And their excuse. After recall, we're gonna. Tate we're going to have. Brodsky. Take his oath of office. addition priest or a handicap to me, staging I do least. Where do you solemnly swear that I was for the Constitution's support. The Constitution said the in a state of the United States state of Minnesota and the statements discharge faithfully discharge faithfully for all the day's perform, all the duties devolving Jaime devolving upon as a commissioner of the housing and Redevelopment Authority as a commissioner of the Housing Redevelopment, Authority of the City of Saint Paul, Minnesota and the city of Saint Paul, Minnesota. To best of my judgment, to the
best of my judgment and ability and Judy, myself and to be myself a fully enough safely us welcome Commissioner Thank you taking the time to do that. And congratulations. Welcome to the officially it to the House and meet up in a 3rd the city. Thanks so much. Item number one for discussion our yes. 25 dash. I-45 resolution authorizing the issuance of conduit revenue bonds for the health partners obligated group project under Minnesota statutes Section 4.69. That one. 52 through for 69, 1, 6, 5, 5, and approving related documents. Okay. So we do actually have a couple of action items that will be taking place for the ideas that are coming up. We will have staff report for
this oe followed by board action saw handed over to Director Newton. I think Jimmy is going to be giving she is. Thank you. Chair Johnson commissioners and and just to be clear, doesn't status in the tunnel, but this is just a refinancing. But Jenny is here and give up a staff report. As you mentioned, we have a few. So doesn't pretty simple items that we're not doing that 2 meetings on. We'll have those first. And then we have a staff report that will that will proceed to an action item next week. So that to me handle this one. Thank Chair Johnson and commissioners. This is a request for the a tree to authorize the issuance of conduit revenue bonds for the benefit of health partners, including Regions Hospital. The sole purpose will be to refinance prior bonds issued
by a tray in 2015, which funds had refinance bonds issued in 2006 to complete a major renovation project at Regions Hospital. The condor Trevon Bonds or special limited revenue. Revenue obligations of the hra and are not repay are repayable solely from the revenues of health partners and Regions Hospital. And do not include a general, our moral obligation of the city or a jury and are not secured by any of our taxing powers. Request is for the issuance of up to 300 million and the portion attributable to regions Hospital. Approximately 114 Million. The balance of the bond issuance will relate to the Park Nicollet project in St. Louis Park. Treat receives fees for issuing the bonds. This is a refinancing of prior bonds for
which we are collecting fees. We do estimate the fees will increase by approximately 61,000 with the issuance of for this new series that will refinance the prior Bonds. Penney Cermak is here. She's the chief financial officers with health partners. If there any questions. They also have representatives from the finance team and the legal team and staff recommends approval. Thank you. And Thank you to the partnership as well for being here and doing this today. Kelly as well. It's great to see you. I think questions at all from commissioners on this item. Okay. Commissioner, did you want to say anything? Yes, I thank you. Chair Johnson. I support this project and I approval of the resolution. Okay. Motion from cap commissioner maker to approve any discussion seeing nne.
All those in favor say Aye. Aye, all opposed. Biden favors or oppose. The resolution is adopted. Item. Number 2 for discussion is r e s 25 Dash 5, 7, 5, amending the 2025 Housing Redevelopment Authority hr Elon Enterprise budget to reflect carryover from the 2024 budget for to rental rehab program projects District 10 11 and worked for. Appreciated. Just getting update just a little bit on this item as well. But I over to Director Newton. If there's anything you'd like to further clarify, tis is a North port, but a product for the time is now we have commissioner future will able to do that. Thank you. Chair Johnson commissioners. It's really a housekeeping item related to budget process going, you
know, from 24 to 25 we had some we have couple of the heads projects that were in flight should have done is carried to the budget over to this year so we could pay for them and failed to do so. So this is really a cleanup item just to reflect that carry over from 24 to 25. So we can get those projects. And staff recommends approval. Thank you so much. And yes, I think it's really important that we just ensure that we have everything I lead simple Agreed. I will take a motion from commissioner provides key to approve discussion. Seeing none. All those in favor say Aye. Aye. All posts. Favors or oppose. The resolution is adopted. Item. Number 3 for discussion is arias. 25 dash 5.81 accepting a
1 million 999 thousand 900 in grant funds from the Minnesota Housing Finance Agency. Fhfa. Through the Minnesota Housing community, homeowners, home ownership Impact Fund Impact Fund for additional resources to homebuyers and homeowners through the downtown down payment assistance program dpa and the homeowners rehab program. H r p citywide. Well, I don't know how streaking past to get to a 2 million investment suffered this, you know. a few more dollars But I am excited to see that he both the deficits program in the home. On a rehab program are continuing to be invested in Director Were we able to get just a few different updates
just on, Mike, what are the programs are launching as well? Before we get into it, I headed over to you. But I know we briefly discuss that. But I do. Johnson, commissioner. Yes, thank you. We are ready. I have e-mail from my team to look a to final give the final approval. But I think we're pretty much ready to launch the down payment assistance program again for this year. I agree with you feels like this could been 2 million dollars look at happening. But will be working to a 909? So this is actually great. And it's good timing. So so we'll be able to reflect this in our balances. We played for this last year, JULY we have been awarded. This is not the first time we've received this funding. I I think w've received it
before right in the past for the same. For the same purpose. So this is just you all saying, yes, we'll take the money. Staff recommends approval of the Advocate. Be bringing book will have more specific details for you. But you've seen the guidelines. We just have a few final things to work out. So we're we want to get launched its. There are a whole lot of houses on the market right now. And so we want to get lost. We can get people in helps. Yeah, I'm really looking forward to being able to support PRESIDENT's state in Saint Paul with the down payment assistance relaunched. And so I'll take a motion from commissioner to approve any discussion. Seeing none. All in fvor say Aye. Opposed. Ivan favors or oppose. The resolution is adopted. Great item. Number 4 is the staff
report. Sr. 25 dash 59 staff report regarding modification of 2002 home loan to the same poll family Project, Limited partnership. Owner of Jackson Street Village Project located at 14 97 Jackson Street and Saint Paul and forgiveness of occurred interest district 6.45? Thank you so much. This is our we'll have report on this item as and medicine is that Commissioner Kim has been briefed on this this over to Director Newton and Re. Thank you. Chair Johnson commissioners. Yes. The principle project manager, Murray French is here to provide this introductory presentation. It will come back to for action next weekend. Commissioner Kim is in strong support. I think she handed it off to one of I can't remember which But she she was unable to be here. So will it really make the presentation and will come
back for your action next next, Minneapolis. Thanks. Good afternoon to Johnson Commissioners. My name is Marie a project manager pd Housing and here this afternoon to talk about the Jackson Street Village. Loan modification for us. This is basically a rehabilitation and refinance 25 unit project pick And 14 97 Jackson and it was constructed in 2002. Owned by our ad they also operate the project. There's 25 units and 24, those are deeply affordable units for families and then one of them is a caretaker unit. Located on Jackson Arlington is just so. And then the north is with way. The unit mix, you'll see there's 3, 2 bedrooms actually
for today. 16, 3 bedrooms, if for that. So they are very large units and their rent limitations on those are at 50% of area median income. But also there's an income limit. Save the family's and his no more than 30% of their income it. And they're all associated with project based Real quick. This is not very clear because this 30% am I? But it doesn't. That's not what that means. Right? Says 30% of their income. On the table you're right. You're right. 3 1% or income. I just want to clarify because that's completely accurate. And I should cut that before. I apologize. So at the 10 construction 2002, the H.O.A. Provided $387,500 Home alone with a 30 year term
in 2% interest. And Minnesota Housing finance agency, Ramsey County in the Family Housing Fund also provided funds for this project. And then in 2003, the hra approved reduction of the interest rate from 2% to 0% and extending the term of the mortgage for 30 yars. And a recent ordination. All this contingent on a made possible by Minnesota Housing Finance Agency funding. They did a word trends in Minnesota, any in 2000. 23. But then there was an additional gap. And then finally in DECEMBER of 2024, they mh faa approved a lot of 6 point 6 million, 205,000. And and 2 Fe also agreed to forgive their
previous ones on this project, which total about 2 million, 251,009, 14 as part of this refinance deal. So the rehabilitation is pretty extensive. It's been a include upgrades to their geothermal system, working placement at creating landscaping placement centers and citing is needed. And then window sashes screens, new unit doors, flooring, kitchen cabinets, water heaters, appliances as needed and then upgraded say Kim race. So the loan modification request the receipt and he's asking us Make the loan forgivable and maturity and 2032 and to forgive the accrued interest, which is currently estimated 175,500. $53. And all those terms will be contingent upon closing of the mh
New financing. And at that time, the closing in each if they will be forgiving. It's it's as we talked about earlier and Ramsey County in the family, housing funds are going to be forgiving their food interests. So the new m Hfa long I going to be in first position. a jury home remain in second position. And I want to note that the assessed value of the project is 4.5 million. So there's really very limited collateral year. It's not even enough collateral to secure the image of And so. That's why we're pretty comfortable about recommending forgiveness of I long because there's really no collateral tere. And we're also going to be assured the affordability
covenant that image if is requiring is for 50 years. So this will remain a deeply affordable. Project for for that long And I just also want note that there's 10 unit who gave ok for high-priority, homeless and Sussex for their sons. With disabilities. So again, this is a really deeply affordable family project. The sources and uses of funds you can see under sources that the total cost is 6.4 million and 6.2 million essentially is being provided by mjor Fay. It's a tax rebate funds, energy rebate ace Ramsey County contamination related. Funding of 6 defer developer fee and some operating reserve. So ten the uses would be and a mission we
have litigation is about 3.6 million. Is the contractor fee contingency professional fees. Developer fee meets a guy lines and financing costs for that 6.4 million, fold. And Murray, quickly on the acquisition refinance like that's that's not position they own. It's just the refinancing expenses, right? The finance refinance. Right since it they they any questions. Well, I want to mention that representatives from our Steven are here today in case there's any questions for Even. And we'll be bringing this back. You'll have time to look at it. If you do have questions and between chair commissioners can let us know, we'll be bringing it back next week for for your actions of
this is just an introductory presentation. Okay. Thank you for that presentation. Murray as well. And I appreciate being able to kind of be walked through the different things that MAY be led to the decision surrounding the forgiveness of this, especially use in Mission Bay Contingency or company at hired this property to remain affordable the years. And is that of the same levels that it is now or that? So like affordability being the same work couldn't exceed 30% of the income for 50 years or is about be out affordable housing unit for 50 years. the? The rents are limited to 50% of area median and they do get project base than there on top of that along with that project base, poachers,
they're limited to charging rent to the residents. No more than 30% of their income. Okay. So the image of coming it is the 50% am Okay. Okay. Commissioner maker. Thanks Johnson. I just i was asked the commissioner came to speak and to support this project, which she is strongly in favor of. She's a part of this project among many reasons because of the Fort ability that we were just discussing and the access to safe and stable housing. She notes here that of the 25 units. 24 have friends kept at 50%. Am I the other one I believe for the caretaker and they have section 8 voucher. So households pay no more than 30% of their income for rent collection is watching this and she supports the fact that those same rental income restrictions will continue after the rehabilitation. So
she she wanted to make sure to share her support, even she could Yes, commissioner basket, thanks to Johnson thanks to presentation rate that I'm curious, the the point first I should say very strong supporter of the project. I think particularly having a mix of affordability, but also the large units like all of all of us know, the challenges we've had making sure those large family units are in place, a hugely supportive. I will add transportation there and have that this is just below that. We left parkway bike trail. And so I particularly like family units. Well, that's that's a very, very pleasant way to get around by bike, sep kids of all ages, people of
all abilities. So as the token transportation and I have to path in terms of the the modification make it forgivable upon maturity 2032, i want to make sure I'm fully appreciating. Would that mean the interest is obvious that one 75 would we have had a sense of how much of that principle would run paid up until now. And at this point, we're making it fully forgivable. Is that my perceiving it correctly, of the internal 387,500 is deferred. Okay none of its do with the dew until 20. 32. And I think just fr clarity to to the question around the interest, that was a decision made 2023 that ultimately took 2% interest and changed it So it would be selling that I'm out right as that, which that was what you're asking. Well, prepared.
Johnson, appreciate I mainly just want I think I perceived it correctly as it was being stated. I'm I'm supportive of the way it's laid out. Just want to make sure I understood the moving pieces frequently. We're operating with that mix and the their local funds, state funds, loans, grants and the inner the interplay between and I know regularly how we particular that 50 year commitment and sort of thing get that getting here, which I think is very, very substantial. You know, typically we have that stress points and the tax credit projects where worried about that 2030, year Marks. I appreciate having the 50 years. But yeah, just want to make sure and get that clarity. So appreciate it.
Thank And I know this since our last agenda item. So we have a couple minutes, but I wanted to just sense the since the team from our students If we could just hear Thank you hear from you kind of what led know, been in place since 2002. I'm not sure the primary person since them, but I would be curious, just hear like how things have going. And also just what led to really that patient affordable at the site just about make use of your time since it came on the way here. So. Yeah, thank you, chair and thank you. Commissioners. My name is Carole Leigh Hutton, PRESIDENT And ceo of our season. And I've been receded since 2020, so not for the entire duration of the project, but as we shared its been deeply affordable, the whole time
will continue to be so many think. Ultimately, as you've stated, very few family permanent supportive housing projects across we work in both Minneapolis and Saint Paul. And we have 637 units of permanent supportive housing and only 2 of those sites are families. This is just exceptionally hard to find. And and so this particular recapitalization and then the components of this in terms of loan forgiveness. It's really essential in in I think in the context right now where there's this dearth of affordable housing we know only need to build more units. We need to ensure that the current stock can sustain. And I think when we look at the investments, the state and cities and municipalities have
made, it's far less expensive to. To recap it'll what recapitalize and can continue the investment current stock. So this is deeply meaningful right now. And it's just so precarious in terms of funding for families who need it the most all say just from, you know, from a project in service delivery in our families are coming in sometimes multiple disabilities. Logano in column. Many are coming out of substance use treatment or they're coming from other other facets where they just they need so much care agree with you. That site is beautiful. We have sites everywhere. It's calm. It's a nice neighborhood. It's great for kids. And I think we've seen this say as compared to some of our others across the metro. It's really stable because it is quiet. It's a lovely neighborhood. The town homes are really nice
structure for families to thrive. And when we have case managers on site as well as recovery, peer support specialist with lived experience, just we're really able to keep them stable. It's a great projects. You know, we appreciate the questions. Happy to answer any other once. Thank yu so much. And getting from one more time. Yes, Caroline Hood, good. Thank you for being here and thank you for taking the time to come out to our attorney meeting. I know it's been Publix traffic Utley exciting, could shaken setting they're all of it yeah. We have one question Commissioner Bowie. And then if there's other questions for Commissioners. Commissioner Johnson, thank you so much for attending as well. And I appreciate asking to up into U.S. A brief presentation
because I am also very curious around just like ours, Eden's. Involvement and dedication would deeply affordable housing. I think this is like amazing opportunity for these families to have Moscow bedrooms from my, you know, experience. I have no more of like ours, even in like the space of supportive housing in transitional housing. And you mentioned you spoke to that that this one out of 2 sites that shes dedicates of families. Iwant to just ask you, particularly around the rehabilitation, some of the things for mention here said as needed. So what the loan that you're seeking and also the deferment on the interest. Do you foresee this like being a investment and we Taishan for lke 5 to 10 years or over the span of the 50 years some of these things says as
needed. So it seems like there's not like in media timelines on tem. Sure. In terms of the scope of the project, you know, whenever we've done these, we have architects come through into a full walk through and look at look at the needs in terms of critical needs and then and then the nice to have and all of that and really scope out the work. So. What's important when we look at the scope and we work with architects were looking at not only really functional things like the geothermal and the in the parking lot and the nh back in boiler and things like that as well as looking at the liveability components. There's a beautiful prank on in the back for the kids, the countertops in the kitchen. You know, I think it's important when we look at our sites, when it comes to affordable housing, have a commitment that anyone should walk in and feel like it's a
lovely apartment regardless of their income. And so that's what we're striving for. So in terms of, you know, the long-lasting of tese funds. It's it's a healthy amount of funds summit. Of how long that lasts an as needed is also the wear and tear of the units. You know how people do. Other things like an hvac or bit more predictable. So we do expect that these funds to sustain the project and its are built on this timeline of looking at it for the next 15 years thinking about how that can sustain that way. And one more follow-up. What commissioner? Thank you. Chair Johnson has have a question on this because I hear a lot from my constituents who live within housing deeply affordable housing and on the council level or excuse me on the commission level, our role is
making sure it stays deeply affordable. But can you speak briefly around like what is the project team? Because I know there's a team that doesn't rehabilitation, but there's also a separate team rate. And that does like the project management and the property management. Can you speak to that? Sure. Yeah. It's a it's a whole. It's a whole team. So when it comes to the this rehab projects, you know, we work internally with that internal real estate staff as well as external hve my partner over here for Mahoney who works with us on that on the financing side of the development, we have architects that we outsource. We have contractors who we work with on the on the building side Aristide in as a provider is a bit unique in that. In te world of permanent supportive housing, they're sort of owner-operator property manager and then service provider theirs off
and 3 legs to stool. We are all 3 at Jackson Street Village. So we provide the services. We are property managers in terms of managing the rent and working with residents. And then we're also as we are here today in the capacity of owner operator. So we're able really in-house, too, make sure that all 3 of those legs are mission aligned or working toward the same goal. And then obviously with our partners, we've had. Longstanding and our contractor we've worked with on every bill we've done since too 1000. Only in our tax. We have my standing relationships with. I have 2 more. So from 3 s mostly only related you know
that that you have a, you know, one of the the rehabilitation pieces just upgrades to the geothermal system. I'm just wondering if you could speak a little bit about how you've been operating with that And on this property and then. Surely forecasts. And I think just an opportunity to really the pieces surrounding a geothermal system and affordable housing developer. And then on the other side was just on. If you could speak to just like if you had. If you have seen continued. I guess a continued steady and sustainable demand as far as like tenants residing in the property. Sure. So Thermal, I'm only going to speak to it. My scope of competency is with geothermal, which is not not much. I'm not the expert at all. Things at are Sweden. But what I do know
is when the when the project was developed, it was it was the first site, believe in Saint Paul to get this specific status is geothermal and looking at clean energy uses over the project since that was very new technology, it has. It has lived its life in terms of efficacy and efficiency. So a big piece is making sure its upgraded cause that technology has just paced since the project and in terms of how that's going and all that I can't speak to. I don't have that information but happy to try to ask my staff and more details on file sample for the going mostly believe from I just But no news in I was I was going to ask that question And i
thought it was to marry to bring up and Yeah, I think that, you know, I'm a little bit more continue, continue to comfortable with this. With that request in part because of some of the steps our student has taken. I wasn't sure what was the first. I knew it was on earlier side some of the geothermal investment. Definitely cool to hear about that. But I just think it's an opportunity for us to to continue 10 tons of ice sustainable. Investments in our city and sustainable futuristic thinking surrounding affordable housing development. So. Absolutely. In terms of the investment in affordable housing is specifically it the first and then your second question in terms of demand for those units. Yes, there's high demand. As I said, there's not enough family
supportive housing so it's it's trickier to build the structure to finance is trickier to staff, all sorts of those things. So we see those units are. That's one of our highest capacity buildings across our portfolio. There's very little turnover and families are nice and stable. And if there is turnover for whatever reason, they're somebody right there waiting to move no, that's. You know, just I think just erase so many different important pieces throughout presentation with us. I really appreciate just being willing to cop and asked questions, you know, apologize for putting on the spot. But think I think it was really great to just like here from just a unique opportunity that we have. And I think with their requests itself, there was just several things about the project that especially being and a space where I very just
passionate about hw are responding to the current needs of our families here in Saint Paul. And so just really want to echo the sentiments from commissioner look for to be able to support upcoming week. So thank you so for being here. thank you, director for the report. Thank you. Appreciate it. Is there any other things that people have a 4 at The Hague? Commissioner, commissioner? And yes, just out of just. Just out of just like Harry s into around just like the sources of funds. I'm sure see this and other development. directed noon. And you might just like brief, like definition of just energy rebate what the Ramsey County Sha s a g skews me acronym stands for. That's a great question.
Commissioner and chair. Let's see energy rebate. That's probably something that I don't know. Somebody wants to speak to that site. Yeah, that's probably not from. That's definitely not from us. It could be federal could be state. To the geothermal system say I'm going to see if Murray or someone cancer, either of those questions. Apology, million viewers. They might with every make sure people to. Energy rebates are from excel. The utility management. sag Grant site investing safe assessment. Grant. So for phase one of Thanks. what I think so yet. Chair commissioner, you see that you see the phase one, you see environmental all the time. They just this is just a different acronym for waste. Okay. Well. And the other questions, okay. None. I just tripped preface that next week we will have the Hart Home and Healthy
Homes program back guidelines back council members. I commissioners are encouraged to reach out. There's anything that you have any questions on commissioner and vice Chair Jones. But that will be on the agenda is us for next weekend will be a couple other items that we can. Discuss. The 23rd official just said to that on the pair of home and healthy we really appreciate the feedback that we got from the spotty last time we were here with an initial presentation leave streamline. Did a little bit made little bit more simple. We we really do want to keep it administratively, you know, not too burdensome and not too many tales not not now. A lot of subjectivity. We like it to be very clear. So your questions were great and lead
to some further refinements of the guidelines that will bring. So we'll look at those an impact. If you see. I think it'll be very clear and we can make it clear what we've changed. But they were all really in response to your comment, sir. Thank you for that Thank you so much. And with that, we are adjourned.