HRAJUNE
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I. CALL TO ORDER
II. NEW BUSINESS
JULY
S M T W T F S
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HOPKINS HRA SPECIAL MEETING
June 19, 2012
7:20 p.m.
MAXWELL
CUMMINGS
GADD
HALVERSON
YOUAKIM
MORNSON
ELVERUM
ITEM 2012-09 Adoption of resolution regarding the Dow
Towers elevator loan from MHFA
Recommendation: adopt Resolution 488
Board Action:
ITEM 2012-10 Approve operating reserves litigation
Recommendation
Board Action:
III. ADJOURNMENT
Board Action:
adopt Resolution 489
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City of Hopkins
June 13, 2012
Public Housing Operating Budget
Proposed Action
HRA Report 2012-09
Staff recommends adoption of the following motion: adopt Resolution 488, approving
the MHFA Loan in the amount of $200,000 for the Elevator work at Dow Towers.
With approval of this motion, staff and the HRA legal representative will move forward
with the final steps in the End -Loan closing for the Elevator work at Dow Towers
partially funded by the Minnesota Housing Finance Agency and their Publicly Owned
Housing Program.
Overview
In 2009, the HRA applied for special funding made available by MHFA for public
housing capital projects. In 2010, we received confirmation that they would assist us in
the modernization of the two elevators at Dow Towers. We opted to pursue the End -
Loan funding for this project. Over the past months we have been working to complete
the numerous requirements prior to the loan closing. The HRA legal representative has
worked closely with staff to ensure that we are aware and able to agree to the terms of
this funding source. The loan is a twenty-year, forgivable loan. Several Minnesota
HRAs have already completed this process, and the documents have been reviewed
and approved by both the local and Washington, D.C., HUD offices. We are required to
pass a resolution within 90 days of the loan closing for this project.
Supporting Information
• HRA Resolution 488
• Jason Hutchison, City attorney, will be at the HRA meeting if you have further
questions regarding the terms or related MHFA documents
Alternatives
The HRA has the following alternatives regarding this issue:
1. Approve the action as recommended by staff.
2. Continue for further information.
Stacy Unowsky, Public Housing Manager
CERTIFIED COPY OF RESOLUTIONS ADOPTED BY THE
MEMBERS OF
I HEREBY CERTIFY that I am the duly elected Secretary and keeper of the records of
Housing and Redevelopment Authority In and For Hopkins, a public body corporate and politic (the
"HRA"), that the attached resolution is a true and correct copy of the resolution duly and
unanimously adopted by all of the members of the HRA on , 2012, all of the
members being present and constituting a quorum for the transaction of business; further, that such
meeting was called in compliance with all applicable laws and the by-law requirements of the HRA;
that the attached resolution does not conflict with any by-law of the HRA nor has the resolution
been in any way altered, amended or repealed and is in full force and effect, unrevoked and
unrescinded as of this day, and has been entered upon the regular Minute Book of the HRA, as of
the aforementioned date, and that the members of the HRA have, and at the time of adoption of the
attached resolution, had, full power and lawful authority to adopt such resolution and to confer the
powers thereby granted to the officer therein named who has full power and lawful authority to
exercise the same:
ATTEST:
Dated:
(Seal)
2012.
Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF HOPKINS
RESOLUTION NO. 488
RESOLUTION APPROVING $200,000.00 END -LOAN FROM MINNESOTA HOUSING
FINANCE AGENCY.
WHEREAS there has been presented to this meeting of the members of the Housing and
Redevelopment Authority In and For the City of Hopkins (HRA) a proposal for the HRA to borrow
from the Minnesota Housing Finance Agency, a public body corporate and politic of the State of
Minnesota, 400 Sibley Street, Suite 300, St. Paul, MN 55101-1998 (the "Agency") a sum not to
exceed Two Hundred Thousand Dollars ($200,000.00) to finance rehabilitation of a housing
development known as Dow Towers which borrowing shall be evidenced by the Deferred Loan
Repayment Agreement and Mortgage (the "Repayment Agreement") covering the real property
owned by the HRA and located at 22 Fifth Avenue South, in the City of Hopkins, County of
Hennepin, Minnesota, and more fully described in Exhibit A attached hereto and made a part hereof
(the "Property");
WHEREAS the proposed form of Repayment Agreement, Loan Commitment, UCC
Financing Statement, General Obligation Bonds Declaration, and Declaration of Covenants,
Conditions, and Restrictions (the "Agency Documents");
WHEREAS the proposed forms of the Agency Documents have been presented to the
members of this HRA;
WHEREAS the HRA has had the opportunity to review the Repayment Agreement and
Agency Documents;
NOW, THEREFORE, BE IT RESOLVED by the members of the HRA, that the HRA is
hereby authorized to borrow the funds referred to hereinabove from the Agency; and
BE IT FURTHER RESOLVED, that Stacy Unowsky is hereby authorized and directed on
behalf of the HRA at any time and from time to time hereafter and without further action by or
authority or direction from the members of the HRA, to execute and deliver or cause to be executed
and delivered those documents referred to above, and all such other further agreements,
assignments, statements, instruments, certificates and documents and to do or cause to be done all
such other and further acts and things as she may determine to be necessary or advisable under or in
connection with such borrowing, and that the execution by her of any such agreement, assignment,
statement, instrument, certificate or document, or the doing of any such act or thing, shall be
conclusive evidence of their determination in that respect, including, but not limited to, the
execution of any and all agreements with the Agency for the extension of the time of payment for
the aforesaid loan or any part thereof; and
BE IT FURTHER RESOLVED, that the Agency is hereby authorized to rely on the
continuing force and effect of this Resolution, until receipt by the Commissioner of the Agency at
its principal office of notice in writing from the HRA of any amendments or alterations thereof.
Adopted this day of June 2012.
Eugene Maxwell, HRA Chairman
ATTEST:
Mike Morrison, Executive Director
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City of Hopkins
June 13, 2012 HRA Report 2012-10
Public Housing Operating Offset Litigation
Proposed Action
Staff recommends adoption of the following motion: adopt Resolution 489, approving
the support of the Operating Offset Litigation.
With approval of this motion, staff will submit $2,000 in support of the litigation related to
the elimination of our Operating Subsidy for 2012 and to discourage offsets from being
imposed in the future.
Overview
Each year the HRA is required by the Department of Housing and Urban Development
(HUD) to complete paperwork related to our financial situation and expected operating
expenses for the upcoming year. HUD currently distributes Operating Subsidy based on
the calendar year rather than the HRA fiscal year. This year Congress authorized HUD
to take into account the operating reserves at each HRA and they determined that the
Hopkins HRA had excess reserves according to their new formula. This decision was
made in March 2012 and was effective for the entire calendar year. The new regulations
indicate any balance over the anticipated expenses for a typical six month- period is
excessive. As a result, rather than receiving approximately $135,000 for 2012, we
received $0. Joining this effort may possibly result in money damages and perhaps rule
making that would prevent offsets from being imposed in the future. As a small HRA,
we would be submitting $2,000 in support of the efforts by two national organizations
that we are currently members of --the National Association of Housing and
Redevelopment Officials (NAHRO) and the Public Housing Authority Directors
Association (PHADA).
Supporting Information
• HRA Resolution 489
Alternatives
The HRA has the following alternatives regarding this issue:
1. Approve the action as recommended by staff.
2. Continue for further information.
Stacy Unowsky, Executive Director
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 489
RESOLUTION AUTHORIZING SUPPORT OF
OPERATING OFFSET LITIGATION.
WHEREAS, the Housing and Redevelopment Authority In and For the City of Hopkins,
Minnesota, (the "Authority") operates a Low Rent Public Housing Program;
WHEREAS, the Authority, will not receive an operating subsidy for 2012 from the
Department of Housing and Urban Development as a result of the Congressional authorization to
offset the HRA based on our existing operating reserves; and
WHEREAS, the Authority, would like to support efforts by the National Association of
Housing and Redevelopment Officials and Pubic Housing Authority Directors Association to
pursue possible damages and discourage such offsets from being imposed in the future.
NOW, THEREFORE, BE IT RESOLVED, that the Authority Board of
Commissioners hereby authorizes the Authority to submit $2,000 to support the Operating
Reserve Offset Litigation efforts.
Adopted this 19th day of June 2012.
Chair
ATTEST:
Executive Director