TIME CALLING TO ORDER THE TUESDAY OCTOBER 28TH 2025 HRA BOARD MEETING. JUST TO NOTE THAT COMMISSIONER
WOOTEN IS LISTENING BUT HE IS NOT PARTICIPATING IN VOTING. FIRST ITEM IS THE APPROVAL OF THE AGENDA ANY CHANGES TO
THE AGENDA COMMISSIONER WHO CAME? THANK YOU CHAIR. I WOULD LIKE TO MAKE A MOTION TO PULL ITEM 3.3 FROM THE CONSENT AGENDA AS I WOULD LIKE TO EX ABSTAINED FROM VOTING ON
THIS ITEM DUE TO A PERSONAL CONNECTION IN RELATION TO SHADY LANE COURT. OKAY. THANK YOU. AND THEN I WOULD ALSO LIKE TO MOVE ITEM 5.2 EARLIER IN THE
AGENDA FOLLOWING THE CONSENT ITEM CONSENT ITEMS. ARE THERE ANY OTHER CHANGES? NO. OKAY SO HERE I MOVE TO APPROVE
THE AGENDA WITH THE EDIT OF REMOVING 3.43 FROM THE CONSENT AGENDA AND MOVING ITEM 5.2 TO FOLLOW THE CONSENT AGENDA. IS THERE A SECOND?
OKAY. QUESTION CHAIR ARE WE JUST HOLDING 3.32 VOTED ON INDIVIDUALLY AND THEN SHE'S STEPPING OUT? OKAY JUST WANT TO CLARIFY THAT. >> THANK YOU. OKAY.
SO SECOND BY COMMISSIONER MUIR ALL IN FAVOR I MOTION PASSES SIX ZERO.
OKAY SO WE MOVE ON TO THE CONSENT ITEMS. ALL RIGHT.
SO THE FOLLOWING CONSENT ITEMS . OKAY SO LOOKING FOR A MOTION TO APPROVE THAT. OKAY. I MOVED TO APPROVE ITEMS 3.13.2 OKAY.
SORRY I AM LOOKING FOR A MOTION TO APPROVE CONSENT ITEMS 3.1 AND 3.2 MOVED SAYING MOVED BY COMMISSIONER CARTER AND SECOND BY COMMISSIONER MOUA.
ALL RIGHT. ALL IN FAVOR I MOTION PASSES SIX ZERO. OKAY SO NOW ITEM THREE POINT
HERE SO LET'S TAKE UP ITEM 3.3 NOW CAN I GET THE STAFF PRESENTATION? THANK YOU CHAIR AND COMMISSIONERS.
SO THIS IS A REQUEST FROM THE CURRENT OWNER OF PORTLAND COMMONS WHICH IS DOING BUSINESS AS HAYDEN GROVE. THIS IS A SENIOR LIVING MULTIFAMILY RESIDENTIAL APARTMENT IN BLOOMINGTON AND
THE CURRENT OWNER IS SELLING THE PROPERTY SO THE HOA HAS AN EXISTING AGREEMENT THAT REQUIRES THE APPROVAL OF THE AUTHORITY FOR THIS FOR ANY
PROPERTY TRANSFER AND THAT TRANSFER WILL ALSO REQUIRE THE ASSUMPTION OF THE REQUIREMENTS UNDER THAT CURRENT AGREEMENT BY THE NEW BUYER. SO ALL OF THE REQUIREMENTS
RELATED TO AFFORDABILITY AND THERE ARE ADDITIONAL REQUIREMENTS OUTLINED IN THE CONTRACT FOR DEVELOPMENT BETWEEN THE HOA AND THE CURRENT OWNER. THOSE WILL BE ASSUMED BY THE NEW BUYER SO THE NEW BUYER
WILL ASSUME THOSE REQUIREMENTS . THEY WILL ALSO ASSUME THE FINANCIAL BENEFITS OF THE TIFF NOTE WHICH WILL LAST UNTIL FEBRUARY AT THE LATEST FEBRUARY 1ST OF 2047.
SO THAT NOTE WILL BE ASSUMED BY THE NEW BUYER AS WELL. AND THEN I'LL ALSO NOTE FROM THE STAFF REPORT THAT THIS AGREEMENT INCLUDED A PUBLIC ASSISTANCE REPAYMENT AGREEMENT
WHICH ESTABLISHED A CALCULATION THAT IF THIS PROJECT HAD AN INTERNAL RATE OF RETURN OVER A CERTAIN PERCENTAGE AT THE SALE THIS DATE OF SALE THAT THERE WOULD
BE A REPAYMENT FROM THE NET PROCEEDS TO THE AUTHORITY. SO THE HOA STAFF AND THE ATTORNEYS MUNICIPAL ADVISOR REVIEWED PROJECT FINANCIAL DOCUMENTATION PURSUANT TO THAT
CALCULATION AND FOUND THAT THE INTERNAL RATE OF RETURN WAS BELOW THAT THRESHOLD. SO THERE IS NO REPAYMENT UNDER THE PUBLIC ASSISTANCE REPAYMENT AGREEMENT. AND SO PART OF THE ACTION ON
THIS ITEM IS TO TERMINATE THAT PUBLIC ASSISTANCE REPAYMENT AGREEMENT. AND SO I CAN ANSWER ANY ADDITIONAL QUESTIONS THAT YOU MIGHT HAVE ANYONE HAVE
QUESTIONS? NO. OKAY. SO CAN I GET A MOTION TO APPROVE THE ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT
AGREEMENT AND TIFF NOTE FOR SO MOVED MOVED BY COMMISSIONER MUELLER AND SECOND BY COMMISSIONER DOUBLING HER AND OKAY SO JUST
DO THE VOTE OKAY MAY WE HAVE ALL IN FAVOR MY BRAIN I OKAY DO I HAVE TO SAY THAT 550 OKAY
THE MOTION PASSES 5 TO 0 WITH COMMISSIONER WHO KIM ABSTAINING. ALL RIGHT, NOW WE ARE ON TO
5.2. ALL RIGHT. MAYBE WE GET THE STAFF REPORT . THANK YOU, MADAM CHAIR.
COMMISSIONERS, I'M HERE TODAY TO TALK ABOUT OUR COMMUNITY DEVELOPMENT BLOCK GRANT OUR PUBLIC SERVICES SELECTION SO AS YOU MAY RECALL, COMMUNITY
DEVELOPMENT BLOCK GRANTS AND ANNUAL ALLOCATION WE GET FROM THE FEDERAL GOVERNMENT FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IN 2025 WE WERE ALLOCATED 465,000 AND AS
PART OF THAT WE HAVE DIFFERENT ACTIVITIES THAT WE CAN ADDRESS AND WE HAVE KIND OF A BUCKET OF MONEY THAT WE CALL FOR PUBLIC SERVICES. THEY CAP THAT AT 15% OF THAT
ALLOCATION BUT YOU'LL SEE IT'S PRETTY FLEXIBLE IN WHAT WE CAN USE THAT MONEY FOR. SO KNOWING THAT THAT HAS THAT FLEXIBILITY, WE PUT AN RFP OUT TO THE COMMUNITY FOR DIFFERENT
ORGANIZATIONS THAT CAME IN ON JULY 15TH AND WE HAD FOUR RESPONSES. WE SCORED AND REVIEWED THOSE BASED ON PROJECT FEASIBILITY ORGANIZATIONAL CAPACITY.
ARE THEY ABLE TO DO THE WORK THAT THEY SET OUT TO DO? WILL IT BE IN A TIMELY MANNER KNOWING THAT THIS IS AN ANNUAL ALLOCATION THAT OUR TIME CONSTRAINTS ON IT AND THEN
THEIR EXPERIENCE AND THEIR REFERENCES AND THEIR TEAM THAT THEY PUT TOGETHER? AND THE MOST IMPORTANT PART IS THAT THEY'RE ADDRESSING THE NEED IN OUR CONSOLIDATED PLAN IN OUR ANNUAL ACTION PLAN.
SO LIKE I SAID, PUBLIC SERVICES CAN BE PRETTY BROAD BUT IT DOES HAVE TO KIND OF ADDRESS ONE OF THOSE NEEDS THAT WE OUTLINED IN THOSE PLANS THAT WE HAD APPROVED EARLIER IN THE YEAR.
AND ANOTHER CONSTRAINT ON THE FUNDING IS THAT IT MUST SERVE AT LEAST 70% OF PEOPLE OR 70% OF THE PEOPLE IT SERVES MUST BE LOWER MODERATE INCOME SO
80% AREA MEDIAN INCOME OR BELOW. SO AFTER REVIEWING THE APPLICATIONS WE RANKED THEM
AND IN ORDER WE ARE RECOMMENDING APPROVAL OF THREE AS AS MUCH THAT THE FUNDING ALLOWED US TO FUND. SO THE FIRST ONE WOULD BE FOR
VOLUNTEERS ENLISTED TO ASSIST PEOPLE. WE ALSO HAVE HOUSING LINK AND SENIOR COMMUNITY SERVICES SO WE HAD PROPOSED AND PROVIDING
EMERGENCY RENTAL ASSISTANCE AND THIS WOULD PRIMARILY BE USED FOR EVICTION PREVENTION FOR PEOPLE WHO ARE EXPERIENCING SOME SORT OF HOUSING CRISIS. THEY NEED JUST A ONE TIME OR
SHORT INTERVENTION TO KEEP THAT THEM IN THEIR HOUSING. IT'S NOT MEANT TO BE LONG TERM. IN FACT THERE ARE STIPULATIONS IN THE FUNDING THAT IT CAN'T BE FOR MORE THAN THREE
CONSECUTIVE MONTHS WITH WE DID SAY IN THE RFP THAT WE ANTICIPATED A MAXIMUM CAP OF $30,000 PER WARD HOPING TO MAKE MULTIPLE AWARDS.
SO YOU'LL SEE THERE WE WE ARE RECOMMENDING A FULL FUNDING OF THEIR PROPOSAL AND WITH THAT THEY WOULD BE ABLE TO ASSIST FOR ABOUT 17 HOUSEHOLDS. THERE ALSO WILL BE
PRIORITIZING THE 30% AREA MEDIAN INCOME SO THE LOWEST INCOME HOUSING LINK ALSO PROPOSED INTERESTING PROPOSAL
THEY REQUESTED $10,030 BUT THEY REALLY FOCUSED ON FAIR HOUSING AND THEY HAVE AN INTERACTIVE CHAT BACK THAT THEY ARE WORKING ON. THEY HAVE OTHER FUNDING
SOURCES INCLUDING HENNEPIN COUNTY AND IT REALLY WOULD ASSIST PEOPLE WHO ARE POTENTIALLY FACING DISCRIMINATION AND IT WOULD EXPLAIN WHAT PROTECTED CLASSES
ARE WHAT IS AN ILLEGAL DISCRIMINATION AND IF IT IS SOMETHING THAT NEEDS TO BE FILED AND CAN AN OFFICIAL COMPLAINT ON HOW TO DO THOSE STEPS AND REALLY REFINING THIS
TOOL TO BE INTERACTIVE AND REDUCE BARRIERS AND PROVIDE THAT SUPPORT THAT IS LOW BARRIER WHEN YOU'RE ABLE TO ACCESS THAT THROUGH THE INTERNET. AND THEN FINALLY WE HAVE
SENIOR COMMUNITY SERVICES. WE HAVE FUNDED THEM IN THE PAST WITH THIS POT OF MONEY. THIS WOULD BE FOR THEIR HOUSEHOLD AN OUTDOOR MAINTENANCE PROGRAM OR HOME THEY LIKE TO CALL IT.
YOU CAN SEE THE AWARD IS ONLY FOR $9,970. THIS IS THE REMAINING FUNDS AFTER THOSE TWO HIGHER SCORING APPLICATIONS WERE FUNDED. THIS IS A LITTLE BIT LOWER
THAN THEY TYPICALLY GET. LAST YEAR THEY RECEIVED THE FULL 50,000 BUT THIS PROGRAM DOES SUPPORT LOW AND MODERATE INCOME SENIORS IN OUR COMMUNITY TO HELP THEM KEEP THEM IN THEIR HOME AND KIND
OF AGE IN PLACE AND WITH HOUSEHOLD MAINTENANCE OR CHORES OR JUST ACTIVITIES AROUND THE HOUSE IN GENERAL BUT RECOGNIZING THAT THAT IS A
SHARP DECLINE FROM LAST YEAR, WE ARE ALSO RECOMMENDING THAT WE'D COME BACK IN THE NEAR FUTURE WITH AN AMENDMENT TO INCREASE OUR BUDGET BY $10,000
THAT'S STILL UNDER OUR 15% CAP BUT WE'RE NOT ABLE TO INITIATE THAT AMENDMENT PROCESS NOW WITH THE GOVERNMENT SHUT DOWN AND THERE'S JUST TIMELY ISSUES
HERE GOING ON WITH THE FUNDING THAT DOESN'T ALLOW US TO DO THAT. SO WE'LL COME BACK FOLLOWING OUR CITIZEN PARTICIPATION PLAN TO DO THAT AT A LATER DATE. SO I'VE KIND OF JUMPED THE GUN
THERE BUT THAT'S OUR NEXT STEPS ASSUMING APPROVAL OF THESE CONTRACTS WE WOULD LOOK TO EXECUTE THEM AND START
THOSE ACTIVITIES AND THEN WE WOULD WHEN APPROPRIATE START THAT AMENDMENT PROCESS TO INCREASE OUR PUBLIC SERVICES BUDGET BY THAT 10,000 TO
FUTURE AWARD THAT SENIOR COMMUNITY SERVICES ADDITIONAL 10,000 AND WITH THAT I CAN ANSWER ANY QUESTIONS.
COMMISSIONER TILLMAN I'M SORRY BUT THEY'RE DESIGNING WHO IS WHO'S WORKING ON THAT PROJECT AND ALSO WHAT WHAT STEPS ARE
THEY TAKING TO MAKE SURE THAT THE INFORMATION IS CORRECT TO SOMEBODY WHO MAY NOT BE ABLE TO DISCERN I FROM REAL YEAH.
CHAIR COMMISSIONER YOUR I'M NOT SURE ALL THE SPECIFICS OF THE PROGRAM THERE IS A HUMAN WHO IS REVIEWING EVERYTHING IN THE BACKGROUND. PART OF THIS MONEY IS TO PAY
FOR THAT SALARY SO THAT THEY CAN KIND OF CONTINUE TO TEST AND MAINTAIN THAT EXPECTATION . AND I BELIEVE THERE IS A SCENARIO THOUGH WHERE IT DOES KICK INTO A HUMAN IF THE BASIC
INFORMATION IS NOT BEING MEANING THERE NEEDS HOUSING LINK IN GENERAL OPERATES ONLINE WE REFER TO THEM PRIMARILY BECAUSE THEY HOUSE
THEIR GREAT REFERRAL SERVICE FOR DIFFERENT AFFORDABLE HOUSING OPTIONS THAT ARE AVAILABLE BUT BECAUSE THEY'RE ASSISTING RENTERS ON THIS BROAD SCALE THEY WANT TO EXPAND THEIR REPERTOIRE OF WHAT THEY'RE PROVIDING
BEYOND JUST HERE'S A UNIT BUT HERE'S OTHER SERVICES THAT YOU CAN CONNECT WITH AS WELL THROUGH THERE. SO THEY OPERATE PRIMARILY ONLINE ALREADY SO THIS IS
STILL IN THAT KIND OF PILOT PHASE A LITTLE BIT THE QUESTION COMMISSIONER, MORE THANK YOU CHAIR CAN YOU TALK THROUGH WHAT WE DID TO VET
THESE ORGANIZATIONS AND THE HISTORY WE HAVE WITH THEM? I KNOW ANYTIME WE'RE DEALING WITH GRANTS THERE'S THERE'S PEOPLE LOOKING TO MAKE SURE THAT THIS MONEY IS GOING TO BE USED PROPERLY WITH THE RIGHT ORGANIZATIONS THAT HAVE THE
REACH THAT CAN MAKE A DIFFERENCE AND THAT WE DON'T SUPPORT UNSCRUPULOUS ORGANIZATIONS. YEP. CHAIR COMMISSIONER MUAH.
THAT'S A GREAT QUESTION. SO BEYOND JUST PUTTING OUT THE RFP THAT WAS AVAILABLE TO ALL ORGANIZATIONS THAT WOULD BE OPERATING THEIR PROGRAM FOR BLOOMINGTON, IT JUST SO
HAPPENS THAT THESE ORGANIZATIONS WE HAVE WORKED FOR OR WORKED WITH IN THE PAST THEY HAVE LIKE I SAID WE REFERRED TO HOUSING LINK AND HAVE FUNDED THEM IN THE PAST
FOR OTHER ACTIVITIES SIMILAR WITH FEE WE HAVE FUNDED EMERGENCY RENTAL ASSISTANCE THROUGH OTHER FUNDING SOURCES THAT WE'VE HAD AND DO HAVE ONGOING PROFESSIONAL SERVICES CONTRACT WITH THEM FOR OTHER ACTIVITIES.
SO WE'RE VERY FAMILIAR WITH ALL THREE ORGANIZATIONS AND HOW THEY OPERATE. BUT AS PART OF THIS FEDERAL FUNDING TO THEY WILL PROVIDE
TO US DOCUMENTATION OF WHAT THEY'RE THAT THEY'RE FULFILLING THEIR CONTRACT SO WHEN THEY'RE WORKING WITH A CLIENT AND THEY'RE DOING INCOME VERIFICATION, WE'LL HAVE THAT INFORMATION OF HOW
MANY PEOPLE THERE SERVE WHAT THOSE INCOMES ARE AND THEN WE'LL LIKELY DO ONSITE MONITORING AT THE END OF THE CONTRACT TO MAKE VERIFY AND MAKE SURE THAT THEY'RE DOCUMENTING BECAUSE THIS IS
FEDERAL FUNDING. SO THERE'S EXTRA MONITORING THAT WE WANT TO DO TO MAKE SURE THAT WE'RE IN COMPLIANCE AND THAT THEY'RE FULFILLING WHAT THEY ACTUALLY SAID THEY'RE GOING TO DO. COMMISSIONER CARTER THANK YOU,
CHAIR AND CAN YOU TALK A LITTLE BIT MORE ABOUT JUST THE REDUCED FUNDING FOR HOUSING LINK AND IS THIS THE DO WE TYPICALLY DO A COMPETITIVE PROCESS? CHAIR COMMISSIONER CARTER WE
WE HAVEN'T IN THE PAST GIVEN THE DOLLAR AMOUNT THAT BEING YOU KNOW TYPICALLY 50,000 IS KIND OF THAT DIRECT CONTRACTING THAT WE CAN DO.
SO WE SOME YEARS WE'VE DONE AN RFP AND SOME YEARS WE HAVEN'T BUT I THINK IT'S BEST PRACTICE TO HAVE THAT RFP OUT THERE SO WE DON'T GET COMPLACENT AND CONTINUE JUST TO FUND THE SAME
PROGRAM EVERY YEAR. THIS WAY WE'RE MAKING SURE WE'RE ADDRESSING MULTIPLE NEEDS OUT THERE WHICH WAS THE BENEFIT OF THAT. SO IN THE PAST SENIOR COMMUNITY SERVICES HAVE
PREVIOUSLY HAD WAS AWARDED $50,000 AND THAT WAS THE ENTIRETY OF THE PUBLIC SERVICES BUDGET IN THE PRIOR YEARS. I'M TRYING TO REMEMBER HOW MANY YEARS IN THE PAST WE
FUNDED THEM BUT IT'S BEEN SEVERAL YEARS THAT WE HAVE FUNDED THEM TO THAT MAXIMUM AMOUNT BUT WE LIKE WE SAID WE WERE IN THE CONSOLIDATED PLAN PROCESS WHERE IN THE ANNUAL
ACTION PLAN AND WE'VE IDENTIFIED A BROAD RANGE OF NEEDS. SO WE JUST WANTED TO MAKE SURE ESPECIALLY THIS YEAR STARTING OUT THIS NEW FIVE YEAR PLAN THAT WE ARE ADDRESSING A WIDE RANGE OF NEEDS THAT WE'RE DOING THAT DUE DILIGENCE SO
MOVING FORWARD WILL LIKELY CONTINUE TO DO AN RFP PROCESS JUST TO MAKE SURE THAT AS ENVIRONMENTS CHANGE AND MARKETS CHANGE NEEDS CHANGED. WE ARE ADDRESSING THAT EVER
EVOLVING NEEDS IN BLOOMINGTON. >> YEAH I DO AGREE WITH THE COMPETITIVE PROCESS. I THINK THAT'S A GOOD PRACTICE AND I YEAH I JUST 100% AGREE THAT IT'S EASY TO GET COMPLACENT OR JUST KIND OF GET
INTO A PATTERN, RIGHT? AND SO I WOULD SAY YOU KNOW IF WE DO HEAR OF INCREASING DEMAND OR NEEDS AND ESPECIALLY IN THE SENIOR SPACE LIKE I GUESS I WOULD BE REALLY
CURIOUS TO HEAR ABOUT THAT AND YOU KNOW, IF NECESSARY FIND RESOURCES AND OTHER BUCKETS OF MONEY. I DO THINK THAT THIS IS I HAVE HEARD IN THE COMMUNITY LIKE ANECDOTALLY THIS IS A VERY VALUABLE PROGRAM THAT THE IT
PROVIDES, YOU KNOW, THROUGH THE CONTRACT. AND SO I JUST WANT TO MAKE SURE THAT WE'RE NOT LEAVING SENIORS HANGING ESPECIALLY AS THE SENIOR POPULATION CONTINUES TO GROW IN BLOOMINGTON. SO THANK YOU, COMMISSIONER
HOOKING THANK YOU CHAIR I'M KIND OF PIGGYBACKING OFF OF WHAT COMMISSIONER CARTER SAID. I KNOW IN THE PAST HOME SENIOR COMMUNITY SERVICES HAS COME
AND PRESENTED TO US KIND OF A SUMMARY OF WHAT THEY'VE DONE THROUGHOUT THE YEAR AND MAYBE THAT MIGHT BE A GOOD IDEA TO KIND OF GET A LITTLE SUMMARY OF WHAT THEY WHAT THIS PAST
YEAR HAS HAS PROVIDED. I THINK IT'S REALLY BENEFICIAL AND THEN SAME I WOULD SAY MAYBE GOING FORWARD KIND OF A SUMMARY FROM HOUSING, YOU KNOW IF WE IF WE APPROVE THESE LIKE KIND OF GET SOME SUMMARIES
BACK OF WHAT WORKED, HOW IT WORKED MAYBE WHAT DIDN'T WORK ,YOU KNOW JUST KIND OF SO WE HAVE THAT FEEDBACK GOING FORWARD OF WHAT'S REALLY BEEN SUCCESSFUL, WHAT'S THE FEEDBACK FROM THE COMMUNITY AS WELL. SO THANK YOU.
THANK YOU. ANY OTHER COMMENTS? QUESTIONS? ALL RIGHT THEN I NEED A MOTION TO ADOPT A RESOLUTION APPROVING ENTERING INTO
AGREEMENTS FOR PROGRAM YEAR 2025 COMMUNITY DEVELOPMENT BLOCK GRANT PUBLIC SERVICES SO MOVED MOVED BY COMMISSIONER WHO CAME SECOND AND SECOND BY
COMMISSIONER DOUBLING HER ALL IN FAVOR I MOTION PASSES SIX ZERO NOW WE'RE ON TO
ORGANIZATION BUSINESS OKAY SO MAY WE HAVE THE 40 A APPROVE AGREEMENT AND APPOINTMENT FOR GENERAL AND SPECIAL COUNCIL TERMINATION OF IN TERM
AGREEMENT AND WE HAVE A STAFF REPORT. >> YES CHAIR COMMISSIONERS I WILL GIVE A BRIEF REPORT HERE. SO IF YOU'LL RECALL A COUPLE OF MONTHS AGO OUR LONG TIME HRA ATTORNEY MOVED LAW FIRMS
WHICH SO FOLLOWING THAT MOVE WE ESSENTIALLY EXECUTED A SHORT TERM TEMPORARY AGREEMENT WITH THE NEW LAW FIRM AND SINCE THEN WE HAVE WORKED ON ISSUING ANOTHER REQUEST FOR
PROPOSALS ANOTHER RFP TO COMPETITIVELY BID OUT LEGAL SERVICES AND RECEIVED A NUMBER OF STRONG APPLICANTS BACK THIS MONTH THROUGH A TYPICAL REVIEW PROCESS WHERE WE EVALUATED
EXPERIENCE, WENT THROUGH AN INTERVIEW PANEL AND YOU KNOW, EVALUATED COSTS AND DIFFERENT THINGS LIKE THAT THROUGH THE PROCESS. WHAT WE'RE RECOMMENDING GOING FORWARD WITH TWO CONTRACTS TONIGHT ONE IS FOR THE GENERAL
COUNSEL SELECTION WHICH IS KENNEDY AND GRAVEN AND THE OTHER IS FOR A SPECIAL COUNSEL WHICH WOULD BE FOR PROJECTS AS ASSIGNED THROUGH CUTUP ROCK WHO IS ALSO OUR BOND COUNSEL.
SO IT MAKES SENSE TO HAVE SOME COLLABORATION THERE. AND I'LL ALSO NOTE THERE IS SOME INFORMATION THAT IS CONFIDENTIAL THAT HAS BEEN PROVIDED TO THE BOARD ON AT
YOUR PLA. THERE'S A PRINT OUT THERE THAT'S CONFIDENTIAL UNTIL CONTRACTING IS ARRANGED. BUT YEAH THAT IS THE STAFF REPORT FOR THIS ITEM. I'M HAPPY TO ANSWER ANY
QUESTIONS SO JUST READ THAT ONE DID A MOTION TO APPROVE RATE SO I NEED A MOTION TO APPROVE THE AGREEMENT AN APPOINTMENT FOR GENERAL AND
SPECIAL COUNSEL AND FOR THE TERMINATION OF INTERIM AGREEMENT SO MOVED MOVED BY COMMISSIONER EASY SECOND AND SECOND BY COMMISSIONER WHO
CAME ALL IN FAVOR I MOTION PASSES SIX ZERO AND NOW WE ARE MOVING ON TO NEW BUSINESS THE BLOOMINGTON FAMILY TOWNHOMES
LOAN FOR BALANCE MAY WE HAVE THE STAFF REPORT. THANK YOU CHAIR AND COMMISSIONERS SO THIS IS BLOOMINGTON FAMILY TOWNHOMES
AND WE'RE TONIGHT CONSIDERING A REQUEST FOR LOAN FORBEARANCE SO I'LL GIVE A BACKGROUND OF THE PROPERTY HERE AND GET US SITUATED SO THIS IS A SET TO SCATTERED SITE LOCATIONS
BUT WE CONSIDER IT ALL PART OF ONE PROPERTY KNOWN AS BLOOMINGTON FAMILY TOWNHOMES. THERE ARE THERE ARE 14 UNITS AT NAUDE DRIVE SO YOU CAN SEE THAT'S THE SOUTH WESTERN AREA
AND THEN THERE ARE SIX UNITS AT WEST 90TH STREET. SO IT'S WORTH NOTING HERE I THINK THERE'S GEOGRAPHICALLY THIS IS PROVIDING SOME OF THE
FEW AFFORDABLE UNITS IN THE MORE WESTERLY PARTS OF BLOOMINGTON. SO JUST TO GET US SITUATED AND SO MORE BACKGROUND ON BLOOMINGTON FAMILY TOWNHOMES. SO THIS IS A 20 AS I MENTIONED
20 UNIT TOWNHOME DEVELOPMENT THERE PROVIDING LARGER HOUSEHOLD SIZES SO YOU CAN SEE IT ON THE BOTTOM TABLE IN THE BOTTOM LEFT THERE ARE THREE TWO BED UNITS AND 17 THREE BED
UNITS AND I THINK IT'S WORTH NOTING THIS IS PROVIDING SOME LARGER HOUSEHOLD TYPES THAT ARE TYPICALLY PRETTY DIFFICULT TO COME ACROSS WITH AN AFFORDABLE RENTS IN THE METRO AREA AND THEY'VE ALSO BEEN
RENTING TO LARGER HOUSEHOLD SIZES. SO WE RECEIVED INFORMATION FROM COMMON BOND WHICH IS THE OWNER OPERATOR OF THESE UNITS THAT THE AVERAGE OR THE MEDIAN
HOUSEHOLD SIZE FOR THESE UNITS AT BLOOMINGTON FAMILY TOWNHOMES IS FOUR PEOPLE AND THESE HOUSEHOLDS ARE RANGING IN SIZE FROM 2 TO 7 PER UNIT SO THEY ARE SERVING LARGER HOUSEHOLDS.
THE AVERAGE HOUSEHOLD INCOME FOR THOSE FAMILIES IS AROUND 26,760 AND JUST FOR REFERENCE, THE THE MEDIAN INCOME FOR A
HOUSEHOLD EARNING 30% OF THE AREA MEDIAN INCOME EXCUSE ME I SAY IT AGAIN THE 30% OF THE AREA MEDIAN INCOME FOR A HOUSEHOLD OF FOUR IS 39,700. SO WE OFTEN TALK HERE ABOUT
HOW IMPORTANT IT IS TO BRING THOSE 30% OF MY UNITS ONLINE. THESE HOUSEHOLDS ARE ACTUALLY EARNING BELOW THAT 30% OF MY LEVEL IF IF WE'RE THINKING OF A HOUSEHOLD OF FOUR.
AND SO CURRENTLY THERE IS A RESTRICTION FOR THESE UNITS TO BE RENTED WITH RENTS AFFORDABLE TO HOUSEHOLDS EARNING 60% AM I BUT THE REALITY THE ACTUAL RENTS THAT
ARE BEING CHARGED FOR HOUSEHOLDS AT THIS PROPERTY ARE CLOSER TO 30 TO 40%. AM I SO COMMON BUT IS SETTING THOSE RENTS AND THEY'RE FAR LOWER THAN WHAT THEY COULD
CHARGE FOR THE MAXIMUM. SO I'LL GO ON HERE AND TALK THROUGH PROPERTY HISTORY. SO THIS PROJECT WHERE THE PROPERTY WAS CONSTRUCTED BACK
IN 1991 THEY TRADED PROVIDE FINANCIAL ASSISTANCE FOR THAT DEVELOPMENT OF THE 20 UNITS AND THE AGREEMENT HAS BEEN IN PLACE THEN TO PROVIDE THOSE UNITS. INITIALLY IT WAS TO PROVIDE
THEM AT 50% RENT LEVELS AFFORDABLE FOR HOUSEHOLDS EARNING 50% AM I? THAT WAS AMENDED IN 2006 UP TO 60% AM I? SO THAT'S WHERE IT IS NOW. BUT AS I ALREADY MENTIONED THE ACTUAL RENTS IN RECENT YEARS
HAVE BEEN MUCH, MUCH LOWER. SO COMMON BOND I MENTIONED BEFORE THEY'VE THEY ACQUIRED AND REHABBED THE PROPERTY IN 2008 THEY MADE BOTH EXTERNAL AND INTERNAL IMPROVEMENTS TO THE PROPERTY
AT THAT IN THAT YEAR AND AS A RESULT OF THAT REHAB THERE ARE ADDITIONAL AFFORDABILITY RESTRICTIONS PUT INTO PLACE RESULTING FROM LOW INCOME HOUSING TAX CREDITS AND THOSE RESTRICTIONS DO CURRENTLY LAST
UNTIL DECEMBER OF 2039. SO IN THIS TABLE YOU'LL SEE THE OTHER FINANCIAL SUBSIDIES THAT HAVE SUPPORTED THIS PROJECT BESIDES THE ETRADE'S FINANCIAL ASSISTANCE THE HRA
IS LISTED FIRST THEY TRY HAS THE MOST SENIOR LANDING FOR THIS PROPERTY AND I'LL JUST GO THROUGH THESE TERMS BRIEFLY ABOUT THE APPRAISED LOAN SIZE
IS 406 $406,000 AND IT HAS BEEN OCCURRING INTEREST AT 3% SINCE 1991. SO YOU'LL SEE THAT INTEREST BALANCE AS OF DECEMBER OF LAST YEAR WAS EVEN ABOVE THE INITIAL PRINCIPAL BALANCE
OF THE LOAN AND THEN THAT MATURITY DATE FOR THAT LOAN IS THIS DECEMBER FIRST, 2025. SO THIS YEAR THE OTHER LOANS OF NOTE THE OTHER DEBTS THAT OF NOTE HERE ARE FROM
MINNESOTA HOUSING SO THAT'S MHR FOR MINNESOTA HOUSING EXCUSE ME MINNESOTA HOUSING FINANCE AGENCY SO THAT'S HFA
THEY HAVE TWO LOANS CURRENTLY. ONE IS THE LOW INCOME LARGE FAMILY LOAN AND THAT CAME IN AT THAT 2008 REHAB. SO THAT'S THREE AND 60,000 WITH A LOWER INTEREST RATE AND
THEN THE LOAN THAT THEY THE IMAGE OF A PROVIDED IN 2025 IS ACTUALLY FROM THE STATE HOUSING TAX CREDIT PROGRAM. SO THAT'S A NEW PROGRAM THAT WAS AUTHORIZED RECENTLY BY THE LEGISLATURE THAT ALLOWS FOR A
STATE LEVEL TAX CREDIT PROGRAM . AND SO COMMON BOND WAS SUCCESSFUL IN RAISING A LITTLE OVER HALF A MILLION FROM THAT PROGRAM WHICH THEY UTILIZED TO PAY DOWN THEIR FIRST MORTGAGE
WHICH WAS WITH US BANK. AND SO THAT YOU CAN SEE THAT THAT IS NOT REFLECTED ON THIS TABLE BUT THERE IS THAT NEW DEBT FROM MFA AND THAT DOESN'T CARRY AN INTEREST RATE AND IT
IS DEFERRED UNTIL THE MATURITY DATE. AND WHAT WE'VE HEARD IS THAT THE EXPECTATION IS THAT THAT ASSISTANCE IS ACTUALLY MOST LIKELY TO BE FORGIVEN IF IT'S REQUESTED FROM A MAJOR FAITH.
AND THEN THE OTHER LOAN ON THIS TABLE HERE IS FROM COMMON BOND FROM THE NONPROFIT ORGANIZATION TO THE PROPERTY WHICH IS A SEPARATE ENTITY AND THAT'S THE LOAN FOR 474,004 70
ALSO IN 2008 WHICH DOES HAVE A HIGHER INTEREST RATE. SO THE HOA DEFERRED LOAN AND AN MFA LOANS BOTH MATURE AND DECEMBER 1ST TO THAT 2025
IMAGE OF A PURPOSEFULLY SET THAT MATURITY DATE TO CONCUR WITH THE INTEREST DATE SO I'LL MOVE ON HERE TO THE CURRENT REQUEST SO COMMON BOND CAME TO
HOA STAFF AND HAVE DETAILED A REHAB AND RECAPITALIZATION PLAN FOR BLOOMINGTON FAMILY TOWNHOMES. SO WE'RE CURRENTLY IN PHASE ONE OF THAT PLAN WHICH IS REQUESTING NEW SUBSIDY TO FUND
A SUBSTANTIAL REHABILITATION OF THE PROPERTY AND THEY HAVE BEEN SUCCESSFUL ALREADY IN SECURING 1.4 MILLION AND THAT THE SOURCES ARE EXTERNAL
IT'S EXTERNAL SUBSIDIES INCLUDING A MAJOR FOR THE STATE HOUSING TAX CREDIT THAT I ALREADY WENT THROUGH AND ALSO HENNEPIN COUNTY AND METROPOLITAN COUNCIL FUNDS THEY ARE ALSO AWAITING DECISION ON AN ADDITIONAL
GRANT OF 620,000 FROM THE STATE FROM METROFIBRE. SO THAT'S PHASE ONE PROCEEDS FROM A SUBSIDY RAISED DURING THIS PHASE WOULD ADDRESS
SUBSTANTIAL REHABILITATION NEEDS AND THE PHASE TWO THEN WOULD BE POSITIONING THE PROPERTY LONG TERM FOR IMPROVED CASH FLOW. AND SO THE WAY THAT THAT THAT COME ABOUT IS APPROACHING THAT
IS LOOKING AT THOSE EXISTING SOURCES OF DEBT. SO I'M GOING BACK TO SLIDE THE FHA LOAN THE IMAGE OF A L L L I L F LOAN AND COMMON BOND
LOAN AND REPOSITIONING THOSE OR SEEKING FORGIVENESS OR PARTIAL REDUCTION OF THOSE LOANS TO POSITION THE PROPERTY FOR A BETTER CASH FLOW ONE WAY THAT THEY'VE ALREADY ACHIEVED THIS IMPROVED CASH FLOW IS
THROUGH THE REPAYMENT OF THAT FIRST MORTGAGE THE US BANK LOAN WHICH DID HAVE A DEBT, A RECURRING DEBT SERVICE AND SO BECAUSE THEY'VE REPAID THAT THROUGH THE STATE HOUSING TAX CREDIT THE PROPERTY NOW HAS A BETTER CASH FLOW.
THEY'VE REDUCED THEIR DEBT SERVICE. SO WITHIN THIS PHASE THEY'LL ALSO LOOK TO REDUCE OPERATING EXPENSES WHICH WE'VE HEARD FROM A LOT OF NONPROFIT HOUSING PROVIDERS THAT THOSE HAVE BEEN RISING PRECIPITOUSLY
IN RECENT YEARS. SO COMPANIES LOOKING TO REDUCE THOSE COSTS AND ALL OF THIS IMPROVED CASH FLOW THE INTENT IS TO ALLOW A BUILD UP OF THE CAPITAL REPAIRS RESERVE FUND
FOR A BLOOMINGTON FAMILY TOWNHOME SO THAT RESERVE FUND WOULD BE BUILT UP AND THEN WOULD BE ABLE TO ADDRESS ADDITIONAL CAPITAL NEEDS AT THE PROPERTY. SO ADDITIONAL REHAB AND THEN
FINALLY PHASE THREE WOULD BE A SEEKING ADDITIONAL NEW SUBSIDY FOR REMAINING REPAIRS AND THEY'VE DONE A CAPITAL NEEDS ASSESSMENT ON THE PROPERTY AND FOUND 2.1 MILLION IN UNFUNDED
REPAIR NEEDS THAT THEY WOULD SEEK ADDITIONAL SUBSIDY FOR TO TO PROCEED WITH THOSE REPAIRS . SO THE REQUEST TONIGHT FOR THE HRA IS FOR A 12 MONTH
FORBEARANCE OF THE THE LOAN BETWEEN THE ATRIA AND BLOOMINGTON FAMILY TOWNHOMES AND AS I MENTIONED THE MATURITY DATE IS CURRENTLY DECEMBER 1ST OF 2025. SO THIS 12 MONTH FORBEARANCE
WOULD PUSH THAT MATURITY DATE OUT TO NEXT YEAR. THIS ACTION ALIGNS WITH THE ACTION THAT MINNESOTA HOUSING MICH OFFERED JUST TOOK ON THAT LOW INCOME LARGE FAMILY LOAN
THAT HAD THAT SAME MATURITY DATE. SO ON OCTOBER 22ND THEIR IMAGE OF IS MORE IT'S THE MORTGAGE CREDIT COMMITTEE TOOK AN
ACTION TO MAKE THAT FORBEARANCE FOR 12 MONTHS SO THIS ACTION WOULD ALIGN WITH THAT OTHER LENDER AND I'LL ALSO MENTION HERE THAT THE HOA STAFF AND OUR MUNICIPAL
ADVISOR WERE PROVIDED A GOOD AMOUNT OF DOCUMENTATION ON THE PROJECT FINANCIALS AND HAVE FOUND THAT THE THERE'S IMMENSE FINANCIAL CONSTRAINT FOR THIS PROPERTY AND SO THERE WOULD BE
A DIFFICULTY IN REPAYING THE LOAN IF THERE WASN'T THIS FORBEARANCE ON DECEMBER 1ST OF THIS YEAR. SO THE GOAL OF THIS FORBEARANCE WOULD BE TO ALLOW FOR FLEXIBILITY FOR AN ADDITIONAL YEAR TO CONTINUE
ASSESSING THE PROJECT AND BEGIN IMPROVEMENTS RESULTING FROM THIS FIRST ROUND OF SUB SUBSIDY. THIS PHASE ONE AND OTHER OUTCOMES FROM THIS FORBEARANCE PERIOD WOULD BE DEEP INTO
AFFORDABILITY AND EXTEND AN EXTENSION OF THE AFFORDABILITY RESTRICTION PERIOD. SO CURRENTLY THE AFFORDABILITY AS I MENTIONED IS ACROSS THE BOARD AT 60% AMI AS A RESULT
OF THE EXTERNAL SUBSIDY THAT THE PROJECT IS RECEIVING THEY WILL BE RESTRICTING FOUR UNITS AT 30%. AM I AND THEN THE BALANCE OF UNITS AT 50% AM I AND THEN THEY WILL BE NEGOTIATING THE
TERMINATION OF THOSE RESTRICTIONS PAST THE CRENT 2039 DATE. SO AND THAT'S WITH EXTERNAL FUNDERS. TO BE CLEAR, THE OTHER
OUTCOMES FROM THIS FORBEARANCE PERIOD WOULD BE FOR THE HRA AND COMMON BOND TO HAVE ADDITIONAL TIME TO LOOK INTO HOW TO POSITION THAT BEST POSITION ON THIS PROPERTY FOR CASH FLOW OUTCOMES AS WELL AS
OUTCOMES FOR THOSE EXISTING TENANTS AND FUTURE TENANTS HELPING THOSE PEOPLE STAY IN PLACE. PART OF THE WORK THAT WE ALREADY KNOW WILL OCCUR IN 2026 IS A TRANSITION OF PROPERTY MANAGEMENT FOR
THIS PROPERTY AS WELL AS ALL OF COMMON BONDS PROPERTIES THEY'LL BE HAVING THE COMMUNITY BUILDERS TAKE OVER PROPERTY MANAGEMENT IN JANUARY OF NEXT YEAR AND I BELIEVE THEY ALREADY HAVE HAD SOME
PROPERTIES TAKEN FROM THEM BY THE COMMUNITY BUILDERS, THE PROPERTY MANAGEMENT TAKEN AND WE'VE ALSO BEEN COMMUNICATING WITH COMMON BOND ON ADDITIONAL FUNDING OPPORTUNITIES THAT WE KNOW WILL BE OPENING IN 2026
AND PARTNERING WITH THEM TO PURSUE THOSE OPPORTUNITIES AS WE'VE DONE FOR AT LEAST ONE OF THE EXTERNAL SOURCES THAT THEY SECURED THIS YEAR. AND THEN WE DO WANT TO NOTE TO
THAT THAT COMMON BOND IS STILL LIKELY EVEN IF THIS FORBEARANCE IS APPROVED TO RETURN WITH A REQUEST FOR DEBT REDUCTION OR FORGIVENESS AT THE CONCLUSION OF THE FORBEARANCE PERIOD.
SO THERE IS A RECOMMENDED MOTION TO APPROVE THAT 12 MONTH FORBEARANCE AND I WILL REMAIN FOR QUESTIONS AND I'LL ALSO SAY WE HAVE A REPRESENTATIVE FROM COMMON BOND CAITLIN HERE WHO CAN ALSO
TAKE QUESTIONS AND PROVIDE BACKGROUND ON THE PROJECT QUESTIONS COMMENTS COMMISSIONER BREWER LATER YEAH
I DEFINITELY HAVE QUESTIONS ON THIS. HELP ME UNDERSTAND HOW THE LOAN IN 1991 CONTINUES TO HAVE
A FULL BALANCE IS IT BECAUSE THERE IS NO DEBT SERVICE REQUIRED DURING THIS TIME? THAT'S WHY THEY CONTINUE TO CARRY NOT ONLY THE PRINCIPAL BUT INTEREST OVER THE TIME PERIOD.
CHAIR AND COMMISSIONERS THAT'S RIGHT. THERE IS NO DEBT SERVICE REQUIREMENT FOR THIS LOAN AND IN MY REVIEW OF SOME OF OUR OTHER OLDER HOA LOANS FROM THIS THIS TIME PERIOD THAT'S
QUITE COMMON FOR OUR LOANS THAT WE WEREN'T REQUIRING ANNUAL BI ANNUAL REPAYMENTS OF THOSE LOANS. SO IT HAS JUST ACCRUED INTEREST FOR THAT ENTIRE SINCE 1991. SO THEN I'M INTERESTED TO UNDERSTAND HOW ORGANIZATION
AND PLAN TO PAY THESE BACK WHEN WE HIT THE THE PAYBACK PERIOD, DO THEY SET MONEY ASIDE EVERY YEAR TO PLAN TO PAY THESE BACK? DO THEY JUST CONTINUE TO PRETEND THESE DON'T EXIST?
LIKE THAT'S IT'S A LEGITIMATE QUESTION BECAUSE IF I PERSONALLY HAD A LOAN AND I DIDN'T HAVE TO PAY IT BACK I KNOW IT WOULD HAVE TO GET PAID BACK. SO I PLAN TO PAY IT BACK WHEN
IS DUE. SO HOW DO ORGANIZATIONS FUNCTION AND KEEP THIS IN KNOWING THAT THIS IS DUE BACK EVENTUALLY.
THANK YOU CHAIR AND COMMISSIONERS IF YOU'RE YEAH IF YOU WOULD BE HAPPY TO PROVIDE. YEAH THANKS. THIS IS A GREAT QUESTION AND A CHALLENGING ONE IN THE
AFFORDABLE HOUSING INDUSTRY. THE THE PLAN ALWAYS IS TO CASH FLOW A PROPERTY SO IT CAN AFFORD ITS DEBT PAYMENTS FOR THIS PARTICULAR PROPERTY AND
FOR A LOT OF AFFORDABLE HOUSING PROPERTIES. WE HAVE A FIRST MORTGAGE AND THAT IS THE REQUIRED DEBT REPAYMENT THAT WE HAVE TO PAY AND THEN WHEN WE CAN PAY THAT
OFF OR WHEN IT COMES DO LIKE FOR THE EXAMPLE IN BLOOMINGTON AND WHEN WE PAID OFF THE FIRST MORTGAGE THEN THE NEXT ONE IN LINE THEN WE LOOK AT THAT ONE AND WE INTEND TO PAY IT OFF WITH OUR CASH FLOW.
THE UNFORTUNATE REALITY OF A MOST AFFORDABLE HOUSING RIGHT NOW IS IT DOES NOT CASH FLOW PERIOD. SO WE DON'T HAVE FUNDS TO PUT TOWARDS DEBT REPAYMENT AND
THEN FURTHERMORE WE HAVE A SLEW OF DEFERRED MAINTENANCE AND REQUIRED NEEDS AT THE PROPERTY THAT ANY CASH FLOW THAT WE DO HAVE WE'RE TRYING TO PUT IT BACK INTO THE PROPERTY TO KEEP THAT THAT
PROPERTY LIVABLE. SO TO ANSWER YOUR QUESTION IS YES WE PLAN FOR IT BUT THE THE CONDITIONS ESPECIALLY IN THE LAST LIKE 5 TO 6 YEARS IS OUR
COSTS HAVE GREATLY OUTSTRIPPED OUR ABILITY TO MAKE MONEY THROUGH OUR CASH FLOW. THERE'S A FEW WAYS THAT WE CAN TRY TO MAKE MORE MONEY. ONE WOULD BE BY INCREASING
RENTS AGAIN FOR BLOOMINGTON FAMILY TOWNHOMES WE KNOW THE DEMOGRAPHICS OF THE PEOPLE THAT LIVE THERE. WE KNOW THEY CANNOT AFFORD TO PAY MORE MONEY SO WE CONTINUE TO KEEP THE RENTS LOW BECAUSE WE DON'T WANT TO PUT FURTHER
BURDEN ON THEM. SO IT'S A LITTLE BIT OF A YOU KNOW, PUSH AND PULL OF LIKE CAN WE CASH FLOW MORE SO WE CAN MAKE MORE MONEY, PUT MORE INTO THE PROPERTY OR PAY BACK DEBT OR DO WE STAY ALIGNED
WITH OUR MISSION AND TRY NOT TO COST BURDEN THE FOLKS THAT LIVE HERE? SO NORMALLY SINCE WE'RE A NONPROFIT WE TRY TO STAY ALIGNED WITH OUR MISSION AND WORK WITH OUR PARTNERS ON HOW
WE HOW CAN WE DEAL WITH THE DEBT THAT WE HAVE DO ON THE PROPERTY. EVERY PROPERTY IS DIFFERENT. THESE ARE LIKE THE CIRCUMSTANCES FOR BLOOMINGTON WHICH FOR A PROPERTY OF THIS SIZE IT'S JUST NOT VERY
COMPETITIVE FOR OTHER FUNDING SOURCES. SO IT'S IT'S JUST A TOUGH IT'S A TOUGH PROPERTY TYPE TO TRY TO GET FUNDS TO. DOES THAT ANSWER YOUR QUESTION?
YES. THANK YOU. MY NEXT QUESTION FOR STAFF IS I'M WONDERING HOW MANY OF THESE WE HAVE OUT THERE
THAT ARE COMING DUE THAT MIGHT POTENTIALLY RUN INTO THIS BECAUSE THE COMMON BOND IS HAVING THESE ISSUES I'M GUESSING THEY ALL ARE. HOW MANY DO WE HAVE OUT THERE REMAINING?
HOW MANY DO WE STILL EXPECT TO GET BACK AND HONESTLY DO WE JUST WORK THROUGH FORGIVENESS AND BE DONE WITH IT NOT TO DEAL WITH IT AGAIN IN ANOTHER
YEAR ESPECIALLY THESE LOANS THAT WE GAVE OUT IN THE 90S AND YOU SAID THAT THERE'S COMMON FOR US TO DO THIS WITH NO DEBT SERVICE ON IT.
THEY'RE ALL COMING DUE PROBABLY IN THE NEXT I HAVE A TEN YEARS HERE SO WE'RE GOING TO SEE A LOT OF THESE COME BACK WHERE WE AT WHAT IS THE RISK WE HAVE WITH THAT CHAIR AND COMMISSIONERS I OH YEAH
CHAIR COMMISSIONERS I CAN JUMP IN HERE. >> I WILL SAY THAT WE'VE ACTUALLY STARTED TO DIG INTO THIS ANALYSIS A LITTLE BIT WITH FINANCE MORE TO KIND OF UNDERSTAND OUR LONG TERM DEBT OBLIGATIONS AND WHAT THE STATUS OF THOSE LOANS. SO WE'RE CURRENTLY IN THE
PROCESS. THIS IS ONE OF THE LARGER LONG TERM VERY LONG TERM LIKE FROM THE 90 LIKE NINETY'S OR EARLY 2000S LOAN THAT WE HAVE LOANS THAT WE HAVE CURRENTLY STILL
ON THE BOOKS I THINK WE HAVE A MAYBE 3 OR 4 THAT ARE SMALLER THAT ARE AND COULD BE IN A SIMILAR CIRCUMSTANCE I BELIEVE THAT THOSE DO NOT COME DUE UNTIL MORE TOWARDS 2030 OR 2035.
SO WE'RE STARTING RIGHT NOW TO TRY TO GET A BETTER SENSE OF SOME OF THAT LONG TERM OUTLOOK. YOU CAN EXPECT MORE ADDITIONAL INFORMATION ON THAT BUT THIS IS ONE OF THE LARGER OUTSTANDING LOANS THAT WE HAVE
THAT WE'VE HAD FOR A LONG PERIOD OF TIME. AND ONE MORE NOTE IS JUST THAT WE DO ALSO HAVE THE AFFORDABLE HOUSING TRUST FUND LOANS WHICH ARE KIND OF IN A SEPARATE BUCKET AND SO WE HAVE PROVIDED SOME UPDATES ON THOSE OVER THE
PAST COUPLE OF MONTHS AND YOU CAN EXPECT TO PROVIDE CONTINUE UPDATES ON THOSE AND OTHER QUESTIONS.
COMMISSIONER WHO CAME? THANK YOU MADAM CHAIR. I GUESS MY QUESTION IS WE'RE DOING IT'S A YEAR THAT THEY'RE
ASKING FOR WHAT DO THEY SEE? WHAT DO YOU SEE CHANGING IN A YEAR OR TWO? NOT NECESSARILY COME BACK HERE. I JUST I'M CURIOUS WHAT IS OUR ODDS OF OF SEEING THIS SAME
ITEM BACK HERE NEXT YEAR? CHAIR AND COMMISSIONERS YEAH, A VERY GOOD QUESTION. THE ONE SOME OF THE COMPONENTS THAT COULD CHANGE FROM NOW TILL 22 SOME REFRESH 2026 ARE
SOME OF THESE OUTSTANDING APPLICATIONS FOR NEW SUBSIDY. SO ONE THAT I MENTIONED WAS A COMMUNITY STABILIZATION FUND THAT'S A STATE FUND. IT'S NOT LIKELY THAT THOSE
PROCEEDS OF THOSE SUBSIDIES WOULD BE SUITABLE TO REPAY THE INTEREST LOAN. IT'S MORE LIKELY THAT THOSE WOULD GO TOWARD THE REHABILITATION OF THE PROPERTY. THAT'S WHAT THE GRANT GRANTOR IS AWARDING THOSE FUNDS FOR.
BUT WITH THE AWARD OF THOSE SUBSIDIES AND WITH THE IMPROVEMENTS BEGINNING IN 2026 ,THERE MAY BE AN OPPORTUNITY TO REEXAMINE THE FINANCIAL
OUTLOOK OF THE PROJECT AND IDENTIFY HERE LIKE THEORETICALLY THE CASH FLOW DOES LOOK MORE POSITIVE WITH THAT KAITLYN MENTIONED IF A
PROJECT IS CASH FLOWING THAT IS WHEN IT'S POSSIBLE TO REPAY DEBT SERVICE FOR A LOAN. SO WHAT MAY CHANGE WOULD BE THE CASH FLOW SITUATION POSSIBLY. AND THEN ONE THING THE HOA
COULD EXPLORE IS IMPLEMENTING SOME SORT OF DEBT SERVICE FROM CASH FLOW FROM POSITIVE CASH FLOW. SO THE YEAR ALLOWS MORE EXAMINATION OF THE FINANCIALS OF THE PROJECT AFTER SOME
OF THESE CHANGES TAKE PLACE, DOES THAT MEAN THAT COMMON BOND WON'T RETURN FOR AN ASK FOR FORGIVENESS? IT CERTAINLY DOESN'T SO THAT THEY COULD COME BACK AND MAKE
THAT REQUEST CONTINUE AGAIN AND I'M SURE YOU KNOW, I JUST WANT TO BE TRUTHFUL THAT WE'VE BEEN IN THIS BEFORE WITH AN
AND I WANT TO FIRST STATE THAT I'M REALLY I'M REALLY HAPPY TO SEE REHAB, YOU KNOW, THE REHAB BECOMING A PRIORITY BECAUSE THAT'S WHAT KEEPS THESE PROPERTIES AND THEIR PROPERTIES GOING AND THEY'RE
VERY VITAL AND THEY'RE VERY IMPORTANT ESPECIALLY PROBABLY NOW MORE THAN EVER. SO I GUESS WITH WHAT HAPPENED PREVIOUSLY I JUST WANT TO MAKE SURE THAT YOU KNOW, IF THAT AWARD HAPPENS LIKE I WOULD
LIKE TO MAKE SURE THAT THE CITY IS COMMUNICATING AND HAVING THOSE CONVERSATIONS AND KEEPING UP YOU KNOW, KEEPING AND I WANT TO SEE LIKE AN EYE ON THE PROPERTIES TO MAKE SURE THE REHABS ARE HAPPENING.
BUT WE KIND OF HAD TO DO THAT WITH AND AND WE HAD TO STAY ON THEM AND I KNOWHIS IS A DIFFERENT ORGANIZATION BUT I JUST WANT TO MAKE SURE THAT YOU KNOW IF THIS AWARD HAPPENS AND THEY DO I WANT TO MAKE SURE THAT THESE REHABS ARE
HAPPENING BECAUSE THAT'S REALLY IMPORTANT AND THAT'S SOMETHING THAT I THINK IS KEY TO MY IDEA OF PASSING THIS AS THE REHAB AS THE IMPORTANT PIECE AND KEEPING THESE
LIVABLE AND SUSTAINABLE FOR YEARS TO COME. SO AND THE QUESTIONS COMMISSIONER MOUA I'LL TAKE
ONE MORE LAST QUESTION. WHAT IS WHAT HAPPENS IF WE DON'T APPROVE THIS? WHAT IS THE PROCESS AFTER THAT LET'S TURN COMMISSIONERS SO THAT IF WE DIDN'T APPROVE A
FORBEARANCE OR ANY OTHER ACTIONS RELATED TO THE LOAN, THEN ON DECEMBER 1ST THE LOAN WOULD BE UNPAID. THERE WOULD BE NO AVAILABLE PROCEEDS FROM THE ENTITY FOR
THE BLOOMINGTON FAMILY JOHN HOLMES ENTITY FOR REPAYMENT OF THE LOAN. SO THAT WOULD BE AN EVENT OF DEFAULT UNDER THE CURRENT AGREEMENT. SO JUST TO BRIEFLY TALK ON WHAT AN EVENT OF DEFAULT CONFERS IN TERMS OF POWER, IT
WOULD ALLOW THE HOA TO TAKE SOME PRETTY EXTREME ACTIONS SUCH AS TAKING CONTROL OF THE PROPERTY, FORECLOSE AND SELLING THE PROPERTY AND MAKING REPAIRS, CHARGING THOSE TO THE MORTGAGOR OR COLLECTING
RENT DIRECTLY FROM EXISTING TENANTS. SO THOSE ARE SOME POWERS THAT GET CONFERRED IN AN EVENT OF DEFAULT. THAT WOULD BE ONE SITUATION IF
THE IF THERE WAS NO REPAYMENT AFTER DECEMBER 1ST OF DETRIMENT TO COMMON BOND WOULD BE BASICALLY THEY WOULDN'T THEY LENDERS WOULD
LOOK VERY UNFAVORABLY ON AN EXISTING DEBT IN DEFAULT AND IT WOULD IT'S VERY LIKELY THAT LIKE PRIVATE LENDERS WOULD NOT BE WILLING TO ENGAGE WITH THE PROPERTY IN TERMS OF FINANCING
AND EVEN SOME OF THE PUBLIC LENDERS MAYBE WOULD NOT ENGAGE . SO WE'VE BEEN IN VERY CLOSE CONTACT WITH MINNESOTA HOUSING DURING THIS PROCESS. I MENTIONED ALIGNING WITH THEIR ACTIONS SO THEY HAVE
BEEN TALKING TO US TO UNDERSTAND WHAT OUR ACTIONS WILL BE SO THAT BACK AND FORTH WOULD BE THERE WOULD BE CHALLENGES IF THERE WAS AN AMOUNT OF DEFAULT FOR AN HFA TO BE WORKING WITH THIS PROPERTY SO IT COULD
JEOPARDIZE FOR EXAMPLE THEIR REQUEST FOR THAT 600 AND SOME THOUSAND THAT I MENTIONED EARLIER. SO THOSE ARE SOME OF THE THINGS THAT WOULD OCCUR IF WE TOOK NO ACTION TODAY AND THE LOAN WASN'T ABLE TO BE REPAID
ON THE FIRST AND THE OTHER QUESTIONS DISCUSSION NO I'VE CAN YOU MOVE TO THE SCREEN
THAT HAS THE MOTION SO I WILL NEED A MOTION TO ADOPT RESOLUTION NUMBER 2025 DASH
MELISSA OR WHO HAS JUST I, I CAN'T UNDERSTAND WHAT SHE'S JUST THIS OKAY OKAY SO A
RESOLUTION TO APPROVING FORBEARANCE FOR THE LOAN BETWEEN BLOOMINGTON FAMILY TOWNHOMES LIMITED PARTNERSHIP AND THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF BLOOMINGTON SO MAY I HAVE A MOTION SO MOTION MOVED BY COMMISSIONER OH MY MY
BRAIN MUA AND SECOND SECOND BY COMMISSIONER DOUBLING OR ALL IN FAVOR I I MOTION PASSES SIX
ZERO RIGHT NOW WE ARE MOVING ON TO DISCUSSION ITEMS AND ANY UPDATES FROM EACH AREA ADMINISTRATOR. >> YES CHAIR COMMISSIONERS I
HAVE A COUPLE OF UPDATES. ONE IS THAT IN YOUR PACKETS ARE ATTACHED TO THIS DISCUSSION ITEM IS A REPORT ABOUT THE OH HOW THE OPPORTUNITY HOUSING ORDINANCE
AND THE ORDINANCE REQUIRES THAT THERE IS A REPORT PROVIDED TO THE CITY COUNCIL BY OCTOBER 2ND OF EACH YEAR AND SO THIS YEAR WE PROVIDED THAT UPDATE AS A WRITTEN MEMO
INSTEAD OF A PRESENTATION. SO THAT MEMO WAS SENT TO THE CITY COUNCIL AND IS ALSO ATTACHED TO THE HRA PACKET FOR YOUR REFERENCE. A COUPLE OF THINGS TO HIGHLIGHT THERE.
ONE IS THERE ARE A NUMBER OF EXAMPLES OF PROJECTS IN THERE AND I JUST WANT TO RECOGNIZE THAT THE AUDIO HAS BEEN VERY EFFECTIVE ESPECIALLY IN THAT 60 TO 80% AMI RANGE WE
HAVE MET AND EXCEEDED OUR GOALS IN THAT THAT RANGE. I THINK WE'RE AT 164%. THERE CONTINUE TO BE GAPS AND WE HAVEN'T QUITE MET OUR GOALS IN THE 30 OR 50% AMI WHICH IS
VERY COMMON AS THE GAPS ON THOSE PRODUCTS ARE REALLY LARGE. THERE IS ALSO A REFERENCE TO THE NEXUS STUDY WHICH THIS WAS APPROVED AT THE JOINT PORTS AND HRA MEETING A FEW MONTHS
AGO. WE ARE EXPECTING A FULL REPORT ON THAT TO COME BACK EITHER LATE THIS YEAR OR EARLY NEXT YEAR AND THEN ALSO AS PART OF THE ORDINANCE THERE'S A REQUIRED COMPLIANCE PROCESS
AND SO THIS YEAR WE'RE IDENTIFIED TWO ISSUES THAT MIGHT NEED SOME MORE ATTENTION MOST LIKELY THROUGH EDUCATION AND COMMUNICATION WITH THE PROPERTY OWNERS, ONE OF WHICH IS JUST MAKING SURE WE HAVE A
CONSISTENT INCOME CERTIFICATION PROCESS AND ALSO IN MAKING SURE THAT THEY'RE ADDRESSING ALL THE FEES THAT THEY'RE CHARGING AS PART OF THE LEASES. ONE IS LIKE JUNK FEES AND SO I'M JUST MAKING SURE THAT THEY'RE AWARE THEY HAVE TO
COMMUNICATE THAT TO RENTERS. AND THEN THE LAST THING I'LL JUST NOTE IS THE AFFORDABLE HOUSING TRUST FUND IS ALSO INTRICATELY TIED TO THE AFFORDABLE THE OPPORTUNITY HOUSING ORDINANCE AND THAT IT
WAS A METHOD USED TO PROVIDE FUNDING TO REACH THESE GOALS. AND SO WE CONTINUE TO EXPLORE FUNDING OPPORTUNITIES FOR THAT AND THERE'S SOME NUMBERS IN THERE AROUND THE NUMBERS
OF UNITS THAT THE AFFORDABLE HOUSING TRUST FUND HAS SUPPORTED AND I'LL JUST READ THEM OUT BECAUSE IT'S GREAT TO SEE THIS 303 UNITS AFFORDABLE AT 60% AM I AND 142 UNITS
AFFORDABLE TO 50% OF THE ENTIRE AREA MEDIAN INCOME AND THEN 40 UNITS AFFORDABLE AT 30% AM I? SO THAT'S QUITE A FEW UNITS OVER THE PAST FIVE YEARS SO IF I PAUSE FOR ANY QUESTIONS KENNY IS ALSO HERE.
HE'S BEEN LEADING THE WORK ON THE SHOW AND THE COMPLIANCE PROCESS. WE CAN ANSWER ANY QUESTIONS THERE CAN BE QUESTIONS COMMENTS. >> COMMISSIONER MUELLER I'M TALKING A LOT TONIGHT
AFFORDABLE HOUSING TRUST FUND AND MY QUESTION COMES FROM THE LAST ITEM WE JUST HAD ARE WE INCLUDING DEBT SERVICE IN THESE NOW WE SHIFTED CHANGED FROM WHAT WE DID THE
90S AND THOUSANDS BECAUSE I WOULD HATE TO KICK THIS CAN DOWN THE ROAD AND IN 30 YEARS THE NEXT HRA IS DEALING WITH THIS JUST WANT TO MAKE SURE ESPECIALLY BECAUSE I KNOW THAT TRUST ONE IS EMPTIED OUT TO
SUPPORT ALL THESE PROJECTS AND WE'RE LOOKING FOR MORE CERTAIN RESOURCES TO CONTINUE TO SUPPORT HOUSING IN BOONTON SO I JUST WANT TO MAKE SURE THAT PIECES IS BEING TAKEN CARE OF NOW DURING COMMISSIONERS THE FUN ANSWER TO YOUR
QUESTION IS THAT ALL OF THE TRUST FUND LOAN DEALS ARE SLIGHTLY DIFFERENT BUT I WILL SAY THAT THEY'VE ALL BEEN STRUCTURED QUITE DIFFERENTLY THAN THOSE THIS EXAMPLE OF THIS LOAN FROM 1991. SO THERE ARE SOME LOANS THAT
HAVE JUST A DOLLAR AMOUNT THAT THEY HAVE TO REPAY BIANNUALLY AND SO IT'S VERY CLEAR SOME THE AMOUNT IS BASED OFF OF THEIR CASH FLOW SO THEY DEMONSTRATE THAT THEY HAVE OR DO NOT HAVE CASH FLOW AND MAKE
A PAYMENT ACCORDINGLY. MANY OF ACTUALLY ALL OF THE LOANS BUT ONE HAVE TIFT DISTRICTS THAT PROVIDE REVENUE THAT GO TOWARD THE REPAYMENT OF OUR OBLIGATIONS.
SO THERE ARE DIFFERENT WAYS THAT THESE LOANS GET REPAID BUT I WILL SAY THAT THEY WILL HAVE MORE ROBUST DEBT SERVICE REQUIREMENTS CERTAINLY THAN THE PLAN THAT WE'VE BEEN TALKING ABOUT TODAY.
ANY OTHER QUESTIONS OR COMMENTS? I DO HAVE A COUPLE OTHER UPDATES TO GIVE THAT WAS THE LONGEST ONE. THESE LAST ONES ARE QUITE QUICK.
THERE IS A BOARD AND COMMISSION CONNECTS CELEBRATION OR EVENT. IT'S AN OPPORTUNITY FOR ALL OF THE BOARDS AND COMMISSIONS TO GET TOGETHER THAT IS PLANNED FOR MONDAY DECEMBER
1ST 6 P.M. AND YOU SHOULD SEE SOME ADDITIONAL EVENT INFORMATION COMING YOUR WAY SOON BUT YOU CAN GO AHEAD AND MARK YOUR CALENDARS FOR THAT DATE IN EVENT AND IF YOU'D LIKE TO ATTEND AND THEN YOU KNOW ANN HAS COME UP A COUPLE
OF TIMES IN THE DISCUSSION TODAY AND WHEN THEIR MOST RECENT ITEM ONE OF THE THINGS THEY WERE REQUESTING WAS SUPPORT TO APPLY FOR $2 MILLION TO THE LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FROM THE MET COUNCIL
AND I'M HAPPY TO ANNOUNCE THAT THEY WERE RECOMMENDED TO RECEIVE THAT AWARD. SO JUST ANOTHER WAY THAT WE'RE CONTINUING TO SEEK OTHER FUNDS TO SUPPORT SOME OF THE CHALLENGES THESE AFFORDABLE PROPERTIES ARE EXPERIENCING.
AND THEN THE LAST UPDATE IS JUST THAT WE ONLY HAVE ONE MEETING EACH IN NOVEMBER AND DECEMBER. SO THE NOVEMBER MEETING IS ON THE 25TH WHICH IS THE WEEK OF THANKSGIVING SO THAT WILL BE OUR NEXT MEETING. SO JUST A HEADS UP THAT IT'S
ANOTHER MONTH AWAY AND THEN WE HAVE ONE AND DECEMBER 9TH AND THEN THAT WILL BE IT FOR THE YEAR. SO LAST MEETINGS HERE AT THE END OF THE YEAR THAT'S WHY I
HAVE FOUR UPDATES RIGHT AND THE SECOND DISCUSSION ITEM ON THE 2026 SIX BUDGET AND FINAL LEVY DISCUSSION.
YES, I WILL GET THE CAN I GET THE PRESENTATION PULLED UP? YEAH. YES. OH YES
. OKAY GOOD. SO I KNOW THIS WILL BE A DIFFICULT CONVERSATION WE'VE HAD A COUPLE OF DIFFICULT CONVERSATIONS ABOUT THE BUDGET SO FAR AND THEN THE NEXT
ACTION IS TO DO A FINAL APPROVAL IN AT OUR NEXT MEETING IN NOVEMBER. SO THIS IS ANOTHER OPPORTUNITY FOR THE BOARD TO DISCUSS THE FINAL LEVY AMOUNT. SO THE PRELIMINARY LEVY WAS
APPROVED IN AUGUST BY THE HRA AND THEN SEPTEMBER BY THE CITY COUNCIL AT THE MAXIMUM AMOUNT WHICH IS THAT 3.2 MILLION NUMBER AND A KEY PART OF THE DISCUSSION WAS CONCERN AROUND LOSS OF FEDERAL FUNDING OR
FEDERAL IMPACTS. AND SO THE DECISION AT THAT TIME WAS THAT IT WAS MOST STRATEGIC TO MAXIMIZE THE LEVY BECAUSE THE PRELIMINARY LEVY ALLOWS YOU TO DECREASE BUT NOT TO INCREASE.
AND SO THAT WAS APPROVED. SO THE DISCUSSION TONIGHT WILL FOCUS ON WHERE WE ARE WITH THE FEDERAL BUDGET AND WHAT THE BOARD WOULD LIKE TO TRY TO DO FOR THE FINAL LEVY AMOUNT. I'LL ALSO INCLUDE A LITTLE BIT
OF INFORMATION WE DID A PRIORITY BASED BUDGETING PROCESS THIS YEAR AS THE CITY AND I'LL INCLUDE SOME SOME TAKEAWAYS AND LEARNINGS FROM THAT. AND THEN THIS IS JUST A QUICK I KNOW WE'RE ALL VERY FAMILIAR
WITH THE HRA MISSION CREATING A STABLE AND INCLUSIVE COMMUNITY THROUGH SAFE AND DIGNIFIED HOUSING CHOICES AND THEN THERE ARE A NUMBER OF DIFFERENT WAYS THAT WE USE THAT SUPPORTING THE WAY WAYS THAT WE ACCOMPLISH THAT PROMOTING HOUSING, STABILITY,
EDUCATION AND HOMEOWNERSHIP PATHWAYS, HOUSING DEVELOPMENT AND ALSO PRESERVING EXISTING HOUSING. AND THEN AGAIN ANOTHER REMINDER THIS IS SOMETHING WE'VE BEEN OVER QUITE A FEW TIMES.
THIS IS THE BUDGET CUBE THAT IS OFTEN PRESENTED WITH THE BUDGET. I WON'T SPEND A LOT OF TIME ON IT SINCE WE'VE BEEN OVER IT A FEW TIMES. OKAY AND PRIORITY BASED BUDGET.
SO THIS WAS A PROCESS THAT WAS CONDUCTED CITYWIDE FOR THE FIRST TIME IN 2025. ESSENTIALLY IT TOOK CITY PROGRAM PROGRAMS CITYWIDE AND EVALUATED THEM BASED ON COMMUNITY NEED THE COST OF THE PROGRAM, THE IMPACT AND THE
ALIGNMENT WITH SOME OF OUR COMMUNITY IDENTIFIED GOALS AND BLOOMINGTON TOMORROW TOGETHER AND THE IDEA WAS TO GENERATE USED DATA TO GENERATE IDEAS FOR COST EFFICIENCIES SO HRA
PROGRAMS ALONG USING THE SPECTRUM AND THESE CRITERIA WERE GENERALLY SCORED AS HIGH IMPACT SOMEWHERE THERE WERE KIND OF FOUR QUADRANTS HIGH HIGHER LOW IMPACT AND HIGHER LOW COST AND SO THE HRA
PROGRAMS WERE MOSTLY HIGH IMPACT. THERE WAS ONE THAT WAS LOW IMPACT, LOW COST AND PROVIDING EDUCATION FOR HOMEOWNERS AND THEN THEY VARIED IN TERMS OF THEIR COST IMPACT. BUT I MEAN IT IS VERY
STRATEGIC WORK AND HOUSING IS A CRITICAL ELEMENT OF SOME OF THOSE COMMUNITY NEEDS AND STRATEGIC PLANS AND SO OUR OUR PROGRAMS DID SCORE VERY HIGH IN TERMS OF IMPACT SOME OPPORTUNITIES THAT WERE
IDENTIFIED THROUGH THIS PROCESS. THERE WERE A COUPLE BROAD BUCKETS OF AREAS TO EXPLORE FOR COST EFFICIENCIES AND SAVINGS IN THE FUTURE TECHNOLOGY AND AUTOMATION
CONTINUES TO BE ONE LIKE WHAT CAN WE AUTOMATE AND PUT ONLINE IN ORDER TO REDUCE STAFF TIME AND EFFORT AND SMOOTH ACCESS FOR SOME OF THESE TOOLS TO THE COMMUNITY ALSO DIVERSIFYING
REVENUES SO SOME IDEAS WERE AROUND REEXAMINING FEE STRUCTURES FOR EXAMPLE WHAT ARE WE CHARGING DEVELOPERS AS A DEVELOPER FEE? WHAT ARE WE CHARGING FOR TAX INCREMENT FINANCING FEES, OUR HOUSING IMPROVEMENT AREA FEE
THESE ALL HAVE ITS APPLICATIONS ALSO HIGH FEES ASSOCIATED SO WE COULD LOOK AT DIFFERENT WAYS TO CHANGE THOSE FEES IN ORDER TO BRING IN MORE INCOME. AND THEN THE LAST ONE WAS SEEKING EXTERNAL FUNDING
SOURCES THROUGH GRANTS AND PARTNERSHIPS. I WILL SAY THAT THE HRA ALREADY EXCELS AT THIS. I DO BELIEVE SO HERE ON THE NEXT SLIDE THAT'S THE FIRST BULLET WHICH IS ABOUT 72%
OF OUR ANTICIPATED 2026 BUDGET IS FROM EXTERNAL SOURCES. SO WE WE REALLY ARE VERY EFFECTIVE IN TERMS OF GETTING NOT ONLY FEDERAL BUT ALSO STATE AND REGIONAL GRANTS AND
AND YOU KNOW MAKING THE MOST USE OF THE HRA LEVY DOLLARS SOME OTHER EXAMPLES OF EFFICIENCIES THAT WERE THE HRA IS ALREADY WORKING ON OR ALREADY IMPLEMENTING IS
CROSS-TRAINING STAFF IN ORDER TO IMPLEMENT HOUSING CHOICE VOUCHER SERVICES AND WE'VE ALREADY DONE THIS OUR STAFF ARE ALL ABLE TO RESPOND TO BASIC INQUIRIES ABOUT HOUSING CHOICE VOUCHERS.
WE GET A LOT OF WALK INS, A LOT OF PEOPLE ASKING ABOUT HOW CAN THEY APPLY OR WHAT ARE THOSE OPPORTUNITIES AND SO MAKING SURE THAT WE HAVE ALL STAFF WHO ARE AVAILABLE TO ANSWER THOSE TYPES
OF QUESTIONS ALSO CENTRALIZING VARIOUS SERVICES LIKE PROCUREMENT, BUDGETING, ONBOARDING OFF BOARDING, THAT TYPE OF THING BECAUSE THE HRA IS EMBEDDED INTO THE CITY'S COMMUNITY DEVELOPMENT
DEPARTMENT, THERE ARE A LOT OF EFFICIENCIES THAT WE ARE ALREADY ACCOMPLISHING IN THESE CATEGORIES BECAUSE OF OUR AGREEMENT WITH THE CITY AND THERE ARE VARIOUS THINGS ESPECIALLY LIKE THE BUDGET IS
A GREAT EXAMPLE OF WE DO HAVE AN HRA FUNDED ACCOUNTANT BUT THAT ACCOUNTANT ALWAYS ALSO WORKS WITHIN THE LARGER CITY SYSTEM AND SO THERE ARE A LOT OF EFFICIENCIES THAT COME ALONG WITH THAT TYPE OF MODEL
AND THEN SOME AREAS THAT WERE IDENTIFIED FOR CONTINUOUS IMPROVEMENTS, SOME REGIONAL RESOURCES SHARING AND COORDINATING WAS OUR RECOMMENDATION. SO WE HAVE STARTED TO EXPLORE
THIS ALREADY. I THINK THE PRIORITY BASED BUDGETING KIND OF EMPHASIZE SOME MORE OPPORTUNITIES HERE, SOME THINGS THAT WE'RE CURRENTLY DOING AND ARE JUST IMPLEMENTING NOW OR ARE STILL
IN THE EXPLORATION STAGE ARE APOLOGIZE FOR NOT WRITING THAT OUT IN PARTNERSHIP WITH OUR BUILDING AND INSPECTION DIVISION WITHIN THE CITY. SO FOR THE HOUSING CHOICE VOUCHERS WE HAVE TO DO AN
INSPECTION EVERY OTHER YEAR AND SO AS AN EFFICIENCY WE ARE COLLABORATING WITH OUR INSPECTIONS TEAM TO PROVIDE INSPECTIONS OVER THE WINTER WHICH HELPS THE STAFFING AND WE WERE ALSO LOOKING INTO CONTRACTS
CONTRACTING THAT OUT BUT HAVING THE ABILITY TO WORK WITHIN OUR OWN OUR CITY DURING THEIR SLOW SEASON IS A GOOD ANOTHER GOOD EFFICIENCY. WE'RE ALSO EXPLORING SOME
PARTNERSHIP OPPORTUNITIES RIGHT NOW WE WE'RE DOING SOME HOMEBUYER COUNSELING WHERE WE CONTRACT DIRECTLY WITH SOME ORGANIZATIONS BUT WE MAY HAVE AN OPPORTUNITY TO DO A MORE REGIONAL PARTNERSHIP THAT
WOULD ALLOW US TO WORK WITH MORE AGENCIES IN A MORE EFFECTIVE MODEL FOR OUTREACH AND THEN EXAMINING FEE STRUCTURES. I MENTIONED THIS BRIEFLY BUT
TIFF FEES THIS IS SOMETHING WE WERE LOOKING AT THIS YEAR DOES DO OUR TEST FEES COMPARE WITH OTHER CITIES? THEY DO. ARE THERE OTHER DEVELOPMENT FEES THAT WE COULD BE CHARGING THAT'S UNDER CONSIDERATION?
WE ALSO ARE CONSIDERING WE MADE SOME CHANGES THIS YEAR TO OUR SINGLE FAMILY REHAB LOAN PROCESSING AND MAKING SURE THAT SOME OF THE HRA COSTS THAT ARE ASSOCIATED WITH
PROCESSING THOSE LOANS ARE COVERED THROUGH THE LOAN. BUT THERE'S AN OPPORTUNITY TO DO A LITTLE BIT MORE EXPLORATION HERE AND JUST MAKE SURE THAT WE'RE COVERING THE ADMINISTRATION OF THIS PROGRAM THROUGH FEES THAT COULD BE
THAT COULD BE PART OF THE TOTAL LOAN AMOUNT SO IT WOULDN'T NECESSARILY COME OUT OF THE HOMEOWNER'S POCKET OR IT COULD IF THAT WERE AN OPTION. WE WANTED TO EXPLORE AND THEN FEES ASSOCIATED WITH SERVICES ON OUR OWN SINGLE FAMILY
RENTAL HOME. SO BECAUSE WE OWN SO MANY HRA PROPERTIES THERE MAY BE OPPORTUNITY TO EXPLORE SOME LIKE ENHANCED SERVICES THAT RESIDENTS COULD OPT INTO AND
PAY FOR LIKE MOVING SERVICES OR THINGS LIKE THAT. THIS IS SOMETHING TO EXPLORE HASN'T IMPACTED THE BUDGET PROPOSAL FOR THIS YEAR BUT IS SOMETHING THAT WE'LL BE LOOKING INTO OVER THE COURSE OF THE NEXT YEAR AND THEN THE
LAST ONE IS THIS AUTOMATION AND PROCESS REDESIGN BUCKET AND SO WE'VE BEEN WORKING ON GETTING SOME FORMS AND THINGS LIKE THAT ONLINE TO INCREASE EFFICIENCIES AS WELL.
THIS IS JUST A NOTE I PRESENTED THE SLIDE PREVIOUSLY JUST SOME MORE INFORMATION ABOUT THE THINGS THAT WE'RE DOING IN ORDER TO MAKE SURE THAT WE'RE BEING EFFECTIVE WITH OUR HRA DOLLARS. SO SOME OF THE THINGS THAT WEREN'T COVERED IN THE SLIDE
BEFORE ARE YOU KNOW, THINGS LIKE I'M BEING VERY CAREFUL AND THOUGHTFUL ABOUT OUR REPAIR STRATEGY FOR A VERY OWNED PROPERTY IS DEVELOPING A CAPITAL IMPROVEMENT LONG TERM PLAN YOU KNOW PAUSING ON
PROCESSING LOANS WHEN WE HAD REACHED THE MAXIMUM AMOUNT OF FUNNG AND VARIOUS OTHER THINGS ALONG THOSE CATEGORIES . OKAY. AND THEN I'LL GET INTO THE
FEDERAL FUNDING UPDATE. SO AS OF LAST WEEK AND THIS WEEK BECAUSE IT HAS NOT CHANGED SINCE LAST WEEK, THERE ARE SEVERAL PROPOSALS AT THE
HOUSE AND SENATE. SO THE PRESIDENT'S BUDGET TO PROPOSE REALLY DRASTIC CUTS TO OUR TWO LARGEST FEDERAL FEDERALLY FUNDED PROGRAMS HOUSING CHOICE VOUCHERS AND
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS. SO THE PRESIDENT'S BUDGET PROPOSAL PROPOSED CUTTING CDBG COMPLETELY AND REDUCING HCV
FUNDING BY LIKE $26 BILLION OUT OF ABOUT 32 THE HOUSE AND SENATE AND THEIR APPROPRIATIONS BILLS HAVE NOT COME ANYWHERE CLOSE TO THAT LEVEL OF CUTS AND SO THE
CURRENT THIS CHART SHOWS WHAT WAS THE LEVEL THAT WAS FUNDED IN 2025 AND VERSUS WHAT IS PROPOSED TO BE FUNDED FOR 2026 AT BOTH THE HOUSE AND THE SENATE.
AND SO YOU CAN SEE CDBG IS A LITTLE BIT OF AN INCREASE BUT STILL FAIRLY CLOSE TO THE 2025 LEVELS AND HCV ALSO BIG
DIFFERENCES IN THE HCV FUNDING FUNDING PROPOSAL WHAT THE HOUSE AND THE SENATE SO THE HOUSE PROPOSAL INCLUDES SOME REDUCTIONS TO ADMIN WHICH IS SOMETHING THAT WOULD INCREASE
NOT NECESSARILY RENT PAYMENTS BUT COULD FALL ON THE HRA BUDGET BECAUSE WE ARE CURRENTLY USING ALL OF OUR ADMIN DOLLARS. SO IF THOSE DOLLARS ARE LESS AVAILABLE THEN THE HRA WOULD
HAVE TO COVER THE GAP TO DO JUST TO MAINTAIN OUR EXISTING PROGRAMING. THE SENATE PROPOSAL ESSENTIALLY WITH RISING COSTS IT'S PRETTY SIMILAR. WE WOULDN'T BE ABLE TO EXPAND
SERVICES BUT IT WOULD ALLOW US TO MAINTAIN THE SERVICES THAT WE HAVE PROVIDED THIS YEAR AND THESE ARE BILLIONS. JUST TO BE CLEAR, ANOTHER KEY
CONSIDERATION I KNOW WITH SOME CONCERNS AROUND THE CUTS BECAUSE BECAUSE OUR LARGEST FEDERALLY FUNDED PROGRAM IS RENTAL ASSISTANCE I'VE TRIED TO IDENTIFY HERE WHAT ARE SOME
OTHER FUNDING SOURCES THAT MIGHT BE AVAILABLE FOR RENTAL ASSISTANCE IF THOSE BUCKET IF THAT BUCKET OF FUNDING IS CUT . SO THESE ARE THESE FIRST TWO
LOCAL AFFORDABLE HOUSING AID LARGER AND CDBG ARE BOTH CITY LIKE CITY GRANTS AND SO THERE IS AN APPROVED FRAMEWORK THE HRA IS DELEGATED ABILITY TO
ADMINISTER THESE FUNDS WITHIN A FRAMEWORK SO WE WOULD HAVE THE OPPORTUNITY TO WE COULD GO BACK AND SUGGEST A DIFFERENT FRAMEWORK FOR RENTAL ASSISTANCE IF NEEDED.
AND SO THIS CURRENT USE IS WHERE THOSE DOLLARS ARE CURRENTLY ALLOCATED. SO FOR LARGER IT WOULD BE THOSE THAT MONEY IS SLOTTED TO GO TOWARDS HOMEOWNERSHIP INITIATIVES AND DEVELOPMENT OR REDEVELOPMENT PROJECTS IT
WOULD BE TAKING THE MONEY FROM THAT POT AND MOVING IT INTO RENTAL ASSISTANCE FOR CDBG GOES MOSTLY INTO OUR RENTAL REHAB LOAN PROGRAM BUT WE ALSO FUND THE PUBLIC SERVICES ITEM
THAT WAS BEFORE US TODAY ADMINISTRATION OF VARIOUS PROGRAMS AND SOME AFFORDABLE HOUSING ACTIVITIES AND SO WE COULD TAKE THE FUNDING THAT'S ALLOCATED FOR THOSE PROGRAMS AND MOVE IT INTO A RENTAL
ASSISTANCE PROGRAM AND THEN THE LAST ONE IS THAT WITH THIS IS NOT A CITY FUNDED GRANT. THIS IS BASICALLY AN ADJUSTMENT TO HOW WE COULD USE
DOLLARS THAT ARE GIVEN TO US THROUGH THE VOUCHER PROGRAM BASICALLY WE GET PAID FOR BOTH THE RENTAL ASSISTANCE PAYMENTS AND THE ADMINISTRATION OF THOSE DOLLARS BUT WE CAN
USE ADMIN DOLLARS FOR RENT PAYMENTS SO WE COULD MOVE OUR ADMIN DOLLARS OVER TO MAKE RENT PAYMENTS IF THE JURY LEVY WERE USED TO FILL THAT GAP OF ADMIN. SO THESE ARE THE MAIN SOURCES
THAT I HAVE IDENTIFIED AS OPPORTUNITIES. IF THERE WERE SIGNIFICANT REDUCTIONS OR CUTS TO THE FEDERAL BUDGET. ALL RIGHT.
AND THEN JUST A QUICK NOTE ON NEXT STEPS THE HRA BOARD MEETING TO APPROVE THE FINAL LEVY IS OUR NEXT MEETING NOVEMBER 25TH AND THEN THE COUNCIL VOTES. WE DO HAVE TO MAKE A FINAL VOTE AT THAT MEETING AND THE
COUNCIL VOTED TO APPROVE THE LEVY AND ACCEPT THE BUDGET ON DECEMBER 22ND. SO THOSE ARE THE NEXT STEPS AND WITH THAT HERE IS THE INFORMATION ABOUT THE NUMBERS
THAT WE HAD DISCUSSED PREVIOUSLY. THE CURRENT RECOMMENDATION AND PRELIMINARY LEVY AMOUNT IS THAT 3.2 MILLION WHICH WOULD ALLOW US TO MAXIMIZE OUR OUR FLEXIBILITY TO RESPOND TO FEDERAL CUTS AND ALSO DO SOME
OF THOSE LONG TERM STRATEGIC INVESTMENTS AND THINGS LIKE HOUSING DEVELOPMENT AND THINGS LIKE THAT. AND THE OTHER OPTION THAT THE BOARD COULD CONSIDER IS THIS $2.7 MILLION AMOUNT THAT WE DISCUSSED PREVIOUSLY.
THAT'S ALL WE HAVE FOR PRESENTATION. HAPPY TO ANSWER QUESTIONS AND THIS IS A DISCUSSION ITEM NO VOTING BUT THE GOAL WOULD BE TO GET SOME CLARITY IN TERMS OF WHAT THE BOARD WOULD LIKE
TO APPROVE AT THE NEXT MEETING. YEAH, OPEN FOR QUESTIONS. COMMISSIONER CARTER THANK YOU CHAIR SO I JUST WANTED TO BE CLEAR SO WITH THE ALTERNATIVE
OPTION THAT WOULD BE KIND OF KEEPING THINGS STEADY STATE AND THEN WE WOULD HAVE THE OPTION IF FEDERAL FUNDING DECREASE OF TAPPING INTO THOSE OTHER THREE SOURCES THAT YOU
LAID OUT IN THAT TABLE. YES, THAT'S CORRECT. YEAH. ALL RIGHT. THANK YOU. AND OTHER QUESTIONS COMES COMMISSIONER WHO CAME? YEAH, I JUST LIKE TO FOLLOW UP.
I KNOW WHEN WE HAD DISCUSSED THIS BEFORE THERE HAD BEEN KIND OF A CONVERSATION ON THE PORT AND WHAT THEY WERE GOING TO BE DOING WITH THEIR LEVY IS THERE ANY FEEDBACK ON WHERE THEY'RE AT? BECAUSE I KNOW WE HAD KIND OF TALKED ABOUT THE POSSIBILITY OF THEM PULLING
BACK A LITTLE BIT TO ALLOW US TO PULL FORWARD A LITTLE BIT. SO I'M JUST KIND OF GETTING AN IDEA OF WHERE THAT MIGHT BE. YEAH. CHAIR AND COMMISSIONERS, I HAVE TO CHECK ON THE CURRENT STATUS OF THOSE DISCUSSIONS. I KNOW THAT THEY PROPOSED AN
INCREASE BUT THEY DID NOT PROPOSE MAXIMIZING THEIR LEVY SO I COULD I COULD FIND THE THE NUMBER FOR YOU.
COMMISSIONER CARTER THANK YOU. THE 2.769 IS THAT A SLIGHT INCREASE OR IS THAT REALLY JUST THINK CHAIR COMMISSIONERS THAT OUR CURRENT LEVY THIS
YEAR WAS 1.9 SO THIS IS STILL A PRETTY SIGNIFICANT INCREASE. YES. OKAY. SO STILL A SIGNIFICANT INCREASE BUT IT'S NOT MAXING IT OUT, CORRECT? TO ME, YES. OKAY.
THANK YOU. THEIR QUESTIONS COME AS COMMISSIONER WHO CAME I DON'T REALLY HAVE A QUESTION. I JUST WANT TO CAN I MAKE A
LESS YOU KNOW THIS IS JUST IT'S TOUGH AND WE DON'T KNOW WHERE THINGS ARE GOING. AND I JUST WANT TO REMIND EVERYBODY THAT THAT THIS IS NOT JUST ABOUT THIS YEAR.
THIS IS ABOUT BUILDING FOR THE FUTURE AS WELL. THIS IS ABOUT, YOU KNOW, SETTING THE HOA BOARD UP FOR THE FUTURE. AND I UNDERSTAND THIS MAY NOT BE THE TIME TO TALK ABOUT IT
BUT 20 YEARS AGO WAS THE TIME TO TALK ABOUT IT. NOBODY WANTED TO TALK ABOUT IT AND HERE WE ARE WITH INFRASTRUCTURE ISSUES WITH WITHIN THE CITY JUST IN GENERAL ALL BUILDINGS BESIDES REALLY CIVIC PLAZA BUT
YOU KNOW SO I JUST AND I'M NOT SAYING THAT WE SHOULD I JUST WANTED TO BE SOMETHING THAT WE'RE CONSIDERING AND WE HAVE THAT CONVERSATION OF THE FACT THAT I JUST WANT TOET THAT UP FOR THE FUTURE. I DON'T WANT TO SEE US
BACKTRACKING AND I DON'T WANT TO SEE A BOARD FIVE YEARS FROM NOW STRUGGLING BECAUSE WE, YOU KNOW, DIDN'T SET IT UP FOR THAT. AND I'M NOT SAYING THAT THIS
YEAR'S THE YEAR TO DO IT. I'M JUST SAYING I, I WANT TO BE VERY HONEST IN THE FACT THAT WITH THE WAY THINGS ARE SITTING RIGHT NOW FEDERALLY, I DON'T SEE IT GETTING BETTER.
SO I THINK THIS IS A HARD CONVERSATION TO HAVE BUT IT'S ALSO A CONVERSATION THAT WE HAVE TO THINK ABOUT THAT IT'S NOT JUST NECESSARILY GOING TO IMPACT THIS YEAR. IT POTENTIALLY COULD IMPACT
YOU KNOW, THIS NOT JUST THIS COMING UP YEAR BUT YEARS IN ADVANCE OR YEARS AHEAD OF WHAT WE COULD BE SEEING. I THINK WE ALREADY KNOW SNAP BENEFITS ARE BEING CUT.
WE ALREADY KNOW THAT THAT'S GOING TO ALSO IMPACT RENTAL ASSISTANCE. IT'S GOING TO IMPACT HOMEBUYERS. IT'S GOING TO AFFECT MORTGAGES . I MEAN IT'S IT'S GOT A HUGE IMPACT AND THAT'S A BIG
CONCERN FOR ME. I'M WORRIED FOR OUR COMMUNITY . SO JUST SOMETHING I JUST WANTED TO GET THAT STATE THAT OF THAT'S WHERE MY HEART IS RIGHT NOW. IT'S REALLY HARD IT'S IT'S A
HARD PLACE TO BE BUT I JUST REALLY WANT TO MAKE SURE ESPECIALLY THESE NEXT FEW YEARS WHERE WE'RE PREPARING OURSELVES FOR ANYTHING AND ANYTHING THAT COULD HAPPEN.
SO THANK YOU. LIKE COMMISSIONER CARTER THANK YOU CHAIR. I AGREE WITH YOU ON THAT. I MEAN I THINK IT'S JUST A REALLY TOUGH POSITION TO BE
IN TO UNDERSTAND THAT THERE ARE ALREADY GREAT NEEDS NOW AND IT'S PROBABLY JUST GOING TO GET WORSE AND YOU KNOW, WE WANT TO BE GOOD STEWARDS
OF THE DOLLARS AND MAXIMIZE THEM AS MUCH AS POSSIBLE. I ALSO DO THINK JUST FROM THE COUNCIL PERSPECTIVE LIKE A COUNCIL MEMBER PERSPECTIVE,
YOU KNOW WE ARE LOOKING AT LEVY INCREASE LIKE TAX LEVY INCREASE NOT ALL UTILITIES ARE GOING UP BUT THERE ARE UTILITY INCREASES. WE HAVE OUR FRANCHISE FEES I
MEAN LIKE WE JUST HAVE ALL OF THESE THINGS WHICH MOST OF THEM ON AN ANNUAL BASIS GO UP A LITTLE BIT BUT WE DO HAVE SOME PRETTY WE WE'VE HAD AND WE WILL CONTINUE TO HAVE SOME
PRETTY SUBSTANTIAL LEVY INCREASES AS WE BUILD OUT A NEW FIRE DEPARTMENT AND YOU KNOW MAKE A LOT OF THOSE INVESTMENTS THAT QUITE FRANKLY HAD BEEN PUT OFF BY PREVIOUS CITY COUNCILS AND SO WE'RE
DOING THAT HARD WORK NOW IN A TIME THAT IS DIFFICULT AND SO I DO THINK WE JUST HAVE THIS REALLY BIG CHALLENGE IN FRONT OF US TO DO OUR BEST AS THE
HRA TO MEET NEEDS AND REALLY CONSIDER THAT WITH EVERY INCREASE IN A LEVY THAT'S A DOLLAR OUT OF SOMEBODY'S POCKET, RIGHT? AND PEOPLE IT'S SENIORS, IT'S
PEOPLE LIVING WITH DISABILITIES. IT'S PEOPLE WITH YOUNG KIDS WHO ARE GOING TO FEEL THE TAX LEVY INCREASES TOO. AND SO IT'S JUST IT'S A BALANCE. RIGHT. AND WE'VE TALKED ABOUT THIS BEFORE.
SO I PERSONALLY I DO THINK WE ACTUALLY NEED I THINK WE NEED TO MAKE SOME WE MIGHT NEED TO MAKE SOME TOUGH DECISIONS IN THE NEXT YEAR OR TWO. WE MIGHT NEED TO PUSH PAUSE ON SOME THINGS.
IT'S NOT SOMETHING THAT YOU KNOW, WE I WOULD WANT TO DO BUT IF IT COMES DOWN TO, YOU KNOW, NEEDING TO MAKE SURE THAT PEOPLE ARE STAYING
IN THEIR HOMES IN THE IMMEDIATE FUTURE, I THINK THAT'S WHAT WE SHOULD PRIORITIZE. SO I PERSONALLY I'M LEANING TOWARD THE ALTERNATIVE OPTION. SO INCREASING THE LEVY BUT NOT MAXING IT OUT.
I THINK WE HAVE ROOM IN BUCKETS, OTHER BUCKETS WHERE WE CAN LEVERAGE THOSE DOLLARS IN THE CHANCE THAT WE NEED TO WHETHER IT'S LARGER OR YOU KNOW AND IT MIGHT MEAN
THAT WE'RE NOT INVESTING IN A NEW DEVELOPMENT IN THE NEXT YEAR OR TWO. BUT I THINK THAT THAT MIGHT JUST HAVE TO BE A SACRIFICE THAT WE MAKE TO TO MANAGE LIKE
COSTS IN THE LEVY INCREASE. BUT SO THAT'S KIND OF WHERE MY THINKING IS OBVIOUSLY LOOKING FORWARD TO HEARING OTHER PEOPLE'S OPINIONS. COMMISSIONER YOU SAID YEAH, I
JUST WANTED TO COMMEND SARA AND THE REST OF THE STAFF ON FINDING ALTERNATIVE POTENTIAL SOURCES THAT WE MIGHT PULL OUT OF ESPECIALLY WITH SO MUCH UNPREDICTABILITY.
ME PERSONALLY I'M MORE COMFORTABLE WITH THE HIGHER AMOUNT JUST BECAUSE YOU CAN ALWAYS GO DOWN BUT THEN YOU CAN'T GO UP.
YEAH I'D SAY THAT COMMISSIONER MUIR LET'S GO WITH YOU. >> THANK YOU CHAIR I'M ALSO LEANING TOWARDS THE ALTERNATIVE OPTION.
I THINK AND THE CITY COUNCIL WE HAVE MADE IT VERY CLEAR THAT WE'RE ASKING THE WHOLE CITY TO MAKE SOME HARD CHOICES
,MAKE SOME HARD DECISIONS AND I DON'T THINK IT WOULD BE FAIR OR MEET WHAT WE'VE ASKED IF THE HRA DOESN'T DO OUR PART AS WELL KNOWING THERE'S A HUGE NEED THAT THERE IS GOING TO
CONTINUE TO BE A HUGE NEED. BUT THE ALTERNATIVE OPTION CONTINUES TO BE AN INCREASE FROM WHAT WE'VE HAD BEFORE. THERE'S GOING TO CONTINUE TO ALLOW US TO DO THE WORK THAT WE HAVE TO DO BUT IT DOES MAKE
US HAVE TO DO THOSE HARD HARD CHOICES. AND WHAT I WOULD ASK THE STAFF AND HOW I SEE IS WHEN WE SEND OUR TAX INCOME TAX OFF TO THE FEDERAL GOVERNMENT THAT'S OUR
MONEY. AND SO I'M GOING TO ASK THAT TO DO EVERYTHING WE CAN TO BRING OUR MONEY BACK TO BLOOMINGTON BECAUSE THOSE ARE OUR DOLLARS AND WHEN WE BRING THEM BACK TO OUR CITY THAT
HELPS US AND WE CAN SEE THE IMPACT OF THE FEDERAL GOVERNMENT SHUTDOWN NOW IT'S LOCAL GOVERNMENT WHO IS BEARING THE BRUNT OF THE ISSUE
. WE ARE THE ONES THAT HAVE TO THEN REACH INTO EVEN MORE OF OUR LEVY TO DO THE WORK THAT THE FEDERAL GOVERNMENT HAD PROMISED THAT THEY WOULD DO BUT NOW WE'RE SAYING THEY CAN'T DO AND SO I'M LEANING
TOWARDS ALTERNATIVE OPTION AND REQUESTING STAFF TO DIG LIKE CRAZY TO BRING OUR DOLLARS BACK TO BLOOMINGTON. THANK YOU COMMISSIONER. WHO CAME?
THANK YOU, MADAM CHAIR. I JUST HAVE A QUICK QUESTION. I'M THINKING IN THE FUTURE HERE WITH THE DEVELOPMENTS THAT WE HAVE TO DO WE HAVE THAT GRANT WITH THE STATE TO
BUILD SO MANY AFFORDABLE HOMES AND I JUST WANT TO PUT A QUESTION OUT THERE WITH TARIFFS AND THINGS LIKE IS THERE ANY PROJECTION OF WHAT WE'RE FIGURING THIS GAP COULD BE THAT THE CITY COULD BE THAT
COULD BE COMING BACK TO THE HRA TO MAKE THIS I JUST WANT TO PUT THAT INTO PERSPECTIVE AS WELL THAT WE DO HAVE THIS COMMITMENT AND THAT I KNOW WITH THE TARIFFS AND WITH
MANUFACTURING COSTS AND THE COSTS OF PRODUCTION RIGHT NOW IT'S NOT GREAT. YEAH SHARON COMMISSIONERS, AS YOU'VE SAID WE HAVE SEEN COSTS
ON THESE PROJECTS CONTINUE TO RISE. I THINK RIGHT NOW THE HRA CONTRIBUTION TOWARDS THE THIS PROJECT IS AROUND 2 TO 3 MILLION ALTHOUGH IF COSTS
CONTINUE TO RISE WE MIGHT SEE SOME IMPACTS TO THAT PROJECT. WE DO HAVE SOME DEVELOPMENT FUND SET ASIDE TO BE ABLE TO SUPPORT THAT PROJECT SO THAT IS FUNDING THAT WE ALREADY
HAVE FUND BALANCE THE PER THE MAXIMUM LEVY WOULD ALLOW US TO CONTINUE TO BUILD THAT FUND FOR OTHER STRATEGIC PROJECTS LIKE 9030 PARK OR LIKE SOME OF THOSE OTHER STRATEGIC INVESTMENTS.
BUT IN THE SHORT TERM YES WE DO HAVE A FUND BALANCE AVAILABLE. COMMISSIONER CARTER THANK YOU. GOOD QUESTION. SO IN A LOT OF OUR DIFFERENT
AREAS AND DIFFERENT FUNDS WE HAVE RESERVES DOES HAVE A RESERVE YEAH BUSINESS I WOULD SAY IT'S REALLY THAT DEVELOPMENT FUND THAT'S OUR
THAT'S WHERE MOST OF OUR FUND BALANCE SITS THE REST OF OUR OUR FUNDS ARE GENERALLY USED ON AN ANNUAL BASIS BUT THAT'S THE THE MONEY THAT WE HAVE AVAILABLE FOR STRATEGIC PROJECTS. YEAH. OKAY. THANK YOU.
HE KNEW HOW MUCH IS IN THERE. SORRY I IT'S AROUND 9 TO 10 MILLION. THE NUMBER IS LIKE FLEX BECAUSE OF INTEREST IN VARIOUS OTHER FTORS.
SO JUST TO BE CLEAR THAT 9 TO 10 MILLION IS UNKNOWABLE NEGATED AT THIS POINT THERE ARE A NUMBER OF UPCOMING PROJECTS THAT ARE SLATED TO COME OUT OF THAT FUND. FOR EXAMPLE THE AFFORDABLE HOMEOWNERSHIP PROJECT, SOME
DOWN PAYMENT ASSISTANCE IS LIKELY GOING TO COME OUT OF THAT FUND SOME OTHER LIKE OTHER SMALL SCALE DEVELOPMENT PROJECTS LIKE THE RALPH LOTS THAT WE'RE WORKING ON WITH HABITAT IS SLATED TO COME OUT OF THAT FUND. SO IT'S NOT ENTIRELY
UNOBLIGATED. THERE ARE A NUMBER OF LARGER PROJECTS COMING OUT OF THAT POT ALREADY. SO DO YOU HAVE A PROJECTION LIKE IN THE NEXT 1 TO 3 YEARS WHAT THAT FUND WILL LOOK WHAT IT WILL BE SITTING AT?
I HEAR FROM YOU SEE IF I PUT IT ON THE SLIDES HERE IT LOOKS LIKE I DIDN'T NOTE THAT HERE
BUT I BELIEVE WE HAVE IT DEPENDS ON HOW QUICKLY THE PROJECTS ADVANCE AND HOW QUICKLY THAT MONEY FLOWS. I THINK IN THE NEXT 1 TO 3 YEARS YOU'RE PROBABLY LOOKING AT AROUND 2 TO 5 MILLION
SPENDING. THAT'S A VERY ROUGH NUMBER BUT THAT'S MY BEST SOUND LIKE WE HAVE A LITTLE BIT OF CUSHION THOUGH IF PROJECT COSTS ARE A LITTLE HIGHER OR YOU KNOW OR IF SOMETHING HAPPENS AND WE'RE
LIKE WE JUST WANT TO MAKE STRATEGIC USE OF $1 MILLION FOR EMERGENCY RENT ASSISTANCE OR SOMETHING LIKE THAT LIKE WE COULD MAKE THOSE DECISIONS. OKAY.
COMMISSIONER DOLLINGER I JUST WANT TO AGREE WITH COMMISSIONER YOU SAY ON THE HIGHER AMOUNT I'VE ALWAYS BEEN WANTING TO PLAN FOR THE WORST BUT HOPE FOR THE BEST. I HAVE ZERO CONFIDENCE IN THE
FED COMING THROUGH WITH DESIRABLE NUMBERS SO I PLAN TO OPT FOR THE HIGHER AMOUNT IN THAT CASE THANK YOU.
I THINK I'M THE ONLY ONE THAT HASN'T COMMENTED WHEN THIS WAS FIRST BROUGHT TO US I WAS ALL ABOUT THE ALTERNATIVE OPTION
AND THEN THE PRELIMINARY VOTE I WENT WITH A HIGHER AMOUNT AND I AM STILL WAVERING. I BELIEVE THAT WE TOOK LESS
OF A LEVY THE PAST YEAR SO THAT MAKES ME LEAN TOWARDS THE HIGHER AMOUNT. WHILE I HAVE ALMOST NO
CONFIDENCE IN IN THE FEDERAL GOVERNMENT I WAS SO HOPEFUL TO SEE THAT MAYBE THE CUTS WON'T BE AS DRACONIAN AS WE THOUGHT
AND IF WE CAN GET SOME MORE INFORMATION ON THAT I KNOW THINGS CHANGE QUICKLY BUT THAT WOULD HAVE ME LEANING TOWARDS MAYBE THE ALTERNATIVE OPTION
MIGHT BE THE ONE I'M NOT GOING TO COMMIT RIGHT NOW BUT I SEE BOTH SIDES OF IT BECAUSE I WANT TO SET US UP FOR THE FUTURE AND FOR ALL OF THESE GREAT THINGS THAT WE WANT TO
DO. SO I'M I'M TORN. I'M CONFLICTED BUT THIS IS, YOU KNOW, OUR TAX MONEY AND WE HAVE TO BE RESPONSIBLE TO THE
CITIZENS OF BLOOMINGTON. SO I DON'T KNOW IF GOING WITH THE HIGHER LEVY IS MORE RESPONSIBLE ENSURING PROJECTS GET DONE OR THE ALTERNATIVE OPTION BUT IT'S I COULDN'T
EVEN SAY WHICH WAY I'D GO RIGHT NOW AND THAT'S THE HONEST TRUTH COMMISSION DOUBLING HER. >> I JUST HAVE ONE QUICK QUESTION WHAT IS THE DIFFERENCE BETWEEN THE TWO LEVIES AND THE BURDEN TO THE
TAXPAYER? >> YEAH. CHAIR AND COMMISSIONERS I BELIEVE THE MAXIMUM AMOUNT IS THE PROJECTED IS AROUND $4.96 PER HOUSEHOLD PER MONTH.
SO ABOUT $60 OF YOUR TOTAL RIGHT NOW WE'RE UP TO 84 THE $2.7 MILLION AMOUNT IS AROUND MAYBE IT'S LIKE 384 SOMEWHERE IN THE UPPER THREES.
SO THE DIFFERENCE BETWEEN THE 2.7 MILLION AND THE 3.2 IS ABOUT A DOLLAR PER HOUSEHOLD PER MONTH I BELIEVE JUST UNDER A DOLLAR YOU THANK YOU COMMISSIONER MORE LECTURE AND
HOW I LOOK AT THAT IS I LOOK AT THE THE FULL LEVY INCREASE IT'S NOT JUST HRA WHO HAS A LEVY IT'S THE PORT THAT HAS A LEVY THE CITY THAT HAS A LEVY. IT'S THE COUNTY THAT HAS THE LEVY.
IT'S THE SCHOOL BOARD THAT HAS A LEVY. IT'S THE WATER DISTRICT THAT HAS A LEVY. SO AFTER 2 OR $3 EVERYWHERE EVERY MONTH IT BECOMES A BIG BURDEN AND RIGHT NOW WE KNOW
LIKE SNAP IS GETTING CUT IF WE DON'T GET FUNDING BY THE FIRST AND THOSE $510 MAKE A DIFFERENCE, IT'S EITHER YOU'RE GOING TO EAT OR YOU'RE GOING
TO PAY FOR YOUR ELECTRIC TO KEEP YOUR HEAT ON. AND SO ALTHOUGH FOR US $1 SEEMS REALLY SMALL WE ADD IT UP WITH EVERYONE IT GETS REALLY BIG AND A DOLLARS A
DIFFERENCE BETWEEN EATING OR NOT. THANK YOU COMMISSIONER WHO CAME AND I AND I WANT TO SAY THAT I RESPECT THAT AND I THINK THAT'S WHAT MAKES US SO
HARD RIGHT IS BECAUSE WE SEE ALL SIDES OF IT. I MEAN WE'RE HERE BECAUSE WE CARE ABOUT THE COMMUNITY. WE CARE ABOUT AFFORDABLE HOUSING. RIGHT? AND SO BUT I ALSO DO WANT TO REITERATE THE FACT THAT
BATTERY DID WE DID SACRIFICE OUR LEVY WITH A CONVERSATION WITH THE PORT AND THAT'SHY I'M REALLY, REALLY, REALLY WANT TO PUSH THAT CONVERSATION
WITH THE PORT. AND AS I HAD TOLD MR. ABE BEFORE, I THINK IN THE FUTURE WOULD BE NICE IF ALL THREE ENTITIES THE CITY COUNCIL, THE HRA AND THE PORT ALL SAT DOWN
AND HAD A CONVERSATION REGARDING BUDGETS AND LEVIES AND WE KIND OF COULD HAVE THAT CONVERSATION AGAIN. I UNDERSTAND THAT'S WHY WE HAVE, YOU KNOW, COUNCIL MEMBERS ON BUT I THINK IT
MEANS SOMETHING TO WHEN WE ALL BRING PIECES TOGETHER AND WE ALL HEAR THE SIDES THAT HAVE HAD THE COMMUNICATIONS AND LIKE I SAID, I JUST I'D REALLY I REALLY DO WANT THE FEEDBACK
OF WHERE THE PORTS AREN'T ON THEIR LEVY BECAUSE WE DID SIT BACK SO THEY COULD MAX OUT AND SO I KIND OF FEEL LIKE THERE WAS THAT KIND OF CONVERSATION
AND THERE WAS KIND OF AN AGREEMENT THERE AND SO I KIND OF I KIND OF FEEL LIKE WE DID WE DID DO YOU KNOW, KIND OF WHAT WE WERE ASKED TO DO AND NOW WE'RE IN A POINT OF NOW PROBABLY MORE THAN EVER
PEOPLE ARE GOING TO NEED AS MUCH ASSISTANCE AS POSSIBLE AND I'M JUST I JUST WANT THAT CLEAR THAT IT WAS A HARD DECISION TO MAKE TO CUT OUR
LEVY AND WE DID IT SO COMMISSIONER CARTER, THANK YOU. IT'S SO INTERESTING BECAUSE I THINK THAT THERE WERE DIFFERENT NARRATIVES AND DIFFERENT PERSPECTIVES ON WHAT
HAPPENED BECAUSE MY PERSPECTIVE WAS THAT WHAT WE WERE TOLD WAS ECONOMIC DEVELOPMENT WAS MOVING OUT OF THE HRA INTO THE POOR AND THAT IS WHY HRA REDUCED THE
LEVY IMPORT INCREASE BECAUSE WE DIDN'T WANT TO HAVE THIS BIG IMPACT ON TAXPAYERS RIGHT . WHAT WAS THAT?
YEAH SO SO I DON'T I DON'T AND I THINK I'VE SAID THIS BEFORE I REALLY DON'T WANT IT TO BE A THEM AND US LIKE THE PORT DID THIS SO WE GET TO DO THAT AND YOU KNOW IT'S LIKE WE'RE ALL
IN THIS TOGETHER AND WE DIDN'T WE DIDN'T TO MY KNOWLEDGE WE DIDN'T DECREASE THE WORK OR THE OVERALL SPENDING ON
HOUSING AND I AND MAYBE THAT MAYBE I'M WRONG ON THAT BUT YEAH. CHAIR AND COMMISSIONERS I WOULD SAY IT HAS NOT DECREASED AND IN FACT THE PORT EXPANDED THEIR ACTIVITIES FROM JUST THE
SOUTH LOOP TO THE WHOLE CITY RECENTLY THERE'S A LOT OF INTERNAL COLLABORATION AMONGST STAFF BUT THE WORK HAS NOT REALLY IS ALSO DOING THE 20 PLUS HOUSING RIGHT SO SO
IT'S NOT LIKE A IT'S I THINK IT'S JUST MORE COMPLICATED RIGHT AND SO THE OTHER I DID HAVE ANOTHER QUESTION IF WE
WERE TO INCREASE THE LEVY THIS YEAR BECAUSE WE WERE AFRAID OF WHAT'S GOING TO HAPPEN AT THE FEDERAL GOVERNMENT, COULD WE THEN DECREASE IT AGAIN NEXT YEAR? YEAH.
JACK MYERS I WOULD I WOULD SAY IT WOULD DEPEND ON THE CIRCUMSTANCES AT THAT TIME BUT IT WOULD BE THE SIMILAR PROCESS. WE WOULD BRING A BUDGET PROPOSAL AND THE BOARD COULD MAKE DECISIONS AROUND INCREASING HOLDING STEADY OR
DECREASING AT THAT TIME. HMM. >> COMMISSIONER MOUA THANK YOU CHAIR. THE LAST THING I'LL SAY IS I RESPECT ALL THE OPINIONS UP
HERE AND NO MATTER WHAT THE BOARD CHOOSES TO DO WHEN WE GET TO THE DISCUSSION AT THE CITY COUNCIL LEVEL EVEN THOUGH I MIGHT CHOOSE A DIFFERENT
OPTION I WOULD VOICE AND SUPPORT THE DECISION THAT THE BOARD MAKES GIVEN THE THE BACKGROUND, THE CONCERNS, THE THE WORK THAT WE WANT TO ACCOMPLISH HERE ON THIS BOARD .
AND SO IF THAT HELPS EASE YOUR MIND AT ALL INTO TO HELP MAKE A CHOICE SO THAT AND THE ADMINISTRATOR CAN PUT SOMETHING TOGETHER SO WE CAN MOVE FORWARD AND BRING
SOMETHING THE COUNCIL JUST KNOW THAT THAT THAT WILL HAPPEN AND CITY COUNCIL WHAT HAPPENS THE CITY COUNCIL WILL BE WHAT HAPPENS BUT AS THE VOICES FOR THIS BODY AND THE COUNCIL WE WILL MAKE SURE THAT
WHAT WE'VE TALKED ABOUT HERE IS HEARD THERE . >> ALL RIGHT. THANK YOU EVERYONE FOR THE GOOD DISCUSSION, INSIGHT,
RESPECT THIS IS NOT AN EASY TOPIC. SO NOW WE HAVE REACHED THE END OF OUR AGENDA. SO COULD I HAVE A MOTION TO
ADJOURN THE TUESDAY, OCTOBER 28TH, 2025 OR A BOARD MEETING? SO I MOVED MOVED BY COMMISSIONER DOUBLING HER SECOND AND SECOND BY
COMMISSIONER WHO CAME ALL IN FAVOR I MOTION PASSES SIX ZERO THANK YOU