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Home My WebLink AboutSeptember 18, 2001PCITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci. colurnbia-heights, rnn. us HRA Commissioners Marlaine Szurek Julienne Wyckoff Bobby Williams Gary L. Peterson Bruce Nawrocki HOUSING & REDEVELOPMENT AUTHORITY September 18, 2001 The following is the agenda for the regular meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) to be held at 6:00 PM on Tuesday, September 18~ 2001, ~ the ~kview Villa Community Room B, 965 40th Avenue N.E., Columbia Heights, Minnesota. The HRA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all HRA services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the HRA Secretary at 706-3670 to make arrangements (TDD/706-3676 for deaf or hearing impaired only). 1. CALL TO ORDER/ROLL CALL. 2. PLEDGE OF ALLEGIANCE. 3. CONSENT AGENDA A. Approval of Minutes of Meeting of August 21, 2001. MOTION: Move to adopt the minutes of August 21, 2001 regular meeting as presented in writing. 4. PUBLIC HEARING A. HUD Agency Plan and Approval of Resolution 2001-03 MOTION: Move to close the Public Hearing for the review of the draft Housing and Redevelopment Authority Annual PHA Plan. MOTION: Move to waive the reading of Resolution 2001-03, there being ample copies available to the public. MOTION: Move to adopt Resolution 2001-03 of the Columbia Heights Housing and Redevelopment Authority (HRA) confirming approval of the Public Housing Agency certifications of compliance with the PHA plans and related regulations. 5. Transfer of Home Mortgage Loans MOTION: Move to approve the sale of the Chartraw/Uecker and Nielsen Home Mortgage Loans to Community Reinvestment Fund for approximately $32,824.31 with the proceeds from the sale placed in the Business Loan Fund; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER 6. Warrick Sheffield Loan Payoff o MOTION: Move to approve $1,811.89 as the payoff amount for the Sheffield Home Improvement Loan Promissory Note, dated May 25, 1995, from John S. and Mary C. Warrick, to be deposited into the Business Revolving Loan Fund; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. ADJOURNMENT Cheryl Bakken, Acting Secretary H:\HRA A~enda2001\9-18-2001 HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING MINUTES OF AUGUST 21, 2001 CALL TO ORDER - The Regular Meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) was called to order by Vice Chair, Julienne Wyckoff at 8:41 p.m., August 21,2001, in Conference Room 1, City Hall, 590 40'~ Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Gary Pcterson, Sulienne Wyckoff, Bruce Nawrocki, and Bobby Williams Commission Members Absent: Marlaine Szurck Staff Present: Randy Schumacher, Acting Community Development Director Cher Bakken, Community Development Secretary Bill Elrite, Finance Director CONSENT AGENDA Approval of Minutes of Special Meeting of March 20, 2001. MOTION by Peterson, seconded by Williams, to adopt the minutes of March 20, 2001 regular meeting as presented in writing. All Ayes. Motion Carried. PRELIMINARY 2002 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND PROPOSED 2002 LEVY. MOTION by Peterson, second by Williams, to waive the reading of HRA Resolution 2001-02, there being ample copies available to the public. All Ayes. Motion Carried. MOTION by Williams, second by Peterson, to adopt HRA Resolution 2001-02, being a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights adopting the Preliminary 2002 Budget and recommending setting the I-IRA local levy at $111,702. Nawrocki asked to see a spreadsheet on the Sheffield Project balances including what the costs are, were they are and when will it be paid off. Elrite stated he would have his staff prepare a report and provide it to the Board. AMENDED MOTION by Nawrocki, to set the HRA Local Levy at $77,000 for the debt reduction of Sheffield development. Motion died for lack of a second. Upon Vote for the original Motion: Williams- Aye, Peterson- Aye, Nawrocki- Nay, Wyckoff- Aye. Motion Carried. ADJOURNMENT The Meeting was adjourned by Vice Chair, Wyckoffat 8:52 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:LHRA-2001 \8-21-2001 Budget Mtg COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of: September 18, 2001 AGENDA SECTION: Public Hearing ORIGINATING EXECUTIVE NO: ~'~ -' A DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Conducting Public Hearing for HUD BY: Randy Schumacher BY: Agency Plan and Approval of Resolution 2001-03 DATE: September 12, 2001 BACKGROUND: The Quality Housing and Work Responsibility Act of 1998 requires all Housing Authorities to prepare a one year. Staff has completed the draf~ copy of the Columbia Heights Agency Plan for the public to review. A summary of the Plans contents and a full copy of the draft plan with attachments and supporting documents are available for review by the public at the central administrative office of the Columbia Heights HRA. HUD requires a variety of components and documents to be incorporated into the plan, they include a mission statement, goals and objectives of the agency, an executive summary, statements of needs and resources, and numerous policy statements. The HUD required forty-five day review period to allow for public input has now been satisfied. At the Public Hearing on September 18, 2001, the HRA Board will make final modifications to the plan and authorize staff to submit the final document to HUD. The Parkview Villa resident advisory board as well as .~moka County have reviewed the Plan for content. As of this writing, no plan changes have come forward from the public. The entire document has been generated by electronic transmission and downloaded through the HUD web page REAC System. The primary emphasis of these plans are to identify quantifiable measures of success in reaching their objectives over the course of the plan. RECOMMENDATION: The staffis recommending that the HRA Board close the Public Hearing, make amendments to the plans if needed, and adopt HRA Resolution 2001-03, that being Resolution of the Columbia Heights Housing and Redevelopment Authority confirming approval of the Public Housing Agency Certifications of Compliance, with the PHA Plans and related regulations. RECOMMENDED MOTION: Move to close the Public Hearing for the review of the draft Housing and Redevelopment Authority Annual PHA Plan. RECOMMENDED MOTION: Move to waive the reading of Resolution 2001-03, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2001-03 of the Columbia Heights Housing and Redevelopment Authority (HRA) confirming approval of the Public Housing Agency certifications of compliance with the PHA plans and related regulations. Iq ACTION: H:\consent2001 \HRA Agency Plan,Res 20014)3 HRA RESOLUTION 2001-03 RESOLUTION OF THE' COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) CONFIRMING APPROVAL OF THE PUBLIC HOUSING AGENCY CERTIFICATIONS OF COMPLIANCE, WITH THE PHA PLANS AND RELATED REGULATIONS. WHEREAS, The Department of the Housing and Urban Development has requested that Public Housing Agencies submit a Certification in regard to Public Housing Agency Compliance with the PHA Plans and Related Regulations; and WHEREAS, such Certification also requires the formal approval of the Board of Commissioners; NOW THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Housing & Redevelopment Authority that the attached (Appendix AA~) Public Housing Agency Certifications of Compliance with the PHA Plans and Related Regulations is hereby approved. ADOPTED this MOTION BY: SECONDED BY: AYES: NAY S: Attest by: day of ,2001. Marlaine Szurek HRA Chair Cheryl Bakken, Acting Secretary H;\Resolutions2001\HRA Res 2001-03 U.S. Department of Housing and Urban Development Office of Public and Indian Housing PHA Certifications of Compliance with the PHA Plans and Related Regulations Board Resolution to Accompany the PHA Plan Acting on behalf of the Board of Commissioners of the Public Housing Agency (PHA) listed below, as its Chairman or other authorized PHA official if there is no Board of Commissioners, I approve the submission of the Annual P ] an for PHA fiscal year beginning 200 1 , heremfter referred to as the Plan of which this document is a part and make the following certifications and agreements with the Department of Housing Development (HUD) in connection with the submission of the Plan and implementation thereofi 1. The Plan is consistent with the applicable comprehensive housing affordability strategy (or any plan incorporating such strategy) for the jurisdiction in which the PHA is located. 2. The Plan contains a certification by the appropriate State or local officials that the Plan is consistent with the applicable Consolidated Plan, which includes a certification that requires the preparation of an Analysis of Impediments to Fair Housing Choice, for the PHA's jurisdiction and a description of the manner in which the PHA Plan is consistent with the applicable Consolidated Plan. 3. The PHA has established a Resident Advisory Board or Boards, the membership of which represents the residents assisted by the PHA, consulted with this Board or Boards in developing the Plan, and considered the recommendations of the Board or Boards (24 CFR 903.13). The PHA has included in the Plan submission a copy of the recommendations made by the Resident Advisory Board or Boards and a description of the manner in which the Plan addresses these recommendations. 4. The PHA made the proposed Plan and all information relevant to the public hearing available for public inspection at least 45 days before the hearing, published a notice that a hearing would be held and conducted a hearing to discuss the Plan and invited public comment. 5. The PHA will carry out the Plan in conformity with Title VI of the Civil Rights Act of 1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 1973, and title II of the Americans with Disabilities Act of 1990. 6. The PHA will affirmatively further fair housing by examining their programs or proposed programs, identify any impediments to fair housing choice within those programs, address those impediments in a reasonable fashion in view of the resources available and work with local jurisdictions to implement any of the jurisdiction's initiatives to affirmatively further fair housing that require the PHA's involvement and maintain records reflecting these analyses and actions. 7. For PHA Plan that includes a policy for site based waiting lists: · The PHA regularly submits required data to HUD's MTCS in an accurate, complete and timely manner (as specified in PIH Notice 99-2); · The system of site-based waiting lists provides for full disclosure to each applicant in the selection of the development in which to reside, including basic information about available sites; and an estimate of the period of time the applicant would likely have to wait to be admitted to units of different sizes and types at each site; · Adoption of site-based waiting list would not violate any court order or settlement agreement or be inconsistent with a pending complaint brought by HUD; · The PHA shall take reasonable measures to assure that such waiting list is consistent with affirmatively furthering fair housing; · The PHA provides for review of its site-based waiting list policy to determine if it is consistent with civil rights laws and certifications, as specified in 24 CFR part 903.7(c)(1). PHA Certifications of Compliance with the PHA Plans and Related Regulations 12/99 Page 1 of 3 U.S. Department of Housing and Urban Development Office of Public and Indian Housing 8. The PHA will comply with the prohibitions against discrimination on the basis of age pursuant to the Age Discrimination Act of 1975. 9. The PHA will comply with the Architectural Barriers Act of 1968 and 24 CFR Part 41, Policies and Procedures for the Enforcement of Standards and Requirements for Accessibility by the Physically Handicapped. 10. The PHA will comply with the requirements of section 3 of the Housing and Urban Development Act of 1968, Employment Opportunities for Low- or Very-Low Income Persons, and with its implementing regulation at 24 CFR Part 135. l 1. The PHA has submitted with the Plan a certification with regard to a drug free workplace required by 24 CFR Part 24, Subpart F. 12. The PHA has submitted with the Plan a certification with regard to compliance with restrictions on lobbying required by 24 CFR Part 87, together with disclosure forms if required by this Part, and with restrictions on payments to influence Federal Transactions, in accordance with the Byrd Amendment and implementing regulations at 49 CFR Part 24. 13. For PHA Plan that includes a PHDEP Plan as specified in 24 CFR 761.2 l: The PHDEP Plan is consistent with and conforms to the "Plan Requirements" and "Grantee Performance Requirements" as specified in 24 CFR 761.21 and 761.23 respectively and the PHA will maintain and have available for review/inspection (at all times), records or documentation of the following: · Baseline law enforcement services for public housing developments assisted under the PHDEP plan; · Consortium agreemenffs between the PHAs participating in the consortium and a copy of the payment agreement between the consortium and HUD (applicable only to PHAs participating in a consortium as specified under 24 CFR 761.15); · Partnership agreements (indicating specific leveraged support) with agencies/organizations providing funding, services or other in-kind resources for PHDEP-funded activities; · Coordination with other law enforcement efforts; · Written agreement(s) with local law enforcement agencies (receiving any PHDEP funds); and · All crime statistics and other relevant data (including Part I and specified Part II crimes) that establish need for the public housing sites assisted under the PHDEP Plan. 14. The PHA will comply with acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and implementing regulations at 49 CFR Part 24 as applicable. 15. The PHA will take appropriate affirmative action to award contracts to minority and women's business enterprises under 24 CFR 5.105(a). 16. The PHA will provide HUD or the responsible entity any documentation that the Department needs to carry out its review under the National Environmental Policy Act and other related authorities in accordance with 24 CFR Part 58. 17. With respect to public housing the PHA will comply with Davis-Bacon or HUD determined wage rate requirements under section 12 of the United States Housing Act of 1937 and the Contract Work Hours and Safety Standards Act. 18. The PHA will keep records in accordance with 24 CFR 85.20 and facilitate an effective audit to determine compliance with program requirements. 19. The PHA will comply with the Lead-Based Paint Poisoning Prevention Act and 24 CFR Part 35. 20. The PHA will comply with the policies, guidelines, and requirements of OMB Circular No. A-87 (Cost Principles for State, Local and Indian Tribal Governments) and 24 CFR Part 85 (Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments.). 21. The PHA will undertake only activities and programs covered by the Plan in a manner consistent with its Plan and will utilize covered grant funds only for activities that are approvable under the regulations and included in its Plan. PHA Certifications of Compliance with the PHA Plans and Related Regulations 12/99 Page 2 of 3 U.S. Department of Housing and Urban Development Office of Public and Indian Housing 22. All attachments to the Plan have been and will continue to be available at all times and all locations that the PHA Plan is available for public inspection. All required supporting documents have been made available for public inspection along with the Plan and attachments at the primary business office of the PHA and at all other times and locations identified by the PHA in its PHA Plan and will continue to be made available at least at the primary business office of the PHA. Columbia Heights Housing & Redevelopment Auth. MN105 PHA Name PHA Number Signed/Dated by PHA Board Chair or other authorized PHA official PHA Certifications of Compliance with the PHA Plans and Related Regulations 12/99 Page 3 of 3 U.S. Department of Housing and Urban Development Office of Public and Indian Housing Small PHA Plan Update Annual Plan for Fiscal Year: 2001 NOTE: THIS PHA PLANS TEMPLATE (HUD 50075) IS TO BE COMPLETED IN ACCORDANCE WITH INSTRUCTIONS LOCATED IN APPLICABLE PIH NOTICES HUD 50075 OMB Approval No: 257%0226 Expires: 03/31/2002 PHA Plan Agency Identification PHA Name: Columbia Heights Housing & Redevelopment Authority PHA Number: MN105 PHA Fiscal Year Beginning: (01/2001) PHA Plan Contact Information: Name: Walt Fchst, Executive Director Phone: (763) 706-3610 TDD: (763) 706-2806 Email (if available): Communitydevclopmcnt~ci.columbia-heights.mn.us Public Access to Information Information regarding any activities outlined in this plan can be obtained by contacting: (select all that apply) X Main administrative office of the PHA X PHA development management offices Display Locations For PI-IA Plans and Supporting Documents The PHA Plans (including attachments) are available for public inspection at: (select all that apply) x Main administrative office of the PHA PHA development management offices Main administrative office of the local, county or State government Public library PHA website Other (list below) PHA Plan Supporting Documents are available for inspection at: (select all that apply) X Main business office of the PHA ['-] PHA development management offices [-] Other (list below) PHA Programs Administered: [-]Public Housing and Section 8 ~-]Section 8 Only X Public Housing Only Small PHA Plan Update HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 Annual PHA Plan Fiscal Year 2001 [24 CFR Part 903.7] i. Table of Contents Provide a table of contents for the Plan, including attachments, and a list of supporting documents available for public inspection. For Attachments, indicate which attachments are provided by selecting all that apply. Provide the attachment's name (A, B, etc.) in the space to the left of the name of the attachment. If the attachment is provided as a SEPARATE file submission from the PI-IA Plans file, provide the file name in parentheses in the space to the right of the title. Contents Page # Annual Plan i. Executive Summary (optional) ii. Annual Plan Information iii. Table of Contents 1. Description of Policy and Program Changes for thc Upcoming Fiscal Year 2. Capital Improvement Needs 3. Demolition and Disposition 4. Homeownership: Voucher Homeownership Program 5. Crime and Safety: PHDEP Plan 6. Other Information: A. Resident Advisory Board Consultation Process B. Statement of Consistency with Consolidated Plan C. Criteria for Substantial Deviations and Significant Amendments Attachments X X X X Attachment A: Supporting Documents Available for Review Attachment B_B_' Capital Fund Program Annual Statement Attachment E: Capital Fund Program 5-Year Action Plan Attachment _E_: Capital Fund Program Replacement Housing Factor Annual Statement Attachment __' Public Housing Drug Elimination Program (PHDEP) Plan Attachment C: Resident Membership on PHA Board or Goveming Body Attachment D: Membership of Resident Advisory Board or Boards Attachment __' Comments of Resident Advisory Board or Boards & Explanation of PHA Response (must be attached if not included in PHA Plan text) Other (List below, providing each attachment name) 1 1 1 2 2 3 4 4 4 5 5 Small PHA Plan Update Page 1 HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 ii. Executive Summary [24 CFR Part 903.7 9 (r)] At PHA option, provide a brief overview of the information in the Annual Plan The Agency Plan for the Columbia Heights Housing and Redevelopment Authority describes the programs, policies, and practices that were implemented in FY 2000. To date, new security card procedures, lease revisions for lead base paint and one strike revision, and policies for tracking crime and crime-related problems and screening applicants criminal history have been enacted by the Board. Also, a modernization of the elevators was recently completed and a new security system is in the process of being installed. Evidence of the success of the efforts came from the results of the Public Housing Assessment Resident Service and Satisfaction Survey, which showed that 80 out of 8 ! residents responding agreed or strongly agreed that the building and grounds are being taken care of properly. The staffwas also gratified by the results from the same survey that showed 75 out of 79 respondents agreed or strongly agreed that management is effectively performing their duties to meet resident's needs. The Columbia Heights Housing and Redevelopment Authority is "on the right track" in meeting the varied needs of residents and will continue to stress sound property management and maintenance in the FY 2001 Agency Plan. 1. Summary of Policy or Program Changes for the Upcoming Year In this section, briefly describe changes in policies or programs discussed in last year's PHA Plan that are not covered in other sections of this Update. 1. Tracking Crime and Crime Related problems 2. Screening applicants Criminal History 3. Security Card Procedure 4. Lead Base Paint 5. One Strike Policy 2. Capital Improvement Needs [24 CFR Part 903.7 9 (g)] Exemptions: Section 8 only PHAs are not required to complete this component, A. X Yes ['-] No: Is the PHA eligible to participate in the CFP in the fiscal year covered by this PHA Plan? B. What is the amount of the PHA's estimated or actual (if known) Capital Fund Program grant for the upcoming year? $128,506. Small PHA Plan Update Page 2 HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 C. X Yes I-'] No Does the PHA plan to participate in the Capital Fund Program in the upcoming year? If yes, complete the rest of Component 7. If no, skip to next component. Capital Fund Program Grant Submissions (1) Capital Fund Program 5-Year Action Plan The Capital Fund Program 5-Year Action Plan is provided as Attachment E (2) Capital Fund Program Annual Statement The Capital Fund Program Annual Statement is provided as Attachment E 3. Demolition and Disposition [24 CFR Part 903.7 9 (h)] Applicability: Section 8 only PHAs are not required to complete this section. 1. [--] Yes X No: Does the PHA plan to conduct any demolition or disposition activities (pursuant to section 18 of the U.S. Housing Act of 1937 (42 U.S.C. 1437p)) in the plan Fiscal Year? (If"No", skip to next component; if "yes", complete one activity description for each development.) 2. Activity Description Demolition/Disposition Activity Description (Not including Activities Associated with HOPE VI or Conversion Activities) 1 a. Development name: lb. Development (project) number: 2. Activity type: Demolition [-'] Disposition ~] 3. Application status (select one) Approved [--] Submitted, pending approval [--] Planned application [--J 4. Date application approved, submitted, or planned for submission: (DD/MM/YY) 5. Number of units affected: 6. Coverage of action (select one) [-'l Part of the development N Total development 7. Relocation resources (select all that apply) ['-] Section 8 for units ['-I Public housing for units [-] Preference for admission to other public housing or section 8 [~] Other housing for units (describe below) 8. Timeline for activity: a. Actual or projected start date of activity: b. Actual or projected start date of relocation activities: c. Projected end date of activity: Small PHA Plan Update Page 3 HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 4. Voucher Homeownership Program [24 CFR Part 903.7 9 (k)] A. [~] Yes X No: Does the PHA plan to administer a Section 8 Homeownership program pursuant to Section 8(y) of the U.S.H.A. of 1937, as implemented by 24 CFR part 982 ? (If"No", skip to next component; if"yes", describe each program using the table below (copy and complete questions for each program identified.) B. Capacity of the PHA to Administer a Section 8 Homeownership Program The PHA has demonstrated its capacity to administer the program by (select all that apply): [--] Establishing a minimum homeowner downpayment requirement of at least 3 percent and requiring that at least 1 percent of the downpayment comes from the family's resources [-']Requiring that financing for purchase of a home under its section 8 homeownership will be provided, insured or guaranteed by the state or Federal government; comply with secondary mortgage market underwriting requirements; or comply with generally accepted private sector underwriting standards ~-] Demonstrating that it has or will acquire other relevant experience (list PHA experience, or any other organization to be involved and its experience, below): 5. Safety_ and Crime Prevention: PHDEP Plan [24 CFR Part 903.7 (m)] Exemptions Section 8 Only PHAs may skip to the next component PHAs eligible for PHDEP funds must provide a PHDEP Plan meeting specified requirements prior to receipt of PHDEP funds. A. Yes [--] No: Is the PHA eligible to participate in the PHDEP in the fiscal year covered by this PHA Plan? B. What is the amount of the PHA's estimated or actual (if known) PHDEP grant for the upcoming year? $ C. [--] Yes No Does the PHA plan to participate in the PHDEP in the upcoming year? If yes, answer question D. If no, skip to next component. D. [~] Yes No: The PHDEP Plan is attached at Attachment 6. Other Information [24 CFR Part 903.7 9 (r)] A. Resident Advisory Board (RAB) Recommendations and PHA Response 1. [-] Yes X No: Did the PHA receive any comments on the PHA Plan from the Resident Advisory Board/s? Small PHA Plan Update Page 4 HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 The Plan was presented to the Resident Advisory Board. 2. If yes, the comments are Attached at Attachment (File name) In what manner did the PHA address those comments? (select all that apply) I'-']The PHA changed portions of the PHA Plan in response to comments A list of these changes is included [-"] Yes [--] No: below or [~ Yes [--] No: at the end of the RAB Comments in Attachment ["-] Considered comments, but determined that no changes to the PHA Plan were necessary. An explanation of the PHA's consideration is included at the at the end of the RAB Comments in Attachment Other: (list below) B. Statement of Consistency with the Consolidated Plan For each applicable Consolidated Plan, make the following statement (copy questions as many times as necessary). 1. Consolidated Plan jurisdiction: City of Columbia Heights, Minnesota. City of Columbia Heights 2. The PI-IA has taken the following steps to ensure consistency of this PHA Plan with the Consolidated Plan for the jurisdiction: (select all that apply) X X X X The PHA has based its statement of needs of families in the jurisdiction on the needs expressed in the Consolidated Plan/s. The PHA has participated in any consultation process organized and offered by the Consolidated Plan agency in the development of the Consolidated Plan. The PHA has consulted with the Consolidated Plan agency during the development of this PHA Plan. Activities to be undertaken by the PI-IA in the coming year are consistent with specific initiatives contained in the Consolidated Plan. (list such initiatives below) Other: (list below) 3. PHA Requests for support from the Consolidated Plan Agency [-"] Yes X No: Does the PHA request financial or other support from the State or local government agency in order to meet the needs of its public housing residents or inventory? If yes, please list the 5 most important requests below: The Consolidated Plan of the jurisdiction supports the PHA Plan with the following actions and commitments: (describe below) Certification by local official indicating the five year and annual plan of the Columbia Heights HRA is consistent with the consolidated plan. Records are on file for review in Community Development Department. C. Criteria for Substantial Deviation and Significant Amendments 1. Amendment and Deviation Definitions Small PHA Plan Update Page 5 HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 24 CFR Part 903.7(r) PHAs are required to define and adopt their own standards of substantial deviation from the 5-year Plan and Significant Amendment to the Annual Plan. The definition of significant amendment is important because it defines when the PHA will subject a change to the policies or activities described in the Annual Plan to full public hearing and HUD review before implementation. A. Substantial Deviation from the 5-year Plan: Ae Significant Amendment or Modification to the Annual Plan: Columbia Heights will subject any change to its 5-year Capital Improvements Plan over $2,000 to HUD, because any project over this amount requires Davis-Bacon documentation. All deviations to the 5-Year Capital Improvement Plan must be approved by the Economic Development Authority Board of Commissioners at a duly advertised public meeting. All amendments to the Annual Plan, regardless of amount, are submitted to HUD upon approval by the Economic Development Authority Board of Commissioners as a matter if policy. Small PHA Plan Update Page 6 HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 Attachment A Supporting Documents Available for Review PHAs are to indicate which documents are available for public review by placing a mark in the "Applicable & On Display" column in the appropriate rows. All listed documents must be on display if applicable to the program activities conducted by the PI-IA. List of Supporting Documents Available for Review Applicable Supporting Document Related Plan & Component On Display PI-IA Plan Certifications of Compliance with the PHA Plans and 5 Year and Annual N/A Related Resulations Plans State/Local Government Certification of Consistency with the 5 Year and Annual X Consolidated Plan (not required for this update) Plans X Fair Housing Documentation Supporting Fair Housing 5 Year and Annual Certifications: Records reflecting that the PHA has examined its Plans programs or proposed programs, identified any impediments to fair housing choice in those programs, addressed or is addressing those impediments in a reasonable fashion in view of the resources available, and worked or is working with local jurisdictions to implement any of the jurisdictions' initiatives to affm'nafively further fair housing that require the PHA's involvement. N/A Housing Needs Statement of the Consolidated Plan for the Annual Plan: jurisdiction/s in which the PHA is located and any additional Housing Needs backup data to support statement of housing needs in the jurisdiction X Most recent board-approved operating budget for the public Annual Plan: housing program Financial Resources X Public Housing Admissions and (Continued) Occupancy Policy Annual Plan: (A&O/ACOP), which includes the Tenant Selection and Eligibility, Selection, Assignment Plan [TSAP] and Admissions Policies X Any policy governing occupancy of Police Officers in Public Annual Plan: Housing Eligibility, Selection, X check here if included in the public housing and Admissions A&O Policy Policies N/A Section 8 Administrative Plan Annual Plan: Eligibility, Selection, and Admissions Policies X Public housing rent determination policies, including the method Annual Plan: Rent for setting public housing fiat rents Determination X check here if included in the public housing A & O Policy Small PHA Plan Update Page 1 HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 List of Supporting Documents Available for Review Applicable Supporting Document Related Plan & Component On Display X Schedule of flat rents offered at each public housing development Annual Plan: Rent X check here if included in the public housing Determination A & O Policy N/A Section 8 rent determination (payment standard) policies Annual Plan: Rent [~] check here if included in Section 8 Administrative Determination Plan X Public housing management and maintenance policy documents, Annual Plan: including policies for the prevention or eradication of pest Operations and infestation (including cockroach infestation) Maintenance X Results of latest binding Public Housing Assessment System Annual Plan: (PHAS) Assessment Management and Operations X Follow-up Plan to Results of the PHAS Resident Satisfaction Annual Plan: Survey (if necessary) Operations and Maintenance and Community Service & Self-Sufficiency N/A Results of latest Section 8 Management Assessment System Annual Plan: (SEMAP) Management and Operations N/A Any required policies governing any Section 8 special housing Annual Plan: types Operations and ~] check here if included in Section 8 Administrative Maintenance Plan X Public housing grievance procedures Annual Plan: Grievance X check here if included in the public housing Procedures A & O Policy N/A Section 8 informal review and hearing procedures Annual Plan: [~] check here if included in Section 8 Administrative Grievance Procedures Plan N/A The HUD-approved Capital Fund/Comprehensive Grant Program Annual Plan: Capital Annual Statement (HUD 52837) for any active grant year Needs X Most recent CLAP Budget/Progress Report (HUD 52825) for any Annual Plan: Capital active CLAP grants Needs N/A Approved HOPE VI applications or, if more recent, approved or Annual Plan: Capital submitted HOPE VI Revitalization Plans, or any other approved Needs proposal for development of public housing X Self-evaluation, Needs Assessment and Transition Plan required Annual Plan: Capital by regulations implementing f504 of the Rehabilitation Act and Needs In Capital the Americans with Disabilities Act. See, PIH 99-52 (HA). Improvement Plan N/A Approved or submitted applications for demolition and/or Annual Plan: disposition of public housing Demolition and Disposition N/A Approved or submitted applications for designation of public Annual Plan: housing (Designated Housing Plans) Designation of Public Housing Small PHA Plan Update Page 2 OMB Approval No: 2577-0226 HUD 50075 Expires: 03/31/2002 List of Supporting Documents Available for Review Applicable Supporting Document Related Plan & Component On Display N/A Approved or submitted assessments of reasonable revitalization of Annual Plan: public housing and approved or submitted conversion plans Conversion of Public prepared pursuant to section 202 of the 1996 HUD Appropriations Housing Act, Section 22 of the US Housing Act of 1937, or Section 33 of the US Housing Act of 1937 N/A Approved or submitted public housing homeownership Annual Plan: progxams/plans Homeownership N/A Policies governing any Section 8 Homeownership program Annual Plan: (section of the Section 8 Administrative Plan) Homeownership X Cooperation agreement between the PI-IA and the TANF agency Annual Plan: and between the PI-IA and local employment and training service Community Service & agencies Self-Sufficiency N/A FSS Action Plan/s for public housing and/or Section 8 Annual Plan: Community Service & Self-Sufficiency N/A Section 3 documentation required by 24 CFR Part 135, Subpart E Annual Plan: Community Service & Self-Sufficiency N/A Most recent self-sufficiency (ED/SS, TOP or ROSS or other Annual Plan: resident services grant) grant program reports Community Service & Self-Sufficiency N/A The most recent Public Housing Drag Elimination Program Annual Plan: Safety (PHEDEP) semi-annual performance report and Crime Prevention N/A PHDEP-related documentation: Annual Plan: Safety Baseline law enforcement services for public housing and Crime Prevention developments assisted under the PHDEP plan; Consortium agreement/s between the PHAs participating in the consortium and a copy of the payment agreement between the consortium and HUD (applicable only to PHAs participating in a consortium as specified under 24 CFR 761.15); Parmership agreements (indicating specific leveraged support) with agencies/organizations providing funding, services or other in-kind resources for PHDEP-funded activities; Coordination with other law enforcement efforts; Written agreement(s) with local law enforcement agencies (receiving any PItDEP funds); and Al1 crime statistics and other relevant data (including Part I and specified Part II crimes) that establish need for the public housing sites assisted under the PI-IDEP Plan. X Policy on Ownership of Pets in Public Housing Family Pet Policy Developments (as required by regulation at 24 CFR Part 960, Subpart G) X check here if included in the public housing A & O Policy X The results of the most recent fiscal year audit of the PHA Annual Plan: Annual conducted under section 5(h)(2) of the U.S. Housing Act of 1937 Audit (42 U. S.C. 1437c(h)), the results of that audit and the PHA's response to any findings N/A Troubled PHAs: MOA/Recovery Plan Troubled PHAs Small PHA Plan Update Page 3 HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 List of Supporting Documents Available for Review Applicable Supporting Document Related Plan & Component On Display N/A Other supporting documents (optional) (specify as needed) (list individually; use as many lines as necessary) Small PHA Plan Update Page 4 HUD 50075 OMB Approval No: 2577-0226 Expires: 03/31/2002 COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting off September 18, 2001 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: IJC-W--. DEPARTMENT: DIRECTOR APPROVAL ITEM: Transfer of Home Mortgage Loans BY: Randy Schumacher BY: DATE: September 13, 2001 BACKGROUND: Currently, there are 2 outstanding Home Mortgage Loans made by the HRA in 1979. The first, Chartraw/Uecker was closed on June 1, 1979 for 30 years with monthly payments of $381.34. The second, Neilsen was also a 30-year mortgage closed on July 1, 1979 with monthly payments of $318.60. The interest on both of these loans is 5%. The Chartraw/Uecker loan has a balance remaining of $19,725.57 and Neilsen has a balance remaining of $18,064.33. Both loans are up-to-date, as of the end of August, 2001. After discussion of the available options at the May 15th EDA Meeting, Board directed staff to look into the possibility of selling the 2 loans to a mortgage company. The EDA Board approved the sale of the loans at their July meeting, but it was later determined that the loans were in the name of the HRA, so the sale needs to be "reapproved" by the HRA. I have contacted local banks without much success, but I did receive one ,'-~rm offer from Community Reinvestment Fund (CRY), which specializes in buying small portfolios from ...ablic agencies. CRY has submitted an offer of 86.91% of par value on the Chartraw/Uecker loan and 86.81% of par value on the Neilsen loan. This means that CRY will purchase the 2 loans from the HRA for $32,824.31, which is 86.86% of the remaining balances other 2 loans of $37,789.90 to be paid off over the next 10 years. A copy of the CRY offer is attached for your information. The City Attorney has reviewed the sale agreement and finds it to be of proper form. RECOMMENDATION: Staff recommends the HRA sell the 2 Home Mortgage Loans to CRY for approximately $32,824.31 and the proceeds be placed in the Business Revolving Loan Fund RECOMMENDED MOTION: Move to approve the sale of the Chartraw/Uecker and Nielsen Home Mortgage Loans to Community Reinvestment Fund for approximately $32,824.31 with the proceeds fi.om the sale placed in the Business Revolving Loan Fund; and furthermore, to authorize the President and Executive director to enter into an agreement for the same. Attachments HRA ACTION: h: Loans2001\Transfer Home Mortgage Loans2 COMMUNITY REINVESTMENT FUND ~tugu# 29, 2001 Internet I-Ieadquarters Suite 1800 West 801 Nicollet Mall Minneapolis, MN 55402 Phone ~ Toll Free ~ 800-475-3050 Fax ~ Emmi ~ info~crfusa, com California Office 550 Bercut Drive Suite G Sacramento, CA 95814 Phone - 916498-$764 Fax ~ 91~448-Y81 Southwest Office P.O. Box 552 Clifton, CO 81520 Phone ~ 970-434-5318 Fax ~ 9704,34-5317 Email - claudette~ctfusa, cora Mark Nagel Commumty Development Dixector City of Columbia Heights 590 40th Avenue N.E. Columbia Heights, MN 55421-3878 AUG 2 9 2001 SUBJECT: HOME MORTGAGE LOAN PURCHASE CHARTRAW & NIELSEN LOANS Dear Mark: Enclosed are the closing documents necessary to complete the purchase of the Chartraw and Nielsen loans. The documents enclosed are the Qualified Sellers Agreement (QSA) that says that the Seller has the ability to sell the loans and intends to re-use the loan proceeds for charitable lending purposes. The Loan Purchase Agreement (LPA) outlines the actual sale of the loans and refers to the loans being sold in the exhibit on the final page of the LPA. The other documents enclosed (allonge and assignment of mortgage) are necessary to transfer the individual loans and the security documents to Community Reinvestment Fund (CPO-'). The closing procedures would be to provide CRF a current balance as of the sale date or date that you execute the documents. We will price the loans giving you a final price along with accrued interest due. Per your instructions we will wire the funds to your account upon receipt of the signed enclosed documents and getting the fries and related documents, including notes and mortgages and payment histories. CRF will provide you with a "good-bye" letter informing the customer that the loan has been sold and CRF is the new holder of the loan. CRF will send a "hello" letter giving the borrower addresses and phone numbers for our customer service department. Our intention is to make this as trouble free for all parties as possible. We will provide you a set of signed copies of all executed documents for your records. If you have any questions please call Kevin Riba Regional Program Manager CC Lynne Ri Credit admin. COMMUNn~ R~'~CM~T FLrND Qualified Geller Agreeny~nt Between Community Reinvestment Fund, Inc. And The Housing and Redevelopment Authority of Columbia Heights, Minnesota Explanation of Agreement: Community Reinvestment Fund (CRF) is a tax-exempt nonprofit organization. To keep that status, it must show that its activities further a public good. CRF does this by demonstrating that the money it provides by buying loans will be used for specific public purposes, not for private profit. Because CRF is not directly provide the funds, it needs a way of showing that those who receive the money will in mm use it for community development purposes. This Qualified Seller Agreement is the document used to do that. It does this first by establishing that the organization receiving the funds promotes community development as part of its business. It then establishes that the funds received will be re-lent for public purposes. To verify that the proceeds from the loan sales will be used for public purposes, CRF requires loan sellers to report how the money they received was allocated. This Qualified Seller Agreement is used in conjunction with another document, the Loan Purchase Agreement. The Loan Purchase Agreement shows the terms covering a specific set of loans. It also includes such information as the price to be paid for the loans and focuses on the conditions governing the sale and purchase of the loans. The Qualified Seller Agreement is the master document under which each Loan Purchase Agreement is executed. Other Loan Purchase Agreements can be signed later regarding other loans. The original Qualified Seller Agreement would still be in effect and does not have to be completed again. As with contracts of this sort, the Qualified Seller Agreement and Loan Purchase Agreement require among other things that loan sellers represent that the loans they sell are valid, that there are no hidden claims on them, and that the loan sellers are legally permitted to sell the loans. The Qualified Seller Agreement also requires that loan sellers permit CRF or its representatives to visit the borrowers' sites or the sites where the borrowers' collateral exists. The Qualified Seller Agreement does not require that the Seller offer loans to CRF for purchase. It only "qualifies" the Seller to do so from time to time on terms to be mutually agreed-upon by CRF and the Seller. Community Reinvestment Fund wants this Agreement to be clear to nonlawyers. Occasionally, language appears that is legalistic in form to comply with established case law governing the sale of financial obligations. Every effort has been made to balance a reader's need for clarity with legal needs for precision and accuracy. QUALIFIED SELLER AGREEMENT (Agreement) This Qualified Seller Agreement, made ,200_ is between Community Reinvestment Fund, Inc., a Minnesota nonprofit corporation (CRY) and The Housing and Redevelopment Authority of Columbia Heights, Minnesota (Seller). In consideration of the mutual undertakings and promises contained in this Agreement, CRY and Seller agree as follows: Section 1 PURPOSE OF AGREEMENT 1.01 From time to time, Seller wishes to sell to CRY and CRY wants to buy from Seller Development Loans under the terms and conditions of this Qualified Seller Agreement and one or more Loan Purchase Agreements. 1.02 The Development Loans offered for sale were originated by Seller for the public purposes described in Section 1.04 of this Agreement. 1.03 The type of Development Loans that CRY is allowed to purchase are limited by the charitable purposes and the restrictions imposed-on CRF as a condition to its status as a corporation exempt fi'om federal income taxes under the Internal Revenue Code. 1.04 Seller is an organization that focuses some of its lending activities for the purpose of increasing the supply of affordable housing. 1.05 By approving this Qualified Seller Agreement, CRY designates Seller to be a Qualified Seller. That designation makes Seller eligible to sell Development Loans to CRY from time to time under the terms and conditions of this Agreement. Seller must comply with the terms and conditions of this Agreement to maintain the designation of Qualified Seller. Section 2. DEFINITIONS 2.01 BORROWER means the corporation, partnership, limited liability company association, individual or other person or persons to whom a Development Loan was made. 2.02 CLOSING means the time of purchase by CRY and the sale by Seller of one or more Development Loans as Provided in a Loan Purchase Agreement. 2.03 COLLATERAL means the real property or other property, equipment, inventory, rights, revenues, proceeds and other assets pledged, mortgaged or otherwise assigned to secure repayment of a Development Loan. 2.04 CRF DOCUMENTS means this Qualified Seller Agreement, any applicable Loan Purchase Agreement and all other documents, certificates or other agreements related hereto or thereto. 2.05 DEFAULT means the occurrence of a default or an event of default connected with a Development Loan Document, including the failure to timely pay principal of or interest on the Development Loan. 2.06 DEVELOPMENT LOAN means a loan or participating interest in a loan made for a purpose described in Section 501(c)(3) of the Internal Revenue Code, including a loan for the primary purpose off (i) promoting, retaining or maintaining employment; (ii) supporting, maintaining, improving or revitalizing the economic or physical infrastructure of the community; or (iii) providing or improving affordable housing or other activities that comply with the exempt purposes identified in the Internal Revenue Code Section 501 (c)(3). 2.07 DEVELOPMENT LOAN DOCUMENT or DOCUMENTS means the loan agreement or other instrument governing the advance of funds to a Borrower, either by Seller or someone acting on Seller's behalf. The term includes any note or other instrument issued in connection with the loan agreement, and any mortgage, security agreement, pledge agreement, assignment of rents and leases, guaranty or other document directly or indirectly securing or supporting the Borrower's obligations in connection with the loan. 2.08 LEGAL PROCEEDINGS means any action, suit, proceeding or inquiry or investigation at law or in equity before or by any court, governmental agency, public board or body. 2.09 LOAN FILE means the file to be delivered to CRF at the Closing by Seller regarding a Development Loan, as described in Article 3, Section 3.02(k) of this Agreement and more specifically in the Loan Purchase Agreement. 2.10 LOAN INFORMATION means information regarding a Development Loan, Borrower, Collateral, guarantor or a related business, either oral or written, furnished by Seller or its Representatives to CRF or its Representatives. The Loan Information includes (without limitation) financial and credit information about the Borrower, the principals of the Borrower and any guarantors; Collateral, trade secrets and proprietary information about the Borrower's business and affairs; analyses of the credit and related reports; and the documentation of the Development Loan. 2.11 LOAN PURCHASE AGREEMENT means the agreement between Seller and CRF through which (i) specific Development Loans are identified for sale to CKF; (ii) the Purchase Price of the loans is established; and (iii) a Closing is executed. 2.12 LOAN SALE PROCEEDS means the Purchase Price of the Development Loans sold to CRF. 2.13 NOTE or NOTES means the promissory note or other similar instrument evidencing the indebtedness constituting the Development Loan or Loans. 2.14 PAYMENT INSTRUCTION FORM means the instructions of Seller to CRF regarding the method of payment of the Purchase Price, which is to be attached to the Loan Purchase Agreement. 2.15 PURCHASE PRICE means the purchase price to be paid by CRF to Seller for a Development Loan as established in a Loan Purchase Agreement. 2.16 REPRESENTATIVES means and includes the employees, officers, directors, accoUntants, advisors and attorneys of the referenced party. With respect to Seller, the term "representative" also includes the members of the various committees charged with the review and approval of the Development Loans. 2.17 SELLER DOCUMENTS means this Qualified Seller Agreement, any applicable Loan Purchase Agreement, each Development Loan Document applicable to Seller and all other documents, certificates or other agreements relating hereto or thereto. Section 3. ELIGIBILITY OF DEVELOPMENT LOANS FOR PURCHASE 3.01 Term, Purpose, Termination and Conditions of Agreement. The purpose of this Qualified Seller Agreement is to specify: (i) the types of Development Loans to be purchased from time to time from Seller; (ii) the Development Loan purchase process and procedures and; (iii) certain other terms and conditions with respect to the purchase and sale of such Development Loans. 3.02 Representations and warranties concerning Development Loans. As of each Closing, unless otherwise disclosed to CRF in writing and consented to by CRF in writing, the Seller shall be deemed to represent, warrant and covenant with respect to each of the Development Loans being purchase by or on behalf of CRF as follows: (a) Origination. Each Development Loan has been closed in Seller's name as lender or participant, and Seller owns all fight, title and interest to and in each Development Loan and the related Development Loan Documents. (b) Term, Loan Now Current. The Borrower has raised no defenses to payment of any of the Development Loans, each Development Loan has been originated and commenced amortization at least 12 months prior to the date of Closing, and the Borrower is'current in all payments under each Development Loan. Any fees or expenses payable in connection with the closing of any Development Loan have been paid. All sums to be advanced under each of the Development Loan Documents have been advanced to the Borrower, and the Development Loan Documents do not contain a mandatory future advance clause. (c) Compliance with Law. The requirements of all federal, state and local laws, rules and regulations applicable to each Development Loan and the making of the Development Loan have been complied with. The Development Loan and Development Loan Documents executed by the Borrower are not in violation of any provision of such laws, rules or regulations. Any right of rescission in relation to the Development Loan under such laws, rules or regulations has expired. (d) Valid Lien or Financing Statement; Not Modified. The Development Loan is secured by a valid and perfected lien on the Collateral and has the priority intended by the Development Loan Documents. Copies of the most recent financing statements with respect to the Development Loan have been furnished to CRF. The Development Loan and Development Loan Documents are the legal, valid and binding obligations of the Borrower, enfomeable in accordance with their respective terms and conditions except as may be limited by bardcruptcy, equitable principles or the rights of creditors generally. The Development Loan and Development Loan Documents are free from any right of set-off, counterclaim or other claim or defense. Except as has been disclosed to CRF in writing, no part of the Collateral has been released from the Development Loan Documents unless expressly consented to by CRF in writing, and no guarantor of the Loan has been released. After the date of the applicable Loan Purchase Agreement, the terms of the Development Loan may not be modified, amended, or in any way expressly waived or changed, unless disclosed to and approved by CRF in writing. (e) No Unknown Adverse Circumstances. No portion of the Collateral has been damaged by fire, windstorm or other casualty. No proceeding in eminent domain or condemnation is pending or threatened against any part of the Collateral or the Borrower's business. There are no circumstances or conditions with respect to the Development Loan, the Collateral or the credit standing of the Borrower and any other obligor that materially and adversely affect the expectation of repayment of the Development Loan in full when due except to the extent previously disclosed to and approved by CRF in writing on or before the date on which the applicable Loan Purchase Agreement is executed and delivered. (0 Title to Collateral. The title to, serial numbers of, and other rights of possession of or identification of Collateral shown in the Development Loan Documents are as described in the Development Loan Documents and the applicable Loan Purchase Agreement, except as has been otherwise disclosed to CRF in writing on or before the date on which the Loan Purchase Agreement is executed and delivered. (g) Perfection of Security Interest. Seller has taken all required actions to perfect the security interest in the Collateral. Included in such actions without limitation are recordation (or registration or re-registration or re-filing) and notification to prior lien holders (with a recorded request for notice of default where required) that have been validly and duly taken. (h) Insurance. Hazard insurance and other insurance polices are in full effect as required under the Development Loan Documents, and the policies comply with the terms and mounts required under the Development Loan Documents. (i) Payment Records. Seller or its Representative has maintained accurate records reflecting the receipts and disbursements of each Development Loan. Seller complied with all laws, rules, regulations and contracts applicable to loan or escrow funds in receiving, retaining, administering and/or disbursing all funds. (j) Loan Not in Default. There are no material Defaults under the terms and conditions of the Development Loans, Development Loan Documents or any other Seller Documents. No event has occurred that, with the passage of time or the giving of notice or both, will become a Default under any Development Loan Documents or any other Seller Documents. (k) Loan File. Seller has maintained files containing pertinent information, notices, documents, and correspondence relating to each Development Loan. At Closing, those files, along with the Loan File containing the information described and organized as detailed in the Loan Purchase Agreement, will be delivered to CRF. Seller will make the Loan File available to CRF and its Representatives upon reasonable advance written notice prior to Closing. (I) Most Recent Financial Information. Seller has provided to CRF the most recent financial statements of the Borrower, and, where applicable, the most recent financial statements of any guarantors of the Development Loan. (m) No Omissions or Misstatements. Nothing has come to the attention of Seller, that would cause it to believe that the Loan File and other information furnished to CRF relating to each Development Loan may contain any untrue statement of material fact or may omit to state a fact that, under the circumstances, would be material in connection with CRF's determination to purchase the Development Loan. (n) Compliance with Qualified Seller Agreement. By accepting the Purchase Price of any Development Loan at Closing, Seller represents that each Development Loan complies with all requirements of this Qualified Seller Agreement. Furthermore, Seller's acceptance of the Purchase Price reaffirms the warranties, representations and covenants set forth in this Agreement. The warranties, representations and covenants made in this Agreement and restated at Closing will survive the Closing. 3.03 Seller Warranties, Representations and Covenants; No Breach Seller represents, warrants and covenants with CRF that, as of the execution and delivery of this Agreement and of each Loan Purchase Agreement, and as of the Closing: (a) Seller has full fight, title and legal authority to sell, transfer and assign Development Loans and Development Loan Documents to CRF. Seller has taken all required action and obtained any and all consents and approvals required to sell, transfer, and assign the Development Loan and Development Loan Documents to CRF. (b) The Qualified Seller Agreement, the Loan Purchase Agreement, the Development Loan Documents and any related documents and any attachments to those documents: (i) have been authorized by the governing body of Seller, (ii) have been executed and delivered by Seller, and (iii) are the legal, valid and enfomeable obligations of Seller subject to bankruptcy, equitable principles and the rights of creditors, generally. By complying with the terms and conditions of this Qualified Seller Agreement, Loan Purchase Agreement and any related documents, Seller is not and will not be in conflict with or cause a breach or default under any statutes governing Seller, the charter or bylaws of Seller, any agreement or instrument to which Seller is a party, or any judgment, order, or regulation controlling Seller. (c) By executing and delivering this Agreement and the Loan Purchase Agreement and performing the actions as provided in these documents, Seller is not breaching or causing a default under any law of the United States of America or the state law applicable to Seller. Nor in so doing is the Seller breaching or causing a default of any administrative regulation binding on Seller, or any judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which Seller is a party or is otherwise bound. (d) No Legal Proceeding exists or is pending or threatened against Seller that (i) would affect the Seller's existence or the titles of its officers to their respective offices; (ii) seeks to prohibit the sale of the Development Loans or seeks to intercept, block or collect revenues used as a security to pay the principal and interest of the Development Loans; (iii) contests the Collateral pledged to the Development Loans or in any way contests or affects the validity and enforceability of the Development Loan Documents, the Qualified Seller Agreement or the Loan Purchase Agreement; or (iv) contests the powers of Seller or its authority to enter into and perform its obligations under this Agreement, the Loan Purchase Agreement or related documents, so that if the outcome of such a proceeding were unfavorable, the validity or enforceability of the Development Loans, the Development Loan Documents, the Qualified Seller Agreement or the Loan Purchase Agreement would be adversely affected. 3.04 CRF Warranties, Representations and Covenants. CRF represents, warrants and covenants with Seller that as of the execution and delivery of this Agreement, any Loan Purchase Agreement, and as of any Closing: (a) CRF has full legal authority to enter into this Agreement, the Loan Purchase Agreement and related documents; (b) The documents and any attachments to the documents have been duly authorized, executed and delivered by CRF, and are the legal, valid and enforceable obligations of CRF, subject to bankruptcy, equitable principles and the rights of creditors generally; (c) By complying with the terms and conditions of the documents, CRF will not be in conflict with any law governing CRF, any regulations, judgmetits or orders governing CRF, any agreements or instrument in which CRF is a party, or the charter or bylaws of CRF; (d) As of the date of this Agreement, except as otherwise disclosed by CRF, no Legal Proceeding is pending or, to CRF's knowledge, threatened against CRF which, if determined adversely to CRF, would have a material adverse effect on the transactions contemplated in the Qualified Seller Agreement or the Loan Purchase Agreement or other related documents; and (e) By executing and delivering this Agreement and the Loan Purchase Agreement and performing'the actions as provided in the documents, CRF is in compliance with all laws, statutes, ordinances, rules and regulations of any and all government entities and agencies have jurisdiction over the transactions contemplated by the documents. 3.04. Survival of Representations and Warranties. Seller's representations, warranties, covenants and agreements made pursuant to this Agreement or any Loan Purchase Agreement and any related Documents will remain in effect and survive delivery of and payment of the Purchase Price of any Development Loan. CRF's representations, warranties, covenants, and agreements made pursuant to this Agreement or any Loan Purchase Agreement and any related Documents will remain in effect and survive delivery of and payment of the Purchase Price Section 4. LOAN PURCHASE PROCESS 4.01. No Obligation to Sell or Purchase. CRF will only be obliged to purchase Development Loans and Seller will only be obliged to sell Development Loans under an executed and delivered Loan Purchase Agreement. In so doing, Seller and CRF will be subject to the terms, limitations and conditions set forth in this Agreement and the Loan Purchase Agreement. 4.02. Loan Evaluation. Seller will identify each Development Loan that it wants to sell, if any, and will permit CRF's Representatives to review the complete Loan File for such Development Loan and other relevant Loan Information. 4.03 Site Visits. Seller will use its best efforts to arrange visits by CRF or its Representatives to the premises of the Borrower or any guarantor at their respective principal places of business and, if at a different site, at the location of the Collateral. Such a visit will require reasonable advance notice by CRF or its Representatives, and will be for the purposes of enabling CRF or its Representatives to inspect the Collateral, to interview the Borrower and any guarantor, and to otherwise become familiar with the business affairs of the Borrower and any guarantor. 4.04. Purchase of Development Loans. The purchase by CRF of specific Development Loans must be made under the terms of an executed and delivered Loan Purchase Agreement between Seller and CRF. The terms and conditions set forth in the applicable Loan Purchase Agreement, together with the terms and conditions contained in this Agreement, will govem the purchase of any specific Development Loan by CRF from Seller. 10 4.05. Acceptance. Seller may accept a purchase offer by delivering to CRF two originally signed copies of a Loan Purchase Agreement. 4.06 Interim Servicing by Seller. In some circumstances, a Loan Purchase Agreement may be executed before a Closing is conducted. Also, a Loan Purchase Agreement may be executed and no Closing conducted before the Loan Purchase Agreement expires. In both of these interim periods, the Seller must continue to service and administer each Development Loan included in the Loan Purchase Agreement. During these interim periods, Seller must report to CRF at least monthly on the status of any Development Loan being sold under the executed Loan Purchase Agreement. Included in such reports must be the principal amount outstanding, any interest accrued and unpaid and the existence of any Default regarding the Development Loans. Section 5 OTHER PROVISIONS 5.01. Reuse of Proceeds. Seller covenants and agrees that substantially all of the Loan Sale Proceeds from the sale of a Development Loan to CRF will be used to fund new Development Loans. Seller agrees that it will file annual reports with CRF regarding any such new Development Loans until the principal amount of the new Development Loans exceeds the Loan Sale Proceeds. The annual reports to CRF must include the information specified in Section 5.02 below. 5.02 Reports. Seller agrees to provide an annual report to CRF containing a description of how the Loan Sale Proceeds have been used, (e.g. new loans made, types of projects financed, jobs created.) CRF intends to use the information provided in the annual reports as a basis for fundraising and reporting to CRF contributors and the use or other permitted application of the Loan Sale Proceeds is important to CRF's qualification as a tax-exempt nonprofit status. Reports must cover the preceding calendar year and must be submitted to CRF not later than April 1 of each year. The provisions of this Section 5 remain in effect until the principal amount of all the new Development Loans exceeds the amount of the Loan Sale Proceeds, notwithstanding the termination of this Agreement. (656597.1) 11 Section 6. DEVELOPMENT LOAN CLOSING PROCEDURES 6.01. Closing. On the day of the Closing, a duly authorized and executed assignment of Development Loans and related Notes and Development Loan Documents, together with all original Loan Files and related documents, must be delivered to CRF. On the same date, CRF must pay the Purchase Price to Seller. Each Loan Purchase Agreement will set forth the procedures for the Closing. Section 7 MISCELLANEOUS 7.01 Notices. All notices and communications as part of this Agreement must be in writing and, except as otherwise agreed to, must be delivered, mailed faxed, or telegraphed to the following addresses: if to CRF, to: if to Seller, to: Community Reinvestment Fund 2400 Foshay Tower 821 Marquette Avenue Minneapolis, Minnesota 55402-2903 Attention: Frank Altman, President Phone 1-612-338-3050 or 800-475-3050 FAX; 1-612-338-3236 City Of Columbia Heights Housing and Redevelopment Authority 590-40th Avenue N.E. Columbia Heights, MN 55421 Attention: Mark Nagel (763)-706-3670 (763)-7063671 7.02. Governing Law. This Agreement is governed by and is to be interpreted under the laws of the State of Minnesota. 12 7.03. Parties in Interest. This Agreement is binding upon and will inure to the benefit of CRF and Seller, and their successors and assigns. 7.04 Time. Time is of the essence of this Agreement. 7.05 Assignments. CRF's interest in the Development Loans and Development Loan Documents is assignable to any entity formed, sponsored, managed or controlled by CRF and any lender or trustee or agent on behalf of any investor or lender, including a trustee acting on behalf of holder of notes or other obligation issued by or on behalf of CRF or an affiliate and secured by one or more Development Loans. 7.06 Counterparts. This Agreement may be executed in any number of counterparts, each of which is to be considered an original copy. 7.07 Termination This Qualified Seller Agreement will remain in full force and effect until (i) 60 days following receipt by either party of a written notice of termination of this Agreement (so long as no Loan Purchase Agreement has been executed by the parties hereto and remains in effect) or (ii) sooner upon the mutual written agreement of CRF and Seller, provided, however; no termination of this Agreement pursuant to clause (i) or (ii) shall release Seller fi.om its obligations under this Agreement with respect to any Development Loans theretofore sold to CRF or with respect to Seller's obligations under Section 5 of this Agreement. 13 This Qualified Seller Agreement has been executed and delivered by the duly authorized officers of Seller and CRF as of the date (insert date). HOUSING AND REDEVELOPMENT AUHTORITY OF COLUMBIA HEIGHTS, MINNESOTA (SELLER) By: Its: Chai ~' ::,. By: Its: Executive Director COMMU'NITY REINVESTMENT FUND, rNC. (CRF) By:. 14 COMMUNITY R~_STMENT ~ Between Community Reinvestment Fund, Inc. And The Housing and Redevelopment Authority of Columbia Heights, Minnesota Explanation of Agreement: This Loan Purchase Agreement is the document by which Community Reinvestment Fund (CRF) buys specific Development Loans. It is used with the Qualified Seller Agreement. As explained in the Qualified Seller Agreement, CRF as a tax exempt nonprofit organization must show that its activities support specific public purposes. The Qualified Seller Agreement is the first step that Sellers must take to permit sales of Development Loans to CRF. Once the Qualified Seller Agreement is signed by both parties, CRF can buy loans from a Seller from time to time using this Loan Purchase Agreement. The Loan Purchase Agreement specifies which loans will be purchased, the conditions of the sale, and how the Seller demonstrates the loan's validity. Other conditions specified in this document are the Seller's ability to transfer the rights associated with ownership of the loan and the obligations of both parties to disclose relevant information regarding the sale and purchase of the loan. The Qualified Seller Agreement is the master document under which the Loan Purchase Agreement is executed. Additional Loan Purchase Agreements can be signed later for other loans, but the original Qualified Seller Agreement would still be in effect. Community Reinvestment Fund wants this Agreement to be clear to nonlawyers. Occasionally language is used that is legalistic in form to comply with established case law governing the purchase and sale of financial obligations. Every effort has been made to balance the reader's need for clarity with legal needs for precision and accuracy. LOAN PURCHASE AGREEMENT THIS AGREEMENT, made as of- , is between COMMUNITY REINVESTMENT FUND, INC., a Minnesota nonprofit corporation (CRF)and The Homing and Redevelopment Authority of Columbia Heights, Minnesota, a corporate and body politic, located in Columbia Heights, Minnesota, (Seller) CRF and Seller agree as follows: In consideration of the mutual undertakings and promises contained in this document and in the Qualified Seller Agreement, the parties agree as follows: Article I. Definitions 1.01. BORROWER means the borrower or borrowers obligated to pay the Development Loan or Loans as listed in Exhibit A. 1.02. CLOSING means the purchase by CRF and sale by Seller of the fight, title and interest in the Development Loan and Development Loan Documents. 1.03. COMMUNITY REINVESTMENT NOTES means any notes, bonds, participation certificates or other evidences of indebtedness issued or to be issued by CRF or any affiliate of CRF evidencing an ownership interest in or secured or to be secured in whole or in part directly or indirectly by the Development Loans. 1.04. DEVELOPMENT LOAN means the Development Loan or Loans to be sold by Seller and purchased by CRF as listed in Exhibit A. 1.05. LOAN PURCHASE AGREEMENT means this Agreement. 1.06. PURCHASE PRICE means the purchase price of a Development Loan established at Closing. 1.07. QUALIFIED SELLER AGREEMENT means the Qualified Seller Agreement between CRF and Seller.. Terms defined in Section 2 of the Qualified Seller Agreement are incorporated by reference, unless defined differently in this Agreement. Section 2. 2.01.CRF agrees to purchase and Seller agrees to sell to CRF the Development Loan or Loans in exchange for the payment of the Purchase Price as provided herein. -3- 2.02. CRF represents, warrants and covenants that it has the legal power and authority to execute and deliver this Loan Purchase Agreement and to perform the duties and obligations it undertakes in this Agreement. 2.03. By executing this agreement, Seller represents, warrants and covenants that: (a) as of date of the Qualified Seller Agreement and as of the date of this Agreement, the representations, warranties and covenants of the Seller in Section 3.03 and Section 5 of the Qualified Seller Agreement were and are (respectively) true, accurate and complete; (b) as of the date of this Agreement and as of the date of Closing, all of the Seller's representations, warranties and covenants of the Seller with respect to the Development Loans, the Development Loan Documents, the Borrowers, the Seller Documents, the Collateral, the Loan Files, the Loan Information and the Seller as of the date of this Agreement, including the representations, warranties and covenants in Section 3.02 of the Qualified Seller Agreement are and will be (respectively), true, accurate and complete; (c) Seller incorporates into this Agreement by this reference all of Seller's warranties, representations and covenants contained in the Qualified Seller Agreement with respect to the use and application of the amounts received as the Purchase Price; (d) The governing body of Seller has authorized the sale and assignment of the Development Loan and Development Loan Documents, and the sale is a valid and binding act of Seller; (e) The execution and performance of the Qualified Seller Agreement and this Loan Purchase Agreement does not conflict with or cause a breach of any law or agreement affecting Seller or the Development Loans. Additionally, by executing the Seller Documents, Seller will not cause the imposition of a lien, charge or other security interest or encumbrance upon any of the properties or assets of Seller that might result from the violation of a law or agreement. "Law or agreement" means any administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which Seller is a party or is otherwise subject; (f) No Legal Proceeding is pending or threatened against Seller, nor is there a meritorious basis for a Legal Proceeding that could: · affect Seller's existence or the title and authority of its officers; · affect Seller's ability to enter into this Agreement; -4- · restrain the sale of the Development Loans or collection of repayment of the Development Loans; contest the collateral pledged on the Development Loans; or affect the validity or enforceability of the Development Loans, Development Loan Documents, the Qualified Seller Agreement or this Loan Purchase Agreement. 2.04. At a time agreeable to CRF and Seller, Seller will deliver to CRF at the offices of Community Reinvestment Fund, 2400 Foshay Tower, 821 Marquette Avenue, Minneapolis, Minnesota, the unqualified assignment of the Development Loan(s) in definitive form duly executed, together with the other documents mentioned in this agreement. CRF will accept the delivery of those items and pay the Purchase Price as detailed in Exhibit A of this Agreement. Payment will be made by certified or official bank check or checks payable in Minneapolis clearing house (next day) funds. 2.05. (a) In entering this Agreement, CRF has relied upon the representations, warranties and covenants of Seller in the Qualified Seller Agreement and in this Agreement, as follows: (1) The representations, warranties and covenants of Seller contained in this Agreement and in the Qualified Seller Agreement were true, complete and accurate on the date of this Agreement and at Closing; (2) Performance by Seller of all obligations of Seller under the Seller Documents at or prior to closing; and (3) At the Closing, the Note and all Seller Documents will be in full force and effect. (b) No modifications or amendments of or supplements to the Note and Development Loan Documents or other Seller Documents are allowed, except as agreed to in writing by CRF and its counsel. (c) At or prior to the Closing, CRF must have received the following documents: (1) All Development Loan Documents, including all documents, statements, assignments and other instruments described in the Qualified Seller Agreement, including the checklist attached to it as Schedule I; and (2) any additional legal opinions, certificates, proceedings, instruments and other documents reasonably requested by CRF or its counsel to demonstrate compliance by Seller with legal requirements pertaining to the representations, warranties and covenants of Seller in the Seller Documents. -5- 2.06. Seller agrees to pay all expenses and costs required to perform its obligations hereunder and under the other Seller Documents. These expenses and costs include, but are not limited to, fees of consultants and fees and expenses of Seller's counsel. 2.07. CRF or its Representatives may notify Seller of any information pertinent to this Agreement in writing at the address and manner specified in the Qualified Seller Agreement. 2.08. This Loan Purchase Agreement is made solely for the benefit of Seller and CRF (including the successors or assigns of CRF), and gives no rights to any other persons, parmership, association or corporation. 2.09. The representations and agreements of Seller in this Loan Purchase Agreement remain in effect regardless of any investigation made by or on behalf of the CRF and will survive the delivery of and payment for the Development Loans. 2.10. CRF's interest in the Development Loans and Development Loan Documents is assignable to any entity formed, sponsored, managed or controlled by CRF and any lender or trustee or agent on behalf of any investor or lender, including a trustee acting on behalf of holder of notes or other obligations issued by or on behalf of CRF or an affiliate and secured by one or more Development Loans. 2.11. This Agreement is to be construed and interpreted in accordance with the laws of the State of Minnesota. -6- 2.12. The Agreement may be executed in any number of counterparts, each of which may be considered an or/ginal copy. The Agreement has been executed and delivered by the duly authorized representatives of Seller and CRF. Accepted and Agreed to: HOUSING AND REDEVELOPMENT OF COLUMBIA HEIGHTS, MINNESOTA (Seller) By: Its: Chair DATED: ,20 ~ COMMUNITY REINVESTMENT FUND, INC. (CP,.F) By: DATED: ,20 And By:. Its: Executive Director DATED: ,20 ~ -7- EXHIBIT A The Development Loan(s) listed below shall be purchased by CRF and sold by Seller pursuant to this Loan Purchase Agreement and the Qualified Seller Agreement between Seller and CRF for the Purchase Price and in compliance with any conditions to purchase stated below. Note Dated May 16th, 1979 made by Karen M. Nielsen having a current balance of with a purchase price of including accrued interest from ,2001. Note Dated April 25th, 1979 made by Linda Chartraw having a current balance of with a purchase price of including Accrued interest from ,2001. (656595.1) -8- ASSIGNMENT OF NOTE (ALLONGE) KNOW ALL PEOPLE BY THESE PRESENTS, that the Housing and Redevelopment Authority of Columbia Heights, Minnesota, a corporate and body politic, for one dollar and other good and valuable consideration the receipt whereof is hereby acknowledged, hereby assigns to Community Reinvestment Fund, Inc., a Minnesota nonprofit corporation located in Minneapolis, Minnesota, all of the fight, title and interest of Housing and Redevelopment Authority of Columbia Heights, Minnesota, in and to that certain note, to which this Allonge is affixed and is made a part thereof, made by Karen M. Nielsen, in the original principal amount of $43,878.00, (FORTY THREE THOUSAND EIGHT HUNDRED SEVENTY EIGHT DOLLARS) and dated May 16th, 1979. Payable to the order of Community Reinvestment Fund, Inc. Housing and Redevelopment Authority of Columbia Heights, Minnesota (SELLER) By: Its: Chai'r By: Its: Executive Director Exhibit I - 2 ASSIGNMENT OF MORTGAGE FOR VALUABLE CONSIDERATION, The Housing and Redevelopment Authority of Columbia Heights, Minnesota, a corporate and body politic under the laws of the State of Minnesota, Assignor (whether one or more), hereby sells, assigns and transfers to Community Reinvesunent Fund, Inc., a Minnesota nonprofit corporation, Assignee, the Assignor's interest in the Mortgage dated May 16t~. 1979, executed by Karen M. Nielsen, single, as Mortgagor, to the Housing and Redevelopment Authority of Columbia Heights, Minnesota, as Mortgagee, and filed for record ., as Document Number , in the Office of the County Recorder of Anoka County, Minnesota, together with all right and interest in the note and obligations therein specified and the debt thereby secured. Assignor covenants with Assignee, its successors and assigns, that there is still due and unpaid of the debt secured by the Mortgage the sum of EIGHTEEN THOUSAND TWO HUNDRED TWENTY FOUR AND 08/100 DOLLARS, with interest thereon fi:om September ,2001, and that Assignor has good fight to sell, assign and transfer the same. Dated: ,2001_ Housing and Redevelopment Authority of Columbia Heights, Minnesota, Assignor By: By: Its: Its: Chai r Lxecuti ve Di rector STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this and , the , respectively, of the under the laws of the State of Minnesota. day of September, 2001, by and ., Minnesota, Notary Public THIS INSTRUMENT WAS DRAFTED BY: Community Reinvestment Fund, Inc. Suite 1800 W 801 Nicollet Mall Minneapolis, Minnesota 55402 Abstract Property COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (I-IRA) Meeting of: September 18, 2001 AGENDA SECTION: - ORIGINATING EXECUTIVE NO: q~k DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Warrick Sheffield Loan Payoff BY: Randy Schumacher BY: DATE: September 13, 2001 BACKGROUND: On May 25, 1995, the HRA issued a Sheffield Home Improvement Loan Promissory Note to John S. and Mary C. Warrick, 4636 Fillmore Street NE, for roofing and siding their house. This is the last Sheffield Loan that staff receives monthly payments for. Therefore, staff has offered the Warrick's a 5% discount on their loan for early payoff of the remaining balance of $1,992.71. On Wednesday, September 12th, Mr. Warrick met with staff to discuss their options of paying off the home improvement loan early. As a result of that meeting, Mr. Warrick is prepared to write a check for $1,811.89, provided this action will be approved by the HRA. Attached are copies of the original promissory loan note, the letter to the Warrick's, and the 2001 loan payment schedule. RECOMMENDATION: Staff recommends the HRA Board accept the mount of $1,811.89 to satisfy the Sheffield Home Improvement Promissory Note between John S. and Mary C. Warrick and the HRA dated May 25, 1995. RECOMMENDED MOTION: Move to approve $1,811.89 as the payoff amount for the Sheffield Home Improvement Loan Promissory Note, dated May 25, 1995, from John S. and Mary C. Warrick, to be deposited into the Business Revolving Loan Fund; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Attachments HRA ACTION: h: ~ 2001\Warrick Sheffield Loan Payoff SHEFFIELD HOME IMPROVEMENT LOAN PROMISSORY NO~E Date: 5/25/95 ~,redi tot: Housing and Redevelopment Authority of Columbia Heights, Minnesota BorroweP's Na~: John S. Warrick Co-borrower's #ame: Mary C. Warrick Address of Promrty to be %~rov~: 4636 Fillmore Street N.E. - Columbia Heights, MN 55421 I promise to pay to the order of the Columbia Heights Housing & Redevelopment Authority (HRA) five thousand and no/100 dollars ($ 5,000.00) plus interest on the unpaid balance at'an annual rate of 2%. Interest starts on the date of this note and continues until my loan has been paid in full. To repay you, I will make: 119 payments of $ 46.01 each on the 15th day of each month, starting on July 15, 1995 , and one additional payment of $45.56 due on ~ 15, 2005. may prepay my loan at anytime without penalty. ~,,////.C I Anyone buying an interest in my property may not be allowed to assume the remainder of my debt on the original terms. Upon any default in the payment of interest or installment, this note shall become immediately due and payable at the option of the holder hereof. The makers, endorsers, sureties and guarantors hereof hereby severally agree to pay all costs of collection, or a reasonable attorney's fee, in case payment shall not be made at maturity, and severally waive presentment for payment,notice of non-payment, protest and notice of protest and diligence in enforcing payment or bringing suit against any party hereto. The endorsers, sureties and guarantors hereof hereb severally consent that the time of payment may be extended, or this note renewed, from time to time without notice to them and without affecting their liability hereon. ANNUAL pERCENTAGE RATE FINANCE CHARGE AMOUNT FINANCED TOTAL OF PAYMENTS The cost of my credit as a The amount the credft The amount of credit The amount I wiLL have yearly rate. wiLL cost me, provided to me or on my paid after making aLL behalf, payments as scheduled. 2.00 % $ 520.75 $ 5,000.00 $ 5,520.75 NUMBER OF PAYMENTS AMOUNT OF PAYMENT 119 $ 46.01 1 $ 45.56 WHEN PAYMENT ARE DUE MONTHLY BEGINNING: July 15, 1995 June 15, 2005 B~rower s Signature/Date Co-b~ower' s Signature/Date Expiration Date shelf not REBECCA S. TOWNSLEY NOTARY PUBliC'MINNESOTM CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 ~'~'~'~it Our Website at: www. ci. columbia-height$.mn, us HRA COMMISSIONERS Marlaine Szurek Julienne Wyckoff Gary L. Peter$on Bobby Uitliams Bruce Nawrocki HOUSING & REDEVELOPMENT AUTHORITY (HRA) September 11, 2001 John S. and Mary C. Wamck 4636 Fillmore Street NE Columbia Heights, MN 55421 Dear Mr. And Mrs. Warrick: First of all, let me thank you for your prompt repayment each month of your $5,000 loan from the Columbia Heights Housing and Redevelopment Authority. My purpose in writing this letter is to ask you consider either paying off the remaining amount of the loan at a 5% discount, less remaining interest, or consider a faster repayment schedule that would pay offthe loan quicker. This would save interest expenses for you. You are under no obligation to accept either of these two choices. I appreciate your consideration of this request and please call me at (763)-706-3672, after 3 p.m. to discuss this further. Sincerely, Mark Nagel Housing Coordinator C: Randy Schumacher, Acting Community Development Director Walt Fehst, City Manager Warrick File H:\Loans2001 \Warrickletter THE CItY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE aASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES SHEFFIELD LOAN PAYMENT NAME OF BORROWER: ADDRESS: John S. & Mary C. Warrick 4636 Fillmore St NE Columbia Heights, MN 55421 MONTHLY PAYMENT: $46.01 Due 15'a of each month YEAR: 2001 Sent Payment book ~/~,~/0[ Month Payment Date Principal . Interest Check # Payment Balance Amount Paid 299.00.13400 299.00.3621~ # January q {o .kS ~ [ {-~ ~l 42.12 3.89 q{q I 68 $2,289.55 February ~o?i ~ak~\ 42.19 3.82 q oq(~ 69 $2,247.36 M~ch "'fl~k ~ -,,~t 42.33 3.68 a ~ ;~ 71 $2,162.77 April May q~k 6[ ~ ~X 42.41 3.60 q~q~ 72 $2,120.36 July ~ i~k~(~,~ 42.55 3.39 ~qq 74 $2,035.33 flaa Sept. q~,~ ~¢5~'~ 42.69 3.25 ~; 76 $1,950.02 Oct. 42.76 3.18 77 $1,907.26 Nov. 42.83 3.18 78 $1,864.43 Dec. 42.90 3.11 79 $1,821.53