str. N 307 1,030 1.4415% $61,406.48 $5,477.57 $66,884.05 $6,732 $134,649 $6,742 21 2411722220098 1502 5th Str. N 308 1,448 2.0265% $86,326.78 $7,700.51 $94,027.29 $9,465 $189,293 $9,475 22 2411722220099 1502 5th Str. N 309 1,445 2.0223% $86,147.93 $7,684.56 $93,832.48 $9,445 $188,901 $9,455 23 2411722220100 1502 5th Str. N 310 1,450 2.0292% $86,446.01 $7,711.15 $94,157.16 $9,478 $189,554 $9,488 24 2411722220101 1502 5th Str. N 311 1,450 2.0292% $86,446.01 $7,711.15 $94,157.16 $9,478 $189,554 $9,488 25 2411722220102 1502 5th Str. N 312 1,298 1.8165% $77,384.09 $6,902.81 $84,286.89 $8,484 $169,684 $8,494 26 2411722220103 1502 5th Str. N 313 1,195 1.6724% $71,243.44 $6,355.05 $77,598.49 $7,811 $156,219 $7,821 27 2411722220104 1502 5th Str. N 401 1,000 1.3995% $59,617.94 $5,318.03 $64,935.97 $6,536 $130,727 $6,546 28 2411722220105 1502 5th Str. N 402 1,086 1.5198% $64,745.08 $5,775.38 $70,520.47 $7,098 $141,970 $7,108 29 2411722220106 1502 5th Str. N 403 787 1.1014% $46,919.32 $4,185.29 $51,104.61 $5,144 $102,882 $5,154 30 2411722220107 1502 5th Str. N 404 1,105 1.5464% $65,877.83 $5,876.43 $71,754.25 $7,223 $144,453 $7,233 31 2411722220108 1502 5th Str. N 405 787 1.1014% $46,919.32 $4,185.29 $51,104.61 $5,144 $102,882 $5,154 32 2411722220109 1502 5th Str. N 407 1,030 1.4415% $61,406.48 $5,477.57 $66,884.05 $6,732 $134,649 $6,742 33 2411722220110 1502 5th Str. N 408 1,448 2.0265% $86,326.78 $7,700.51 $94,027.29 $9,465 $189,293 $9,475 34 2411722220111 1502 5th Str. N 409 1,445 2.0223% $86,147.93 $7,684.56 $93,832.48 $9,445 $188,901 $9,455 35 2411722220112 1502 5th Str. N 410 1,450 2.0292% $86,446.01 $7,711.15 $94,157.16 $9,478 $189,554 $9,488 36 2411722220113 1502 5th Str. N 411 1,450 2.0292% $86,446.01 $7,711.15 $94,157.16 $9,478 $189,554 $9,488 37 2411722220114 1502 5th Str. N 412 1,298 1.8165% $77,384.09 $6,902.81 $84,286.89 $8,484 $169,684 $8,494 38 2411722220115 1502 5th Str. N 413 1,195 1.6724% $71,243.44 $6,355.05 $77,598.49 $7,811 $156,219 $7,821 39 2411722220116 1502 5th Str. N 500 798 1.1168% $47,575.12 $4,243.79 $51,818.91 $5,216 $104,320 $5,226 40 2411722220117 1502 5th Str. N 501 1,187 1.6612% $70,766.50 $6,312.50 $77,079.00 $7,759 $155,173 $7,769 41 2411722220118 1502 5th Str. N 502 1,086 1.5198% $64,745.08 $5,775.38 $70,520.47 $7,098 $141,970 $7,108 42 2411722220119 1502 5th Str. N 503 1,160 1.6234% $69,156.81 $6,168.92 $75,325.73 $7,582 $151,643 $7,592 43 2411722220120 1502 5th Str. N 504 1,105 1.5464% $65,877.83 $5,876.43 $71,754.25 $7,223 $144,453 $7,233 44 2411722220121 1502 5th Str. N 505 1,255 1.7564% $74,820.52 $6,674.13 $81,494.65 $8,203 $164,063 $8,213 45 2411722220122 1502 5th Str. N 508 1,448 2.0265% $86,326.78 $7,700.51 $94,027.29 $9,465 $189,293 $9,475 46 2411722220123 1502 5th Str. N 509 1,445 2.0223% $86,147.93 $7,684.56 $93,832.48 $9,445 $188,901 $9,455 47 2411722220124 1502 5th Str. N 510 1,450 2.0292% $86,446.01 $7,711.15 $94,157.16 $9,478 $189,554 $9,488 48 2411722220125 1502 5th Str. N 511 1,450 2.0292% $86,446.01 $7,711.15 $94,157.16 $9,478 $189,554 $9,488 49 2411722220126 1502 5th Str. N 512 1,298 1.8165% $77,384.09 $6,902.81 $84,286.89 $8,484 $169,684 $8,494 50 2411722220127 1502 5th Str. N 513 1,195 1.6724% $71,243.44 $6,355.05 $77,598.49 $7,811 $156,219 $7,821 51 2411722220128 1502 5th Str. N 600 798 1.1168% $47,575.12 $4,243.79 $51,818.91 $5,216 $104,320 $5,226 52 2411722220129 1502 5th Str. N 601 1,187 1.6612% $70,766.50 $6,312.50 $77,079.00 $7,759 $155,173 $7,769 53 2411722220130 1502 5th Str. N 602 1,086 1.5198% $64,745.08 $5,775.38 $70,520.47 $7,098 $141,970 $7,108 54 2411722220131 1502 5th Str. N 603 1,160 1.6234% $69,156.81 $6,168.92 $75,325.73 $7,582 $151,643 $7,592 55 2411722220132 1502 5th Str. N 604 1,105 1.5464% $65,877.83 $5,876.43 $71,754.25 $7,223 $144,453 $7,233 56 2411722220133 1502 5th Str. N 605 1,255 1.7564% $74,820.52 $6,674.13 $81,494.65 $8,203 $164,063 $8,213 57 2411722220134 1502 5th Str. N 700 798 1.1168% $47,575.12 $4,243.79 $51,818.91 $5,216 $104,320 $5,226 58 2411722220135 1502 5th Str. N 701 1,187 1.6612% $70,766.50 $6,312.50 $77,079.00 $7,759 $155,173 $7,769 59 2411722220136 1502 5th Str. N 702 1,086 1.5198% $64,745.08 $5,775.38 $70,520.47 $7,098 $141,970 $7,108 60 2411722220137 1502 5th Str. N 703 1,160 1.6234% $69,156.81 $6,168.92 $75,325.73 $7,582 $151,643 $7,592 61 2411722220138 1502 5th Str. N 704 1,105 1.5464% $65,877.83 $5,876.43 $71,754.25 $7,223 $144,453 $7,233 62 2411722220139 1502 5th Str. N 705 1,255 1.7564% $74,820.52 $6,674.13 $81,494.65 $8,203 $164,063 $8,213 TOTAL 71,455 100% $4,260,000 $380,000 $4,640,000 $467,055.32 $9,341,106.49 $0.00 $467,675.32 Summit HIA Assessment Allocation - March 2025 City of Hopkins Page 2 of 2