I am presented an HRA update at the December 12 to the City Council. The report and PPT is attached for your information.

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1 January 10, 2017 Red Wing Housing & Redevelopment Authority 428 West Fifth Street, Red Wing, MN Telephone (651) FAX (651) TDD/TTY To: Board of Commissioners From: Randal Hemmerlin, Executive Director Re: Executive Director's Report HRA Activities Minnesota Community Participation Program The application and agreement as approved by the Board in December was sent to MHFA on January 3. Executive Director Activities I am presented an HRA update at the December 12 to the City Council. The report and PPT is attached for your information. I attended the City Council Inauguration meeting on January 3, I attended a Minnesota NAHRO Board meeting on December 16 in Bloomington. I am working with Dean Travis Thul of the Minnesota State College Southeast to develop a Facilities Engineering certificate course for training maintenance staff. We anticipate this course could actually go statewide in the MnSCU system. This will allow entry and mid-career students to take courses regarding the maintenance of apartment buildings. HRAs across the state may be asked to participate with internships, scholarships, training funds, and promotion of the course. This was brought up at the last Minnesota NAHRO Board meeting and met with great enthusiasm. We continue working on the HOPE Coalition lease with the Hill Street Property. EQUAL OPPORTUNITY HOUSING / EQUAL OPPORTUNITY EMPLOYMENT

2 Red Wing Housing & Redevelopment Authority 428 West Fifth Street, Red Wing, MN Telephone (651) FAX (651) TDD/TTY To: Red Wing City Council From: Randal Hemmerlin, Executive Director Re: HRA Update-Report XX Jordan Tower l/familv Units The HRA was recently recognized as an HRA who went smoke-free in their housing units by Tom Wolff, Goodhue County Health and Human Services. The name of the report is "Successful Smoke-Free Policies In Minnesota Public Housing Case Study: Red Wing Housing and Redeveiopment Authority." The study was distributed state-wide. Jordan Tower II We are expecting to close on our two Minnesota Housing Finance Agency loans after the first of the year. This will allow us to begin construction sometime in Spring of The two loans are about 3.73 million dollars with the total project at about $3.9 million. The rehab project includes windows, roof, sealant, concrete work and other items. Both parking lots (Jordan Towers I and II) will be construction staging areas. The HRA will be requesting lots/space in the Downtown Plaza parking ramp for tenants to park their vehicles during the construction period. Section 8 Voucher Program Our waiting list is now open. We are taking only electronic applications. We have 153 vouchers issued as of October 31, 2016 with 12 participants shopping for housing. We have $31,000 in HUD held reserves, about $20,000 less than my last report in September. Our goal is to expend all the HUD held reserves for vouchers or administrative costs within 12 months. Average monthly assistance is $431 per month. We are receiving about $63,000 per month in HCV funding, but spending just under $66,000. The HUD held reserves pick up the difference. The HRA is allotted 169 vouchers but we can only issue what our monetary allocation allows. Bridges Our Bridges program Is currently at 10 vouchers. However, Minnesota Housing is authorizing us to go up to 12 units. We are exploring if we should or can use the Bridges program In Goodhue County outside of Red Wing. This requires a Joint Powers Agreement with SEMMCHRA. Bridges is a rental assistance voucher program from Minnesota Housing that assist people with mental illness. We were awarded $96,000 for ten units in December, Shelter + Care Vouchers We have seven vouchers of the Shelter + Care program issued and used. Our allocation is technically 6 units but we are able to use up funds in the grants if the funding is available for additional vouchers. Redevelopment CommonBond LIHTC Proposal CommonBond was not funded by Minnesota Housing. We have contacted CommonBond to find out what their next move will be regarding this application and not heard back from them yet. EQUAL OPPORTUNITY HOUSING / EQUAL OPPORTUNITY EMPLOYMENT

3 2017 Small Cities Development Program (SCDP) Activity # of Units SCDP Cost per Unit Rental Housing Muiti family Owner Occupied- Single Family Owner Oooupied- SF: Admin Total SCDP Total Leveraged Sources Source of Leveraged Funds-use "c" after source if committed Total Costs 48 $7, $350,000 $2,227,044 MHFAc $2,577,044 7 $18,000 $126,000 $42,000 HRAc $168,000 7 $2,700 $18,900 $ $18,900 Commercial 8 $40,000 $320,000 $80,000 HRAc $400,000 Commercial-Admin 8 $6,000 $48,000 $- $48,000 Totals $ $862,900 $2,349,044 $3,211,944 *Note: The HRA received a request for Rental Rehab Loan through the Small Cities Development Program from Southwest Minnesota Housing Partnership (SWMHP). The HRA and City will act as a conduit for the loan to SWMHP. Solar Garden Subscription The HRA is processing our subscription into the Solar Rewards Community Project from innovative Power Systems Solar Garden. We anticipate saving up to $1.2 million over 25 years in energy costs. The subscription is at HUD for their approval before we can move forward. Small Cities Development Loan Program. RED WING HRA SCDP REHAB PROJEaS STATUS REPORT December 5,2016 HOUSING PROJECTS; (Goal is 10) 1. RWH Project has been cancelled. 2. RWH Project is completed. 3. RWH Project is completed. 4. RWH Project is completed. 5. RWH Project is completed. 6. RWH Project has been cancelled. 7. RWH Project is completed. 8. RWH Project is completed. 9. RWH Project has been cancelled. 10. RWH Project is completed. 11. RWH Project is completed. (Have 8 housing projects-transferred additional funds to commercial) COMMERCIAL PROJECTS; (Goal is 12) 1. RW's Bierstube - Project is completed & closed out. 2. Subway - Project is completed & closed out. 3. Principal Investments-Cancelled. 4. Sevlie Chiropractic - Project is completed & closed out. 5. S & S Accounting-Cancelled. 6. Johnson Tire - Project is completed & closed out. 7. E-Z Own Sales - Project is completed & closed out. 8. Rodeway inn - Project is completed & closed out. 9. Bayslde Tap & Steakhouse - Project is completed & closed out.

4 Red Wing Housing & Redevelopment Authority 428 West Fifth Street, Red Wing, MN Telephone (651) FAX (651) TDD/TTY Larry Peterson - Larry's Jugs - Project is substantially completed. 11. Pottery Museum - Project is completed & closed out. 12. Red Wing Senior Center - Project is completed & closed out. 13. Idea Post - Project is completed & closed out. 14. Kelly's Tap House - Project is in construction 15. Pottery Place Mall - Philippe Petit - Project is substantially completed. 16. Plaas Incorporated - Project is completed & closed out. (Have 14 commercial projects) PROGRAM INCOIVIE PROJECTS: 1. Joe Dube "Randy's" (commercial) - Project is completed. 2. Daniel Smith (housing) - Project is completed. 3. Brad Hanson - (housing) Project is completed. 4. Regan Kilbride - (housing) Project is in construction 5. Backwoods Framing - Loan approved pending SHPO approval 6. Masonic Lodge - Loan approved pending SHPO approval Applications Pending: Old West Main Liquor Michelle Vrieze, CEDA, Director of Grants Use of SCDP funds and Balance Remaining (1' ) SCDP Activity Owner- Occupied Rehab Commercial Rehab APPROVED BUDGET AVAILABLE BALANCE $195,650 $3,092 $398,424 $37,892 General Administration $89,110 $18,426 Total Swift Activity $683,184 $59,410 Small Cities Program Income Funds Notes Receivable and Cash Reserves: Category Gregory As of July, 2016 As of dctobe>, 2016 t Notes Receivable: $1,650,079 Notes Receivable: $1,692,3211 Forgivable Portion $818,362 Forgivable Portion $830,0541 v Cash Reserves: $163,848 Cash Reserves: $234,9241 Communitv Development Grant Program The Board of Commissioners allocated $40,000 Community Development Grant for Grant Downtown Main Street $20,000 First Lutheran Church $ 5,000 Red Wing Ignite $ 8,000 Red Wing Marine Museum $ 7,000 TOTAL $40,000 EQUAL OPPORTUNITY HOUSING / EQUAL OPPORTUNITY EMPLOYMENT

5 Affordable Housing Trust Fund (AHTF) The Board of Commissioner discussed the plan and uses of the AHTF proceeds at the Board Workshop held on September 29. An AHTF advisory committee made up of community members convened on December 12 to begin the process of advising how the funds should be expended. Their recommendation will be presented to the Board of Commissioners and then forwarded to the City Council for your approval. The present amount in the AHTF is $47,000 with the second installment for 2016 coming in December from levy proceeds. On November 4, 1 visited with about 15 people from South Dakota on a teleconference on how we created the AHTF and if they could use the same concept in South Dakota. South Dakota is experiencing a severe housing shortage in communities across the state. Other HRA Activities 2016 Annual Report We are working our 2016 Annual Report and it should be issued in mid-january Annual and Regular Meeting The HRA's Annual and Regular meeting will be held on January 10, 2017 at the St. James Hotel In the Oak Room. New officers will be elected. We are having two guest speakers: David Unmacht of LMC and Jamie Borell of Innovative Power Systems. Lease Activities with HOPE Coalition The HRA has issued a new lease for the Transitional Housing property to HOPE Coalition with a slight rent increase for 2017 and We will be issuing a new lease for the Women's Shelter as well in We have slightly increased the rent for the Women's Shelter property as well for COLA The Board of Commissioners approved a 2% COLA for staff salaries effective January 1, The amount appears to be in alignment with other local government entities and HRAs across the State. Staff also provided an analysis of our benefit package compared to the City's benefit package for their information. Sale of Two Single Famllv Houses (SFH1 HF^ Staff are requesting the Board of Commissioners to give us the authorization to list and sell two SFH that HRA acquired through cancellation of Contract for Deeds. The HRA was renting these two properties but both houses are now vacant. The sale of the properties could net the HRA up to $270,000 in unrestricted redevelopment funds as the properties have no debt against them. The houses are on Buchanan and 12'^ Streets. Office Rehab Update The HRA Board of Commissioners has approved the HRA to apply for USDA Rural Development Community Facilities loan. As we move forward in this rehab project, we continue to run into handicap accessibility issues which may require us now to provide an elevator from the garage through a proposed second story addition. If we build a second story, we will increase our office space by about five offices whereas the initial plan was for two to three additional offices. We do not know the cost of this latest revision yet Wall Calendar This is the first year the HRA has teamed up with the Red Wing Photography Club for pictures for our wall calendar. Llnnae Carlson and Tom Hughes were the successful photographers for the 2017 calendar.

6 Red Wing Housing & Redevelopment Authority 428 West Fifth Street, Red Wing, MN Telephone (651) FAX (651) TDD/TTY Pictured left to right: Jackie Luikart, Cheryl Larson, Tom Hughes, Linnae Carlson. Corrine Stockwell, Jane Allen-Calhoun. Photo credit; Tom Severson, Red Wing Photo Club member Reserves as of October Program October September ipublic Housino $271,449 Section 8 Vouchers (FSS and $23,056 $22,389 unrestricted only) Redevelopment $174,142 $495,227 Bridges -$7,465 -$12,953 Small Cities Program $224,225 $234,924 Jordan Tower II $544,810 $477,947 EQUAL OPPORTUNITY HOUSING / EQUAL OPPORTUNITY EMPLOYMENT

7 [ Low Rent Public Housing The HRA was recently recognized as an HRA who went smoke-free in their housing units by Tom Wolff, Goodhue County Health and Human Services. The name of the report is "Successful Smoke-Free Pollcles in Minnesota Public Housing Case Study: Red Wing Housing and Redevelopment Authority/' The study was distributed state-wide.

8 Jordan Tower II On schedule to close loans after first of New Year. Home and PARIF Loans HOME Loan- $3,000,000 PARiF Loan- $ Total $3,731,000 0% no repay as long affordable 4% repay, 5-year deferral Rehab Roof, Windows, Tuck Point and Seal, Plumbing, HC accessibility items, concrete work and other items. [ Section 8 Voucher Program Waiting List is open for local preference. 153 vouchers issued as of Oct. 31, Allocation is about $66,000 per month Twelve households shopping for units. Shelter + Care Voucher Seven vouchers issued

9 ' [ Bridges Program $96,000 for 10 rental assistance units Minnesota Housing approved two additional units For people with mental health issues and homelessness Exploring use in Goodhue County [ Redevelopment CommonBond LIHTC Proposal CommonBond's proposal for 38 units of Low Income Housing Tax Credit units was not funded by Minnesota Housing Small Cities Development Program (SCDP) Proposed SCDP grant pre-application : Activity totuidts SCOP cost per Total SCDP Total Leveraged Source of Leveraged Total Costs UnK Sources Funds-use V after source If committed Rental Housing Multi famllv Owner Occupied-Single Family Owner Occupied- SF; Admin 48 $7, $350,000 52,227,044 MHFAc $2,577,044 7 $18,000 $126,000 $42,000 HRAC $168,000 7 $2,700 $18,900 $ $18,900 Commercial 8 $40,000 $320,000 $80,000 HRAC $400,000 Commercial-Admin 8 $6,000 $48,000 S- $48,000 Totals $ $862,900 $2,349,044 $3,211,944

10 Redevelopment Small Cities Program Use of SCDP funds and Balance Remaining M SCDP Activity APPROVED BUDGET AVAILABLE BALANCE Owner- Occupied Rehab Commercial Rehab General Administration $195,650 $398,424 $89,110 $3,092 $37,892 $18,426 Total Swift Activity $683,184 $59,410 Category As of July 2016 Category As of October 2016 Notes Receivable: Forgivable Portion Cash Reserves; $1,650,079 Notes Receivable: $818,362 Forgivable Portion $163,848 Cash Reserves: $1,692,321 $830,054 $234,924 Affordable Housing Trust Fund (AHTF) Communitv Advisorv Committee created Proposed uses

11 other Activities New leases with HOPE Coalition Transitional Housing and Women's Center 2017COLA-2% Proposed Sale of two HRA Houses a Office Rehab Update Office Remodel continues to change as we go further into the rehab planning. For Instance: Addition of a second story to avoid garage expansion (soils remediation) Net five offices instead of two elevator may be required regardless of our design. ^jbo^j^ttas-ru^ approved any new designs at this time.

12 Reserves Adjusted Program October September $271^1 Section 8 Vouchers {FSS and $23,056 $22,389 unrestricted only) Redevelopment $174,142 $495,227 Bridges -$7,465 -$12,953 Small Cities Program $224,225 $234,924 Jordan Tower!l $544,810 $477,947 Randal Hemmerlin, Executive Director 428 West Fifth Street Red Wing, MN