Dakota County CDA
Board of Commissioners
Special Board Meeting Agenda
Meeting Date: February 28, 2024 2:00 PM CDA Boardroom, Eagan, MN
1. Call To Order And Roll Call
2. Audience
Anyone wishing to address the CDA Board on an item not on the agenda, or an item on the
consent agenda may notify the Clerk to the Board (Sarah Jacobson, [email protected] or
651-675-4434) and instructions will be given to participate during the meeting or provide written
comments. Verbal comments are limited to five minutes.
3. Oath Of Office – Commissioner Laurie Halverson, District 3
4. Election Of 2024 Board Secretary
5. Approval Of Agenda And Meeting Minutes
A. Approval Of Meeting Minutes – January 24, 2023 Annual Meeting 3
B. Approval Of Meeting Minutes – January 24, 2023 Regular Meeting 7
6. Federal Public Housing And Housing Choice Voucher
No items.
7. Consent Agenda
A. Approval Of Record Of Disbursements – January 2024 14
B. Award Contract For Access Control Replacement At Carmen Court (Inver Grove
Heights) And The Dakotah (West St. Paul)
16
C. Establish The Date For A Public Hearing On Qualified Allocation Plan For The
Allocation Of 2025 Low Income Housing Tax Credits
21
D. Approval Of Amendments To Personnel Policy #295 – Flex Leave Donation 24
1
Meeting Date: February 28, 2024 2:00 PM CDA Boardroom, Eagan, MN
8. Regular Agenda
A. Public Hearing To Receive Comments And Approve Conveyance Of Land To
The Denmark Trail Workforce Housing Limited Partnership (Denmark Trail
Townhomes, Farmington)
31
B. Approval Of Contingent HOME American Rescue Plan Award To 360
Communities Lewis House Shelter (Eagan)
34
C. Discussion Of Proposed Changes To The 2025 Qualified Allocation Plan For
Low Income Housing Tax Credits
50
D. Legislative Update
65
E. Executive Director Update
9. Information
10. Adjournment
For more information, call 651-675-4434.
Dakota County CDA Board meeting agendas are available online at:
http://www.dakotacda.org/board_of_commissioners.htm
Next Meeting
March 27, 2024
CDA Board of Commissioners Regular Meeting – 1:00 p.m.
Dakota County CDA Boardroom, 1228 Town Centre Drive, Eagan, MN 55123
March 27, 2024
CDA Board of Commissioners Housing Strategic Plan Workshop – 2:00 p.m.
Dakota County CDA Boardroom, 1228 Town Centre Drive, Eagan, MN 55123
2
Board of Commissioners
Meeting Minutes
Meeting Date: January 24, 2024 1:00 PM Boardroom; CDA Office, Eagan, MN
Commissioner Slavik called the meeting to order at 1:00 p.m.
COMMISSIONER ROLL CALL
CDA staff in attendance:
Tony Schertler, Executive Director
Kari Gill, Deputy Executive Director
Sara Swenson, Director of Administration and Communications
Sarah Jacobson, Administrative Coordinator
Lisa Alfson, Director of Community & Economic Development
Maggie Dykes, Assistant Director of Community & Economic Development
Lisa Hohenstein, Director of Housing Assistance
Travis Finlayson, Assistant Director of Housing Assistance
Anna Judge, Director of Property Management
Others in attendance:
Lucie O’Neill, Dakota County Attorney’s Office
Madeline Kastler, Dakota County
Mary Dobbins
OATHS OF OFFICE
Commissioners Slavik & Hamann-Roland read their Oaths of Office and were seated on the CDA
Board of Commissioners.
REGULAR AGEN
24-6782
Electing The Chair For The Dakota County Community Development Agency
Board of Commissioners
WHEREAS, Commissioner Slavik opened the Annual Meeting as Board Chair; and
WHEREAS, nominations were accepted for the office of Chair; and
Present Absent
Commissioner Slavik, District 1
X
Commissioner
A
tkins, District 2
X
Commissioner Halverson, District 3
X
Commissioner Droste, District 4
X
Commissioner Workman, District 5
X
Commissioner Holber
g
, District 6
X
Commissioner Hamann-Roland, District 7
X
Commissioner Velikolan
g
ara, At Lar
g
e
X
3
WHEREAS, Commissioner Hamann-Roland placed in nomination Commissioner
Slavik; and
WHEREAS, no further nominations were placed; and
WHEREAS, Commissioner Slavik closed nominations for the office of Chair; and
WHEREAS, Commissioner Hamann-Roland moved the ballot and Commissioner
Droste seconded and a vote was taken on Commissioner Slavik acting as chair and
the motion was carried.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, that Commissioner Slavik serve as
Chair for calendar year 2024.
Motion: Commissioner Hamann-Roland
Second: Commissioner Droste
Ayes: 7
Nays: 0 Abstentions: 0
Yes No Absent Abstain
Slavi
k
X
A
tkins
X
Halverson
X
Droste
X
Workman
X
Holber
X
Hamann-Roland
X
Velikolan
g
ara
X
24-6783
Electing The Vice-Chair For The Dakota County Community Development
A
g
enc
y
Board of Commissioners
WHEREAS, nominations were accepted for the office of Vice Chair; and
WHEREAS, Commissioner Atkins placed in nomination Commissioner Hamann-
Roland; and
WHEREAS, no further nominations were placed; and
WHEREAS, Commissioner Slavik closed nominations for the office of Vice Chair;
and
WHEREAS, Commissioner Atkins moved the ballot and Commissioner Workman
seconded and a vote was taken on Commissioner Hamann-Roland acting as Vice
Chair and the motion was carried.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, that Commissioner Hamann-Roland
serve as Vice Chair for calendar
y
ear 2024.
4
Motion: Commissioner Atkins
Second: Commissioner Workman
Ayes: 7
Nays: 0 Abstentions: 0
Yes No Absent Abstain
Slavi
k
X
A
tkins
X
Halverson
X
Droste
X
Workman
X
Holber
X
Hamann-Roland
X
Velikolan
g
ara
X
24-6784 Selection of GREATER MSP Board Appointment
WHEREAS, the Dakota County Community Development Agency is an investor of
GREATER MSP; and
WHEREAS, as part of the investment, the CDA Board appoints a Commissioner to
represent Dakota County on the GREATER MSP Board; and
WHEREAS, Commissioner Hamann-Roland placed in nomination Commissioner
Slavik; and
WHEREAS, no further nominations were placed; and
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, that Commissioner Slavik is
recommended to serve on the GREATER MSP Board for 2024.
Motion: Commissioner Hamann-Roland
Second: Commissioner Droste
Ayes: 7
Nays: 0 Abstentions: 0
Yes No Absent Abstain
Slavi
k
X
A
tkins
X
Halverson
X
Droste
X
Workman
X
Holber
X
Hamann-Roland
X
Velikolan
g
ara
X
24-6785 Ad
j
ournment
5
BE IT RESOLVED, that the Dakota County Community Development Agency Board
of Commissioners hereby adjourns to the Dakota County Development Agency
Board of Commissioners Re
g
ular Meetin
g
.
Motion: Commissioner Atkins
Second: Commissioner Workman
Ayes: 7
Nays: 0 Abstentions: 0
Yes No Absent Abstain
Slavi
k
X
A
tkins
X
Halverson
X
Droste
X
Workman
X
Holber
X
Hamann-Roland
X
Velikolan
g
ara
X
6
Board of Commissioners
Meeting Minutes
Meeting Date: January 24, 2024 1:15 PM Boardroom; CDA Office, Eagan, MN
Commissioner Slavik called the meeting to order at 1:15 p.m.
COMMISSIONER ROLL CALL
CDA staff in attendance:
Tony Schertler, Executive Director
Kari Gill, Deputy Executive Director
Sara Swenson, Director of Administration and Communications
Sarah Jacobson, Administrative Coordinator
Lisa Alfson, Director of Community & Economic Development
Maggie Dykes, Assistant Director of Community & Economic Development
Lisa Hohenstein, Director of Housing Assistance
Travis Finlayson, Assistant Director of Housing Assistance
Anna Judge, Director of Property Management
Others in attendance:
Lucie O’Neill, Dakota County Attorney’s Office
Madeline Kastler, Dakota County
Mary Dobbins
AUDIENCE
No audience members addressed the Board
APPROVAL OF AGENDA AND MEETING MINUTES
24-6786 Approval Of A
g
enda And Meetin
g
Minutes
BE IT RESOLVED, by the Dakota County Community Development Agency Board of
Commissioners that the agenda for the January 24, 2024 Regular CDA Board meeting
be approved as written.
BE IT FURTHER RESOLVED b
y
the Dakota Count
y
Communit
y
Development
Present Absent
Commissioner Slavik, District 1
X
Commissioner
A
tkins, District 2
X
Commissioner Halverson, District 3
X
Commissioner Droste, District 4
X
Commissioner Workman, District 5
X
Commissioner Holber
g
, District 6
X
Commissioner Hamann-Roland, District 7
X
Commissioner Velikolan
g
ara, At Lar
g
e
X
7
Agency Board of Commissioners that the minutes for the December 19, 2023 Regular
Board meeting be approved as written.
Motion: Commissioner Hamann-Roland
Second: Commissioner Droste
Ayes: 7
Nays: 0 Abstentions: 0
Yes No Absent Abstain
Slavi
k
X
A
tkins
X
Halverson
X
Droste
X
Workman
X
Holber
X
Hamann-Roland
X
Velikolan
g
ara
X
FEDERAL PUBLIC HOUSING AND HOUSING CHOICE VOUCHER AGENDA
CONSENT
24-6787
Approve 2024 Utility Allowance Schedule For The Housing Choice Voucher
Pro
g
ram
WHEREAS, the Dakota County Community Development Agency receives funding
through the Department of Housing and Urban Development (HUD) to operate a
Housing Choice Voucher Program; and
WHEREAS, in accordance with the 24 CFR 982.517, Housing Authorities are required
to establish and maintain allowance schedules for use in calculating estimated costs
of tenant-furnished utilities and other services; and
WHEREAS, the allowance schedule for tenant paid utilities and other services be
reviewed annually.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, That the Allowances for Tenant-
Furnished Utilities, Attachment A, is adopted for use in the Housing Choice Voucher
Pro
g
ram effective Februar
y
1, 2024.
24-6788
Schedule A Public Hearing To Receive Comments On The 2024 Public Housing
A
g
enc
y
Plan
WHEREAS, Section 511 of the Quality Housing and Work Responsibility Act
(QHWRA) of 1998 and the ensuing HUD requirement mandates that agencies with
Housing Choice Voucher and/or Public Housing programs once every five years
submit a Public Housing Agency (PHA) Five Year Strategic Plan and every year submit
a Public Housing Agency Annual Plan including the Capital Fund Program Annual
Statement and the Performance And Evaluation Report; and
WHEREAS, in 2024, the Dakota Count
y
Communit
y
Development A
g
enc
y
(
CDA
)
is
8
required to submit an Annual Plan; and
WHEREAS, Section 511 of the QHWRA of 1998 also requires that after a 45-day
public comment period, the Board of Commissioner of the agency responsible for the
PHA Plan conducts a public hearing; and
WHEREAS, the public comment period opened on January 12, 2024.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, That a public hearing for the PHA
A
nnual Plan will be conducted at the March 27, 2024 meetin
g
.
24-6789
Approval Of Amendments To The Housing Assistance Department
Administrative Plans
WHEREAS, the Dakota County Community Development Agency (CDA), as an
administrator of rental assistance programs, is required to adopt and maintain an
administrative plan to delineate the policies used to govern the programs; and
WHEREAS, the Dakota County CDA has made updates to the Housing Assistance
Department Administrative Plans to include policies for the Dakota County Voucher
Rental Assistance Program.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, That the amendments to the Housing
A
ssistance Department Administrative Plans are approved.
Motion: Commissioner Velikolangara
Second: Commissioner Workman
Ayes: 7
Nays: 0 Abstentions: 0
Yes No Absent Abstain
Slavi
k
X
A
tkins
X
Halverson
X
A
tkins
X
Workman
X
Holber
X
Hamann-Roland
X
Velikolan
g
ara
X
CONSENT AGENDA
24-6790 Approval Of Record Of Disbursements
–
December 2023
BE IT RESOLVED by the Dakota County Community Development Agency Board of
Commissioners, That the December 2023 Record of Disbursements is approved as
written.
9
24-6791
Establish The Date For A Public Hearing To consider Conveyance Of Property
To Denmark Trail Workforce Housing Limited Partnership (Denmark Trail
Townhomes, Farmin
g
ton
)
WHEREAS, the Dakota County CDA has acquired property located in Farmington,
Minnesota, legally described as follows:
That part of the West half of the Northwest Quarter (W 1/2 of NW 1/4) in
Section 6, Township 113, Range 19, Dakota County, Minnesota, lying
Northerly of the Northerly right-of-way of Chicago, Milwaukee, St. Paul and
Pacific Railroad, except the two parcels described as follows:
Parcel A:
The East 597.97 feet of the West half of the Northwest Quadrant (W 1/2 of
NW 1/4) in Section 6, Township 113, Range 19, Dakota County, Minnesota,
lying Northerly of the Northerly right-of-way of Chicago, Milwaukee, St. Paul
and Pacific Railroad.
Parcel B:
The North 1338.34 feet of the West half of the Northwest Quarter (W 1/2 of
NW 1/4) in Section 6, Township 113, Range 19, Dakota County, Minnesota,
lying West of the East 597.97 feet thereof.
To be re-platted as lot 1, Block 1 Denmark Housing Addition, Dakota County,
Minnesota; and
WHEREAS, the CDA desires to promote the development of Denmark Trail
Townhomes, a housing development project comprised of 40 townhome units which
has received an allocation of low income housing tax credits, by the Denmark Trail
Workforce Housing Limited Partnership, in which the CDA is the sole general partner
(the “Partnership”); and
WHEREAS, pursuant to Minnesota Statutes 469.029, the Dakota County CDA must
hold a public hearing prior to conveyance of real property; and
WHEREAS, notice of such public hearing will be provided in a newspaper with local
distribution in accordance with Minnesota Statutes 469.029.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, That the date for a public hearing to
consider the conveyance of real property to the Partnership be established for
February 28, 2024, at or after 1 p.m. at the office of the Dakota County CDA located
at 1228 Town Centre Drive in Ea
g
an, Minnesota.
24-6792
Authorize Forgiveness And Release Of CDA Tax Increment Financing Loan
And Interest to Spruce Pointe Townhomes
(
Inver Grove Hei
g
hts
)
WHEREAS, in 1995 the Dakota County Housing and Redevelopment Authority, now
the Dakota Count
y
Communit
y
Development A
g
enc
y
(
CDA
)
, approved a $200,000
10
Tax Increment Financing (TIF) Loan to assist with construction of Spruce Pointe
Townhomes, a 24-unit development in Inver Grove Heights; and
WHEREAS, Spruce Pointe Townhomes is now owned by the Dakota County CDA
Workforce Housing, LLC; and
WHEREAS, the current balance of the TIF loan, including interest, is $180,465; and
WHEREAS, the CDA wishes to forgive and release the remaining balance and
interest on the TIF Loan to ensure the long-term affordability of Spruce Pointe
Townhomes.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, That the remaining balance and
interest of a Tax Increment Financing Loan for Spruce Pointe Townhomes in the
amount of $180,465 is hereby forgiven and released, and the Executive Director is
hereby authorized and directed to execute and deliver on behalf of the CDA those
documents that may be necessary or convenient to evidence such forgiveness and
release.
24-6793
Approval Of Budget Amendment For Tax Increment Financing District No. 11
For Glazier Townhomes
(
Apple Valle
y)
WHEREAS, in 1983, the Dakota County Housing and Redevelopment Authority, now
the Dakota County Community Development Agency (CDA), constructed Glazier
Townhomes, a 15-unit public housing development located at 14631-14659 Glazier
Avenue; and
WHEREAS, public sidewalks were not required to be installed when Glazier
Townhomes were developed; and
WHEREAS, the City of Apple Valley is undertaking a public improvement project in
2024 to construct missing public sidewalks in the city’s downtown area; and
WHEREAS, the City has requested the CDA participate in the costs for the
installation of the public sidewalk that would be constructed on west side of Glazier
Avenue adjacent to Glazier Townhomes; and
WHEREAS, the City has stated the CDA’s share of the public sidewalk construction
would not exceed $70,000; and
WHEREAS, there are available funds for the construction of public sidewalks from
Tax Increment Financing District No. 11 in Apple Valley.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, That the fiscal year 2024 operating
budget be amended to include up to $70,000 of budget authority in Tax Increment
Financing District No. 11 for the construction of public sidewalks adjacent to Glazier
Townhomes in Apple Valle
y
.
11
24-6794
Summary Of Conclusions Of Closed Executive Session To Evaluate
Performance Of Executive Director
WHEREAS, pursuant to Minn. Stat. § 13D.05, subd. 3(a), the CDA Board held a
closed executive session on December 19, 2023, to evaluate the performance of the
CDA Executive Director; and
WHEREAS, § 13D.05, subd. 3(a) requires that the CDA Board summarize its
conclusions regarding the evaluations; and
WHEREAS, the CDA Executive Director’s rating was based on four Annual Goals
and Annual Priorities elements (Internal, Stakeholder, Financial, and Learning and
Growth Perspectives); and
WHEREAS, the rating was also based upon ten established Core Competencies,
including Strategic Agility; Communicating Vision & Purpose; Analytical Thinking &
Planning; Decision Making; Listening-Communications Skills; Handling Conflict &
Difficult Situations; Organizational Expertise; Working with Others & Teams; Honesty
& Integrity; and Impact on Results.
NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community
Development Agency Board of Commissioners, That based upon a review of the
Executive Director’s performance with respect to the Annual Goals and Annual
Priorities elements and Core Competencies, the Executive Director’s annual
performance is rated at the level of Exceeds Standards, and is approved for a 6.5%
pa
y
increase effective Januar
y
1, 2024.
Motion: Commissioner Hamann-Roland
Second: Commissioner Atkins
Ayes: 6
Nays: 0 Abstentions: 0
Yes No Absent Abstain
Slavi
k
X
A
tkins
X
Halverson
X
Droste
X
Workman
X
Holber
X
Hamann-Roland
X
REGULAR AGENDA
A
. Housin
g
Development Update
Kari Gill presented.
B. Le
g
islative Update
Anna Judge, Mar
y
Dobbins and Ton
y
Schertler presented.
C. Executive Director Update
Ton
y
Schertler presented.
12
INFORMATION
A
. Status Report, Q4 2023
B. Open To Business Report, Q4 2023
ADJOURNMENT
24-6795 Ad
j
ournment
BE IT RESOLVED, that the Dakota County Community Agency Board of
Commissioners hereb
y
ad
j
ourns until Wednesda
y
, Februar
y
28, 2024.
Motion: Commissioner Hamann-Roland Second: Commissioner Droste
Ayes: 7 Nays: 0 Abstentions: 0
Yes No Absent Abstain
Slavi
k
X
A
tkins
X
Halverson
X
Droste
X
Workman
X
Holber
X
Hamann-Roland
X
Velikolan
g
ara
X
The CDA Board meeting adjourned at
2
:
2
8
p
.m.
__________________________________________
Clerk to the Board
13
Board of Commissioners
Request for Board Action
Meeting Date: February 28, 2024 Agenda #: 7A
DEPARTMENT: Finance
FILE TYPE: Regular - Consent
TITLE
..title
Approval Of Record Of Disbursements – January 2024
..end
PURPOSE/ACTION REQUESTED
Approve Record of Disbursements for January 2024.
SUMMARY
In January 2024, the Dakota County Community Development Agency (CDA) had $7,995,059.51 in
disbursements and $663,919.51 in payroll expenses. Attachment A provides the breakdown of
disbursements. Additional detail is available from the Finance Department.
RECOMMENDATION
..recommendati on
Staff recommends approval of the Record of Disbursements for January 2024.
..end
EXPLANATION OF FISCAL/FTE IMPACTS
These disbursements are included in the Fiscal Year Ending June 30, 2024 budget.
☐ None ☒ Current budget ☐ Other ☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
..body
BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners,
That the January 2024 Record of Disbursements is approved as written.
PREVIOUS BOARD ACTION
N/A
ATTACHMENTS
Attachment A: Record of Disbursements – January 2024
BOARD GOALS
☐ Focused Housing Programs ☐ Collaboration
☐ Development/Redevelopment ☒ Financial Sustainability ☒ Operational Effectiveness
CONTACT
Department Head: Ken Bauer, Finance Director
Author: Chris Meyer, Assistant Director of Finance
14
Date Amount Total
Common Bond Housing
01/19/24 16,246.38$
16,246.38$
Disbursing
01/01/24 2,429.00$
01/04/24 542,195.67$
01/11/24 445,961.58$
01/18/24 751,136.71$
01/25/24 685,537.38$
2,427,260.34$
HOME
01/05/24 5,000.00$
5,000.00$
HOPE Program
01/30/24 18,000.00$
18,000.00$
Housing Assistance
01/01/24 2,528,604.01$
01/18/24 199,948.78$
2,728,552.79$
Tax Levy
01/19/24 2,800,000.00$
2,800,000.00$
Total Disbursements 7,995,059.51$
January 2024 Payroll
01/12/24 271,093.15$
01/26/24 392,826.36$
Total Payroll 663,919.51$
Disbursement detail is available in the Finance Office
Dakota County CDA
Record of Disbursements
For the month of January 2024
7A - Attachment A
15
Board of Commissioners
Request for Board Action
Meeting Date: February 28, 2024 Agenda #: 7B
DEPARTMENT: Housing Development
FILE TYPE: Regular - Consent
TITLE
..title
Award Contract For Access Control Replacement At Carmen Court (Inver Grove Heights) and
The Dakotah (West St. Paul)
..end
PURPOSE/ACTION REQUESTED
Authorize Deputy Executive Director to execute a contract for Access Control Replacement at
Carmen Court and The Dakotah senior housing Developments.
Authorize Change Order Authority.
SUMMARY
This contract is for the replacement of failing locks at Carmen Court and The Dakotah senior housing
developments. This is part of a long-term plan to roll out new technology over the course of the next
several years and to replace the existing failing and obsolete locks.
On January 5, 2024 at 10 a.m. a public bid opening was conducted at the Dakota County CDA office
for this project. Five contractors were solicited to bid on the project in addition to being publicly
advertised (Attachment A) and posted on the CDA’s website. Two contractors showed interest by
attending a site walk-though; one other responded that they were interested but too busy at this time.
One bid was received from Assured Security; the bid tabulation is Attachment B.
The contract price is $218,424.12 and there are funds available for this project in the current
Extraordinary Maintenance budget.
It is expected that the project would begin by May and be completed by June 2024.
RECOMMENDATION
..recommendati on
It is recommended that the Deputy Executive Director be authorized to enter into a contract with
Assured Security in the amount of $218,424.12 and be authorized to sign change orders in an
amount not to exceed $10,921 (this is 5% of the contract amount). The solicitation of bids was done
in accordance with public bidding requirements and the contractor has successfully completed nine
similar projects for the CDA in the past.
..end
EXPLANATION OF FISCAL/FTE IMPACTS
The $229,345.24 (contract plus potential change order authority) will be funded from the FYE24
Extraordinary Maintenance Budget.
☐ None ☒ Current budget ☐ Other ☐ Amendment Requested ☐ New FTE(s) requested
16
Meeting Date: February 28, 2024 Agenda #: 7B
RESOLUTION
..body
WHEREAS, formal bids were received on January 5, 2024 for the Access Control project at Carmen
Court and The Dakotah senior housing developments in Dakota County; and
WHEREAS, Assured Security submitted a responsive bid of $218,424.12; and
WHEREAS, the contract is being recommended by Property Management due to immediate need
and the contractor is being recommended on their prior experience on similar projects with the CDA;
and
WHEREAS, funds are available in the current Extraordinary Maintenance budget for this project; and
NOW, THEREFORE BE IT RESOLVED by the Dakota County Community Development Agency
Board of Commissioners, That the Deputy Executive Director be authorized to sign a construction
contract with Assured Security in the amount of $218,424.12; and
BE IT FURTHER RESOLVED, that the Deputy Executive Director be authorized to approve change
orders in an amount not to exceed $10,921.
PREVIOUS BOARD ACTION
N/A
ATTACHMENTS
Attachment A: Public Advertisement
Attachment B: Bid Tabulation
BOARD GOALS
☐ Focused Housing Programs ☐ Collaboration
☐ Development/Redevelopment ☐ Financial Sustainability ☒ Operational Effectiveness
CONTACT
Department Head: Kari Gill, Deputy Executive Director
Author: Troy Blakestad, Capital Projects Manager
17
7B - Attachment A
18
19
BIDDER BID BOND
Addenda 1& 2
Noted
BASE BID
Alternate #1: Apartment Passage
Hardware
Alternate #2: Passage Hardware in
remaining locations
Assured Security X X $218,424.12 $18,671.94 $5,130.20
Project: Access Control Replacement Project
Project Addresses: The Dakotah 900 S. Robert Street, West St Paul and Carmen Court 5825 Carmen Ave., Inver Grove Heights
Bid Opening: Friday, January 5, 2024: 10:00 a.m.
BID TABULATION
7B - Attachment B
20
Board of Commissioners
Request for Board Action
Meeting Date: February 28, 2024 Agenda #: 7C
DEPARTMENT: Community and Economic Development
FILE TYPE: Regular - Consent
TITLE
..title
Establish The Date For A Public Hearing On Qualified Allocation Plan For The Allocation Of
2025 Low Income Housing Tax Credits
..end
PURPOSE/ACTION REQUESTED
Set a public hearing to receive comments on the proposed Qualified Allocation Plan (QAP) for the
allocation of 2025 Low Income Housing Tax Credits
SUMMARY
In accordance with Section 42 of the Internal Revenue Code of 1986, as amended (“Code”), the
Dakota County Community Development Agency (CDA) as a suballocator of Low Income Housing
Tax Credits (“Tax Credits”) must set a public hearing date for the adoption of the 2025 QAP which
details the basis for allocating Tax Credits among applicants.
The CDA is a suballocator of Tax Credits, which are regulated under Section 42 of the Code. Under
the Code, the CDA must prepare a QAP setting forth the basis for allocating Tax Credits among
applicants and must hold a public hearing prior to adoption of the QAP. The purpose of this action is
to set the date of this public hearing for March 27, 2024.
A draft hearing notice to be published pursuant to board approval of this item is in Attachment A.
RECOMMENDATION
..recommendati on
Staff recommends to set the date of the public hearing to receive comments on the proposed QAP for
the allocation of 2025 Tax Credits for March 27, 2024.
..end
EXPLANATION OF FISCAL/FTE IMPACTS
N/A
☒ None ☐ Current budget ☐ Other ☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
..body
WHEREAS, pursuant to Section 42 of the Internal Revenue Code of 1986, as amended (“Code”), and
Minnesota Statutes Sections 462A.221 through 462A.225, the Dakota County Community
Development Agency (CDA) is a housing credit agency authorized to allocate low income housing tax
credits (“Tax Credits”); and
WHEREAS, Section 42 of the Code, requires the CDA to hold a public hearing prior to adopting or
amending a Qualified Allocation Plan (QAP) detailing the basis for allocating Tax Credits among
applicants; and
21
Meeting Date: February 28, 2024 Agenda #: 7C
WHEREAS, the CDA proposes to adopt a QAP regarding the allocation of Tax Credits using 2025
volume cap and the allocation of any “automatic” tax credits attributable to private activity bonds
issued after the adoption of the plan (“2025 Plan”).
NOW, THEREFORE BE IT RESOLVED by the Dakota County Community Development Agency
Board of Commissioners, That:
1. A public hearing regarding the adoption of the 2025 Plan will be held by the CDA Board on
March 27, 2024 at or after 1:00 p.m. at the CDA’s office.
2. Staff are authorized and directed to cause notice of such public hearing to be published in a
newspaper of general circulation in the CDA’s jurisdiction not less than ten (10) days prior to
such hearing.
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment A: Draft Public Hearing Notice
BOARD GOALS
☒ Focused Housing Programs ☐ Collaboration
☐ Development/Redevelopment ☐ Financial Sustainability ☐ Operational Effectiveness
CONTACT
Department Head: Lisa Alfson, Director of Community and Economic Development
Author: Kathy Kugel, Housing Finance Manager
22
NOTICE OF PUBLIC HEARING
NOTICE OF PUBLIC HEARING ON THE ADOPTION OF A QUALIFIED
ALLOCATION PLAN RELATING TO THE ALLOCATION OF LOW INCOME
HOUSING TAX CREDITS UNDER SECTION 42 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED
NOTICE IS HEREBY GIVEN that the Dakota County Community Development Agency (the
“Agency”) will meet on Wednesday, March 27, 2024, at or after 1:00 p.m. at its offices located at 1228
Town Centre Drive, Eagan, Minnesota 55123, for the purpose of conducting a public hearing regarding
the adoption of its 2025 Qualified Allocation Plan, which has been prepared in compliance with Section
42 of the Internal Revenue Code of 1986, as amended (“Code”). Section 42 of the Code authorizes
housing credit agencies such as the Agency to allocate low income housing tax credits (“Tax Credits”)
to owners of qualified residential rental projects. The 2025 Qualified Allocation Plan establishes
selection criteria to be used by the Agency in the allocation of Tax Credits in Dakota County.
Members of the public can participate in the public hearing in one of the following ways:
All persons interested may appear and be heard at the time and place set forth ab
ove.
The public may comment in writing or via voicemail. Any comments and materials submitted by
10:00 am of the day of the meeting will be attached to the public record and available for review
by the Board. Comments may be submitted to the Clerk of the Board via email at
[email protected] or by voicemail at 651-675-4434
.
[
Date of Publication]
BY ORDER OF THE DAKOTA COUNTY
COMMUNITY DEVELOPMENT AGENCY
B
y /s/ Tony Schertler
Executive Director
7C - Attachment A
23
Board of Commissioners
Request for Board Action
Meeting Date: February 28, 2024 Agenda #: 7D
DEPARTMENT: Administration
FILE TYPE: Regular - Consent
TITLE
..title
Approval Of Amendments To Personnel Policy #295 – Flex Leave Donation
..end
PURPOSE/ACTION REQUESTED
Approve amendments to Personnel Policy #295 – Flex Leave Donation
SUMMARY
Periodically, staff review personnel policies to make amendments that comply with best practices in
human resources.
Policy #295 – Flex Leave Donation has been updated to clarify uses of donated flex leave and
donation procedures. This policy was first adopted in 2018.
An edited version of the policy is Attachment A. A clean copy of the updated policy is Attachment B.
RECOMMENDATION
..recommendati on
Staff recommends approval of the updated policy.
..end
EXPLANATION OF FISCAL/FTE IMPACTS
N/A
☒ None ☐ Current budget ☐ Other ☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
..body
WHEREAS, the Dakota County CDA’s Administration Department regularly reviews policies and
procedures and makes recommendations in order to comply with Federal, State and local laws and
best practices in human resources; and
WHEREAS, updates have been made to Policy #295 – Flex Leave Donation.
NOW, THEREFORE BE IT RESOLVED by the Dakota County Community Development Agency
Board of Commissioners, That the amendments to Personnel Policy #295 – Flex Leave Donation is
hereby approved.
BE IT FURTHER RESOLVED, the Human Resources Manager is authorized to implement the
policies and communicate the changes to CDA staff.
PREVIOUS BOARD ACTION
18-6051; 9/18/2018
24
Meeting Date: February 28, 2024 Agenda #: 7D
ATTACHMENTS
Attachment A: Amended policy – edited copy
Attachment B: Amended policy – clean copy
BOARD GOALS
☐ Focused Housing Programs ☐ Collaboration
☐ Development/Redevelopment ☐ Financial Sustainability ☒ Operational Effectiveness
CONTACT
Department Head: Sara Swenson, Director of Administration and Communications
Author: Sara Swenson
25
FLEX LEAVE DONATION #295
CDA Policy & Procedures Manual Page 1 of 3
The purpose of the flex leave donation program is to allow employees to transfer flex leave hours to
another employee to use for a serious illness or injury experiencing an emergency. This policy is not
intended to cover an employee who is experiencing a normal pregnancy, has a common illness or injury,
or as a substitute for short-term or long-term disability coverage. This transfer occurs only upon the
approval of Human Resources.
The Flex Leave Donation Program serves as a short-term solution up to a maximum of six monthsfour (4)
weeks in a calendar year, ,
allowing employees to receive paid leave in circumstances noted below:
Employee is unable to work because of own a serious illness or injury.
Employee is required to provide care for a seriously ill or injured parent, spouse, dependent
child, or household member.
In need of additional time off for bereavement in the event of death of a parent, spouse, child
or
household member.
This p
rogram runs concurrently with leave under Family Medical Leave Act (FMLA) or other unpaid
leaves, which employees are entitled to under federal or state law or as otherwise required by the CDA.
All required documentation must be submitted to Human Resources prior to a flex leave donation request.
The ma
ximum six-month time period will begin the first day the employee uses donated flex leave
hours and ends six calendar months later.
Recipient Eligibility:
An employee may apply for the Program if s/he meets an established set of criteria. The
employee must:
To be eligible to receive donated flex leave, an employee must:
1.
Have been a full-time employee of the Dakota County CDA for at least twelve six months or
a
part-time employee for at least twenty-four twelve months.
2.
Be eligible to accrue and use flex leave benefits.
3.
Be scheduled to Eexhaust all paid leave options. or be reasonably close to exhausting such pai
d
leave.
3.
4.
Has not been disciplined for any violations of the CDA’s policie
s.
4.5. Is on an ap
proved leave of absence relating to a medical emergency or bereavement.For an
employee requesting flex leave donation due to his/her own medical condition, he/she must be
approved for a leave of absence under the CDA’s Family Medical Leave (FMLA) policy or
Americans with Disabilities Act (ADA) policy. For an employee requesting flex leave donation to
care for a seriously ill or injured spouse, dependent child or household member, he/she must
obtain and submit medical documentation which verifies that a serious illness or injury
necessitates absence from work for a minimum of five days. This qualifying period does not have
to be consecutive.
5.6. Ha
s exhausted all other available paid time off including, but not limited to, flex leave, workers’
compensation and An employeenot be receiving or expecting to receive worker’s compensation,
or short-term or long-term disability benefits except that flex leave donations can assist with the
waiting period for short-term disability. is not eligible to receive donated time.
7. Ex
pect to return resume to employment with the CDA after the leave of absence ends.
7D - Attachment A
26
FLEX LEAVE DONATION #295
CDA Policy & Procedures Manual Page 2 of 3
Note: Leave eligibility will follow Minnesota State Law when applicable.
Procedures and Rules for Requesting Flex Leave Donation:
1. Employees, or a supervisor on behalf of the employee, may request flex leave donation through
Human Resources.
2. Completed FMLA paperwork or a Medical Leave Request form must be submitted to Human
Resources before the flex leave donation request will be approved. The forms must include the
nature of the illness or injury and the expected date the employee will return to work.
3.2. Human Resources will evaluate the flex leave donation request to determine recipient’s eligibility.
4.3. The recipient must sign a form agreeing to accept the donated hours.
4. The recipient will be responsible for all applicable taxes on the dollar value paid for the donated
hours.
5. The donor must submit a written and signed request of the CDA’s approved forms.
6. When a transfer has been finalized in accordance with these rules and approved by Human
Resources, the Finance Department will finalize the transfer of the flex leave hours.
7. Flex leave must be donated in increments of one (1) hour.
Flex leave donations are irrevocable; donated flex leave will not be returned to the employee who
donated it. For employment tax and wage-based benefit purposes, donated Flex Leave is considered
wages of the recipient and not the donor.
Flex leave donations shall be on a dollar-for-dollar basis. The worth of the flex leave shall be adjusted to
the pay level of the donor. Therefore, if the salary of the donor is greater than the recipient, one day of
flex leave of the donor shall result in more than one full day to the recipient. Conversely, if the salary of
the donor is less than the recipient, the one day of flex leave of the donor shall result in less than one full
day to the recipient.
Data Practices Notice to Employees:
An employee who seeks flex leave donation has the responsibility to provide reasonable medical
documentation to show the need for flex leave donation. Compliance is voluntary; however, failure to
provide the required information will result in a denial of the request. All information relating to the flex
leave donation, including medical documentation, shall be maintained in a separate file and shall be
treated as confidential medical records with access limited to those who need to be informed including,
but not limited to, Directors/Supervisors, Human Resources, and CDA legal counsel. If the flex leave
donation is approved, the all-staff request for donated flex leave hours will be sent. It is at the discretion of
the employee to disclose their name and/or the reason for their request in the all-staff communication. If
no one donates flex leave upon request, the requesting employee is not entitled to receive flex leave.
state the employee’s name and department. If the employee chooses, they may authorize Human
Resources to state the nature of the illness or injury in the request. Employees may also request that the
flex leave donation request is sent only to that employee’s department.
Procedures for Donating Flex Leave Hours:
Employees may transfer their flex leave hours to another employee under the following conditions:
27
FLEX LEAVE DONATION #295
CDA Policy & Procedures Manual Page 3 of 3
1. Such transfers can be made only after the showing of unique or special circumstances and only
upon approval of Human Resources.
2. Before such transfer will be approved the proposed recipient of the transfer must have used all of
his/her accrued or usable flex leave and all of his/her compensatory time.
3. Such transfer shall be on a dollar-for-dollar basis. The worth of the flex leave shall be adjusted to
the pay level of the donor. Therefore, if the salary of the donor is greater than the donee, one day
of flex leave of the donor shall result in more than one full day to the donee. Conversely, if the
salary of the donor is less than the donee, the one day of flex leave of the donor shall result in
less than one full day to the donee.
4. The minimum donation from a donor is (1) hour of flex leave and the maximum donation is (16)
hours of flex leave.
5. Requests for such transfer of flex leave must be submitted to Human Resources, in writing, by
the recipient employee or by the recipient employee's supervisor with the consent of the recipient
employee.
6. When such a request is received, Human Resources may, if s/he approves such a request, give
notice to CDA employees of the request for donation.
7. When a donor volunteers such transfer, they must sign a release document for transfer and the
document will be kept in the employee’s personnel file.
8. When a transfer has been finalized in accordance with these rules and approved by Human
Resources, they will notify the Finance Department and the necessary accounting action shall be
taken to reflect such transfer.
28
FLEX LEAVE DONATION #295
CDA Policy & Procedures Manual Page 1 of 2
The purpose of the flex leave donation program is to allow employees to transfer flex leave hours to
another employee experiencing an emergency. This policy is not a substitute for short-term or long-term
disability coverage. This transfer occurs only upon the approval of Human Resources.
The Flex Leave Donation Program serves as a short-term solution up to a maximum of four (4) weeks in a
calendar year, in circumstances noted below:
Employee is unable to work because of own serious illness or inju
ry.
Employee is required to provide care for a seriously ill or injured parent, spouse, dependent
child, or household member
.
In need of additional time off for bereavement in the event of death of a parent, spouse, child
or
h
ousehold member
.
This p
rogram runs concurrently with leave under Family Medical Leave Act (FMLA) or other unpaid
leaves, which employees are entitled to under federal or state law or as otherwise required by the CDA.
All required documentation must be submitted to Human Resources prior to a flex leave donation request.
Recipient Eligibility:
To be eligible to receive donated flex leave, an employee must:
1.
Have been a full-time employee of the CDA for at least six months or a part-time
employee for at
least twel
ve months.
2.
Be eligible to accrue and use flex leave benefits.
3.
Be scheduled to exhaust all paid leave op
tions.
4.
Has not been disciplined for any violations of the CDA’s policie
s.
5.
Is on an approved leave of absence relating to a medical emergency or bereavem
ent.
6.
Has exhausted all other available paid time off including, but not limited to, flex leave, worker
s’
comp
ensation and not be receiving or expecting to receive worker’s compensation, short-te
rm or
long-te
rm disability benefits except that flex leave donations can assist with the waiting period
for
short-term disability.
7.
Expect to resume employment with the CDA after the leave of absence ends
.
Procedur
es and Rules for Requesting Flex Leave Donation:
1.
Employees, or a supervisor on behalf of the employee, may request flex leave donation throug
h
Huma
n Resource
s.
2.
Human Resources will evaluate the flex leave donation request to determine recipient’s eligibil
ity.
3.
The recipient must sign a form agreeing to accept the donated hours.
4.
The recipient will be responsible for all applicable taxes on the dollar value paid fo
r the donated
hours.
5.
The donor must submit a written and signed request of the CDA’s
approved forms.
6.
When a transfer has been finalized in accordance with these rules and approved by Hu
man
Re
sources, the Finance Department will finalize the transfer of the flex leave ho
urs.
7.
Flex leave must be donated in increments of one (1
) hour.
7D - Attachment B
29
FLEX LEAVE DONATION #295
CDA Policy & Procedures Manual Page 2 of 2
Flex leave donations are irrevocable; donated flex leave will not be returned to the employee who
donated it. For employment tax and wage-based benefit purposes, donated Flex Leave is considered
wages of the recipient and not the donor.
Flex leave donations shall be on a dollar-for-dollar basis. The worth of the flex leave shall be adjusted to
the pay level of the donor. Therefore, if the salary of the donor is greater than the recipient, one day of
flex leave of the donor shall result in more than one full day to the recipient. Conversely, if the salary of
the donor is less than the recipient, the one day of flex leave of the donor shall result in less than one full
day to the recipient.
Data Practices Notice to Employees:
An employee who seeks flex leave donation has the responsibility to provide reasonable medical
documentation to show the need for flex leave donation. Compliance is voluntary; however, failure to
provide the required information will result in a denial of the request. All information relating to the flex
leave donation, including medical documentation, shall be maintained in a separate file and shall be
treated as confidential medical records with access limited to those who need to be informed including,
but not limited to, Directors/Supervisors, Human Resources, and CDA legal counsel. If the flex leave
donation is approved, the request for donated flex leave hours will be sent. It is at the discretion of the
employee to disclose their name and/or the reason for their request in the all-staff communication. If no
one donates flex leave upon request, the requesting employee is not entitled to receive flex leave.
30
Board of Commissioners
Request for Board Action
Meeting Date: February 28, 2024 Agenda #: 8A
DEPARTMENT: Housing Development
FILE TYPE: Regular - Action
TITLE
..title
Public Hearing To Receive Comments And Approve Conveyance Of Land To The Denmark
Trail Workforce Housing Limited Partnership (Denmark Trail Townhomes, Farmington)
..end
PURPOSE/ACTION REQUESTED
Hold a public hearing to consider the conveyance of land in Farmington to the Denmark Trail
Workforce Housing Limited Partnership for the development of Denmark Trail Townhomes.
Approve the conveyance of the land.
SUMMARY
The CDA is considering the conveyance of property located in Farmington to Denmark Trail
Workforce Housing Limited Partnership for the development of affordable housing.
The Dakota County CDA, as General Partner of the Denmark Trail Workforce Housing Limited
Partnership, has applied for and received an allocation of 2034 and 2024 Low Income Housing Tax
Credits to develop Denmark Trail Townhomes, a 40-unit affordable workforce townhome
development in Farmington. Construction is expected to begin late spring 2024.
Minnesota Statute 469.029 requires a public hearing be held prior to the sale of real property by the
CDA. Notice of the public hearing was published in the Dakota County Tribune on February 9
(Attachment A).
RECOMMENDATION
..recommendati on
CDA staff recommends the conveyance of the property to the Denmark Trail Workforce Housing
Limited Partnership for the advancement of the Denmark Trail workforce housing development.
..end
EXPLANATION OF FISCAL/FTE IMPACTS
N/A
☒ None ☐ Current budget ☐ Other ☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
..body
WHEREAS, the Dakota County Community Development Agency (CDA), pursuant to Minnesota
Statutes, Sections 469.001 through 469.047, is authorized to exercise its powers to undertake
housing development projects to provide for the construction of housing for low- and moderate-
income persons and their families; and
WHEREAS, the CDA desires to promote the development by the Denmark Trail Workforce Housing
Limited Partnership, of which the CDA is the sole general partner (the “Partnership”) of a housing
31
Meeting Date: February 28, 2024 Agenda #: 8A
development project comprised of a 40-unit townhome project housing which has received an
allocation of 2023 and 2024 low income housing tax credits; and
WHEREAS, the CDA has purchased and made certain capital expenditures with respect to the real
property legally described as follows: That part of the West half of the Northwest Quarter (W 1/2 of
NW 1/4) in Section 6, Township 113, Range 19, Dakota County, Minnesota, lying Northerly of the
Northerly right-of-way of Chicago, Milwaukee, St. Paul and Pacific Railroad, except the two parcels
described as follows: Parcel A: The East 597.97 feet of the West half of the Northwest Quarter (W
1/2 of NW 1/4) in Section 6, Township 113, Range 19, Dakota County, Minnesota, lying Northerly of
the Northerly right-of-way of Chicago, Milwaukee, St. Paul and Pacific Railroad. Parcel B: The North
1338.34 feet of the West half of the Northwest Quarter (W 1/2 of NW 1/4) in Section 6, Township 113,
Range 19, Dakota County, Minnesota, lying West of the East 597.97 feet thereof and to be re-platted
as Lot 1, Block 1 Denmark Housing Addition in the city of Farmington (the “Land”), which the CDA
proposes to contribute to the Partnership as the CDA’s capital contribution; and
WHEREAS, in accordance with the provisions of Minnesota Statutes, Section 469.029, Subdivision 2,
on the date hereof, following publication of notice, the CDA held a public hearing regarding the
conveyance of the Land to the Partnership; and
WHEREAS, the CDA has determined that it is in the best interest of the public health, safety, and
welfare that it convey the Land to the Partnership as the CDA’s capital contribution to the Partnership.
NOW, THEREFORE BE IT RESOLVED by the Dakota County Community Development Agency
Board of Commissioners, as follows:
1. The conveyance of the Land to the Partnership is hereby approved.
2. The Executive Director of the CDA is hereby authorized and directed to execute such
documents and take such actions as are necessary or convenient to convey the Land to the
Partnership.
PREVIOUS BOARD ACTION
24-6791; 1/24/2024
ATTACHMENTS
Attachment A: Affidavit of Publication
BOARD GOALS
☐ Focused Housing Programs ☐ Collaboration
☒ Development/Redevelopment ☐ Financial Sustainability ☐ Operational Effectiveness
CONTACT
Department Head: Kari Gill, Deputy Executive Director
Author: Lori Zierden, Real Estate Manager
32
8A - Attachment A
33
Board of Commissioners
Request for Board Action
Meeting Date: February 28, 2024 Agenda #: 8B
DEPARTMENT: Community and Economic Development
FILE TYPE: Regular - Action
TITLE
..title
Approval Of Contingent HOME American Rescue Plan Award To 360 Communities Lewis
House Shelter (Eagan)
..end
PURPOSE/ACTION REQUESTED
Approve contingent award of HOME American Rescue Plan (HOME-ARP) funds for the 360
Communities Lewis House Shelter in Eagan.
Authorize the execution of related documents.
SUMMARY
On March 11, 2021, President Biden signed the American Rescue Plan (ARP) into law that provided
over $1.9 trillion in relief to address the continued impact of the COVID-19 pandemic on the economy,
public health, state and local governments, and businesses.
To address the need for homelessness assistance and supportive services, Congress appropriated
$5 billion in ARP funds to be administered through the HOME Investment Partnerships Program
(HOME) to perform four activities that must primarily benefit qualifying individuals and families who
are homeless, at risk of homelessness, or in other vulnerable populations. Activities include
development of affordable rental housing; tenant-based rental assistance; provision of supportive
services; and acquisition and development of non-congregate shelter units.
The HOME Consortium (consisting of Anoka, Dakota, Ramsey, and Washington counties and the
City of Woodbury) received $8,762,441 in HOME-ARP funds; Dakota County’s portion is $3,232,623.
HOME-ARP funds required community engagement and development of a plan on proposed uses of
funds within the county. The HOME-ARP plan was approved by the Dakota County Board of
Commissioners on May 24, 2022 (Resolution No. 22-219), and by HUD on November 23, 2022. The
HOME-ARP plan identified two activities 1) support for a non-congregate shelter, with a domestic
violence preference, and 2) development and support of affordable housing. HOME-ARP funds need
to be expended by September 30, 2030.
The CDA issued a Request For Proposal (RFP) on November 14, 2023 and received one response
before the January 19, 2024 deadline from 360 Communities. 360 Communities is a non-profit and
operates the only domestic and sexual violence shelter in Dakota County. The non-profit proposed a
$14.6 million non-congregate shelter that increases capacity from 23 beds to 50 beds, with every unit
having full kitchens and bathrooms. CDA staff reviewed and scored the application, in addition to
conducting a meeting with 360 Communities leadership staff on February 14, 2024.
RECOMMENDATION
..recommendati on
Staff recommends the Board authorize a $3,000,000 HOME-ARP grant for the construction of a non-
congregant shelter contingent upon the completion of an environmental review, securing all
34
Meeting Date: February 28, 2024 Agenda #: 8B
necessary funding to complete the project, and finalizing grant agreement terms. Additionally, staff
recommends the Board authorize staff to prepare, execute, and deliver all documents necessary to
provide for the commitment of HOME-ARP funds, and authorize the Executive Director to execute
and deliver all related documents.
..end
EXPLANATION OF FISCAL/FTE IMPACTS
Dakota County’s portion of the HOME-ARP Program funds is $3,232,623, with $3,000,000 available
for eligible activities, and the remainder for administrative expenses on behalf of the HOME
Consortium
☐ None ☒ Current budget ☐ Other ☐ Amendment Requested ☐ New FTE(s)
requested
RESOLUTION
..body
WHEREAS, the counties of Anoka, Dakota, Ramsey, and Washington and the City of Woodbury
(referred to together as the “HOME Consortium”) created a consortium under the Title I of the
Cranston-Gonzalez National Affordable Housing Act (Act) for purposes of acting as a participating
jurisdiction under the Act and HOME Investment Partnerships Program Final Rule 24 CFR Part 92
which as amended sets forth regulations governing the applicability and use of funds under Title II
(HOME Program); and
WHEREAS, Dakota County is designated as the Lead Agency for the HOME Consortium and is
responsible for certain administrative and reporting functions of the HOME Program as required by
the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, Dakota County enters into a subrecipient agreement annually with the Dakota County
Community Development Agency (CDA) to administer the HUD entitlement programs, including
HOME, and has delegated to the CDA the rights, duties and obligations to disburse, monitor and
administer HUD entitlement funds, in a manner consistent with the terms and conditions imposed on
the CDA by said agreement, Dakota County resolution, and HUD and programmatic regulations; and
WHEREAS, the American Rescue Plan (ARP) Act of 2021 was signed into law on March 11, 2021,
and appropriated $5 billion in ARP funds to be administered through the HOME Program at the local
level to respond to the COVID-19 pandemic; and
WHEREAS, the HOME Consortium HOME-ARP allocation is $8,762,411, and the Dakota County
portion is $3,253,282; and
WHEREAS, the HOME-ARP funds can only be used for four activities: acquisition and development
of non-congregate shelter units, development and support of affordable housing, tenant-based rental
assistance, and provision of supportive services; and
WHEREAS, the HOME-ARP activities must primarily benefit four qualifying populations, including
individuals and families who are homeless; at risk of homelessness; fleeing or attempting to flee
domestic violence, dating violence, sexual assault, stalking, or human trafficking; and other
vulnerable populations, including individuals and families with incomes at or below 30 percent Area
Median Income; and
35
Meeting Date: February 28, 2024 Agenda #: 8B
WHEREAS, Dakota County entered into a funding approval agreement with HUD to execute and
implement the HOME-ARP Program in September 2021; and
WHEREAS, the Dakota County HOME-ARP plan was approved by the Dakota County Board of
Commissioners on May 24, 2022 (Resolution No. 22-219), and by HUD on November 23, 2022 with
two activities identified for use of HOME-ARP funds within Dakota County, 1) support for a non-
congregate shelter, with a domestic violence preference, and 2) development and support of
affordable housing; and
WHEREAS, on or before January 19, 2024, the CDA received one response to the HOME-ARP
Request For Proposals from 360 Communities requesting $3,000,000 HOME-ARP funds to assist
with the development of a non-congregate shelter for individuals and families fleeing or attempting to
flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and
WHEREAS, the 360 Communities application was reviewed, evaluated, and scored by staff and
included a meeting with leadership staff of 360 Communities to better understand the proposed
shelter; and
WHEREAS, CDA staff is supportive of the 360 Communities proposed shelter and recommends
awarding $3,000,000 of HOME-ARP funds to the project, contingent upon successful completion of
the environmental review, finalizing grant agreement terms, and securing necessary financing to
complete the project.
NOW, THEREFORE BE IT RESOLVED by the Dakota County Community Development Agency
Board of Commissioners, That
1. The CDA hereby approves an award of HOME-ARP Program funds in the amount of
$3,000,000 for the construction of the non-congregant Lewis House Shelter.
2. Staff is authorized to prepare, execute, and deliver all documentation necessary or convenient
to provide for the commitment of HOME-ARP Program funds based on findings made in
accordance with the requirements of the HOME-ARP Program. In addition, staff is authorized
to determine award contingencies for the project based on the characteristics of the
development, financial feasibility, project underwriting, or other factors in accordance with the
HOME-ARP Program.
3. Staff is authorized to prepare, execute, and deliver all documentation necessary or convenient
to provide for the commitment of the HOME-ARP Program funds.
4. The Executive Director of the Dakota County CDA is authorized to execute said documents
upon such release.
PREVIOUS BOARD ACTION
N/A
ATTACHMENTS
Attachment A: 360 Communities Application Narrative
BOARD GOALS
☒ Focused Housing Programs ☒ Collaboration
36
Meeting Date: February 28, 2024 Agenda #: 8B
☐ Development/Redevelopment ☐ Financial Sustainability ☐ Operational Effectiveness
CONTACT
Department Head: Lisa Alfson, Director of Community and Economic Development
Author: Lisa Alfson
37
8B - Attachment A
38
39
40
41
42
43
44
45
46
47
48
49
Board of Commissioners
Request for Board Action
Meeting Date: February 28, 2024 Agenda #: 8C
DEPARTMENT: Community and Economic Development
FILE TYPE: Regular - Informational
TITLE
..title
Discussion Of Proposed Housing Tax Credit Qualified Allocation Plan Revisions For The 2025
Low Income Housing Tax Credit Allocation
..end
PURPOSE/ACTION REQUESTED
Presentation on the drafted 2025 Qualified Allocation Plan for the allocation of Low-Income Housing
Tax Credits and discussion of changes.
SUMMARY
The Dakota County Community Development Agency (CDA) is authorized under Section 42 of the
Internal Revenue Code of 1986, as amended (“Code”) and Minnesota Statutes Sections 462A.221
through 462A.225, to allocate Low Income Housing Tax Credits (“Tax Credits”) to qualified projects in
Dakota County. Prior to allocating Tax Credits under the Code, the CDA is required to adopt a
Qualified Allocation Plan (QAP) detailing the basis for allocating Tax Credits among applicants.
As required in the Code, the CDA allocates Tax Credits to housing projects in Dakota County
according to a QAP and Procedural Manual (“Manual”). The QAP and Manual establish the
procedure and selection criteria for a competitive application process for the 9% Tax Credits and for
4% Tax Credits that are allocated on a non-competitive basis to projects financed with tax exempt
bonds. The application deadline for the competitive 2025 9% Tax Credits is tentatively set for July 11,
2024.
The CDA is currently authorized to allocate an estimated $1,128,688 of 2025 Tax Credits, which
typically means a developer can build a 40-45-unit project. The annual allocations are based on the
distribution plan from Minnesota Housing, and a per capita volume cap determined each year by the
Internal Revenue Service. Since 1988, Tax Credits have been used to finance the new construction,
preservation and/or substantial rehabilitation of 3,927 units of affordable rental housing in 64
developments in Dakota County (Attachment A).
The QAP includes a Scoring Worksheet where applicants must meet several threshold requirements
and includes the ability to score points through other selection criteria. These thresholds and points
allow the CDA to target this affordable housing resource to encourage developments to provide
deeper and longer affordability, as well as adjusting for unit sizes or location.
A summary of the proposed 2025 QAP scoring is in Attachment B and the proposed revisions to the
2025 Self Scoring Worksheet are shown in Attachment C. In addition to formatting and administrative
revisions (including updating dates, credit amounts and clarifying text), the most substantive revisions
proposed to the QAP for 2025 include:
50
Meeting Date: February 28, 2024 Agenda #: 8C
a. Selection Criteria
Community Revitalization (a.13):
The ability to earn points for a project located in a Qualified Census Tract (QCT) and that is a part of
a community revitalization plan/Community Development Initiative has been included under our
Preference Priorities section for 5 points. Code requires this be a point category. Staff proposes to
remove this item from under the Preference Priorities section and merge it with Selection Criteria item
#13, Rehabilitation under Community Revitalization Plan.
The proposed change to #13 removes the requirement #13 be only for rehabilitation of an existing
project, adds a clear definition of what a community revitalization plan means (now referred to as a
Community Development Initiative) and includes the QCT Code requirement. The revised #13 is
similar to how Minnesota Housing includes this Code preference requirement regarding a project
located in a QCT which contributes to a concerted community revitalization plan.
Staff proposes this combined #13 continue to be worth 5 points but will remove the 5 points under the
Preference Priority category. Minnesota Housing has this item worth 3 points and Washington County
has it is worth 1 point.
b. Preference Priorities
Geographic Balance (b.3):
As stated in the CDA Housing Finance Policy, it is the CDA’s policy to encourage the distribution of
affordable housing throughout the county in order to avoid concentration of such housing in any one
city or section of a city. To assist with this distribution of affordable rental housing throughout the
county staff proposes to add an item under the Preference Priorities section providing points to
projects that are located in a city that has not received a 9% or 4% Tax Credit award for new
affordable housing development from the CDA or through Minnesota Housing in the prior 3 years.
Staff proposes awarding 5 points. Washington County awards 5 points to a similar item and
Minnesota Housing awards 4 points.
RECOMMENDATION
..recommendati on
Staff would like the Board’s input on the proposed changes to the QAP. After this meeting, the QAP
will be published for public comment and a public hearing will be held at the March 27, 2024 CDA
Board Meeting.
..end
EXPLANATION OF FISCAL/FTE IMPACTS
N/A
☒ None ☐ Current budget ☐ Other ☐ Amendment Requested ☐ New FTE(s) requested
ATTACHMENTS
Attachment A: Dakota County CDA 9% and 4% Tax Credit Award History
Attachment B: Draft 2025 QAP Scoring Summary
Attachment C: Draft 2025 QAP Scoring Worksheet with redlined changes
BOARD GOALS
☒ Focused Housing Programs ☐ Collaboration
☐ Development/Redevelopment ☐ Financial Sustainability ☐ Operational Effectiveness
51
Meeting Date: February 28, 2024 Agenda #: 8C
CONTACT
Department Head: Lisa Alfson, Director of Community and Economic Development
Author: Kathy Kugel, Housing Finance Manager
52
Dakota County 9% and 4% Housing Tax Credit Projects
Tax Credit
Type
Allocation Year
Project Name
City
Owner/Developer
Type
Tax
Credit
Units
Total
Units
Affordability
End Date
9% 1988 & 1989 Wescott Hills Eagan Wescott V LP New construction 16 16 2004
9% 1990 Parkside Townhomes Burnsville Dakota County CDA New construction 22 22 2027
9% 1991 & 1992 Glenbrook Place Townhomes Apple Valley Dakota County CDA New construction 39 39 2023
9% 1994 (MHFA) Spruce Pointe Townhomes Inver Grove Heights Dakota County CDA New construction 24 24 2024
9% 1994 Lakeville Court Apartments Lakeville Sand Companies New construction 50 52 2025
9% 1995 Oak Ridge Townhomes Eagan Dakota County CDA New construction 42 42 2025
9% 1996 Pleasant Ridge Townhomes Hastings Dakota County CDA New construction 31 31 2026
9% 1997 Cedar Valley Townhomes Lakeville Dakota County CDA New construction 30 30 2027
9% 1998 Chasewood Townhomes Apple Valley Dakota County CDA New construction 27 27 2028
9% 1998 & 1999 Farmington Townhomes Farmington Sherman Associates New construction 16 16 2029
9% 1999 & 2000 Farmington Family Townhomes Farmington Hornig Companies New construction 28 32 2031
9% 1999 & 2001 Country Lane Townhomes Lakeville Dakota County CDA New construction 29 29 2030
9% 2000 Hillside Gables Townhomes Mendota Heights Dakota County CDA New construction 24 24 2030
9% 2001 Hastings Marketplace Townhomes Hastings Dakota County CDA New construction 28 28 2031
9% 2002 Burnsville HOC Townhomes Burnsville Dakota County CDA New construction 34 34 2032
9% 2002 Clark Place Apts (fka Kaposia Terrace) South St. Paul
DRS Investment VII LLC (orig was
Real Estate Equities)
New construction 20 20 2032
9% 2003 Erin Place Townhomes Eagan Dakota County CDA New construction 34 34 2033
9% 2003 Prairie Crossing Townhomes Lakeville Dakota County CDA New construction 40 40 2034
9% 2004 LaFayette Townhomes Inver Grove Heights Dakota County CDA New construction 30 30 2035
9% 2004 Haralson Apartments Apple Valley CHDC New supportive & workforce 36 36 2035
9% 2005 & 2007 West Village Townhomes Hastings Dakota County CDA New construction 21 21 2036
9% 2006 Chowen Bend Townhomes Burnsville Chris Cooper (orig was Dominium) Preservation/Rehabilitation 32 32 2036
9% 2006 & 2008 Carbury Hills Townhomes Rosemount Dakota County CDA New construction 32 32 2037
9% 2007 Cliff Hills Townhomes Burnsville Shelter Corporation Preservation/Rehabilitation 32 32 2037
9% 2007 & 2008 Twin Ponds Townhomes Farmington Dakota County CDA New construction 25 25 2038
9% 2007 & 2008 Rosemount Greens Rosemount TCHDC Preservation/Rehabilitation 28 28 2036
9% 2008 & 2009 & 2010 Meadowlark Townhomes Lakeville Dakota County CDA New construction 40 40 2039
9% 2009 Chancellor Manor Burnsville CHDC Preservation/Rehabilitation 186 200 2039
9% 2010 Quarry View Townhomes Apple Valley Dakota County CDA New construction 45 45 2040
9%
1990 & 1991
& 2008
Kidder Park Townhomes
(fka Park Place)
Rosemount Boisclair Corporation
New construction/
2008 substantial rehab
36 36
2041
9% 1991 & 2011 Andrews Pointe Burnsville Shelter Corporation New construction/2011 rehab 57 57 2040
9% 2011 Twin Ponds (Phase II) Townhomes Farmington Dakota County CDA New construction 26 26 2041
9% 2012 Northwoods Townhomes Eagan Dakota County CDA New construction 47 47 2042
9% 2013 Inver Hills TH/ Riverview Ridge TH IGH & Eagan Dakota County CDA New construction 51 51 2043
9% 2014 & 2015 Lakeshore Townhomes Eagan Dakota County CDA New construction 50 50 2044
9% 2015 Keystone Crossing Townhomes Lakeville Dakota County CDA New construction 36 36 2045
9% 2016 Artspace Hastings Lofts Hastings Artspace New construction 37 37 2046
9% 2017 Lakeville Pointe Lakeville Ron Clark/Connelly Development New construction 49 49 2046
9% 2018 Prestwick Place Townhomes Rosemount Dakota County CDA New construction 40 40 2048
9%
2001 & 2002
and 2019
Guardian Angels Apartments
& Townhomes
Hastings
CommonBond
(2001 was Sherman Associates)
Substantial Rehab/Stabilization (2001
was new construction & rehabilitation)
33 33
2049
9% 2019 & 2020 Wexford Place Apartments Rosemount Ron Clark/Connelly Development New construction 49 49 2054
9% 2020 Prairie Estates Inver Grove Heights TCHDC Preservation/Rehab 40 40 2051
9% 2020 & 2021 Lexington Flats Eagan MWF Properties LLC New construction 50 50 2050
9% 2021 & 2022 Babcock Crossing Inver Grove Heights Ron Clark/Connelly Development New construction 49 49 2052
9% 2023 & 2024 Denmark Trail Townhomes Farmington Dakota County CDA New construction 40 40 TBD
9% 2024 Pillsbury Ridge Burnsville MWF Properties LLC New construction 48 48 TBD
Total 9% 46 Total 9% 1,779 1,799
Tax Credit
Type
Allocation Year
Project Name
City
Owner/Developer
Type
Tax
Credit
Units
Total
Units
Affordability
End Date
4% 2001
Clark Place Apts (fka Rose
Apartments/aka Kaposia Apartments)
South St. Paul
DRS Investment VII LLC (orig was
Real Estate Equities)
Acquisition/Rehab 48 48 2031
4% 2002 Grande Market Place Burnsville Sherman New Construction 53 113 2033
4% 2003 Hearthstone Apartments Apple Valley Stonebridge New Construction 50 228 2033
4% 2003 Blackberry Trail Apartments Inver Grove Heights Michael Development New Construction 88 219 2034
4% 2006 Spruce Place Apartments Farmington CommonBond Acquisition/Rehab 60 61 2035
4% 2008 Waterford Commons Rosemount Stonebridge New Construction 24 108 2038
4% 2015 The Sanctuary at WSP West St. Paul SCA Shelter New Construction 164 164 2046
4% 2016 Legends at Apple Valley Apple Valley Dominium New Construction 163 163 2047
4% 2017 Whitney Grove TH (fka Oaks of AV) Apple Valley CommonBond Acquisition/Rehab 55 56 2046
4% 2018 Winslow (fka DARTS) Senior West St. Paul Real Estate Equities New Construction 172 172 2049
4% 2020 Aster House Eagan Real Estate Equities New Construction 204 204 2051
4% 2021 The Quill Hastings Real Estate Equities New Construction 90 90 2051
4% 2021 Hilltop at Signal Hills West St. Paul Dominium New Construction 146 146 TBD
4% 2021 Legacy Commons at Signal Hills West St. Paul Dominium New Construction 247 247 TBD
4% 2022 The Villas at Pleasant Avenue Burnsville MWF Properties LLC New Construction 150 150 TBD
4% 2023 The Landing at Amber Fields Rosemount Real Estate Equities New Construction 160 160 TBD
4% 2022 The Villas at Pleasant Avenue II Burnsville MWF Properties LLC New Construction 110 110 TBD
4% 2023 Croft at Rosecott Rosemount Schafer Richardson New Construction 164 164 TBD
Total 4% 18 Total 4% 2,148 2,603
9% and 4%
64 Total 9% and 4% 3,927 4,402
F:\HFD\Tax Credit Suballocator\Admin and misc\Dakota 9% and 4% tax credits.xlsx
Dakota 9% and 4% tax credits.xlsx
2/22/2024
11:03 AM
8C - Attachment A
53
2025 Qualified Allocation Plan - Self-Scoring Worksheet (Draft)
Proposed
Proposed
Description
Change
from 2024
2025
Points
a. Selection Criteria:
1. New construction to increase supply Same 10 pts
2. Preservation - Federally Assisted Housing Same 25 pts
OR OR
Preservation – near end of affordability requirements Same 10 pts
3. Stabilization – trouble with occupancies/net revenues (points for #2 or #3) Same 5 pts
4. Readiness – land use and zoning Same 5 pts
5. Readiness – permanent funding sources secured Same Up to 15 pts
6. Community priority locations - gov't owned Same 10 pts
7. Long Term Affordability Same Up to 8 pts
8. Larger Family Size Units Same Up to 6 pts
9. Accessible units Same 5 pts
10. Ownership by Non-Profit or Government Same 5 pts
11. Intermediary costs Same Up to 6 pts
12. Homelessness/Permanent Supportive Housing Units Same Up to 15 pts
Homeless units for 4% - 2 units Same 5 pts
13. Community Revitalization - rehabilitation and community revitalization plan 5 pts 5 pts
b.3. QCT and Community Development Initiative Moved from
Preference;
was 5 pts
14. Eventual tenant ownership Same 1 pt
15. Unacceptable practices Same Up to -50 pts
16. Access to transit Same Up to 5 pts
b. Preference Priorities:
1. Previous Tax Credit commitment/reservation Same 30 pts
2. Serves the lowest income tenants Same Up to 15 pts
3. Geographic Balance New 5 pts
2024
Max Points
2025
Max Points
New Construction
141
146
Rehabilitation
161
161
2025 QAP - Draft Point Summary
8C - Attachment B
54
Dakota County CDA QAP 20242025
Sch 1 - 1
SCHEDULE 1
SELF-SCORING WORKSHEET
2024 2025 Housing Tax Credit
Program
Applicant Name
Project Name
Project Address/Location
Project City
Please note the following:
1. Documentation of Points
Indicate the selection and/or preference priority points expected for your project. Where multiple points per
section are available please check the appropriate box (
) for points claimed. Attach directly to this self-
scoring worksheet, a separate detailed sheet and documentation that clearly supports points claimed. The
Dakota County Community Development Agency (Agency) will determine the actual selection points awarded.
Points will not be awarded unless documentation is provided along with the application to justify the points
claimed.
Applicants must demonstrate the project is eligible for not fewer than 25 points to qualify for the 4% Tax
Credits under this Plan.
2. Extended Duration
Projects requesting 9% and 4% Tax Credits: Such projects must maintain the low-income use for a minimum
of 30 years. The owner agrees that IRC Sections 42(h)(6)(E)(i)(II) and 42(h)(6)(F) (which would permit the
owner to terminate the restrictions under the Declaration at the end of the 15- year compliance period in the
event the Agency does not present the owner with a qualified contract for the acquisition of the project) do
not apply to the project, and that the Section 42 income and rent restrictions shall apply for the period of 30
years beginning with the first day of the 15- year compliance period in which the building is part of a qualified
low income housing project.
3. Design Standards
The project must meet the Tax Credit Design Standards as specified in the Procedural Guide and be evidenced
by a Design Standards Certification form executed by the owner and architect.
4. Declaration of Land Use Restrictive Covenants
A Declaration covering the rent and income limits and occupancy requirements, including student eligibility
requirements, must be placed on the building(s) and recorded in the county in which the project is located.
5. Section 8 Voucher Acceptance
Owners of a Tax Credit project must agree to not refuse to rent a unit to a tenant because that tenant has a
Section 8 voucher that would be used for a unit in the project. Language prohibiting discrimination based on
Section 8 status must be included in the Declaration entered into by the owner with the Agency. Declarations
are enforceable in state court by housing credit agencies and all income-eligible persons.
8C - Attachment C
55
Dakota County CDA QAP 20242025
Sch 1 - 2
MINIMUM THRESHOLD REQUIREMENTS
All applicants must meet one of the seven (7) following threshold types. To qualify for threshold #7 the applicant
must have written approval from the Agency prior to submission of the application. Check one box for project type
1-7 below. In the event Minnesota Statutes are modified to allow additional threshold requirements, this worksheet
will be modified accordingly.
1.
New construction or Substantial Rehabilitation of projects in which, for the term of the
Declaration), at least 75% of the total Tax Credit units are Single Room Occupancy, efficiency, or
one bedroom units and which are affordable by households whose income does not exceed 30%
of the median income.
2.
New construction or Substantial Rehabilitation family housing projects that are not restricted to
occupancy by persons 55 years old or older and in which, for the term of the extended use period
(term of the Declaration), at least 75% of the Tax Credit units contain two or more bedrooms and
at least one third of the 75% contain three or more bedrooms.
3.
Substantial Rehabilitation projects in neighborhoods targeted by the
applicable
city for
revitalization.
4.
Projects that are not restricted to persons of a particular age group and in which, for the term of
the extended use period (term of the Declaration), a percentage of the units are set aside and
rented to (check one, if applicable):
Persons with a serious and persistent mental illness as defined in Minnesota
Statutes Section 245.462, Subd. 20(c);
Persons with a developmental disability as defined in the United States Code, Title
42, Section 6001(8);
Persons who have been assessed as drug dependent persons as defined in
Minnesota Statutes Section 254A.02, Subd. 5, and are receiving or will receive care
and treatment services provided by an approved treatment program as defined in
Minnesota Statutes Section 254A.02, Subd. 2;
Persons with a brain injury as defined in Minnesota Statutes Section 256B.093,
Subd. 4(a); or
Persons with permanent physical disabilities that substantially limit major life
activities, if at least fifty percent (50%) of the units in the project are accessible as
provided under Minnesota Rules Chapter 1340
5.
Projects, whether or not restricted to persons of a particular age group, which preserve existing
subsidized housing if the use of Tax Credits is necessary to prevent conversion to market rate use
or to remedy physical deterioration of the project which would result in loss of existing federal
subsidies.
6.
Projects financed by Rural Development which meet state-wide distribution goals.
7.
In addition t
o
Thresholds 1
-
6, the Agency
may allocate Tax Credits
Up
to
two
one remaining
projects that areis a new construction or Substantial Rehabilitation multifamily housing projects
that areis not restricted to persons 55 years of age or older and that areis located within one of
the following areas at the time a reservation for Tax Credits is made:
an area within one-half mile of a completed or planned light rail transitway, bus
rapid transitway, or commuter rail station;
an area within one-fourth mile from any stop along a high-frequency local bus line;
an area within one-half mile from a bus stop or station on a high-frequency express
route;
56
Dakota County CDA QAP 20242025
Sch 1 - 3
an area within one-half mile from a park and ride lot; or
an area within one-fourth mile of a high-service public transportation fixed route
stop;
For purposes of this section, the following terms have the meanings given them:
(1) "high-frequency local bus line" means a local bus route providing service at least every 15
minutes and running between 6:00 a.m. and 7:00 p.m. on weekdays and between 9:00 a.m. and
6:00 p.m. on Saturdays;
(2) "high-frequency express route" means an express route with bus service providing six or
more trips during at least one of the peak morning hours between 6:00 a.m. and 9:00 a.m. and
every ten minutes during the peak morning hour; and
(3) "high-service public transportation fixed route stop" means a stop serviced between 6:00
a.m. and 7:00 p.m. on weekdays and 9:00 a.m. and 6:00 p.m. on Saturdays and with service
approximately every 30 minutes during that time.
(Minnesota Statutes Section 383D.41, Subdivision 11)
Note: To qualify for Threshold #7 the applicant must have written approval from the Agency prior
to submission of the application.
DAKOTA COUNTY CDA
ADDITIONAL THRESHOLD REQUIREMENTS
All applicants must meet the following additional threshold requirements. Check boxes below to indicate the
acceptance of these requirement:
8
.
The
and the
Agency determines the
owner has sufficient experience.
The application demonstrates reasonable operating expenses relative to comparable projects
in the past,
The project complies with applicable building, land use and zoning ordinances,
The project is consistent with a Market Study, and
The costs of intermediaries meet the criteria set forth in the Procedural Manual.
9.
Applicants must agree to utilize public housing waiting lists in Dakota County in marketing units to
the public.
10.
The owner
agree
s
to
not refuse to rent a unit to a tenant because that tenant has a Section 8
voucher and that language prohibiting discrimination based on Section 8 status will
be included in
the Declaration.
11.
The applicant demonstrates by information submitted
in the application that each building in the
project is a qualified low-income building under Section 42(c)(2) of the Code.
12
.
The applicant agrees to enter into a Declaration in form and substance acceptable to the Agency
and legal counsel appointed by the Agency.
13.
The applicant agrees to apply resident screening criteria as provided in the Declaration.
14.
For 9% and 4% Tax Credit projects, the applicant agrees to waive the provisions of Sections
42(h)(6)(E)(i)(II) and 42(h)(6)(F) which permit the owner to terminate the rent and income
restrictions under the Declaration at the end of the initial 15-year compliance period.
All Tax Credit
projects must maintain the low-income use for a minimum of 30 years.
15.
The applicant agrees to provide high speed internet access via installation of all appropriate
infrastructure and connections for cable, DSL or wireless/data internet service to every unit.
16.
The applicant agrees to institute and maintain a written policy* prohibiting smoking in all the units
and all common areas within the building/s of the project. The project must include a non-
smoking
clause in the lease for every household. Projects will be required to maintain the smoke-
free policy
for the term of the Declaration.
*A written policy must be submitted with the application and should include procedures regarding
transitioning to smoke-
free for existing residents and the establishment of smoking areas outside
of units and common areas, if applicable. Consequences for tenants violating the smoke-
free policy
will be determined by the owner and must be included in the written policy for the project.
57
Dakota County CDA QAP 20242025
Sch 1 - 4
SELECTION PRIORITIES
a. SELECTION CRITERIA
Check the box to the left of the descriptions below to indicate selection and/or preference
priority points expected. The Agency will determine actual points to be awarded, based
on the application and the documentation submitted. All applicants for 9% LIHTC will be
scored competitively against other applications received. All applicants for 4% LIHTC with
tax exempt volume limited bonds must meet a minimum score of 25 points.
Developer
Claimed
Agency
Awarded
New Construction (10 Points)
1. New construction which increases the supply of affordable rental housing in
Dakota County (10 points).
Preservation and Stabilization of Affordable Housing (Up to 25 Points)
2.
Preservation of Affordable Housing:
Preservation of Federally Assisted Housing (25 Points):
Points are awarded to projects that preserves low-income housing receiving
assistance under Section 8 or Section 236 or other similar project-based
subsidy which, due to mortgage prepayments or expiring rental assistance,
would convert to market rate use. The Agency in its sole discretion must
agree that a market exists for a conversion to market rate housing.
OR
Preservation (10 Points):
Points are awarded to projects that preserve the rent and income
restrictions under an existing use agreement which, due to expiring
affordability periods would convert to market rate use. The Agency, in its
sole discretion, will verify that a market exists for a conversion to market
rate housing.
Applicant must agree in writing to continued renewals of the existing project-
based housing subsidy payment contract for as long as assistance is available.
3. Stabilization of Affordable Housing (5 Points)
Points are awarded to projects with existing federally assisted units or previously
funded by Tax Credits or deferred loans from the Agency or other public entity,
that are not also claiming points in the Preservation of Affordable Housing
category which are experiencing trouble with occupancies and/or net revenues
which need to be stabilized.
Applicants must provide narratives to support the approach of a planned, long
term and cost effective stabilization that meets all of the following criteria:
i) Suitability for long term stabilization:
a. 18 or more years have passed since initial loan closing or most recent
Tax Credit placement in service date; and
b. Operating feasibility shows duration of at least 20 years.
AND
ii) Collaborative relationship in place
Points claimed and deemed eligible for Financial Readiness to Proceed,
minimum of 6 points.
AND
iii) Affordability and Cost Effectiveness
Points claimed and deemed eligible in Preference Priorities b.2 (Serves
Lowest Income Tenants/Rent Reduction)
58
Dakota County CDA QAP 20242025
Sch 1 - 5
Developer
Claimed
Agency
Awarded
Readiness to Proceed (Up to 20 Points)
4. Points are awarded to projects that, at the time of application, have
received final land use entitlements up to and including preliminary plat
approvals, final Comprehensive Plan amendments (if any), final zoning
approvals and site plan authorization. (5 points)
5
.
Financial Readiness
(up to 15 points)
.
Points are awarded to projects that have secured funding commitments for
permanent funding sources or have no funding gap at the time of
application. Words sy
valid or acceptable.
The calculation below must exclude all first mortgage financing and
anticipated Tax Credit proceeds from the current Tax Credit request.
Committed syndication proceeds from previously reserved Tax Credits may
be included in the calculation.
Acceptable documentation of syndication proceeds from Tax Credits
awarded in a previous cycle/round is an executed agreement or letter of
intent from a syndicator/investor which is acceptable to the Agency. The
executed agreement or letter of intent must: (1) be current and dated
within 15 days of application; (2) contain a projected closing date; (3)
contain a projected equity price for the purchase of the Tax Credits; and (4)
contain a detailed explanation of the assumptions being used by the
syndicator/investor to arrive at the projected equity price.
Total eligible funding secured, awarded or
committed (exclude first mortgage and
syndication proceeds as described above) $_______________
Divided by total development cost less first
mortgage and excluded syndication proceeds $_______________
Equals percentage of funds committed,
rounded to the nearest tenth ______________%
Check box that applies:
70.1% or more of gap funds committed or no gap (15 points)
50.1 70.0% of gap funds committed (10 points)
30.1 50.0% of gap funds committed (6 points)
10.1 30.0% of gap funds committed (2 points)
Please see the Procedural Manual Section VIII. A. for details.
If points are claimed and the funding is returned/not used the affordability
requirements for that (those) funding source(s) will be included in the
Declaration.
Community Priority Locations (10 Points)
6.
Points are awarded to projects
located on property fully/entirely owned by
the Agency, Dakota County, or a municipality in Dakota County at the time
of application. (10 points)
59
Dakota County CDA QAP 20242025
Sch 1 - 6
Developer
Claimed
Agency
Awarded
Long Term Affordability (Up to 8 Points)
7. Points are awarded to projects that agree to extend the long-term affordability of
the project and maintain the duration of low-income use beyond the required
minimum of 30 years by agreeing to:
Check box that applies:
Extend the long-term affordability of the project and maintain
the duration of low-income use for a minimum of 35 years (2 points)
Extend the long-term affordability of the project and maintain
the duration of low-income use for a minimum of 40 years (4 points)
Extend the long-term affordability of the project and maintain
the duration of low-income use for a minimum of 45 years (6 points)
Extend the long-term affordability of the project and maintain
the duration of low-income use for a minimum of 50 years (8 points)
Large Family Housing (up to 6 points)
8.
Points are awarded to projects that promote
family housing that is not restricted to
persons 55 years old or older for the term of the Declaration, where 25% or more
of the Tax Credit units in the project have 3 or more bedrooms.
Check box that applies:
At least 30% of the Tax Credit units have 3 or more bedrooms (3 points)
At least 50% of the Tax Credit units have 3 or more bedrooms (6 points)
Accessible Units (5 Points)
9. At least 25% of the Tax Credit units in the project are designed, equipped and set
aside for the developmentally, physically or mentally disabled and there is a referral
and marketing plan that includes an agreement with an established organization to
provide services for such persons. (5 points)
Ownership by Non-Profit or Governmental Unit (5 Points)
10. A qualified non-profit or a governmental unit is the sole general partner/managing
member. (5 points)
The non-profit must be organized and incorporated in the State of Minnesota and
have at least five-year
s experience in Minnesota owning and operating at least 100
units of affordable Tax Credit housing. Points will only be awarded to local non-
profits. To be eligible for points, the non-profit must be a qualified non-profit tax-
exempt organization within Code Section 501(c)(3) at the time of application, and
must also meet the requirements of Section 42(h)(5)(C) of the Code. For a non-
profit, a copy of the Certificate of Incorporation from the Secretary of State of
Minnesota and organization documentation evidencing the 501(c)(3) status m be
submitted at the time of application.
These points are awarded because the Agency has an assumption that such
organizations have a mission that results in perpetual affordability of the units.
Points will not be awarded if the non-profit/governmental organization has been a
project sponsor or general partner/managing member of a project that converted
units to market rate units in the past three (3) years without the consent of the
issuing public agency within Minnesota.
60
Dakota County CDA QAP 20242025
Sch 1 - 7
Developer
Claimed
Agency
Awarded
Intermediary Costs (Up to 6 Points)
11. Points are awarded to projects with the lowest intermediary costs on a sliding scale
based on the percentage of total development costs. For applicants receiving points
under this item, this percentage will be enforced at issuance of IRS Form 8609.
Total intermediary costs $_________________
Divided by Total Development Cost $_________________
Equals percentage of costs toward
intermediaries, rounded to the nearest tenth ________________%
Check box that applies:
0 15.0% of total development cost (6 points)
15.1 20.0% of total development cost (3 points)
20.1 25.0% of total development cost (2 points)
Homelessness (Up to 15 points)
These units must provide rental assistance or for those units occupied by households without rental
assistance that are
seeking these points, the gross rent, including an allowance for tenant-paid utilities, cannot exceed the greater of 30
shed
by MHFA. Owners must establish and implement policies and procedures to specify the calculation method used to
determine the appropriate rent amount and the periodic income recertification used when adjusting rents.
Applicants that claim this criterion and are selected will be required to comply with any due diligence/reporting
requirements after selection and term of the declaration. Failure to comply could result in the loss of the award and/or
allocation as well as the assessment of penalty points.
12.
Permanent Supportive Housing Units.
P
oints
are
awarded to projects that commit
suitable Tax Credit units with supportive services for occupancy by households who
are experiencing homelessness as defined in Minnesota Rules Chapter 4900.3705.
Applicants claiming points for providing homeless units will be requested to work
with the Suburban Metro Area Continuum Homeless Coordinated Entry System and
other alternative referral and prioritization processes for populations that have
demonstrated need but are not included in the Coordinated Entry System, as is
reasonable and feasible, to fill those units.
Applicants must agree to pursue and continue renewal of rental assistance,
operating subsidy or service funding contracts for as long as the funding is available.
Applications that a set-aside 10% or more Tax Credit units for homeless household,
must also commit the supportive services will be available on-site for homeless
households. Contracts for supportive services must be in place prior to closing or
Tax Credit Carryover allocation.
Upon selection to receive Tax Credits the applicant must receive support in writing
from the Dakota County Affordable Housing Coalition (AHC) prior to financing
closing or the Tax Credit Carryover allocation.
Set aside 5%- 9.99%, but no fewer than 2 Tax Credit units (5 points)
Set aside 10% - 49.99%, but no fewer than 5 Tax Credit units (10 points)
Set aside 50% or more, but no fewer than 20 Tax Credit units (15 points)
4% Projects Only:
Set aside no fewer than 2 Tax Credit units (5 points)
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Dakota County CDA QAP 20242025
Sch 1 - 8
Developer
Claimed
Agency
Awarded
Rehabilitation Under Community Revitalization Plan (5 Points)
13. Points are awarded to projects for the rehabilitation of existing housing
which is part of a community revitalization plan and that the project is
contributing to the revitalization. 5 pointsCommunity Development
Initiative (5 points)
Points are awarded to projects that contribute to the active implementation
of a Community Development Initiative to address locally identified needs
and priorities, with active engagement by local stakeholders. The initiative
can be created by, and involve engagement from, a wide variety of public
and private local community development partners such as cities, counties,
employers, private foundations, public housing authorities, or other
community stakeholders. The plan must contain more components than the
project itself. Documentation must be provided that address the
requirement of a Community Development Initiative as provided in the
Procedural Manual, Exhibit I.
If a project is located in a Qualified Census Tract (QCT), in order to be eligible
for these points, the application must provide additional evidence that
demonstrates a strategy for obtaining commitments of public and/or private
investment in non-housing efforts to demonstrate that the project
contributes a concerted community revitalization plan.
Eventual Tenant Ownership (1 Point)
14. This point is awarded to projects that include a plan for eventual tenant
ownership of 100% of the units. (1 point)
Unacceptable Practices (Up to -50 Points)
15. Unacceptable Practices, includes the transfer of ownership of the owner and
displacement of Section 8 tenants as described in Section IV.F of the
Procedural Manual.
Access to Transit (Up to 5 Points)
16. Points are awarded to projects located within walking distances of public
transit stations and stops. (up to 5 points)
Project is located within ½ mile of Orange Line transitway stations
(including the Burnsville Center station and all stations north) or Red
Line transitway stations (including the Apple Valley Transit Station and
all stations north) (5 points); OR
Project is located within ½ mile of a park and ride (with bus service), a bus
route stop, or a Minnesota Valley Transit Authority (MVTA) bus route
where the bus is able to stop (3 points).
At the time of application, the applicant must submit a map identifying the
location of the project with exact walking distances to the eligible public
transit station/stop and include a copy of the route.
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Dakota County CDA QAP 20242025
Sch 1 - 9
b.
PREFERENCE PRIORITIES
Points obtained through Preference Priorities will be included in the
application's score and will be used to break ties in overall scoring for the
competitive selection of applicants, as detailed in Section 8.2.
Developer
Claimed
Agency
Awarded
1. Previous Tax Credit Commitment/Reservation (30 points).
Points are awarded to projects that have a prior commitment/reservation of
Tax Credits, were not fully funded in a previous round, and require additional
Tax Credits to make the project feasible.
2.
Points
are
awarded to projects that will serve the lowest income tenants
(50% or less of area median adjusted by unit size) with gross rents not to
exceed 30% of income and agree to maintain the deeper rent structure for
the duration of the Declaration. (Up to 15 Points)
Applicants may choose any combination of the following rent limitations for
the project but may not count any unit more than once. This selection will
restrict rents only (tenant incomes will not be restricted to the following
levels by claiming points in this section).
Check the box that applies.
100% of Tax Credit units at the rents for 50% of AMI: 15 points
75% of Tax Credit units at the rents for 40% of AMI: 15 points
75% of Tax Credit units at the rents for 50% of AMI: 10 points
50% of Tax Credit units at the rents for 40% of AMI: 10 points
50% of Tax Credit units at the rents for 50% of AMI: 5 points
3. Geographic Balance (5 points).
Points are awarded to projects if the proposed project is located in a city that
has not received a 9% or 4% Tax Credit award from Dakota County CDA or
Minnesota Housing for new affordable housing development in the prior 3
years.
Points will be awarded to projects located in a Qualified Census Tract that
are part of a concerted plan which provides for community revitalization
consistent with the definition described as a Community Development
Initiative. (5 Points)
TOTAL POINTS:
Developer Agency
Claimed Awarded
SELF-SCORING WORKSHEET CERTIFICATION:
Under penalty of perjury, the Applicant hereby certifies the information provided in the Self-Scoring
Worksheet is true and accurate.
By:
Signature
Print or type name and title of signatory
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Dakota County CDA QAP 20242025
Sch 1 - 10
Of:
Name of Managing/General Partner
Date:
64
Board of Commissioners
Request for Board Action
Meeting Date: February 28, 2024 Agenda #: 8D
DEPARTMENT: Administration
FILE TYPE: Regular - Informational
TITLE
..title
Legislative Update
..end
PURPOSE/ACTION REQUESTED
Update on housing related legislative items.
SUMMARY
Staff will provide updates at the meeting on bills related to housing that have been introduced at the
legislature.
RECOMMENDATION
..recommendati on
None.
..end
EXPLANATION OF FISCAL/FTE IMPACTS
N/A
☒ None ☐ Current budget ☐ Other ☐ Amendment Requested ☐ New FTE(s) requested
ATTACHMENTS
None.
BOARD GOALS
☒ Focused Housing Programs ☐ Collaboration
☐ Development/Redevelopment ☐ Financial Sustainability ☐ Operational Effectiveness
CONTACT
Department Head: Sara Swenson, Director of Administration and Communications
Author: Sara Swenson
65