HomeMy WebLinkAbout2013-03-04-13 HRA AgendaHOUSING & REDEVELOPMENT AUTHORITY AGENDA
6:30 P.M.
Si ecial Meeting March 4, 2013
Conference Room 1, City Hall 590 40T`r AVE., COLUMBIA HEIGHTS, MN
1. Call to Order
2. Roll Call Tammera Diehm, Chair
Bobby Williams, Vice Chair
Rheta Nelson
3. Pledge of Allegiance
Public Hearing
Bruce Nawrocki
Donna Schmitt, Secretary /Treasurer
Gary Peterson
4. Amendment to the PHA Plan (including approval of Conversion Assessment and Conversion
Plan) Resolution 2013 -04
Motion move to waive the reading of Resolution 2013 -04, there being ample copies
available to the public.
Motion move to adopt Resolution 2013 -04, approving Resolution of the Columbia
Heights Housing and Redevelopment Authority Confirming Approval and Significant
Amendment to the 5 -year annual plan.
Business Items
5. Approve Beautician License Agreement with Carmen Knahe
Motion: move to approve `Beautician Licensing Agreement' Dated March 4, 2013, by
and between the City of Columbia Heights Housing and Redevelopment Authority and
Carmen Knake.
The next HRA rneeting will be Monday. April 23, 2013 at Parkview Villa.
COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA)
Special Meeting of: March 4, 2013
AGENDA SECTION: Public Hearing
ORIGINATING
EXECUTIVE
NO: 4
DEPARTMENT: HRA
DIRECTOR
APPROVAL
ITEM: PHA Plan Amendment and Conversion
BY: Scott Clark
BY:
Assessment and Plan
DATE: February 26, 2013
BACKGROUND: The next steps in the sale of Parkview, Villa is for the HRA to take action on a Conversion
Assessment and Conversion Plan, in addition to a PHA Plan Amendment stating that the aforementioned action
will be implemented. The Conversion Plan is a second try at the dissolution of the Public Housing Agency
contract with the Department of Housing and Urban Development (HUD).
The bottom line summary of these actions is 1) A Conversion Assessment illustrates, by the use of a I-IUD matrix,
that the cost of operating the units as tenant -based housing ( meaning using project based section 8 as the form of
assistance) is less than operating the facility as public housing with related assistance. The analysis, as shown on
the Plan, illustrates a 11% cost saving to HUD 2) A Conversion Plan is the written process requirement for
voluntary conversion of public housing to the voucher program described in item #1. The Plan describes the
process, the maintaining of affordability, the use of net proceeds for renovation and the rationale for sale and
conversion.
Lastly, the other action is an amendment to the PHA Plan that simply states the above process. A 45 day review
and comment period was held (the actual plan was reviewed at two community meetings) and no North residents
formally commented on the Plan. One South resident did send a letter of inquiry and was responded to in kind.
RE,COMMENDATION: Staff recommends the attached resolution. Note the resolution was developed through
AEON'S attorney to be in an appropriate form that HUD will accept. The passage of this resolution approves the
PHA amendment and also approves and requests submission of the Conversion Assessment and Plan.
RE' COMMENDED MOTION:
Motion: Move to waive the reading of resolution 2013 -04 there being ample copies available to the public.
Motion: Move to adopt Resolution 2013 -04, approving Resolution of the Columbia Heights Housing and
Redevelopment Authority Confirming Approval and Significant Amendment to 5 -Year and Annual Plan.
Attachments: Resolution 2013 -04, Conversion Assessment, Conversion Plan, Relocation Plan and all other related
HRA ACTION:
HRA RESOLUTION 2013 -04
RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT
AUTHORITY (HRA) CONFIRMING APPROVAL AND SIGNIFICANT AMENDENT TO
5 -YEAR AND ANNUAL PHA PLAN
WHEREAS, the Significant Amendment to 5 -Year and Annual PHA Plan (the Amendment)
provides for the voluntary conversion to vouchers of the 101 -unit Parkview Villa North public housing
development (the Development); and
WHEREAS, the Amendment strikes current text in Section 7.0 of the 5 -Year Plan for fiscal
years beginning January 1, 2010 and the Annual Plan for the fiscal year beginning January 1, 2013 and
substitutes the following:
"The HRA is submitting a voluntary conversion to HUD for its 101 units of public housing under
Section 22 of the United States Housing Act of 1937 and related requirements of the U.S. Department of
Housing and Urban Development (HUD). The attached Conversion Assessment and Conversion Plan
describe this action and the reasons for it. It is anticipated that, subject to fulfillment of all HUD
requirements, the result will be a renovated development assisted by project -based vouchers with
continued availability to current and future low- income households. In accordance with HUD
requirements, the Conversion Assessment is submitted with the PHA's 5 -Year and Annual Plan as
amended by this Significant Amendment and the Conversion Plan is made part of the 5 -Year and Annual
Plan as amended by this Significant Amendment."; and
WHEREAS, the Amendment's text was published for review and comment in the local
newspaper and copies have been available for review at the local Public Library, administrative offices of
the PHA, and the PHA development management office; and
WHEREAS, HRA staff met with the Resident Council of the Development, which also serves as
the Resident Advisory Board, to review the Amendment, the Conversion Assessment and the Conversion
Plan and received no written comments; and
WHEREAS, the Board of Coin inissioners has reviewed the Amendment, the Conversion
Assessment and the Conversion Plan and supports the contemplated actions as the best means of utilizing
the Development to further long -term affordable housing in Columbia Heights;
NOW, THEREFORE BE IT RESOLVED, by the Board of Coin inissioners of the Columbia
Heights Housing & Redevelopment Authority that:
(1) the Amendment to the 5 -Year and Annual Plan is adopted, provided that the Executive
Director may make any necessary corrections or modifications to the Conversion Assessment and
Conversion Plan prior to their submission to the U.S. Department of Housing and Urban Development
(HUD); and
(2) the Executive Director is authorized to take all actions necessary to provide for consideration
and approval by HUD of the proposed voluntary conversion of the Development and otherwise to provide
for the successful conversion, transfer of ownership and figure use of the Development as proposed in the
Conversion Assessment and Conversion Plan.
1243370.3036968 FILE
ADOPTED THIS 4"' Day of March, 2013
MOTION BY:
SECONDED BY:
ROLL CALL:
HOUSING & REDEVELOPMENT AUTHORITY
Chair- 'fammera Diehm
Executive Director - Walter Fehst
1243370.3036968 FILE
For HRABoard of Commissioners
Consideration on March 4, 2013
Columbia Heights Housing and Redevelopment Authority
Voluntary Conversion
CONVERSION ASSESSMENT
Parkview Villa North is a nine story, 101 -unit public housing high rise for seniors and/or
disabled households owned and operated by the Columbia Heights Housing and Redevelopment
Authority (HRA). It is anticipated that, subject to fulfillment of all HUD requirements, the result
of voluntary conversion will be a renovated development assisted by project -based vouchers with
continued availability to current and future low- income households. The Conversion
Assessment is a basic requirement for voluntary conversion of public housing to vouchers. A
discussion of each of its five required elements per §972.218 follows:
(a) Cost Analysis
The Columbia Heights Housing and Redevelopment Authority ( "HRA ") completed the HUD -
supplied cost analysis, comparing the cost of providing Section 8 tenant -based assistance with
the cost of continuing to operate the development as public housing. The cost analysis shows
public housing costs exceeding voucher costs by 11 %.
(h) Analysis of the Market Value
(1) In January and February 2013, the BRA had an independent appraisal conducted for
Parkview Villa North to compare the market value of the development before and after
rehabilitation.
(2) The conclusions are as follows:
Current Value "As Is" Public Housing - $3,850,000
Future Value "Post Rehab" Public Housing — $4,760,000
Current Value "As Is" Assisted Housing - $5,200,000
Current Value "As Is" Market Rate Housing - $5,600,000
Future Value "Post Rehab "Assisted Housing — $6,190,000
Future Value "Post Rehab" Market Rate Housing— $6,790,000
"Highest and Best Use" Value or "Market Value" - $6,790,000
(3) A copy of the appraisal demonstrating the findings and analysis of market value of the
development is included in the attachments.
Parkview Villa — Conversion Assessment and Plan Page 1
For HRA Board of Commissioners
Consideration on March 4 2013
(c) Analysis ofRental Market Conditions
(1) The HRA conducted an analysis of the likely success of using tenant -based assistance for
the residents of the Parkview Villa North public housing development through the
Metropolitan Council Housing and Redevelopment Authority ( "Metro HRA "). The Metro
HRA administers the Section 8 housing choice voucher program as well as Shelter Plus
Care, HOPWA and two state funded tenant based rent assistance programs for the City of
Columbia Heights and nearly 100 suburban communities throughout Anoka, Hennepin,
Ramsey and Carver Counties, serving approximately 6,800 -1- households. Within its own
portfolio, Metro HRA is currently assisting 1,391 Section 8 participants. There is a
sufficient availability of decent, safe and sanitary dwelling units in the market area rented
at or below the applicable Section 8 payment standard for the jurisdiction including
vacant units at the adjacent Parkview Villa South development. Comparable vacant units
for seniors in the market area are averaging $760 for one - bedrooms and $860 for two -
bedroom units which is below the current payment standard of $790 for a one- bedroom
and $960 for a two - bedroom. Metro HRA's Section 8 program has a utilization rate of
98.2 %, evidencing the success of providing tenant -based vouchers in suburban cities.
(2) Recent success rates are consistent with the overall high utilization rate. 48% of the
Metro HRA's current program participants are elderly and /or disabled. On its current
closed waiting list of 1500, 40% are seniors and /or disabled. In any event, subject to
fulfillment of HUD requirements, the HRA expects to project -base the vouchers at the
current site, thus allowing the residents to remain in place.
(d) Impact Analysis
(1) There will be no impact on the availability of affordable housing in the neighborhood
where the public housing units are located. The Columbia Heights HRA currently owns
Parkview Villa. In 2009, the HRA initiated a process to evaluate their ability to
effectively operate Parkview Villa into the fixture. The HRA determined that continued
ownership and operation of Parkview Villa is not economically feasible under the current
financing and ownership structure, particularly with increasing capital needs and
decreasing PHA subsidies from HUD. In 2010, the HRA modified their PHA Plan to
include the goal of disposing of the property based on their conclusion that the HRA does
not have the financial or management capacity or expertise to effectively maintain and
preserve the aging development. The HRA determined that it would be in the best
interest of the residents, HRA and city to transfer ownership to an entity that specializes
in affordable housing rehabilitation, ownership, and management and has the capacity to
effectively operate the buildings over the long -term. The general partner of that entity
would be Aeon, which has the necessary qualifications as described further below.
Parkview Villa— Conversion Assessment and Plan Page 2
For HRA Board of Commissioners
Consideration on March 4. 2013
(2) Because there is no change in the number of low income units, there will be no impact on
the concentration of poverty through the preservation, renovation and retention of
Parkview Villa North.
(3) Columbia Heights has affordable housing goals to meet. Conversion of the public
housing units at Parkview Villa North will ensure these units are renovated and
maintained while remaining affordable to the current residents of Columbia Heights and
future low income households. Successful conversion will ensure seniors /disabled
individuals will continue to have affordable housing choice and a quality home in this
suburban community.
(e) Conversion Implementation
Once the property receives approval for tenant -based vouchers for the Parkview Villa North
public housing units, the HRA will undertake the necessary steps with Metro HRA to fulfill
HUD's requirements that will allow them to project -base the units under a long -term Section 8
project -based voucher contract. Metro HRA currently has an allocation of 6,189 tenant -based
vouchers, of which 433 are currently project- based. Converting the additional 100 units would
bring the Metro HRA project- based voucher program total to 533, still well below the 20%
maximum allowable under the project based voucher regulations.
From approval of voluntary conversion and establishment of project -based voucher designation,
the HRA will transfer ownership to an entity that will use a variety of resources not available to
the HRA including 4% tax credits, HOME funds and private equity to renovate the property.
The entity will be a limited partnership of which Aeon will be the sole general partner. It is
essential to do this promptly to retain the finding commitments. These activities are anticipated
to be completed within 6 -9 months from HUD approval of voluntary conversion.
Necessary Conditions for HUD Akproval of Conversion
(a) Conditions. Per §972.224, Columbia Heights BRA conducted a conversion assessment that
demonstrates that the conversion of Parkview Villa is:
(1) Cost effective and not more expensive to continue to operate it as public housing;
(2) Will principally benefit the residents, the HRA and the community; and
(3) Will not adversely affect the availability of affordable housing in the community.
(h) Evidence
Parkview Villa — Conversion Assessment and Plan Page 3
For HRA Board of Commissioners
Consideration on March 4, 2013
(1) Relative expense. The cost analysis results demonstrate that it is not more expensive to
convert the public housing development than continuing to operate the development as
public housing.
(2) Benefit to residents, the PHA, and the community. Continued success of this suburban
affordable housing development greatly benefits the current residents, neighbors, and
communities in and around Columbia Heights.
(i) Conversion will principally benefit the residents, the PHA and the community as
demonstrated in the rental market analysis, the analysis of the impact on the
neighborhood, the market value analysis and the proposed future use of the
development. The conversion does not conflict with any litigation settlement
agreements, voluntary compliance agreements or other remedial agreements
signed by the PHA with HUD.
After a frank evaluation process of its own internal capacities, the Columbia
Heights HRA determined that continued ownership and operation of Parkview
Villa is not economically feasible under the current financing and ownership
structure, particularly with increasing capital needs and decreasing PHA subsidies
from HUD. The HRA determined that it would be in the best interest of the
residents, the HRA and the city to: 1) partner with Metro HRA to administer
project -based vouchers at Parkview Villa North; and 2) transfer ownership to an
entity that specializes in affordable housing rehabilitation, ownership, and
management and has the capacity to effectively operate the buildings over the
long -term.
A competitive process determined that Aeon, a Minneapolis -based affordable
housing owner and developer, would comprise the new ownership entity. Re-
investment in Parkview Villa is required to preserve the long -term affordability
and stability of a critical, large population and community asset. The HRA has
determined this can only be accomplished by conversion and conveying the
property to another owner with the expertise and capacity to manage it effectively.
Without voluntary conversion, the building's current ownership structure will
have to remain in place without a clear path to implementing much needed capital
improvements. This leaves Parkview Villa at risk for further effects of deferred
maintenance, systems breakdown, and health /safety issues for a vulnerable
population of residents unlikely to be able to afford other housing opportunities in
the area. Without safeguarding conversion to Section 8 tenant -based assistance,
the reserves will continue to diminish and Parkview Villa North would be at -risk
for conversion to market rate or closing.
Parkview Villa — Conversion Assessment and Plan Page 4
For HRA Board of Commissioners
Consideration on March 4 2013
Aeon stewardship of the property will also bring many resources to bear on a
population that needs it most. Aeon is exceptionally skilled at understanding
resident needs and will develop programming and service plans that will allow
even the most challenged residents to thrive. Aeon has two models to provide
services and resources to residents. The first is through the internal Resident
Connections team, who works closely with property management staff to pinpoint
opportunities for group- focused activities (such as resident picnics and workshops
relating to topics such as budget management), and individual support when a
resident may need very specific assistance to support a health or other personal
situation. Aeon closely evaluates each property and population for the right type
of support.
At this time, supports such as those that Aeon puts in place are non- existent or
extremely limited. Without a change in ownership, the senior and disabled
population at Parkvicw Villa will not be able to take advantage of these
comprehensive, on -site services, which become more important as the population
ages.
(ii) The intent of the conversion is to allow for the preservation, renovation and long
term affordability of Parkvicw Villa for the existing and future residents. While
there is sufficient supply of area landlords providing tenant -based assistance
including the Metro HRA, and good access to schools, jobs and transportation,
subject to fulfillment of HUD requirements, the HRA expects to project -base the
vouchers at the current site, thus allowing the residents to remain in place.
(iii) With respect to benefit to residents, the HRA provided copies of the Conversion
Assessment and Conversion Plan to all residents. A meeting was held with the
Resident Council on January 7, 2013. Residents were invited to resident meetings
held on January 14, 2013 and January 16, 2013 and the public HRA meeting on
January 22, 2013. At these meetings, the HRA explained the Conversion Plan and
the requirements for voluntary conversion.
(iv) The HRA allowed forty five days for the submission of comments on the
conversion process. Resident comments received related to the benefits of the
conversion or continued affordability. Residents expressed an overwhelming
desire to remain at the property and welcomed the much needed renovations. The
residents see the conversion as a positive action since there is no displacement or
relocation.
Parkview Villa — Conversion Assessment and Plan Page 5
For HRA Board of Commissioners
Consideration on March 4, 2013
(3) Impact on Ajfordahle Housing. The voluntary conversion action would help to preserve the
current affordable housing at Parkview Villa as a viable resource over the coming
decades, by allowing for more efficient administration and better support for the
development's physical needs.
ATTACHMENTS
I. HUD Cost Analysis
II. Appraisal
Parkview Villa— Conversion Assessment and Plan Page 6
Attachment VCA #1
Assumptions for the Cost Comparison
1. The operating expense numbers used represent 2012 actual year end figures for Parkview
Villa. Over 50% of the existing residents are disabled with support service needs. Future
operating expenses include supportive service funding for this vulnerable population.
2. The voucher costs are based on the average gross rents for new move ins administered
under the Metropolitan Council's Section 8 Housing Choice Voucher program. The Metropolitan
Council administers all Section 8 vouchers for the Columbia Heights area.
3. Parkview Villa was constructed in 1974 and has significant physical needs. In partnership
with Minnesota Housing, moderate rehabilitation (approximately $23,500 per unit) is planned for
Parkview Villa which is anticipated to address several of the major systems to modernize the
property to 20 year standards. While not all accumulated backlog items are addressed, the
building will be compliant with the International Existing Building Codes (ICC) or Public Housing
Modernization Standards.
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For HRA Board of Commissioners
Consideration on March 4 2013
CONVERSION PLAN
Parkview Villa North is a nine story, 101 -unit public housing high rise for seniors and /or
disabled households owned and operated by the Columbia Heights Housing and Redevelopment
Authority (HRA). It is anticipated that, subject to fulfillment of all HUD requirements, the result
of voluntary conversion will be a renovated development assisted by project -based vouchers with
continued availability to current and future low - income households. The Conversion Plan is a
basic requirement for voluntary conversion of public housing to vouchers. A discussion of each
of its seven required elements per §972.230 follows:
(a) Conversion and future use or disposition of the public housing development
The future use of Parkview Villa North, which consists of 100 public housing units plus 1
caretaker unit, is expected to be affordable housing supported by a long -term Section 8 project -
based voucher contract. This is anticipated to be done in partnership with Metro BRA after the
HRA receives replacement vouchers for the public housing and is subject to compliance with
HUD requirements. The ownership will be transferred to a limited partnership of which Aeon
will be the general partner, which will preserve and renovate Parkview Villa by securing low
income housing tax credits and other public- private financing. Long -term covenants will be put
in place to protect Parkview Villa's status as affordable senior housing.
(b) Impact analysis of the conversion on the affected community
There will be no impact on the availability of affordable housing in Columbia Heights; in fact,
this source of affordable housing will be preserved while implementing much needed physical
improvements. The 101 units of public housing at Parkview Villa North will remain affordable
to the same population via the Section 8 project -based voucher program.
Columbia Heights has affordable housing goals to meet. Conversion of the public housing units
at Parkview Villa North will ensure these units are renovated and maintained while remaining
affordable to the residents of Columbia Heights. Successful conversion will ensure
seniors /disabled individuals will continue to have affordable housing choice and a quality home
in this suburban community. Because the vouchers are expected to ultimately be project - based,
subject to fulfillment of HUD requirements, the conversion will not have an impact on
concentration of poverty in these neighborhoods. Because there is no change in the number of
units, there will be no impact on the concentration of poverty through the preservation,
renovation and retention of Parkview Villa North.
The impact of conversion on the physical asset itself is expected to be positive. Parkview Villa
North was constructed in 1974 and has significant physical needs. The building retains many
Parkvlew Villa —Conversion Assessment and Plan Page 7
For HRA Board of Commissioners
Consideration on March 4, 2013
original mechanical systems and components, which are nearing or past the end of their useful
life, drive up operating costs and reduce the overall energy efficiency of the property. While
modest modernization funds have been received over time, the subsidy provided by HUD covers
only ongoing basic operating functions and has not been sufficient for upgrading or replacement
of the major building systems including plumbing, windows, and HVAC systems. In partnership
with Minnesota Housing, moderate rehabilitation is planned for Parkview Villa which is
anticipated to address several of the major systems to modernize the property.
(c) Consistency with findings of conversion assessment
Based on the findings of the Conversion Assessment, the Conversion Plan implements the
actions contemplated by the Conversion Assessment, and thus, is consistent with the Conversion
Assessment completed in accordance with §972.218.
(d) Summary of resident comments
The HRA provided copies of the Conversion Assessment and Conversion Plan to all residents.
A meeting was held with the Resident Council on January 7, 2013. Residents were invited to
resident meetings held on January 14, 2013 and January 16, 2013; and the public HRA meeting
on January 22, 2013. At these meetings, the HRA explained the Conversion Plan and the
requirements for voluntary conversion. The HRA allowed forty five days for the submission of
comments on the conversion process. Resident comments received related to the benefits of the
conversion or continued affordability. Residents expressed an overwhelming desire to remain at
the property and welcomed the much needed renovations. The residents see the conversion as a
positive action since there is no displacement or relocation.
(e) Use of net proceeds
Any proceeds received from the conversion will be subject to the limitations under Section
18(a)(5) of the United States Housing Act of 1937, applicable to proceeds resulting from
demolition and disposition. The HRA will use all net proceeds to assist with the financing,
renovation, and long -term affordability of Parkview Villa North. All units are anticipated to
become project -based Section 8 vouchers at the Parkview Villa North building.
(fl Support of necessary conditions for conversion
The Conversion Assessment supports the three conditions necessary for conversion described in
24 CFR 972.224, for the reasons described in the Conversion Assessment. That section of the
Conversion Assessment is restated here for convenience:
Page 8
Parkview Villa — Conversion Assessment and Plan
For HRA Boardo(Commissioners
Consideration on March 4 2013
Necessary Conditions for HUD Approval of Conversion
(a) Conditions. Per §972.224, Columbia Heights HRA conducted a conversion assessment that
demonstrates that the conversion of Parkview Villa is:
(1) Cost effective and not more expensive to continue to operate it as public housing;
(2) Will principally benefit the residents, the HRA and the community; and
(3) Will not adversely affect the availability of affordable housing in the community.
(G) Evidence
(1) Relative expense. The cost analysis results demonstrate that it is not more expensive to
convert the public housing development than continuing to operate the development as
public housing.
(2) Benefit to residents, the PHA, and the community. Continued success of this suburban
affordable housing development greatly benefits the current residents, neighbors, and
communities in and around Columbia Heights.
(i) Conversion will principally benefit the residents, the PHA and the community as
demonstrated in the rental market analysis, the analysis of the impact on the
neighborhood, the market value analysis and the proposed future use of the
development. The conversion does not conflict with any litigation settlement
agreements, voluntary compliance agreements or other remedial agreements
signed by the PHA with HUD.
After a frank evaluation process of its own internal capacities, the Columbia
Heights HRA determined that continued ownership and operation of Parkview
Villa is not economically feasible under the current financing and ownership
structure, particularly with increasing capital needs and decreasing PHA subsidies
from HUD. The HRA determined that it would be in the best interest of the
residents, the HRA and the city to: 1) partner with Metro HRA to administer
project -based vouchers at Parkview Villa North; and 2) transfer ownership to an
entity that specializes in affordable housing rehabilitation, ownership, and
management and has the capacity to effectively operate the buildings over the
long -term.
A competitive process determined that Aeon, a Minneapolis -based affordable
housing owner and developer, would comprise the new ownership entity. Re-
investment in Parkview Villa is required to preserve the long -term affordability
Parkview Villa — Conversion Assessment and Plan Page 9
For HRA Board of Commissioners
Consideration on March 4 2013
and stability of a critical, large population and community asset. The HRA has
determined this can only be accomplished by conversion and conveying the
property to another owner with the expertise and capacity to manage it effectively.
Without voluntary conversion, the building's current ownership structure will
have to remain in place without a clear path to implementing much needed capital
improvements. This leaves Parkview Villa at risk for further effects of deferred
maintenance, systems breakdown, and health /safety issues for a vulnerable
population of residents unlikely to be able to afford other housing opportunities in
the area. Without safeguarding conversion to Section 8 tenant -based assistance,
the reserves will continue to diminish and Parkview Villa North would be at -risk
for conversion to market rate or closing.
Aeon stewardship of the property will also bring many resources to bear on a
population that needs it most. Aeon is exceptionally skilled at understanding
resident needs and will develop programming and service plans that will allow
even the most challenged residents to thrive. Aeon has two models to provide
services and resources to residents. The first is through the internal Resident
Connections team, who works closely with property management staff to pinpoint
opportunities for group- focused activities (such as resident picnics and workshops
relating to topics such as budget management), and individual support when a
resident may need very specific assistance to support a health or other personal
situation. Aeon closely evaluates each property and population for the right type
of support.
At this time, supports such as those that Aeon puts in place are non - existent or
extremely limited. Without a change in ownership, the senior and disabled
population at Parkview Villa will not be able to take advantage of these
comprehensive, on -site services, which become more important as the population
ages.
(ii) The intent of the conversion is to allow for the preservation, renovation and long
term affordability of Parkview Villa for the existing and future residents. While
there is sufficient supply of area landlords providing tenant -based assistance
including the Metro HRA, and good access to schools, jobs and transportation,
subject to fulfillment of HUD requirements, the HRA expects to project -base the
vouchers at the current site, thus allowing the residents to remain in place.
(iii) With respect to benefit to residents, the HRA provided copies of the Conversion
Assessment and Conversion Plan to all residents. A meeting was held with the
Resident Council on January 7, 2013. Residents were invited to resident meetings
Parkview Villa — Conversion Assessment and Plan Page 10
For HRA Board of Commissioners
Consideration on March 4, 2013
held on January 14, 2013 and January 16, 2013 and the public HRA meeting on
January 22, 2013. At these meetings, the HRA explained the Conversion Plan and
the requirements for voluntary conversion.
(iv) The HRA allowed forty five days for the submission of comments on the
conversion process. Resident comments received related to the benefits of the
conversion or continued affordability. Residents expressed an overwhelming
desire to remain at the property and welcomed the much needed renovations. The
residents see the conversion as a positive action since there is no displacement or
relocation.
(3) Impact on Affordable Horsing. The voluntary conversion action would help to preserve the
current affordable housing at Parkview Villa as a viable resource over the coming
decades, by allowing for more efficient administration and better support for the
development's physical needs.
(g) Relocation plan
No residents are anticipated to be permanently relocated due to the voluntary conversion action
and transfer of ownership of Parkview Villa. To the extent residents must be temporarily
relocated during the renovation process, they will be offered appropriate resources to do so and
notified in a timely manner in compliance with applicable requirements.
A relocation plan is attached.
ATTACHMENTS
I. HUD Cost Analysis
II. Appraisal
III. Relocation Plan
Parblew Villa —Conversion Assessment and Plan Page 11
)PMENT SERVICES, LLC
PROVIDING ACQUISITION AND RELOCATION SERVICES SINCE 1981
Parkview Villa North (101 Units)
Parkview Villa South (45 Units)
965 40th Avenue NE
Columbia Heights, MN
March 1, 2013
Displacing Agency: Aeon
Prepared By Daniel H. Wilson
WILSON DEVELOPMENT SERVICES LLC
OANIELH. WILSON
510 NORTH CHESTNUT STREET, SUITE 200
CHASM, MN 55310
OfR<e: 95244845'0 8004484630
Fax: 95ZA48 4676
Emall: DanWil PWII S�'�ll-
WeIDI,x: www.wtlsande elapmentservhee.mm
Project Description /Background
The Columbia Heights Housing and Redevelopment Authority ( "HRA ") is the current owner of
Parkview Villa South, a four - story, 45 unit senior housing complex, and Parkview Villa North, a
nine - story, 101 unit public housing high rise for seniors and /or disabled households subsidized
by the U.S. Department of Housing and Urban Development.
The HRA has entered into a purchase agreement with Aeon, a nonprofit housing developer, to
acquire and rehabilitate Parkview Villa North and South. Aeon intends to make improvements
to the building's interior and exterior as well as to residential units. Funding sources secured
and /or being sought to acquire, preserve and renovate these buildings include: federal HOME
funds, 4% low income housing tax credits, an FHA insured first mortgage, private equity and
deferred developer fees. In addition, the HRA is seeking HUD's approval of voluntary
conversion for Parkview Villa North from its PHA status to tenant -based Section 8 assistance.
The South building will maintain its status as a senior building for residents age 55+ with
continued affordability for its current and future residents.
It is CHHRA and Aeon's mission to minimize resident displacement and inconvenience
throughout the project. Few, if any, temporary displacements will be necessary. No occupants
will be permanently displaced due to these activities.
Building Descriptions
Name
Type
#Units
1
BR
2
BR
Handicap
Current
Vacancies
Unit Size
Funding
Request
Parkview
3
45
41
4
2
5
562/715 sq.
HOME,
South
Story
ft.
LIHTC
Parkview
9
101
101
0
6
2
570 sq. ft.
HOME,
North
Story
LIHTC, HUD
Voluntary
Conversion
HUD Voluntary Conversion
It is anticipated that, subject to fulfillment of all HUD requirements, the result of voluntary
conversion will be a renovated development assisted by project -based vouchers with continued
availability to current and future low- income households. Once the property receives approval
for tenant -based vouchers for the Parkview Villa North public housing units, the HRA will
undertake the necessary steps with Metro HRA to fulfill HUD's requirements that will allow
them to project -base the units under a long -term Section 8 project -based voucher contract.
From approval of voluntary conversion and establishment of project -based voucher
designation, the HRA will transfer ownership to an entity that will use a variety of resources not
available to the HRA including 4% tax credits, HOME funds and private equity to renovate the
property. The entity will be a limited partnership of which Aeon will be the sole general
partner.
Rehabilitation Description
As ownership of this property transitions, physical updates to the buildings are much needed.
Currently, all mechanical systems in operation are original to the buildings, including the
heating and cooling systems and plumbing fixtures. This results in woefully out of date and
expensive systems to operate. In addition, windows are substandard, and many interior finishes
and appliances require replacement. As part of a feasible financial scenario that allows the
property to cash flow, the outdated operational systems must be updated. These activities will
ensure that the systems are more efficient and cost - effective, thereby decreasing the costs to
operate Parkview Villa, reducing its carbon footprint, and solidifying its affordable status.
All income eligible households will be allowed to stay in their unit during construction as an
occupied rehabilitation. Households allowed to stay in their units during construction will be
offered a day room to occupy during the daily eight hour construction period when resident will
not be allowed to occupy their residence. The construction period of rehabilitation will not
exceed five days for any rental unit.
Applicable HUD Relocation Regulations
Voluntary conversion and disposition of public housing is authorized under Sections 18 and 22
of the Housing Act of 1937 (the Act), as amended, HUD has promulgated regulations, 24 CFR
Part 972, detailing the administrative steps required to perform voluntary conversion and
resulting demolition /disposition activity in accordance with these Acts. Section 970.21 provides
the Relocation of Residents Requirements under Section 18. Note that the Uniform Relocation
Act does not apply to dispositions under Section 18.
Coordination with Anoka County Community Development Department
The displacing agency is aware of Minnesota Housing and Anoka County's roles in monitoring
the relocation process for compliance with applicable rules and regulations. The displacing
agency will cooperate with Minnesota Housing and Anoka County representatives to monitor
the rehabilitation and relocation process.
Project Displacement Summary
Permanent Displacements
No permanent displacements are anticipated. The entire Parkview Villa North complex is
annually income certified. All Parkview Villa North residents are currently eligible for the new
project income restrictions. The use of HOME funds and 4% low income housing tax credits will
require that all Parkview Villa North units be affordable to households at or below 60% of the
area median income (AMI).
The Parkview Villa South building is currently considered a market rate senior complex.
However, the project has intentionally been affordable for lower income seniors. Rents have
historically and are presently affordable to households at 40% AMI however no income or rent
restrictions govern the property. The use of HOME funds and 4% low income housing tax
credits will necessitate that the majority of Parkview Villa South units be affordable to
households at or below 60% of the area median income (AMI). It is anticipated that some units
will be designated as market rate as not to permanently displace any existing residents.
Wilson Development was not provided access to the residents at this time for concern of
making the residents anxious. The property manager did provide a file review for each resident
in the South complex. The manager identified five residents with incomes potentially over the
60% AMI income limits. It is noted that the file information in many instances was dated or
incomplete. The expectation is that they will be able to remain in occupancy and not be
permanently displaced.
Aeon recognizes that income verification defined in 24 CFR Part 5 Annual Income
Determination, will be necessary for current residents seeking to stay in the complex after the
purchase and rehabilitation. The income determination will be used to determine eligibility for
permanent displacement assistance.
The Relocation Plan includes a permanent displacement section that details a process for HUD
24 CFR 970.5 Section 18 compliance, if necessary.
Permanent Displacements Relocation Program
The following steps are typical and customary to successfully complete the displacement of
residents in compliance with Section 18. Those with special needs will have individual
relocation plans designed for their circumstances.
1. Notice of Intent to Acquire and General Information Notice (Time of application for funds)
a. Explain pending project.
b. Not eligible until receive Notice of Eligibility
c. Keep paying rent and other lease provisions to remain eligible
d. Provide current time schedule
e. Relocation pamphlet
f. Provide telephone number for questions and to keep in contact
2. Tenant Group Meeting (After notice of funding)
a. Introduction of relocation personnel
b. General information
c. Project timing and relocation timing
d. Explain rights, benefits, appeals and process
e. Relocation appeal process
f. Answer questions
g. Set up individual meetings
3. Notice of Relocation Eligibility
4. Individual Tenant Meetings
a. Explain rights and benefits under Uniform Act
b. Explain process to complete claim
c. Determine needs and preferences (tenant survey)
d. Verify income and eligibility
e. View apartment
f. Calculate self -move claim
S. Search for Comparable Units. HousingLink.org, internet websites, newspaper and WDS files
etc.
6. Notice of Comparable Housing and 90 Day Notice to Vacate.
7. Provide Additional Referral Units, as needed.
8. 30 Day Notice to Vacate.
9. Inspect Replacement Units for Decent, Safe & Sanitary and completing HQS inspection form.
10. Prepare self- moving or actual cost personal property claim with documentation.
11. Make Relocation Claim Payment and obtain Notice of Apartment Release.
12. Complete file to displacing agency.
Section 8 Residents
No residents receiving Section 8 housing assistance will be permanently displaced.
5
Preliminary Market Study— Adequate Relocation Resources
Wilson Development Services has completed and is currently relocating persons in Anoka
County. It is the opinion of Wilson Development Services that there are sufficient rental units
available in the market place to absorb any potential displacements.
Clearly, units that are available today will not be available at the time of displacement.
However, it is reasonable to conclude that there will be sufficient replacement housing options
available to permit an orderly displacement process if needed.
Temporary Displacements
The rehabilitation project is planned as an occupied rehabilitation. Off site or out of unit
temporary displacements are not anticipated. The anticipated amount of rehabilitation work
will be able to be completed within five days. Aeon has substantial experience working with a
variety of general contractors through the rehabilitation process on occupied apartment
projects. They see no reason to expect that the construction will go beyond five days in each
unit.
Temporary relocation assistance will be afforded to elderly, disabled, and special needs tenants
who need to be relocated during the rehabilitation of their units. This includes any tenants who
would experience hardship or inconvenience by remaining in the unit during rehabilitation.
The expected rehabilitation work by itself will not require the temporary displacements of
residents.
Tenant Survey /Special Needs
Tenants will be surveyed prior to the rehabilitation process to determine any special needs
that must be accommodated. Those tenants with special needs that cannot be accommodated
within the building will be temporarily relocated off site or transferred directly to a completed
apartment. At this time we are estimating that no tenants will need to be temporarily
displaced off site.
Temporary Displacements Relocation Assistance
The displacing agency will seek to minimize possible hardships created by the residents' lack of
access to their units during the 8 hour work period. Resident access needs to be restricted to
insure residents' safety and to minimize interference with the construction crew's progress.
The contractor will be responsible for the personal property move or removal in order to gain
access to the area to be rehabilitated. Boxes will be provided to residents for the placement of
small, loose personal items that would need to be moved. The owner will insure that the
individual units will remain suitable for occupying during rehabilitation by providing:
a) Appropriate considerations for safe egress to units by tenants at the end of the
day.
b) Congregate meals program for noon lunches.
c) Functioning baths and kitchens for use at night.
d) Reasonable work hours for the proposed rehab with appropriate clean up after
work each day.
e) The duration of rehabilitation work in individual tenant units will be 5 days or
less.
f) The construction work will not create safety or health hazards.
g) Assuming five units will be rehabilitated at the same time, three vacant units will
be available as a "day room" for residents to utilize while their units are under
construction. If 6 -8 units will be rehabilitated at one time, then a minimum of
four units will be available as a "day room" for residents to utilize while their
units are under construction. The units will be supplied with such items as
appliances (including stove /microwave), TV set, internet hook -ups and
bathrooms. It is anticipated that no more than five units may be disturbed at any
given time.
h) The owner will strive to accommodate any tenant complaints.
Typical Temporary Relocation Process
1. General Information Notice (given to all residents)
2. Notice of Non - Displacement (given to all income eligible residents)
3. Individual resident meeting (tenant survey) to discuss process and resident rights and
benefit, needs and preferences
4. Individual relocation plan (based upon resident needs)
5. 30 and 15 day Notice to Vacate
6. Secure suitable replacement site if necessary
7. Inspect for decent, safe and sanitary conditions
8. Prepare claim forms with documentation for all eligible increased housing expenses
9. Notify resident that can return to unit
10. Inspect original rehabbed unit for DSS condition and completing an HQS inspection form
Temporary Move Options
The short duration of the resident disruption will influence the residents' needs and decisions
with respect to the temporary relocation options. The following options will be available to
residents if temporary relocation is mandated:
1. Remain in unit
2, Stay with friends or family
3, Stay in motel
4. Meal stipend
5. Personal property move and expenses
Temporary Relocation Budget
Aeon has budgeted $31,000 to facilitate the implementation of any required temporary
displacements.
PROJECT PARKVIEW VILLA NORTH PARKVIEW VILLA SOUTH
Size 101 Units 45 Units
Tenant Profile Senior Section 8 55+
1. Motel
# Units 9 3
# of Night Stay 4 4
Cost per night 100 100
Total $3,600 $1,200
2. Meals
# Units
8
3
# of Days
4
4
Daily Rate
$27
$27
#of persons per unit
1
1
Total
$864
$324
3. Personal Property Move Assistance
#Units
35
15
$ per unit
100
100
Total
$3,500
$1,500
4. Unit Transfer /Vacant Unit
# Units
3
2
Ll
$ per unit
800
800
Total
2 400
1 60
Subtotal
$10,364
$4,624
Rounded
$11,000
$5,000
CONSULTANT SERVICES
1. Tenant Survey
# Units
146
$ per unit
50
Total
$7,300
2. Offsite Moves
# Units 12
$ per unit 600
Total 7 20
Subtotal $14,500
Rounded $15,000
Temporary Relocation Budget = $16,000
Relocation Consultant Services = $15,000
Total $31,000
Resident Communication /Information
The residents were given notice in June 2011 of the pending sale to Aeon. A Frequently Asked
Questions information paper was provided to the residents as well, in order to introduce Aeon
to the residents. On February 22, 2012, a resident meeting was held to discuss the pending
project. On February 22, 2012 a GIN Notice and Notice of Non Displacement was given to each
resident of Parkview Villa North. Upon submission of additional funding applications to Anoka
County and Minnesota Housing that would impact the entire development, all residents of
Parkview Villa North and South were sent an updated GIN Notice and Notice of Non
Displacement on January 14, 2013. Aeon and the HRA met with the Resident Council on January
7, 2013, Residents were invited to resident meetings held on January 14, 2013 and January 16,
2013 to discuss and answer questions about the relocation and voluntary conversion processes.
Residents were invited to the HRA Board meeting held on January 22, 2013 where the
information was again shared with all present.
For residents that were not at the meetings and /or did not acknowledge the GIN Notice, Aeon
staff doorknocked January 25, 2013 and again on February 8, 2013. The remaining households
were mailed a certified notice on February 19, 2013.
FJ
Aeon will continue working with the residents through the resident group council and individual
residents in each complex. Individual resident meetings will be scheduled after the closing and
a tenant needs survey will be conducted.
Aeon is experienced and committed in maintaining close communications with its residents as
an integral part of successful rehabilitation /relocation plans.
Relocation of Displaced Tenants on a Nondiscriminatory Basis
Residents who are to be displaced must be offered opportunities to relocate to other
comparable /suitable decent, safe, sanitary, and affordable housing (at rents no higher than
permitted under the Act,) which is, to the maximum extent practicable, housing of their choice,
on a nondiscriminatory basis, without regard to race, color, religion (creed), national origin,
handicap, age, familial status, or sex, in compliance with applicable Federal and State laws.
Relocation Implementation Responsibility
The displacing agency has retained Wilson Development Services LLC, a professional relocation
consulting firm, with over 30 years of experience in providing URA consulting assistance to
public agencies.
Mr. Wilson, the owner /manager of Wilson Development Services, is familiar with the
Department of HUD relocation regulations and has successfully handled multiple displacements
through the Minneapolis HUD office and Anoka County. Wilson Development Services will be
responsible for all permanent displacements and temporary displacements.
Record Keeping
The displacing agency will document and maintain records sufficient to demonstrate
compliance with all program and regulatory requirements. These records will be maintained
throughout the life of the project, and for a period of 7 years following the date of project
completion.
Separate case files for each person to be displaced from the project with sufficient evidence to
document that certain required information, assistance and services have been provided to
each occupant will be maintained.
10
Certification by State or Local Official of PHA Plans
Consistency with the Consolidated Plan
I, Walter Fehst, the City Manager of the City of Columbia Heights, certify that the Significant
Amendment to the Five Year and Annual PHA Plan of the Columbia Heights Housing and
Redevelopment Authority dated January 17, 2013, and the attached Conversion Assessment and
Conversion Plan, are consistent with the Consolidated Plan of Columbia Heights prepared pursuant
to 24 CPR Part 91.
Signed /Dated by Appropriate State or Local Official
COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA)
Special Meeting of: March 4, 2013
AGENDA SECTION: Business Items
ORIGINATING
EXECUTIVE
NO: 5
DEPARTMENT: HRA
DIRECTOR
APPROVAL
ITEM: Beautician Licensing Agreement
BY: S Clark
BY:
DATE: Feb 26, 2013
BACKGROUND: Thespino Hamm, the beautician who worked at Parkview Villa for the past
twenty years, retired at the end of January. The aforementioned position was not affiliated
with the HRA in any employment sense. The role of the HRA was to give the beauty parlor
space for no fee, in exchange for the service to the residents. Payments, bookkeeping and all
aspects of the business were retained solely through the beautician, and this was
memorialized in a contract that was signed in 2001. This service is important to the residents,
and as such, staff wanted to get a new person in place immediately. Carmen Knake has
done hair salon work in the community for over forty years and approached the staff
regarding taking over this business, with the understanding that this would be a short term
proposition due to the sale of the building. Staff had the HRA Attorney draft a new
"Beautician Licensing Agreement" and all points have been agreed to by all parties. Ms.
Knake is ready to take over immediately and has all of her insurances in place.
RECOMMENDATION: Staff recommends approval of the Agreement as written.
RECOMMENDED MOTION: Move to Approve 'Beautician Licensing Agreement" Dated
March 4, 2013, by and between the City of Columbia Heights Housing and Redevelopment
Authority and Carmen Knake.
HRA ACTION:
Beautician Licensing Agreement
This Licensing Agreement is made this day of , 2013, by and
between the Housing and Redevelopment Authority of Columbia Heights (hereafter referred to
as "the HRA ") located at 590 40th Avenue NE, Columbia Heights, Minnesota 55421, and
Carmen Knake (hereafter referred to as "Consultant ") located at 965 40th Avenue NE, Columbia
Heights.
I. Objectives
The objectives of this agreement are as follows:
Whereas, the HRA owns and manages multi - family housing facilities at 965 40t" Avenue NE in
Columbia Heights, Minnesota (hereafter referred to as "Parkview Villa ").
Whereas, the HRA does not by its employees provide barber or beauty services for its residents
at Parkview Villa, and desires to ensure that its residents have ready access to a licensed barber
or beautician to maintain proper health and appearance on a regular basis; and
Whereas, Consultant has the necessary qualifications and abilities to maintain a barber /beautician
operation at Parkview Villa and is desirous of providing such an operation upon terms and
conditions set forth below:
Now therefore, in consideration of Consultant's use of the premises as well as the obligations
outlined herein, it is hereby agreed by the parties as follows:
II. Status of Parties
The HRA and Consultant agree that their relationship is that of licensor /licensee and not of
employer and employee or principal and agent.
III. License
Consultant is hereby licensed to provide barber and beautician services exclusively to residents
of Parkview Villa on the premises as designated by the HRA. The barber and beautician services
authorized by this agreement are limited to hair cutting and styling while expressly excluding
other cosmetology services such as manicures, pedicures, facials, massages or any other services
that beautify the skin or nails. The foregoing services will be conducted by the Consultant in a
space designated by the HRA within Parkview Villa. Consultant will also be permitted to
conduct limited retail sales of hair products to the residents within the designated area.
IV. Insurance
Consultant shall purchase and maintain general commercial liability insurance to protect against
claims for damages because of injury to persons or damage /destruction of any tangible property
418729v2 RAA CL 160-81 1
arising out of the performance of Consultant's obligations under this agreement. The base
limits for the general commercial liability insurance policy shall be at least $1,000,000.
Consultant shall provide the HRA with evidence of the foregoing insurance in the form of a
certificate from the insurer no later than ten (10) days after the execution of this agreement as
well as when reasonably requested by the HRA thereafter. Consultant represents to the I-IRA
that Consultant has no employees and will not employee any other person during the term of this
agreement to provide the services at Parkview Villa as outlined herein.
V. Credentials
Consultant is responsible for insuring that appropriate licenses are obtained to render stated
services at Parkview Villa. Consultant shall provide the I-IRA with a copy of said license at the
start of the contract period and as updated thereafter.
VI. Indemnity
Consultant shall defend, indemnify, and hold the HRA harmless against any and all claims,
liabilities, damages or judgments asserted against, imposed upon or incurred by Consultant that
arise out of acts or omissions, including malpractice, negligence or breach of this agreement by
Consultant or any of its employees, agents or representatives in the discharge of its or their
professional responsibilities to a resident under this agreement.
VII. Discrimination
Consultant will comply with all laws regarding discrimination on the basis of race, color, creed,
religion, national origin, sex, sexual orientation, marital status, status with regard to public
assistance, membership or activity in a local commission, disability or age.
VIII. Confidentiality
Consultant agrees to comply with the Minnesota Government Data Practices Act (the "Act ") and
all other applicable state and federal laws relating to data privacy or confidentiality. Contractor
will immediately report to the HRA any requests from third parties for information relating to
this Agreement, or the services provided hereunder. The HRA agrees to promptly respond to
inquiries from the Consultant concerning data requests. All data created, collected, received
stored, used, maintained or disseminated by Consultant in performing its obligations is subject to
the requirements of the Act, and Consultant roust comply with the requirements of the Act as if
Contractor was a government entity. Any information regarding residents, clients, and the
business of the HRA is considered confidential and must not be shared outside of the context of
the service rendered or amongst residents living in Parkview Villa.
IX. Consultant Oblieations
A. Provide barbering and /or beautician services to any male or female resident of
Parkview Villa requesting same, upon a schedule or regular business hours
sufficient to handle such requests. Specific services to include but not limited to:
418729v2 RAA CL160 -81 2
shampoos, shampoo sets, haircuts, permanents, rinses, hair coloring, styling, etc.
The barber and beautician services authorized by this agreement do not include
other cosmetology services such as manicures, pedicures, facials, massages or any
other services that beautify the skin or nails. (Consultant will not be required to
provide services to a resident whose account with Consultant is in arrears, if
applicable).
B. Limit said treatment solely to residents of Parkview Villa and conduct no other
business on the premises for other individuals.
C. Furnish all supplies, tools, and items not otherwise provided by the HRA
hereunder, necessary to conduct such operation in a professional manner, at
Consultant's sole expense, specifically: shampoo, rinse /conditioner, hair rinse or
colors, permanent solutions, curlers, curling irons, blow dryers, brushes, combs,
clips, cleaning solutions and supplies.
D. Post at all times, in a conspicuous place, Consultant's current charges for various
services offered. Any change in charges must be pre - approved by the HRA.
B. Comply in all aspects with standards and requirements of applicable State
authority as to practices, procedures and conditions of the operation of
barber /beauty shops.
F. Arrange for qualified substitute personnel to maintain continuous operation in the
event the Consultant is unavailable to operate shop on a regular basis, due to
vacation, sickness, leave of absence or otherwise until Consultant's return.
G. Follow State and Federal Resident Rights, State and Federal regulations related to
infection control, MN Vulnerable Adult Law, and Parkview Villa Policies and
Procedures.
H. Sanitize all equipment (curlers, combs, brushes, etc.) after each such use in an
approved disinfecting solution. As well as the laundering of any towels or linens
used in conjunction of rendered services.
L Maintain the work area, work station and supply storage areas in a clean and
orderly manner at all times.
I Consultant will be held accountable and responsible for damages incurred to the
HRA's property and /or equipment as a result of willful /malicious conduct with
the intent to damage or damage incurred as a result of Consultant's negligent
conduct.
K. Consultant shall be solely responsible for the preparation of billing statements and
collection of funds due from residents or clients for professional services
rendered. The HRA shall not be responsible for any uncollectible accounts.
418729v2 IAA C1.160 -81 3
L. Consultant's commerce to be limited to only customary barber /beauty services as
outlined herein along limited retail sale of hair products. Consultant will not
engage in any other business, trade or practice nor conduct marketing or sales for
any other business, trade or practice while on the HRA's site.
M. Consultant may market barber /beauty services that are offered by Consultant to
the Parkview Villa residents. All marketing materials, communications, etc. will
be produced and distributed at Consultant's expense. Marketing materials as well
as means of distribution must be approved by the HRA prior to commencement of
any marketing activities.
O. Strictly comply with the HRA's non - smoking policy at Parkview Villa.
X. HRA Oblications
A. Space for Services
The HRA agrees to provide Consultant with a designated space within Parkview Villa to
adequately fulfill Consultant's obligations to provide barber and beautician services
under this agreement. The HRA shall also provide necessary heating, air conditioning,
water and electrical supply. The HRA also agrees to provide Consultant with the
fixtures, items of equipment, and furnishings described in the attached Exhibit "A ".
B. Supplies
The HRA agrees to provide housekeeping services (floor care), maintenance services and
office services (photocopying, faxes, etc.) within the space provided to Consultant for .
C. Maintenance
The HRA shall maintain designated space, fixtures and furnishings in good repair and
working order, and provide necessary janitorial work. Consultant shall promptly report
to the HRA any equipment or fixtures that are in need of repair.
XI. Term of Agreement
1. This agreement will commence on the day of , 2013, and
shall be in existence for a period of one year from and after the commencement
date. Thereafter, this agreement will automatically renew on each anniversary
date unless terminated by either party hereto.
2. This agreement may be terminated, at any time, by either party upon a written 30-
day notice to the other party.
3. This agreement may be terminated immediately by the HRA upon written notice
418729v2 RAA CL 160-81 4
to the Consultant in the event the health or safety of any resident of Parkview
Villa deemed to be at risk.
XII. Delegation /Assignment
Neither party hereto shall delegate responsibilities nor assign rights acquired hereunder
without the prior written approval of the other party.
XIII. Amendments
No amendments may be made to this agreement except in writing and executed in the
same manner as this agreement.
XIV. Notices
Any notice or demand authorized or required under this Agreement shall be in writing
and shall be sent by certified mail to the other party as follows:
To Consultant: To the BRA:
HOUSING AND REDEVELOPMENT
AUTHORITY OF COLUMBIA HEIGHTS
By:
Its:
Date:
CONSULTANT
By:
Its:
Date:
I:
Its:
Date:
418729v2 RAA CL 160 -81 5
Exhibit A
Fixtures, items of equipment, furnishings located in the barber /beauty shop at Parkview Villa that
are the property of the HRA include the following:
uanti Description
2 Each Chair with Hairdryer attached
1 Each Beauty Chair
It is agreed between the undersigned that the equipment described above is the property of HRA.
HOUSING AND REDEVELOPMENT
AUTHORITY OF COLUMBIA HEIGHTS
By: By:
Its: Its:
Date: Date:
CONSULTANT
Date:
418729v2 RAA CL 160 -81 A -1