BOARD MEETING March 16, 2021 – 3:30 P.M. Dakota County CDA, 1228 Town Centre Drive, Eagan, MN 55123

BOARD MEETING March 16, 2021 – 3:30 p.m. Dakota County CDA, 1228 Town Centre Drive, Eagan, MN 55123

If you wish to speak to an agenda item, please notify the Clerk to the Board via email at [email protected]. Emails must be received by 12 p.m. on Tuesday, March 16, 2021. Instructions on how to participate will be sent to anyone interested.

AGENDA PAGE#

1. ROLL CALL A. Audience Anyone in the audience wishing to address the CDA Board on an item not on the agenda or an item on the consent agenda may come forward at this time. Anyone wishing to address the Board who cannot attend the meeting in person may notify the Clerk to the Board and instructions will be given to participate during the meeting. Comments are limited to five minutes. Comments can be sent prior to the meeting to [email protected].

2. APPROVAL OF AGENDA AND MEETING MINUTES 3  February 16, 2021 Board Meeting Minutes

3. FEDERAL PUBLIC HOUSING AND HOUSING CHOICE VOUCHER CONSENT A. Authorization To Award Contract For Exterior Improvement Project At Colleen Loney Manor In West

St. Paul 11

4. CONSENT AGENDA

A. Approval Of Record Of Disbursements – February 2021 18

B. Accept The Comprehensive Annual Financial Report And Single Audit Report For Fiscal Year

Ended June 30, 2020 21

5. REGULAR AGENDA A. Public Hearing To Receive Comments On The Disposition Of DCCDA Section 18, LLC Properties

and Authorization To Enter Into A Purchase Agreement With Twin Cities Habitat For Humanity 187

B. Public Hearing To Receive Comments And Adoption Of The 2022 Qualified Allocation Plan For Low

Income Housing Tax Credits 261

C. Annual GREATER MSP Update – Informational 303

D. Executive Director’s Update – Informational

6. INFORMATION

7. 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

April 20, 2021 CDA Board of Commissioners Regular Meeting – 3:30 p.m. Dakota County CDA Boardroom, 1228 Town Centre Drive, Eagan, MN 55123

2458

CDA Board of Commissioners Regular Board Meeting February 16, 2021

Dakota County CDA, 1228 Town Centre Drive, Eagan, MN 55123 (Meeting held via Zoom)

Commissioner Slavik called the meeting to order at 3:30 p.m.

COMMISSIONER ROLL CALL

Present Absent Commissioner Slavik, District 1 X Commissioner Gaylord, District 2 X Commissioner Halverson, District 3 X – arrived at 3:34 p.m. Commissioner Atkins, District 4 X Commissioner Workman, District 5 X Commissioner Holberg, District 6 X – arrived at 4:03 p.m. Commissioner Hamann-Roland, District 7 X Commissioner Cummings, At Large X

CDA staff in attendance: Tony Schertler, Executive Director Kari Gill, Deputy Executive Director Sara Swenson, Director of Administration and Communications Kaili Braa, Assistant Director of Administration and Communications Sarah Jacobson, Administrative Coordinator Lisa Alfson, Director of Community & Economic Development Maggie Dykes, Assistant Director of Community & Economic Development Kathy Kugel, Housing Finance Program Coordinator Lisa Hohenstein, Director of Housing Assistance Anna Judge, Director of Property Management

Others in attendance: Erin Stwora, Dakota County Tom Donely, Dakota County Matt Smith, Dakota County Marti Fischbach, Dakota County Natalie Mouilso, MCCD Elena Gaarder, MCCD Tyler Hilsabeck, MCCD Bruce Nordquist, City of Apple Valley Kathy Bodmer, City of Apple Valley Jenni Faulkner, City of Burnsville Adam Kienberger, City of Farmington Kati Bachmayer, City of Lakeville Eric Van Oss, City of Rosemount

AUDIENCE

No audience members addressed the Board. Building was open, but no one was in the audience to testify.

APPROVAL OF AGENDA AND MEETING MINUTES

21-6380 Approval Of Agenda And Meeting Minutes

BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners that the agenda for the February 16, 2021 Regular CDA Board meeting be approved as written.

BE IT FURTHER RESOLVED, by the Dakota3 County Community Development Agency Board of 2459

Commissioners that the minutes for the January 19, 2021, Regular Board and Annual Meeting be approved as written.

Motion: Commissioner Workman Second: Commissioner Gaylord

Ayes: 6 Nays: 0 Abstentions: 0

Yes No Absent Abstain Slavik X Gaylord X Halverson X Atkins X Workman X Holberg X Hamann-Roland X Cummings X

FEDERAL PUBLIC HOUSING AND HOUSING CHOICE VOUCHER AGENDA Consent

21-6381 Approval Of 2021 Utility Allowance Schedule For The Housing Choice Voucher Program

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 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 Program effective March 1, 2021.

21-6382 Approval Of Amendments To The Housing Choice Voucher Administrative Plan

WHEREAS, the Dakota County Community Development Agency (CDA), as an administrator of the Federal Housing Choice Voucher (HCV) program, is required to adopt and maintain and administrative plan to delineate the mandatory and discretionary policies used to govern the program; and

WHEREAS, the Dakota County CDA has made updates to the HCV Administrative Plan to include changes to waiting list management and program eligibility.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the amendments to the Housing Choice Voucher Administrative Plan are approved.

Motion: Commissioner Cummings Second: Commissioner Atkins

Ayes: 6 Nays: 0 Abstentions: 0

Yes No Absent Abstain Slavik X Gaylord X Halverson X Atkins X Workman X 4 2460

Holberg X Hamann-Roland X Cummings X

CONSENT AGENDA

21-6383 Approve Record Of Disbursements – January 2021

BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners,

That the January 2021 Record of Disbursements is approved as written.

Approval Of The Acquisition of Real Property (Prairie Crossing Townhomes, Lakeville) And The 21-6384 Assumption Of Loans By The Dakota County CDA Workforce Housing, LLC.

WHEREAS, the Dakota County Community Development Agency (the “CDA”) is the general partner of Lakeville Downtown Family Housing Limited Partnership (the “Partnership”) which owns Prairie Crossing Townhomes (the “Townhomes”); and

WHEREAS, U.S. Bancorp is willing to withdraw as limited partner of the Partnership for a de minimis amount; and

WHEREAS, the CDA has established the Dakota County Community Development Agency Workforce Housing LLC (the “CDA LLC”) pursuant to Minnesota Statutes, Section 469.012, Subd. 2j, in which the CDA is the sole member; and

WHEREAS, it is proposed that the CDA LLC acquire, own and operate the townhome project (the “Property”) owned by the Partnership, and legally described as Lot 1, Block 1 Lakeville Family Housing Third Addition, Dakota County MN, in which the CDA is the sole general partner, and that the CDA LLC assume outstanding loans on the Property, including the following loans made by Minnesota Housing Finance Agency (“MHFA”) and Family Housing Fund (“FHF”) to finance a portion of the cost of developing the Property (the “Loans”):

Project Owner: MHFA Loans: FHF Loans: CDA Loans: Address: MHFA Project #: Lakeville $802,181 $243,000 $413,261.53 1st 20340 Icefall D3660 Downtown Economic Mortgage; Trail, Family Housing Development $195,000 LHIA Lakeville MN Limited and Housing Loan 55024 Partnership Challenge $250,000 Program HOPE Loan (“EDHC”)

NOW, THEREFORE, BE IT REOSLVED by the Dakota County Community Development Agency Board of Commissioners, acting in its capacity as sole member of the Dakota County Community Development Agency Workforce Housing LLC, as follows:

1. The Executive Director of the CDA is hereby authorized and directed to execute and deliver, on behalf of the CDA as the sole member of the CDA LLC, all agreements, documents, instruments and certificates necessary or convenient to (i) acquire on behalf of th CA LLC fee title to the Property (the “Acquisition Documents”), and (ii) to evidence assumption by the CDA LLC of the Loans, including the MHFA and FHF loans (the “Loan Departments”) (together with the Acquisition Documents, the “Documents”). Such agreements shall include, but not be limited to, the MHFA and FHF Assumption Agreement and related Amendment to Loan Documents.

2. All Documents shall be executed in forms approved by the Executive Director of the CDA on advice of legal counsel. Execution of such Loan Documents shall constitute conclusive evidence of such approval.

3. The Executive Director is expressly authorized to approve the final terms and conditions of the Loans, including, without limitation, the final principal amount of the Loans.

5 2461

4. All actions heretofore taken on behalf of the Partnership in furtherance of the conveyance of the Townhomes are hereby approved, ratified, and confirmed.

5. Following conveyance of the Townhomes to the CDA LLC and withdrawal of the limited partner, the Executive Director of the CDA, acting on advice of counsel to the CDA, is hereby authorized and directed on behalf of the CDA as general partner to take actions, and to sign all documents, necessary or convenient to dissolve the Partnerships.

6. All actions heretofore taken on behalf of the CDA LLC in furtherance of the acquisition of the Property are hereby approved, ratified, and confirmed.

7. The Executive Director of the CDA is hereby authorized and directed on behalf of the CDA as the sole member of the CDA LLC, at any time and from time to time hereafter and without further action by the CDA or the CDA LLC, to execute and deliver or cause to be executed and delivered on behalf of the CDA LLC all such other agreements, assignments, statements, instruments, certificates and documents and to do or cause to be done all such other acts and things as he may determine to be necessary or advisable under or in connection with the Loans or the operation and administration of the Property, and the execution by the Executive Director of any such agreement, assignment, statement, instrument, certificate or document, or the doing of any such act or thing, shall be conclusive evidence of his determination in that respect, including, but not limited to, the execution of any and all agreements with MHFA or FHF for the extension of the time of payment of the MHFA or FHF Loans or any part thereof. The Executive Director is designated as the official representative of the CDA LLC for all matters concerning the Property which requires MHFA or FHF consent or approval.

8. The Executive Director and officers of the CDA are authorized and directed to prepare and furnish when the agreements described herein are executed, certified copies of all proceedings and records of the CDA and/or the CDA LLC relating to the Loans and the Property and such agreements and such other affidavits and certificates as may be required to show the facts relating to the due authorization and execution of such agreements as such facts appear from the books and records in said officers’ custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including and heretofore furnished, shall constitute representations of the CDA and/or the CDA LLC as to the truth of all statements made on behalf of the CDA and/or the CDA LLC and contained therein.

9. MHFA is authorized to rely on the continuing force and effect of this resolution until receipt by the Commissioner of MHFA, at its principal office, of notice in writing from the CDA of any amendments or alterations thereof.

10. In the event the Executive Director or any officer of the CDA authorized to execute documents on behalf of the CDA and the CDA LLC under this resolution shall for any reason be unable to do so, any other member of the Board of Commissioners of the CDA and the Deputy Executive Director are hereby directed and authorized to do so on behalf of the CDA LLC, with the same effect as if executed by the Executive Director.

11. The Executive Director is Tony Schertler and the Deputy Executive Director is Kari Gill.

Establish The Date For A Public Hearing Regarding The Disposition Of DCCDA Section 18, LLC 21-6385 Properties

WHEREAS, the Dakota County Community Development Agency (CDA), as sole member of the DCCDA Section 18, LLC owns 92 dwelling buildings containing 120 units located throughout Dakota County; and

WHEREAS, the CDA on behalf of DCCDA Section 18, LLC released a Request For Proposals on

January 4, 2021 to sell eight (8) units; and

WHEREAS, the CDA has received two offers from non-profit agencies; and

WHEREAS, the disposition of the units satisfies the CDA’s Acquisition and Disposition Policy; and 6 2462

WHEREAS, Minnesota Statutes 469.105, Subd. 1, 2, and 4 requires a public hearing regarding the terms of a sale of real property.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That:

1. A public hearing regarding the disposition of the following properties will be held by the CDA on March 16, 2021 at or after 3:30 p.m. at the CDA’s main office.

2. The Executive Director or his designee is hereby authorized and directed to cause notice of such public hearing in substantially the form attached hereto to be published in a newspaper of general circulation in Dakota County not less than twenty (20) days prior to such hearing.

Establish The Date For A Public Hearing On Qualified Allocation Plan For The Allocation Of Low 21-6386 Income Housing Tax Credits Under Section 42 Of The Internal Revenue Code of 1986, As Amended

WHEREAS, pursuant to Section 42 of the Internal Revenue Code of 1986, as amended (the “Code”), and Minnesota Statutes Sections 462A.221 through 462A.225, the Dakota County Community Development Agency (the “CDA”) is a housing credit agency authorized to allocate low income housing tax credits (the “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 (the “QAP”) detailing the basis for allocating Tax Credits among applicants; and

WHEREAS, the CDA proposes to adopt a QAP regarding the allocation of Tax Credits using 2022 volume cap and the allocation of any “automatic” tax credits attributable to private activity bonds issued after the adoption of the plan (the “2022 Plan”).

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners:

1. That a public hearing regarding the adoption of the 2022 Plan will be held by the CDA on March 16, 2021, at or after 3:30 p.m. at the CDA’s office.

2. The staff of the CDA 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 fifteen (15) days prior to such hearing.

Motion: Commissioner Workman Second: Commissioner Gaylord

Ayes: 6 Nays: 0 Abstentions: 0

Yes No Absent Abstain Slavik X Gaylord X Halverson X Atkins X Workman X Holberg X Hamann-Roland X

REGULAR AGENDA

21-6387 Authorization To Enter Into One Year Participation Agreement For Open To Business Program

Elena Gaarder, Tyler Hilsabeck & Natalie Mouilso from MCCD presented.

7 2463

WHEREAS, the Dakota County Community Development Agency (CDA) was granted the powers of an economic development authority in 2000 by Minnesota Law and an authorizing resolution adopted by the Dakota County Board of Commissioners (Resolution No. 00-543); and

WHEREAS, the CDA in conjunction with the 11 largest cities in Dakota County launched the countywide Open To Business program in 2013 to provide business advisory services and access to capital to entrepreneurs and small businesses in Dakota County; and

WHEREAS, the CDA and 11 cities have annually renewed participation in the Open To Business program since 2013, with the CDA as the fiduciary agent and administrator of the contract with Metropolitan Consortium of Community Developers (MCCD) and joint powers agreements executed between each participating city and the CDA; and

WHEREAS, the cost for the 2021 Open To Business program is $125,000; and

WHEREAS, the CDA portion of the annual cost of the program is fifty percent (50%) match for each participating city, as well as covering the cost of serving the small cities and townships; and

WHEREAS, the Open To Business program is consistent with the Economic Development Strategy and Guiding Principles adopted by the Dakota County CDA Board of Commissioners, in that it results from a collaborative approach; it is a response to a need for specialized expertise and economies of scale; it serves a need that is located in more than one community; and it is non-duplicative of other services.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, hereby:

1. Approves CDA participation in the Open To Business program for 2021 subject to participation of the Dakota County cities.

2. Authorizes the Executive Director to execute a contract with MCCD for an amount not to exceed $125,000/annually, of which the CDA’s portion of the fee shall not exceed $65,000, subject to approval by the County Attorney’s Office as to form.

3. Authorizes the Executive Director to execute a Joint Powers Agreement between the CDA and the participating cities, designating the CDA as fiscal agent for the contract with MCCD and requiring each city to submit a participation fee to the CDA, subject to approval by the County Attorney’s Office as to form.

Motion: Commissioner Hamann-Roland Second: Commissioner Atkins

Ayes: 6 Nays: 0 Abstentions: 0

Yes No Absent Abstain Slavik X Gaylord X Halverson X Atkins X Workman X Holberg X Hamann-Roland X

Authorization Of Tax Increment Financing Loan And Execution Of Related Documents For Roers 21-6388 Founders Circle 2nd Senior Development (Apple Valley)

Maggie Dykes presented.

WHEREAS, in 2014, the Dakota County Community Development Agency (the “CDA”) acquired a 4.77 - acre parcel located northwest of the intersection of Founders Lane and Galaxie Avenue in the City of Apple Valley and legally described as Lot 1, Block 1 Village at Founders Circle 2nd Addition (the “Property”); and 8 2464

WHEREAS, the CDA acquired the Property through tax-forfeiture for the purpose of causing a private owner to develop high quality, Class A mixed-income residential development; and

WHEREAS, the CDA used pooled increment from two existing Tax Increment Financing (TIF) districts in Apple Valley to pay $1.5 million in canceled special assessments to the City of Apple Valley; and

WHEREAS, by Resolution 20-6289, the CDA Board of Commissioners authorized the execution of a purchase agreement with Roers Companies for the sale of the Property for $3 million; and

WHEREAS, Roers Companies (the “Developer”) has proposed to construct a 172-unit development senior development on the Property with at least 20% of the units affordable to residents earning not more than 50% of Area Median Income (the “Project”); and

WHEREAS, the Developer has requested financial assistance in the amount of $2.885 million for 36 affordable units; and

WHEREAS, Northland Securities has reviewed the Developer’s request and determined that the Project is feasible only with financial assistance; and

WHEREAS, the proceeds from the sale of the Property could be used as a funding source for a $2.885 million loan to the Developer payable over 15 years contingent on meeting rent and income requirements and paying property taxes.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That:

1. A Tax Increment Financing Loan is approved in an amount up to $2.885 million to Roers Companies for the construction of a 172-unit senior apartment building with at least 36 units affordable to residents earning not more than 50% of Area Median Income. 2. Staff is authorized to prepare, execute, and deliver all documentation necessary or convenient to provide a Tax Increment Financing Loan between the Dakota County Community Development Agency and the Developer. 3. A budget amendment is approved for FYE21 to incorporate this loan into TIF budgets. 4. The Chair of the Dakota County Community Development Agency Board of Commissioners and the Executive Director of the Dakota County Community Development Agency are authorized to execute said documents upon such release.

Motion: Commissioner Hamann-Roland Second: Commissioner Halverson

Ayes: 7 Nays: 0 Abstentions: 0

Yes No Absent Abstain Slavik X Gaylord X Halverson X Atkins X Workman X Holberg X Hamann-Roland X

INFO Housing Development Update – Informational

Kari Gill provided updates.

INFO Executive Director’s Update

Tony Schertler provided updates.

9 2465

ADJOURNMENT

21-6389 Adjournment

BE IT RESOLVED, that the Dakota county Community Development Agency Board of Commissioners

hereby adjourns until Tuesday, March 16, 2021.

Motion: Commissioner Gaylord Second: Commissioner Hamann-Roland

Ayes: 8 Nays: 0 Abstentions: 0

Yes No Absent Abstain Slavik X Gaylord X Halverson X Atkins X Workman X Holberg X Hamann-Roland X Cummings X

The CDA Board meeting adjourned at 4:35 p.m.

______Clerk to the Board

10 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION

Authorization To Award Contract For Exterior Improvement Project At Colleen Loney Manor In West St. Paul

Fiscal/FTE Impact: Meeting Date: 3/16/2021 None Department: Property Management Amount included in current budget Prepared By: Anna Judge Budget amendment requested Contact: Anna Judge FTE included in current complement Contact Phone: 651-675-4501 New FTE(s) requested Other:

PURPOSE/ACTION REQUESTED  Authorize Executive Director to execute a contract with Meisinger Construction.  Authorize change order authority to the Director of Property Management.

SUMMARY Colleen Loney Manor, an 80-unit public housing apartment building in West St. Paul was built in 1980 and is in need of some exterior improvements which include the replacement of the bridge, bridge rails, community room asphalt shingle roof, third floor flat roof, decking and associated items as noted in the job specification.

A public bid opening was held at the CDA office. A total of 22 contractors were solicited and invited to bid on the project. A two-week advertisement for solicitation of bids was published in the Dakota County Tribune (Attachment A) and on the CDA’s website. As a result of all solicitations, five bids were received at the bid opening. The results are on the Bid Tabulation (Attachment B).

In addition to the base contract, staff have determined that alternates 1, 2, 3, 5 and 7 should also be included in the project as the pricing was reasonable. These alternates include: a temporary construction fence, a transitional 5” concrete paving at bridge end, new interior roof drain, two coat paint system to the hot-dipped galvanized railing, and special inspector reports and fees associated with the reports.

The low bidder was Meisinger Construction. References were provided and checked. Meisinger Construction has been deemed a qualified bidder.

RECOMMENDATION Staff recommends that the Executive Director be authorized to enter into a contract with Meisinger Construction in the total amount of $277,000 (base contact and alternates 1, 2, 3, 5, and 7). The solicitation of bids was done in accordance with public bidding requirements; the low bidder is reasonable and a bid bond was received.

Staff also recommends the Director of Property Management be authorized to execute change orders up to 10% of the contract amount ($27,700) to deal with any unforeseen issues during the project.

EXPLANATION OF FISCAL/FTE IMPACT Funds from the Public Housing Capital Fund will be used for this project.

11 Supporting Documents: Previous Board Action(s): Attachment A: Public Notice Attachment B: Bid Tabulation Attachment C: Building Photos

Resolution No. 21-XXXX

Authorization To Award Contract For Exterior Improvement Project At Colleen Loney Manor In West St. Paul

WHEREAS, the Dakota County Community Development Agency accepted bids for the exterior improvements project of Collen Loney Manor, a public housing apartment building in West St. Paul; and

WHEREAS Meisinger Construction was the lowest responsible bidder with a bid total of $277,000 which includes the base bid and alternates chosen; and

WHEREAS, funds are included in the Public Housing Capital Fund budget for this project.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Executive Director be authorized to sign a contract for the project with the lowest responsible bidder, Meisinger Construction, in an amount of $277,000; and

BE IT FURTHER RESOLVED, That the Director of Property Management be authorized to execute change orders not to exceed 10% of contract amount.

Executive Director’s Comments: Strategic Plan Priorities: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness

______Executive Director Department Director 12 3A: Attachment A

13 14 3A - Attachment B CLM Exterior Improvements Project Bid Tab Public Bid Opening on 2/12/2021

Alt #1 Alt #2 Alt #3 Alt #5 Alt #7 Total Base + Contractor Bid Base Bid Temporary 5” Move Roof 2 coat Inspector Accepted Bond Total Fence Paving Drain paint Report Alternates

Ebert Const. X $307,700 $4,000 $2,100 $11,400 $8,400 $5,300 $338,900

J. Lewis X $303,530 $8,970 $1,200 $7,800 $33,750 $4,000 $359,250

Minnesota Const. X $277,191 $2,000 $1,500 $3,500 $9,875 $1,500 $295,566

Parkos X $296,400 $6,500 $540 No bid $9,500 $3,150 $316,090

Meisinger Const. X $256,700 $1,000 $2,100 $4,500 $9,200 $3,500 $277,000

15 3A - Attachment C

16 17 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION

Approval Of Record Of Disbursements – February 2021

Fiscal/FTE Impact: Meeting Date: 3/16/2021 None Department: Finance Amount included in current budget Prepared By: Chris Meyer Budget amendment requested Contact: Ken Bauer FTE included in current complement Contact Phone: 651-675-4450 New FTE(s) requested Other:

PURPOSE/ACTION REQUESTED  Approve Record of Disbursements for February 2021

SUMMARY In February 2021, the Dakota County Community Development Agency (CDA) had $5,838,668.81 in disbursements and $430,843.09 in payroll expenses. Attachment A provides the breakdown of disbursements. Additional detail is available from the Finance department.

RECOMMENDATION Staff recommends approval of the Record of Disbursements for February 2021.

EXPLANATION OF FISCAL/FTE IMPACT These disbursements are included in the Fiscal Year Ending June 30, 2021 budget.

18 Supporting Documents: Previous Board Action(s): Attachment A: Record of Disbursements – February 2021

Resolution No. 21-XXXX

Approval Of Record Of Disbursements – February 2021

BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners, That the February 2021 Record of Disbursements is approved as written.

______Executive Director Department Director 19 4A: Attachment A

Dakota County CDA Record of Disbursements For the month of February 2021

Date Amount Total Common Bond Fund 02/20/21 $ 63,161.76 $ 63,161.76 Disbursing 02/01/21 $ 81,034.00 02/04/21 $ 706,946.64 02/11/21 $ 539,409.91 02/18/21 $ 346,066.36 02/25/21 $ 1,326,530.21 $ 2,999,987.12 Housing Assistance 02/01/21 $ 1,966,054.93 02/18/21 $ 101,674.00 $ 2,067,728.93 Housing Development & Renewal 02/25/21 $ 707,791.00 $ 707,791.00

Total Disbursements $ 5,838,668.81

Februrary 2021 Payroll 02/12/21 $ 213,712.95 02/26/21 $ 217,130.14 Total Payroll $ 430,843.09

Disbursement detail is available in the Finance Office

20 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION

Accept The Comprehensive Annual Financial Report And Single Audit Report For Fiscal Year Ended June 30, 2020

Fiscal/FTE Impact: Meeting Date: 3/16/2021 None Department: Finance Amount included in current budget Prepared By: Ken Bauer Budget amendment requested Contact: Ken Bauer FTE included in current complement Contact Phone: 651-675-4450 New FTE(s) requested Other:

PURPOSE/ACTION REQUESTED  To accept the Comprehensive Annual Financial Report (CAFR) and the Single Audit Report for the fiscal year ended June 30, 2020.

SUMMARY The Dakota County Community Development Agency (CDA) is required to have an annual audit of its basic financial statements conducted in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the requirements of Title 2 of the U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements of Federal Awards (Uniform Guidance) and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government promulgated by the Legal Task Force pursuant to Minnesota Section 6.65.

The CDA’s audit for the fiscal year ended June 30, 2020 was performed by the certified public accounting firm of RSM US LLP. The results of this audit are contained in the following reports:

Comprehensive Annual Financial Report (CAFR) The CAFR (Attachment A) is comprised of three major sections: introductory, financial and statistical. The introductory section provides general information about the CDA. The financial section contains the basic financial statements as well as the management discussion and analysis and supplementary financial information. The statistical section provides trend data and non-financial data useful in interpreting the basic financial statements and evaluating economic condition.

The auditor’s opinion on the basic financial statements is contained on pages 11-12. RSM US LLP has expressed an unmodified or “clean” opinion which means that the basic financial statements presented are fairly presented in all material respects in conformity with the accounting principles generally accepted in the United States of America.

Single Audit Report The Single Audit Report (Attachment B) contains the auditor’s report on internal control over financial reporting and compliance and other matters as required by the aforementioned standards. These reports do not identify any material weaknesses in internal control or material noncompliance and no audit findings or questioned costs.

Report to the Board of Commissioners RSM US LLP has prepared an additional report titled “Report to the Board of Commissioners” (Attachment C). This report communicates various matters relating to the audit. Of particular note, is that there were no audit adjustments and no disagreements with management.

RECOMMENDATION Staff recommends accepting the CAFR and Single Audit Report for the fiscal year ended June 30, 2020.

EXPLANATION OF FISCAL/FTE IMPACT None.

21 Supporting Documents: Previous Board Action(s): Attachment A: Comprehensive Annual Financial Report Attachment B: Single Audit Report Attachment C: Report to the Board of Commissioners

Resolution No. 21-XXXX

Accept The Comprehensive Annual Financial Report And Single Audit Report For Fiscal Year Ended June 30, 2020

WHEREAS, the Dakota County Community Development Agency (CDA) is required to have an annual audit of its financial statements in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and

WHEREAS, the audit must also meet the additional requirements imposed the requirements of Title 2 of the U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements of Federal Awards (Uniform Guidance) and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government promulgated by the Legal Task Force pursuant to Minnesota Section 6.65; and

WHEREAS, the CDA has prepared a Comprehensive Annual Financial Report (CAFR) and Single Audit Report for the year ended June 30, 2020; and

WHEREAS, the public accounting firm of RSM US LLP (“Auditor”) has performed an audit of the financial statements of the CDA for the year ended June 30, 2020 in accordance with all applicable audit requirements; and

WHEREAS, the Auditor’s reports as a result of this audit are contained in the Comprehensive Annual Financial Report and Single Audit Report for the fiscal year ended June 30, 2020.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Comprehensive Annual Financial Report and Single Audit Report for the year ended June 30, 2020 are hereby accepted.

______Executive Director Department Director 22 4B: Attachment A

Comprehensive Annual Financial Report

For the Year Ended June 30, 2020

Dakota County Community Development Agency A component unit of Dakota County, Minnesota

23 Dakota County Community Development Agency

A component unit of Dakota County, Minnesota

Comprehensive Annual Financial Report

For the Year Ended June 30, 2020

Prepared by: Finance Department

24 Table of Contents

Page Introductory Section Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 6 Organizational Chart 7 List of Appointed Officials 8

Financial Section Independent Auditor’s Report 11 Management’s Discussion and Analysis 13 Basic Financial Statements: Statement of Net Position 21 Statement of Revenues, Expenses, and Changes in Net Position 23 Statement of Cash Flows 24 Notes to the Financial Statements 27 Supplementary Information: Financial Data Schedule: Entity Wide Balance Sheet Summary 65 Entity Wide Revenue and Expense Summary 85 Combining Schedule of Net Position - Business Activities 115 Combining Schedule of Revenues, Expenses, and Changes in Net Position - Business Activities 117

Statistical Section Net Position by Component 121 Changes in Net Position 122 Assessed and Estimated Actual Value of Taxable Property 123 Direct and Overlapping Governments – Tax Capacity Rate 124 Principal Taxpayers 125 Property Tax Levies and Collections 126 Rental Revenues 127 Ratios of Outstanding Debt by Type 128 Pledged‐Revenue Coverage – Housing Development Bonds 129 Demographic Statistics 130 Principal Employers 131 Full‐Time Equivalent Employees 132 Capital Asset Statistics 133 Housing Units Managed 134 Housing Units Assisted 135 Conduit Debt Outstanding 136

25 Introductory Section

26 27 February 25, 2021

To the Board of Commissioners of the Dakota County Community Development Agency and other interested parties:

We are pleased to present the Comprehensive Annual Financial Report (CAFR) for the Dakota County Community Development Agency (CDA) for the fiscal year ended June 30, 2020. This report was intended to meet the CDA’s state and federal reporting requirements. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that has been established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective of this framework is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements.

RSM US LLP, a licensed certified public accounting firm has issued an unmodified “clean” opinion on the CDA’s financial statements for the year ended June 30, 2020. The independent auditor’s report is located at the front of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

Profile of the Government The CDA was established as the Dakota County Housing and Redevelopment Authority (HRA) in 1971 pursuant to special Minnesota legislation. The CDA is a special-purpose unit of local government with the express limited purpose of serving the citizens of Dakota County, Minnesota (the County) through the administration of affordable housing and community development programs. Located south of Minneapolis and St. Paul, Dakota County has an area of 587 square miles and includes 13 townships, and 21 full and fractional incorporated municipalities. The 2019 population of the County was 429,021, making it the third most populous county in the State. The County is also one of the seven counties comprising the Twin Cities metropolitan area.

The CDA operates under an eight-member Board of Commissioners. Seven Commissioners represent districts within the County and one is an at-large Commissioner. All CDA Commissioners are appointed by the Board of Commissioners of Dakota County. Once appointed, the Board of Commissioners exercises all oversight responsibilities including but not limited to matters of personnel, management, finance, and budget. The Board is also responsible for the hiring of the CDA’s Executive Director, whose responsibility it is to carry out policies established by the Board, overseeing the day-to-day operations of the government, and hiring the heads of the various departments.

The CDA is considered to be a discretely presented component unit of Dakota County, Minnesota, as the Dakota County Board of Commissioners appoints the CDA’s Board of Commissioners and the County has a potential financial obligation relating to its general obligation pledge on $74,790,000 of outstanding housing development bonds issued by the CDA to finance the construction of senior housing developments. These bonds are also secured by the pooled rent receipts of the underlying developments and by other pledged revenue sources, including the CDA’s property tax levy. The County has never incurred a financial obligation on these bond issues and the rents, and other revenue sources that secure these bonds are considered sufficient to meet current and future debt service payments.

28 Various potential component units were evaluated to determine whether they should be reported in the CDA’s financial report. A component unit was considered part of the CDA’s reporting entity when it was concluded that the CDA was financially accountable for the entity or the nature and significance of the relationship between the CDA and the entity was such that exclusion would cause the CDA’s financial statements to be misleading or incomplete. The CDA has one blended component unit, the Dakota County Workforce Housing LLC which was created in 2012. The CDA is the sole member and governing body of the LLC. The CDA is also the general partner and the managing agent in several limited partnerships that were created to construct and operate family housing townhome developments. These partnerships are presented as discretely presented component units. Separate financial statements for these discretely presented component units can be obtained by contacting the Finance Director of the Dakota County Community Development Agency, 1228 Town Centre Drive, Eagan, Minnesota 55123.

Budgetary Controls The CDA Board of Commissioners adopts an annual operating budget at the program level. The annual operating budget includes all programs and related activities other than those that account for certain Federal and State grants that have grant periods that do not coincide with the CDA’s fiscal year or that run across multiple fiscal years. Those programs and related activities include the CDBG, HOME, MHFA, Weatherization, NSP, Homeownership Counseling and ESG grants. For these excluded programs, the program budget and grant contract provide the necessary control over the expenditure of these funds.

Factors Affecting Financial Condition Federal Funding. Federal funding is, and has been the CDA’s single largest revenue source. Most of this funding is from a small number of on-going affordable housing and community development programs that are funded by the U.S. Department of Housing and Urban Development (HUD). For the fiscal year ended June 30, 2020, federal funding increased by $1,045,747 to $27,999,324 or approximately 41 percent of all CDA operating revenue compared to $26,953,577 and 42 percent of all CDA revenue for the previous fiscal year ended June 30, 2019.

The largest of these on-going federal programs is the Housing Choice Vouchers program. This program received $22,785,606 during the fiscal year ended June 30, 2020 which represented 81% of all federal funding received during the year compared to $21,006,063 and 78% during the fiscal year ended June 30, 2019. The increase in dollars is primarily related to inflationary increases in the rental market. Representing a significant portion of all CDA operating revenue, these federal programs have a material impact on the CDA’s financial condition. Funding for these programs is significantly affected by Congressional legislation and federal budget deficits.

Bond-Financed Housing. Since 1990, the CDA has constructed a total of twenty-nine senior apartment buildings including two mixed-use buildings (residential and commercial combined) in eleven different cities throughout Dakota County. These housing developments provide 1,731 units of locally-financed senior housing in the County. At June 30, 2020, this bond-financed housing was the CDA’s largest rental housing program and accounted for 39 percent of total CDA assets, and 26 percent of total CDA net position. This program has allowed the CDA to expand affordable housing opportunities for seniors in Dakota County while at the same time allowing the CDA to become less dependent on the federal government for funding. With an occupancy rate of over 98% and waiting lists with average wait time of six to eighteen months, there is, and should continue to be, strong demand for bond-financed housing within the County.

Long-term Financial Planning / Major Initiatives Bond-Financed Housing. In 1989, the Board of Commissioners embarked on a plan to develop affordable senior housing throughout Dakota County. This plan, called the Senior Housing Capital Improvement Plan (CIP) detailed the locations of future senior buildings, the order of construction, and the means for financing these developments. The CDA fully implemented the first two phases of this plan with the construction of 1,135 units in 20 buildings throughout the County. In 2008, the CDA began implementation of the third phase of the CIP which called for the development of 10 additional buildings. With the completion of the ninth building in the third phase of the CIP, the Argonne Hills development in the City of Lakeville, the CDA has completed 596 units under phase three and increased the total number of units developed to 1,731.

29 The CDA does not have any near-term plans for constructing additional senior housing but on September 24, 2020, the agency did issue bonds for a 54-unit workforce housing development for singles in the City of West St. Paul which will be the tenth building under phase three. This will be the first bond-financed workforce housing development.

Public Housing. At June 30, 2020, the CDA had 323 units of Public Housing of which 64 are scattered site single family and 56 are scattered site duplexes (28 duplex properties). The CDA applied to HUD for Section 18 Demolition/Disposal of the scattered site and duplex properties to reposition our affordable housing portfolio in order to create a more financially sustainable model to meet our mission. On August 1, 2020, the CDA closed on this Section 18 transaction and moved 120 scattered site units from the Public Housing program to the DCCDA Section 18 LLC. Our long-term plan is, to the extent necessary, replace these properties with more unit concentrated townhome developments which is more financially sustainable.

Dakota County Workforce Housing LLC. In 2012, the Board of Commissioners established the Dakota County Workforce Housing LLC (LLC) for the purpose of owning and operating multiple townhome projects that had been developed through various limited partnerships. The LLC is reported as a blended component unit of the CDA. Since 2012, as partnerships have been dissolved, all the assets, liabilities and net position had been transferred to the LLC. During the fiscal year ended June 30, 2020, Burnsville HOC Family Housing Limited Partnership and the Eagan Cedar Family Housing Limited Partnership were dissolved and merged into the LLC. With these two properties, twelve partnerships have been dissolved and merged into the LLC.

Discretely Presented Component Units. At June 30, 2020, the CDA has developed 847 units of family housing at twenty-six townhome developments owned by twenty-five different partnerships with private investors utilizing the federal low-income housing tax credit program. Twelve of these partnerships representing twelve townhome developments and 364 units have been dissolved and merged into the Dakota County Workforce Housing LLC. The CDA is the General Partner and Managing Agent in fourteen town home developments owned by thirteen partnerships representing a total of 483 units.

Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the CDA for its comprehensive annual financial report for the fiscal year ended June 30, 2019. This was the eighteenth consecutive year that the CDA has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

The preparation of this report would not have been possible without the efficient and dedicated service of the entire staff of the Finance department. We wish to thank all government departments for their assistance in providing the data necessary to prepare this report. Credit also is due to the Board of Commissioners for their unfailing support for maintaining the highest standards of professionalism in the management of the CDA’s finances.

Respectfully submitted,

Tony Schertler Executive Director

30 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting

Presented to Dakota County Community Development Agency, Minnesota

For its Comprehensive Annual Financial Report For the Fiscal Year Ended

June 30, 2019

Executive Director/CEO

31 Organizational Chart

Board of Commissioners

Executive Director Administration

Housing Property Finance Assistance Management

Community Housing & Economic Development Development

List of Appointed Officials

Board of Commissioners June 30, 2020

Name District Term Expires

Mike Slavik District 1 January 2021

Kathleen Gaylord District 2 January 2022

Thomas A. Egan District 3 January 2022

Joe Atkins District 4 January 2023

Liz Workman District 5 January 2023

Mary Liz Holberg District 6 January 2023

Chris Gerlach District 7 January 2021

Tina Cummings At Large July 2023

33 Financial Section

34 35 Independent Auditor’s Report

Board of Commissioners Dakota County Community Development Agency

Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities and the aggregate discretely presented component units of Dakota County Community Development Agency (the Agency), a component unit of Dakota County, Minnesota, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of the aggregate discretely presented component units as of and for the year ended December 31, 2019. Those statements were audited by other auditors whose reports thereon have been furnished to us, and our opinions, insofar as it relates to the amounts included for such component units, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of the discretely presented component units were not audited in accordance with Government Auditing Standards.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

36 Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of the business-type activities and the aggregate discretely presented component units of Dakota County Community Development Agency, a component unit of Dakota County, Minnesota, as of June 30, 2020, and the respective changes in financial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Agency’s basic financial statements. The financial data schedules as listed in the table of contents, and other information, such as the introductory and statistical sections, are presented for the purposes of additional analysis and are not a required part of the basic financial statements.

The financial data schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements, or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the financial data schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections, as listed in the table of contents, have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 25, 2021, on our consideration of the Agency’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Agency’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Agency’s internal control over financial reporting and compliance.

Minneapolis, Minnesota February 25, 2021

Management’s Discussion and Analysis

As management of the Dakota County Community Development Agency, (CDA) a component unit of Dakota County, Minnesota, we offer readers of the CDA’s financial statements this narrative overview and analysis of the financial activities of the government for the fiscal year ended June 30, 2020.

We encourage readers to consider the information presented here in conjunction with the additional information that we have furnished in our letter of transmittal, which can be found on pages 3‐5 of this report.

Financial Highlights ● The assets and deferred outflows of resources of the CDA exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $312,429,748 (net position). This net position is comprised of the following components: o $102,120,878 (net investment in capital assets) represents the CDA’s investments in land, structures, and equipment, less any capital related debt and is not available for future spending. o $75,268,971 (restricted) is restricted as to use by grant agreements, contracts, and laws and regulations, and can only be used for specific purposes. o $135,039,899 (unrestricted) may be used to meet the CDA’s ongoing obligations to citizens and creditors. ● The CDA’s total net position increased by $14,268,069. This increase is due to strong operating results including, the use of one‐time revenues and grants, taxes and tax increment to invest in long‐term assets or reduce long‐term debt rather than making fiscal period expenses. Included in the increase in net position is: o $2,559,561 of notes receivable funded by current year grant and tax revenues, and o $3,460,000 of long‐term debt that was retired using current year tax revenues. ● The CDA’s total outstanding long‐term debt decreased by $1,743,304 during the current fiscal year. $3,460,000 of this decrease related to scheduled bond principal retirements and $285,411 from the amortization of bond premiums. These bonds were used to finance the construction of senior housing developments. In addition, notes payable increased by $2,002,107 due to the merger of two limited partnerships. ● Total operating revenue increased by $4,048,275. Most of this increase is related to higher rental income in the CDA’s housing developments and the timing of grant draws and other one‐time revenues. ● Capital contributions of $3,944,374 relate to the dissolution of limited partnerships (discretely presented component units) and the transfer of their assets, liabilities and net position transferred to the Dakota County Workforce Housing LLC (blended component unit). Two partnerships were merged into the LLC in the current year, the Burnsville HOC Family Housing Limited Partnership and the Eagan Cedar Family Housing Limited Partnership.

Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the CDA’s basic financial statements. The CDA’s basic financial statements are comprised of two components: 1) the basic financial statements, and 2) notes to the financial statements that provide additional disclosure of some of the information in the basic financial statements.

The statement of net position presents financial information on the CDA’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Assets and liabilities are presented in order of liquidity and are classified as “current” (convertible to cash within one year) and “noncurrent”. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the CDA is improving or deteriorating.

The statement of revenues, expenses, and changes in net position shows how the CDA’s net position changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Therefore, revenues and expenses are reported for some items that will only result in cash flows in future years.

The statement of cash flows reports how the CDA’s cash was used in, and provided by, its operating, noncapital financing, capital and related financing, and investing activities during the periods reported. The net of these activities is added to the beginning year cash balance to reconcile to the cash balances at June 30, 2020. The CDA uses the direct method of presenting cash flows, which includes a reconciliation of operating activities to operating income. These statements provide answers to the questions as where did cash come from, how was cash used, and what was the change in cash during the year.

The notes to the basic financial statements provide financial statement disclosures that are an integral part of the basic financial statements. Such disclosures are essential to a comprehensive understanding of the information provided in the basic financial statements.

Financial Analysis

Net Position

The total assets of the CDA at June 30, 2020 and 2019 were $422,602,189 and $404,925,286, respectively. Current and other assets include cash, investments, receivables including notes receivable, restricted assets and prepaid items. As described in Note G on page 47, restricted assets of $16,766,595 is primarily comprised of $5,238,309 of debt proceeds held by trustees and $10,634,185 in reserves required by various debt agreements.

Total liabilities of the CDA at June 30, 2020 and 2019, which are segregated between current and noncurrent portions, amounted to $98,850,888 and $99,982,995, respectively. Current liabilities primarily include accounts payable, security deposits, accrued interest payable and the current portion of long‐term debt. A liability is considered to be current if it is due within one year. Long‐term liabilities primarily include notes and bonds payable and deferred interest on these obligations. Liabilities decreased primarily due to the retirement of housing development bonds.

Net position represents the equity of the CDA after liabilities are subtracted from assets. Net position is divided into three major categories. The first category, invested in capital assets, shows the CDA’s equity

39 in land, land improvements, buildings and furniture and equipment, net of related outstanding debt. The second category, restricted net position, has external limitations on the way these assets can be used. The last category, unrestricted net position, is available to be used for any lawful and prudent CDA purpose.

The total net position of the CDA increased by $14,268,069 during the year ended June 30, 2020, not including the capital contributions from mergers of $3,944,374. This increase indicates that the CDA’s financial position improved during the current year. This increase was primarily due to strong operating results including, the use of one‐time revenues and grants, taxes and tax increment to invest in long‐term assets or reduce long‐term debt rather than making fiscal period expenses. Included in the increase in net position is $2,559,561 of notes receivable funded by grant and tax revenues, and $3,460,000 of long‐ term debt that was retired using current year tax revenues.

Condensed Statement of Net Position

June 30 2020 2019 Current and other assets $ 235,774,110 $ 221,495,256 Capital assets 186,828,079 183,430,030 Total assets 422,602,189 404,925,286

Deferred outflows of resources 11,753 37,708

Long‐term liabilities outstanding 88,726,422 90,074,286 Other liabilities 10,124,466 9,908,709 Total liabilities 98,850,888 99,982,995

Deferred inflows of resources 11,333,306 10,762,694

Net position: Net investment in capital assets 102,120,878 97,768,709 Restricted 75,268,971 71,968,446 Unrestricted 135,039,899 124,480,150 Total net position $ 312,429,748 $ 294,217,305

Revenues, Expenses, and Changes in Net Position Total operating revenue increased by $4,048,275. Most of this increase related to higher rental income in the CDA’s housing developments including the merger of two additional housing developments that had been reported as discretely presented component units and the timing of grant draws in the HUD‐ funded CDBG and HOME programs and certain one‐time revenues that were received in the prior fiscal year. Operating expenses were only slightly higher year over year. Capital contributions are primarily related to the dissolution of limited partnerships (discretely presented component units) and the transfer of their assets, liabilities and net position transferred to the Dakota County Workforce Housing LLC (blended component unit). In the current year, the Burnsville HOC Family Housing Limited Partnership

and the Eagan Cedar Family Housing Limited Partnership were merged into the LLC. In the prior year, no partnerships were merged into the LLC.

Condensed Statement of Revenues, Expenses, and Changes in Net Position

June 30 2020 2019 Operating revenues: Total tenant rental $ 20,643,740 $ 19,506,696 Operating subsidies and grants 29,640,974 28,488,699 Taxes and tax increments 10,312,761 9,532,762 Other 7,518,831 6,539,874 Total operating revenues 68,116,306 64,068,031

Operating expenses: Administrative 9,000,902 8,482,269 Tenant services 215,784 200,567 Utilities 1,757,000 1,694,485 Ordinary maintenance 6,350,256 5,788,842 General expense 5,933,069 8,665,611 Nonroutine maintenance 864,339 1,012,674 Housing assistance payments 22,151,499 20,126,405 Depreciation 6,515,518 6,320,814 Total operating expenses 52,788,367 52,291,667 Operating income (loss) 15,327,939 11,776,364

Nonoperating revenues (expenses): Investment earnings 1,730,992 2,559,754 Interest expense (3,136,626) (3,264,941) Gain (loss) on disposal of capital assets 345,764 (161,819) Total nonoperating revenues (expenses) (1,059,870) (867,006) Income (loss) before contributions 14,268,069 10,909,358 Capital contributions 3,944,374 ‐ Change in net position 18,212,443 10,909,358 Total net position ‐ beginning 294,217,305 283,307,947 Total net position ‐ ending $ 312,429,748 $ 294,217,305

Capital Assets and Debt Administration Capital assets. The CDA’s investment in capital assets as of June 30, 2020, amounts to $186,828,079 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, buildings, furniture and equipment, and construction projects in progress. The CDA did not initiate the construction of any new buildings during the fiscal year and the decrease during the current year is primarily related to depreciation expense.

The following table presents the CDA’s capital assets, net of accumulated depreciation, at June 30, 2020 and 2019:

June 30 2020 2019 Land $ 33,677,048 $ 32,470,223 Land improvements 1,386,507 1,409,171 Building 150,761,958 148,702,147 Furniture and equipment 761,460 848,489 Construction in progress 241,106 ‐ Total capital assets, net $ 186,828,079 $ 183,430,030

Additional information on the CDA’s capital assets can be found in Note 2 on page 39 of this report.

Long‐term debt. At the end of the fiscal year, the CDA had debt outstanding of $92,316,158. All the bonds payable are comprised of debt obligations that are backed by the full faith and credit of Dakota County, Minnesota. At June 30, 2020, the County had a Aaa bond rating from Moody’s Investor Services and AA+ from Standard & Poor’s. These bonds are also secured by the pooled gross rent receipts and other operating revenues of the underlying senior housing developments and by pledged tax levy and tax increment revenues.

Major debt events during the fiscal year include the following: ● $3,460,000 of bond principal was retired during the fiscal year.

June 30 2020 2019 Notes payable $ 13,227,128 $ 11,225,021 Bonds payable 77,089,030 80,834,441 Total debt outstanding $ 90,316,158 $ 92,059,462

Additional information regarding the CDA’s long‐term debt can be found in Note 2 beginning on page 39 of this report.

Economic Factors and Next Year’s Budgets Federal appropriation levels will continue to have a major impact on the Authority’s economic position. The CDA received $27,999,324 in federal funding for the fiscal year ended June 30, 2020. Funding for the CDA’s federal programs is significantly affected by Congressional legislation and the federal budget deficits. If cuts to federal funding are enacted, it may be necessary to further reduce costs and/or services.

Requests for Information This financial report is designed to provide a general overview of the CDA’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director of the Dakota County Community Development Agency, 1228 Town Centre Drive, Eagan, Minnesota 55123.

42 43 Basic Financial Statements

44 45 Dakota County Community Development Agency Statement of Net Position June 30, 2020

Discretely Presented Primary Component Government Units Assets and Deferred Outflows of Resources Current assets: Cash and cash equivalents $ 118,749,228 $ 1,859,393 Investments 17,586,201 ‐ Accounts receivable ‐ tenants 173,162 29,131 Accounts receivable ‐ other 1,477,501 19,109 Taxes receivable 5,493,172 ‐ Due from other governments 2,138,222 191,806 Interest receivable ‐ investments 36,503 ‐ Notes and mortgages receivable, current portion 515,031 ‐ Prepaid items 783,132 234,482 Restricted cash and cash equivalents 16,766,595 12,901,443 Total current assets 163,718,747 15,235,364

Noncurrent assets: Accrued interest receivable ‐ notes and mortgages receivable 2,373,283 ‐ Notes and mortgages receivable, net of allowance for loan losses 62,227,116 ‐ Investments in component units 7,192,608 ‐ Other assets 262,356 382,585 Capital assets not being depreciated: Land 33,677,048 12,548,605 Construction in progress 241,106 ‐ Capital assets (net of accumulated depreciation): Land improvements 1,386,507 2,906,273 Buildings 150,761,958 70,362,069 Furniture and equipment 761,460 185,055 Total noncurrent assets 258,883,442 86,384,587 Total assets 422,602,189 101,619,951

Deferred outflow of resources 11,753 ‐ Total assets and deferred outflows of resources $ 422,613,942 $ 101,619,951

The notes to the financial statements are an integral part of this statement.

46 Dakota County Community Development Agency Statement of Net Position June 30, 2020

Discretely Presented Primary Component Government Units Liabilities, Deferred Inflows of Resources and Net Position Current liabilities: Accounts payable $ 1,291,804 $ 167,232 Accrued payroll and benefits 364,318 ‐ Other current liabilities 253,275 360,747 Security deposits payable 1,576,690 394,043 Due to other governments 590,791 219,240 Accrued interest payable 1,618,835 ‐ Accrued compensated absences 560,377 ‐ Current portion of long‐term debt 3,536,737 1,221,454 Unearned revenue 331,639 26,441 Total current liabilities 10,124,466 2,389,157

Noncurrent liabilities Accrued compensated absences 551,292 ‐ Accrued interest payable 1,395,709 1,861,005 Notes payable, net of current portion 13,180,391 33,298,149 Bonds payable, net of current portion 73,599,030 ‐ Total noncurrent liabilities 88,726,422 35,159,154 Total liabilities 98,850,888 37,548,311

Deferred inflow of resources 11,333,306 ‐ Total liabilities and deferred inflows of resources 110,184,194 37,548,311

Net position: Net investment in capital assets 102,120,878 51,482,399 Restricted for loans 44,875,321 ‐ Restricted for capital projects 16,405,417 12,497,449 Restricted for federal grants 1,400,630 ‐ Restricted for tax increment 8,381,584 ‐ Restricted for HOPE program 4,206,019 ‐ Unrestricted 135,039,899 91,792 Total net position 312,429,748 64,071,640 Total liabilities, deferred inflows of resources and net position$ 422,613,942 $ 101,619,951

The notes to the financial statements are an integral part of this statement.

47 Dakota County Community Development Agency Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2020

Discretely Presented Primary Component Government Units Operating revenues: Dwelling rents $ 20,643,740 $ 4,730,980 Operating subsidies and grants 29,640,974 ‐ Taxes and tax increments 10,312,761 ‐ Other 7,518,831 158,611 Total revenues 68,116,306 4,889,591

Operating expenses: Administrative 9,000,902 879,487 Tenant services 215,784 ‐ Utilities 1,757,000 280,750 Ordinary maintenance and operation 6,350,256 1,225,417 General expense 5,933,069 1,088,720 Nonroutine maintenance 864,339 198,148 Housing assistance payments 22,151,499 ‐ Depreciation 6,515,518 2,348,940 Total operating expenses 52,788,367 6,021,462 Operating income (loss) 15,327,939 (1,131,871)

Nonoperating revenues (expenses): Investment earnings 1,730,992 2,159 Interest expense (3,136,626) (637,028) Amortization expense ‐ (60,357) Gain (loss) on disposal of capital assets 345,764 ‐ Total nonoperating revenues (expenses) (1,059,870) (695,226) Income (loss) before contributions 14,268,069 (1,827,097)

Capital contributions 3,944,374 ‐ Change in net position 18,212,443 (1,827,097) Total net position ‐ beginning 294,217,305 65,898,737 Total net position ‐ ending $ 312,429,748 $ 64,071,640

The notes to the financial statements are an integral part of this statement.

48 Dakota County Community Development Agency Statement of Cash Flows Year Ended June 30, 2020

Primary Government Cash flows From operating activities: Cash received from tenants and other revenue $ 71,478,665 Cash payments to employees (8,765,549) Other payments for operations (37,209,742) Net cash provided (used) by operating activities 25,503,374

Cash flows from capital and related financing activities: Acquisition and construction of capital assets (2,654,356) Principal paid on capital debt (3,460,000) Interest paid on capital debt (5,752,760) Net cash provided (used) by capital and related (11,867,116) financing activities

Cash flows from investing activities: Loan repayments received 4,035,133 Disbursement of notes receivable (2,559,561) Sale of investments 13,556,273 Investment in component units 163,867 Interest received 1,730,992 Net cash provided (used) by investing activities 16,926,704 Net increase (decrease) in cash and cash equivalents 30,562,962 Cash and cash equivalents, beginning of year 88,186,266 Cash and cash equivalents, end of year $ 118,749,228

The notes to the financial statements are an integral part of this statement.

49 Dakota County Community Development Agency Statement of Cash Flows Year Ended June 30, 2020

Primary Government Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 15,327,939 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 6,515,518 Change in accounts receivable 2,637,772 Change in prepaid expenses 55,863 Change in accounts payable 89,311 Change in compensated absences 97,506 Change in due to other governments 54,878 Change in unearned revenue 724,587 Total adjustments 10,175,435 Net cash provided (used) by operating activities $ 25,503,374

Non Cash Transactions: Merger of Limited Partnerships $ 1,656,770

The notes to the financial statements are an integral part of this statement.

50 51

Notes to the Financial Statements June 30, 2020

Note 1. Summary of Significant Accounting Policies

The basic financial statements of the Dakota County Community Development Agency (CDA) have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard‐ setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant accounting policies of the CDA.

A. Primary Government The Dakota County Community Development Agency (CDA) is a local unit of government that was created in 1971 by a special act of the Minnesota State Legislature, Minnesota Statute 383D.41. The CDA was originally named the Dakota County Housing and Redevelopment Authority (HRA), with all the powers and duties under of a housing and redevelopment authority. In 1999, Statute 383D.41 was revised to allow the HRA to assume certain economic development authority powers granted by Dakota County, Minnesota (County). After December 31, 1999, the HRA became known as the CDA. The CDA is governed by an eight‐member Board of Commissioners which are appointed by the County’s Board of Commissioners. The CDA is not financially dependent on the County but the County has provided its general obligation pledge on CDA bond issues that are used to finance the construction of senior housing developments. The County includes the CDA as a discretely presented component unit in its financial statements.

B. Component Units Component units are classified as either blended component units or discretely presented component units.

Blended Component Unit. The CDA established a legally separate entity, the Dakota County CDA Workforce Housing LLC (LLC) in 2012 with the CDA being the sole member and governing body for the purpose of owning and operating multiple workforce housing townhome projects that were developed by the CDA through various limited partnerships. As of June 30, 2020, twelve limited partnerships have been dissolved and the assets, liabilities and net position transferred to the LLC. These transfers were treated as mergers in accordance with GASB Statement No. 69, Government Combinations and Disposals of Government Operations. There were two mergers recorded in the fiscal year ended June 30, 2020 as described in Note 2.H. on page 48.

Discretely Presented Component Units. The CDA is the general partner and managing agent in several legally separate limited partnerships that were formed to construct and operate workforce housing townhome developments throughout Dakota County and financed, in part, with low‐income housing tax credits. Contributions and distributions, if any, are recorded as direct adjustments to the investment in partnerships on the statement of net position. Any income or loss from the operation of these limited partnerships is also recorded as a direct adjustment to the investment in partnerships based on the CDA’s ownership percentage, which is .01%. As general partner and managing agent, the CDA possesses

52 essentially all authority over day‐to‐day operations. The CDA is also financially accountable for the limited partnerships as it is obligated to fund operating deficits pursuant to the limited partnership agreements and provide a guaranty of the tax credits as described in Note 1.D. The CDA also has several outstanding loans to the limited partnerships. The following entities are reported in the financial statements as discretely presented component units:

● Burnsville HOC Family Housing Limited Partnership was formed in 2001 to construct and operate a 34‐unit residential townhome development known as Heart of the City Family Townhomes located in Burnsville, Minnesota. The development was placed in 2003. Annual profits, losses, tax credits and available cash flow are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Eagan Cedar Family Housing Limited Partnership was formed in 2001 to construct and operate a 34‐unit residential townhome development known as Erin Place Townhomes, located in Eagan, Minnesota. The development was completed in 2004. Annual profits, losses, tax credits and available cash from operations are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Lakeville Downtown Family Housing Limited Partnership was formed in 2001 to construct and operates a 40‐unit residential townhome development, known as Prairie Crossing, located in Lakeville, Minnesota. The development was completed in 2005. In general, income, losses, tax credits and available cash from operations, other than from the sale of the Project, are allocated 99.99% to the Limited Partner and .01% to the General Partner. A detailed description of the allocations can be found in the Partnership Agreement.

● Lafayette Family Housing Limited Partnership was formed in 2003 to construct and operate a 30‐ unit residential townhome development known as Lafayette Townhomes located in Inver Grove Heights, Minnesota. The development was completed in 2006. Annual profit, losses, tax credits and available cash from operations are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Hastings West Village Family Housing Limited Partnership was formed in 2004 to construct and operate a 21‐unit residential townhome complex known as West Village Townhomes located in Hastings, Minnesota. The development was completed in June 2007. Annual profits, losses, tax credits and available cash flow are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Rosemount Family Housing Limited Partnership was formed in 1999 to construct and operate a 32‐unit residential townhome development, known as Carbury Hills, located in Rosemount, Minnesota. The development was completed in 2008. Annual profits, losses, tax credits and available cash from operations are allocated 99.99% to the Limited Partner and .01% to the

53 General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Twin Ponds Family Housing Limited Partnership was formed in 2006 to construct and operate a 25‐unit residential townhome development, known as Twin Ponds Family Townhomes, located in Farmington, Minnesota. The development was completed in 2009. Annual profits, losses, tax credits and available cash flow are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● The Meadowlark Family Housing Limited Partnership was formed in 2004 to construct and operate a 40‐unit townhome development, known as Meadowlark Family Townhomes, located in Lakeville, Minnesota. The development was completed in 2010. Annual profits, losses, tax credits and available cash flow are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Apple Valley East Family Housing Limited Partnership was formed in 2009 to construct and operate a 45‐unit townhome development known as the Quarry View Townhomes, located in Apple Valley, Minnesota. The development was placed in service in 2011. Annual profits, losses, tax credits and available cash flow are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Twin Ponds Phase II Family Housing Limited Partnership was formed in 2008 to construct and operates a 26‐unit townhome development known as Twin Ponds Phase II Family Townhomes, located in Farmington, Minnesota. The development was placed in service in 2012. Annual profits, losses, tax credits and available cash flow are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Eagan Northwood Family Housing Limited Partnership was formed in 2008 to construct and operate a 47‐unit townhome development known as Northwood Family Townhomes, located in Eagan, Minnesota. The development was completed in 2013. Annual profits, losses, tax credits and available cash flow are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Inver Hills and Riverview Ridge Family Housing Limited Partnership was formed to construct and operate a 27‐unit townhome development known as Riverview Ridge Family Townhomes located in Eagan, Minnesota and a 24‐unit townhome complex known as Inver Hills Family Townhomes located in Inver Grove Heights, Minnesota. Both developments were placed in service in 2014. Annual profits, losses, tax credits and available cash flow, other than from the sale of the Project, are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Lakeshore Workforce Housing Limited Partnership was formed in 2013 to construct and operate a 50‐unit townhome development known as Lakeshore Townhomes located in Eagan, Minnesota. The development was completed in 2015. Annual profits, losses, tax credits and available cash flow, other than from the sale of the Project, are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Keystone Crossing Workforce Housing Limited Partnership was formed in 2015 to construct and operate a 36‐unit townhome development known as Keystone Crossing located in Lakeville, Minnesota. The development was completed in 2017. Annual profits, losses, tax credits and available cashflow are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

● Rosemount II Limited Partnership was formed in 2016 to construct and operate a 40‐unit townhome development known as Prestwick Townhomes in Rosemount, Minnesota. The development was completed in 2020. Annual profits, losses, tax credits and available cashflow are allocated 99.99% to the Limited Partner and .01% to the General Partner. Profits and losses arising from capital transactions are allocated as set forth in the Partnership Agreement.

All discretely presented component units have a December 31st year‐end. The discretely presented component unit financial statements included in the in the financial statements are for the fiscal year ended December 31, 2019 except for the Burnsville HOC Family Housing Limited Partnership and the Eagan Cedar Family Housing Limited Partnership. These two partnerships were merged into the Dakota County CDA Workforce Housing LLC during the year (see note H on page 48) and therefore report a shortened six‐month fiscal period that ended June 30, 2019. Separate financial statements for each limited partnership can be obtained by contacting the Finance Director of the Dakota County Community Development Agency, 1228 Town Centre Drive, Eagan, Minnesota 55123.

C. Basis of Presentation The financial statements report information of the CDA (primary government) and it’s discretely presented component units. For financial reporting purposes, the CDA reports all its operations and activities as a single business activity reported in a single enterprise fund.

D. Basis of Presentation and Measurement Focus and Basis of Accounting The CDA’s financial statements are accounted for using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Dwelling rents and other charges for services, the current portion of special assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Expenditure‐driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met.

E. Assets, Liabilities, Deferred Outflows/inflows of Resources, and Net Position

1. Deposits and investments The CDA’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short‐ term investments with original maturities of three months or less from the date of acquisition that are not specifically restricted as to use.

The CDA’s investment policy requires compliance with State statutes which allow investment in obligations guaranteed by the U.S. Treasury or its agencies, mutual funds, general obligations of state and local governments, bankers’ acceptances, commercial paper, repurchase agreements, guaranteed investment contracts, and the Minnesota Municipal Money Market Fund (4M Fund) which is an external investment pool not registered with the Securities and Exchange Commission (SEC) that follows the same regulatory rules of the SEC under rule 2a7. Oversight of the 4M Fund is provided by the Board of Directors of the League of Minnesota Cities and investments are restricted to those authorized by Minnesota State Statutes. All investments except money‐market funds and the Minnesota Municipal Money Market Fund (4M Fund) are reported at fair value based on quoted market prices. Money‐market funds and the 4M Fund are reported at amortized cost.

2. Prepaid items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.

3. Restricted assets Certain proceeds of the CDA’s bond issues, as well as certain resources set aside for their repayment and certain resources limited by applicable bond and loan agreements are classified as restricted assets on the statement of net position. Restricted assets also include certain escrow accounts and amounts restricted by grant and other external agreements. For the purpose of the statement of cash flows, restricted cash equivalents are treated the same as investments.

4. Capital assets Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life of two or more years. Such assets are reported at historical cost or estimated historical cost if purchased or constructed. Donated assets are reported at their acquisition value at the date of donation. Land and construction in progress are not depreciated. The other capital assets of the government are depreciated using the straight‐line method over the following estimated useful lives:

Land improvements 15 Years Buildings and improvements 10‐40 Years Furniture and equipment 3‐10 Years

5. Investment in Component Units The initial equity interest in component units is reported at cost. Contributions and distributions, if any, and the CDA’s share of any income or loss from operations are recorded as direct adjustments to investment in component units on the statement of net position.

6. Deferred Outflows/inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expenses/expenditures) until then. The CDA has only one type of item that qualifies for reporting in this category, it is the deferred charge on refunding reported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The CDA has only one type of item, which qualifies for reporting in this category, it is the amount of property taxes and special assessments levied in the current year to be used to finance the subsequent year’s budget.

7. Classification of Net Position Net position is classified into the following categories:

Net investment in capital assets – the amount of net position representing capital assets net of accumulated depreciation and reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets.

Restricted net position – the amount of net position for which external restrictions have been imposed by creditors, grantors, contributors, or laws or regulations or other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted net position – the amount of net position that does not meet the definition of restricted or net investment in capital assets.

8. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the basic financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the CDA’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

F. Revenues and Expenditures/Expenses

1. Property Taxes The property tax levy is certified in December of each year to finance the budgeted expenditures of the subsequent fiscal year beginning on July 1st. The levy becomes a lien on January 1 on property values assessed as of the prior year. The tax levy is divided into two billings: the first half is due May

57 15th and the second half is due on October 15th. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. Taxes which remain unpaid by property owners at December 31 are considered delinquent. The County bills the property taxes and remits these funds to the CDA in July and December of each year. Because taxes are levied for subsequent periods, such amounts are reported as a deferred inflow of resources

2. Compensated Absences Under the CDA’s personnel policy, employees are granted flex leave ranging between 20 to 38 days per year based on length of service. Flex leave may be accumulated and up to 1,000 hours carried over from one calendar year to the next. Unused flex leave is paid to employees upon termination. Flex leave is accrued as earned.

3. Operating and Nonoperating Revenues and Expenses Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund’s principal ongoing operations. The principal operating revenues of the CDA are charges to customers for services, grant and tax revenue. Operating expenses include the cost of sales and services, administrative expenses, housing assistance payments and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

4. Use of Estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) require management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows, liabilities and deferred inflows, and the disclosure of contingent assets and liabilities, at the date of the financial statements, and the required amounts of revenue and expenses reported in the reporting period. Actual results could differ from these estimates.

Note 2. Detailed Notes

A. Deposits and Investments A reconciliation of the CDA’s total deposits, cash on hand, and investments to the basic financial statements is as follows:

Cash and cash equivalents $ 118,749,228 Investments 17,586,201 Restricted cash and cash equivalents 16,766,595 Total cash, cash equivalents and investments $ 153,102,024

Deposits $ 9,737,802 Petty cash 250 Investments 143,363,972 Total deposits and investments $ 153,102,024

Custodial Credit Risk – Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the CDA’s deposits may not be returned to it. The CDA follows Minnesota state statutes which require that all deposits including certificates of deposit with financial institutions be collateralized in an amount equal to 110 percent of the deposits in excess of FDIC insurance. At year end, all CDA’s deposits were adequately protected by pledged collateral and federal‐depository insurance.

B. Investments As of June 30, 2020, the CDA had the following investments:

Carrying Investment Maturities (in Years) Amount/ Less More Investment Type Fair Value Than 11‐5than 5 U.S. Government Agencies: Federal Farm Credit Banks $ 4,011,320 $ 4,011,320 Federal Home Loan Mortgage Corp. 9,024,921 ‐ 9,005,970 18,951 Federal National Mortgage Assoc. 3,167,372 ‐ 2,999,790 167,582 Government National Mortgage Assoc. 117,446 ‐ ‐ 117,446 Money market funds 41,764,219 41,764,219 ‐ ‐ 4M Fund 85,278,694 85,278,694 ‐ ‐ $ 143,363,972 $ 127,042,913 $ 16,017,080 $ 303,979

Interest Rate Risk. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the fair values of investments with longer maturities are more sensitive to changes in market interest rates. In accordance with its investment policy, the CDA manages its exposure to declines in fair values by limiting non‐bond reserve investment maturities to five years or less. The mortgage backed securities held by the CDA have maturities exceeding five years and were

59 obtained through the Board‐approved defeasance of several single‐family bond issues and are expected to be held until maturity.

Credit Risk. Generally, credit risk is the risk that an insurer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The CDA’s investment policy places no restrictions on credit risk other than requiring compliance with state Law. State Law does not limit investments in securities of U.S. Government Agencies including mortgage backed securities by credit quality. The local government investment pool and money market mutual funds are unrated. However, investments held by the local government investment pool do conform to state restrictions and the investments in money market mutual funds comply with state requirements for being rated in one of the highest two categories by a NRSRO. The money market funds include commercial paper investments which comply with state requirements to be rated in the highest quality category by two nationally recognized rating agencies and having maturities of 270 days or less.

Concentration of Credit Risk. The CDA places no limit on the amount that may be invested in any one issuer. At June 30, 2020, the CDA had more than five percent of its total investments with the Federal Home Loan Mortgage Association, money market funds and the 4M Fund.

Custodial Credit Risk – Investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the CDA will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At June 30, 2020, all investments are held by counterparties, are insured or registered, and are not exposed to custodial risk.

Fair value reporting. The CDA’s investments that are not recorded at amortized cost are recorded at fair value as of June 30, 2020. GASB Statement No. 72, Fair Value Measurement and Application, defines fair value as the price that would be received to sell an asset between market participants at the measure date. This statement establishes a hierarchy of valuation inputs based on the extent to which the inputs are observable in the market place.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following describes the hierarchy of inputs used to measure fair value and primary valuation methodologies used for financial instruments measured at fair value on a recurring basis:

Level 1: Investments whose values are based on quoted prices (unadjusted) for identical assets (liabilities) in active markets that a government can access at measurement date. Level 2: Investments with inputs, other than quoted prices included within Level 1, that are observable for an asset (liability), either directly or indirectly. Level 3: Investments classified as Level 3 have unobservable inputs for an asset (liability) and may require a degree of professional judgment.

At June 30, 2020, of the U.S. Government Agencies totaling $16,321,059 were classified as level 2 by a third party using either bid evaluations or a matrix‐based pricing technique. Bid evaluations are typically based on market quotations, yields, maturities, call features and ratings. Matrix pricing is used to value

60 securities based on the securities’ relationship to benchmark quoted prices. Money market funds and a local government investment pool of $41,764,219 and $85,278,694, respectively, were not subject to leveling as these investments were carried at amortized cost.

C. Notes Receivable The CDA has issued various notes to individuals, businesses, not‐for‐profits, governmental units and discretely presented component units. These notes are generally secured by liens on real and personal property and allowances for uncollectible loans are generally not recorded as such amounts are not expected to be material.

Notes receivable at June 30, 2020 consist of the following:

Loan Loan Description Balance Homebuyer loans $ 3,301,651 Homeowner rehab loans ‐ deferred 16,141,421 Discretely Presented Component Units: First mortgage 5,158,159 Other 13,722,471 Revolving 6,213 18,886,843 Multifamily loans: Deferred 13,308,235 Installment 8,276,792 21,585,027 Tenants 39,979 Supportive housing 2,767,192 Commercial 20,034 $ 62,742,147

Homebuyer Loans. Homebuyer loans assist qualified homebuyers in purchasing residential properties. The loan proceeds may be used for required down payment, closing costs or to buy down the first mortgage principal. Loans are repaid, without interest, when the home is sold, refinanced, or reach the end of the 30‐year first mortgage term.

Homeowner Rehabilitation Loans. Homeowner rehabilitation loans are made to assist qualified homeowners in making eligible repairs to their homes. Deferred loans are no interest loans with principal payable upon the sale or transfer of the property.

Discretely Presented Component Unit (DPCU) Loans. The CDA has provided various forms of financing to several limited partnership projects that are considered discretely presented component units. These loans have varying terms which are summarized as follows:

● $5,158,159 in first mortgage loans at interest rates ranging from 6 to 7 percent interest with principal and interest payable monthly.

● $13,722,471 in loans at interest rates ranging from 0 to 8 percent interest with interest paid annually or interest and principal deferred until maturity. ● $6,213 of unsecured revolving loans to finance the development and construction of new family townhome projects. The interest rates on these loans range from 0 to 7 percent with payment of principal and interest generally deferred until the partnership is able to secure permanent financing for the project.

The maturities on partnership loans range between 20 to 30 years except for bridge and revolving loans with no penalty for prepayment. Loans are secured by liens on the underlying property and all loans other than first mortgage loans are subordinated to other loans that exist on these partnership projects.

Tenants. The CDA enters into tenant repayment agreements for rent and other charges. These loans are zero percent interest with principal paid monthly.

Multifamily Loans. Multifamily loans provide financing for the acquisition, development and rehabilitation of affordable multifamily housing. Deferred loans are 0 to 4.91 percent interest loans with principal and interest payable upon the sale, transfer, refinancing or change in use of the property or the maturity date of the loan whichever comes first. Loan maturities range from 15 to 50 years depending on the source of funds. Installment loans consist of one 6.50 percent interest loan with principal and interest payable monthly and a final maturity of 2026 with the outstanding principal due in full upon the sale, transfer or refinancing of the property.

Supportive Housing. The CDA has provided six loans to support the construction of supportive housing properties; two in Apple Valley and one in Inver Grove Heights, Minnesota. These mortgage loans are secured by the underlying real estate and have the following terms:

o $71,177 at 6.5 percent interest with semi‐annual payments of interest and principal through February, 2022. o $147,600 at 1 percent interest with the payment of principal and interest deferred for 30 years from date of occupancy or 50 years if recertified for continued use. o $2,548,415 at 0‐1 percent interest with the payment of principal deferred until the sale, transfer, refinancing or change in use of the property or March 2060, whichever comes first.

Commercial. The CDA has entered into a loan with a commercial lease tenant. The loan is 4.0 percent interest with monthly payments of interest and principal through September 30, 2028.

62 D. Investment in Component Units As explained in Note 1.B., the CDA is the general partner and managing agent in several family housing limited partnerships (FHLP) that were formed to construct and operate family housing townhome complexes within Dakota County. These partnerships were financed, in part, using federal low‐income housing tax credits which place certain restrictions on rental rates and require tenants to qualify for occupancy based on income levels. The CDA’s investment in these partnerships are accounted for as equity investments. Capital contributions and distributions, if any, are recorded as direct adjustments to the investment in limited partnerships on the statement of net position. Any income or loss from the operation of these limited partnerships is also recorded as a direct adjustment to the investment in discretely presented component units based on the CDA’s ownership percentage.

Additional information on each of these limited partnerships is provided as follows:

Year Beginning Allocation of Ending Built Units Balance Additions Reductions Gain/(Loss) Balance Burnsville HOC FHLP 2003 34 221,167 ‐ 221,167 ‐ ‐ Eagan Cedar FHLP 2004 34 489,087 ‐ 489,087 ‐ ‐ Lakeville Downtown FHLP 2005 40 470,864 ‐ ‐ (7) 470,857 Lafayette FHLP 2006 30 934,759 ‐ ‐ (14) 934,745 Hastings West Village FHLP 2007 21 346,152 ‐ ‐ (11) 346,141 Rosemount FHLP 2008 32 753,568 ‐ ‐ (11) 753,557 Twin Ponds FHLP 2009 25 563,126 ‐ ‐ (7) 563,119 Meadowlark FHLP 2010 40 320,605 ‐ ‐ (12) 320,593 Apple Valley East FHLP 2011 45 1,384,423 ‐ ‐ (14) 1,384,409 Twin Ponds II FHLP 2012 26 355,780 ‐ ‐ (7) 355,773 Eagan Northwood FHLP 2013 47 376,666 ‐ ‐ (7) 376,659 Inver Hills/Riverview Rdg FH 2014 51 744,305 ‐ ‐ (17) 744,288 Lakeshore WHLP 2015 50 63,528 ‐ ‐ (19) 63,509 Keystone Crossing WHLP 2016 36 686,031 ‐ ‐ (20) 686,011 Rosemount II LP 2019 40 192,972 ‐ ‐ (25) 192,947 551$ 7,903,033 $ ‐ $ 710,254 $ (171) $ 7,192,608

As General Partner, the CDA has an obligation to provide funds for any development and operating deficits that may occur up to the following amounts in these discretely presented component units:

Keystone Crossing WHLP$ 128,373 Rosemount II LP 875,923 $ 1,004,296

Generally, these operating deficit obligations lapse three years after the lease up of the property. A guaranty of housing tax credits of up to $27,581,733 is also provided to these discretely presented component units.

63 E. Capital Assets Capital asset activity for the year ended June 30, 2020 was as follows:

Beginning Ending Balance Increases Decreases Balance Capital assets, not being depreciated: Land $ 32,470,223 $ 1,973,324 $ 766,499 $ 33,677,048 Construction in progress ‐ 241,106 ‐ 241,106 Total capital assets, not being depreciated 32,470,223 2,214,430 766,499 33,918,154 Capital assets, being depreciated: Land improvements 6,562,765 508,604 32,950 7,038,419 Buildings 231,806,039 11,954,212 481,341 243,278,910 Furniture and equipment 9,064,660 246,807 11,250 9,300,217 Total capital assets, being depreciated 247,433,464 12,709,623 525,541 259,617,546 Less accumulated depreciation for: Land improvements (5,153,594) (531,269) (32,951) (5,651,912) Buildings (83,103,892) (9,670,540) (257,480) (92,516,952) Furniture and equipment (8,216,171) (333,836) (11,250) (8,538,757) Total accumulated depreciation (96,473,657) (10,535,645) (301,681) (106,707,621) Total capital assets, being depreciated, net 150,959,807 2,173,978 223,860 152,909,925 Total capital assets, net $183,430,030 $ 4,388,408 $ 990,359 $186,828,079

The cost and accumulated depreciation of capital assets relating to operating leases is $956,692 and $481,987 respectively for a carrying value of $474,705.

Construction Commitments At June 30, 2020, the CDA had $14,750 remaining on a $295,000 commitment for a public housing development.

F. Long‐term Debt Changes in Long‐term Liabilities

Beginning Ending Due Within Balance Additions Reductions Balance One Year Compensated absences$ 1,014,161 $ 742,123 $ (644,615) $ 1,111,669 $ 560,377 Notes payable 11,225,021 2,002,107 ‐ 13,227,128 46,737 Bonds payable 78,250,000 ‐ (3,460,000) 74,790,000 3,490,000 Plus deferred amounts: For issuance premiums 2,584,441 ‐ (285,411) 2,299,030 ‐ Total bonds payable 80,834,441 ‐ (3,745,411) 77,089,030 3,490,000 $93,073,623 $ 2,744,230 $ (4,390,026) $91,427,827 $ 4,097,114

Notes Payable The composition of notes payable from direct borrowings is as follows:

Note Description Amount Housing Resources Performance Pilot Loan payable to the Minnesota $600,000 Housing Finance Agency. This non‐interest‐bearing note is dated December 21, 2006 and it provided financing for a $600,000 note receivable dated September 14, 2007 to the Rosemount Family Housing Limited Partnership. This note receivable requires 1% simple interest on the unpaid balance with accrued interest and principal due in one lump sum on September 1, 2043.

Publicly Owned Housing Program (POHP) note payable to the Minnesota 3,523,380 Housing Finance Agency (MHFA). MHFA provided funds in the form of an interest free, deferred loan for a term of twenty years. There is no amortization requirement on the POHP loan. The loan will be forgiven on the twenty‐first (21st) anniversary from the effective date of June, 2009. The purpose of the loan was to provide financing for the construction of a 25‐unit youth housing development.

Ending Long‐term Homelessness Initiative Fund (ELHIF) note payable to the 697,649 MHFA. The loan is for a term of thirty years with zero percent (0%) interest per year. The principal is due and payable in one lump sum on June 1, 2039. The purpose of the loan was to provide financing for the construction of a 25‐unit youth housing development.

Publicly Owned Housing Program (POHP) note payable to the Minnesota 466,000 Housing Finance Agency (MHFA). MHFA provided funds in the form of an interest free, deferred loan for a term of twenty years. There is no amortization requirement on the POHP loan. The loan will be forgiven on the twenty‐first (21st) anniversary from the effective date of February, 2018. The purpose of the loan was to provide financing for the exterior improvements of public housing units in Apple Valley and Hastings.

Dakota County Workforce Housing LLC, note payable to the Family Housing 315,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of December 14, 2025. The loan was initially made to the Eagan Family Housing Limited Partnership, to provide financing for a portion of construction. Upon dissolution in 2012, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, Low Income Large Family note 456,000 payable to MHFA. The loan is for a term of 30 years with interest of one percent (1%) per year accruing on the unpaid amount. The principal and all accrued interest shall be due and payable in one lump sum on December 14, 2025. The loan was initially made to the Eagan Family Housing Limited

65 Partnership, to provide financing for a portion of the construction. Upon dissolution in 2012, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the Family Housing 125,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of January 4, 2025. The loan was initially made to the Inver Grove Heights Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2012, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, Low Income Large Family note 360,000 payable to MHFA. The loan is for a term of 30 years with interest of one percent (1%) per year accruing on the unpaid amount. The principal and all accrued interest shall be due and payable in one lump sum on January 4, 2025. The loan was initially made to the Inver Grove Heights Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2012, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the Family Housing 170,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of June 18, 2023. The loan was initially made to the Apple Valley Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2013, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, Low Income Large Family note 360,000 payable to MHFA. The loan is for a term of 30 years with interest of one percent (1%) per year accruing on the unpaid amount. The principal and all accrued interest shall be due and payable in one lump sum on June 18, 2023. The loan was initially made to the Apple Valley Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2013, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, Low Income Large Family note 396,000 payable to MHFA. The loan is for a term of 30 years with interest of one percent (1%) per year accruing on the unpaid amount. The principal and all accrued interest shall be due and payable in one lump sum on February 25, 2027. The loan was initially made to the Hastings Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2013, the liabilities of the partnership were transferred to the LLC.

66 Dakota County Workforce Housing LLC, note payable to the Family Housing 175,000 Fund. The loan is simple interest of one percent (1%) on the unpaid principal amount until the maturity date of October 1, 2029. The loan was initially made to the Hastings Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2013, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, Affordable Rental Investment Fund 210,480 note payable to MHFA. The loan is for a term of 30 years with interest of one percent (1%) per year accruing on the unpaid amount. The principal and all accrued interest shall be due and payable in one lump sum on February 25, 2027. The loan was initially made to the Hastings Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2013, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, Affordable Rental Investment Fund 176,000 note payable to MHFA. The loan is for a term of 30 years with interest of one percent (1%) per year accruing on the unpaid amount. Annual principal payments are due and all accrued interest shall be due and payable in one lump sum on June 30, 2024. The loan was initially made to the Lakeville Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2013, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the Family Housing 280,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of June 26, 2028. The loan was initially made to the Lakeville Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2013, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to Family Housing 5,257 Fund. The loan is for a term of 30 years with interest of one percent (1%) per year accruing on the unpaid amount. Annual payment of $2,790 with balance of principal and interest due and payable on September 25, 2021. The loan was initially made to the Burnsville Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2014, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, Low Income Large Family note 360,000 payable to MHFA. The loan is for a term of 30 years with interest of one percent (1%) per year accruing on the unpaid amount. The principal and all accrued interest shall be due and payable in one lump sum on September 1, 2022. The loan was initially made to the Burnsville Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2014, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the Family Housing 290,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of May 27, 2029. The loan was initially made to the Chasewood Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2014, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, Affordable Rental Investment Fund 319,591 note payable to MHFA. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of May 27, 2029. The loan was initially made to the Chasewood Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2014, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the Family Housing 230,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of October 26, 2030. The loan was initially made to the Lakeville Family Housing Limited Partnership 2, to provide financing for a portion of the construction. Upon dissolution in 2016, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the MHFA ARIF 555,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of October 26, 2030. The loan was initially made to the Lakeville Family Housing Limited Partnership 2, to provide financing for a portion of the construction. Upon dissolution in 2016, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the Family Housing 230,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of January 24, 2031. The loan was initially made to the Mendota Heights Family Housing Limited Partnership, to provide financing for a portion of the construction.

Upon dissolution in 2016, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the MHFA ARIF 358,427 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of January 24, 2031. The loan was initially made to the Mendota Heights Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2016, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the Family Housing 300,000 Fund. The loan is for a term of 30 years with zero percent interest (0%). The principal is due and payable at the maturity date of September 6, 2032. The loan was initially made to the Hastings Marketplace Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2018, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the MHFA ARIF 219,526 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of January 27, 2033. The loan was initially made to the Hastings Marketplace Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2018, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the Family Housing 225,000 Fund. The loan is for a term of 30 years with zero percent interest (0%). The principal is due and payable at the maturity date of October 1, 2033. The loan was initially made to the Burnsville Heart of the City Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2019, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the MHFA ARIF 200,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of June 22, 2034. The loan was initially made to the Burnsville Heart of the City Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2019, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the MHFA EDHC 500,000 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of June 22,

2034. The loan was initially made to the Burnsville Heart of the City Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2019, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the Family Housing 300,000 Fund. The loan is for a term of 30 years with zero percent interest (0%). The principal is due and payable at the maturity date of October 1, 2034. The loan was initially made to the Eagan Cedar Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2019, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the MHFA ARIF 226,335 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of October 1, 2034. The loan was initially made to the Eagan Cedar Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2019, the liabilities of the partnership were transferred to the LLC.

Dakota County Workforce Housing LLC, note payable to the MHFA EDHC 597,483 Fund. The loan is for a term of 30 years with simple interest of one percent (1%) on the unpaid principal amount until the maturity date of October 1, 2034. The loan was initially made to the Eagan Cedar Family Housing Limited Partnership, to provide financing for a portion of the construction. Upon dissolution in 2019, the liabilities of the partnership were transferred to the LLC.

Total notes payable $13,227,128

Each of the respective notes payable are secured by the underlying assets of the respective projects to which the note relates. Notes are subject to various debt provisions and covenants including affordable housing use restrictions. While the debt agreements require the payment of principal and interest according to the loan terms, the entire principal balance and accrued interest may be due and payable upon the occurrence of any of the following events:

 the sale, assignment, conveyance, transfer lease, lien, encumbrance or refining of the underlying project without lender’s approval  termination of the use of the project as affordable housing  use of the project which violates federal, state or local law, statute or ordinance  default in the performance of any covenant, term or condition of the notes, loan agreements or any other agreement or mortgage relating to or encumbering the project

70 The annual principal and interest maturities for notes payable for fiscal years subsequent to June 30, 2020 are as follows:

Principal Interest Total 2021$ 46,737 $ 32 $ 46,769 2022 46,520 6 46,526 2023 934,000 280,715 1,214,715 2024 44,000 46,176 90,176 2025 485,000 139,989 624,989 2026‐2030 5,965,451 681,280 6,646,731 2031‐2035 3,941,771 948,437 4,890,208 2036‐2040 1,163,649 ‐ 1,163,649 2041‐2044 600,000 ‐ 600,000 $ 13,227,128 $ 2,096,635 $ 15,323,763

Housing Development Bonds The CDA issues housing development bonds to finance the acquisition and construction of senior housing developments. These bonds are limited obligations of the government but are secured by the pledge of the full faith and credit and power of Dakota County, Minnesota to levy direct general ad valorem taxes. These bonds are secured by and payable from the pooled gross rent receipts and other operating revenues related to the operation of housing developments financed by these bonds and an annual pledge of $5,600,000 from the CDA’s tax levy. Housing development bonds are issued as serial bonds.

Bonds currently outstanding are as follows:

Issue Maturity Interest Original Outstanding Description of Bond Date Date Rate Amount June 30 2010 Housing Development Bonds 07/21/10 01/01/40 2.00 ‐ 6.00% 46,160,000 $ 27,455,000 2013 Housing Development Bonds 12/18/13 01/01/27 2.00 ‐ 2.85% 7,630,000 6,205,000 2015A Housing Development Bonds 05/27/15 01/01/42 3.00 ‐ 5.00% 21,745,000 21,445,000 2015B Housing Development Bonds 05/27/15 01/01/35 3.00 ‐ 5.00% 24,025,000 19,685,000 Subtotal 74,790,000 Less current maturities (3,490,000) Total $ 71,300,000

The annual principal and interest maturities for the Housing Development Bonds by fiscal year are as follows:

Principal Interest Total 2021 3,490,000 3,237,670 6,727,670 2022 3,670,000 3,096,194 6,766,194 2023 3,755,000 2,936,495 6,691,495 2024 3,750,000 2,773,193 6,523,193 2025 3,680,000 2,618,758 6,298,758 2026‐2030 18,545,000 10,774,219 29,319,219 2031‐2035 19,640,000 6,737,167 26,377,167 2036‐2040 13,160,000 2,793,881 15,953,881 2041‐2042 5,100,000 308,000 5,408,000 $ 74,790,000 $35,275,577 $ 110,065,577

Pledged Revenue – the CDA has pledged as security for the $74,790,000 of outstanding Housing Development bonds, a portion of its annual tax levy (special benefit tax) that is levied pursuant to Minnesota Statutes, Section 469.033, Subd. 6. These bonds were used to finance the acquisition and construction of senior housing developments. The CDA is currently committed, to the extent it is within its power to do so, to levy and collect $5,600,000 for the payment and debt service on these bonds. The total principal and interest remaining on this debt is $110,065,577 with annual requirements ranging from $6,727,670 in 2021 to $2,704,000 in the final year. The tax levy has averaged over $7 million per year for the last ten years and the amount of tax proceeds pledged towards Housing Development bond debt service is $5,600,000. For the current year, $5,600,000 of tax levy was paid on the debt service for the bonds.

G. Restricted Assets The balances of restricted asset accounts are as follows:

Total Debt proceeds held by trustees$ 5,238,309 Reserves required by debt agreements 10,634,185 CDBG Revolving loan funds 382,950 Tax increment replacement reserve 8,745 Security deposit reserve 283,582 HAP reserve 136,386 FSS escrow 82,438 $ 16,766,595

H. Dakota County CDA Workforce Housing LLC Merger During the fiscal year, the Burnsville HOC Family Housing Limited Partnership and the Eagan Cedar Family Housing Limited Partnership were merged into the LLC. The beginning balances of the assets, liabilities and net position of the partnership, as of the beginning of the period, were determined based on the basis of the carrying values reported in the separate audited financial statements as of June 30, 2019. These beginning balances and the adjustments made to these beginning balances are as follows:

Burnsville Eagan Beginning HOC Cedar Adjustments Balance FHLP FHLP Total Debit Credit Total ASSETS Current assets$ 5,880,242 $ 1,021,134 $ 1,308,094 $ 8,209,470 $ ‐ $ ‐ $ 8,209,470 Capital assets 22,074,476 3,594,164 3,264,392 28,933,032 337,552 259,374 29,011,210 Total assets 27,954,718 4,615,298 4,572,486 37,142,502 337,552 259,374 37,220,680

LIABILITIES Current liabilities 635,908 96,980 67,660 800,548 ‐ ‐ 800,548 Noncurrent liabilities 10,730,475 2,559,676 1,878,459 15,168,610 ‐ 8,559 15,177,169 Total liabilities 11,366,383 2,656,656 1,946,119 15,969,158 ‐ 8,559 15,977,717

NET POSITION Net investment in capital assets 16,136,484 2,706,987 2,180,929 21,024,400 ‐ ‐ 21,024,400 Restricted for capital projects 1,106,303 484,069 646,982 2,237,354 ‐ ‐ 2,237,354 Unrestricted (654,452) (1,232,414) (201,544) (2,088,410) 28,173 97,792 (2,018,791) Total net position $ 16,588,335 $ 1,958,642 $ 2,626,367 $ 21,173,344 $ 28,173 $ 97,792 $ 21,242,963

73 Note 3. Blended Component Unit

The condensed financial statements for the Dakota County CDA Workforce Housing LLC are as follows:

CONDENSED STATEMENT OF NET POSITION Assets: Cash and investments$ 8,186,683 Receivables 76,745 Capital assets, net 28,819,868 Other 165,012 Total assets 37,248,308 Liabilities: Current liabilities 6,533,679 Long‐term liabilities 9,289,071 Total liabilities 15,822,750 Net position: Net investment in capital assets 20,879,769 Restricted 2,999,754 Unrestricted (2,453,965) Total net position $21,425,558 CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Operating revenues $ 3,670,389 Depreciation expense (1,078,554) Other operating expense (2,808,376) Operating income (loss) (216,541) Nonoperating revenues (expenses): Investment income 21,789 Interest expense (244,405) Gain (loss) on disposal of capital assets (126,852) Total nonoperating revenues (expenses) (349,468) Income (loss) before contributions (566,009) Capital contributions / transfers 5,403,232 Change in net position 4,837,223 Beginning net position 16,588,335 Ending net position $21,425,558

CONDENSED STATEMENT OF CASH FLOWS Net cash provided (used) by: Operating activities $ 1,342,255 Noncapital financing activities 163,697 Capital and related financing activities (1,164,153) Investing activities 174,204 Net increase (decrease) 516,003 Beginning cash and cash equivalents 4,396,434 Ending cash and cash equivalents $ 4,912,437

74 Note 4. Segment Information

Condensed financial statements relating to the CDA’s senior housing program which is financed with housing development bonds is as follows:

CONDENSED STATEMENT OF NET POSITION Assets: Cash and investments $35,182,888 Receivables 150,676 Capital assets, net 127,699,048 Other 418,023 Total assets 163,450,635 Liabilities: Current liabilities 7,416,278 Long‐term liabilities 73,599,030 Total liabilities 81,015,308 Net position: Net investment in capital assets 55,860,081 Restricted 12,804,977 Unrestricted 13,770,269 Total net position $82,435,327

CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Operating revenues $ 16,195,172 Depreciation expense (4,320,222) Other operating expense (10,439,285) Operating income (loss) 1,435,665 Nonoperating revenues (expenses): Investment income 372,898 Interest expense (3,064,738) Gain (loss) on disposal of capital assets 234,259 Total nonoperating revenues (expenses) (2,457,581) Income (loss) before contributions (1,021,916) Capital contributions / internal transfers 5,742,112 Change in net position 4,720,196 Beginning net position 77,715,131 Ending net position $82,435,327 CONDENSED STATEMENT OF CASH FLOWS Net cash provided (used) by: Operating activities $ 6,734,852 Capital and related financing activities (1,740,293) Investing activities 11,232,344 Net increase (decrease) 16,226,903 Beginning cash and cash equivalents 6,083,245 Ending cash and cash equivalents $22,310,148

Note 5. Other Information

A. Risk Management The CDA is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; general liability; workers’ compensation and unemployment claims for which the government carries commercial insurance. The CDA has not reduced insurance coverage in the past year and settled claims have not exceeded commercial insurance coverage in any of the three preceding years.

B. Contingent Liabilities

Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the CDA expects such amounts, if any, to be immaterial.

C. Conduit Debt The CDA has issued certain limited‐obligation revenue bonds, including: 1) mortgage revenue bonds issued to provide funding for first time homebuyer loans; 2) multifamily housing revenue bonds issued to provide funds to finance specific multifamily rental housing projects; 3) industrial development revenue bonds issued to assist manufacturing companies in financing new facilities, structural improvements and expansions, and new equipment; 4) essential function bonds to finance facilities used by the general public; and 5) 501(c)3 bonds issued to finance specific rental housing projects developed by nonprofit organizations. This debt is secured by the property financed and is payable solely from payments received on the underlying loans. The CDA is not obligated in any manner for repayment of this debt and accordingly, it is not reported as liabilities in the accompanying financial statements. The aggregate amount of all outstanding conduit debt obligations at June 30, 2020 was $173,856,919.

D. Employee Retirement Plan The CDA provides a defined contribution plan to all full‐time, non‐limited term and exempt employees through participation in the Housing Agency Retirement Trust Plan, a nonprofit trust serving housing and redevelopment agencies that is governed by a board of trustees and utilizing a private sector third party administrator. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. All part‐time, non‐exempt and limited term employees participate in social security.

Employees are required to contribute 12.7% of their annual base salary, and the CDA matches the 12.7% contribution. Plan participants become vested at 20 percent per year after the first year of participation. Plan provisions and contribution requirements are established and may be amended by the CDA’s Board of Commissioners. Employer and employee contributions to the plan during the year were $782,247 each.

E. Accounting Standards not yet Adopted GASB Statement No. 87, Leases, will be effective for the CDA beginning with its fiscal year ending June 30, 2022 financial statements.

GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, will be effective for the CDA beginning with its fiscal year ending June 30, 2022 financial statements.

GASB Statement No. 90, Majority Equity Interests—an amendment of GASB Statements No. 14 and No. 61, will be effective for the CDA beginning with its fiscal year ending June 30, 2021 financial statements.

GASB Statement No. 91, Conduit Debt Obligations, will be effective for the CDA beginning with its fiscal year ending June 30, 2023.

GASB Statement No. 92, Omnibus 2020, will be effective for the CDA beginning with its fiscal year ending June 30, 2022.

GASB Statement No. 93, Replacement of Interbank Offered Rates, will be effective for the CDA beginning with its fiscal year ending June 30, 2022.

GASB Statement No. 94, Public‐Private and Public‐Private Partnerships and Availability Payment Arrangements, will be effective with its fiscal year ending June 30, 2023.

GASB Statement No. 96, Subscription‐Based Information Technology Arrangements, will be effective for the CDA beginning with its fiscal year ending June 30, 2023.

GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code 457 Deferred Compensation Plans‐an amendment of GASB Statements No. 14 and No. 84, and supersession of GASB Statement No. 32, will generally be effective for the CDA beginning with its fiscal year ending June 30, 2022.

F. Subsequent Events Public Housing Disposition On August 1, 2020, the CDA, pursuant to Section 18 of the Housing Act of 1937, disposed of 120 units of HUD‐funded Public Housing. These units were transferred to a wholly owned LLC, the DCCDA Section 18 LLC, and are subject to HUD‐imposed use restrictions requiring these units be operated as affordable and reserved for families at or below 80 percent of area median income (AMI) for a period of not less than 30 years. The DCCDA Section 18, LLC will be a blended component unit in the financial statements for the fiscal year ending June 30, 2021.

Issuance of Bonds On September 24, 2020, the CDA issued $8,655,000 of Governmental Development Bonds, Series 2020A to finance the construction of a 54‐unit workforce housing development in the City of West St. Paul, Minnesota. In addition, the CDA issued $21,800,000 of Governmental Development Refunding Bonds, Series 2020B to refund outstanding Governmental Development Bonds, specifically Series 2010A, Series C and Series D which were dated July 21, 2010. This transaction will appear in the financial statements for the fiscal year ending June 30, 2021.

CARES Act Through June 30, 2020, the CDA received $517,128 of CARES Act funding for the HUD‐funded Public Housing, Housing Choice Voucher and Mainstream Voucher programs. At June 30, 2020, $331,853 of these awards had been spent with $185,275 being carried over to the subsequent fiscal year. Since June 30, 2020, the CDA has received an additional $1,378,629 of funding for the Housing Choice Voucher and Mainstream Voucher programs. In addition, the CDA, as subgrantee of Dakota County, has $5,023,049 to be spent in the HUD‐funded CDBG and ESG programs.

Note 6. Discretely Presented Component Units

A. Condensed Financial Statements The condensed financial statements of the discretely presented component units described in Note 1 is provided on the following pages. These financial statements are as of and for the fiscal year ended December 31, 2019 with the exception of the Burnsville HOC Family Housing Limited Partnership and the Eagan Cedar Family Housing Limited Partnership which are for the six months ended June 30, 2019.

78 Discretely Presented Component Units – Condensed Financial Statements

Burnsvile Eagan Lakeville HOC Cedar Downtown Lafayette FHLP FHLP FHLP FHLP CONDENSED STATEMENT OF NET POSITION Assets: Cash and investments$ 1,008,833 $ 1,296,497 $ 1,230,945 $ 496,187 Receivables 2,325 1,546 1,468 1,973 Capital assets, net 3,594,164 3,264,392 3,831,667 3,693,096 Other 15,735 12,852 25,425 27,031 Total assets 4,621,057 4,575,287 5,089,505 4,218,287

Liabilities: Current liabilities 96,980 67,659 81,358 55,651 Long‐term liabilities 2,565,435 1,881,260 2,061,428 1,690,453 Total liabilities 2,662,415 1,948,919 2,142,786 1,746,104

Net position: Net investment in capital assets 1,146,717 1,497,341 1,915,810 2,055,670 Restricted 927,903 1,147,040 1,082,920 414,964 Unrestricted (115,978) (18,013) (52,011) 1,549 Total net position $ 1,958,642 $ 2,626,368 $ 2,946,719 $ 2,472,183

CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Operating revenues $ 174,837 $ 168,386 $ 395,413 $ 308,564 Depreciation expense (60,632) (59,163) (154,186) (110,944) Other operating expense (144,150) (134,469) (270,039) (319,386) Operating income (loss) (29,945) (25,246) (28,812) (121,766)

Nonoperating revenues (expenses): Investment income 116 139 196 91 Interest expense (26,089) (18,029) (39,761) (24,481) Amortization expense (208) (93) (234) (722) Total nonoperating revenues (expens (26,181) (17,983) (39,799) (25,112)

Capital contributions ‐ ‐ ‐ ‐ Change in net position (56,126) (43,229) (68,611) (146,878) Beginning net position 2,014,768 2,669,597 3,015,330 2,619,061 Ending net position $ 1,958,642 $ 2,626,368 $ 2,946,719 $ 2,472,183

Discretely Presented Component Units – Condensed Financial Statements

Hastings West Village Rosemount Twin Ponds Meadowlark FHLP FHLP FHLP FHLP CONDENSED STATEMENT OF NET POSITION Assets: Cash and investments$ 307,800 $ 867,097 $ 763,289 $ 1,287,441 Receivables 1,236 1,996 2,518 3,850 Capital assets, net 2,575,811 4,649,062 3,025,385 4,724,387 Other 22,673 25,533 30,943 55,734 Total assets 2,907,520 5,543,688 3,822,135 6,071,412

Liabilities: Current liabilities 41,998 65,595 54,061 76,636 Long‐term liabilities 1,165,371 1,972,036 1,677,002 2,210,450 Total liabilities 1,207,369 2,037,631 1,731,063 2,287,086

Net position: Net investment in capital assets 1,491,478 2,838,273 1,492,578 2,679,154 Restricted 233,156 716,088 640,774 1,162,789 Unrestricted (24,483) (48,304) (42,280) (57,617) Total net position $ 1,700,151 $ 3,506,057 $ 2,091,072 $ 3,784,326

CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Operating revenues $ 195,269 $ 327,813 $ 240,037 $ 387,510 Depreciation expense (92,870) (140,928) (102,968) (168,860) Other operating expense (204,356) (250,886) (173,540) (301,994) Operating income (loss) (101,957) (64,001) (36,471) (83,344)

Nonoperating revenues (expenses): Investment income 52 133 111 210 Interest expense (14,696) (32,710) (25,265) (38,297) Amortization expense (634) (656) (1,882) (7,531) Total nonoperating revenues (expens (15,278) (33,233) (27,036) (45,618)

Capital contributions ‐ ‐ ‐ ‐ Change in net position (117,235) (97,234) (63,507) (128,962) Beginning net position 1,817,386 3,603,291 2,154,579 3,913,288 Ending net position$ 1,700,151 $ 3,506,057 $ 2,091,072 $ 3,784,326

80 Discretely Presented Component Units – Condensed Financial Statements Inver Hills Apple Valley Twin & Riverview Eagan East Ponds II Ridge Northwood FHLP FHLP FHLP FHLP CONDENSED STATEMENT OF NET POSITION Assets: Cash and investments$ 1,285,110 $ 692,148 $ 2,030,917 $ 1,597,169 Receivables 4,767 960 624 2,288 Capital assets, net 6,393,282 3,622,704 9,208,762 7,992,499 Other 45,421 26,168 73,486 50,397 Total assets 7,728,580 4,341,980 11,313,789 9,642,353

Liabilities: Current liabilities 90,537 55,262 107,417 101,103 Long‐term liabilities 2,336,515 1,134,846 2,600,884 1,156,535 Total liabilities 2,427,052 1,190,108 2,708,301 1,257,638

Net position: Net investment in capital assets 4,203,172 2,547,264 6,712,989 6,886,396 Restricted 1,107,455 575,255 1,856,464 1,310,002 Unrestricted (9,099) 29,353 36,035 188,317 Total net position $ 5,301,528 $ 3,151,872 $ 8,605,488 $ 8,384,715

CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Operating revenues $ 435,752 $ 255,083 $ 509,993 $ 473,659 Depreciation expense (172,782) (105,024) (280,141) (211,479) Other operating expense (349,746) (185,678) (363,121) (294,867) Operating income (loss) (86,776) (35,619) (133,269) (32,687)

Nonoperating revenues (expenses): Investment income 209 100 336 234 Interest expense (50,330) (26,838) (30,064) (30,357) Amortization expense (5,437) (3,013) (6,858) (5,618) Total nonoperating revenues (expens (55,558) (29,751) (36,586) (35,741)

Capital contributions ‐ ‐ ‐ ‐ Change in net position (142,334) (65,370) (169,855) (68,428) Beginning net position 5,443,862 3,217,242 8,775,343 8,453,143 Ending net position $ 5,301,528 $ 3,151,872 $ 8,605,488 $ 8,384,715

Discretely Presented Component Units – Condensed Financial Statements Total Discretely Presented Lakeshore Keystone Rosemount II Component WHLP WHLP LP Units CONDENSED STATEMENT OF NET POSITION Assets: Cash and investments$ 1,224,661 $ 474,953 $ 197,789 14,760,836 Receivables 3,789 129 210,576 240,045 Capital assets, net 10,241,739 8,690,568 10,494,484 86,002,002 Other 74,925 59,485 71,260 617,068 Total assets 11,545,114 9,225,135 10,974,109 101,619,951

Liabilities: Current liabilities 107,503 67,313 1,320,084 2,389,157 Long‐term liabilities 2,734,781 1,901,969 8,070,189 35,159,154 Total liabilities 2,842,284 1,969,282 9,390,273 37,548,311

Net position: Net investment in capital assets 7,609,765 6,828,788 1,577,004 51,482,399 Restricted 996,734 325,906 12,497,450 Unrestricted 96,331 101,159 6,832 91,791 Total net position $ 8,702,830 $ 7,255,853 $ 1,583,836 64,071,640

CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Operating revenues $ 510,066 $ 348,003 $ 159,206 4,889,591 Depreciation expense (301,769) (270,509) (116,685) (2,348,940) Other operating expense (335,080) (225,004) (120,206) (3,672,522) Operating income (loss) (126,783) (147,510) (77,685) (1,131,871)

Nonoperating revenues (expenses): Investment income 179 53 ‐ 2,159 Interest expense (60,776) (46,836) (172,499) (637,028) Amortization expense (7,473) (5,230) (14,768) (60,357) Total nonoperating revenues (expens (68,070) (52,013) (187,267) (695,226)

Capital contributions ‐ ‐ ‐ ‐ Change in net position (194,853) (199,523) (264,952) (1,827,097) Beginning net position 8,897,683 7,455,376 1,848,788 65,898,737 Ending net position$ 8,702,830 $ 7,255,853 $ 1,583,836 64,071,640

82 B. Deposits The discretely presented component units maintain its cash in bank deposit accounts. The entire amount of bank balances is covered by federal depository insurance and collateral pledged by the financial institution.

C. Restricted Cash Restricted cash is comprised of required security deposit reserves, operating reserves, replacement reserves, and working capital reserves.

D. Capital Assets Capital asset activity for the year ended December 31, 2019 was as follows:

Beginning Ending Balance Increases Decreases Balance Capital assets, not being depreciated: Land $ 12,382,448 166,157 ‐ $ 12,548,605 Construction in progress 3,155,294 ‐ 3,155,294 ‐ Total capital assets, not being depreciated 15,537,742 166,157 3,155,294 12,548,605 Capital assets, being depreciated: Land improvements 4,993,110 604,770 ‐ 5,597,880 Buildings 78,643,238 9,338,415 ‐ 87,981,653 Residential equipment 1,357,343 111,230 ‐ 1,468,573 Furniture and equipment 25,523 1,837 ‐ 27,360 Total capital assets, being depreciated 85,019,214 10,056,252 ‐ 95,075,466 Less accumulated depreciation for: Land improvements (2,367,159) (324,448) ‐ (2,691,607) Buildings (15,672,840) (1,946,744) ‐ (17,619,584) Residential equipment (1,210,375) (76,250) ‐ (1,286,625) Furniture and equipment (22,755) (1,498) ‐ (24,253) Total accumulated depreciation (19,273,129) (2,348,940) ‐ (21,622,069) Total capital assets, being depreciated, net 65,746,085 7,707,312 ‐ 73,453,397 Total capital assets, net $ 81,283,827 $ 7,873,469 $ 3,155,294 $ 86,002,002

83 E. Long‐Term Debt A summary of notes payable is as follows:

Interest Maturity Beginning Ending Due Within Obligation Rate Date Balance Additions Reductions Balance One Year Debts of BV HOC FHLP CDA 6.75% 2033 637,995 ‐ 12,853 625,142 27,041 MHFA ‐ EDHC 1.00% 2034 500,000 ‐ ‐ 500,000 ‐ Family Housing Fund 0.00% 2033 225,000 ‐ ‐ 225,000 ‐ MHFA ‐ ARIF 1.00% 2034 200,000 ‐ ‐ 200,000 ‐ CDA ‐ HOPE 0.00% 2033 250,000 ‐ ‐ 250,000 ‐ CDA ‐ HOME 1.00% 2033 247,305 ‐ ‐ 247,305 ‐ CDA ‐ LHIA 0.00% 2033 400,000 ‐ ‐ 400,000 ‐

Debts of Eagan Cedar FHLP: CDA 7.00% 2034 400,399 ‐ 7,166 393,233 15,104 MHFA ‐ EDHC 1.00% 2034 597,483 ‐ ‐ 597,483 ‐ Family Housing Fund 0.00% 2034 300,000 ‐ ‐ 300,000 ‐ MHFA ‐ ARIF 1.00% 2034 226,335 ‐ ‐ 226,335 ‐ CDA ‐ HOPE 0.00% 2034 250,000 ‐ ‐ 250,000 ‐

Debts of Lakeville Downtown FHLP: CDA 6.75% 2035 441,282 ‐ 15,607 425,675 16,693 MHFA ‐ EDHC 1.00% 2035 802,181 ‐ ‐ 802,181 ‐ Family Housing Fund 1.00% 2035 243,000 ‐ ‐ 243,000 ‐ CDA ‐ HOPE 0.00% 2035 250,000 ‐ ‐ 250,000 ‐ CDA ‐ LHIA 0.00% 2035 195,000 ‐ ‐ 195,000 ‐

Debts of Lafayette FHLP: CDA 6.75% 2036 300,846 ‐ 9,320 291,526 9,969 MHFA ‐ EDHC 0.00% 2035 700,000 ‐ ‐ 700,000 ‐ Family Housing Fund 0.00% 2035 200,000 ‐ ‐ 200,000 ‐ CDA ‐ HOPE 1.00% 2035 250,000 ‐ ‐ 250,000 ‐ CDA ‐ LHIA 1.00% 2035 195,900 ‐ ‐ 195,900 ‐

Debts of Hastings West Village FHLP: CDA 6.00% 2037 138,497 ‐ 4,163 134,334 4,420 CDA ‐ HOPE 1.00% 2037 300,000 ‐ ‐ 300,000 ‐ CDA ‐ HOME 1.00% 2037 225,000 ‐ ‐ 225,000 ‐ MHFA ‐ EDHC 0.00% 2037 200,000 ‐ ‐ 200,000 ‐ CDA ‐ LHIA 1.00% 2037 125,000 ‐ ‐ 125,000 ‐ Family Housing Fund 0.00% 2036 100,000 ‐ ‐ 100,000 ‐

84 Interest Maturity Beginning Ending Due Within Obligation Rate Date Balance Additions Reductions Balance One Year Debts of Rosemount FHLP: CDA 6.75% 2043 286,238 ‐ 4,690 281,548 5,017 CDA ‐ HRPP 1.00% 2043 600,000 ‐ ‐ 600,000 ‐ CDA ‐ HOPE 1.00% 2043 500,000 ‐ ‐ 500,000 ‐ Family Housing Fund 0.00% 2043 176,000 ‐ ‐ 176,000 ‐ CDA ‐ LHIA 1.00% 2043 145,000 ‐ ‐ 145,000 ‐ CDA ‐ TIF 1.00% 2043 59,244 ‐ ‐ 59,244 ‐ CDA ‐ HOME 1.00% 2043 48,997 ‐ ‐ 48,997 ‐

Debts of Twin Ponds FHLP: CDA 6.75% 2038 174,222 ‐ 3,924 170,298 4,197 MHFA ‐ HRPP 1.00% 2038 783,000 ‐ ‐ 783,000 ‐ CDA ‐ HOPE 1.00% 2038 250,000 ‐ ‐ 250,000 ‐ CDA ‐ HOME 1.00% 2038 104,509 ‐ ‐ 104,509 ‐ CDA ‐ LHIA 1.00% 2038 225,000 ‐ ‐ 225,000 ‐

Debts of Meadowlark FHLP: CDA 6.75% 2040 312,714 ‐ 6,622 306,092 7,083 CDA ‐ TCAP 1.00% 2040 425,558 ‐ ‐ 425,558 ‐ MHFA ‐ Pilot 1.00% 2040 813,584 ‐ ‐ 813,584 ‐ CDA ‐ HOPE 1.00% 2040 500,000 ‐ ‐ 500,000 ‐

Debts of Apple Valley East FHLP: CDA 6.75% 2041 497,814 ‐ 9,495 488,319 10,156 CDA ‐ TCAP 1.00% 2041 1,701,790 ‐ ‐ 1,701,790 ‐

Debts of Twin Ponds II FHLP: CDA 6.75% 2042 281,488 ‐ 4,959 276,529 5,304 CDA ‐ TIF 1.00% 2042 298,911 ‐ ‐ 298,911 ‐ CDA ‐ HOPE 1.00% 2042 250,000 ‐ ‐ 250,000 ‐ CDA ‐ Met Council 0.01% 2042 250,000 ‐ ‐ 250,000 ‐

Debts of Eagan Northwood FHLP: CDA 6.75% 2044 337,515 ‐ 5,403 332,112 5,779 CDA ‐ HOME 1.00% 2044 273,990 ‐ ‐ 273,990 ‐ CDA ‐ HOPE 1.00% 2044 500,000 ‐ ‐ 500,000 ‐

Debts of IH&RR FHLP: CDA 6.75% 2043 194,185 ‐ 2,869 191,316 3,068 CDA ‐ HOME 1.00% 2043 904,456 ‐ ‐ 904,456 ‐ MHFA ‐ Challenge 0.00% 2043 600,000 ‐ ‐ 600,000 ‐ CDA ‐ HOPE 1.00% 2043 500,000 ‐ ‐ 500,000 ‐ CDA ‐ Met Council 0.01% 2043 300,000 ‐ ‐ 300,000 ‐

85 Interest Maturity Beginning Ending Due Within Obligation Rate Date Balance Additions Reductions Balance One Year Debts of Lakeshore WHLP: CDA 6.75% 2044 602,161 ‐ 8,188 593,973 8,757 CDA ‐ HOME 1.00% 2044 943,000 ‐ ‐ 943,000 ‐ MHFA 1.00% 2044 495,000 ‐ ‐ 495,000 ‐ CDA ‐ HOPE 1.00% 2044 400,000 ‐ ‐ 400,000 ‐ CDA ‐ LHIA 1.00% 2044 200,000 ‐ ‐ 200,000 ‐

Debts of Keystone Crossing WHLP: CDA 6.75% 2045 492,969 ‐ 6,189 486,780 6,621 CDA ‐ HOPE 1.00% 2045 510,000 ‐ ‐ 510,000 ‐ CDA ‐ HOME 1.00% 2045 720,000 ‐ ‐ 720,000 ‐ CDA ‐ LHIA 1.00% 2045 145,000 ‐ ‐ 145,000 ‐

Debts of Prestwick Place FHLP: CDA 6.75% 2048 331,137 266,859 ‐ 597,998 14,245 CDA ‐ HOPE 1.00% 2048 750,000 ‐ ‐ 750,000 ‐ CDA ‐ HOME 1.00% 2048 675,116 ‐ ‐ 675,116 ‐ CDA ‐ Bridge 6.75% 2048 5,816,369 ‐ ‐ 5,816,369 ‐ CDA ‐ Developer fee 0.00% 2031 ‐ 1,078,000 ‐ 1,078,000 1,078,000 $ 33,276,190 $ 1,344,859 $ 101,448 $ 34,519,603 $ 1,221,454

At December 31, 2019, the current portion of notes payable was $1,221,454 and the noncurrent portion of notes payable was $33,298,149.

The future principal payments on notes payable are as follows:

Principal 2020 $ 1,221,454 2021 152,315 2022 162,927 2023 174,274 2024 186,420 Thereafter 32,622,213 $ 34,519,603

86 87 Supplementary Information

88 89 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.218 Community 81.042 14.PHC Public 6.1 Component Unit - Development Block Weatherization Project Total Housing CARES Act Discretely Presented Grants/Entitlement Assistance for Low- Funding Grants Income Persons

111 Cash - Unrestricted $5,202,323 $190,526 $1,859,393 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted $382,950 $12,497,449 114 Cash - Tenant Security Deposits $403,994 115 Cash - Restricted for Payment of Current Liabilities 100 Total Cash $5,202,323 $0 $573,476 $0 $14,760,836

121 Accounts Receivable - PHA Projects 122 Accounts Receivable - HUD Other Projects $119,488 $24,375 $56,470 124 Accounts Receivable - Other Government $8,800 $13,570 $191,806 125 Accounts Receivable - Miscellaneous $69,100 $19,109 126 Accounts Receivable - Tenants $47,732 $4,113 $29,131 126.1 Allowance for Doubtful Accounts -Tenants $0 $0 $0 126.2 Allowance for Doubtful Accounts - Other $0 $0 $0 $0 $0 127 Notes, Loans, & Mortgages Receivable - Current $39,979 128 Fraud Recovery 128.1 Allowance for Doubtful Accounts - Fraud 129 Accrued Interest Receivable $1 120 Total Receivables, Net of Allowances for Doubtful Accounts $216,000 $24,375 $129,683 $13,570 $240,046

131 Investments - Unrestricted 132 Investments - Restricted 135 Investments - Restricted for Payment of Current Liability 142 Prepaid Expenses and Other Assets $149,940 $2,514 $234,482 143 Inventories

90 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

143.1 Allowance for Obsolete Inventories 144 Inter Program Due From 145 Assets Held for Sale 150 Total Current Assets $5,568,263 $24,375 $705,673 $13,570 $15,235,364

161 Land $4,337,853 $205,850 $18,146,485 162 Buildings $30,768,537 $463,366 $87,981,653 163 Furniture, Equipment & Machinery - Dwellings $237,770 $1,468,573 164 Furniture, Equipment & Machinery - Administration $24,682 $27,360 165 Leasehold Improvements 166 Accumulated Depreciation -$18,673,508 -$111,015 -$21,622,069 167 Construction in Progress 168 Infrastructure 160 Total Capital Assets, Net of Accumulated Depreciation $16,695,334 $0 $558,201 $0 $86,002,002

171 Notes, Loans and Mortgages Receivable - Non-Current $13,714,760 172 Notes, Loans, & Mortgages Receivable - Non Current - Past 173 Grants Receivable - Non Current 174 Other Assets $382,585 176 Investments in Joint Ventures 180 Total Non-Current Assets $16,695,334 $0 $14,272,961 $0 $86,384,587

200 Deferred Outflow of Resources

290 Total Assets and Deferred Outflow of Resources $22,263,597 $24,375 $14,978,634 $13,570 $101,619,951

91 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

311 Bank Overdraft 312 Accounts Payable <= 90 Days $127,703 $39,899 $2,875 $167,232 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable $12,314 $13,162 $4,101 322 Accrued Compensated Absences - Current Portion 324 Accrued Contingency Liability 325 Accrued Interest Payable 331 Accounts Payable - HUD PHA Programs 332 Account Payable - PHA Projects 333 Accounts Payable - Other Government $102,738 $902 $219,240 341 Tenant Security Deposits $200,184 $2,654 $394,043 342 Unearned Revenue $10,231 $26,441 343 Current Portion of Long-term Debt - Capital $1,221,454 344 Current Portion of Long-term Debt - Operating Borrowings 345 Other Current Liabilities $94,520 $1,438,747 346 Accrued Liabilities - Other $44,067 347 Inter Program - Due To $24,375 $9,368 $6,544 348 Loan Liability - Current 310 Total Current Liabilities $591,757 $24,375 $65,985 $13,520 $3,467,157

351 Long-term Debt, Net of Current - Capital Projects/Mortgage $466,000 $34,081,154 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other 354 Accrued Compensated Absences - Non Current 355 Loan Liability - Non Current 356 FASB 5 Liabilities

92 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

357 Accrued Pension and OPEB Liabilities 350 Total Non-Current Liabilities $466,000 $0 $0 $0 $34,081,154

300 Total Liabilities $1,057,757 $24,375 $65,985 $13,520 $37,548,311

400 Deferred Inflow of Resources

508.4 Net Investment in Capital Assets $16,229,334 $0 $558,201 $0 $51,482,399 511.4 Restricted Net Position $0 $14,354,448 $50 $12,497,449 512.4 Unrestricted Net Position $4,976,506 $0 $0 $0 $91,792 513 Total Equity - Net Assets / Position $21,205,840 $0 $14,912,649 $50 $64,071,640

600 Total Liabilities, Deferred Inflows of Resources and Equity - $22,263,597 $24,375 $14,978,634 $13,570 $101,619,951

93 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

111 Cash - Unrestricted $4,912,437 $70,728,242 $79,584 $35,220,073 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted $2,999,754 $12,872,740 $8,745 114 Cash - Tenant Security Deposits $274,492 $9,090 115 Cash - Restricted for Payment of Current Liabilities 100 Total Cash $8,186,683 $0 $83,610,072 $79,584 $35,228,818

121 Accounts Receivable - PHA Projects 122 Accounts Receivable - HUD Other Projects $3,409 124 Accounts Receivable - Other Government $6,561 $650,226 $775,555 125 Accounts Receivable - Miscellaneous $1,555 $1,360,063 $5,539,273 126 Accounts Receivable - Tenants $68,629 $52,573 $0 126.1 Allowance for Doubtful Accounts -Tenants $0 $0 126.2 Allowance for Doubtful Accounts - Other $0 $0 $0 $0 127 Notes, Loans, & Mortgages Receivable - Current $1,937 $473,115 128 Fraud Recovery 128.1 Allowance for Doubtful Accounts - Fraud 129 Accrued Interest Receivable $34,942 $1,560 120 Total Receivables, Net of Allowances for Doubtful Accounts $76,745 $3,409 $2,099,741 $0 $6,789,503

131 Investments - Unrestricted $17,282,222 $303,979 132 Investments - Restricted 135 Investments - Restricted for Payment of Current Liability 142 Prepaid Expenses and Other Assets $165,012 $464,029 $798 $839 143 Inventories 143.1 Allowance for Obsolete Inventories

94 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

144 Inter Program Due From $2,654,017 $4,871,354 145 Assets Held for Sale 150 Total Current Assets $8,428,440 $3,409 $106,110,081 $80,382 $47,194,493

161 Land $7,195,685 $23,304,351 $30,035 $5,641,694 162 Buildings $42,731,691 $169,147,016 $168,300 163 Furniture, Equipment & Machinery - Dwellings $528,586 $2,855,053 $1,050 164 Furniture, Equipment & Machinery - Administration $44,111 $5,478,961 165 Leasehold Improvements 166 Accumulated Depreciation -$21,680,205 -$66,073,231 -$39,659 167 Construction in Progress $241,106 168 Infrastructure 160 Total Capital Assets, Net of Accumulated Depreciation $28,819,868 $0 $134,953,256 $159,726 $5,641,694

171 Notes, Loans and Mortgages Receivable - Non-Current $0 $18,097 $14,300 $43,828,952 172 Notes, Loans, & Mortgages Receivable - Non Current - Past 173 Grants Receivable - Non Current 174 Other Assets $262,356 176 Investments in Joint Ventures $7,192,608 180 Total Non-Current Assets $28,819,868 $0 $134,971,353 $174,026 $56,925,610

200 Deferred Outflow of Resources $11,753

290 Total Assets and Deferred Outflow of Resources $37,248,308 $3,409 $241,093,187 $254,408 $104,120,103

311 Bank Overdraft

95 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

312 Accounts Payable <= 90 Days $78,283 $880,488 $431 $88,036 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable $5,716 $862 $293,658 $105 $26,214 322 Accrued Compensated Absences - Current Portion $560,377 324 Accrued Contingency Liability 325 Accrued Interest Payable $1,618,835 331 Accounts Payable - HUD PHA Programs 332 Account Payable - PHA Projects 333 Accounts Payable - Other Government $77,806 $327,947 $303 $1,367 341 Tenant Security Deposits $266,984 $1,105,715 $1,153 342 Unearned Revenue $23,270 $164,134 $3,428 343 Current Portion of Long-term Debt - Capital $46,737 $3,490,000 344 Current Portion of Long-term Debt - Operating Borrowings 345 Other Current Liabilities $21,190 $417 $10,643 346 Accrued Liabilities - Other 347 Inter Program - Due To $6,013,693 $2,547 $2,000,000 $209,328 348 Loan Liability - Current 310 Total Current Liabilities $6,533,679 $3,409 $10,441,571 $1,992 $339,016

351 Long-term Debt, Net of Current - Capital Projects/Mortgage $9,289,071 $77,820,059 $600,000 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other 354 Accrued Compensated Absences - Non Current $551,292 355 Loan Liability - Non Current 356 FASB 5 Liabilities 357 Accrued Pension and OPEB Liabilities

96 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

350 Total Non-Current Liabilities $9,289,071 $0 $78,371,351 $0 $600,000

300 Total Liabilities $15,822,750 $3,409 $88,812,922 $1,992 $939,016

400 Deferred Inflow of Resources $11,333,306

508.4 Net Investment in Capital Assets $20,879,769 $0 $58,652,154 $159,726 $5,641,694 511.4 Restricted Net Position $2,999,754 $0 $13,368,425 $92,690 $35,903,717 512.4 Unrestricted Net Position -$2,453,965 $0 $80,259,686 $0 $50,302,370 513 Total Equity - Net Assets / Position $21,425,558 $0 $152,280,265 $252,416 $91,847,781

600 Total Liabilities, Deferred Inflows of Resources and Equity - $37,248,308 $3,409 $241,093,187 $254,408 $104,120,103

97 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

111 Cash - Unrestricted $669,938 $1,711,408 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted $5,810 114 Cash - Tenant Security Deposits 115 Cash - Restricted for Payment of Current Liabilities $82,438 100 Total Cash $0 $0 $669,938 $1,799,656 $0

121 Accounts Receivable - PHA Projects $204,251 122 Accounts Receivable - HUD Other Projects $20,661 $37,952 $109,221 $27,374 124 Accounts Receivable - Other Government $29,007 125 Accounts Receivable - Miscellaneous $682 126 Accounts Receivable - Tenants $0 $115 126.1 Allowance for Doubtful Accounts -Tenants $0 $0 126.2 Allowance for Doubtful Accounts - Other $0 $0 $0 $0 $0 127 Notes, Loans, & Mortgages Receivable - Current 128 Fraud Recovery $1,173 $80,135 128.1 Allowance for Doubtful Accounts - Fraud -$1,173 -$80,135 129 Accrued Interest Receivable 120 Total Receivables, Net of Allowances for Doubtful Accounts $21,343 $29,007 $37,952 $313,587 $27,374

131 Investments - Unrestricted 132 Investments - Restricted 135 Investments - Restricted for Payment of Current Liability 142 Prepaid Expenses and Other Assets 143 Inventories 143.1 Allowance for Obsolete Inventories

98 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

144 Inter Program Due From $814,601 145 Assets Held for Sale 150 Total Current Assets $21,343 $29,007 $1,522,491 $2,113,243 $27,374

161 Land 162 Buildings 163 Furniture, Equipment & Machinery - Dwellings 164 Furniture, Equipment & Machinery - Administration $130,004 165 Leasehold Improvements 166 Accumulated Depreciation -$130,004 167 Construction in Progress 168 Infrastructure 160 Total Capital Assets, Net of Accumulated Depreciation $0 $0 $0 $0 $0

171 Notes, Loans and Mortgages Receivable - Non-Current $7,024,290 172 Notes, Loans, & Mortgages Receivable - Non Current - Past 173 Grants Receivable - Non Current 174 Other Assets 176 Investments in Joint Ventures 180 Total Non-Current Assets $0 $0 $7,024,290 $0 $0

200 Deferred Outflow of Resources

290 Total Assets and Deferred Outflow of Resources $21,343 $29,007 $8,546,781 $2,113,243 $27,374

311 Bank Overdraft

99 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

312 Accounts Payable <= 90 Days $10,807 $20,014 $5,207 $25,966 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable $2,812 $5,374 322 Accrued Compensated Absences - Current Portion 324 Accrued Contingency Liability 325 Accrued Interest Payable 331 Accounts Payable - HUD PHA Programs $1,363 $101 332 Account Payable - PHA Projects $78,264 333 Accounts Payable - Other Government 341 Tenant Security Deposits 342 Unearned Revenue 343 Current Portion of Long-term Debt - Capital 344 Current Portion of Long-term Debt - Operating Borrowings 345 Other Current Liabilities $82,438 346 Accrued Liabilities - Other 347 Inter Program - Due To $19,980 $15,388 $1,408 348 Loan Liability - Current 310 Total Current Liabilities $21,343 $29,007 $25,388 $166,010 $27,374

351 Long-term Debt, Net of Current - Capital Projects/Mortgage 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other 354 Accrued Compensated Absences - Non Current 355 Loan Liability - Non Current 356 FASB 5 Liabilities 357 Accrued Pension and OPEB Liabilities

100 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

350 Total Non-Current Liabilities $0 $0 $0 $0 $0

300 Total Liabilities $21,343 $29,007 $25,388 $166,010 $27,374

400 Deferred Inflow of Resources

508.4 Net Investment in Capital Assets $0 $0 $0 $0 $0 511.4 Restricted Net Position $0 $0 $8,521,393 $5,810 $0 512.4 Unrestricted Net Position $0 $0 $0 $1,941,423 $0 513 Total Equity - Net Assets / Position $0 $0 $8,521,393 $1,947,233 $0

600 Total Liabilities, Deferred Inflows of Resources and Equity - $21,343 $29,007 $8,546,781 $2,113,243 $27,374

101 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

111 Cash - Unrestricted $12,781 $21,916 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted $130,576 114 Cash - Tenant Security Deposits 115 Cash - Restricted for Payment of Current Liabilities 100 Total Cash $130,576 $12,781 $0 $21,916 $0

121 Accounts Receivable - PHA Projects 122 Accounts Receivable - HUD Other Projects $76 $29,285 $1,790 124 Accounts Receivable - Other Government $20,151 125 Accounts Receivable - Miscellaneous 126 Accounts Receivable - Tenants 126.1 Allowance for Doubtful Accounts -Tenants 126.2 Allowance for Doubtful Accounts - Other $0 $0 $0 $0 127 Notes, Loans, & Mortgages Receivable - Current 128 Fraud Recovery 128.1 Allowance for Doubtful Accounts - Fraud 129 Accrued Interest Receivable 120 Total Receivables, Net of Allowances for Doubtful Accounts $0 $76 $29,285 $1,790 $20,151

102 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

144 Inter Program Due From 145 Assets Held for Sale 150 Total Current Assets $130,576 $12,857 $29,285 $23,706 $20,151

161 Land 162 Buildings 163 Furniture, Equipment & Machinery - Dwellings 164 Furniture, Equipment & Machinery - Administration 165 Leasehold Improvements 166 Accumulated Depreciation 167 Construction in Progress 168 Infrastructure 160 Total Capital Assets, Net of Accumulated Depreciation $0 $0 $0 $0 $0

171 Notes, Loans and Mortgages Receivable - Non-Current 172 Notes, Loans, & Mortgages Receivable - Non Current - Past 173 Grants Receivable - Non Current 174 Other Assets 176 Investments in Joint Ventures 180 Total Non-Current Assets $0 $0 $0 $0 $0

200 Deferred Outflow of Resources

290 Total Assets and Deferred Outflow of Resources $130,576 $12,857 $29,285 $23,706 $20,151

311 Bank Overdraft

103 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

312 Accounts Payable <= 90 Days $12,095 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable 322 Accrued Compensated Absences - Current Portion 324 Accrued Contingency Liability 325 Accrued Interest Payable 331 Accounts Payable - HUD PHA Programs 332 Account Payable - PHA Projects 333 Accounts Payable - Other Government 341 Tenant Security Deposits 342 Unearned Revenue $130,576 343 Current Portion of Long-term Debt - Capital 344 Current Portion of Long-term Debt - Operating Borrowings 345 Other Current Liabilities 346 Accrued Liabilities - Other 347 Inter Program - Due To $29,285 $8,056 348 Loan Liability - Current 310 Total Current Liabilities $130,576 $0 $29,285 $0 $20,151

104 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

350 Total Non-Current Liabilities $0 $0 $0 $0 $0

300 Total Liabilities $130,576 $0 $29,285 $0 $20,151

400 Deferred Inflow of Resources

508.4 Net Investment in Capital Assets $0 $0 $0 $0 511.4 Restricted Net Position $0 $0 $0 $22,683 $0 512.4 Unrestricted Net Position $0 $12,857 $0 $1,023 $0 513 Total Equity - Net Assets / Position $0 $12,857 $0 $23,706 $0

600 Total Liabilities, Deferred Inflows of Resources and Equity - $130,576 $12,857 $29,285 $23,706 $20,151

105 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

111 Cash - Unrestricted $120,608,621 $120,608,621 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted $28,898,024 $28,898,024 114 Cash - Tenant Security Deposits $687,576 $687,576 115 Cash - Restricted for Payment of Current Liabilities $82,438 $82,438 100 Total Cash $150,276,659 $0 $150,276,659

121 Accounts Receivable - PHA Projects $204,251 $204,251 122 Accounts Receivable - HUD Other Projects $430,101 $430,101 124 Accounts Receivable - Other Government $1,695,676 $1,695,676 125 Accounts Receivable - Miscellaneous $6,989,782 $6,989,782 126 Accounts Receivable - Tenants $202,293 $202,293 126.1 Allowance for Doubtful Accounts -Tenants $0 $0 126.2 Allowance for Doubtful Accounts - Other $0 $0 127 Notes, Loans, & Mortgages Receivable - Current $515,031 $515,031 128 Fraud Recovery $81,308 $81,308 128.1 Allowance for Doubtful Accounts - Fraud -$81,308 -$81,308 129 Accrued Interest Receivable $36,503 $36,503 120 Total Receivables, Net of Allowances for Doubtful Accounts $10,073,637 $0 $10,073,637

131 Investments - Unrestricted $17,586,201 $17,586,201 132 Investments - Restricted 135 Investments - Restricted for Payment of Current Liability 142 Prepaid Expenses and Other Assets $1,017,614 $1,017,614 143 Inventories 143.1 Allowance for Obsolete Inventories

106 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

144 Inter Program Due From $8,339,972 -$8,339,972 $0 145 Assets Held for Sale 150 Total Current Assets $187,294,083 -$8,339,972 $178,954,111

161 Land $58,861,953 $58,861,953 162 Buildings $331,260,563 $331,260,563 163 Furniture, Equipment & Machinery - Dwellings $5,091,032 $5,091,032 164 Furniture, Equipment & Machinery - Administration $5,705,118 $5,705,118 165 Leasehold Improvements 166 Accumulated Depreciation -$128,329,691 -$128,329,691 167 Construction in Progress $241,106 $241,106 168 Infrastructure 160 Total Capital Assets, Net of Accumulated Depreciation $272,830,081 $0 $272,830,081

171 Notes, Loans and Mortgages Receivable - Non-Current $64,600,399 $64,600,399 172 Notes, Loans, & Mortgages Receivable - Non Current - Past 173 Grants Receivable - Non Current 174 Other Assets $644,941 $644,941 176 Investments in Joint Ventures $7,192,608 $7,192,608 180 Total Non-Current Assets $345,268,029 $0 $345,268,029

200 Deferred Outflow of Resources $11,753 $11,753

290 Total Assets and Deferred Outflow of Resources $532,573,865 -$8,339,972 $524,233,893

311 Bank Overdraft

107 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

312 Accounts Payable <= 90 Days $1,459,036 $1,459,036 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable $364,318 $364,318 322 Accrued Compensated Absences - Current Portion $560,377 $560,377 324 Accrued Contingency Liability 325 Accrued Interest Payable $1,618,835 $1,618,835 331 Accounts Payable - HUD PHA Programs $1,464 $1,464 332 Account Payable - PHA Projects $78,264 $78,264 333 Accounts Payable - Other Government $730,303 $730,303 341 Tenant Security Deposits $1,970,733 $1,970,733 342 Unearned Revenue $358,080 $358,080 343 Current Portion of Long-term Debt - Capital $4,758,191 $4,758,191 344 Current Portion of Long-term Debt - Operating Borrowings 345 Other Current Liabilities $1,647,955 $1,647,955 346 Accrued Liabilities - Other $44,067 $44,067 347 Inter Program - Due To $8,339,972 -$8,339,972 $0 348 Loan Liability - Current 310 Total Current Liabilities $21,931,595 -$8,339,972 $13,591,623

351 Long-term Debt, Net of Current - Capital Projects/Mortgage $122,256,284 $122,256,284 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other 354 Accrued Compensated Absences - Non Current $551,292 $551,292 355 Loan Liability - Non Current 356 FASB 5 Liabilities 357 Accrued Pension and OPEB Liabilities

108 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Balance Sheet Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

350 Total Non-Current Liabilities $122,807,576 $0 $122,807,576

300 Total Liabilities $144,739,171 -$8,339,972 $136,399,199

400 Deferred Inflow of Resources $11,333,306 $11,333,306

508.4 Net Investment in Capital Assets $153,603,277 $153,603,277 511.4 Restricted Net Position $87,766,419 $87,766,419 512.4 Unrestricted Net Position $135,131,692 $135,131,692 513 Total Equity - Net Assets / Position $376,501,388 $0 $376,501,388

600 Total Liabilities, Deferred Inflows of Resources and Equity - $532,573,865 -$8,339,972 $524,233,893

109 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

70300 Net Tenant Rental Revenue $2,329,873 $39,368 $4,730,980 70400 Tenant Revenue - Other $80,151 $60 $142,089 70500 Total Tenant Revenue $2,410,024 $0 $39,428 $0 $4,873,069

70600 HUD PHA Operating Grants $249,454 $24,375 $1,699,511 70610 Capital Grants $851,008 70710 Management Fee 70720 Asset Management Fee 70730 Book Keeping Fee 70740 Front Line Service Fee 70750 Other Fees 70700 Total Fee Revenue

70800 Other Government Grants $423,828 71100 Investment Income - Unrestricted $65,795 71200 Mortgage Interest Income 71300 Proceeds from Disposition of Assets Held for Sale 71310 Cost of Sale of Assets 71400 Fraud Recovery 71500 Other Revenue $15,466 $114,994 $1,700 $16,522 71600 Gain or Loss on Sale of Capital Assets -$47,629 72000 Investment Income - Restricted $2,159 70000 Total Revenue $3,544,118 $24,375 $1,853,933 $425,528 $4,891,750

91100 Administrative Salaries $185,364 $312,169 $100,158 $224,837

110 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

91200 Auditing Fees $4,883 $2,050 $467 $52,500 91300 Management Fee 91310 Book-keeping Fee 91400 Advertising and Marketing 91500 Employee Benefit contributions - Administrative $57,159 $101,876 $31,095 $71,487 91600 Office Expenses $228,873 $622 $153,760 $58,170 $522,779 91700 Legal Expense $34,000 $361 $7,884 91800 Travel $6,185 $4,493 $1,897 91810 Allocated Overhead 91900 Other 91000 Total Operating - Administrative $516,464 $622 $574,709 $191,787 $879,487

92000 Asset Management Fee 92100 Tenant Services - Salaries 92200 Relocation Costs 92300 Employee Benefit Contributions - Tenant Services 92400 Tenant Services - Other $9,996 92500 Total Tenant Services $9,996 $0 $0 $0 $0

93100 Water $175,960 $2,895 $2,622 $235,299 93200 Electricity $19,416 $1,118 $51 $32,133 93300 Gas $18,472 $742 $17 $13,318 93400 Fuel 93500 Labor 93600 Sewer 93700 Employee Benefit Contributions - Utilities

111 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

93800 Other Utilities Expense 93000 Total Utilities $213,848 $4,755 $2,690 $0 $280,750

94100 Ordinary Maintenance and Operations - Labor $170,985 $1,865 $242,069 94200 Ordinary Maintenance and Operations - Materials and $70,394 $858 $147,814 94300 Ordinary Maintenance and Operations Contracts $625,614 $18,998 $22,086 $764,336 94500 Employee Benefit Contributions - Ordinary Maintenance $52,000 $726 $71,198 94000 Total Maintenance $918,993 $18,998 $25,535 $0 $1,225,417

95100 Protective Services - Labor 95200 Protective Services - Other Contract Costs 95300 Protective Services - Other 95500 Employee Benefit Contributions - Protective Services 95000 Total Protective Services $0 $0 $0 $0 $0

96110 Property Insurance $143,485 $2,418 $210,728 96120 Liability Insurance 96130 Workmen's Compensation 96140 All Other Insurance 96100 Total insurance Premiums $143,485 $0 $2,418 $0 $210,728

96200 Other General Expenses $51,272 $643,561 $234,501 $639,641 96210 Compensated Absences 96300 Payments in Lieu of Taxes $206,774 $2,821 $219,240 96400 Bad debt - Tenant Rents $84,731 $23 $19,111 96500 Bad debt - Mortgages $38,908

112 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

96600 Bad debt - Other 96800 Severance Expense 96000 Total Other General Expenses $342,777 $0 $685,313 $234,501 $877,992

96710 Interest of Mortgage (or Bonds) Payable $637,028 96720 Interest on Notes Payable (Short and Long Term) 96730 Amortization of Bond Issue Costs $60,357 96700 Total Interest Expense and Amortization Cost $0 $0 $0 $0 $697,385

96900 Total Operating Expenses $2,145,563 $24,375 $1,290,665 $426,288 $4,171,759

97000 Excess of Operating Revenue over Operating Expenses $1,398,555 $0 $563,268 -$760 $719,991

97100 Extraordinary Maintenance $58,521 $198,148 97200 Casualty Losses - Non-capitalized 97300 Housing Assistance Payments 97350 HAP Portability-In 97400 Depreciation Expense $805,534 $11,584 $2,348,940 97500 Fraud Losses 97600 Capital Outlays - Governmental Funds 97700 Debt Principal Payment - Governmental Funds 97800 Dwelling Units Rent Expense 90000 Total Expenses $3,009,618 $24,375 $1,302,249 $426,288 $6,718,847

10010 Operating Transfer In 10020 Operating transfer Out

113 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

10030 Operating Transfers from/to Primary Government 10040 Operating Transfers from/to Component Unit 10050 Proceeds from Notes, Loans and Bonds 10060 Proceeds from Property Sales 10070 Extraordinary Items, Net Gain/Loss 10080 Special Items (Net Gain/Loss) 10091 Inter Project Excess Cash Transfer In 10092 Inter Project Excess Cash Transfer Out 10093 Transfers between Program and Project - In 10094 Transfers between Project and Program - Out 10100 Total Other financing Sources (Uses) $0 $0 $0 $0 $0

10000 Excess (Deficiency) of Total Revenue Over (Under) Total $534,500 $0 $551,684 -$760 -$1,827,097

11020 Required Annual Debt Principal Payments $0 $0 $0 $0 $143,454 11030 Beginning Equity $20,671,340 $0 $14,360,965 $810 $65,898,737 11040 Prior Period Adjustments, Equity Transfers and $0 11050 Changes in Compensated Absence Balance 11060 Changes in Contingent Liability Balance 11070 Changes in Unrecognized Pension Transition Liability 11080 Changes in Special Term/Severance Benefits Liability 11090 Changes in Allowance for Doubtful Accounts - Dwelling 11100 Changes in Allowance for Doubtful Accounts - Other 11170 Administrative Fee Equity

11180 Housing Assistance Payments Equity

114 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

11190 Unit Months Available 3848 48 5796 11210 Number of Unit Months Leased 3753 48 5680 11270 Excess Cash $4,652,314 11610 Land Purchases $0 11620 Building Purchases $851,008 11630 Furniture & Equipment - Dwelling Purchases $0 11640 Furniture & Equipment - Administrative Purchases $0 11650 Leasehold Improvements Purchases $0 11660 Infrastructure Purchases $0 13510 CFFP Debt Service Payments $0 13901 Replacement Housing Factor Funds $0

115 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

70300 Net Tenant Rental Revenue $3,561,555 $14,699,411 $13,533 70400 Tenant Revenue - Other $93,540 $1,165,005 70500 Total Tenant Revenue $3,655,095 $0 $15,864,416 $13,533 $0

70600 HUD PHA Operating Grants $8,976 70610 Capital Grants 70710 Management Fee 70720 Asset Management Fee 70730 Book Keeping Fee 70740 Front Line Service Fee 70750 Other Fees 70700 Total Fee Revenue

70800 Other Government Grants $616,411 $1,171,955 71100 Investment Income - Unrestricted $21,550 $1,093,952 $396,130 71200 Mortgage Interest Income $846 $1,261,269 71300 Proceeds from Disposition of Assets Held for Sale 71310 Cost of Sale of Assets 71400 Fraud Recovery 71500 Other Revenue $15,294 $7,460,651 $11,219,930 71600 Gain or Loss on Sale of Capital Assets -$126,852 $234,259 $285,986 72000 Investment Income - Restricted $239 $112,303 70000 Total Revenue $3,565,326 $8,976 $25,382,838 $13,533 $14,335,270

91100 Administrative Salaries $175,879 $2,894,045 $1,874 $549,897 91200 Auditing Fees $8,122 $21,559 $53 $12,738

116 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

91300 Management Fee 91310 Book-keeping Fee 91400 Advertising and Marketing 91500 Employee Benefit contributions - Administrative $56,229 $867,184 $561 $158,324 91600 Office Expenses $489,405 $892 $4,307,654 $1,062 $430,823 91700 Legal Expense $2,284 $33,378 $22,646 91800 Travel $13,354 $2 $1,224 91810 Allocated Overhead 91900 Other 91000 Total Operating - Administrative $731,919 $892 $8,137,174 $3,552 $1,175,652

92000 Asset Management Fee 92100 Tenant Services - Salaries $5,585 92200 Relocation Costs 92300 Employee Benefit Contributions - Tenant Services $2,499 92400 Tenant Services - Other $197,704 92500 Total Tenant Services $0 $8,084 $197,704 $0 $0

93100 Water $216,866 $470,861 $858 $5,365 93200 Electricity $20,210 $498,855 93300 Gas $7,640 $315,052 93400 Fuel 93500 Labor 93600 Sewer 93700 Employee Benefit Contributions - Utilities 93800 Other Utilities Expense

117 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

93000 Total Utilities $244,716 $0 $1,284,768 $858 $5,365

94100 Ordinary Maintenance and Operations - Labor $198,532 $967,780 $136 94200 Ordinary Maintenance and Operations - Materials and $110,691 $379,584 $23 $1,375 94300 Ordinary Maintenance and Operations Contracts $803,831 $2,531,051 $3,322 $28,567 94500 Employee Benefit Contributions - Ordinary Maintenance $63,612 $298,169 $57 94000 Total Maintenance $1,176,666 $0 $4,176,584 $3,538 $29,942

96110 Property Insurance $199,742 $484,133 $765 $351 96120 Liability Insurance 96130 Workmen's Compensation 96140 All Other Insurance 96100 Total insurance Premiums $199,742 $0 $484,133 $765 $351

96200 Other General Expenses $159,917 $205,036 $64 $857,613 96210 Compensated Absences 96300 Payments in Lieu of Taxes $168,790 $678,874 $947 96400 Bad debt - Tenant Rents $25,331 $17,489 96500 Bad debt - Mortgages $250,201 96600 Bad debt - Other $19,363

118 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

96800 Severance Expense 96000 Total Other General Expenses $354,038 $0 $901,399 $1,011 $1,127,177

96710 Interest of Mortgage (or Bonds) Payable $244,405 $3,065,538 $13,216 96720 Interest on Notes Payable (Short and Long Term) 96730 Amortization of Bond Issue Costs 96700 Total Interest Expense and Amortization Cost $244,405 $0 $3,065,538 $0 $13,216

96900 Total Operating Expenses $2,951,486 $8,976 $18,247,300 $9,724 $2,351,703

97000 Excess of Operating Revenue over Operating Expenses $613,840 $0 $7,135,538 $3,809 $11,983,567

97100 Extraordinary Maintenance $101,295 $704,523 97200 Casualty Losses - Non-capitalized 97300 Housing Assistance Payments $643,870 97350 HAP Portability-In 97400 Depreciation Expense $1,078,554 $4,613,477 $5,117 97500 Fraud Losses 97600 Capital Outlays - Governmental Funds 97700 Debt Principal Payment - Governmental Funds 97800 Dwelling Units Rent Expense 90000 Total Expenses $4,131,335 $8,976 $23,565,300 $14,841 $2,995,573

10010 Operating Transfer In $748,604 $6,918,112 $1,699,313 10020 Operating transfer Out -$9,347,923 10030 Operating Transfers from/to Primary Government

119 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

10040 Operating Transfers from/to Component Unit 10050 Proceeds from Notes, Loans and Bonds 10060 Proceeds from Property Sales 10070 Extraordinary Items, Net Gain/Loss 10080 Special Items (Net Gain/Loss) 10091 Inter Project Excess Cash Transfer In 10092 Inter Project Excess Cash Transfer Out 10093 Transfers between Program and Project - In 10094 Transfers between Project and Program - Out 10100 Total Other financing Sources (Uses) $748,604 $0 $6,918,112 $0 -$7,648,610

10000 Excess (Deficiency) of Total Revenue Over (Under) Total $182,595 $0 $8,735,650 -$1,308 $3,691,087

11020 Required Annual Debt Principal Payments $46,769 $0 $0 $0 $0 11030 Beginning Equity $16,588,335 $0 $143,544,615 $253,724 $88,866,948 11040 Prior Period Adjustments, Equity Transfers and $4,654,628 -$710,254 11050 Changes in Compensated Absence Balance 11060 Changes in Contingent Liability Balance 11070 Changes in Unrecognized Pension Transition Liability 11080 Changes in Special Term/Severance Benefits Liability 11090 Changes in Allowance for Doubtful Accounts - Dwelling 11100 Changes in Allowance for Doubtful Accounts - Other 11170 Administrative Fee Equity

11180 Housing Assistance Payments Equity 11190 Unit Months Available 4368 21072 12 1179

120 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.228 Community 14.896 PIH Family 6.2 Component Unit - 1 Business Activities Development Block Self-Sufficiency 2 State/Local Blended Grants/State's Program Program

11210 Number of Unit Months Leased 4208 20651 12 828 11270 Excess Cash 11610 Land Purchases 11620 Building Purchases 11630 Furniture & Equipment - Dwelling Purchases 11640 Furniture & Equipment - Administrative Purchases 11650 Leasehold Improvements Purchases 11660 Infrastructure Purchases 13510 CFFP Debt Service Payments 13901 Replacement Housing Factor Funds

121 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

70300 Net Tenant Rental Revenue 70400 Tenant Revenue - Other 70500 Total Tenant Revenue $0 $0 $0 $0 $0

70600 HUD PHA Operating Grants $233,496 $1,247,998 $22,313,730 $126,868 70610 Capital Grants 70710 Management Fee 70720 Asset Management Fee 70730 Book Keeping Fee 70740 Front Line Service Fee 70750 Other Fees 70700 Total Fee Revenue

70800 Other Government Grants $262,304 71100 Investment Income - Unrestricted $32,201 71200 Mortgage Interest Income $87,751 71300 Proceeds from Disposition of Assets Held for Sale 71310 Cost of Sale of Assets 71400 Fraud Recovery $103,903 71500 Other Revenue $4,960 $613,110 $1,071,550 71600 Gain or Loss on Sale of Capital Assets 72000 Investment Income - Restricted $8,822 70000 Total Revenue $233,496 $267,264 $1,957,681 $23,521,384 $126,868

91100 Administrative Salaries $1,721 $26,438 $60,217 $859,177 $2,076 91200 Auditing Fees $211 $464 $922 $25,706 $269

122 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

91300 Management Fee 91310 Book-keeping Fee 91400 Advertising and Marketing 91500 Employee Benefit contributions - Administrative $606 $9,142 $16,914 $340,433 $790 91600 Office Expenses $2,769 $23,540 $57,302 $1,035,360 $984 91700 Legal Expense $1,012 $7,307 91800 Travel $5 $2,626 $5,096 91810 Allocated Overhead 91900 Other 91000 Total Operating - Administrative $5,312 $59,584 $138,993 $2,273,079 $4,119

92000 Asset Management Fee 92100 Tenant Services - Salaries 92200 Relocation Costs 92300 Employee Benefit Contributions - Tenant Services 92400 Tenant Services - Other 92500 Total Tenant Services $0 $0 $0 $0 $0

93100 Water 93200 Electricity 93300 Gas 93400 Fuel 93500 Labor 93600 Sewer 93700 Employee Benefit Contributions - Utilities 93800 Other Utilities Expense

123 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

93000 Total Utilities $0 $0 $0 $0 $0

94100 Ordinary Maintenance and Operations - Labor 94200 Ordinary Maintenance and Operations - Materials and 94300 Ordinary Maintenance and Operations Contracts 94500 Employee Benefit Contributions - Ordinary Maintenance 94000 Total Maintenance $0 $0 $0 $0 $0

96110 Property Insurance 96120 Liability Insurance 96130 Workmen's Compensation 96140 All Other Insurance 96100 Total insurance Premiums $0 $0 $0 $0 $0

96200 Other General Expenses $210,725 $1,243,345 $122,749 96210 Compensated Absences 96300 Payments in Lieu of Taxes 96400 Bad debt - Tenant Rents 96500 Bad debt - Mortgages 96600 Bad debt - Other

124 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

96800 Severance Expense 96000 Total Other General Expenses $0 $210,725 $1,243,345 $0 $122,749

96710 Interest of Mortgage (or Bonds) Payable 96720 Interest on Notes Payable (Short and Long Term) 96730 Amortization of Bond Issue Costs 96700 Total Interest Expense and Amortization Cost $0 $0 $0 $0 $0

96900 Total Operating Expenses $5,312 $270,309 $1,382,338 $2,273,079 $126,868

97000 Excess of Operating Revenue over Operating Expenses $228,184 -$3,045 $575,343 $21,248,305 $0

97100 Extraordinary Maintenance 97200 Casualty Losses - Non-capitalized 97300 Housing Assistance Payments $228,184 $20,257,346 97350 HAP Portability-In $996,883 97400 Depreciation Expense $1,250 97500 Fraud Losses 97600 Capital Outlays - Governmental Funds 97700 Debt Principal Payment - Governmental Funds 97800 Dwelling Units Rent Expense 90000 Total Expenses $233,496 $270,309 $1,382,338 $23,528,558 $126,868

10010 Operating Transfer In 10020 Operating transfer Out -$18,106 10030 Operating Transfers from/to Primary Government

125 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

10000 Excess (Deficiency) of Total Revenue Over (Under) Total $0 -$3,045 $575,343 -$25,280 $0

11020 Required Annual Debt Principal Payments $0 $0 $0 $0 $0 11030 Beginning Equity $0 $3,045 $7,946,050 $1,972,513 $0 11040 Prior Period Adjustments, Equity Transfers and 11050 Changes in Compensated Absence Balance 11060 Changes in Contingent Liability Balance 11070 Changes in Unrecognized Pension Transition Liability 11080 Changes in Special Term/Severance Benefits Liability 11090 Changes in Allowance for Doubtful Accounts - Dwelling 11100 Changes in Allowance for Doubtful Accounts - Other 11170 Administrative Fee Equity $1,941,423

11180 Housing Assistance Payments Equity $5,810 11190 Unit Months Available 276 31596

126 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.239 HOME 93.568 Low-Income 14.231 Emergency 14.267 Continuum of Investment 14.871 Housing Home Energy Shelter Grants Care Program Partnerships Program Choice Vouchers Assistance Program

11210 Number of Unit Months Leased 276 30925 11270 Excess Cash 11610 Land Purchases 11620 Building Purchases 11630 Furniture & Equipment - Dwelling Purchases 11640 Furniture & Equipment - Administrative Purchases 11650 Leasehold Improvements Purchases 11660 Infrastructure Purchases 13510 CFFP Debt Service Payments 13901 Replacement Housing Factor Funds

127 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

70300 Net Tenant Rental Revenue 70400 Tenant Revenue - Other 70500 Total Tenant Revenue $0 $0 $0 $0 $0

70600 HUD PHA Operating Grants $302,478 $16,386 $31,729 $40,316 70610 Capital Grants 70710 Management Fee 70720 Asset Management Fee 70730 Book Keeping Fee 70740 Front Line Service Fee 70750 Other Fees 70700 Total Fee Revenue

70800 Other Government Grants $20,151 71100 Investment Income - Unrestricted 71200 Mortgage Interest Income 71300 Proceeds from Disposition of Assets Held for Sale 71310 Cost of Sale of Assets 71400 Fraud Recovery 71500 Other Revenue 71600 Gain or Loss on Sale of Capital Assets 72000 Investment Income - Restricted 70000 Total Revenue $302,478 $16,386 $31,729 $40,316 $20,151

91100 Administrative Salaries $184,045 $1,531 $17,399 $246 $2,981 91200 Auditing Fees $14

128 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

91300 Management Fee 91310 Book-keeping Fee 91400 Advertising and Marketing 91500 Employee Benefit contributions - Administrative $77,284 $612 $6,684 $82 $915 91600 Office Expenses $37,002 $959 $7,646 $439 $12,478 91700 Legal Expense $4,147 91800 Travel $3,579 91810 Allocated Overhead 91900 Other 91000 Total Operating - Administrative $302,478 $3,116 $31,729 $767 $19,953

93100 Water 93200 Electricity 93300 Gas 93400 Fuel 93500 Labor 93600 Sewer 93700 Employee Benefit Contributions - Utilities 93800 Other Utilities Expense

129 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

93000 Total Utilities $0 $0 $0 $0 $0

96110 Property Insurance 96120 Liability Insurance 96130 Workmen's Compensation 96140 All Other Insurance 96100 Total insurance Premiums $0 $0 $0 $0 $0

96200 Other General Expenses $198 96210 Compensated Absences 96300 Payments in Lieu of Taxes 96400 Bad debt - Tenant Rents 96500 Bad debt - Mortgages 96600 Bad debt - Other

130 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

96800 Severance Expense 96000 Total Other General Expenses $0 $0 $0 $0 $198

96900 Total Operating Expenses $302,478 $3,116 $31,729 $767 $20,151

97000 Excess of Operating Revenue over Operating Expenses $0 $13,270 $0 $39,549 $0

97100 Extraordinary Maintenance 97200 Casualty Losses - Non-capitalized 97300 Housing Assistance Payments $9,373 $15,843 97350 HAP Portability-In 97400 Depreciation Expense 97500 Fraud Losses 97600 Capital Outlays - Governmental Funds 97700 Debt Principal Payment - Governmental Funds 97800 Dwelling Units Rent Expense 90000 Total Expenses $302,478 $12,489 $31,729 $16,610 $20,151

10010 Operating Transfer In 10020 Operating transfer Out 10030 Operating Transfers from/to Primary Government

131 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

10000 Excess (Deficiency) of Total Revenue Over (Under) Total $0 $3,897 $0 $23,706 $0

11020 Required Annual Debt Principal Payments $0 $0 $0 $0 $0 11030 Beginning Equity $0 $8,960 $0 $0 $0 11040 Prior Period Adjustments, Equity Transfers and 11050 Changes in Compensated Absence Balance 11060 Changes in Contingent Liability Balance 11070 Changes in Unrecognized Pension Transition Liability 11080 Changes in Special Term/Severance Benefits Liability 11090 Changes in Allowance for Doubtful Accounts - Dwelling 11100 Changes in Allowance for Doubtful Accounts - Other 11170 Administrative Fee Equity

11180 Housing Assistance Payments Equity 11190 Unit Months Available 48 120

132 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

14.249 Section 8 Moderate 14.169 Housing 14.HCC HCV CARES 14.879 Mainstream 8 Other Federal Rehabilitation Single Counseling Act Funding Vouchers Program 1 Room Occupancy Assistance Program

11210 Number of Unit Months Leased 48 20 11270 Excess Cash 11610 Land Purchases 11620 Building Purchases 11630 Furniture & Equipment - Dwelling Purchases 11640 Furniture & Equipment - Administrative Purchases 11650 Leasehold Improvements Purchases 11660 Infrastructure Purchases 13510 CFFP Debt Service Payments 13901 Replacement Housing Factor Funds

133 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

70300 Net Tenant Rental Revenue $25,374,720 $25,374,720 70400 Tenant Revenue - Other $1,480,845 $1,480,845 70500 Total Tenant Revenue $26,855,565 $0 $26,855,565

70600 HUD PHA Operating Grants $26,295,317 $26,295,317 70610 Capital Grants $851,008 $851,008 70710 Management Fee 70720 Asset Management Fee 70730 Book Keeping Fee 70740 Front Line Service Fee 70750 Other Fees 70700 Total Fee Revenue $0 $0 $0

70800 Other Government Grants $2,494,649 $2,494,649 71100 Investment Income - Unrestricted $1,609,628 $1,609,628 71200 Mortgage Interest Income $1,349,866 -$186,533 $1,163,333 71300 Proceeds from Disposition of Assets Held for Sale 71310 Cost of Sale of Assets 71400 Fraud Recovery $103,903 $103,903 71500 Other Revenue $20,534,177 -$5,292,055 $15,242,122 71600 Gain or Loss on Sale of Capital Assets $345,764 $345,764 72000 Investment Income - Restricted $123,523 $123,523 70000 Total Revenue $80,563,400 -$5,478,588 $75,084,812

91100 Administrative Salaries $5,600,054 $5,600,054 91200 Auditing Fees $129,958 $129,958

134 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

91300 Management Fee 91310 Book-keeping Fee 91400 Advertising and Marketing 91500 Employee Benefit contributions - Administrative $1,797,377 $1,797,377 91600 Office Expenses $7,372,519 -$5,170,999 $2,201,520 91700 Legal Expense $113,019 $113,019 91800 Travel $38,461 $38,461 91810 Allocated Overhead 91900 Other 91000 Total Operating - Administrative $15,051,388 -$5,170,999 $9,880,389

92000 Asset Management Fee 92100 Tenant Services - Salaries $5,585 $5,585 92200 Relocation Costs 92300 Employee Benefit Contributions - Tenant Services $2,499 $2,499 92400 Tenant Services - Other $207,700 $207,700 92500 Total Tenant Services $215,784 $0 $215,784

93100 Water $1,110,726 $1,110,726 93200 Electricity $571,783 $571,783 93300 Gas $355,241 $355,241 93400 Fuel 93500 Labor 93600 Sewer 93700 Employee Benefit Contributions - Utilities 93800 Other Utilities Expense

135 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

93000 Total Utilities $2,037,750 $0 $2,037,750

94100 Ordinary Maintenance and Operations - Labor $1,581,367 $1,581,367 94200 Ordinary Maintenance and Operations - Materials and $710,739 $710,739 94300 Ordinary Maintenance and Operations Contracts $4,797,805 $4,797,805 94500 Employee Benefit Contributions - Ordinary Maintenance $485,762 $485,762 94000 Total Maintenance $7,575,673 $0 $7,575,673

96110 Property Insurance $1,041,622 $1,041,622 96120 Liability Insurance 96130 Workmen's Compensation 96140 All Other Insurance 96100 Total insurance Premiums $1,041,622 $0 $1,041,622

96200 Other General Expenses $4,368,622 -$121,056 $4,247,566 96210 Compensated Absences 96300 Payments in Lieu of Taxes $1,277,446 $1,277,446 96400 Bad debt - Tenant Rents $146,685 $146,685 96500 Bad debt - Mortgages $289,109 $289,109 96600 Bad debt - Other $19,363 $19,363

136 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

96800 Severance Expense 96000 Total Other General Expenses $6,101,225 -$121,056 $5,980,169

96710 Interest of Mortgage (or Bonds) Payable $3,960,187 -$186,533 $3,773,654 96720 Interest on Notes Payable (Short and Long Term) 96730 Amortization of Bond Issue Costs $60,357 $60,357 96700 Total Interest Expense and Amortization Cost $4,020,544 -$186,533 $3,834,011

96900 Total Operating Expenses $36,043,986 -$5,478,588 $30,565,398

97000 Excess of Operating Revenue over Operating Expenses $44,519,414 $0 $44,519,414

97100 Extraordinary Maintenance $1,062,487 $1,062,487 97200 Casualty Losses - Non-capitalized 97300 Housing Assistance Payments $21,154,616 $21,154,616 97350 HAP Portability-In $996,883 $996,883 97400 Depreciation Expense $8,864,456 $8,864,456 97500 Fraud Losses 97600 Capital Outlays - Governmental Funds 97700 Debt Principal Payment - Governmental Funds 97800 Dwelling Units Rent Expense 90000 Total Expenses $68,122,428 -$5,478,588 $62,643,840

10010 Operating Transfer In $9,366,029 -$9,366,029 $0 10020 Operating transfer Out -$9,366,029 $9,366,029 $0 10030 Operating Transfers from/to Primary Government

137 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

10000 Excess (Deficiency) of Total Revenue Over (Under) Total $12,440,972 $0 $12,440,972

11020 Required Annual Debt Principal Payments $190,223 $190,223 11030 Beginning Equity $360,116,042 $360,116,042 11040 Prior Period Adjustments, Equity Transfers and $3,944,374 $3,944,374 11050 Changes in Compensated Absence Balance 11060 Changes in Contingent Liability Balance 11070 Changes in Unrecognized Pension Transition Liability 11080 Changes in Special Term/Severance Benefits Liability 11090 Changes in Allowance for Doubtful Accounts - Dwelling 11100 Changes in Allowance for Doubtful Accounts - Other 11170 Administrative Fee Equity $1,941,423 $1,941,423

11180 Housing Assistance Payments Equity $5,810 $5,810 11190 Unit Months Available 68363 68363

138 DAKOTA COUNTY CDA (MN147) Eagan, MN Entity Wide Revenue and Expense Summary

Submission Type: Audited/Single Audit Fiscal Year End: 06/30/2020

Subtotal ELIM Total

11210 Number of Unit Months Leased 66449 66449 11270 Excess Cash $4,652,314 $4,652,314 11610 Land Purchases $0 $0 11620 Building Purchases $851,008 $851,008 11630 Furniture & Equipment - Dwelling Purchases $0 $0 11640 Furniture & Equipment - Administrative Purchases $0 $0 11650 Leasehold Improvements Purchases $0 $0 11660 Infrastructure Purchases $0 $0 13510 CFFP Debt Service Payments $0 $0 13901 Replacement Housing Factor Funds $0 $0

139 Dakota County Community Development Agency Combining Schedule of Net Position - Business Activities June 30, 2020

Total Senior Gateway Lincoln Real Estate Internal Business Housing Place Place Operations Service Activities Assets and Deferred Outflows of Resources Current assets: Cash and cash equivalents $ 22,310,148 $ (241,106) $ 82,558 $ 41,514,528 $ 7,062,114 $ 70,728,242 Investments ‐ ‐ ‐ 17,282,222 ‐ 17,282,222 Restricted cash and cash equivalents 12,872,740 ‐ 9,090 ‐ ‐ 12,881,830 Restricted investments ‐ ‐ ‐ ‐ ‐ ‐ Accounts receivable ‐ tenants 45,457 ‐ 7,116 ‐ ‐ 52,573 Accounts receivable ‐ other 2,022 ‐ ‐ 1,349,363 10,615 1,362,000 Due from other governments 85,075 ‐ 563,449 1,702 650,226 Interest receivable ‐ investments 25 ‐ ‐ 34,916 1 34,942 Other current assets ‐ ‐ ‐ 2,654,017 ‐ 2,654,017 Prepaid items 406,270 ‐ 10,829 ‐ 46,930 464,029 Total current assets 35,721,737 (241,106) 673,042 62,835,046 7,121,362 106,110,081

Noncurrent assets: Notes and mortgages receivable, net of 18,097 ‐ ‐ ‐ ‐ 18,097 allowance for loan losses Capital assets not being depreciated: Land 18,629,981 646,800 584,353 ‐ 428,622 20,289,756 Construction in progress ‐ 241,106 ‐ ‐ ‐ 241,106 Capital assets (net of accumulated depreciation): Land improvements 783,861 ‐ 19,331 ‐ 68,636 871,828 Buildings 107,803,684 ‐ 2,557,933 ‐ 2,468,017 112,829,634 Furniture and equipment 481,522 ‐ ‐ ‐ 239,410 720,932 Total noncurrent assets 127,717,145 887,906 3,161,617 ‐ 3,204,685 134,971,353 Total assets 163,438,882 646,800 3,834,659 62,835,046 10,326,047 241,081,434

Deferred outflow of resources 11,753 ‐ ‐ ‐ 11,753 Total assets and deferred outflows of resources $ 163,450,635 $ 646,800 $ 3,834,659 $ 62,835,046 $ 10,326,047 $ 241,093,187

140 Dakota County Community Development Agency Combining Schedule of Net Position ‐ Business Activities June 30, 2020

Total Senior Gateway Lincoln Real Estate Internal Business Housing Place Place Operations Service Activities Liabilities, Deferred Inflows of Resources and Net Position Current liabilities: Accounts payable $ 698,171 $ ‐ $ 17,724 $ 6,424 $ 158,169 $ 880,488 Accrued payroll and benefits 41,044 ‐ 763 20,706 231,145 293,658 Other current liabilities 293 ‐ 125 (3,000,000) 4,999,999 2,000,417 Security deposits payable 1,091,801 ‐ 8,914 ‐ 5,000 1,105,715 Due to other governments 328,875 ‐ 2,748 ‐ (3,676) 327,947 Accrued interest payable 1,618,835 ‐ ‐ ‐ ‐ 1,618,835 Accrued compensated absences ‐ ‐ ‐ ‐ 560,377 560,377 Current portion of long‐term debt 3,490,000 ‐ ‐ ‐ ‐ 3,490,000 Unearned revenue 147,259 ‐ 639 ‐ 16,236 164,134 Total current liabilities 7,416,278 ‐ 30,913 (2,972,870) 5,967,250 10,441,571

Noncurrent liabilities Accrued compensated absences ‐ ‐ ‐ ‐ 551,292 551,292 Notes payable, net of current portion ‐ ‐ 4,221,029 ‐ ‐ 4,221,029 Bonds payable 73,599,030 ‐ ‐ ‐ ‐ 73,599,030 Total noncurrent liabilities 73,599,030 ‐ 4,221,029 ‐ 551,292 78,371,351 Total liabilities 81,015,308 ‐ 4,251,942 (2,972,870) 6,518,542 88,812,922

Deferred inflow of resources ‐ ‐ ‐ ‐ ‐ ‐ Total liabilities and deferred inflows of resources 81,015,308 ‐ 4,251,942 (2,972,870) 6,518,542 88,812,922

Net position: Net investment in capital assets 55,860,081 646,800 (1,059,412) ‐ 3,204,685 58,652,154 Restricted for capital projects 12,804,977 ‐ 563,448 ‐ ‐ 13,368,425 Unrestricted 13,770,269 ‐ 78,681 65,807,916 602,820 80,259,686 Total net position 82,435,327 646,800 (417,283) 65,807,916 3,807,505 152,280,265 Total liabilities, deferred inflows of resources and net position$ 163,450,635 $ 646,800 $ 3,834,659 $ 62,835,046 $ 10,326,047 $ 241,093,187

141 Dakota County Community Development Agency Combining Schedule of Revenues, Expenses, and Changes in Net Position Combining Schedule ‐ Business Activities Year Ended June 30, 2020

Total Senior Gateway Lincoln Real Estate Internal Business Housing Place Place Operations Service Activities Operating revenues: Dwelling rents $ 14,544,179 $ ‐ $ 155,232 $ ‐ $ ‐ $ 14,699,411 Operating subsidies and grants 466,410 ‐ 150,000 ‐ ‐ 616,410 Other 1,183,736 ‐ 7,111 4,331,203 3,104,453 8,626,503 Total revenues 16,194,325 ‐ 312,343 4,331,203 3,104,453 23,942,324

Operating expenses: Administrative 3,166,880 ‐ 49,931 2,195,045 2,725,318 8,137,174 Tenant services 97,704 ‐ 100,000 ‐ ‐ 197,704 Utilities 1,197,176 ‐ 32,556 ‐ 55,036 1,284,768 Ordinary maintenance and operation 3,975,873 ‐ 81,020 12,929 106,762 4,176,584 General expense 1,308,048 ‐ 16,310 23,743 37,431 1,385,532 Nonroutine maintenance 693,604 ‐ 10,919 ‐ ‐ 704,523 Depreciation 4,320,222 ‐ 97,661 ‐ 195,594 4,613,477 Total operating expenses 14,759,507 ‐ 388,397 2,231,717 3,120,141 20,499,762 Operating income (loss) 1,434,818 ‐ (76,054) 2,099,486 (15,688) 3,442,562

Nonoperating revenues (expenses): Investment earnings 373,744 ‐ 10,502 695,776 126,233 1,206,255 Interest expense (3,064,738) ‐ (800) ‐ ‐ (3,065,538) Gain (loss) on disposal of capital assets 234,259 ‐ ‐ ‐ ‐ 234,259 Total nonoperating revenues (expenses) (2,456,735) ‐ 9,702 695,776 126,233 (1,625,024) Income (loss) before contributions (1,021,917) ‐ (66,352) 2,795,262 110,545 1,817,538

Capital contributions/internal transfers 5,742,112 646,800 529,200 ‐ ‐ 6,918,112 Change in net position 4,720,195 646,800 462,848 2,795,262 110,545 8,735,650 Total net position ‐ beginning 77,715,132 ‐ (880,131) 63,012,654 3,696,960 143,544,615 Total net position ‐ ending $ 82,435,327 $ 646,800 $ (417,283) $ 65,807,916 $ 3,807,505 $ 152,280,265

142 143 Statistical Section

This part of the Dakota County Community Development Agency’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the CDA’s overall financial health.

Contents Page

Financial Trends 121 These schedules contain trend information to help the reader understand how the CDA’s financial performance and well‐being have changed over time.

Revenue Capacity 123 These schedules contain information to help the reader assess the CDA’s most significant local revenue sources, property tax and rental revenues.

Debt Capacity 128 These schedules present information to help the reader assess the affordability of the CDA’s current levels of outstanding debt and the CDA’s ability to issue additional debt in the future.

Demographic and Economic Information 130

These schedules offer demographic and economic indicators to help the reader understand the environment within which the CDA’s financial activities take place and to help make comparisons over time.

Operating Information 132 These schedules contain information about the CDA’s operations and resources to help the reader understand how the CDA’s financial information relates to the services the CDA provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

144 145 Dakota County Community Development Agency Net Position by Component Last Ten Fiscal Years (accrual basis of accounting)

Invested in Fiscal Year Capital Assets Restricted Unrestricted Total 2011 $ 78,312,202 $ 52,565,562 $ 75,886,912 $ 206,764,676 2012 82,152,316 54,930,480 83,239,572 220,322,368 2013 81,612,927 61,288,925 86,865,611 229,767,463 2014 84,988,917 62,251,756 97,038,422 244,279,095 2015 89,380,592 60,449,437 103,144,207 252,974,236 2016 92,249,133 58,413,028 110,772,169 261,434,330 2017 97,672,468 64,440,381 112,797,004 274,909,853 2018 98,375,590 66,967,555 117,964,802 283,307,947 2019 97,768,709 71,968,446 124,480,150 294,217,305 2020 $ 102,120,878 $ 75,268,971 $ 135,039,899 $ 312,429,748

146 Dakota County Community Development Agency Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)

Fiscal Year Ending 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Operating revenue: Charges for services $ 16,456,038 $ 16,618,820 $ 19,204,733 $ 21,418,622 $ 22,166,735 $ 21,527,263 $ 24,781,740 $ 18,921,016 $ 19,506,696 $ 20,643,740 Operating grants and contributions 34,449,663 26,391,926 24,503,052 26,312,388 24,417,358 27,359,700 29,440,325 26,584,439 28,488,699 29,640,974 Taxes and tax increments 10,773,890 8,897,211 8,751,536 7,793,388 8,123,165 8,242,384 8,542,946 9,125,928 9,532,762 10,312,761 Other ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6,175,953 6,539,874 7,518,831 Total operating revenue 61,679,591 51,907,957 52,459,321 55,524,398 54,707,258 57,129,347 62,765,011 60,807,336 64,068,031 68,116,306

Operating expense: Administrative ‐ ‐ ‐ ‐ ‐ ‐ ‐ 8,040,592 8,482,269 9,000,902 Tenant services ‐ ‐ ‐ ‐ ‐ ‐ ‐ 149,598 200,567 215,784 Utilities ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,915,125 1,694,485 1,757,000 Ordinary maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,451,803 5,788,842 6,350,256 General expense ‐ ‐ ‐ ‐ ‐ ‐ ‐ 7,740,659 8,665,611 5,933,071 Depreciation ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6,345,145 6,320,814 6,515,516 Nonroutine maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,238,418 1,012,674 864,339 Housing assiistance payments ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20,230,211 20,126,405 22,151,499 Governmental activities 11,175,493 6,566,454 9,516,743 9,542,673 9,932,215 9,491,189 9,710,148 ‐ ‐ ‐ Business activities 31,925,139 32,220,612 36,173,980 36,266,378 38,846,906 40,700,893 44,470,544 ‐ ‐ ‐ Total operating expense 43,100,632 38,787,066 45,690,723 45,809,051 48,779,121 50,192,082 54,180,692 51,111,551 52,291,667 52,788,367 Operating income (loss) 18,578,959 13,120,891 6,768,598 9,715,347 5,928,137 6,937,265 8,584,319 9,695,785 11,776,364 15,327,939

Nonoperating revenues (expenses): Investment earnings 343,651 316,807 105,064 606,434 526,561 817,637 662,688 1,325,113 2,559,754 1,730,992 Interest expense ‐ ‐ ‐ ‐ ‐ ‐ ‐ (3,370,134) (3,264,941) (3,136,626) Gain (loss) on disposal of capital assets ‐ ‐ ‐ ‐ ‐ ‐ ‐ (503,784) (161,819) 345,764 Total nonoperating revenues (expenses) 343,651 316,807 105,064 606,434 526,561 817,637 662,688 (2,548,805) (867,006) (1,059,870) Net gain/loss 18,922,610 13,437,698 6,873,662 10,321,781 6,454,698 7,754,902 9,247,007 7,146,980 10,909,358 14,268,069

Capital contributions 1,142,458 877,276 2,571,433 4,189,851 2,240,443 705,192 4,228,516 1,251,114 ‐ 3,944,374 Change in net position 20,065,068 14,314,974 9,445,095 14,511,632 8,695,141 8,460,094 13,475,523 8,398,094 10,909,358 18,212,443

Note: The CDA elected to change the presentation of its financial statements to a single business activity for the fiscal year ended June 30, 2018. As a result, revenues and expenses may be categorized differently than in prior fiscal years. Prior fiscal years were not restated.

147 Dakota County Community Development Agency Assessed and Estimated Actual Value of Taxable Property Last Ten Calendar Years

Real Property Personal Property Total % of Total Total Assessed to Year Assessed * Estimated Assessed Estimated Assessed Estimated Direct Total Estimated Assessed Value Market Value Value Market Value Value Market Value Tax Rate** Market Value 2010 442,537,353 37,854,672,500 7,877,537 405,057,500 450,414,890 38,259,730,000 0.01692 1.2% 2011 411,472,047 34,893,431,896 8,111,805 417,754,800 419,583,852 35,311,186,696 0.01718 1.2% 2012 391,453,804 33,032,629,112 8,488,045 436,668,024 399,941,849 33,469,297,136 0.01724 1.2% 2013 402,125,071 34,109,574,007 8,665,752 445,586,670 410,790,823 34,555,160,677 0.01664 1.2% 2014 434,588,066 37,249,751,955 9,073,792 465,663,370 443,661,858 37,715,415,325 0.01650 1.2% 2015 454,661,066 39,093,256,221 9,845,321 504,162,445 464,506,387 39,597,418,666 0.01559 1.2% 2016 471,286,219 40,645,907,860 10,787,023 552,044,681 482,073,242 41,197,952,541 0.01547 1.2% 2017 507,139,039 43,796,489,603 11,400,448 582,982,924 518,539,487 44,379,472,527 0.01548 1.2% 2018 547,666,437 47,405,446,930 11,603,384 593,137,563 559,269,821 47,998,584,493 0.01479 1.2% 2019 589,610,832 51,055,156,039 11,572,869 591,828,463 601,183,701 51,646,984,502 0.01479 1.2%

Estimated Market Value-Real and Personal Property

60.00

50.00

40.00

30.00

Billions $ 20.00

10.00

- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

* Valuations are determined as of January 1 of the year preceding the tax collection year. Amounts are shown for the year in which taxes are payable. Assessed value is prior to Fiscal Disparity and Tax Increment District Adjustments. ** This is the Direct Tax Capacity Rate for the Dakota County Community Development Agency

Data Source: Dakota County Minnesota 2019 CAFR

148 Dakota County Community Development Agency Direct and Overlapping Governments Tax Capacity Rates Last Ten Calendar Years

Governments 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 COUNTY Dakota County 0.27269 0.29149 0.31426 0.33421 0.33745 0.29633 0.28570 0.28004 0.26580 0.25386 CITIES Apple Valley 0.39867 0.42388 0.44110 0.49210 0.47891 0.45274 0.44721 0.44473 0.42475 0.39603 Burnsville 0.38566 0.42598 0.43213 0.47021 0.46670 0.44790 0.46525 0.46557 0.43552 0.43595 Coates 0.16605 0.14343 0.18984 0.22842 0.19507 0.20081 0.17482 0.17490 0.17399 0.15688 Eagan 0.30408 0.33675 0.34553 0.38272 0.38250 0.36525 0.37097 0.37385 0.36378 0.35227 Farmington 0.49274 0.55733 0.63093 0.66821 0.65876 0.61455 0.59239 0.58760 0.57161 0.54372 Hampton 0.32859 0.34774 0.48625 0.47055 0.44221 0.46932 0.42776 0.45342 0.40813 0.34468 Hastings 0.52677 0.55195 0.66083 0.68547 0.66246 0.62581 0.63577 0.62518 0.60864 0.59612 Inver Grove Heights 0.41757 0.43169 0.44883 0.46312 0.46128 0.48131 0.49266 0.51644 0.51112 0.53537 Lakeville 0.36624 0.38250 0.39051 0.41234 0.40696 0.38948 0.38669 0.37510 0.36419 0.35607 Lilydale 0.47297 0.31115 0.35128 0.35556 0.34570 0.32619 0.30133 0.30276 0.28772 0.27155 Mendota 0.38429 0.45860 0.46652 0.47239 0.46518 0.46806 0.49808 0.44384 0.51502 0.27453 Mendota Heights 0.28061 0.29758 0.32057 0.34479 0.34737 0.34964 0.35247 0.37487 0.37826 0.39294 Miesville 0.24904 0.27223 0.33151 0.34670 0.32952 0.32255 0.31950 0.31635 0.30821 0.29797 New Trier 0.44344 0.47895 0.54663 0.56659 0.61658 0.55227 0.52333 0.67619 0.53348 0.58132 Northfield 0.40370 0.43889 0.50947 0.61901 0.59785 0.56750 0.57552 0.55667 0.57164 0.56216 Randolph 0.17773 0.25048 0.30476 0.32743 0.36865 0.26076 0.26284 0.28171 0.24722 0.21488 Rosemount 0.43358 0.44661 0.46994 0.48862 0.47676 0.45152 0.43149 0.41832 0.40961 0.39355 South St. Paul 0.41428 0.48374 0.56466 0.63280 0.60901 0.60405 0.64693 0.63853 0.64041 0.64582 Sunfish Lake 0.18625 0.20671 0.23677 0.27800 0.26775 0.23869 0.25558 0.26178 0.26168 0.26206 Vermillion 0.38845 0.40864 0.48251 0.51193 0.47656 0.47954 0.41978 0.48789 0.41866 0.46032 West St. Paul 0.50873 0.56078 0.62205 0.69447 0.71249 0.70642 0.69795 0.71412 0.69287 0.28780 TOWNSHIPS Castle Rock 0.12109 0.13187 0.14779 0.15622 0.14310 0.12364 0.12161 0.12145 0.12259 0.39603 Douglas 0.17439 0.15358 0.20791 0.22376 0.18733 0.18509 0.15701 0.15190 0.22048 0.16226 Empire 0.27764 0.27953 0.30845 0.31746 0.31164 0.29823 0.29445 0.29462 0.29892 0.27430 Eureka 0.17262 0.16951 0.18544 0.16861 0.15362 0.14688 0.13672 0.14463 0.14534 0.13685 Greenvale 0.11828 0.12597 0.12507 0.1922 0.17982 0.18013 0.17263 0.17123 0.16966 0.16868 Hampton 0.12496 0.17815 0.18002 0.17613 0.15415 0.14439 0.14581 0.13322 0.13514 0.12713 Marshan 0.13143 0.13837 0.16292 0.14877 0.13995 0.12860 0.12635 0.16613 0.16708 0.15110 Nininger 0.13430 0.14261 0.15208 0.15121 0.16384 0.16495 0.15829 0.16477 0.15484 0.15261 Randolph 0.05304 0.05576 0.06626 0.07444 0.08004 0.08665 0.08940 0.07345 0.09617 0.08630 Ravenna 0.13610 0.13756 0.15104 0.17773 0.20128 0.17452 0.18196 0.18164 0.17242 0.16870 Sciota 0.15830 0.17164 0.17412 0.17239 0.15021 0.13745 0.10887 0.07750 0.11892 0.13674 Vermillion 0.16629 0.17605 0.18664 0.19555 0.17466 0.17214 0.16724 0.16279 0.16282 0.15723 Waterford 0.09456 0.11311 0.13769 0.13640 0.13493 0.11909 0.16816 0.17375 0.28812 0.28780 SCHOOL DISTRICTS 6 0.26807 0.30681 0.32306 0.35478 0.44522 0.35881 0.36719 0.35868 0.31367 0.29622 191 0.20668 0.21854 0.21881 0.26168 0.25661 0.24554 0.31065 0.27529 0.25759 0.26202 192 0.53452 0.52157 0.55308 0.57226 0.56326 0.53474 0.57584 0.54269 0.52825 0.51401 194 0.27714 0.32138 0.32061 0.33535 0.33048 0.31459 0.35319 0.32914 0.32992 0.32535 195 0.18547 0.20126 0.20823 0.19114 0.18001 0.16685 0.18661 0.17065 0.17509 0.19879 196 0.25391 0.26959 0.28440 0.27956 0.27606 0.23271 0.24317 0.23336 0.21352 0.20613 197 0.18850 0.19692 0.21857 0.24429 0.23863 0.24063 0.22170 0.22295 0.21224 0.24246 199 0.21795 0.24679 0.28363 0.27556 0.33418 0.34864 0.30272 0.28572 0.26680 0.26537 200 0.20206 0.22140 0.25435 0.23932 0.23052 0.20965 0.20938 0.20305 0.20545 0.19079 252 0.18868 0.20850 0.22379 0.24555 0.23940 0.24900 0.28498 0.26310 0.24453 0.24663 659 0.30528 0.34380 0.34166 0.38435 0.36410 0.34064 0.32847 0.30937 0.33150 0.31216 SPECIAL DISTRICTS Watershed M 0.00531 0.00266 0.00440 0.00642 0.00748 0.00679 0.00691 0.00745 0.00712 0.00664 Watershed V 0.00566 0.00555 0.00541 0.00543 0.00545 0.00466 0.00449 0.00449 0.00429 0.00403 Transit District 0.01166 0.01215 0.01375 0.01458 0.01377 0.01292 0.01261 0.01215 0.01104 0.01244 Mosquito Control 0.00481 0.00493 0.00553 0.00573 0.00548 0.00518 0.00491 0.00475 0.00443 0.00435 Metro Council 0.00826 0.00829 0.00968 0.01223 0.01015 0.00827 0.00958 0.00878 0.00821 0.00666 Dakota County CDA 0.01692 0.01718 0.01724 0.01664 0.01650 0.01559 0.01547 0.01548 0.01479 0.01479 Burnsville EDA 0.00607 0.00722 0.00806 0.00906 0.00889 0.00860 0.00891 0.00897 0.00955 0.00924 Hastings HRA 0.01510 0.01487 0.01640 0.01428 0.01613 0.01379 0.01551 0.01500 0.01454 0.01453 Northfield EDA 0.01651 0.01761 0.01728 0.01801 0.01716 0.01697 0.01702 0.01638 0.01624 0.01599 Northfield HRA 0.01431 0.01528 0.01844 0.01838 0.01751 0.01732 0.01763 0.01670 0.01655 0.01629 South St. Paul EDA ‐‐‐‐‐‐ ‐‐‐‐‐‐ ‐‐‐‐‐‐ ‐‐‐‐‐‐ ‐‐‐‐‐‐ ‐‐‐‐‐‐ 0.01363 0.01685 0.01358 0.01516 South St. Paul HRA 0.01463 0.01518 0.01618 0.01351 0.01450 0.01468 0.01649 0.01492 0.01453 0.01527 South Metro EMS ‐‐‐‐‐‐ ‐‐‐‐‐‐ ‐‐‐‐‐‐ 0.01774 0.01249 0.01264 0.01784 0.01541 0.01402 0.01333 Light Transit Rail 0.00256 0.00389 0.00401 0.00432 0.00403 0.00371 0.00357 0.00342 0.00031 ‐‐‐‐‐‐

The Tax Capacity Rate is determined by dividing a taxing district's property tax levy amount by the taxing district's total tax capacity. Data Source: Dakota County Minnesota 2019 CAFR

149 Dakota County Community Development Agency Principal Taxpayers December 31, 2019 and December 31, 2010

2019 % of Total Tax Capacity County Name Type of Business Value Tax Capacity

Xcel Energy Utility $ 8,094,800 1.4% Flint Hills Resources Pine Bend LLC Industrial 4,297,852 0.8% Dakota Electric Association Utility 1,993,928 0.4% Burnsville Center SPE LLC Commercial 1,869,724 0.3% Paragon Outlets Eagan LLC Commercial 1,860,524 0.3% Northern Natural Gas Co. Utility 1,762,484 0.3% SVC CPC Eagan LLC Commercial 1,484,908 0.3% West Publishing Co. Industrial 1,471,146 0.3% Health Landlord (MN) LLC Commercial 1,127,176 0.2% Chicago & NW Trans Co Rail Road 928,317 0.2%

$ 24,890,859 4.5%

2010 % of Total Tax Capacity County Name Type of Business Value Tax Capacity

Northern States Power Co Electric Utility $ 5,886,339 1.5% Flint Hills Refinery 3,367,573 0.9% Burnsville Center Spe LP Burnsville Center 2,079,250 0.5% Dakota Electric Assn Electric Utility 1,861,542 0.5% West Publishing Co. Book Publishing 1,490,872 0.4% Northern Natural Gas Co. Natural Gas Utility 1,368,303 0.4% Minnegasco Inc. Natural Gas Utility 972,574 0.3% BCBSM Inc. Health Care 913,911 0.2% AMB Property LP Property Management 860,932 0.2% Duke Realty LTD Prtnshp Eagan Commerce Center 746,794 0.2%

$ 19,548,090 5.1%

Data Source: Dakota County Minnesota 2019 CAFR

150 Dakota County Community Development Agency Property Tax Levies and Collections Last Ten Fiscal Years

% of Outstanding Total Delinquent Fiscal Total Tax Current Collections Delinquent Total Current Delinquent Taxes as a % of Year Levy Amount % of Levy Collections Collections Levy Taxes Current Levy

2011$ 7,863,693 $ 7,754,810 98.62% $ 68,689 $ 7,823,499 99.49% $ 180,108 2.29%

2012 7,586,169 7,488,677 98.71% 62,319 7,550,996 99.54% 118,485 1.56%

2013 7,078,050 7,006,697 98.99% 28,976 7,035,673 99.40% 98,334 1.39%

2014 6,532,570 6,459,462 98.88% 47,136 6,506,598 99.60% 79,235 1.21%

2015 6,643,476 6,583,225 99.09% 39,597 6,622,822 99.69% 60,219 0.91%

2016 6,829,714 6,774,274 99.19% 10,053 6,784,327 99.34% 58,584 0.86%

2017 7,048,156 6,994,097 99.23% 35,102 7,029,199 99.73% 66,953 0.95%

2018 7,348,023 7,293,830 99.26% 35,812 7,329,642 99.75% 56,360 0.77%

2019 7,624,549 7,607,466 99.78% 34,227 7,641,693 100.00% 51,359 0.67%

2020 8,176,928 8,162,792 99.83% ‐ 8,162,792 99.83% 54,723 0.67%

151 Dakota County Community Development Agency Rental Revenues Last Ten Fiscal Years

Common Bond Fund Public Housing Fund Workforce Housing LLC Youth Housing Fund Total Average Average Total Average Average Total Average Average Total Average Average Fiscal Tenant Units Revenue per Tenant Units Revenue per Tenant Units Revenue per Tenant Units Revenue per Year Revenue per Mo Unit Month Revenue per Mo Unit Month Revenue per Mo Unit Month Revenue per Mo Unit Month

2011$ 10,012,012 1,327 $ 629 $ 1,678,748 323 $ 433 $ ‐ ‐ $ ‐ $ 132,644 25 1,769

2012 10,604,586 1,387 637 1,660,824 323 428 ‐ ‐ ‐ 135,209 25 451

2013 11,927,404 1,523 653 1,770,147 323 457 598,550 66 756 132,362 25 441

2014 12,584,225 1,543 680 1,847,462 323 477 1,470,587 166 738 131,458 25 438

2015 12,880,405 1,560 688 1,916,623 323 494 1,967,102 215 762 144,292 25 481

2016 12,061,330 1,614 623 2,052,456 323 530 1,963,078 215 761 146,273 25 488

2017 14,163,831 1,674 705 2,117,841 323 546 2,533,832 246 858 130,705 25 436

2018 14,933,937 1,731 719 2,167,865 323 559 2,878,002 296 810 141,141 25 470

2019 15,326,653 1,731 738 2,302,286 323 594 2,994,179 296 843 152,881 25 510

2020 15,703,584 1,731 756 2,410,024 323 622 3,655,095 364 837 160,832 25 536

Note: Rent is determined based on resident income. The Common Bond Fund provides senior housing, the Public Housing Fund provides housing to seniors, families, and individuals with disabilities, the Youth Housing Fund provides supportive housing for young adults and the Workforce Housing LLC provides housing to families. The Youth Housing Fund began operations in April 2010. The Workforce Housing LLC began operations in July 2012.

152 Dakota County Community Development Agency Ratios of Outstanding Debt by Type Last Ten Fiscal Years

Housing Capital Fiscal Notes Development Fund Deferred Total Debt Year Payable Bonds Loan Loans Debt Ratio

2011$ 1,008,400 $ 73,828,138 $ 946,833 $ 5,040,935 $ 80,824,306 78%

2012 1,008,400 71,175,485 646,840 4,701,029 77,531,754 60%

2013 600,000 69,056,460 ‐ 5,477,029 75,133,489 56%

2014 600,000 73,917,080 ‐ 7,288,509 81,805,589 60%

2015 600,000 119,272,626 ‐ 8,276,643 128,149,269 77%

2016 600,000 110,466,516 ‐ 8,274,039 119,340,555 65%

2017 600,000 107,165,863 ‐ 10,110,835 117,876,698 64%

2018 600,000 84,492,611 ‐ 10,627,704 95,720,315 59%

2019 600,000 80,834,441 ‐ 10,625,021 92,059,462 57% ‐ 2020 600,000 77,089,030 ‐ 12,627,128 90,316,158 55%

Note: The outstanding debt is specifically related to construction and renovation of housing projects. The personal income of the county residents would not be a meaningful ratio relating to this debt. The ratio shown is to the assets of the funds to which the debt applies.

153 Dakota County Community Development Agency Pledged‐Revenue Coverage Housing Development Bonds Last Ten Fiscal Years

Net Revenue Direct Available Debt Service Requirements Fiscal Gross Operating Transfers and for Debt Year Revenues Expenses Contributions Service Principal Interest Total Coverage

2011$ 10,337,016 $ 6,477,953 $ 5,650,000 $ 9,509,063 $ 2,515,000 $ 2,923,866 $ 5,438,866 1.75

2012 11,225,113 6,434,435 5,600,000 10,390,678 2,695,000 3,419,994 6,114,994 1.70

2013 12,013,569 7,775,645 5,600,000 9,837,924 2,775,000 3,338,394 6,113,394 1.61

2014 12,826,215 7,500,191 5,600,000 10,926,024 2,715,000 3,359,739 6,074,739 1.80

2015 12,987,167 8,722,803 5,600,000 9,864,364 2,860,000 3,364,794 6,224,794 1.58

2016 13,508,758 8,399,881 5,600,000 10,708,877 8,460,000 4,172,023 12,632,023 0.85

2017 14,203,760 9,100,510 5,600,000 10,703,250 2,970,000 4,668,299 7,638,299 1.40

2018 15,432,612 9,614,724 5,600,000 11,417,888 3,085,000 3,313,646 6,398,646 1.78

2019 16,175,270 10,154,532 5,600,000 11,620,738 3,360,000 3,208,359 6,568,359 1.77

2020 16,466,269 10,439,285 5,742,112 11,769,096 3,460,000 3,377,418 6,837,418 1.72

Note: Details about the housing development bonds can be found in the notes to the financial statements (Note 2 F). Revenues pledged for debt service include all rents and other operating revenues of the housing developments financed by the bonds plus additional amounts pledged from the Agency's tax levy and tax increment revenues which are included in the transfers and contributions column.

154 Dakota County Community Development Agency Demographic Statistics Last Ten Calendar Years

Annual School Average Personal Per Capita Median Enrollment Unemployment Year Population (1) Income (1) Income (1) Age (2) K thru 12 (3) Rate (4)

2010 397,650 17,970,760,000 45,192 36.7 79,070 7.0%

2011 400,480 18,612,486,000 46,475 37.2 78,513 6.1%

2012 405,088 20,192,381,000 49,847 37.5 77,823 5.2%

2013 408,509 20,706,256,000 50,687 37.4 77,716 4.5%

2014 412,529 21,524,339,000 52,177 36.8 75,226 3.8%

2015 414,686 22,272,614,000 53,710 37.3 75,336 3.3%

2016 417,486 22,951,451,000 54,975 37.6 75,123 3.4%

2017 421,751 24,308,945,000 57,638 37.8 76,323 3.1%

2018 425,423 25,802,276,000 60,651 38.2 76,821 2.5%

2019 429,021 NA* NA* NA* 77,228 2.9%

Data Source: Dakota County Minnesota 2019 CAFR (1) US Dept Of Commerce, Bureau of Economic Analysis (2) US Census Bureau; Note: Data for years 2010‐2013 have been updated to reflect current data (3) State Department of Education; Public, Private, & Charter school enrollment. Note: 2010‐2018 data has been updated to reflect Public, Private, & Charter school enrollment. Previously, only Public & Charter school enrollment was reported. (4) State Department of Employment and Economic Development; Note: data has been updaed for years 2010‐2014

* Information for current year was not available at time of publication

155 Dakota County Community Development Agency Principal Employers Dakota County, Minnesota

Percentage 2019 of Total County Employer Employees Employment

Thomson West 7,000 2.92% Independent School District 196 4,500 1.88% Blue Cross‐Blue Shield of MN 3,816 1.59% Burnsville Center* 3,000 1.25% Dakota County 2,052 0.86% CHS Incorporated 2,000 0.83% US Postal Service (Eagan) 2,000 0.83% UTC Aerospace 1,600 0.67% Prime Therapeutics 1,591 0.66% Independent School District 194 1,555 0.65%

Total County Employment 239,835 12.14%

Percentage 2010 of Total County Employer Employees Employment

Reuters Thomson West 7,500 3.44% Independent School District 196 4,300 1.97% Blue Cross‐Blue Shield 3,500 1.61% Dakota County 1,806 0.83% Independent School District 191 1,600 0.73% Independent School District 194 1,596 0.73% US Postal Service 1,570 0.72% Sun Country 1,200 0.55% Flint Hills Resources 1,200 0.55% Evergreen Industries 1,200 0.55%

Total County Employment 217,790 11.68%

*Includes part‐time employees

Data Source: Dakota County Minnesota 2019 CAFR, Minnesota Department of Employment and Economic Development

156 Dakota County Community Development Agency Full‐Time Equivalent Employees Last Ten Years

Department 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Administration 10.7 10.0 10.0 9.5 8.0 9.7 11.6 11.7 11.6 11.2 Community & Economic Development 12.2 9.3 9.4 9.6 10.2 9.5 10.7 11.2 11.3 10.7 Finance 8.0 8.0 9.0 9.0 8.8 7.8 8.8 9.0 8.9 9.8 Housing Assistance 17.1 16.4 14.8 14.7 14.5 15.1 16.8 16.0 15.5 17.3 Housing Development 7.5 6.3 4.5 4.8 5.2 5.0 5.9 5.2 5.2 5.2 Property Management 49.2 49.7 51.7 50.5 52.5 53.2 55.2 55.7 52.8 54.5

Total 104.7 99.7 99.4 98.1 99.2 100.3 109.0 108.8 105.3 108.7

Full-time Equivalent Employees

110.0

108.0

106.0

104.0

102.0

100.0

98.0

96.0

94.0

92.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Data Source: Dakota County CDA Budgets

Note: Full‐time equivalents are calculated by dividing the total labor hours by 2,080.

157 Dakota County Community Development Agency Capital Asset Statistics Last Ten Fiscal Years

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Common Bond Senior Buildings 23 25 26 26 27 28 29 29 29 29 Units Available 1,337 1,463 1,543 1,543 1,609 1,669 1,731 1,731 1,731 1,731

Public Housing Senior Building 1 1 1 1 1 1 1 1 1 1 Scattered site units 243 243 243 243 243 243 243 243 243 243 Units Available 322 323 323 323 323 323 323 323 323 323

Youth Housing Lincoln Place 1 1 1 1 1 1 1 1 1 1 Units Available 25 25 25 25 25 25 25 25 25 25

Workforce Housing LLC Family Townhomes ‐ ‐ 2 5 7 7 9 10 10 12 Units Available ‐ ‐ 66 166 215 215 268 296 296 364

Governmental NSP Fund 1 1 2 2 2 2 2 2 2 2 Units Available 4 4 5 5 5 5 5 5 5 5 Office Building 1 1 1 1 1 1 1 1 1 1 Employees (FTE's) 105 100 99 98 99 100 109 109 105 109

158 Dakota County Community Development Agency Housing Units Managed Last Ten Fiscal Years

By Fund 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Common Bond 1,337 1,463 1,543 1,543 1,609 1,669 1,731 1,731 1,731 1,731 Public Housing 323 323 323 323 323 323 323 323 323 323 Youth Housing 25 25 25 25 25 25 25 25 25 25 Partnerships (DPCUs) 552 597 557 528 506 556 539 511 511 443 Workforce Housing LLC ‐ ‐ 66 166 215 215 268 296 296 364 NSP 4 4 5 5 5 5 5 5 5 5

Total Units Managed 2,241 2,412 2,519 2,590 2,683 2,793 2,891 2,891 2,891 2,891

By Location

Apple Valley 291 336 336 336 336 336 336 336 336 336 Burnsville 243 243 323 323 323 323 323 323 323 323 Eagan 374 374 374 421 448 498 498 498 498 498 Farmington 31 98 124 124 124 124 124 124 124 124 Hastings 203 203 203 203 203 203 203 203 203 203 Inver Grove Heights 176 176 176 200 266 266 266 266 266 266 Lakeville 365 364 364 364 364 364 462 462 462 462 Mendota Heights 150 150 150 150 150 150 150 150 150 150 Rosemount 107 107 107 107 107 167 167 167 167 167 South St. Paul 110 170 170 170 170 170 170 170 170 170 West St. Paul 191 191 192 192 192 192 192 192 192 192

Total Units Managed 2,241 2,412 2,519 2,590 2,683 2,793 2,891 2,891 2,891 2,891

Housing Units Managed

3,000

2,500

2,000

1,500

1,000

500

- 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Common Bond Public Housing Partnerships (DPCUs)

Note: The number of units shown is the number of units available at the end of the fiscal year.

159 Dakota County Community Development Agency Housing Units Assisted Last Ten Fiscal Years

Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Vouchers 2,361 2,395 2,293 2,238 2,363 2,454 2,605 2,664 2,630 2,577 Other Federal 34 37 29 28 23 31 30 28 26 27 Non Federal 31 37 35 39 40 61 86 94 92 47 Levy 9 9 6 10 19 20 18 16 14 24

Average Units Assisted Per Month 2,435 2,478 2,363 2,315 2,445 2,566 2,739 2,802 2,762 2,675

Net Port Activity Included in Vouchers Port‐Ins 308 331 387 384 370 307 190 99 131 109 Port‐Outs (152) (156) (197) (202) (237) (247) (283) (315) (404) (380) 156 175 190 182 133 60 (93) (216) (273) (271)

Average Units Assisted Per Month

3000

2500

2000

1500

1000

500

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

160 Dakota County Community Development Agency Conduit Debt Outstanding Last Ten Calendar Years

Multi‐Family Apartment Assisted Year Complexes Living Total Single Family Other Total

2010 $ 135,414,972 72,893,980 $ 208,308,952 115,249,880 17,450,000 $ 341,008,832 2011 135,109,588 82,441,932 217,551,520 122,061,997 16,810,000 356,423,517 2012 82,760,987 81,725,317 164,486,304 84,064,164 16,440,000 264,990,468 2013 68,064,309 83,868,798 151,933,107 63,701,214 15,850,985 231,485,306 2014 23,082,817 90,283,997 113,366,814 53,083,150 14,948,400 181,398,364 2015 22,767,296 95,735,608 118,502,904 41,225,595 14,130,860 173,859,359 2016 22,432,967 97,830,474 120,263,441 30,478,889 13,628,575 164,370,905 2017 32,943,719 110,625,641 143,569,360 21,786,420 6,286,347 171,642,127 2018 52,424,722 109,123,698 161,548,420 17,714,405 4,851,174 184,113,999 2019 51,024,444 107,310,559 158,335,003 13,744,408 4,671,198 176,750,609

Conduit Debt Outstanding

$400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Multi-Family Single Family Other

161 4B: Attachment B

DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY

A component unit of Dakota County, Minnesota

Single Audit Report

For the Year Ended June 30, 2020

162 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Single Audit Report Year Ended June 30, 2020

TABLE OF CONTENTS

Independent Auditor’s Report on: Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 1 Compliance For Each Major Federal Program; Internal Control Over Compliance; and Schedule Of Expenditures of Federal Awards Required by the Uniform Guidance 3 Schedule of Expenditures of Federal Awards 5 Notes to Schedule of Expenditures of Federal Awards 6 Schedule of Findings and Questioned Costs 7 Schedule of Prior Audit Findings 9

163 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards

Independent Auditor’s Report

Board of Commissioners Dakota County Community Development Agency

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the business-type activities and the aggregate discretely presented component units of Dakota County Community Development Agency (the Agency), a component unit of Dakota County, Minnesota, as of and for the year ended June 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated February 25, 2021. Our report includes a reference to other auditors who audited the financial statements of the discretely presented component units, as described in our report on Agency’s financial statements. The financial statements of the discretely presented component units were not audited in accordance with Government Auditing Standards.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Agency’s internal control over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Agency’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

164 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Agency’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Minnesota Legal Compliance The Minnesota Legal Compliance Audit Guide for Other Political Subdivisions, promulgated by the State Auditor pursuant to Minn. Stat. §6.65, contains six categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, claims and disbursements, miscellaneous provisions and tax increment financing. Our audit considered all of the listed categories.

In connection with our audit, nothing came to our attention that caused us to believe that the Agency failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Other Political Subdivisions. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the Agency’s noncompliance with the above-referenced provisions.

Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Agency’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Agency’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Minneapolis, Minnesota February 25, 2021

165 Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by Uniform Guidance

Independent Auditor’s Report

Board of Commissioners Dakota County Community Development Agency

Report on Compliance for Each Major Federal Program We have audited Dakota County Community Development Agency’s (the Agency) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of the Agency’s major federal programs for the year ended June 30, 2020. Our audit did not include the federal programs of the discretely presented component units, if any, as described in the notes to the schedule of expenditures of federal awards. The Agency’s major federal programs are identified in the summary of independent auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Agency’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Agency’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Agency’s compliance.

Opinion on Compliance for Each Major Federal Program In our opinion, the Agency complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020.

166 Report on Internal Control Over Compliance Management of the Agency is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Agency’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Agency’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the business-type activities and the aggregate discretely presented component units of the Agency as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Agency’s financial statements. We have issued our report thereon dated February 25, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements, or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Minneapolis, Minnesota February 25, 2021

167 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2020

Contract Federal Federal Passed Through Federal Grantor/Pass Through Grantor/Program Title Number CFDA No. Expenditures to Subrecipients U.S. Department of Housing and Urban Development (HUD) Direct Program: Section 8 Project‐Based Cluster: Section 8 Moderate Rehabilitation Single Room Occupancy ‐‐ 14.249 $ 16,386 $ ‐ Continuum of Care ‐‐ 14.267 233,497 ‐ Public and Indian Housing (includes $24,375 related ‐‐ 14.850 160,773 ‐ to the CARES Act) Housing Voucher Cluster: Section 8 Housing Choice Vouchers (includes ‐‐ 14.871 22,785,606 ‐ $302,478 related to the CARES Act) Mainstream Vouchers ‐‐ 14.879 17,633 ‐ Total Housing Voucher Cluster 22,803,239 ‐ Public Housing Capital Fund ‐‐ 14.872 964,064 ‐ Family Self‐Sufficiency ‐‐ 14.896 8,976 ‐

Passed through Dakota County, Minnesota: CDBG ‐ Entitlement Grants Cluster: Community Development Block Grant: Entitlement grants C0029603 14.218 1,699,511 504,414 Emergency Solutions Grant C0029603 14.231 126,868 ‐ HOME Investment Partnerships Program C0029603 14.239 1,247,998 898,577

Passed through MN Homeownership Center: Housing Counseling Assistance Program n/a 14.169 31,729 ‐ Total HUD 27,293,041 1,402,991

U.S. Environmental Protection Agency Direct Program: Brownfields Multipurpose, Assessment, Revolving Loan, ‐‐ 66.818 20,151 and Cleanup Cooperative Total U.S. Environmental Protection Agency 20,151

U.S. Department of Energy Passed through Minnesota Department of Commerce: Weatherization assistance for low‐income persons SC‐125244 81.042 423,828 ‐ Total U.S. Department of Energy 423,828 ‐

U.S. Department of Health & Human Services Passed through Minnesota Department of Commerce: Low‐income home energy assistance SC‐125244 93.568 262,304 ‐ Total U.S. Department of Health & Human Services 262,304 ‐

Total federal awards expended $ 27,999,324 $ 1,402,991

168 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Notes to Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2020

Note 1: Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Agency under programs of the federal government for the year ended June 30, 2020, except for the federal grant activity, if any, of the Agency's discretely presented component units. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" (Uniform Guidance). Because this schedule presents only a selected portion of the operations of the Agency, it is not intended to present the financial position, changes in financial position or cash flows, where applicable, of the Agency.

Note 2: Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are reported following the cost princples contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited to reimbursement. Pass‐through entity identifying numbers are presented where available. The Agency has elected not to use the 10 percent deminimis cost rate as allowed under the Uniform Guidance.

169 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Schedule of Findings and Questioned Costs Year Ended June 30, 2020

I. Summary of Independent Auditor’s Results

A. Financial Statements Type of auditor’s report issued: Unmodified Internal control over financial reporting:  Material weakness (es) identified? ____Yes _x__No  Significant deficiency (ies) identified ____Yes _x__None reported

Noncompliance material to financial statements noted? ____Yes _x__No

B. Federal Awards Internal control over major programs:  Material weakness (es) identified? ____Yes _x__No  Significant deficiency (ies) identified ____Yes _x__No

Type of auditor’s report issued on compliance for major program: Unmodified  Any audit findings disclosed that are required to be reported in accordance with Section 2 CFR 200.516(a)? ____Yes _x__No Identification of major programs: CFDA Number Name of Federal Program Housing Voucher Cluster: 14.871 Housing Choice Vouchers Program 14.879 Mainstream Vouchers 14.218 CDBG Entitlement Cluster: Community Development Block Grant: Entitlement grants 14.872 Public Housing Capital Fund

Dollar threshold used to distinguish between type A and type B programs $839,980

Auditee qualified as low-risk auditee? __x_Yes ____No

170 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Schedule of Findings and Questioned Costs Year Ended June 30, 2020

II. Financial Statements Findings

No matters to report.

III. Federal Awards Findings and Questioned Costs

No matters to report.

171 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Schedule of Prior Audit Findings Year Ended June 30, 2020

The audit report for the year ended June 30, 2019 contained no findings or questioned costs.

172 4B: Attachment C

173 174 175 176 177 178 179 180 181 182 183 184 185 186 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION

Public Hearing To Receive Comments On The Disposition Of DCCDA Section 18, LLC Properties And Authorization To Enter Into A Purchase Agreement With Twin Cities Habitat For Humanity

Fiscal/FTE Impact: Meeting Date: 3/16/2021 None Department: Housing Development Amount included in current budget Prepared By: Lori Zierden Budget amendment requested Contact: Kari Gill FTE included in current complement Contact Phone: 651-675-4477 New FTE(s) requested Other: Sale proceeds will be banked for future development of new affordable housing.

PURPOSE/ACTION REQUESTED  Conduct and close a public hearing regarding the disposition of vacant property.  Authorize Executive Director to enter into purchase agreement on behalf of DCCDA Section 18, LLC for eight single family homes.

SUMMARY On January 6, 2021, the Dakota County CDA on behalf of the DCCDA Section 18, LLC released a Request for Proposal (RFP) to accept offers on purchasing and reselling single-family homes to income-qualified homebuyers. The properties being proposed for disposition are part of the Section 18 Demo/Dispo program. The intent is to sell these properties and use the proceeds to create new affordable housing units. The eight properties being proposed to sell are scattered throughout the county and are well suited for homeownership opportunities. Affordable homeownership is a goal of the CDA; partnering with a non-profit that has experience in providing affordable homeownership opportunities will allow the CDA to make progress towards this goal.

The RFP (Attachment A) was sent to six non-profit organizations and was posted on the CDA’s website. This public hearing was published in Star Tribune (Attachment B) in addition to being posted on the CDA’s website.

The CDA received two proposals (Attachment C). One offer is from Twin Cities Habitat for Humanity and the other is from Greater Frogtown CDC/NW HomePartners. The proposals were scored on three factors: (1) willingness and ability to acquire and resell all eight properties, (2) end user income served, and (3) prior experience. Additionally, the following factors were considered: (1) gap financing needed, (2) commencement schedule, (3) offer purchase amount, (4) affordability term, and (5) availability of other funding sources.

RECOMMENDATION Staff recommends the Executive Director be authorized to negotiate and enter into a purchase agreement with Twin Cities Habitat for Humanity (Habitat). Staff is recommending Habitat for the following reasons:

 Scored higher in points awarded through the RFP.  Habitat has a more established homebuyer program. Since 1985 they have built, rehabbed, and sold over 1,500 homes to qualifying homebuyers.  Habitat is asking for less gap financing and they have the ability to leverage more funds.  Habitat can purchase all eight homes which will be more convenient and efficient for staff. Also, their timeline in acquiring the properties is shorter. It is in the best interest of the CDA to have the homes sold quickly for security and maintenance concerns since they are vacant.  Habitat has familiarity with many funding sources including state and federal programs.

CDA staff will present a financing plan for the gap financing and sale schedule at the April 20, 2021 meeting.

EXPLANATION OF FISCAL/FTE IMPACT HUD requires the proceeds from the sale of the properties to be placed in a restricted bank account to be used for allowable purposes which in the CDA’s case will be acquiring or constructing replacement affordable housing units.

187 Supporting Documents: Previous Board Action(s): Attachment A: Request for Proposal 21-6385; 2/16/2021 Attachment B: Affidavit of Publication of Public Notice Attachment C: RFP Proposals

Resolution No. 21-XXXX

Public Hearing To Receive Comments On The Disposition Of DCCDA Section 18, LLC Properties And Authorization To Enter Into A Purchase Agreement With Twin Cities Habitat For Humanity

WHEREAS, the Dakota County CDA is able to dispose of property after holding a public hearing for which notice is published; and

WHEREAS, a notice of the public hearing was published by the CDA in the Star Tribune per statutory requirements; and

WHEREAS, the properties being proposed for sale are part of the DCCDA Section 18, LLC that was created for the transition of public housing units (single-family homes and duplexes) through the U.S. Housing and Urban Development’s Section 18 Demo/Dispo program; and

WHEREAS, a Request For Proposals was created to solicit offers on the disposition of eight DCCDA Section 18, LLC properties, and

WHEREAS, the CDA has received two viable offers, one from Twin Cities Habitat for Humanity and the other from Greater Frogtown CDC/NW HomePartners; and

WHEREAS, the proposal from Twin Cities Habitat for Humanity is being recommended for the following reasons:  Scored higher in points awarded through the RFP.  Habitat has a more established homebuyer program.  Habitat is asking for less gap financing and they have the ability to leverage more funds.  Habitat can purchase all eight homes which will be more convenient and efficient for staff.  Habitat has familiarity with many funding sources including state and federal programs.

WHEREAS, a public hearing was conducted on March 16, 2021 on the proposed terms of the sale of the properties; and

WHEREAS, staff will present a financing plan at the April 20, 2021 Board meeting.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Executive Director is authorized to negotiate with and enter into a purchase agreement with Twin Cities Habitat for Humanity for the sale of eight single family homes subject to approval as to form by the Dakota County Attorney’s office.

BE IT FURTHER RESOLVED That the purchase agreement will be contingent upon approval of a financing plan.

______Executive Director Department Director 188 5A - Attachment A

REQUEST FOR PROPOSALS Single Family Homes for Sale for the Resale to Qualified Homeowners in Dakota County

SUMMARY/INTRODUCTION In 2020 the Dakota County Community Development Agency (CDA), as Sole Member of the DCCDA Section 18 LLC through the U.S. Department of Housing and Urban Development (HUD) converted 120 scattered site public housing units to Section 18 assistance program. The Section 18 program allows the CDA to sell homes to prospective resident purchasers or non-profit agencies for resale to low/moderate buyers. The homes must be sold at Fair Market Value to maintain the housing value within the community of other homes

The CDA seeks a non-profit agency (Agency) to purchase the homes for resale to income qualified buyers. A list of the homes along with the appraised market value is listed in Attachment A.

GENERAL INFORMATION AND REQUIREMENTS RFP Released January 4, 2021 RFP Responses Due February 5, 2021; 3:00 p.m. CDA Board of Commissioners Holds Public Hearing to Consider Sale of Property March 15, 2021 or TBD Execute Purchase Agreement TBD Completion of Project Within one (1) year of closing The CDA reserves the right to change the timeline to ensure the RFP process is successful.

Property History The homes being offered were previously public housing properties that have been held by the Dakota County CDA for the past thirty plus years. All properties have been maintained and updated and are being sold for fair market value.

Project Planning Assistance The CDA will provide information as available to facilitate cost estimations, including appraised market value. The selected Agency(ies) is/are responsible for ordering any additional tests and updates required to meet their guidelines to resell the properties to low/moderate income end buyers.

189 2. Conveyance of Property. The conveyance of each property to the Agency will not occur until the Agency has demonstrated readiness to proceed and complete the project in a timely manner (i.e. have financing in place and qualified buyers). 3. Project Timeline. The Purchase Agreement will establish a timeline for the timely completion of the sale of each home. 4. Reversion Clause. The Purchase Agreement will contain a reversionary clause allowing the CDA Section 18 LLC to re-purchase the property if resale to qualified buyer does not occur according to the schedule set forth in the Purchase Agreement. 5. Escrow. An escrow deposit will be required at the time the Purchase Agreement is executed.

190 CRITERIA Responses received will be subject to a two-part review process. Part 1: Mandatory Requirements A Respondent must meet minimum criteria in order to have their proposals considered. A majority of these criteria are addressed in Part 1 of the RFP Application. At a minimum, Respondents must:

1. Demonstrate experience: A minimum of 5 years’ experience doing projects of similar scope and size to those proposed. 2. Demonstrate capability to complete the project: The Respondent must demonstrate that during a 5- year period it has successfully completed projects of similar scope and size to those proposed, in similar markets. Include experience with purchasing homes and reselling them to income qualified households and demonstrate how income eligibility is certified. 3. Demonstrate credit worthiness: For each project applied for, the Respondent must demonstrate that it has the ability to secure funding for the project. 4. Be willing to pay a minimum of appraised market value for each property proposed to be acquired. If a Respondent proposes acquisition of multiple properties, CDA staff reviewing the proposals will determine whether the Respondent has the experience, capability, and creditworthiness to successfully complete all, some, or none of the proposed acquisitions. Only the acquisitions that staff determines can be successfully completed will be scored. Part 2: Additional Scoring Criteria The CDA’s preference is to select one Agency to complete all eight homes. The CDA may also consider applications from Agencies on a per property basis. When multiple proposals exist for a property, the following factors will be considered:

• Demonstrated experience and capacity to feasibly sell multiple homes (up to 8). • Demonstrated experience and capability to successfully income qualify households SELECTION CRITERIA Maximum Points Prior Agency experience of similar project 60 Willingness and ability to acquire and resell all eight properties 10 Points Subtotal 70 80% median or less; however, additional points awarded if home can be sold to 1 point for each 1% lower income families under 60% of median income (maximum of 10 points) Total Possible Maximum Points 80

191 APPLICATION PROCEDURE Applications are due by 3:00 pm on February 5, 2021

Email application materials to Lori Zierden at [email protected]

LATE PROPOSALS WILL NOT BE ACCEPTED

Questions about the RFP must be submitted in writing to Lori Zierden at [email protected].

SUBMITTAL REQUIREMENTS AND CHECKLIST Each Respondent shall submit one (1) unbound copy of the following documents on 8.5 x 11-inch format. Respondents must adhere to the submission requirements. Failure to comply with the instructions of this RFP will be cause for rejection of the proposal. The CDA reserves the right to seek additional information to clarify responses to this RFP and to reject any or all submittals it deems nonresponsive. Accepting any proposal(s) is at the sole discretion of the Dakota County CDA Board of Commissioners. Each response must include the following: Cover sheet (Attachment A)

Agency Application. Provide one Business Application per proposal. (Attachment B) Resumes of the development team Documentation supporting financial feasibility Disclosure Affidavit (Attachment C)

192 ATTACHMENT A: COVERSHEET

Single Family Lots for Sale Request for Proposal

Dakota County Community Development Agency Applications are due by 3:00 pm on January 29, 2021 February 5, 2021

For each property included in your application proposal, provide the information below

Property Address Offer Amount Order of Acquisition (for multiple Appraised Market st properties, which will be acquired 1 , etc.) Value 195 Kathleen Drive $ $203,000 West St. Paul 15442 Drexel Way $ $265,000 Apple Valley 3551 69th Street $ $220,000 Inver Grove Heights 1921 Walnut Street $ $228,000 Hastings 157 E Butler Street $ $216,000 West St. Paul 3650 77th Street $ $210,000 Inver Grove Heights 2262 Apache Street $ $272,000 Mendota Heights 14201 Diamond Path Court $ $263,000 Apple Valley

193 ATTACHMENT B: BUSINESS APPLICATION

PART 1 Complete and submit this application

1. Business/Developer Name: ______

Address: ______

Phone: ______Fax: ______

Federal Tax ID Number: ______Email address: ______

2. List individuals having an interest of ten percent (10%) or more in the business: Name Title Description of Percentage Interest of Interest

3. The business was established on ______, organized or operating under Date the laws of the state of ______, as:

A corporation A limited liability company A non-profit or charitable institution or corporation A partnership known as a business association A joint venture known as______.

4. Number of years in business: ______

5. List the members of the development team and consultants. Insert additional pages as necessary (attach resumes of all members of the development team. Name Title Firm Role

194 6. On separate page please provide the following information (limit to 4 pages or less): a. Brief description of the Respondent’s experience in selling homes to low/mod families. b. Please list similar projects in similar markets wherein the Respondent has completed transactions similar to this project within the last five years. c. Attach evidence of financing feasibility and/or how much financial assistance is needed from the CDA. d. Additional Comments.

The information contained herein is true and correct to the best of my/our knowledge and belief.

______Signature Title Date

195 ATTACHMENT C: DISCLOSURE AFFIDAVIT

1. PRINCIPAL INFORMATION This affidavit must be completed by an authorized person or persons on behalf of the business or non-profit entity (“Business”) submitting the proposal.

If the Business is a for-profit, investors, officers, and principal members having an interest of ten (10%) or more of the corporation must submit individual copies of this affidavit. If the Business is non-profit, the executive director must provide an individual submission.

Business Name Business Address

Individual Name Phone Number Email Address Home Address

2. PRINCIPAL DISCLOSURES Check the boxes below regarding each individual and/or business listed above. For each item listed below and answer in the affirmative, please provide a full explanation including, as appropriate, (1) date, (2) charge or claim, (3) place, (4) court and case number, (5) current status of case, and (6) outcome of case. Attach documentation as necessary. Yes No Business/Individual is a party in a pending lawsuit. Business/Individual is the subject of a judgment or has a conviction or pending case for criminal or civil fraud or bribery or felony within the past ten (10) years. Business/Individual has been a debtor in a bankruptcy proceeding, either voluntary or involuntary, within the past 10 years. Business/Individual has unpaid delinquent taxes, municipal liens, and/or outstanding civil money judgments.

Business/Individual has been declared in default of a loan or failed to complete a development project. Is the Business in good standing with the Minnesota Office of the Secretary of State? Is the Business/Individual subject to any defaults, liens, or judgments?

Has the Business/Individual failed to complete or currently in violation of a development agreement or other agreement involving the City of South Saint Paul or another city in Dakota County? Has the Business/Individual previously been involved in a lawsuit with the City of South Saint Paul or any other city in Dakota County?

196 Statement of Non-Collusion The individual signing this affidavit, on his/her own behalf or ion the Business’s behalf, as applicable, swears or affirms that: 1. He or she is fully informed respecting the preparation and contents of the subject proposal. 2. The proposal is genuine and is not a collusive or sham offer, nor does the Business/Individual, as applicable, intend to hold said property as a “speculative” investment. 3. The price or prices quoted in this offer are fair and proper and this Business/Individual or any of its officers, partners, agents, representatives, owners, or employees, as applicable, has not in any manner sought to secure through any collusion, conspiracy, connivance, or unlawful agreement any advantage against the CDA, or any person interested in the Proposed contract and/or redevelopment.

I swear or affirm, on my own behalf or on the Business’s behalf, as applicable, that the information contained in this Disclosure Affidavit is true and correct to the best of my/our knowledge and belief. I further acknowledge that the statements made in this Disclosure Affidavit are material and will be relied upon by the Dakota County Community Development Agency in determining what action to take on this proposal.

______Signature Title Date

STATE OF MINNESOTA} SS COUNTY OF DAKOTA}

The forgoing instrument was acknowledged before me this day of , ______by ______(individually) on behalf of ______(company name).

By ______Notary Public

197 ATTACHMENT D: PROJECT APPLICATION

PART 2

Property Address(es):

Developer:

1. Proposed project description: Who/how will you sell the homes to low/moderate income families?

2. Describe innovative use of financial assistance and how much or what type of financial assistance will be needed from the CDA.

3. Provide the justification for expected sales prices to end buyers. Attach supporting material as needed.

198 4. Project commencement schedule:

6 months or less

12 months or less

State typical resell timeline per home: ______months.

5. Additional Comments:

The information contained herein is true and correct to the best of my/our knowledge and belief.

______Signature Title Date

199 5A: Attachment B

AFFIDAVIT OF PUBLICATION

STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) 650 3rd Ave. S, Suite 1300 | Mineapolis, MN | 55488

Terri Swanson, being first duly sworn, on oath states as follows:

1. (S)He is and during all times herein stated has been an employee of the Star Tribune Media Company LLC, a Delaware limited liability company with offices at 650 Third Ave. S., Suite 1300, Minneapolis, Minnesota 55488, or the publisher's designated agent. I have personal knowledge of the facts stated in this Affidavit, which is made pursuant to Minnesota Statutes §331A.07.

2. The newspaper has complied with all of the requirements to constitute a qualified newspaper under Minnesota law, including those requirements found in Minnesota Statutes §331A.02.

3. The dates of the month and the year and day of the week upon which the public notice attached/copied below was published in the newspaper are as follows:

Dates of Publication Advertiser Account # Order # StarTribune 02/22/2021 DAKOTA COUNTY COMMUNITY DEVELOPMENT1000368678 383350 4. The publisher's lowest classified rate paid by commercial users for comparable space, as determined pursuant to § 331A.06, is as follows: $302.40

5. Mortgage Foreclosure Notices. Pursuant to Minnesota Statutes §580.033 relating to the publication of mortgage foreclosure notices: The newspaper’s known office of issue is located in Hennepin County. The newspaper complies with the conditions described in §580.033, subd. 1, clause (1) or (2). If the newspaper’s known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice are located, a substantial portion of the newspaper’s circulation is in the latter county.

FURTHER YOUR AFFIANT SAITH NOT.

Subscribed and sworn to before me on: 02/22/2021

Notary Public

200 ZSW [C M Y K]C6 Monday, Feb. 22, 2021

C6 • STAR TRIBUNE SPORTS MONDAY, FEBRUARY 22, 2021

PREPS NBA ROUNDUP

THE WEEK Nets’ success continues in L.A. AHEAD Ratzlaff picked Plenty to watch James Harden scored 37 points, and the Brooklyn Nets held off BOYS’ BASKETBALL Mr. Football a fourth-quarter rally to edge the host Los Angeles Clippers 112- Tuesday 108 on Sunday night for their season-best sixth victory in a row. • DeLaSalle at Colum- T he Minnesota Football Coaches Harden just missed a triple-double, finishing with 11 rebounds as March nears bia Heights, 7 p.m. A Association on Sunday named and seven assists. Kyrie Irving added 28 points and eight assists. rematch of a game Rosemount senior strong safety/ New Orleans 120, Boston 115 (OT): Brandon Ingram sank a go- By JIM PAULSEN win tight games, with six of played Jan. 29, won by linebacker/tight end Jake Ratzlaff ahead three-pointer with 33.3 seconds left in overtime, and the [email protected] their 11 victories by six or Columbia Heights 68-63. Mr. Football for 2020 at a Mr. Foot- host Pelicans won after trailing by 24 points in the third quarter. fewer points. Wednesday ball banquet that was held virtually. Orlando 105, Detroit 96: Nikola Vucevic had 37 points and 11 The worst of the biting • Hopkins at Minnehaha The hard-hitting Ratzlaff had rebounds as the host Magic won its third in a row. cold behind us, it’s time to A half-dozen donuts Academy, 7 p.m. 70 tackles, 5½ tackles for loss, Atlanta 123, Denver 115: Trae Young had 35 points and 15 assists, peek out from under the Six Class 4A girls’ basket- three sacks, three interceptions leading the Hawks to a home victory. afghan and see what we ball teams have yet to lose GIRLS’ and two fumble recoveries in lead- Toronto 110, Philadelphia 103: Pascal Siakam and Fred VanVleet should be watching as the a game: Hopkins, Farm- BASKETBALL ing the Irish to a 6-0 record in an each had 23 points for the Raptors in Tampa, Fla. winter sports season bar- ington, Chaska, Stillwater, Friday abbreviated season. He added 10 Milwaukee 128, Sacramento 115: The Bucks dealt the host Kings rels ahead. Elk River and Rochester • Chaska at Wayzata, catches, three for touchdowns, for a seventh consecutive loss. Mayo. How long can that 7 p.m. A pair of future 209 yards receiving and blocked ASSOCIATED PRESS Chet’s decision continue? Based solely on Gophers face each other: three punts on special teams. News spread quickly last schedule, Elk River, Farm- Chaska junior forward For his career, Ratzlaff finished week that Minnehaha Acad- ington, Mayo and Stillwa- Mallory Heyer and Way- with 261½ tackles, 28½ for loss, emy 7-footer Chet Holmgren ter will be clear favorites zata junior guard Mara and 10½ sacks, five fumble recov- NBA STANDINGS SUMMARIES ON C7 was prepared to announce his through the remainder of Braun. eries, three interceptions and 33 college choice very soon. The the regular season. Hopkins, receptions for 714 yards and eight WESTERN CONFERENCE SUNDAY New York 103, week came and went and still its winning streak now up to BOYS’ HOCKEY touchdowns. NORTHWEST W L PCT GB L10 STR H A C Timberwolves 99 Utah 24 6 .800 — 9-1 L-1 13-2 11-4 11-4 no announcement. So, when 72, has the toughest road to Tuesday Ratzlaff, who was also named Portland 18 11 .621 5½ 8-2 L-1 8-6 10-5 9-6 Atlanta 123, can we expect a decision perfection. The Royals still • Maple Grove at Cen- the 2020 Star Tribune Metro Denver 16 14 .533 8 4-6 L-1 8-6 8-8 11-9 Denver 115 Oklahoma City 12 18 .400 12 3-7 W-1 4-9 8-9 5-14 Brooklyn 112, from the Slim Reaper? Lots must play fellow-undefeated tennial, 7 p.m. The two Player of the Ye ar and Associ- Timberwolves 7 24 .226 17½ 2-8 L-4 4-11 3-13 4-14 L.A. Clippers 108 of speculation — Gonzaga Chaska and face Becker, the highest-scoring teams ated Press Player of the Ye ar, had Milwaukee 128, SOUTHWEST W L PCT GB L10 STR H A C Sacramento 115 seems to be the front-runner class of Class 3A and riding in Class 2A. Maple committed following his sopho- San Antonio 16 11 .593 — 7-3 W-2 7-8 9-3 11-11 — but the only one who truly a 34-game winning streak Grove won the first more year to play hockey for the Memphis 13 13 .500 2½ 4-6 L-1 6-9 7-4 6-8 New Orleans 120, Dallas 13 15 .464 3½ 5-5 L-1 6-8 7-7 7-10 Boston 115, OT

Dakota County Community Developme... N/A C-6-All PUBLIC NOTICE Dakota County Commu... knows is Holmgren himself itself, twice in its final three game 9-3. University of Minnesota. But his New Orleans 13 17 .433 4½ 5-5 W-1 8-7 5-10 7-12 Oklahoma City 117, and he’s staying mum. games. Saturday exceptional football talents caught Houston 11 17 .393 5½ 2-8 L-7 5-6 6-11 8-10 Cleveland 101 Orlando 105, • Stillwater vs. Cretin- the eyes of college recruiters and PACIFIC W L PCT GB L10 STR H A C he began to edge away from his L.A. Lakers 22 9 .710 — 7-3 L-2 9-6 13-3 15-5 Detroit 96 Can Mounds View stay How good IS Gentry Derham Hall, at High- L.A. Clippers 22 10 .688 ½ 6-4 L-1 11-6 11-4 13-6 Toronto 110, perfect in basketball? Academy hockey? land, 3 p.m. Cretin- hockey commitment, saying foot- Phoenix 19 10 .655 2 8-2 W-2 10-5 9-5 11-7 Philadelphia 103 Just like 2019-20, the The hockey programs at ball was his greatest passion. Golden State 16 15 .516 6 5-5 L-2 11-6 5-9 9-7 Derham Hall looks to Sacramento 12 18 .400 9½ 3-7 L-7 7-11 5-7 6-10 M ONDAY Mounds View boys’ basket- Gentry Academy, a Vadnais avenge its only loss of “I just love everything about Chicago at ball team has won its first 11 Heights private school with the season. football,” he told the Star Tribune EASTERN CONFERENCE Houston, 7 pm ATLANTIC W L PCT GB L10 STR H A C Memphis at games. The Mustangs didn’t an eye fixed on hockey and in November. “There are only two Philadelphia 20 11 .645 — 5-5 L-1 13-2 7-9 16-5 Dallas, 7:30 pm Brooklyn 20 12 .625 ½ 7-3 W-6 11-5 9-7 10-9 close quite as strongly as in only its third season as GIRLS’ HOCKEY things I love more: God and my Charlotte at Toronto 16 15 .516 4 7-3 W-4 7-6 9-9 12-7 Utah, 8 pm they started last year, losing a member of the MSHSL, Friday family.” Boston 15 15 .500 4½ 4-6 L-1 8-5 7-10 11-9 eight of their last 17 games have been phenomenal. The He committed to Wisconsin New York 15 16 .484 5 6-4 W-1 8-6 7-10 10-10 Miami at • Warroad vs. Hill-Mur- Oklahoma City, 8 pm and finishing 20-8. Can they boys are 10-0 and ranked ray, at Aldrich Arena, last fall, ending a recruiting bat- SOUTHEAST W L PCT GB L10 STR H A C Portland at extend their unbeaten streak No. 2 in Class 1A, behind 7:30 p.m. The defensive- tle between the Badgers and the Charlotte 14 15 .483 — 6-4 W-1 9-8 5-7 9-9 Phoenix, 8 pm Miami 13 17 .433 1½ 6-4 W-2 7-7 6-10 7-11 Washington at with games at Cretin-Der- Hermantown. The Stars are minded Pioneers, No. Gophers for his services. Atlanta 13 17 .433 1½ 3-7 W-1 7-9 6-8 8-10 L.A. Lakers, 9 pm ham Hall and Forest Lake defeating opponents by an 3 in Class 2A, host the “I have never seen one player Orlando 13 18 .419 2 5-5 W-3 8-8 5-10 9-10 Washington 10 17 .370 3 6-4 W-4 5-9 5-8 5-13 San Antonio at this week? Don’t undersell average score of 9-1. The high-flying Warriors, No. impact a game in so many differ- Indiana, ppd. them. Mounds View isn’t girls have been pretty darn 2 in 1A. ent ways,” Rosemount coach Jeff CENTRAL W L PCT GB L10 STR H A C Milwaukee 18 13 .581 — 5-5 W-2 11-4 7-9 12-7 star-heavy, but the Mus- good themselves, posting Saturday Erdmann said in a news release Indiana 15 14 .517 2 4-6 W-1 7-9 8-5 9-8 tangs take care of the ball an 8-2 record, both losses from the MFCA. Chicago 13 16 .448 4 5-5 W-1 6-9 7-7 7-8 • Chisago Lakes at Cleveland 10 21 .323 8 0-10 L-10 7-9 3-12 8-9 and have shown they can by a single goal. Mound Westonka, 7 p.m. JIM PAULSEN Detroit 8 22 .267 9½ 3-7 L-3 6-8 2-14 5-13 Advertiser: Agency: Section-Page-Zone(s): Description: CLASSIFIEDS+ %"$&!# NOTICES STARTRIBUNE.COM/CLASSIFIEDS•612.673.7000•800.927.9233

Mortgage Foreclosures Mortgage Foreclosures Mortgage Foreclosures StorageFacilities Legal Notices 18-109827 LOCATED: Sherburne ON THE MORTGAGE ON THE DATE storagetreasures.com. PUBLIC NOTICE BUYING: Sports card collections, NOTICE OF MORTGAGE FORE- THE AMOUNT CLAIMED TO BE DUE OF THE NOTICE: $232,199.70 A062 -Ahmad, Jameelah; A070 - sets, wax boxes, cases from all years. ON THE MORTGAGE ON THE DATE THAT all pre-foreclosure require- Reyelts, Randi; A192 -Stout, Dakota County Community Will buy everything! 612-559-0666 CLOSURE SALE OF THE NOTICE: $238,267.57 ments have been complied with; Lashawna; B291 -Pope, Carrie; Development Agency THE RIGHT TO VERIFICATION OF THAT all pre-foreclosure require- that no action or proceeding has B420 -Williams, Darron; B501 - Notice is provided that the Board THE DEBT AND IDENTITY OF THE ments have been complied with; been instituted at law or otherwise Reit, Katherine; C149 -Floyd, of Commissioners of the Dakota ORIGINAL CREDITOR WITHIN THE that no action or proceeding has to recover the debt secured by said Kortez County Community Development TIME PROVIDED BY LAW IS NOT been instituted at law or otherwise mortgage, or any part thereof; Agency (CDA), as the sole member 2 VIKINGS SEASON TICKETS. AFFECTED BY THIS ACTION. to recover the debt secured by said PURSUANT, to the power of sale PUBLIC STORAGE #08305, of DCCDA Section 18, LLC will hold 50 YARD LINE. Club access. NOTICE IS HEREBY GIVEN, that de- mortgage, or any part thereof; contained in said mortgage, the 7800 Park Drive, apublic hearing on Tuesday, Call: 954-523-1700. fault has occurred in the conditions PURSUANT, to the power of sale above described property will be Chanhassen, MN 55317, March 16, 2021 beginning at 3:30 p. of the following described mort- contained in said mortgage, the sold by the Sheriff of said county as (952) 225-4247 m. at the CDA offices located at 395 Misc. ForSale &Wanted gage: above described property will be follows: Time: 09:30 AM 1228 Town Centre Drive, Eagan, DATE OF MORTGAGE: November Minnesota to consider whether sold by the Sheriff of said county as DATE AND TIME OF SALE: March Sale to be held at www. $1,000 Secured Bond 5% ROI 20 Yr 25, 2006 follows: 30, 2021, 10:00AM storagetreasures.com. the sale, transfer and/or exchange www.barrierhomesinc.com ORIGINAL PRINCIPAL AMOUNT OF DATE AND TIME OF SALE: March PLACE OF SALE: Sheriff’s Main Of- 0328 -Beahen, Angie; 0529 - of the following described proper- 0000383350-01 N/A 1 Col x 4.76 in 0 701-238-4140 MORTGAGE: $188,300.00 29, 2021, 10:00AM fice, 13301 Hanson Blvd NW, And- Lindamood, Joseph ty currently owned by DCCDA Sec- MORTGAGOR(S): George H. Nikko PLACE OF SALE: Sheriff’s Main Of- over, MN 55304 to pay the debt se- tion 18, LLC is advisable: LIFE ON MARS FIRST -MAYBE. and Cynthia A. Nikko, husband and fice, 13880 Highway 10, Elk River, cured by said mortgage and taxes, PUBLIC STORAGE #08317, 200 195 Kathleen Drive, West St. Paul COLLEGE OR UNIVERSITY: INEED wife MN 55330 to pay the debt secured if any, on said premises and the W78th Street, RichfIeld, Lot 7, Block 1AERehnbergs ACCESS TO MICROSCOPE. Have im- MORTGAGEE: Mortgage Electronic by said mortgage and taxes, if any, costs and disbursements, including MN 55423, (612) 263-7871 Southview Addition pact glass by comet to Cambrian Registration Systems, Inc. on said premises and the costs and attorneys fees allowed by law, sub- Time: 09:30 AM 15442 Drexel Way, Apple Valley age. Life forms inside. Lab test TRANSACTION AGENT: Mortgage disbursements, including attorneys ject to redemption within 6months Sale to be held at www. Lot 2, Block 2Apple Valley East 4th done - not slag glass. 612-865-8648 Electronic Registration Systems, fees allowed by law, subject to re- from the date of said sale by the storagetreasures.com. Addition Inc. demption within 6months from the mortgagor(s) the personal represen- 0103 -Thomas, Christian; 0189 - 3551 69th Street, Inver Grove 404 Dogs MIN#: 1000157-0007548515-7 date of said sale by the tatives or assigns. Jericho Construction LLC Dill, Heights LENDER OR BROKER AND MORT- mortgagor(s) the personal represen- TIME AND DATE TO VACATE PROP- James; 0196 -Romero, Jocelyn; Lot 12, Block 2 South Grove No 11 GAGE ORIGINATOR STATED ON tatives or assigns. ERTY: If the real estate is an owner- 0239 -Regan, Michael; 0286 -Los 1921 Walnut Street, Hastings AUSSIE SHEPHERD TOY PUPS Red THE MORTGAGE: Countrywide TIME AND DATE TO VACATE PROP- occupied, single-family dwelling, Sanchez Taqueria #2 Montero, Lot 82, Westwood Addition Second merles, M, AKC, shots, dews. $1500. Home Loans, Inc. ERTY: If the real estate is an owner- unless otherwise provided by law, Emeterio; 0335 -Herling, Michelle; Addition Call: 612-802-5283 or 612-325-2360 SERVICER: Fay Servicing, LLC occupied, single-family dwelling, the date on or before which the 0748 - Alston, Marcus 157 EButler Street, West St. Paul Bernedoodle-Mini tri &parti col- DATE AND PLACE OF FILING: Filed unless otherwise provided by law, mortgagor(s) must vacate the prop- Lot 24, Premo Addition ored, family raised, DOB 12-29-20, December 6, 2006, Sherburne the date on or before which the erty, if the mortgage is not reinstat- PUBLIC STORAGE #26662, 150 3650 77th Street, Inver Grove F2b, mulitgen$2,500 641-590-5602 County Recorder, as Document mortgagor(s) must vacate the prop- ed under section 580.30 or the W81st Street, Blooming- Heights Bernese Mountain Dog Wonderful Number 638036, thereafter modified erty, if the mortgage is not reinstat- property is not redeemed under sec- ton, MN 55420, (952) 884-7199 Lot 10, Block 3 South Grove No 14 by Loan Modification Agreement re- companion dogs, family socialized, ed under section 580.30 or the tion 580.23, is 11:59 p.m. on Sep- Time: 09:30 AM 2262 Apache Street, AKC reg, vet checked, health cert., corded on December 31, 2014 as property is not redeemed under sec- tember 30, 2021, or the next busi- Sale to be held at www. Mendota Heights wormed www.pvberners.com Document Number 797650; there- tion 580.23, is 11:59 p.m. on Sep- ness day if September 30, 2021 storagetreasures.com. Lot 8, Block 11 Friendly Hills [email protected] after reformed by Court Order re- tember 29, 2021, or the next busi- falls on aSaturday, Sunday or legal 124A -Jabs, Melissa; 339 -holtan, Rearrangement Bordoodle pups Smart, lovable and corded on September 6, 2012 as ness day if September 29, 2021 holiday. William; 571 -Hunter, Cheryl; 581 - 14201 Diamond Path Court, Document Number 756272 falls on aSaturday, Sunday or legal "THE TIME ALLOWED BY LAW FOR Hunter, Cheryl; 607 -Sims, loyal F1 &F1b, RTG $2,000 605-216- Apple Valley 6534 www.dakotabordoodles.com ASSIGNMENTS OF MORTGAGE: holiday. REDEMPTION BY THE MORTGA- Tamasha; 901 -andrews, jeremiah; Lot 1, Block 1 Kerry Addition Assigned to: Bank of America, N.A., Ad Number: Insertion Number: Size: Color Type: "THE TIME ALLOWED BY LAW FOR GOR, THE MORTGAGOR’S PER- 929 - SWANSON, JUSTIN The terms and conditions of the Successor by Merger to BAC Home REDEMPTION BY THE MORTGA- SONAL REPRESENTATIVES OR AS- sale will be available at the CDA’s CAVAPOO PUPS - Health Guar, Loans Servicing, LP FKA Country- GOR, THE MORTGAGOR’S PER- SIGNS, MAY BE REDUCED TO FIVE PUBLIC STORAGE #08307, office beginning March 12, 2021. shots. Starting at $850. 320-219-3032 wide Home Loans Servicing, LP; SONAL REPRESENTATIVES OR AS- WEEKS IF AJUDICIAL ORDER IS 6570 Flying Cloud Drive, For more information on this pro- thereafter assigned to Wilmington SIGNS, MAY BE REDUCED TO FIVE ENTERED UNDER MINNESOTA Eden Prairie, MN 55344, posed sale, transfer and/or ex- Savings Fund Society, FSB, doing WEEKS IF AJUDICIAL ORDER IS STATUTES SECTION 582.032 DE- (952) 225-4279 GERMAN SHEPHERD PUPS change of property contact Lori AKC. Exc temp. Genetic guar antee. business as Christiana Trust, not in ENTERED UNDER MINNESOTA TERMINING, AMONG OTHER Time: 09:30 AM Zierden at the Dakota County CDA, 715-537-5413. www.jerland.com its individual capacity, but solely as STATUTES SECTION 582.032 DE- THINGS, THAT THE MORTGAGED Sale to be held at www. trustee for BCAT 2015-14ATT; 1228 Town Centre Drive, Eagan, TERMINING, AMONG OTHER PREMISES ARE IMPROVED WITH A storagetreasures.com. MN 55123, telephone (651) 675- Goldendoodles -Mini, Cavapoos, thereafter assigned to Wilmington THINGS, THAT THE MORTGAGED RESIDENTIAL DWELLING OF LESS 0127 - Abukar, Mohammed Cavachons, Shorkies, Teddy Bears, Savings Fund Society, FSB, doing 4479. Public comments may be Maltese, Poochons, Yorkie-chons. PREMISES ARE IMPROVED WITH A THAN 5UNITS, ARE NOT PROPER- submitted orally or in writing to business as Christiana Trust, not in RESIDENTIAL DWELLING OF LESS TY USED FOR AGRICULTURAL PUBLIC STORAGE #25548, *UTD Shots, Health Cert, Guarantee. its individual capacity, but solely as the CDA through the public hear- House training tips! Lic#484991. THAN 5UNITS, ARE NOT PROPER- PRODUCTION, AND ARE ABAN- 3735 Sibley Memorial Hwy, ing held on March 16, 2021. trustee for BCAT 2015-14BTT by a TY USED FOR AGRICULTURAL DONED. Eagan, MN 55122, Brenda 608-574-7931. Dusty 920-210- Corrective Assignment of Mortgage; PRODUCTION, AND ARE ABAN- Dated: February 4, 2021 (651) 309-8567 7441. SpringGreenPups.com thereafter assigned to Wilmington DONED. PennyMac Loan Services, LLC Time: 09:30 AM GREAT PYRENEES PUPPIES 8wks, Savings Fund Society, FSB, not in Dated: February 1, 2021 Assignee of Mortgagee Sale to be held at www. Certi�cates of Assumed Name 1st shots, vaccinated, wormed, so- its individual capacity, but solely as Wilmington Savings Fund Society, LOGS LEGAL GROUP LLP storagetreasures.com. cialized. $750. 763-227-7353 trustee for BCAT 2020-1TT FSB, not in its individual capacity, BY Melissa L. B. Porter - 0337778 163 -cook, Mel; 272 -McMiller, LEGAL DESCRIPTION OF PROPER- Certificate of Assumed Name NEWFOUNDLAND PUPS Vaccinated, but solely as trustee for BCAT 2020- Gary J. Evers - 0134764 Britnye; 286 - Slaughter, Christy State of Minnesota, Pursuant to TY: That part of Government Lot Six 1TT Joseph M. Rossman - 0397070 wormed. Brown, blk, blk &wht, tan (6), Section Four (4), Township the Chapter 333 Minnesota Stat- & white. $1250-$1500. 763-227-7353 Assignee of Mortgagee Attorneys for Mortgagee PUBLIC STORAGE #08309, utes: the undersigned, who is or Thirty-four (34), Range Thirty (30), LOGS LEGAL GROUP LLP LOGS Legal Group LLP 4425 West 77th St, Edina, OLD ENGLISH SHEEPDOG AKC Hlth in Sherburne County, Minnesota BY Melissa L. B. Porter - 0337778 12550 West Frontage Road, Suite MN 55435, (952) 225-4289 will be conducting business in the guar, shots, wormed, puppy pack, described as follows: Beginning on Gary J. Evers - 0134764 200 Burnsville, MN 55337 Time: 09:30 AM State of Minnesota under an as- raised in home, some w/blue eyes. the Northeasterly line of the Military Joseph M. Rossman - 0397070 (952) 831-4060 Sale to be held at www. sumed name, hereby certifies: M/F $2000. 320-219-3032 Road as now located at apoint 1. State the exact assumed name Attorneys for Mortgagee THIS IS ACOMMUNICATION FROM storagetreasures.com. PEMBROKE WELSH CORGI AKC which is Six Hundred (600) feet LOGS Legal Group LLP A DEBT COLLECTOR 1220 -LIEF, EDWARD; 2005 - under which the business is or will be conducted: LA BOULANGERIE Loved! Farm & fam rsd & all colors. Northwesterly of the intersection of 12550 West Frontage Road, Suite 2/15, 2/22, 3/1, 3/8, 3/15, 3/22/21 Ibrahim, Sabira; 2089 -ECS Steele, Shots. DM clear. Ready! 712-577-7677 said Northeasterly Right of Way line 200 Burnsville, MN 55337 Star Tribune Luana; 2454 - Kitui, Janet MARGUERITE with the Northwesterly line of Lot (952) 831-4060 2. State the address of the princi- Ten (10), in Long Lake Park, in Sec- THIS IS ACOMMUNICATION FROM Public sale terms, rules, and regula- pal place of business. 1279 Pug Puppies AKC black males tion 4; thence Northeasterly Seven A DEBT COLLECTOR Probates tions will be made available prior to RANDOLPH AVENUE, SAINT PAUL, Hundred (700) feet on aline run to a 2/8, 2/15, 2/22, 3/1, 3/8, 3/15/21 the sale. All sales are subject to MN 55105 UNITED STATES ready in March 701-320-5962 point on the shore of Long Lake Star Tribune Notice to credtors in re: cancellation. We reserve the right to 3. List the name and complete Pugs AKC Reg 1Fawn M, 2Black M, which is Four Hundred (400) feet All refuse any bid. Payment must be in street address of all persons con- Ready Feb 15 w/ shots, $500 Deposit, 21-113610 Meloy Lee Brandsrud ducting business under the above Northerly from the Northeasterly claims to the estate mentioned cash or credit card-no checks. Buy- Will meet, $1,500 701-830-2047 corner of Lot 10 in Long Lake Park, NOTICE OF MORTGAGE FORE- Assumed Name. BAKER &LOVER, above must be presented within ers must secure the units with their SCHNAUZER MINIATURE CKC, males, which point is the point of begin- CLOSURE SALE four months from February 16, 2021 own personal locks. To claim tax- INC. 1196 SELBY AVENUE, SAINT ning of the land to be described; PAUL, MN 55104-6421 salt &pepper. Shots, dews, tails. THE RIGHT TO VERIFICATION OF after which all said claims are forev- exempt status, original RESALE cer- Very socialized. 320-760-6839 thence continuing on said last THE DEBT AND IDENTITY OF THE er barred. Send claims to Scott tificates for each space purchased 4. Icertify that Iamauthorized to named course Two Hundred Twenty ORIGINAL CREDITOR WITHIN THE Brandsrud, 7545 Maple Ave., Hes- is required. By PS Orangeco, Inc., sign this certificate and Ifurther 442 (220) feet, more or less, to the shore TIME PROVIDED BY LAW IS NOT peria, CA 92344 701 Western Avenue, Glendale, CA certify that Iunderstand that by Sports &Fitness Equipment of Long Lake; thence Northeasterly AFFECTED BY THIS ACTION. 91201. (818) 244-8080. signing this certificate, Iamsub- along the shore of said Long Lake NOTICE IS HEREBY GIVEN, that de- ject to the penalties of perjury as GOLF BALLS WANTED ! QUANTITIES for adistance of Seventy-Five (75) fault has occurred in the conditions StorageFacilities set forth in Minnesota Statutes OF 2000 Golf Balls or More feet; thence Northwesterly adis- of the following described mort- section 609.48 as if Ihad signed Please Call Steve 507-456-0530 tance of Two Hundred Twenty (220) gage: this certificate under oath. feet to apoint one Hundred (100) NOTICE OF PUBLIC SALE Dated: 1/27/21 DATE OF MORTGAGE: May 20, To satisfy the owner’s storage lien, 626 feet Northeasterly of point of begin- 2019 (Signed) Francois Kiemde ning; thence Southwesterly adis- PS Orange Co. Inc. will sell at public ORIGINAL PRINCIPAL AMOUNT OF lien sale on March 12, 2021, the SENIOR LIVING tance of One Hundred (100) feet to MORTGAGE: $216,015.00 the point of beginning. personal property in the below-list- 107 MORTGAGOR(S): Joelle Haywood ed units, which may include but are Home &Commercial Services Also Fosso, a single woman Beginning on the Northeasterly line not limited to: household and per- MORTGAGEE: Mortgage Electronic sonal items, office and other equip- ICE DAM PREVENTION Insulation, **BLOOMINGTON** of the Military Road as now located Registration Systems, Inc. Beautiful 1BR &2BR senior apts at apoint which is Six Hundred ment. The public sale of these items venting, heating cables. Senior dis- TRANSACTION AGENT: Mortgage count. Fast, reliable service. Insur- w/ solid oak cabinets, ceramic (600) feet Northwesterly of the inter- will begin at 09:30 AM and continue tile, dishwasher, microwave, bal- Electronic Registration Systems, until all units are sold. The lien sale ed. 20 years exp. Call: 763-232-3450. section of said Northeasterly Right Inc. cony! Underground heated park- of Way line with the Northwesterly is to be held at the online auction ing, elevator, on bus line. No MIN#: 1008671-0000120547-3 website, www.storagetreasures. line of Lot 10, in Long Lake Park, in LENDER OR BROKER AND MORT- 140 pets. 2BR now only $1049! 1BR Section 4; thence Northeasterly com, where indicated. For online Therapeutic Massage reduced to $949! GAGE ORIGINATOR STATED ON lien sales, bids will be accepted un- Seven Hundred (700) feet on aline THE MORTGAGE: American Mort- 763-753-4914 run to apoint on the shore of Long til 2hours after the time of the sale HEALTHY TOUCH Lots of TLC. 8848 Nicollet Ave So. gage & Equity Consultants, Inc. specified. Lake which is Four Hundred (400) SERVICER: PennyMac Loan Serv- 7 days. 9am-9pm. It’s a wonderful www.daystarapts.com feet Northerly from the Northeaster- ices, LLC session! 612-275-8727 ly corner of Lot 10, in Long Lake PUBLIC STORAGE #08308, DATE AND PLACE OF FILING: Filed 7921 Eden Prairie Road, Park, which point is the point of be- June 3, 2019, Anoka County Re- 645 ginning of the land herein conveyed; Eden Prairie, MN 55347, corder, as Document Number 2228 (952) 225-4284 thence continuing on said last 345.002 DBL BUNGALOW/ named course 220 feet, more or Time: 09:30 AM ASSIGNMENTS OF MORTGAGE: Sale to be held at www. Buy Now! "Viral Spiral": ACollec- DUPLEX/TOWNHOME less, to the shore of Long Lake; Assigned to: PennyMac Loan Serv- tion of Chilling Poems and Photos thence Southwesterly along the storagetreasures.com. UNFURN. ST. PAUL ices, LLC 5005 -chesley, William; 5140 - About Covid-19 and Black Lives shore of said Long Lake, adistance LEGAL DESCRIPTION OF PROPER- Matter by Sarah PRoss. Also of 20 feet, thence Westerly adis- Bjugan, Chris; 5230 -Whaley, Ro- 1044 MINNEHAHA AVE E. 5BR du- TY: Lot 42, Block 2, of Rivenwick nald YouTube video! Unforgettable! Buy tance of 220 feet, more or less to Village CIC 186 @ Amazon/Barnes & Noble/Xlibris plex. $1900 +electric &garbage. the point of beginning. PROPERTY ADDRESS: 13900 Iron- 10am-8pm call 651-771-7102 or after PUBLIC STORAGE #34107, 8pm call 612-382-6897 PROPERTY ADDRESS: 3611 74th St stone Trl NW, Ramsey, MN 55303 SE, Clear Lake Township, MN 9033 Lyndale Ave S, PROPERTY IDENTIFICATION NUM- Bloomington, MN 55420, 55319 BER: 34-32-25-22-0038 VEHICLES WANTED PROPERTY IDENTIFICATION NUM- (952) 641-7927 COUNTY IN WHICH PROPERTY IS Time: 09:30 AM AMERICAN FLYER AND LIONEL BER: 20-204-3119 LOCATED: Anoka COUNTY IN WHICH PROPERTY IS Sale to be held at www. Electric Trains Wanted - Will Pay $$$$$ CASH FOR CARS $$$$$ THE AMOUNT CLAIMED TO BE DUE 201 Cash. Call Jerry 763-572-0238 Repairables or Junkers 612.414.4924 Minneapolis Star Tribune Monday, February 22, 2021 5A: Attachment C

February 4, 2021

Lori Zierdan Real Estate Specialist Dakota County Community Development Agency 1228 Town Centre Drive Eagan, MN 55123

Dear Ms. Zierdan,

Twin Cities Habitat for Humanity (TC Habitat) is pleased to submit this application in response to the RFP for the sale of eight single family homes released by the Dakota County Community Development Agency (CDA) on January 4, 2021. TC Habitat’s goal is to use these homes as a pilot program to prove out success working with a public partner to create new affordable homeownership. When successful, we expect to expand this work to other public housing authorities and potentially further with the CDA. This could be a gamechanger in creating affordable homeownership, while simultaneously, freeing up resources for these public entities to allow them to use their resources more effectively!

We are requesting additional funding from the CDA of $240,400 to complete this project. If selected to proceed, TC Habitat will be leveraging other funding acquired from MHFA at $30,000 per project in development gap and affordability gap, 1st mortgage revenue, as well as, supplementing the additional $157,898 to fully fund the completion and sale of these eight homes to qualified buyers. If for any reason, the funding request must be reduced, TC Habitat is willing to evaluate the opportunity as such. TC Habitat has the ability, if necessary, to re-direct resources from other parts of its portfolio. Of course, this would have an effect of reducing our ability to serve other families in these locations and is therefore not preferred.

Since 1985, TC Habitat has built or rehabilitated, and sold over 1,500 homes to qualifying Habitat homebuyers. Over the past 5 years TC Habitat has rehabbed and sold 112 homes in the 7-county metro area. This experience, in addition to our financial security and ability to pay fair market value for all eight properties, makes TC Habitat a well-qualified partner for this venture.

TC Habitat’s mission is to bring people together to create, preserve, and promote affordable homeownership and advance racial equity in housing. This opportunity is a great way for TC Habitat to expand our work in Dakota County and we are thankful for your consideration!

202 Sincerely,

Chad Bouley Chief Real Estate Officer Twin Cities Habitat for Humanity, Inc.

203 REQUEST FOR PROPOSALS Single Family Homes for Sale for the Resale to Qualified Homeowners in Dakota County

The CDA seeks a non-profit agency (Agency) to purchase the homes for resale to income qualified buyers. A list of the homes along with the appraised market value is listed in Attachment A.

Successful respondents must offer to pay a minimum of appraised market value for each property to be acquired. Within 30 days following award, the Agency will execute a Purchase Agreement (“Purchase Agreement”) with the CDA that will include, but not be limited to, the program requirements stated below. 1. Due Diligence Period. The Purchase Agreement will establish a due diligence period not to exceed three (3) months after the date of execution of the Purchase Agreement. The Agency will be responsible for obtaining all required approvals and completion of all property due diligence and investigation within this three-month period. 1 204 2. Conveyance of Property. The conveyance of each property to the Agency will not occur until the Agency has demonstrated readiness to proceed and complete the project in a timely manner (i.e. have financing in place and qualified buyers). 3. Project Timeline. The Purchase Agreement will establish a timeline for the timely completion of the sale of each home. 4. Reversion Clause. The Purchase Agreement will contain a reversionary clause allowing the CDA Section 18 LLC to re-purchase the property if resale to qualified buyer does not occur according to the schedule set forth in the Purchase Agreement. 5. Escrow. An escrow deposit will be required at the time the Purchase Agreement is executed.

205 CRITERIA Responses received will be subject to a two-part review process. Part 1: Mandatory Requirements A Respondent must meet minimum criteria in order to have their proposals considered. A majority of these criteria are addressed in Part 1 of the RFP Application. At a minimum, Respondents must:

 Demonstrated experience and capacity to feasibly sell multiple homes (up to 8).  Demonstrated experience and capability to successfully income qualify households

SELECTION CRITERIA Maximum Points Prior Agency experience of similar project 60 Willingness and ability to acquire and resell all eight properties 10 Points Subtotal 70 80% median or less; however, additional points awarded if home can be sold to 1 point for each 1% lower income families under 60% of median income (maximum of 10 points) Total Possible Maximum Points 80

206 APPLICATION PROCEDURE Applications are due by 3:00 pm on February 5, 2021

Email application materials to Lori Zierden at [email protected]

LATE PROPOSALS WILL NOT BE ACCEPTED

Questions about the RFP must be submitted in writing to Lori Zierden at [email protected].

Agency Application. Provide one Business Application per proposal. (Attachment B) Resumes of the development team Documentation supporting financial feasibility Disclosure Affidavit (Attachment C)

207 ATTACHMENT A: COVERSHEET

Single Family Lots for Sale Request for Proposal

Dakota County Community Development Agency Applications are due by 3:00 pm on January 29, 2021

For each property included in your application proposal, provide the information below

Property Address Offer Amount Order of Acquisition (for multiple Appraised Market st properties, which will be acquired 1 , etc.) Value 195 Kathleen Drive $203,000 #4 $203,000 West St. Paul 15442 Drexel Way $265,000 #1 $265,000 Apple Valley 3551 69th Street $220,000 #6 $220,000 Inver Grove Heights 1921 Walnut Street $228,000 #8 $228,000 Hastings 157 E Butler Street $216,000 #2 $216,000 West St. Paul 3650 77th Street $210,000 #5 $210,000 Inver Grove Heights 2262 Apache Street $272,000 #7 $272,000 Mendota Heights 14201 Diamond Path Court $263,000 #3 $263,000 Apple Valley

208 ATTACHMENT B: BUSINESS APPLICATION

PART 1 Complete and submit this application

1. Business/Developer Name: Twin Cities Habitat for Humanity

Address: 1954 University Ave W, St. Paul MN 55104

Phone: 612-305-7144 Fax:

Federal Tax ID Number: 36-3363171 Email address: [email protected]

2. List individuals having an interest of ten percent (10%) or more in the business: Name Title Description of Percentage Interest of Interest N/A

3. The business was established on 4/17/85 , organized or operating under Date the laws of the state of Minnesota , as:

A corporation A limited liability company A non-profit or charitable institution or corporation A partnership known as a business association A joint venture known as .

4. Number of years in business: 36

5. List the members of the development team and consultants. Insert additional pages as necessary (attach resumes of all members of the development team. Name Title Firm Role See Attached List of Executive Team

209 1. On separate page please provide the following information (limit to 4 pages or less): a. Brief description of the Respondent’s experience in selling homes to low/mod families. b. Please list similar projects in similar markets wherein the Respondent has completed transactions similar to this project within the last five years. c. Attach evidence of financing feasibility and/or how much financial assistance is needed from the CDA. d. Additional Comments.

The information contained herein is true and correct to the best of my/our knowledge and belief.

Chief Real Estate Officer 2/4/21 Signature Title Date

Signature Title Date

210 ATTACHMENT C: DISCLOSURE AFFIDAVIT

1. PRINCIPAL INFORMATION This affidavit must be completed by an authorized person or persons on behalf of the business or non-profit entity (“Business”) submitting the proposal.

Business Name Twin Cities Habitat for Humanity Business Address 1954 University Avenue, St. Paul MN 55104

Individual Name Chad Bouley, Chief Real Estate Officer Phone Number 612-305-7144 Email Address [email protected] Home Address n/a

211 Statement of Non-Collusion The individual signing this affidavit, on his/her own behalf or ion the Business’s behalf, as applicable, swears or affirms that: 1. He or she is fully informed respecting the preparation and contents of the subject proposal. 2. The proposal is genuine and is not a collusive or sham offer, nor does the Business/Individual, as applicable, intend to hold said property as a “speculative” investment. 3. The price or prices quoted in this offer are fair and proper and this Business/Individual or any of its officers, partners, agents, representatives, owners, or employees, as applicable, has not in any manner sought to secure through any collusion, conspiracy, connivance, or unlawful agreement any advantage against the CDA, or any person interested in the Proposed contract and/or redevelopment.

Chief Real Estate Officer 2/4/21 Signature Title Date

STATE OF MINNESOTA} SS COUNTY OF DAKOTA}

The forgoing instrument was acknowledged before me this day of , by (individually) on behalf of (company name).

By Notary Public

212 ATTACHMENT D: PROJECT APPLICATION

PART 2

Property Address(es): 195 Kathleen Drive, WSP; 15442 Drexel Way, AV; 3551 69th Street, IGH; 1921 Walnut Street, HST; 157 E. Butler Ave, WSP; 3650 77th Street, IGH; 2262 Apache Street, MH; 14201 Diamond Path Court, AV

Developer: Twin Cities Habitat for Humanity

1. Proposed project description: Who/how will you sell the homes to low/moderate income families?

TC Habitat’s homeownership program features a multiple-phase marketing and selection process. Homes are marketed and sold to mortgage-ready clients earning between 30%-80% AMI. Potential homebuyers may be referred to TC Habitat by either a referral partner, TC Habitat event, word-of-mouth, TC Habitat Website, or social media. Interested households fill out an eligibility survey and review program requirements on our website. Potential applicants that self-identify as income eligible (80% AMI or less) complete the eligibility survey on-line. Once completed, clients move on in the application process and submit their formal applications and documentation. The income verification process is conducted multiple times throughout the TC Habitat homebuying process, first at the time that a client applies to the program. Having been accepted into the program, their income will then be verified periodically as they work with their financial coach to become mortgage ready. Once deemed mortgage ready, client income is verified again as they are issued a mortgage preapproval and advanced into TC Habitat’s matching pool. In the matching pool, applicants receive property letters listing properties in TC Habitat's production pipeline that they are eligible to purchase based on their household size and ability to afford the housing costs associated with a given property. Clients select properties they are interested in purchasing and are matched to homes accordingly. These homebuyers must also complete sweat equity and homebuyer education classes (subject to Covid restrictions) to prepare them for homeownership. Final income documentation is collected from our clients by our Community Loan Officers at the time the purchase agreement is executed, approximately 60 days prior to closing. Our lending policies and procedures include detailed instructions for what documentation to collect and how to calculate income based on the type of income being received. For example, if a client receives an hourly wage, we will collect the 8 most recent paystubs and calculate their hourly rate multiplied by the average hours worked per pay period. TC Habitat follows HUD Part 5 Guidelines for determining income. TC Habitat homes will remain affordable for 30+ years because of TC Habitat’s purchase option and buyback policy. Additionally, all TC Habitat homebuyers are first time homebuyers and 85% of our homebuyers are people of color. TC Habitat intends to purchase and rehabilitate the 8 homes in Dakota county listed in this RFP. The scopes of work will be determined per each project based on the existing condition of each home but could include furnace and water heater replacement and reroofing as well as additional updating and repairs. TC Habitat standard rehab guideline is that a new homeowner should reasonably have at least 5 years left on mechanicals and roofing materials before replacement could be expected. Additional interior and exterior work may be necessary to meet Enterprise Green Community rehab standards and make homes marketable to TCHFH buyers.

Typical TC Habitat rehabilitation work on acquired homes would include:  Radon testing and mitigation, if appropriate  Replacing cabinetry and carpentry items in poor condition including cabinets, vanities, railings and trim, if needed 10

213  Repairing or replacing damaged or deteriorating pieces of siding, exterior trim, and gutters  Replacing damaged or deteriorating interior and exterior doors, door hardware and garage service doors  Replacing any broken or mismatched glass or windows  Replacing outdated or damaged vinyl flooring and carpeting; refinishing hardwood floors if damaged or stained  Replacing damaged or outdated range, rangehood, and refrigerator in kitchen  General plumbing work, when necessary, to include providing rodent and corrosion proof screens and insulating water piping to Minnesota Energy Codes when applicable.  General HVAC work, including furnace (or boiler) tune up or replacement, duct cleaning and register cover replacement  Necessary electrical work and parts including confirmation of working smoke and CO detectors, correcting any illegal or dangerous wiring discovered  Additional waterproofing, insulation and sealing, where necessary and accessible  If needed, replacing and repairing shingles and roofing materials.

Furthermore, TC Habitat works collaboratively with Habitat homebuyers who have members with special needs. Clients with special needs may request TC Habitat install grab bars, ramps and other minor home modifications. By providing this option for families, TC Habitat ensures households with special needs can remain safe and independent in their home. Our hope would be to retain and restore the accessability modifications that have been made to 3650 77th St, Inver Grove Heights and expand the accessible features to accommodate a buyer in our program who requires a home that has been modified for accessability.

2. Describe innovative use of financial assistance and how much or what type of financial assistance will be needed from the CDA.

TC Habitat is requesting financial assistance of $240,400 from the Dakota County CDA. As indicated in the proforma, this is the delta between assessed value and the appraised value given to TC Habitat by the Dakota County CDA (to include some additional funding for the Inver Grove Heights home for accessibility work). This will allow TC Habitat to focus its additional resources on the rehabilitation work. Several of the homes will need roofing, water heaters or furnaces replaced, and TC Habitat plans to do some additional interior and exterior rehab work to meet Enterprise Green Community rehab standards and make homes marketable to TC Habitat buyers. TC Habitat plans to finish additional living space in 3 of the homes. The hope is to increase marketability and accommodate slightly larger family sizes by adding additional lower-level living space in 15442 Drexel Way and 14201 Diamond Path Ct, Apple Valley. TC Habitat also would budget to add a second bathroom in the 4-bedroom home at 2262 Apache St in Mendota Heights, making the configuration more appealing to a larger family and maximizing usage of a 4-bedroom home. Dakota County CDA funding would also go towards updating the existing accessible features at 3650 77th St in Inver Grove Heights and expanding them to include a roll in shower as an additional accessible modification to that home. Acquiring these 8 homes and an additional amount of financial assistance from the county would allow TC Habitat to pilot an innovative use of Minnesota Housing Finance Agency (MHFA) development gap and affordability gap financing that has already been awarded. Ideally, if this pilot opportunity is successful, TC Habitat hopes to be able to replicate this process again in the future with the possibility that alternative internal funding sources would be available at that time and not need additional funding from Dakota County CDA. 11

214

3. Provide the justification for expected sales prices to end buyers. Attach supporting material as needed.

TC Habitat’s final sales price to clients will be based on the fair market value of the property and supported by an appraisal. TC Habitat provides buyers with affordability subsidy in order to guarantee that the first mortgage they qualify for on the property has payments that are no more than 30% of their monthly budget. Please see the attached spreadsheet detailing rehab budget per project as well as the projected sources and uses.

215 4. Project commencement schedule:

6 months or less X

12 months or less

State typical resell timeline per home: 12 months.

5. Additional Comments:

TC Habitat requests the homes to be in turnkey condition prior to taking possession. Turnkey is to include cleaning, updated flooring (replaced vinyl and carpet) and interior wall patching and painting.

The information contained herein is true and correct to the best of my/our knowledge and belief.

Chief Real Estate Officer 2/4/21 Signature Title Date

Signature Title Date

216 a. Brief description of the Respondent’s experience in selling homes to low/mod families.

Since 1985, TC Habitat has built or rehabilitated, and sold over 1,500 homes to qualifying Habitat homebuyers. TC Habitat is an experienced administrator of HOME/CDBG funds and long-term affordability compliance requirements.

b. Please list similar projects in similar markets wherein the Respondent has completed transactions similar to this project within the last five years.

Please refer to the included map of rehabilitation projects TC Habitat has completed in the last 5 years in the 7 county metro area. There were a total of 112 homes during that time period that TC Habitat rehabbed and sold to qualifying buyers/program participants.

c. Attach evidence of financing feasibility and/or how much financial assistance is needed from the CDA.

TC Habitat is requesting financial assistance of $240,400 total for all 8 houses from the CDA to offset the cost of acquisition and or updating/repair work. Please see the attached sources and uses for a breakdown per project. TC Habitat has access to a $25 million line of credit with MHFA which can be available to finance the acquisition of these 8 homes as an interim financing strategy for ease of transaction. Please see the attached financial statement and commitment letter. TC Habitat’s hope that this acquisition could turn into a longer term partnership/ acquisition model and that in the future TC Habitat may be able to leverage other funding sources and reduce or eliminate future requests for additional funding from the CDA for rehabs following this model.

d. Additional Comments

Thank you for the invitation to compete for this exciting prospect. Ideally, if this pilot opportunity is successful, TC Habitat hopes to be able to replicate this process again in the future with the possibility that alternative internal funding sources would be available at that time, eliminating the need additional funding from Dakota County CDA.

217 Qualifications of TCHFH Team Members

ADMINISTRATION

President and Chief Executive Officer - Chris Coleman joined Twin Cities Habitat in 2018 after serving as Mayor of St. Paul from 2006 to 2018. As Mayor, Chris was a champion for economic development, education, and racial equity. From 2013 to 2014, Chris was the President of the National League of Cities, a bi-partisan coalition of leaders from across the country. Prior to his election as Mayor, Chris was an investment advisor for RBC and he served for six years on the St. Paul City Council. Chris was born and raised in St. Paul and earned bachelor’s and law degrees from the University of Minnesota.

Chief Operating Officer – Robyn Bipes-Timm oversees Habitat’s mortgage lending, programs & services and human resources. She is president of Habitat’s wholly-owned nonprofit lending subsidiary, TCHFH Lending, Inc. Prior to Habitat, Robyn led the Greater Minnesota Housing Fund’s affordable housing programs and lending for rental housing and homeownership for nearly a decade. She currently serves as the president of the Minnesota Home Ownership Center Board of Directors and is co-chair of the Minnesota CDFI Coalition. She earned a Master in Public Policy (MPP) from the University of Minnesota’s Humphrey Institute of Public Affairs and a BA from Lewis & Clark College in Portland, Oregon and is a licensed mortgage broker and realtor.

Director, Equity and Inclusion – Shoreé Ingram joined Twin Cities Habitat in November 2020. Prior to Habitat, Shoreé served the Hennepin County community as District Court’s first-ever Diversity and Outreach Specialist. She began her career with the courts in 2013 in Education and Organization Development and has led community outreach and education initiatives to advance inclusion and ensure access to justice. She uses her strengths as a positive, passionate, and people-centered thinker to lead internal training and development for leaders and employees on topics of diversity, inclusion and providing excellent service.

FINANCE

Chief Financial Officer - Joe Khawaja comes to TCHFH with vast financial experience previously serving as the Director of Finance, Strategy, Operations Support for the Federal Reserve Bank of Minneapolis. Joe oversees the strategic finances, including the Impact 2020 plan. Joe earned a Master of Business Administration in Finance from Capella University, Executive Certificates in Leadership & Management and Leading Teams & Organizations from University of Notre Dame, a Bachelor of Science in Accounting from City University of New York, and a Bachelor of Business Administration in Commerce from University of Punjab.

Controller - Ryan Robinson joined TCHFH as the controller in 2016. Ryan has worked with nonprofit organizations for over a decade and is excited about making an impact with the community through his role with Habitat. He previously worked for two large CPA firms for over 10 years exclusively on clients in the nonprofit, higher education, and government sectors. His experience includes overseeing the accounting and financial functions at TCHFH, as well as performing financial audits, grant compliance audits and other financial engagements throughout the Twin Cities and Southern California. Ryan earned his undergraduate degree in Accounting from Azusa Pacific University and is a licensed CPA in Minnesota.

PROGRAMS AND SERVICES

Chief Programs and Services Officer – Shereese Turner joined TCHFH in 2018 and leads the Programs and Services division which includes Homeownership, Coaching, Neighborhood Revitalization, Foreclosure Prevention and A Brush with Kindness. Before joining Habitat, Shereese was Director of Programs and Operations at Twin Cities R!SE (TCR) where she worked at TCR for 11 years. Shereese is an inspiring and passionate leader who builds bridges with community partners and advocates for underrepresented communities. Shereese is a co-founder of Stop the Violence Bring the Unity Movement and serves on the board at Bridging Inc. She has a degree in Public/Non-Profit Management from Metropolitan State University and a Master’s in Health & Human Services from St. Mary’s University.

1/11/2021 218

Qualifications of TCHFH Team Members

MORTGAGE LENDING

Director, Lending – Betsy Mills joined Habitat in 2013. She currently oversees all mortgage operations for TCHFH Lending, Inc. including mortgage origination and long-term servicing of the mortgage portfolio. Before joining Habitat, Betsy worked in a local community bank as a personal banker and mortgage lender. She has degrees in Accounting and Business Administration from Concordia College in Moorhead, MN.

RESOURCE DEVELOPMENT

Chief Development Officer – Cathy Lawrence joined the TCHFH team in 2015. Cathy brings a wealth of experience in many fields including philanthropy, nonprofit leadership, advocacy, and low-income housing. She is a graduate of the University of Minnesota-Duluth and earned her law degree from William Mitchell Collage of Law. Cathy has experience serving on non-profit boards of directors and on the advisory council to the University of Minnesota Athletic Department. In her past, Cathy worked as Director of Development at Twin Cities RISE!. At TCHFH, Cathy oversees the Resource Development and Community Relations Division which includes marketing, communications, as well as donor and volunteer development.

Senior Director, Resource Development - Kate Loe leads a team responsible for volunteer programs and fundraising – corporate, faith-based, youth & school and in-kind partnerships, family and foundation grants and a portion of individual giving. Before joining the TCHFH team in 2008, she spent more than eight years managing national client accounts. Kate holds a BA in communications from Gustavus Adolphus College.

Senior Director, Marketing and Communications – Brian Juntti joined TCHFH in 2004 and leads the team responsible for marketing, communications and event activities. Before Habitat, Brian was a producer for a - Minneapolis-based film and video production company. He is a member of the American Marketing Association and the Minnesota Interactive Marketing Association, and the steering committee for the Minneapolis Regional Chamber of Commerce’s Leadership Twin Cities program. Brian has a BA in Theater Arts and Film & Media Studies from Hamline University, and a MBA from University of St. Thomas.

HOMEBUILDING

Chief Real Estate Officer - Chad Bouley joined TCHFH in 2003 and has volunteered at the organization since 1996. Chad came to TCHFH with a Bachelor’s Degree in Construction Management and 6 years as a project manager, then General Manager in the structural steel and precast panel industry. Chad oversees budgets and activity for project management, construction and project funding. Chad’s staff are responsible for identifying and acquiring sites, designing, estimating, and bidding the projects, as well as the project management and volunteer scheduling work associated with them. Chad also oversees the more than 50 staff members that carry out TCHFH’s construction functions, including the production and implementation of all construction policies and procedures. Chad is also responsible for project portfolio and long range planning.

Director, Land Development – Chad Dipman’s first experience with Habitat was at the tender age of 18 on a college spring break trip to work with the Homestead, FL, Habitat affiliate shortly after Hurricane Hugo. Apparently, that experience touched a nerve, because after two more trips, a year of AmeriCorps, a few years as a site supervisor, and 15 years in Land Development, Chad continues his tenure at Twin Cities Habitat as the Land Development Director. Chad has a BS in Chemistry from Carleton College and a Master’s in Urban and Regional Planning from the University of Iowa and is a certified Housing Development Finance Professional. Chad lives with his wife and 3 kids on their farm in Kerrick, MN.

Director, Field Operations – Jake Kirchgessner has been working with TCHFH since 2005 with roles as a Site Supervisor, Senior Site Supervisor and Construction Field Manager. Prior to working with TCHFH, Jake worked as a carpenter and in hardscape landscaping. Kirchgessner supervises 20 site staff, 2 warranty employees, the panel plant and 20 AmeriCorps members all tasked with completing the on-site onstruction process while providing a safe and meaningful build experience for home buyers and volunteers.

1/11/2021 219

Qualifications of TCHFH Team Members

Director, ReStore – Pete O’Keefe manages the ReStore operation, Habitat’s social enterprise located in New Brighton and Minneapolis. Building materials and furniture, both new and used, are sold to the general public with all revenues supporting TCHFH’s mission. With a lifetime passion for reuse and recycling solutions, Pete previously managed reverse logistics programs for the University of Minnesota campus buildings, Xcel Energy plants in 8 states and Target Stores nationwide. Pete holds a BA in Retail Merchandising from the University of Minnesota and contributes time and expertise to related programs, including ReUSE Minnesota and the Minnesota Pollution Control Administration. Pete enjoys partnering each year with high school and college business programs via retail-minded capstone projects or one-on- one mentorship.

1/11/2021 220

221 Homes Rehabilitated/Resold to TC Habitat Homebuyers 2015- Present

Homes 0 1-2 3-6 7-12 13-14

Data from TC Habitat and Minnesota Geospatial Commons Cartographer: Sam Dyer 1/15/2021 222 TC Habitat Rehab Data by City (5 years) City Quantity Golden Valley 1 Crystal 3 St Paul 12 Minneapolis 14 Brooklyn Park 13 Newport 2 Woodbury 2 White Bear Lake 4 Maple Grove 2 Columbia Heights 1 Robbinsdale 1 Maplewood 2 Chaska 1 Mounds View 1 Roseville 2 West St. Paul 2 Shakopee 4 Plymouth 1 North St. Paul 2 Blaine 4 Brooklyn Center 6 Prior Lake 3 Savage 2 Apple Valley 1 South St. Paul 2 Lino Lakes 1 Anoka 1 Bloomington 3 Cottage Grove 4 St. Louis Park 1 Eden Prairie 1 Mound 1 Richfield 1 Centerville 1 Ramsey 2 Coon Rapids 1 Oakdale 3 Farmington 1 Vadnais Heights 1 Burnsville 1 Champlin 1

223 address add'l finish rehab acquisition assessed FMV request for work budget and rehab value CDA funding estimate (FMV-AV) 195 Kathleen Dr, WSP update/repair $20,650 $223,650 $166,000 $203,000 $37,000 15442 Drexel Way, AV LL family room $48,150 $313,150 $196,100 $265,000 $68,900 3551 69th St E, IGH update/repair $22,900 $242,900 $203,800 $220,000 $16,200 1921 Walnut St, Hastings update/repair $24,600 $252,600 $207,900 $228,000 $20,100 157 E Butler Ave WSP update/repair $15,450 $231,450 $192,400 $216,000 $23,600 2262 Apache St, MH basement $40,550 $312,550 $265,600 $272,000 $6,400 bathroom 3650 77th St, IGH accessible $34,150 $244,150 $224,400 $210,000 $15,000 updates (roll in shower) 14201 Diamond Path Ct, LL family room $35,500 $298,500 $209,800 $263,000 $53,200 Apple Valley TC Habitat's total funding request from CDA $240,400

224

February 1, 2021

Lori Zierdan Real Estate Specialist Dakota County Community Development Agency 1228 Town Centre Drive Eagan, MN 55123

Dear Ms. Zierdan,

This letter is to document that, as of the date of this funding application, Twin Cities Habitat for Humanity has allocated the following amounts to cover the acquisition and development costs for eight rehabilitation projects in Dakota County:

 $2,118,950 private fundraising to cover value and affordability gaps.

Twin Cities Habitat for Humanity has access to a $25,000,000 line of credit through the Minnesota Housing Finance Agency available to fund the acquisition of all eight properties identified by the CDA in this RFP.

These allocations are based on an anticipated contribution of $1,637,000 from TCHFH Lending Inc. to provide first mortgages to the homebuyers of these projects.

Additional questions may be referred to Betsy Starkson, (612)305-7165 or [email protected].

Thank you,

Joe Khawaja Chief Financial Officer Twin Cities Habitat for Humanity, Inc.

225 Proformas Per Project

195 Kathleen Dr, WSP Sources $241,133 1st Mortgage $173,000 MHFA Development Gap $15,000 MHFA Affordability Gap $15,000 County funding request (assessed vs FMV) $37,000 TCHFH funds $1,133

Uses $241,133 Fair Market Value/ Purchase Price $203,000 Carrying costs for 6 month period $6,000 Rehab Work $20,650 Staff Overhead at 5% of uses $11,483

15442 Drexel Way, AV Sources $335,108 1st Mortgage $235,000 MHFA Development Gap $15,000 MHFA Affordability Gap $15,000 County funding request (assessed vs FMV) $68,900 TCHFH Funds $1,208

Uses $335,108 Fair Market Value- Purchase Price $265,000 Carrying costs for 6 month period $6,000 Rehab Work $48,150 Staff Overhead at 5% of uses $15,958

226 3551 69th St E, IGH Sources $261,345 1st Mortgage $190,000 MHFA Development Gap $15,000 MHFA Affordability Gap $15,000 County funding request (assessed vs FMV) $16,200 TCHFH funds $25,145

Uses $261,345 Fair Market Value/ Purchase Price $220,000 Carrying costs for 6 month period $6,000 Rehab Work $22,900 Staff Overhead at 5% of uses $12,445

1921 Walnut St, Hastings Sources $271,530 1st Mortgage $198,000 MHFA Development Gap $15,000 MHFA Affordability Gap $15,000 County funding request (assessed vs FMV) $20,100 TCHFH Funds $23,430

Uses $271,530 Fair Market Value/ Purchase Price $228,000 Carrying costs for 6 month period $6,000 Rehab Work $24,600 Staff Overhead at 5% of uses $12,930

227 157 E Butler Ave WSP Sources $249,323 1st Mortgage $186,000 MHFA Development Gap $15,000 MHFA Affordability Gap $15,000 County funding request (assessed vs FMV) $23,600 TCHFH Funds $9,723

Uses $249,323 Fair Market Value/ Purchase Price $216,000 Carrying costs for 6 month period $6,000 Rehab Work $15,450 Staff Overhead at 5% of uses $11,873

2262 Apache St, MH Sources $334,478 1st Mortgage $242,000 MHFA Development Gap $15,000 MHFA Affordability Gap $15,000 County funding request (assessed vs FMV) $6,400 TCHFH Funds $56,078

Uses $334,478 Fair Market Value/ Purchase Price $272,000 Carrying costs for 6 month period $6,000 Rehab Work $40,550 Staff Overhead at 5% of uses $15,928

228 3650 77th St, IGH Sources $262,658 1st Mortgage $180,000 MHFA Development Gap $15,000 MHFA Affordability Gap $15,000 County funding request $15,000 TCHFH Funds $37,658

Uses $262,658 Fair Market Value/ Purchase Price $210,000 Carrying costs for 6 month period $6,000 Rehab Work $34,150 Staff Overhead at 5% of uses $12,508

14201 Diamond Path Ct, AV Sources $319,725 1st Mortgage $233,000 MHFA Development Gap $15,000 MHFA Affordability Gap $15,000 County funding request (assessed vs FMV) $53,200 TCHFH Funds $3,525

Uses $319,725 Fair Market Value/ Purchase Price $263,000 Carrying costs for 6 month period $6,000 Rehab Work $35,500 Staff Overhead at 5% of uses $15,225

total TCHFH funds contributing $157,898

total funds requesting from CDA $240,400

229 230 231 232 233 234 235 236 237 238 239 240 Dakota County CDA - Single Family RFP Due 2/5/2021 @ 3pm Developer: Greater Frogtown CDC a wholly owned subsidiary of Community Neighborhood Housing Services, dba NeighborWorks Home Partners

195 Kathleen Dr. 157 Butler St. E. 3551 - 69th St. E. 3650 - 77th St. E. 2262 Apache St. Property Address & Information W. St. Paul W. St. Paul Inver Grove Heights Inver Grove Heights Mendota Heights

Year Built 1951 1952 1965 1971 1957 Bedrooms / Bathrooms 2 / 1 3 / 1 3 / 1 3 / 1 4 / 1 Finish Sq. Ft 918 1,073 980 1,056 1,232 Foundation Sq.Ft 918- crawlspace 858 full basement 980 full basement 1,056 full basement 1,232 full basement Garage 1car-breezeway attached 1 car detached 1 car attached 1 car detached 2 car attached Other 1 level, no basement 1-1/2 story w/ Hardi vaulted: lvrm,kitch,dining handicap features excessive wear & tear DCCDA market value (1/2021) $ 203,000.00 $ 216,000.00 $ 220,000.00 $ 210,000.00 $ 272,000.00 2020Tax Value / Estimated 2022 taxes $166,000 / $2,000 $192,400 / $2,500 $203,800 / $2,600 $224,400 / $2,900 $265,600 / $2,900

USES Acquisition (market value per DCDCA) $ 203,000.00 $ 216,000.00 $ 220,000.00 $ 210,000.00 $ 272,000.00 Acquisition closing $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 Total Acquisition Costs $ 206,000.00 $ 219,000.00 $ 223,000.00 $ 213,000.00 $ 275,000.00 Hard Construction Costs $ 50,000.00 $ 42,000.00 $ 50,000.00 $ 60,000.00 $ 80,000.00 Contngncy (% of hard const.) 10% $ 5,000.00 $ 4,200.00 $ 5,000.00 $ 6,000.00 $ 8,000.00 Total Hard Costs $ 55,000.00 $ 46,200.00 $ 55,000.00 $ 66,000.00 $ 88,000.00 Property Taxes (2022) $ 2,000.00 $ 2,500.00 $ 2,600.00 $ 2,900.00 $ 2,900.00 Insurance $ 2,500.00 $ 2,500.00 $ 2,500.00 $ 2,500.00 $ 2,500.00 Design/Const Mgmt (% of hard) 6% $ 3,300.00 $ 2,772.00 $ 3,300.00 $ 3,960.00 $ 5,280.00 Acq&Const Finance- orig (% of loan) 1% $ 1,522.50 $ 1,620.00 $ 1,650.00 $ 1,575.00 $ 2,040.00 Acq&ConstFinance-interest (12moths) 4.25% $ 6,470.63 $ 6,885.00 $ 7,012.50 $ 6,693.75 $ 8,670.00 Real Estate Fee (% of sale price) 5% $ 10,250.00 $ 11,100.00 $ 11,400.00 $ 11,000.00 $ 13,750.00 ** Marketing, Signage, etc $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 Utilities/Lot Maintenance $ 2,500.00 $ 2,500.00 $ 2,500.00 $ 2,500.00 $ 2,500.00 Appraisal (if bank financed) $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 Seller closing costs $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 Total Soft Costs $ 32,193.13 $ 33,527.00 $ 34,612.50 $ 34,778.75 $ 41,290.00 Developer Fee (% of hard & soft) 10% $ 8,719.31 $ 7,972.70 $ 8,961.25 $ 10,077.88 $ 12,929.00 ** Total Development Costs (TDC) $ 301,165.83 $ 307,688.25 $ 322,690.38 $ 326,707.75 $ 404,290.00 241 Page 1 of 2 Dakota County CDA - Single Family RFP Due 2/5/2021 @ 3pm Developer: Greater Frogtown CDC a wholly owned subsidiary of Community Neighborhood Housing Services, dba NeighborWorks Home Partners

195 Kathleen Dr. 157 Butler St. E. 3551 - 69th St. E. 3650 - 77th St. E. 2262 Apache St. Property Address & Information W. St. Paul W. St. Paul Inver Grove Heights Inver Grove Heights Mendota Heights

Total Development Costs (TDC) $ 301,165.83 $ 307,688.25 $ 322,690.38 $ 326,707.75 $ 404,290.00 Acquisition (market value per DCCDA) $ 203,000.00 $ 216,000.00 $ 220,000.00 $ 210,000.00 $ 272,000.00 Projected Sale Price $ 205,000.00 $ 222,000.00 $ 228,000.00 $ 220,000.00 $ 275,000.00

Dev Gap (TDC - Projected Sale Price) $ 96,165.83 $ 85,688.25 $ 94,690.38 $ 106,707.75 $ 129,290.00

SOURCES Temporary Sources Loan (% of current value) 75% $ 152,250.00 $ 162,000.00 $ 165,000.00 $ 157,500.00 $ 204,000.00 Developer Loan $ 34,080.69 $ 41,227.30 $ 42,938.75 $ 41,722.13 $ 44,621.00 EndClose Payout (DevFee,RealEstateFee) $ 18,969.31 $ 19,072.70 $ 20,361.25 $ 21,077.88 $ 26,679.00 ** DCCDA- Development Gap $ 96,165.83 $ 85,688.25 $ 94,690.38 $ 106,707.75 $ 129,290.00 Total Sources $ 301,465.83 $ 307,988.25 $ 322,990.38 $ 327,007.76 $ 404,590.00 Permenent Sources Sale price $ 205,000.00 $ 222,000.00 $ 228,000.00 $ 220,000.00 $ 245,000.00 DCCDA-Development (value gap) $ 96,165.83 $ 85,688.25 $ 94,690.38 $ 106,707.75 $ 129,290.00 DCCDA-DownPayment (affordability gap) $ - $ - $ - $ - $ 30,000.00 Total Sources $ 301,165.83 $ 307,688.25 $ 322,690.38 $ 326,707.75 $ 404,290.00

DCCDA total Development (value gap) $ 512,542.20 DCCDA total DPA (affordability gap) $ 30,000.00 TOTAL FUNDS from DCCDA $ 542,542.20

242 page 2 of 2 USC LOCAL INITIATIVES SUPPORT CORPORATION

July 23, 2019

Jason Peterson, Executive Director Community Neighborhood Housing Services 533 Dale Street North St. Paul, MN 55103 [email protected]

Program Action Number 41993-0012

Dear Mr. Peterson:

I am pleased to inform you that Local Initiatives Support Corporation ("USC") has approved project financing in the amount of $50,000 (the "Recoverable Grant") to Community Neighborhood Housing Services (the "Organization"), the proceeds of which shall be used for the purposes set forth in Section 1, below. This letter agreement (this "Agreement") must be printed and signed by the Organization and mailed to LISC's New York City headquarters, in accordance with Sections 21 and 22, below.

The Recoverable Grant is made available to Community Neighborhood Housing Services in accordance with the following terms and conditions:

(1) Purpose of the Recoverable Grant. The Recoverable Grant is being provided to continue to support the organization in creating affordable homeownership for low- and moderate-income families in the Frogtown neighborhood in St. Paul. The recoverahle grant is expected to help GFCDC redevelop 4-6 units over the next three years.

Specifically, fund will cover 1) acquisition, 2) bridging subsidy gap funds, and 3) typical predevelopment expenses. (the "Project").

(2) Organization's Principal Contact at LISC. The Organization's principal contact person at USC with respect to the Recoverable Grant shall be James Hargens, Program Assistant for Twin Cities LISC. Unless otherwise indicated in this Agreement, all correspondence concerning said Recoverable Grant should be addressed to him and include the Program Action Number stated above.

(3) Term of the Recoverable Grant. The Recoverable Grant shall be available for disbursement to the Organization commencing on the date that all the standard conditions

243 USC Recoverable Grant PA#4l993-0012 to Community Neighborhood Housing Services Page2of8

contained in Section 6 herein, have been satisfied, beginning July 1, 2019 and continuing through and including June 30, 2021 (the "Recoverable Grant Term").

(4) Costs to be Paid with Recoverable Grant Proceeds. During the Recoverable Grant Term, the Organization hereby agrees to use the Recoverable Grant proceeds only to pay the costs described in the budget attached hereto as Exhibit A, which have been or shall be incurred in support of the Project.

(5) Repayment of Disbursed Recoverable Grant Amounts. The Organization shall repay all disbursed amounts of the Recoverable Grant to LISC in full, on the earlier to occur of (i) the sale of homes supported by this grant or (ii) June 30, 2021 (the "Maturity Date"). The Maturity Date is the date all amounts disbursed under the Recoverable Grant shall be due and payable to LISC by the Organization. However, in the event that LISC is satisfied that the Organization has made best efforts to move the Project forward to development, completion, and/or successful operation (as the case may be), including but not limited to the obtainment and close of all required financing for the Project, and if LISC and the Organization shall have mutually agreed in writing that the development of the Project cannot proceed due to a lack of financing, or a completed Project cannot generate sufficient revenue to repay the Recoverable Grant, or for some other reason beyond the Organization's control the Recoverable Grant cannot be repaid (again, as the case may be), repayment of the portion of the Recoverable Grant that is unable to be repaid shall not be required.

(6) Conditions to Disbursement(s) of the Recoverable Grant. The Recoverable Grant will be disbursed to the Organization, upon fulfillment of the following conditions: (a) receipt by LISC's Grants and Contract Management department in New York City of the signed Agreement, in accordance with Section 21, below (b) receipt by USC's Grants and Contracts Management Department in New York City of a copy of good standing certificate issued in favor of the Organization, dated no more than 12 months prior to the date of this Agreement; (c) a copy of the corporate resolution is required, signed by the Organization's Secretary and issued by the Organization's Board of Directors, authorizing the Project and receipt of the Recoverable Grant in support of the Project; (d) Repayment of the organization's previous two recoverable grants, totally $50,000 (#PA 41117-41 and #PA 41117-45). Both recoverable grants we made to Greater Frogtown Community Development Corporation (GFCDC), which merged with CNHS/NWHP in 2014. (e) Receipt by USC's Financial Analyst in New York City of a completed Recoverable Grant Financial Report (Attachment B) and Twin Cities LISC Program Officer's written approval of the disbursement.

(7) Funds Not Disbursed to the Organization Prior to the Expiration of the Recoverable Grant Term. Any Recoverable Grant funds not disbursed to the Organization by the expiration of the Recoverable Grant Term shall be automatically reprogrammed by LISC, and shall no longer be available for disbursement to the Organization; provided, however,

244 USC Recoverable Grant PA#4I993-0012 to Community Neighborhood Housing Services Page 3 of8

that if the Recoverable Grant Term is extended pursuant to Section 20 of this Agreement, then the funds shall remain available for disbursement until the new Recoverable Grant Term.

(8) Funds Not Disbursed in a Timely Way. Any funds not drawn down in a timely fashion during the Recoverable Grant Term, may be deobligated by LISC in its sole discretion after notice to the Organization. Such deobligation shall be effective as to any Recoverable Grant proceeds not expended by the Organization prior to the date of receipt of such notice.

(9) Return of Recoverable Grant Proceeds to LISC. The Organization will return to LISC any Recoverable Grant funds it has not expended by the expiration of the Recoverable Grant Term, unless such Recoverable Grant Term has been extended pursuant to Section 20 of this Agreement, in which case the Organization will return to LISC any Recoverable Grant funds it has not expended by the expiration of the new Recoverable Grant Term.

(10) No Disbursement if Non-Compliance. LISC shall not make any disbursement of the Recoverable Grant proceeds unless on the proposed date of disbursement the Organization is in full compliance with all the terms and conditions of this Agreement. In addition, LISC shall not make any disbursement of the Recoverable Grant proceeds if it will (i) violate any provision of law, regulation or administrative ruling to which LISC is subject, (ii) subject LISC to any tax, penalty, or fine, or (iii) not further the charitable purposes of LISC.

(11) No Disbursement if Default Exists, or Material Adverse Change Has Occurred. LISC shall not make any disbursement of the Recoverable Grant if, at the time of the proposed disbursement, the Organization, or any subsidiary of the Organization, or any partnership affiliated with the Organization, is in default under the terms of any LISC financing, whether for the Project or provided by LISC for any other project or purpose. In addition, LISC shall not make any disbursement of the Recoverable Grant if there has been a material adverse change in the financial or other condition of the Organization or the Project, including, but not limited to, any adverse change in the Organization key personnel working on the Project (with USC determining, in its reasonable discretion, what constitutes a material adverse change in key personnel).

(12) Restrictions on Use of the Recoverable Grant. Under Sections 501 and 4945 of the Internal Revenue Code (the "Code"), the Recoverable Grant may not be used to carry on propaganda, to attempt to influence legislation, or to participate in, intervene in, or attempt to influence the outcome of, political campaigns or elections. Additionally, under the applicable provisions of the Code, LISC funds may only be used in furtherance of USC's charitable purposes. By countersigning this Agreement and returning it to LISC, the Organization agrees (i) not to use the Recoverable Grant for any purposes prohibited by the preceding two sentences, (ii) to use the Recoverable Grant in furtherance of the Organization's charitable purposes (as set forth in its Articles of Incorporation and

245 USC Recoverable Grant PA#4l993-0012 to Community Neighborhood Housing Services Page 4 of8

Application For Recognition of Exemption submitted to the IRS), and (iii) to promptly reimburse LISC any amounts of the Recoverable Grant not used to further charitable purposes.

(13) Compliance with Anti-Discrimination Rules. In its use of Recoverable Grant funds provided by LISC, and in its development, marketing and operation of the Project, the Organization shall fully comply with all applicable federal, state, local (and any other governmental), anti-discrimination laws, executive orders, rules and regulations.

(14) Tax-Exempt Status. The Organization confirms that it received a letter from the IRS which determined that the Organization is (i) exempt from federal income taxation under Section 501(a) of the Code as an organization described in Section 501(c)(3) of the Code, and (ii) an organization that is not a private foundation under Section 509 (a)(l) of the Code, has not been revoked or modified, and that the Organization has delivered a copy of said letter to LISC. If either determination is revoked or modified, the Organization shall immediately notify LJSC.

(15) Review of Operations. LISC may monitor and conduct an evaluation of activities funded by the Recoverable Grant. Such evaluation may include a visit from LISC personnel to observe the activities funded by the Recoverable Grant, to discuss said activities with the Organization's personnel, and/or to review financial and other records and materials relating to the activities financed or facilitated by the Recoverable Grant. In addition, upon USC's providing of reasonable advance notice, the LOCAL OFFICE Program Officer shall be allowed to attend at least one Board meeting of the Organization a year.

(16) Publicity. The Organization agrees that LISC may include information regarding the Recoverable Grant and the Project in its periodic public reports. The Organization shall also make best efforts to provide LISC with reasonable advance notice of any groundbreaking or ribbon-cutting events for the Project. LISC may refer to the Recoverable Grant in press releases, and asks that until such a press release is issued, the Organization not make any public announcement relating to the Recoverable Grant without first consulting the LISC contact person referred to in Section 2, above. A copy of all issued press releases shall be promptly sent to such contact person.

(17) Indemnification. The Organization agrees to defend, indemnify and hold harmless LISC, its affiliates, subsidiaries, directors, officers, employees, agents and representatives, and any other party acting on behalf of LISC from and against and with respect to any and all claims, demands, suits, causes of action, judgments, obligations, damages, settlements, liabilities, penalties, costs and expenses of any kind or nature, including, without limitation, reasonable attorneys' fees or disbursements, arising out of, or relating to the Organization's performance or breach of this Agreement or negligent or wrongful act or omission ( or alleged act or omission) in connection with this Agreement. The Organization agrees to provide LISC with prompt notice of any event or assertion of

246 USC Recoverable Grant PA#4l993-0012 to Community Neighborhood Housing Services Page 5 of8

which it has knowledge concerning any matter as to which a request for indemnification under this Agreement may be made.

(18) No Right of Assignment or Delegation. The Organization may not assign or otherwise transfer its rights, or delegate any of its obligations, under this Agreement.

(19) LISC's Authorization to Instruct. The Organization authorizes USC, on the Organization's behalf and prior to the expected financing event that will cause the Maturity Date to occur as described in Section 4, above, to instruct any funder expected to provide take-out financing to repay the Recoverable Grant, to pay a portion of such take-out financing directly to USC, as required, to fully repay the Recoverable Grant.

(20) Amendment of Term of Recoverable Grant. USC shall consider, but is not obligated to agree to, requests by the Organization to extend the Maturity Date or make other modifications to the terms of the Recoverable Grant. Amendments to the Recoverable Grant shall be made only after (i) USC's Program Officer has received a written request from the Organization stating the nature of the amendment requested, and (ii) an authorized officer of USC shall have executed a written agreement describing the terms of the amendment.

(21) Signature Required. If this Agreement correctly sets forth the Organization's understanding of the terms and conditions of the Recoverable Grant, please indicate acceptance of and agreement to said terms and conditions by having this Agreement signed and dated by an authorized officer of the Organization in the space provided below. Return one hard copy of the Agreement with original signatures to USC Grants and Contracts Department at its New York Headquarters located at 501 7th Avenue, 7th Floor, New York, NY 10018. USC will then sign/fully execute the Grant and email it to the authorized contact person at your organization.

(22) Agreement Must be Returned. Return one signed copy of this Agreement to USCs Grants and Contracts Management Deportment, within thirty (30) days of the date of this Grant Agreement. If such deadline passes, USC reserves the right to withdraw this Grant Agreement and reprogram the funds.

(23) The following documents MUST be mailed to USC's Grants and Contracts Department along with the countersigned Agreement: One COPY of the corporate resolution and one COPY of the good standing certificate.

[the remainder of this page left intentionally blank]

247 USC Recoverable Grant PA#4l993-0012 to Community Neighborhood Housing Services Page 6 of8

TERMS OF PROJECT INVESTMENT ACCEPTED AND AGREED TO:

Community Neighborhood Housing Services

Date: _7_~_7-_L-t_~ _{ _9 __

LISC OFFICER COUNTER-SIGNA TURE:

Signature: ~~

248 LISC Recoverable Grant PA#41993-0012 to Community Neighborhood Housing Services Page 7 of8

EXHIBIT A Recoverable Grant BUDGET!

Sources: LISC Project Investment $50,000 Total: $50,000 Uses: Acquisition Bridge subsidy gap funds $50,000 Typical predevelopment expenses Total: $50,000

1 Any change in a line item of (1) 10% of the budget, or (2) $1,000 or more (whichever is greater), shall be not be made without USC's prior written approval. USC reserves the right to approve any professionals or consultants hired with funds under this Recoverable Grant.

249 RECOVERABLE GRANT FINANCIAL REPORT

Monthly/Quarterly/Other Report Grantee Name: Community Neighborhood Housing Services Address: 533 N Dale Street Grant PA#: 41993-0012 Prepared By: Jason Peterson New Address? Yes-No No Grant Term: 7 /1/19 - 6/30/21 Tittle: Executive Director Period Reporting On: Jul-19 Phone Number: 651-292-8710 Instructions: Send the completed and signed report to your USC Program Officer. Enter the budget as it appears on the grant letter.

PRIOR PERIOD'S CURRENT PERIOD'S CUMULATIVE TOTAL BUDGET DESCRIPTION TOTAL APPROVED BUDGET CUMULATIVE BUDGET BALANCE EXPENSES EXPENSES EXPENSES

Predevelopment Expenses $50,000 $ - $ 50,000.00 $50,000.00 $0.00 Acquisition

Bridge subsidy gap funds

Typical predevelopment expenses

GRAND TOTAL $ 50,000.00 $ - $ 50,000.00 $50,000.00 $0.00

By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements, and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801- 3812)

Tittle: Date: I ( 3 ò) (f

f1~C,,rv--e 01~~ Rev. April 2019.

250 creating homeowners Main Office: Minneapolis Office: P· 651-292 8710 533 Dale Street North 1930 Glenwooa Avenue F 651-292 0473 building ,,.,m1rnu111ty Saint Paul. MN 55103 Min11eupolis, MN 55405 nwhomepartners.org

Community Neighborhood Housing Services dba N eighborWorks Home Partners Board Resolution

Be it resolved that the Executive Committee of the Board of Directors of Community Neighborhood Housing Services dba NeighborWorks Home Partners accept and support entering into a Recoverable Grant Agreement with the Local Initiatives Support Corporation dated July 23, 2019, as presented.

Be it further resolved that the Executive Committee of the Board of Directors of Community Neighborhood Housing Services dba NeighborWorks Home Partners authorize this project (project action number 41993-0012) and receipt of this recoverable grant to support this project.

In accordance with our by-laws, an electronic vote occurred on July 24, 2019 by the Executive Committee of the Board of Directors in support of this resolution.

áExecu}~irL::ector Date /V~~ Board Secretary Date

251 Office of the Minnesota Secretary of State Certificate of Good Standing

I, Steve Simon, Secretary of State of Minnesota, do certify that: The business entity listed below was filed pursuant to the Minnesota Chapter listed below with the Office of the Secretary of State on the date listed below and that this business entity is registered to do business and is in good standing at the time this certificate is issued.

Name: Community Neighborhood Housing Services Date Filed: 10/30/1980 File Number: T-63 Minnesota Statutes, Chapter: 317A Home Jurisdiction: Minnesota

This certificate has been issued on: 11/29/2018

Steve Simon Secretary of State State of Minnesota

252

April 18, 2018

Jason Peterson NeighborWorks Home Partners 533 Dale Street North St. Paul, MN 55103

RE: FY 2018 ROUND 1 NONBINDING GRANT AWARD LETTER

Dear Jason:

NeighborWorks Home Partners has been recommended to receive the grant funds listed below from Neighborhood Reinvestment Corporation, dba NeighborWorks America. These grants are made with federal funds appropriated through Public Law 115-141, the Consolidated Appropriations Act, 2018.

Unrestricted $ 344,000 Restricted Until First Use $ 0 TOTAL $ 344,000

The Unrestricted funds include the following awards:

FY 2018 Round 1 Expendable $ 152,500 FY 2018 Round 1 Capital (for organizations rated Exemplary) $ 190,000 Community Impact Measurement (CIM) $ 1,500 CLI Action Plan $ 0

The Restricted Until First Use funds includes the following award: FY 2018 Round 1 Capital $ 0 (For organizations rated Strong, Good, Satisfactory, Serious, or Vulnerable)

Please see definitions at the end of this letter.

The FY 2018 Round I Expendable awards are provided to support your organization’s mission. Due to final amount of the FY 2018 appropriation from Congress, NeighborWorks America increased the Round I Expendable awards as compared to the original formula amounts published last fall. This resulted in an additional $5,000 for your organization.

FY 2018 Round 1 Capital awards are provided to support the organization’s real estate development and lending activities. In FY 2018, NeighborWorks America again used a formulaic approach for capital awards using investment information reported by network organizations.

For FY 2019, NeighborWorks America plans to use a similar formula structure to the one used in FY 2018 , which may not include any transition adjustments. Actual award amounts may vary based on a number of factors including the reported production of network organizations and NeighborWorks America’s FY 2019 federal appropriation.

253

More detailed information about the FY 2018 Round I Expendable and Capital grant formulas can be found in the Round 1 Expendable and Capital Grant instructions on the Member Site.

Please note that this is a non-binding announcement of these grant award recommendations which will become binding subject to the following contingencies, at which point funds will be disbursed:

 NeighborWorks America’s receipt of funds from the U.S. Department of Treasury.

 NeighborWorks Home Partners meets NeighborWorks America’s compliance requirements for receiving grants, including but not limited to maintaining organizational health standards, timely submission of audit package, reporting, and compliance with the network charter agreement.

 Organizations with a Vulnerable health rating may be deemed ineligible to receive grants due to not maintaining organizational health standards, unless sufficient progress is made against the items noted in the organization’s health assessment.

 Issuance of an Investment and Grant Funds Letter that creates a binding obligation between NeighborWorks Home Partners and NeighborWorks America.

The specific terms, allowable purposes and grant award amounts will be conveyed in the Investment and Grant Funds Letter. Therefore, it is understood that these grant funds will not be recognized on the organization’s financial statements until the above stipulated conditions have been fulfilled.

Your organization’s Relationship Manager is available to answer any questions you might have about these or other resources available through NeighborWorks America.

Thank you for applying to this grant round, for your continued contributions to the NeighborWorks Network, and the great being work done by NeighborWorks Home Partners.

Sincerely,

John Santner, Vice President, Midwest Region Neighborhood Reinvestment Corporation, dba NeighborWorks America cc: Nancy Tuomie, Board President Kathryn M. Watts, Senior Vice President Field Operations Leon Gray, Relationship Manager

254 DEFINITIONS “Unrestricted Grant Funds” are unrestricted in nature and used to further the NeighborWorks Organization mission, including non-capitalizable expenses. Under FASB ASU 2016-14, these funds are considered net assets without donor restriction. Previously, the NeighborWorks America Investment and Grant Agreement referred to these funds as “Expendable Grant Funds.”

“Restricted Until First Use” refers to grant funds that are restricted until used in accordance with an eligible purpose outlined at Section III. These funds are not to be used for non-capitalizable purposes such as paying the day-to-day expenses of the NeighborWorks Organization. Under FASB ASU 2016-14, these funds are considered net assets with donor restrictions, subject to expenditure for a specified purpose (capitalizable real estate or lending activities).

Source: Investment and Grant Agreement, 2018

255 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND ASSISTANCE AGREEMENT

Recipient: Community Neighborhood CDFI Fund Award Number: 171FA021298 Housing Services DUNS Number: 612534909 Employer Identification Number: 41-1386089 Address: 533 Dale Street North, St Paul,MN 55103-1916

Applicable Program: CDFI-FA Announcement Date (Period of Performance CFDA Number: 21.020 Start Date): Date of Applicable NOFA: 2/27/2017 9/19/2017 By signing this Assistance Agreement and in consideration of the mutual covenants, conditions and agreements hereinafter set forth, the parties hereto, by their respective Authorized Representatives, agree to the following: (i) the award of Assistance hereunder shall be administered pursuant to the General Award Terms and Conditions, attached hereto as Schedule 3 and made a material part hereof; and (ii) the award of Assistance shall be further subject to the provisions, terms, conditions, requirements, certifications and representations set forth in all such additional schedules that are attached hereto and constitute a material part hereof. In witness whereof, the parties hereto do hereby execute and enter into this Assistance Agreement.

Community Development Financial Community Neighborhood Housing Services Institutions Fund By: By: Authorized Representative: Jason Peterson Authorized Representative: Amber Bell Title: Executive Director Title: Program Manager Federal Award Date** Date: 4/2/2018 10:23:33 AM Recipient Information Entity Type: Loan Fund Depository Institution Holding Company: Subsidiary Depository Institution (if Subsidiary Depository Institution applicable): Employer Identification Number (if applicable):

Financial Assistance Matching Funds: Applicable Amount and Form of Initial FA Amount and Form Initial HFFI- Financial Assistance (FA) Payment of HFFI Financial FA Payment Award (including Assistance (HFFI- Persistent Poverty County FA) Award (PPC-FA) Award) Grant $686,500 Loan $0 Equity $0 TOTAL $686,500 $686,500

256 ** The Federal Award Date shall be the date in the CDFI Fund’s signature block above.

257 258 Beth Hyser

1299 Earl Street, Saint Paul, MN 55106 Phone: (651) 771-2004, [email protected]

QUALIFICATIONS

Grant Writing and Fund Development  Research options for funding prospects and develop funder relationships  Create fund raising calendar, create and track proposals, prepare reporting as required by funder  Secure multi-year, annual, and one-time grants from public, private, and corporate funders to sustain $500,000 budget (McKnight Foundation, Local Initiatives Support Corporation, Pew Charitable Trusts, St. Paul Foundation, Federal Home Loan Bank, University of Minnesota)  Design, secure, coordinate city/federal financing programs for housing rehab programs (City of St. Paul, CDBG, HUD, MHFA, STAR)  Create a variety of communications tools such as annual reports, newsletters, handouts, and media messaging to build relationships and encourage community and donor engagement  Coordinate monthly donor renewals and annual appeals to individuals and organizations

Project Management-Community Development  Design, secure, and administer financing and grant programs including outreach, review, disbursement, reporting for housing rehab programs and general operating  Co-coordinate privately funded down/closing cost/rehab fund for Abbott Northwestern Hospital  Work with board and executive committee to review program progress and annual work plans  Oversee design, financing, plan review, bidding, and construction of single family housing rehab and new construction to exceed city building standards  Managed rent-to-own housing program for 10 families which included property management, rental code compliance, city inspections, and support services for residents  Co-sponsor of a two-year comprehensive community planning process in the Hamline-Midway neighborhood of St. Paul engaging community, organizations, businesses, and government  Coordinate exhibitor and recruitment, marketing, and workshops for the annual Greater Midway Home & Garden Show - 450 attendees  Coordinate large mailings to constituents and oversee data entry into online database  Supervise staff, interns, and volunteers to coordinate projects and events

Communication  Extensive customer service experience and public speaking including troubleshooting and referrals  Excellent written skills - grant writing, reports, outreach materials, multi-media messaging  Conduct interviews, internet searches, and synthesize information into various reporting formats  Experience with PC and Mac Microsoft Office, Google Drive, FileMaker, E-Tapestry databases  Mediate conflict with staff, community people, contractors, and customers  Background working with diverse cultural and age groups in nonprofit companies  Attended college in Liberia, West Africa - Cultural Immersion Program

Education/Training

University of St. Thomas, St. Paul, MN - B.A. in Speech Communication, 1988 Cuttington University College - Student Exchange Program, Liberia, West Africa, 1987 Project Development Program, Development Training Institute & Local Initiatives Support Corp., 1999 Neighborhood Leadership Training Program, Amherst H. Wilder Foundation, 2008

259

Professional Experience

Program Coordinator – Catholic Rural Life, St. Paul MN – 1/2011 – present Coordinate outreach and special projects, outreach and coaching to applicants of national grant program, oversee donor renewals and annual appeals, coordinate E-Tapestry online database, assist with event planning, supervise student interns, and utilize Google for Nonprofits.

Administrative Assistant - Flannery Construction, St. Paul, MN 5/10-7/10, 8/10-10/10 (PT Temp.) Coordinate compliance with Certified Payroll Reporting, tracking/filing lien waivers, general office tasks using Microsoft Office, answer phones, filing, process mail.

Researcher - Neighborhood Development Alliance, St. Paul, MN 4/09-11/09 (Consulting Contract) Conducted internet research, interviews, and wrote final research paper on feasibility of converting duplex homes into condos.

Event Coordinator - Greater Midway Home & Garden Show - Sparc, St. Paul, MN Spring 2004-09 Developed vendor database, produced all written and electronic communication, extensive cold calling for vendor recruitment, solicited workshop presenters and volunteers, analyzed feedback from customers and vendors. (Seasonal Consulting Contract)

Education Assistant - Cooperating Community Programs - St. Paul, MN - 2/2004-09 One-to-one tutoring with a student with learning disabilities.

Executive Director - Hamline Midway Area Rehabilitation Corporation, St. Paul, MN 1/1995- 7/2002 Directed activities and staff and volunteers of neighborhood based, community development corporation focused on housing. Raised and managed $500,000 budget and staff of three. Operated multiple grant/loan programs including outreach, application review, and disbursement.

Manager, Home Ownership Program- Project for Pride in Living (PPL), Minneapolis, MN 7/92 - 10/94 Managed rent-to-own housing program for 10 families. Operated home buyer grant program.

Employment Specialist – Project for Pride in Living, Minneapolis, MN 3/1990-7/1992 Provided employment and education planning assistance for low income families.

Community Activities

Chair - Blue & Green Spring Fling Gala Fundraiser - 2014 (raised $46,000); Co-Chair – 2010 Harvest Fest Fundraiser (300 people) - Maternity of Mary/St. Andrew School, St. Paul, MN Coach - Neighborhood Leadership Program, Wilder Foundation - 11/09 – 4/2012 Advisory Committee-Neighborhood Partnerships for Community Research –CURA/U of MN- 2000-13 Dayton’s Bluff Early Childhood Family Education Parent Council - Treasurer – 8/2005 – 7/2007 Steering Committee, Vice President (2003) St. Paul Community GIS Consortium - 2000-2003 Member & Housing Committee Chair - St. Paul Coalition for Community Development -1995-2001 Board Member - Minnesota Housing Partnership - 1995/96 Steering Committee Member - St. Paul Area Coalition for the Homeless - 1 year English Teacher (10th & 11th grades) - Phebe Community Lutheran School - Liberia, West Africa

Beth Hyser Phone: (651) 771-2004 [email protected]

260 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION

Public Hearing To Receive Comments And Adoption Of The 2022 Qualified Allocation Plan For Low Income Housing Tax Credits

Fiscal/FTE Impact: Meeting Date: 3/16/2021 None Department: Community & Economic Development Amount included in current budget Prepared By: Kathy Kugel Budget amendment requested Contact: Lisa Alfson FTE included in current complement Contact Phone: 651-675-4478 New FTE(s) requested Other:

PURPOSE/ACTION REQUESTED  Conduct and close a public hearing to receive comments on the 2022 Qualified Allocation Plan for Low-Income Housing Tax Credits.  Adopt the 2022 Qualified Allocation Plan.

SUMMARY The Dakota County Community Development Agency (CDA) is authorized under Section 42 of the Internal Revenue Code of 1986, as amended (the “Code”) and Minnesota Statutes Sections 462A.221 through 462A.225, to allocate Low Income Housing Tax Credits (the “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.

The CDA is required by the Code to hold a public hearing prior to adopting a QAP. The public hearing was set by the CDA Board of Commissioners at its February 16, 2021 meeting and notice was published in the Dakota County Tribune on February 26, 2021, not less than 10 days in advance, as evidenced by the Affidavit of Publication in Attachment A. The notice and draft QAP were also posted on the Dakota County and CDA websites.

The Tax Reform Act of 1986 created the Housing Tax Credit Program as a means of raising private capital to finance affordable rental housing. The credit is a 10-year annual reduction in the tax liability of investors in affordable housing. The investor, typically a private corporation, makes an initial equity contribution to the development to receive the annual credit. Since 1988, tax credit equity has been used to finance the new construction, preservation and/or substantial rehabilitation of 3,163 units of affordable rental housing in 57 developments in Dakota County (Attachment B).

The Housing Tax Credit Program is administered by Minnesota Housing and local housing finance agencies such as the CDA. 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, as well as 4% Tax Credits allocated on a non-competitive basis to projects financed with tax exempt bonds. The application deadline for the competitive 2022 Housing Tax Credits is tentatively set for July 15, 2021.

The CDA is currently authorized to allocate an estimated $921,106 of 2022 9% Tax Credits. The proposed 2022 QAP with changes redlined is in Attachment C. In addition to the formatting and administrative revisions (including updating dates, credit amounts, and clarifying text), the most substantive revisions to the QAP proposed for 2022 include:

1. Secure longer affordability for 4% Tax Credit projects (Section 4.1.h and 7.0.a & Self Scoring Worksheet, Minimum Threshold Requirements #14). Require 4% Tax Credit applicants to waive the “qualified contract” provision (which permits the owner to terminate the restrictions under the Declaration at the end of the 15-year compliance period in the event the CDA does not present the owner with a “qualified contract” for the acquisition of the project) and to maintain the restrictions for the full 30 years. Currently, 4% Tax Credit projects must maintain restrictions for a minimum of 20 years. In comparison, applicants of the 9% Tax Credits already must agree to waive the “qualified contract” and maintain affordability for 30 years. The main rationale behind this change is that affordable housing resources are scarce and should be used to leverage and secure the full affordability requirements of the program.

261 2. Increase the number of points 4% Tax Credit applicants need to qualify (Section 7.0.a). Applicants for the 4% Tax Credits must demonstrate the project is eligible for not fewer than 25 points to qualify for the 4% Tax Credit. The current minimum is 15 points. The rationale to increase the number of points will require applicants to wait to apply when they are able to qualify for the required points and thus be in a better place to proceed.

3. Self Scoring Worksheet (Schedule 1 of the QAP): a. Selection Criteria:  #11. Permanent Supportive Housing Units. Add a separate point category for 4% Tax Credit applicants to incentivize these applicants to set-aside units for homeless households. Applicants could earn five (5) points to set-aside two Tax Credit units for homeless households. Presently, the scoring may only work for the typical smaller 9% Tax Credit projects and be prohibitive to the larger 4% Tax Credit projects. To receive points, a project must set- aside a minimum of 5% of the total units, which means a typical 50 unit 9% Tax Credit project would set-aside 3 units for homeless households, while a larger 175 unit 4% Tax Credit project would set- aside 9 units for homeless households. A smaller separate requirement may be manageable to these applicants and along with the increased minimum point requirement may incentivize applicants to apply for these points.

 Delete #17. Long Term Affordability, Tax Exempt Bond Projects only. If the requirement discussed above in item 1 is approved, which will require 4% Tax Credit applicants to waive the “qualified contract” provision, this point category will be irrelevant.

RECOMMENDATION Staff recommends adoption of the 2022 Qualified Allocation Plan for the Tax Credits. Approval of this resolution authorizes staff to prepare a Procedural Manual and a Compliance Monitoring Manual that is consistent with the QAP.

EXPLANATION OF FISCAL/FTE IMPACT None.

262 Supporting Documents: Previous Board Action(s): Attachment A: Affidavit of Publication 21-6386; 2/16/2021 Attachment B: Dakota County CDA 9% and 4% Tax Credit Award History Attachment C. 2022 Qualified Allocation Plan with redlined changes

Resolution No. 21-XXXX

Public Hearing To Receive Comments And Adoption Of The 2022 Qualified Allocation Plan For Low Income Housing Tax Credits

WHEREAS, pursuant to Section 42 of the Internal Revenue Code of 1986, as amended (the “Code”), and Minnesota Statutes Sections 462A.221 through 462A.225, the Dakota County Community Development Agency (the “CDA”) is authorized to allocate low income housing tax credits (the “Tax Credits”); and

WHEREAS, in accordance with Section 42 of the Code, on the date hereof, the CDA held a public hearing regarding a Qualified Allocation Plan (the “QAP”) in the form presented to the CDA on the date hereof, which details the basis for allocating Tax Credits among applicants; and

WHEREAS, notice of the public hearing was published in a newspaper of general circulation in Dakota County at least 10 days prior to the date hereof, which constitutes reasonable notice under the Code; and

WHEREAS, the CDA is currently authorized to allocate approximately $921,106 of 2022 Tax Credits; and

WHEREAS, pursuant to Minnesota Statutes Section 462A.222, the CDA is authorized to make allocations in connection with the “first round” of allocations for 2022 Tax Credits by Minnesota Housing, which is expected to be July 15, 2021.

NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That:

1. The QAP is hereby adopted in substantially the form on file with the CDA on the date hereof, and the staff of the CDA are hereby authorized to prepare a Procedural Manual and a Compliance Monitoring Manual consistent with the QAP, to notify prospective applicants of the availability of the QAP and Procedural Manual and to set the deadline for accepting applications for Tax Credits, consistent with Minnesota Housing’s first round deadline.

2. Because the members of the Dakota County Board of Commissioners are the ex-officio members of the Issuer, this approval constitutes approval of the QAP by the applicable elected representative of the CDA for purposes of Section 42 of the Code.

______Executive Director Department Director 263 5B: Attachment A

264 Dakota County 9% and 4% Housing Tax Credit Projects 5B: Attachment B

Tax Tax Credit Credit Total Type Allocation Year Project Name City Owner/Developer Type Units Units 9% 1988 & 1989 Wescott Hills Eagan Wescott V LP New construction 16 1 9% 1990 Parkside Townhomes Burnsville Dakota County CDA New construction 22 25 9% 1990 & 1991 & 2008 Kidder Park Townhomes (fka Park Place) Rosemount Boisclair Corporation New construction/2008 substantial rehab 36 38 9% 1991 & 2011 Andrews Pointe Burnsville Shelter Corporation New construction/2011 rehab 57 61 9% 1991 & 1992 Glenbrook Place Townhomes Apple Valley Dakota County CDA New construction 39 44 9% 1994 (MHFA) Spruce Pointe Townhomes Inver Grove Heights Dakota County CDA New construction 24 49 9% 1994 Lakeville Court Apartments Lakeville Sand Companies New construction 50 56 9% 1995 Oak Ridge Townhomes Eagan Dakota County CDA New construction 42 39 9% 1996 Pleasant Ridge Townhomes Hastings Dakota County CDA New construction 31 39 9% 1997 Cedar Valley Townhomes Lakeville Dakota County CDA New construction 30 37 9% 1998 Chasewood Townhomes Apple Valley Dakota County CDA New construction 27 42 9% 1998 & 1999 Farmington Townhomes Farmington Sherman Associates New construction 16 27 9% 1999 & 2000 Farmington Family Townhomes Farmington Hornig Companies New construction 28 40 9% 1999 & 2001 Country Lane Townhomes Lakeville Dakota County CDA New construction 29 38 9% 2000 Hillside Gables Townhomes Mendota Heights Dakota County CDA New construction 24 43 9% 2001 Hastings Marketplace Townhomes Hastings Dakota County CDA New construction 28 51 9% 2001 & 2002 Guardian Angels Apartments Hastings CommonBond Substantial Rehab/Stabilization (2001 was new 33 33 and 2019 & Townhomes (2001 was Sherman Associates) construction & rehabilitation) 9% 2002 Burnsville HOC Townhomes Burnsville Dakota County CDA New construction 34 53 9% 2002 Kaposia Terrace South St. Paul RE Equities New construction 19 37 9% 2003 Erin Place Townhomes Eagan Dakota County CDA New construction 34 60 9% 2003 Prairie Crossing Townhomes Lakeville Dakota County CDA New construction 40 52 9% 2004 LaFayette Townhomes Inver Grove Heights Dakota County CDA New construction 30 44 9% 2004 Haralson Apartments Apple Valley CHDC New supportive & workforce 36 57 9% 2005 & 2007 West Village Townhomes Hastings Dakota County CDA New construction 21 57 9% 2006 Chowen Bend Townhomes Burnsville Dominium Preservation/Rehabilitation 32 56 9% 2006 & 2008 Carbury Hills Townhomes Rosemount Dakota County CDA New construction 32 53 9% 2007 Cliff Hills Burnsville Shelter Corporation Preservation/Rehabilitation 32 58 9% 2007 & 2008 Twin Ponds Townhomes Farmington Dakota County CDA New construction 25 69 9% 2007 & 2008 Rosemount Greens Rosemount TCHDC Preservation/Rehabilitation 28 55 9% 2008 & 2009 & 2010 Meadowlark Townhomes Lakeville Dakota County CDA New construction 40 45 9% 2009 Chancellor Manor Burnsville CHDC Preservation/Rehabilitation 186 200 9% 2010 Quarry View Townhomes Apple Valley Dakota County CDA New construction 45 58 9% 2011 Twin Ponds (Phase II) Townhomes Farmington Dakota County CDA New construction 26 80 9% 2012 Northwoods Townhomes Eagan Dakota County CDA New construction 47 85 9% 2013 Inver Hills TH/ Riverview Ridge TH IGH & Eagan Dakota County CDA New construction 51 85 9% 2014 & 2015 Lakeshore Townhomes Eagan Dakota County CDA New construction 50 50 9% 2015 Keystone Crossing Townhomes Lakeville Dakota County CDA New construction 36 72 9% 2016 Artspace Hastings Lofts Hastings Artspace New construction 37 74 9% 2017 Lakeville Pointe Lakeville Ron Clark/Connelly Development New construction 49 87 9% 2018 Prestwick Place Townhomes Rosemount Dakota County CDA New construction 40 40 9% 2019 & 2020 Wexford Place Apartments Rosemount Ron Clark/Connelly Development New construction 49 49 9% 2020 Prairie Estates Inver Grove Heights TCHDC Preservation/Rehab 40 40 9% 2020 & 2021 Lexington Flats Eagan MWF New construction 50 50 9% 2021 (partial) Babcock Crossing Inver Grove Heights Ron Clark/Connelly Development New construction 49 49 44 Total 9% 1,690 2,378

Tax Tax Credit Credit Total Type Allocation Year Project Name City Owner/Developer Type Units Units 4% 2001 Rose Apartments (aka Kaposia Apartments) South St. Paul RE Equities Acquisition/Rehab 48 48 4% 2002 Grande Market Place Burnsville Sherman New Construction 52 113 4% 2003 Hearthstone Apartments Apple Valley Stonebridge New Construction 50 228 4% 2003 Blackberry Trail Apartments Inver Grove Heights Michael Development New Construction 88 219 4% 2006 Spruce Place Apartments Farmington CommonBond Acquisition/Rehab 60 60 4% 2008 Waterford Commons Rosemount Stonebridge New Construction 24 108 4% 2015 The Sanctuary at WSP West St. Paul SCA Shelter New Construction 164 164 4% 2016 Legends at Apple Valley Apple Valley Dominium New Construction 163 163 4% 2017 Whitney Grove TH (fka Oaks of AV) Apple Valley CommonBond Acquisition/Rehab 55 56 4% 2018 Winslow (fka DARTS) Senior West St. Paul Real Estate Equities New Construction 172 172 4% 2020 Aster House Eagan Real Estate Equities New Construction 204 204 4% 2021 Legacy Commons at Signal Hills West St. Paul Dominium New Construction 247 247 4% 2021 Hilltop at Signal Hills West St. Paul Dominium New Construction 146 146 13 Total 4% 1,473 1,928

ALL 57 3,163 4,306

F:\HFD\Tax Credit Suballocator\Admin and misc\Dakota 9% and 4% tax credits 3/9/2021 Dakota 9% and 4% tax credits 265 2:05 PM 5B: Attachment C

DAKOTA COUNTY CDA

HOUSING TAX CREDIT

2021 2022 QUALIFIED ALLOCATION PLAN

(QAP)

Dakota County CDA QAP 20212022 266 TABLE CONTENTS

ARTICLE – DEFINITIONS ...... 1 Section 1.0 ...... 1 ARTICLE 2 – PURPOSE; AUTHORITY ...... 2 Section 2.0 ...... 2 Section 2.1 ...... 2 Section 2.2 ...... 2 ARTICLE 3 – GENERAL CONCEPTS ...... 3 Section 3.0 ...... 3 Section 3.1 ...... 3 Section 3.1 ...... 3 Section 3.3 ...... 4 ARTICLE 4 – APPLICATION ROUNDS ...... 4 Section 4.0 ...... 4 Section 4.1 ...... 4 Section 4.2 ...... 8 Section 4.3 ...... 8 ARTICLE 5 – APPLIATION PROCESS ...... 8 Section 5.0 ...... 8 Section 5.1 ...... 10 Section 5.3 ...... 11 Section 5.4 ...... 12 ARTICLE 6 – ADDITIONAL ADMINISTRATIVE PROCEDURES ...... 12 Section 6.1 ...... 12 Section 6.2 ...... 12 Section 6.3 ...... 12 Section 6.4 ...... 12 Section 6.5 ...... 12 Section 6.6 ...... 12 Section 6.7 ...... 12 ARTICLE 7 – CREDITS FOR BUILDINGS FINANCED BY TAX-EXEMPT BONDS...... 13 Section 7.0 ...... 13 ARTICLE 8 –PROJECT SELECTION ...... 1514 Section 8.0 ...... 1514 Section 8.1 ...... 15 Section 8.2 ...... 15

i Dakota County CDA QAP 20212022 267 ARTICLE 9 - MONITORING COMPLIANCE WITH LOW-INCOME HOUSING CREDIT REQUIRERMENTS ...... 15 Section 9.0 ...... 15 Section 9.1 ...... 15 Section 9.2 ...... 17 Section 9.3 ...... 20 Section 9.4 ...... 20 Section 9.5 ...... 21 Section 9.6 ...... 21 Section 9.7 ...... 2221 Section 9.8 ...... 22 ARTICLE 10 – AMENDMENTS TO PLAN ...... 22 SCHEDULE 1 ...... 1

ii Dakota County CDA QAP 20212022 268

DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY LOW-INCOME HOUSING TAX CREDIT QUALIFIED ALLOCATION PLAN FOR 20212022

ARTICLE 1 DEFINITIONS

Section 1.0. The following terms shall have the meanings assigned below for purposes of this Plan and the Procedural Manual.

a. Act: Minnesota Statutes, Sections 462A.221 through 462A.225, as amended.

b. Agency: The Dakota County Community Development Agency.

c. Code: The Internal Revenue Code of 1986, as amended.

d. Declaration: A Declaration of Land Use Restrictive Covenants in a form acceptable to the Agency, imposing restrictions required by Section 42 of the Code on a particular project receiving Tax Credits.

e. Federally Assisted Building: As defined by Section 42, any building which is substantially assisted, financed, or operated under section 8 of the United States Housing Act of 1937, Section 221(d)(3), 221(d)(4), or 236 of the National Housing Act, Section 515 of the Housing Act of 1949, or any other housing program administered by the Department of Housing and Urban Development (“HUD”) or by the Department of Agriculture Rural Development (“RD”).

f. Market Study: In accordance with Section 42(m)(1)(A)(iii) of the Code, a comprehensive market study of the housing needs of low-income individuals in the area to be served by the project, conducted before the Tax Credit allocation is made, and at the developer’s expense by a disinterested party approved by the Agency.

g. MHFA: Minnesota Housing Finance Agency.

h. Plan: This Qualified Allocation Plan adopted by the Agency pursuant to Section 42(m)(B) of the Code in connection with the allocation of 2021 2022 Tax Credits.

i. Section 42: Section 42 of the Code, as amended, relating to Tax Credits.

j. Single Room Occupancy: A unit having one bedroom or less with rents affordable at 30 percent of median income.

k. Substantial Rehabilitation: Rehabilitation with a minimum cost that:

1 269 1. Equals or exceeds $5,000 per unit, as defined in Minn. Stat. Section 462A.221, Subdivision 5; and 2. Equals or exceed the greater of: (a) An average qualified basis amount per low income unit for a building which meets the inflation adjusted amount published by the IRS annually in accordance with Section 42(e)(3)(D) of the Code; or (b) An amount that is not less than 20 percent of the adjusted basis of the building, as determined pursuant to Section 42(e)(3) of the Code.

l. Tax Credit Agencies: Any entity authorized by the State of Minnesota and Section 42 to allocate Tax Credits in Minnesota.

m. Tax Credits: Low income housing tax credits, within the meaning of Section 42 of the Code.

ARTICLE 2 PURPOSE; AUTHORITY

Section 2.0 Section 42(m) of the Code, requires Tax Credit Agencies to develop and adopt a qualified allocation plan in connection with the allocation of Tax Credits. This Plan for 2021 2022 sets forth selection criteria that are appropriate to local conditions, priorities and procedures to be used by the Agency in the allocation of Tax Credits to projects and provides procedures the Agency will follow with respect to monitoring noncompliance with the provisions of Section 42 of the Code and in notifying the Internal Revenue Service of such noncompliance.

Section 2.1 The Act provides that the amount of Tax Credits available in Minnesota shall be allocated among MHFA and certain cities and counties or their designees, including the Agency as designee for Dakota County. The Agency anticipates that it will be authorized to allocate approximately $1,071,077921,106 of 2021 2022 Tax Credits pursuant to this Plan.1

Section 2.2 This Plan was prepared in accordance with the procedures set forth in Section 42(m) of the Code, and is to be construed and governed under Section 42 of the Code, including applicable Treasury Regulations, and the Act. All applicable restrictions and requirements set forth in Section 42 of the Code and the applicable Treasury Regulations are hereby incorporated by reference as if fully set forth herein and to the extent of any inconsistency between this Plan and Section 42 and applicable regulations, the provisions of Section 42 and applicable regulations will govern.

1 The estimated 2021 2022 Tax Credit amount uses the IRS 2020 population update released on March 2, 2020 was provided by MHFA on February 25, 2021and does not includes the 12.5% boost that was approved in the 2018 Spending Bill that . The 12.5% boost will be was in effect for the 2018, 2019, 2020 and 2021 allocations. Barring an extension, the Tax Credit annual allocation will revert to the previous levels (adjusted for inflation) in 2022. 2 Dakota County CDA QAP 20212022 270 ARTICLE 3 GENERAL CONCEPTS

Section 3.0. This Plan sets forth selection criteria which reflects the housing policies of the Agency, which will be used to determine the priorities for the allocation of Tax Credits within Dakota County. This Plan gives preferences as required by Section 42 in allocating Tax Credits among selected projects to:

a. projects serving the lowest income tenants, b. projects obligated to serve qualified tenants for the longest periods, and c. projects which are located in a qualified census tract (as defined in Section 42(d)(5)(C) of the Code) and contribute to a concerted community revitalization plan.

As part of the evaluation by or on behalf of the Agency of applications for Tax Credits, the applicant must demonstrate, to the satisfaction of the Agency, that the proposed project is marketable and financially feasible.

In addition, this Plan provides a procedure that the Agency (or an agent or other private contractor of the Agency) will follow in monitoring for noncompliance with the provisions of the Code, including but not limited to monitoring for noncompliance with habitability standards through regular site visits, and in notifying the Internal Revenue Service of such noncompliance of which the Agency becomes aware of in accordance with Section 42, Treasury Regulations §1.42-5 and any other applicable regulations.

Section 3.1. The following factors required under Section 42(m)(1)(C) of the Code are incorporated into the selection criteria to allocate Tax Credits to projects:

a. project location, b. housing needs characteristics, c. project characteristics, including whether the project includes the use of existing housing as part of a community revitalization plan, d. sponsor characteristics, e. tenant populations with special housing needs, f. whether tenant selection will involve special consideration for persons on public housing waiting lists, g. tenant populations of individuals with children, h. projects intended for eventual tenant ownership, i. the energy efficiency of the project, and j. the historic nature of the project.

Section 3.2. This Plan provides for the financial feasibility review of each project and its viability as a qualified low-income project throughout the 10-year credit period as of the application date, allocation date, and placed-in-service date, all as required under Section 42(m)(2) of the Code.

3 Dakota County CDA QAP 20212022 271 Such review is solely for the purpose of allocating Tax Credits and may not be relied upon by an applicant or investor for any other purpose.

As authorized by, the Housing and Economic Recovery Act of 2008, the Agency may increase or “boost” the eligible basis of a particular project for purposes of the allocation of Tax Credit by up to 30% (“Basis Boost”) for designated buildings that are located outside of an established Qualified Census Tract (QCT) or Difficult Development Area (DDA). The Agency will review the financial feasibility of the project and the request for additional Basis Boost in accordance with this Plan.

(This Basis Boost does not apply to buildings which receive automatic Tax Credits because they are financed with tax-exempt bonds.) This Plan establishes standards for the Agency to determine which buildings will be designated for such Basis Boost.

Pursuant to the 2015 Protecting Americans from Tax Hikes Act, Congress made permanent the provisions of Code Section 42(b)(2) which provides 9 percent tax credit rate percentage to all non-federally subsidized new buildings which are placed in service on or after January 1, 2015 (the “9% Tax Credit”).

Section 3.3. This Plan also applies to projects that are tax-exempt bond financed as set forth in Section 42(m)(1)(D) of the Code (the “4% Tax Credit”).

ARTICLE 4 APPLICATION ROUNDS

Section 4.0. The Agency will accept applications on the deadline set by MHFA for the first application competition round. The application deadline for 2021 2022 Tax Credits is tentatively scheduled for July 16, 2020July 15, 2021, however applicants should confirm the actual deadline prior to submission of an application. All applicants applying for the 9% Tax Credit must meet the minimum threshold requirements set forth in Sections 4.1 and 4.2.

Section 4.1 A project for which 9% Tax Credits are being sought must satisfy the following minimum requirements:

a. Under the Act and Minnesota Statutes, Sections 462A.222, Subd 3(d) and 383D.41, Subd. 11, all applicants must meet one of the following threshold types:

4 Dakota County CDA QAP 20212022 272

1. New construction or Substantial Rehabilitation of projects in which, for the term of the extended use period (term of the Declaration of Land Use Restrictive Covenants (the “Declaration”)), at least 75% of the total tax credit units must be 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 located 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 persons:

(a) with a serious and persistent mental illness as defined in Minnesota Statutes Section 245.462, Subd. 20(c);

(b) with a developmental disability as defined in the United States Code, title 42, Section 6001 paragraph (8);

(c) 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;

(d) with a brain injury as defined in Minnesota Statutes Section 256B.093, Subd. 4(a); or

(e) 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 (1) to prevent the conversion of the project to market rate use project or (2) to remedy physical deterioration of the project which would result in loss of existing federal subsidies;

Dakota County CDA QAP 20212022 273 6. Projects financed by Rural Development, which meet state-wide distribution goals;

7. Up to two projects of the following type: new construction or Substantial Rehabilitation multifamily housing projects that are not restricted to persons who are 55 years old or older and that are located within one of the following areas at the time a reservation for Tax Credits is made:

(a) an area within one-half mile of a completed or planned light rail transitway, bus rapid transitway, or commuter rail station;

(b) an area within one-fourth mile from any stop along a high- frequency local bus line;

(d) an area within one-half mile from a park and ride lot; or

(e) an area within one-fourth mile of a high-service public transportation fixed route stop.

To qualify under this threshold requirement, prior to submitting an application, the applicant must receive written confirmation from the Agency that the project meets the applicable requirements.

For purposes of this threshold requirement, the following terms have the following meanings:

(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.

6 Dakota County CDA QAP 20212022 274 b. Each project must satisfy the following additional requirements to the Agency’s satisfaction:

1. The Agency’s underwriting standards;

2. Preliminary financing commitments must be in place;

3. The owner/sponsor must have substantial experience and track record in developing successful Tax Credit projects, in the judgement of the Agency. Such experience may typically be demonstrated by the owner/sponsor having developed at least five (5) successful tax credit projects, the Agency may also consider other factors including a smaller number of recent tax credit projects;

4. The project must comply with applicable building, land use and zoning ordinances;

5. The project must propose a number of units and otherwise be consistent with a Market Study; and

6. The costs of intermediaries must not be excessive for a project of its nature and in its location. c. Applicants must agree to utilize public housing waiting lists in Dakota County in marketing units to the public. d. 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. e. The applicant must demonstrate by information in the application that each building in the project is a qualified low-income building under Section 42(c)(2) of the Code. f. The applicant must agree to enter into a Declaration in form and substance acceptable to the Agency and legal counsel appointed by the Agency. Declarations are enforceable in state court by Housing Credit Agencies and all income-eligible persons and must be recorded in the County in which the project is located. g. The applicant must agree to resident screening criteria as provided in the Declaration.

7 Dakota County CDA QAP 20212022 275 h. The applicant (i) for a project applying for 9% and 4% Tax Credits, must agree to waive the right to request a qualified contract for a minimum of 30 years as provided in the provisions of Sections 42(h)(6)(E)(i)(II) and 42(h)(6)(F) which permit the owner to terminate the extended use period, described in Section 42(h)(6)(D) of the Code at the end of the initial 15 year compliance period. All projects will be subject to a Declaration with a term of at least 30 years., and (ii) for a project applying for 4% Tax Credit, must agree not to seek to terminate the extended use period as otherwise permitted under Sections 42(h)(6)(E)(i)(II) and 42(h)(6)(F) earlier than the later of: (a) 5 years after the close of the initial 15 year compliance period, or (b) if applicant claimed points on the Self-Scoring Worksheet for a longer extended use period, such longer period.

i. 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.

j. 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 unit. Projects will be required to maintain the smoke-free policy for the term of the Declaration.

Section 4.2 All new construction and substantial rehabilitation must meet the basic design requirements set forth in Exhibit C of the Procedural Manual, which include certain energy efficiency standards. Units that are designed to meet the threshold requirements of Section 4.1.a.4. above must comply with the appropriate local, state or federal requirements or building code; e.g. to be considered a handicapped unit, the unit must be designed to meet the standards in the Minnesota State Building Code, Chapter 1341, and be certified as complying by a registered architect.

Section 4.3 The Agency will require that the threshold type under which the applicant applies be included as a requirement in the Declaration.

Section 4.4 Under State law, Tax Credits not committed or allocated by the Agency as of the last day of the first round in each year will be returned to the MHFA.

ARTICLE 5 APPLICATION PROCESS

Section 5.0. The application process for awarding the Tax Credits to projects located in Dakota County consists of the following steps:

a. Each applicant shall notify the Agency of its intent to apply.

8 Dakota County CDA QAP 20212022 276 b. Each applicant shall complete, sign, date and submit to the Agency no later than the application due date an original application and related documents on forms required by the Agency, including all required fees, deposits and exhibits, all as set forth in the Procedural Manual. c. The Agency shall review and evaluate the application to:

1. assure that the application is complete.

2. assure that minimum threshold requirements to qualify for Tax Credits have been satisfied.

3. assign points to the project according to the selection priority section of the Scoring Worksheet attached to this Plan as Schedule 1.

4. determine the minimum amount of Tax Credits necessary to make the project financially feasible and viable pursuant to Code Section 42(m)(2)(B). d. Applicants with initial scores sufficient to receive an allocation of Tax Credits will be required to submit a Market Study, as required under Section 42(m)(1)(A) of the Code. e. Legal counsel appointed by the Agency shall also review the application. f. The Agency shall present the project to the Mayor and the staff of the city in which the project is located for review and comment prior to staff recommendation to the Agency. The Agency will consider comments made by the Mayor and/or city staff. g. The Agency shall make a determination whether to approve or deny a commitment of Tax Credits to the project based upon the findings and selection priority criteria and the requirements of this Plan and the Procedural Manual, provided, however that the Agency reserves the right (but shall not be obligated) to grant priority over higher ranking projects to projects that (i) have previously received Tax Credits and have an annual tax credit shortfall of the total qualified annual Tax Credit amount and (ii) demonstrate readiness to proceed by having city approvals and all funding commitments in place (other than the Tax Credits the applicant is presently requesting). The Agency shall provide a written explanation, available to the general public, for any allocation of Tax Credits which is not made in accordance with the priorities and selection criteria set forth in this Plan.

9 Dakota County CDA QAP 20212022 277 h. The applicant shall be required to pay the application, commitment and allocation fees in the amounts and at the times described in the Procedural Manual in effect at the time of application, commitment or allocation, respectively.

I. The applicant shall certify that the project has been placed in service.

j. The Agency shall reevaluate the amount of Tax Credit for the project based on final information provided by the applicant and the final costs at the time the building is placed in service pursuant to Section 42(m)(2)(B) of the Code.

k. Legal counsel appointed by the Agency shall conduct a final review of the application.

l. The Agency issues IRS Form 8609, Low Income Housing Credit Allocation and Certification.

m. Evaluations of the amount of Tax Credit for a project may be completed by a fiscal consultant engaged to act on behalf of the Agency.

n. Applicants with initial scores sufficient to receive an allocation of Tax Credits and which have an identity of interest will be required to provide an as-is appraisal acceptable to the CDA to substantiate the acquisition price reflected in the application.

Section 5.1. The Agency will evaluate project proposals to determine the amount of Tax Credits to be allocated pursuant to Section 42(m)(2)(B) of the Code. In determining the amount of Tax Credits to be allocated, the Agency will consider: the Market Study, the sources and uses of funds and the total financing planned for the project, proceeds or receipts expected to be generated by reason of tax benefits; the percentage of the Tax Credits used for project costs other than costs of intermediaries, and the reasonableness of the developmental and operational costs of the project.

The Agency will also evaluate project proposals to determine whether the Basis Boost is needed for a project to be financially feasible. In making such determination, the Agency will consider whether: (i) the project meets the housing priorities identified by the Agency, as evidenced by a 9% Tax Credit score; and (ii) any funding gaps remain for such projects.

In any event, the Agency will not allocate more Tax Credits to a project, whether or not it is designated for a Basis Boost, than the amount necessary for the financial feasibility of the project and its viability as a qualified low-income housing tax credit project throughout the 10- year credit period.

The Agency’s evaluation of projects and determination of the amount of Tax Credits necessary for the feasibility of the project as provided above shall not be relied upon by any developer or

10 Dakota County CDA QAP 20212022 278 investor or used in connection with any offering of interests in the entity owning the project, and shall not be construed as a representation or warranty as to the feasibility or viability of the project. There will be three (3) such evaluations prior to delivery by the Agency of executed IRS 8609 Form(s) for the project, which are as follows:

a. At the time of the initial application for a commitment of Tax Credits;

b. At the time of any carryover allocation of Tax Credits; and

c. At the time of the issuance of Form 8609, following the time the building is placed in service.

Prior to each evaluation, the applicant will be required to submit the most recent information about the project and fees as required by the Procedural Manual. Any federal, state or local subsidies anticipated must be documented to the satisfaction of the Agency. Misrepresentations of information will result in failure to issue IRS Form 8609, debarment from participation in the Low Income Housing Tax Credit Program, and possible criminal penalties. At each evaluation, the Agency may reduce the amount of Tax Credits to be allocated to the project or may revoke any Commitment to allocate Tax Credits to the project if it determines that the financial feasibility or viability of the project does not justify the original Tax Credits applied for or committed Tax Credit amount or that the criteria and requirements of this Plan have not been satisfied.

Section 5.3. Selected applicants failing to place a project in service in the year in which a commitment is made may be awarded a carryover allocation of Tax Credits if the Section 42 requirements and the requirements set forth in the Procedural Manual are met, including the Agency’s review and approval of the following documentation:

a. A written attorney’s opinion letter or title policy verifying that the developer is the owner, for tax purposes, or has continued site control of the land and depreciable real property that is be expected to be part of the project; and

b. Either (i) a written certification from a certified public accountant verifying that the owner has incurred costs in an amount greater than ten percent (10%) of the reasonably expected basis of the project determined as of the close of the second calendar year following the year in which the commitment was made, or (ii) evidence acceptable to the Agency that the owner expects to incur such costs by the date which is nine (9) months after the later of the date that the allocation is made or the close of the calendar year in which the allocation is made. The certification must include a statement by the certified public accountant that they are not affiliated with the developer and/or owner of the project.

If the final carryover basis and expenditure information is not available at the time the carryover application is due, the carryover application must include a written estimate of this information prepared by the owner. Final certified public accountant certifications of this information must

11 Dakota County CDA QAP 20212022 279 be submitted to the Agency prior to the deadlines established under Section 42 and by no later than the submission deadline identified in this Plan and in the Procedural Manual.

Section 5.4. The Agency reserves the right to not allocate any 2021 2022 Tax Credits.

ARTICLE 6 ADDITIONAL ADMINISTRATIVE PROCEDURES

Section 6.1 No application will be considered for an existing project that contains units that are subsidized by state or federal resources except for (a) troubled projects, as defined by the Agency, the occupancies and/or net revenues of which need to be stabilized, or (b) projects for which the Agency is provided evidence that such project would convert to market rate units if Tax Credits are not awarded.

Section 6.2 As described above, the Agency may elect to give priority in the award of Tax Credits to a project that previously received an award of Tax Credits and has an annual tax credit shortfall of the total qualified annual Tax Credit amount, and that demonstrate readiness to proceed by having city approvals and all funding commitments in place (other than the Tax Credits the applicant is presently requesting).

Section 6.3 No project may be divided into two or more projects during a single application round to receive Tax Credits. Multiple applications, determined by the Agency to be one project, will be returned to the applicant and all fees forfeited. The Agency will consider such factors as ownership entities, affiliated partnerships, sponsor relationships, and the location of projects, if a contiguous site, to determine if multiple applications exists.

Section 6.4 The Agency may elect to not award a partial allocation of Tax Credits to a higher-ranking application but to award the Tax Credits to the next ranking application that can use the balance of the Tax Credits.

Section 6.5 The Agency has no jurisdiction to interpret or administer Section 42 of the Code, except in those instances where it has been delegated under the Code.

Section 6.6 The Agency may consult with MHFA, local communities, PHAs, HRAs, RD and HUD to determine the marketability of projects. The Agency may decline to award Tax Credits to a project if, in the Agency’s discretion, the award of Tax Credits could be materially detrimental to an existing rental property. If necessary, the Agency may require an additional, updated Market Study and will evaluate it using the data from other sources, including Tax Credit project saturation in a community.

Section 6.7 The Agency reserves the right to adjust fees due to changing circumstances in order to cover its costs associated with producing and delivering its Tax Credit Program.

12 Dakota County CDA QAP 20212022 280 ARTICLE 7 CREDITS FOR BUILDINGS FINANCED BY TAX-EXEMPT BONDS

Section 7.0. Section 42 of the Code provides a separate set of procedures for awarding 4% Tax Credits for projects financed with the proceeds of tax-exempt bonds that receive an allocation of private activity volume cap under Section 146 of the Code. Although such Tax Credits are not counted against the tax credit ceiling cap for the State of Minnesota, developers should be aware that:

a. Section 42(m)(1)(D) of the Code provides, for a project to receive an allocation of 4% Tax Credits, the applicable allocating agency must determine that the project satisfies the requirements for an allocation of 4% Tax Credits under its qualified allocation plan. This Plan applies to all tax exempt bond-financed projects located within Dakota County, other than projects financed with bonds issued by MHFA.

Note: Bond volume cap will not be issued in an amount greater than is financially needed or reasonable for a project to be successful.

An initial determination of whether a project complies with the requirements in this Section 7.0.a will be made by the Agency, and the Agency will issue a letter pursuant to Section 42(m)(1)(D) of the Code, confirming such determination, prior to the issuance of the tax exempt bonds.

The threshold requirements in Section 4.1.a of this Plan do not apply to projects financed with tax-exempt bonds using the 4% Tax Credits. Other threshold requirements that do apply to projects financed with tax-exempt bonds, include, without limitation, the requirement in Section 4.1.h that projects financed with tax-exempt bonds must agree to not seek to terminate the extended use period as otherwise permitted underwaive the provisions of Section 42(h)(6)(E)(i)(II) and 42(h)(6)(F) which permit the owner to terminate the extended use period, described in Section 42(h)(6)(D) of the Code at the end of the initial 15 year compliance period. All projects will be subject to a Declaration with a term of at least 30 years. any earlier than the later of: (i) 5 years after the close of the initial 15 year compliance period, or (ii) if the applicant claimed points on the Self- Scoring Worksheet for a longer extended use period, such longer period.

In addition, to meeting the threshold requirements set forth in Article 4, the owner must also demonstrate that the project is eligible for not fewer than 1525 points to qualify for the 4% Tax Credits under this Plan.

Important: To begin the above application process, the developer must submit to the Agency all documents required for an application of Tax Credits as established by this Plan and the Procedural Manual and any additional information requested

13 Dakota County CDA QAP 20212022 281 by the Agency. The developer must also submit to the Agency the required application fees identified in this Plan and the Procedural Manual. b. Section 42(m)(2)(D) of the Code provides that in order for a tax-exempt bond financed project to receive an allocation of 4% Tax Credits, the issuer of the bonds must make a determination that the Tax Credit amount does not exceed the amount that the issuer determines is necessary for the financial feasibility of the project and its viability as a qualified housing project throughout the 10-year credit period. The determination by the issuer shall be made in a manner consistent with this Plan and the Procedural Manual. Section 42 requires that the issuer of bonds must consider the following in making such determination:

1. the sources and uses of funds and the total financing planned for the project;

2. any proceeds or receipts expected to be generated by reason of tax benefits;

3. the percentage of the Tax Credit amount used for project costs other than the cost of intermediaries;

4. the reasonableness of the developmental and operational costs of the project; and

5. a comprehensive Market Study of the housing needs of low-income individuals in the area to be served by the project, conducted before the Tax Credit allocation is made, and at the developer’s expense by a disinterested party approved by the Agency.

This determination must be made prior to the issuance of the tax exempt bonds. To the extent the Agency is also the bond issuer, it will issue the letter required by Section 42(m)(2)(D) of the Code. c. The owner must enter into a Declaration. d. Subsequent to the project being placed in service, the owner must submit to the Agency an application and appropriate fees for Form 8609 meeting the requirements of this Plan and the Procedural Manual. The owner must also submit to the Agency any other related fees identified in this Plan and the Procedural Manual.

14 Dakota County CDA QAP 20212022 282 ARTICLE 8 PROJECT SELECTION

Section 8.0 Selection Priorities: The Agency’s selection priorities are set forth in the Scoring Worksheet attached hereto as Schedule 1, provided however, that the Agency reserves the right (but shall not be obligated) to grant priority over higher ranking projects to projects that: (i) have previously received an award of Tax Credits and have an annual Tax Credit shortfall of the total qualified annual Tax Credit amount and (ii) demonstrate readiness to proceed by having all city approvals and all funding commitments in place (other than the Tax Credits the applicant is presently requesting).

Section 8.1 Preference Priorities: The Agency’s preference priorities shall be as set forth in the Scoring Worksheet attached hereto as Schedule 1.

Section 8.2 Tie Breakers: If two or more projects have an equal number of points, the following will be used to determine selection:

a. The first tie breaker will be the total number of points in the preference priority selection.

b. If a tie still remains, the second tie breaker will be if the city in which the project is located has not received Tax Credits in the last two years;

c. If a tie still remains, the third tie breaker will be the lowest percentage of cost of intermediaries; and

d. If a tie still remains, the Agency shall select the project which best meets the Agency’s housing priorities and Dakota County’s underserved communities.

ARTICLE 9 MONITORING COMPLIANCE WITH LOW-INCOME HOUSING CREDIT REQUIREMENTS

Section 9.0 The Agency will monitor compliance for each project to which it allocates Tax Credits in accordance with Section 42(m)(1)(B)(iii) of the Code and Treasury Regulation Section 1.42-5. To the extent that any provision of this Plan is inconsistent with the provisions of Treasury Regulation Section 1.42-5, as the same may be modified or amended from time to time, the provisions of Treasury Regulation Section 1.42-5 shall govern. This Article 9 is also subject to provisions of the Agency’s compliance monitoring manual and to guidance issued by the Internal Revenue Service regarding compliance monitoring and reporting of non-compliance.

Section 9.1 RECORDKEEPING AND RECORD RETENTION PROVISIONS.

15 Dakota County CDA QAP 20212022 283 a. RECORDKEEPING. During the 15-year compliance period, the owner of a low- income housing project is required each year to collect and retain records of the following information for each qualified low income building in the project:

1. The total number of residential rental units in the building (including the number of bedrooms and the size in square feet of each residential rental unit);

2. The number of occupants in each low-income unit, including minors. Housing information concerning race, ethnicity, family composition, age, income, use and amount of Section 8 rental assistance or similar assistance, disability status and monthly rental payments of households residing in the project, which information will be required to be provided annually to HUD, beginning in the first quarter of 2010;

3. The percentage of residential rental units in the building that are low- income units, models, offices and management units;

4. The rent charged on each residential rental unit in the building (including any utility allowances), and documentation, including rent rolls, leases and utility allowances per Internal Revenue Service Notice 94-60 issued June 1994;

5. The low-income unit vacancies in the building and information that shows when, and to whom, the next available units were rented;

6. The annual income certification of each low-income tenant per unit;

7. The annual student certification of each low income tenant;

8. Documentation to support each low-income tenant’s income certification (for example, verifications of income from third parties such as employers or state agencies paying unemployment compensation). Anticipated income of all persons expecting to occupy the unit must be verified and included on a Tenant Income Certification prior to occupancy and annually recertified (if applicable) for continued eligibility. Specific forms of income verification are in the Procedural Manual. Tenant income is calculated in a manner consistent with the determination of annual income under Section 8 of the United States Housing Act of 1937 (Section 8), not in accordance with the determination of gross income for federal income tax liability. In the case of a tenant receiving housing assistance payments under Section 8, the documentation requirement of this paragraph is satisfied if the public housing authority provides a statement to the

16 Dakota County CDA QAP 20212022 284 building owner declaring that the tenant’s income does not exceed the applicable income limit under Code Section 42(g);

9. The character and use of the nonresidential portion of the building included in the building’s eligible basis under Code Section 42(d) (e.g., tenant facilities that are available on a comparable basis to all tenants and for which no separate fee is charged for use of the facilities, or facilities reasonably required by the project);

10. The eligible basis and qualified basis of the building at the end of the first year of the 10-year credit period; and

11. Any additional records necessary to verify compliance with additional restrictions included in the carryover agreement or Declaration. b. RECORD RETENTION. The owner of a low-income housing project is required to retain the records described in paragraph 9.1.a of this section for each building in the project for at least six (6) years after the due date (with extensions) for filing the federal income tax return for that year. The records for the first year of the Tax Credit period, however, must be retained for at least six (6) years beyond the due date (with extensions) for filing the federal income tax return for the last year of the 15- year compliance period with respect to the building. c. INSPECTION RECORD RETENTION PROVISION. Under the inspection record retention provision, the owner of a low-income housing project is required to retain the original local health, safety or building code violation reports or notices that were issued by the state or local government unit for the Agency’s inspection under this section. Retention of the original violation reports or notices is not required once the Agency reviews the violation reports or notice and completes its inspection, unless the violation remains un-corrected.

Section 9.2 CERTIFICATION AND REVIEW a. CERTIFICATION. The owner of a low-income housing project shall certify at least annually to the Agency that, for the preceding 12-month period --

1. The project meets the requirements of the 20-50 test under Code Section 42(g)(1)(A), the 40-60 test under Code Section 42(g)(1)(B) or the average income test under Code Section 42(g)(1)(C), whichever minimum set-aside test is applicable to the project;

2. The project complies with the requirements for special set-aside on which the Tax Credit allocation was based;

17 Dakota County CDA QAP 20212022 285 3. There was no change in the applicable fraction (as defined in Code Section 42(c)(1)(B)) of any building in the project, or that there was a change, and the description of the change;

4. The owner has received an annual income certification and an Annual Student Certification from each low-income tenant and documentation to support that certification. In the case of a tenant receiving Section 8 housing assistance payments, the statement from a public housing authority described above, may be accepted as verification of the household’s income. At annual recertification, owner has received an Annual Student Certification and, where applicable, a Tenant Income Certification with supporting documentation from each low income household;

5. Each low-income unit in the project is rent restricted under Code Section 42(g)(2);

6. No tenants in low-income units were evicted or had their tenancies terminated other than for good cause and no tenants had an increase in the gross rent for a low-income unit not permitted by Section 42;

7. All units in the project are for use by the general public and were used on a non-transient basis (except for transitional housing for the homeless provided under Code Section 42(i)(3)(B)(iii) or single-room-occupancy units rented on a month to month basis under Code Section 42(i)(3)(B)0(iv));

8. No finding of discrimination under the Fair Housing Act, 42 U.S.C.A. §§ 3601 – 3619, has occurred for the project. A finding of discrimination includes: an adverse final decision by the Secretary of Housing and Urban Development (HUD), 24 C.F.R. 180.680, an adverse final decision by a substantially equivalent state or local fair housing agency 42 U.S.C.A. §3616a(a)(1), or an adverse judgment from a federal court;

9. Each building and each low-income unit in the project is suitable for occupancy, taking into account local health, safety, and building codes (or other habitability standards), and the state or local government unit responsible for making local health, safety, or building code inspections did not issue a violation report for any building or low-income unit in the project. If a violation report or notice was issued by the governmental unit, the owner must attach a statement summarizing the violation report or notice or a copy of the violation report or notice to the annual certification submitted to the Agency under this section. In addition, the owner must state whether the violation has been corrected;

18 Dakota County CDA QAP 20212022 286 10. There has been no change in the eligible basis (as defined in Code Section 42(d)) of any building in the project, or that there has been a change, and the nature of the change (e.g., a common area has become commercial space, or a fee is now charged for a tenant facility formerly provided without charge);

11. All tenant facilities included in the eligible basis under Code Section 42(d) of any building in the project, such as swimming pools, other recreational facilities, and parking areas, are provided on a comparable basis without charge to all tenants in the building;

12. If a low-income unit in the project became vacant during the year, that reasonable attempts were or are being made to rent that unit or the next available unit of comparable or smaller size to tenants having a qualifying income before any units in the project were or will be rented to tenants not having a qualifying income;

13. If the income of tenants of a low-income unit in the project increases above the limit allowed in Code Section 42(g)(2)(D)(ii), the next available unit of comparable or smaller size in the project was or will be rented to tenants having a qualifying income;

14. An extended low-income housing commitment as described in Code Section 42(h)(6) was in effect (for buildings subject to Section 7108(c)(1) of the Revenue Reconciliation Act of 1989, 103 Stat. 2106, 2308-2311), and the project meets the provisions, including any special provisions, of the extended low-income housing commitment, including the requirement under Code Section 42(h)(6)(B)(iv) that an owner cannot refuse to lease a unit in the project to an applicant because the applicant holds a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937, 42 U.S.C.A. § 1437s (for buildings subject to Section 13142(b)(4) of the Omnibus Budget Reconciliation Act of 1993, 107 Stat. 312, 438-439);

15. The project complies with the requirements for all applicable federal or state housing programs (e.g. FmHA assistance, HOME, Section 8 or tax- exempt financing), as applicable;

16. The project is otherwise in compliance with the Code, including any Treasury Regulations, the applicable Qualified Allocation Plan, and all other applicable laws, rules and regulations; and

17. There has been no change in the ownership or management of the project.

19 Dakota County CDA QAP 20212022 287 b. REVIEW. The Agency shall review the certifications submitted under Section 9.2(a) above for compliance with the requirements of Section 42 of the Code. In addition:

1. An owner of a low-income housing project must submit to the Agency a completed, Agency signed copy of IRS Form 8609 for the first year of the credit period, together with Form 8609-A and Form 8586.

2. The Agency will conduct on-site inspections of all buildings in the project by the end of the second calendar year following the year the last building in the project is placed in service and at least once every three years throughout the Compliance Period. The Agency will also review the tenant income certifications for the number of units as required in Treasury Regulation 1.42-5 and the documentation the owner has received to support those certifications. Less frequent inspections may occur after the 15-year compliance period has expired.

3. Projects to be inspected must be chosen in a manner that will not give owners of low income housing projects advance notice that their records for a particular year will or will not be inspected. The Agency may give an owner reasonable notice than an inspection will occur so that the owner may assemble records (i.e. 15 days advance notice of inspection).

c. FREQUENCY AND FORM OF CERTIFICATION. The certifications of and review of this section shall be made at least annually through the end of the 15-year compliance period and the additional 15-year Extended Use Period under Section 42(i)(1) of the Code and shall be made under penalty of perjury.

Section 9.3. INSPECTION PROVISION. The Agency shall have the right to perform an on-site inspection of any project at least through the end of the term of the Declaration. An inspection will include a physical inspection of any building(s) in the project, any units in the project, and a review of records described above. The auditing provision of this paragraph is required in addition to any inspection of low-income certifications, supporting documents and rent records under Section 9.2.b above.

Section 9.4 NOTIFICATION OF NONCOMPLIANCE

a. GENERAL. The Agency shall provide the owner of the project notice of noncompliance as set forth in Section 1.42-5(e)(2) of the Treasury Regulations and notice to the Internal Revenue Service as set forth in Section 1.42-5(e)(3) of the Treasury Regulations.

b. NOTICE TO OWNER. The Agency shall provide prompt written notice to the owner of a project if the Agency does not receive the certification described in Section

20 Dakota County CDA QAP 20212022 288 9.2.a hereof or discovers in an audit, inspection or review, or in some other manner, that the project is not in compliance with the Section 42 of the Code.

c. NOTICE TO INTERNAL REVENUE SERVICE. Within 45 days after the expiration of the correction period, the Agency will file Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance, with the Internal Revenue Service (as described in Section 9.5 hereof, including extensions permitted under that paragraph). The Agency must check the appropriate box on Form 8823 indicating the nature of the noncompliance or failure to certify and indicating whether or not the owner corrected the noncompliance or failure to certify. If the Agency reports on Form 8823 that a building is entirely out of compliance and will not be in compliance at any time in the future, the Agency need not file Form 8823 in subsequent years to report that building’s noncompliance.

Section 9.5 CORRECTION PERIOD. The correction period shall be that period specified in the notice to the owner during which an owner will have the opportunity to supply any missing certifications or bring the project into compliance with the provisions of Section 42. The correction period will be set by the Agency and will not exceed 90 days from the date of the notice to the owner described in 9.4.b. The Agency may extend the correction period up to six (6) months, but only if the Agency determines there is good cause for granting an extension.

Section 9.6 AUTHORITY RETENTION OF RECORDS. The Agency must retain records of noncompliance or failure to certify for six (6) years beyond the Agency’s filing of the respective Form 8823. In all other cases, the Agency must retain the certifications and records described in paragraph 9.2.a of this Plan for three (3) years from the end of the calendar year the Agency receives the certifications and records.

21 Dakota County CDA QAP 20212022 289 Section 9.7 DELEGATION OF AUTHORITY.

a. GENERAL. The Agency may retain an agent or other private contractor (the “Authorized Delegate”) to perform compliance monitoring. The Authorized Delegate must be unrelated to the owner of any building that the Authorized Delegate monitors. The Authorized Delegate may be delegated all of the functions of the Agency to monitor compliance, except for the responsibility of notifying the Internal Revenue Service under Section 9.4.c hereof. For example, the Authorized Delegate may be delegated the responsibility of reviewing tenant certifications and documentation under Section 9.2.b hereof, the right to inspect buildings as described in Section 9.3 hereof, and the responsibility of notifying building owners of lack of certification of noncompliance under Section 9.4 hereof.

b. LIMITATIONS. In the event the Agency delegates compliance monitoring to an Authorized Delegate, the Agency shall use reasonable diligence to ensure that the Authorized Delegate properly performs the delegated monitoring functions. Delegation by the Agency of compliance monitoring functions to an Authorized Delegate shall not relieve the Agency of its obligation to notify the Internal Revenue Service of any noncompliance of which the Agency becomes aware of.

Section 9.8 LIABILITY. Compliance with the requirements of Section 42 is the responsibility of the owner of the building for which the Tax Credit is allowable. The Agency’s obligation to monitor for compliance with the requirements of Section 42 does not make the Agency liable for an owner’s noncompliance under Section 42 or the Declaration.

ARTICLE 10 AMENDMENTS TO PLAN

This Plan is subject to modification or amendment at any time to ensure that the provisions contained herein conform to the requirements of Section 42 of the Code, applicable State law, and all official interpretations thereof. Such modifications or amendments and the manner of adoption thereof shall not be inconsistent with the Code. Amendments required solely to comply with the Code, applicable regulations or applicable state law as may be approved by the Executive Director.

22 Dakota County CDA QAP 20212022 290 SCHEDULE 1 SELF-SCORING WORKSHEET 2021 2022 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 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.

Tax-exempt bond financed projects requesting 4% Tax Credits: Such projects must maintain the low-income use for a minimum of 20 years, or such longer period for which the applicant claims points on the Self-Scoring Worksheet. The owner agrees that they will not seek to terminate the extended use period as otherwise permitted under IRC Sections 42(h)(6)(E)(i)(II) and 42(h)(6)(F) earlier than the later of: (a) 5 years after the close of the initial 15 year compliance period, or (b) if the owner claims points on the Self-Scoring Worksheet for a longer extended use period, such longer period.

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

Dakota County CDA QAP 20212022 Sch 1 - 1 291 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.

Dakota County CDA QAP 20212022 Sch 1 - 2 292 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 CDA 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.

3. Substantial Rehabilitation projects in neighborhoods targeted by the applicable city for revitalization.

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. Up to two projects that are new construction or Substantial Rehabilitation multifamily housing projects that are not restricted to persons 55 years of age or older and that are 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;

Dakota County CDA QAP 20212022 Sch 1 - 3 293 an area within one-half mile from a bus stop or station on a high-frequency express route; 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.

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 project satisfies the Agency’s underwriting standards 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 agrees 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 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.

For 4% Tax Credit projects, the applicant agrees to not seek to terminate the Declaration as permitted under Sections 42(h)(6)(E)(i)(II) and 42(h)(6)(F) earlier than the later of (i) 5 years after the close of the 15 year compliance period, or (ii) such longer period for which applicant claims Tax Credits under the “Long Term Affordability, Tax Exempt Bond Projects Only” category under Selection Priorities. 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

Dakota County CDA QAP 20212022 Sch 1 - 4 294 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. SELECTION PRIORITIES a. Selection Criteria Developer Agency Claimed 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 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 or proposed Tax Credit qualified contract applications, 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 in the following selection priorities: a) Financial Readiness to Proceed, minimum of 6 points; and

Dakota County CDA QAP 20212022 Sch 1 - 5 295 b) Federal/State/Local/Philanthropic/Other Contributions, minimum of 4 points; AND iii) Affordability and Cost Effectiveness a) Points claimed and deemed eligible in Preference Priorities b.2 (Serves Lowest Income Tenants/Rent Reduction) .

Dakota County CDA QAP 20212022 Sch 1 - 6 296 Readiness to Proceed (Up to 20 Points) 4. Points are awarded to projects that have received all land use and zoning approvals at the time of application. (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 synonymous with “consider” or “may” award are not 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 much: (1) be current and dated within 15 days of application; (2) contain a projected closing date; (3) contain a projected equity rate 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)

The documentation must be in the form of a project specific Letter of Intent, city or council/board resolution, letter of approval, or statement of agreement or eligibility. Commitment documentation must state the amount, terms and conditions and be executed or approved by the lender or contributor and the applicant. Please see the Procedural Manual Section VIII. A. for additional 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.

Dakota County CDA QAP 20212022 Sch 1 - 7 297 Federal/State/Local/Philanthropic/Other Contributions (Up to 10 Points) 6. Points are awarded to projects receiving non-capital contributions from a governmental unit; an area employer; and/or a private philanthropic, religious or other charitable organization. Calculate the total using the formula below, and then select the appropriate option.

Identity of Interest exclusion: Contributions from any part of the ownership entity will be considered general partner cash and excluded from the calculation unless the contributions are awarded by a nonprofit charitable organization pursuant to a funding competition or local units of government.

Total non-funding contributions from federal/ State/local/philanthropic/other sources $______

Divided by Total Development Cost $______

Equals percentage pof funding from contributions, rounded to the nearest tenth ______%

Check box that applies: 20.1% and above of total development costs (10 points) 10.1-20.0% of total development costs (6 points) 5.1-10.0% of total development costs (4 points)

At the time of application, written documentation from the contributor justifying the amount and the terms of the contribution must be provided and be consistent with current market comparable costs. The documentation must be in the form of a project specific Letter of Intent, local governmental resolution, letter of approval, statement of agreement or eligibility, or a memorandum of understanding. The value assigned to donations and in-kind contributions must be consistent with comparable market costs for materials and services.

The documentation must state the amount, terms and conditions and must be executed or approved at a minimum, by the contributor. Documentation containing the words synonymous with “consider” or “may” (as in “may award”) regarding the contribution will not be acceptable. Please see the Procedural Manual Section VIII. A. for additional details.

NOTE: Contributions claimed in this selection criterion cannot be claimed for the permanent sources in the Financial Readiness to Proceed selection criterion.

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) 7. 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.

Dakota County CDA QAP 20212022 Sch 1 - 8 298 Accessible Units (5 Points) 8. At least 25% of the 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.

Owned by Non-Profit or Governmental Unit (5 Points) 9. A qualified non-profit or a governmental unit is the sole general partner.

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. For a non- profit, a copy of the Certificate of Incorporation from the Secretary of State of Minnesota must be submitted at the time of application. Points will only be given to a local non-profit. To be eligible for points, the non-profit must have Code Section 501(c)(3) approval from IRS at the time of application, and meet the requirements of Section 42(h)(5)(C) of the Code.

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 of a project that had units convert to market rate units in the past three years without the consent of the issuing public agency within Minnesota.

Intermediary Costs (Up to 15 Points) 10. 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 (15 points) 15.1 – 20.0% of total development cost (10 points) 20.1 – 25.0% of total development cost (2 points) Over 25.0% of total development cost (0 points)

Dakota County CDA QAP 20212022 Sch 1 - 9 299 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 percent of the household’s monthly income or the most current supportive housing standard for the unit size as published 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. 11. Permanent Supportive Housing Units. Points are awarded to projects that commit suitable Tax Credit units with supportive services for occupancy by households who are experiencing homelessness. Projects must receive support in writing from the Dakota County Affordable Housing Coalition (AHC). Applicants claiming points for providing homeless units will be requested to work with the Suburban Metro Area Continuum Homeless Coordinated Entry System, as is reasonable and feasible, to fill those units. Applicants must also provide a written commitment from an appropriate social service agency to provide support services. Contracts for supportive services must be in place prior to closing or Tax Credit commitment.

Set aside 5% to 9.99%, but no fewer than 2 Tax Credit units (5 points) Set aside 10% to 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)

*Applicants with a set aside of 10% or more units must also provide a written commitment from an appropriate social service agency to provide on-site support services.

Rehabilitation Under Community Revitalization Plan (5 Points) 12. Rehabilitation of existing housing as part of a community revitalization plan and that is contributing to the revitalization.

Eventual Tenant Ownership (1 Point) 13. This point is awarded to projects that include a plan for eventual tenant ownership of 100% of the units.

Unacceptable Practices (Up to -50 Points) 14. 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.

Dakota County CDA QAP 20212022 Sch 1 - 10 300 Access to Transit (Up to 15 Points) 15. 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 Red Line transitway stations (including the Burnsville Center station and all stations north) or Orange 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.

16. Ten (10) points are awarded to projects approved by the Agency to qualify under the minimum threshold requirement #7.

Long Term Affordability, Tax Exempt Bond Projects only (5 or 10 Points) 17. Applications seeking 9% Tax Credits are not eligible to claim points through this Long Term Affordability criteria. Only applications seeking 4% Tax Credits are eligible to claim points under this criteria.

Points are awarded to 4% Tax Credit projects which agree to extend the long term affordability of the project and maintain the duration of the low- income use for:

A minimum of 25 years (i.e. a 10-year extended use period) to receive 5 points; or

A minimum of 30 years (i.e., a 15-year extended use period) to receive 10 points.

b. PREFERENCE PRIORITIES Developer Agency Claims Awarded 1. Previous Tax Credit Commitment/Reservation. 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. (30 points)

Dakota County CDA QAP 20212022 Sch 1 - 11 301 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. Points will be awarded to projects located in a Qualified Census Tract and are part of a cooperatively developed plan that provides for community revitalization. (5 Points)

TOTAL POINTS: Developer Agency Claims 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

Of: Name of Managing/General Partner

Date:

Dakota County CDA QAP 20212022 Sch 1 - 12 302 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION

Annual GREATER MSP Update - Informational

Fiscal/FTE Impact: Meeting Date: 3/16/2021 None Department: Community & Economic Development Amount included in current budget Prepared By: Lisa Alfson Budget amendment requested Contact: Lisa Alfson FTE included in current complement Contact Phone: 651-675-4467 New FTE(s) requested Other:

PURPOSE/ACTION REQUESTED  Receive annual update from GREATER MSP.

SUMMARY GREATER MSP is a public-private partnership whose mission is to stimulate economic growth and prosperity in the Minneapolis-St. Paul region. GREATER MSP provides vision, strategy, resources and staff support to governments and organizations involved with job creation, regional marketing, business recruitment and retention, and talent/workforce attraction.

The Dakota County Community Development Agency (CDA), on behalf of Dakota County, has been an investor in GREATER MSP since 2011. As part of our investment, the CDA is provided one seat on the GREATER MSP Board (as approved by the GREATER MSP Board). Commissioner Gaylord represents Dakota County on the GREATER MSP Board.

GREATER MSP assists with the implementation of several economic development initiatives outlined in the Dakota County Economic Development Strategy. Through participating in GREATER MSP, the strategic initiatives of 1) creating prospect response capacity (i.e. working with site selectors); 2) undertaking development-related resource and policy capacity (i.e. MSP Regional Dashboard, Make.It.MSP workforce resource and efforts, etc.); and 3) enhance image, marketing and branding.

Peter Frosch, GREATER MSP CEO, will present at the March 16 meeting to provide the CDA Board with an update on the progress GREATER MSP made in the last year and what to expect in 2021.

Attachment A is a memo from GREATER MSP.

______Executive Director Department Director 303 5C: Attachment A

March 10, 2021

Dear Commissioners:

In advance of our conversation next week, it is my pleasure to share an overview of the work underway between GREATER MSP and Dakota County for your review. This document details results, value creation and specific opportunities to increase collaboration. It is intended to be the foundation for an informed dialogue with each of you and CDA staff in the days and weeks ahead.

Dakota County is a major contributor to the regional economy and plays an important role in GREATER MSP – the regional economic development partnership for the 15-county Minneapolis- Saint Paul region. Our public-private partnership now includes over 300 leading businesses, counties, cities, universities, and civic groups. Together, we are creating thousands of good jobs, bringing hundreds of millions of dollars in new investment into our communities, strengthening our workforce for the 21st century and taking meaningful action to advance racial equity.

GREATER MSP is committed to assisting Dakota County fulfill its many responsibilities and enhance the quality of life for your communities and residents. I appreciate this opportunity to identify areas for collaboration in 2021.

Please contact me at any time with questions.

Sincerely,

Peter Frosch President & CEO GREATER MSP Partnership

612-387-3947 (cell) [email protected]

304 MEMORANDUM

To: Dakota County CDA Board of Commissioners From: GREATER MSP Partnership Date: March 10, 2021 Re: Dakota County & the GREATER MSP Partnership

Introduction GREATER MSP was created so that leaders in local government, business, higher education and other sectors could join forces and take on challenges that are critical to their organizations but too large for any of them to solve alone. Year after year, the GREATER MSP Partnership has fulfilled on this purpose by delivering solutions to complex regional challenges, which include:

• Creating good jobs & increasing investment by expanding, retaining and attracting private sector employers; • Strengthening the labor force with regional-scale initiatives focused on talent retention & attraction and building a racially-inclusive talent pipeline; • Building the region’s innovation ecosystem by accelerating start-up growth and corporate innovation; • Advancing inclusive growth by creating economic opportunity for residents and communities across the region.

Value Creation for Dakota County Counties across the United States make significant investments in regional economic development efforts primarily because these partnerships are a proven strategy for increasing commercial and industrial property tax revenue. The results for Dakota County from its investments in GREATER MSP’s business expansion, attraction & retention efforts are substantial:

• Between 2011-2020, 25 job expansion, retention & attraction projects won with GREATER MSP leadership located in Dakota County – this represents 13% of all deal wins in the 15-county region over this period. • These project wins produced $325 million of additional capital investment in Dakota County ($167.2 in real property) and the creation of 4,469 jobs paying on average $50,000 or more with benefits.

For Dakota County, the work of the GREATER MSP Partnership translates directly into more commercial and industrial tax revenue, new residential property taxpayers, reduced utilization of county social service supports and additional support to preserve and grow small business. There is significant value being created for the County and its residents today, and even more that could come from increased collaboration. Our analysis finds that for every $1 million in taxable market value of commercial and industrial real estate in Dakota County the county generates

305 approximately $3,000 in property tax revenue every year. Therefore, the total estimated annual tax paid by companies that located and grew in Dakota County with support from GREATER MSP results in $500,000 of tax revenue to the county every year.

Because of the direct revenue benefits of economic development activities, it is commonplace across the U.S. for economic development groups to be funded exclusively by counties and cities. GREATER MSP is a public-private partnership funded by over 120 companies, foundations, local government entities and universities that pool resources to support a broad portfolio of work. Approximately 79% of GREATER MSP funding comes from non-government sources. Each year, Dakota County’s investment is matched roughly 48:1 by other investors.

Potential 2021 joint Dakota County-GREATER MSP projects As an investor and member of the GREATER MSP Board, Dakota County is a co-owner and co- leader of GREATER MSP. Based on our understanding of the County’s priorities for 2021, we see multiple opportunities to advance the County’s agenda while strengthening the region’s inclusive economic recovery. We are interested in engaging with the County to discuss the following potential collaborations:

• Supporting Dakota County small businesses by launching a regional small business team, including a supply chain resiliency and diversity strategy that will increase opportunities for small businesses to be competitive in securing procurement contracts with region- based corporate buyers • Increasing the competitiveness of industrial sites in Dakota County through a regional site development strategy that will assess site readiness needs and identify strategic business attraction opportunities and marketing campaigns for the region’s most competitive sites. • Delivering customized Dakota County economic research and intelligence that will support the CDA’s efforts to develop targeted support for businesses and residents, including the latest insights on the status of regional economic recovery.

Proposed steps to formalize & strengthen our working partnership Over the past several years, counties across the MSP region have become increasingly proactive in developing economic development strategies. As a result, collaboration between individual counties and GREATER MSP continues to increase year on year. GREATER MSP structured multiple touchpoints with each county to facilitate this work, which we would like to propose to Dakota County for consideration as we explore opportunities to increase our dialogue and strengthen our working partnership:

1. Annual or bi-annual working sessions between County CDA Board, senior CDA staff & GREATER MSP leaders to examine County priorities and identify specific areas for collaboration 2. Bi-monthly roundtable sessions with the Commissioners on the GREATER MSP Board to explore shared challenges and areas of collaboration (we identified small business and racial equity as focus areas for cross-county work in 2021)

306

3. Annual memo detailing GREATER MSP results, progress in joint efforts and potential new areas of collaboration 4. Involvement of CDA Commissioners and/or CDA staff in project teams of the GREATER MSP Partnership focused in the areas of business investment, housing, talent, innovation, and more.

In addition, we anticipate opportunities later in 2021 to engage both Commissioners and senior staff in new working teams of GREATER MSP’s Business Investment efforts (i.e. the work to retain, expand and attract companies and create jobs).

Progress & Results in 2020 The GREATER MSP Partnership is helping lead the region through this period of economic contraction. In the face of unprecedented challenges, and in response to an increase in requests of support from the region, GREATER MSP succeeded in producing the following results in 2020:

1. Winning 12 nationally-competed job creation projects in 2020, resulting in 1,317 jobs (that pay on average over $50,000) and $369 million of capital investment. 2. Qualifying the GREATER MSP economic development strategy with the U.S. Economic Development Administration, which qualified cities and counties in our metro to compete for $1.5 billion in new federal funding. 3. Building a new regional supply chain resiliency and diversity strategy funding application, submitted to U.S. EDA in October 2020, to preserve & support small and medium sized businesses, and the jobs they create (we are awaiting funding decision from EDA). 4. Launching a new, real-time Regional Recovery Hub at greatermsp.org to help leaders track the economy’s pace of recovery. 5. Stabilizing MSP International Airport and the tens of thousands of jobs it creates by working with Delta and other airlines through the Regional Air Services Partnership to rebuild air service. 6. Launching a new regional initiative, called MBOLD, to make our region a global hub for solving the most critical food & agriculture challenges of the 21st century, including global- scale solutions for mitigating climate change. 7. Building the medical & health sector with a global outreach campaign targeting 200 health companies outside of the U.S. 8. Increasing the amount of national venture capital funding into the MSP region to support the growth of start-ups, with an emphasis on BIPOC founders. 9. Supporting county and state COVID-19 crisis response in March and April by securing temporary call locations for the U.S. SBA to support small businesses in our region, locations to expand manufacturing PPE. 10. Building a new initiative, called ConnextMSP to ensure thousands of students from low- income backgrounds obtain internships and full-time employment with employers in our region. 11. Supporting the growth of culturally-specific professional associations such as Black MBAs through the regional talent initiative Make it. MSP. 12. Advancing racial equity in the innovation community with a bold new pledge and plan of action through innovation initiative Forge North.

307

13. Hosting a digital summer intern event, involving over 500 interns in 200 cities across the U.S. 14. Working in partnership with the University of Minnesota to secure a U.S. Department of Defense award of $260 million to create a new Manufacturing Innovation Institute located at the University of Minnesota.

The Expanding Capabilities of the GREATER MSP Partnership With over 300 organizations across the region actively participating, GREATER MSP has expanded its scope and capabilities since being established ten years ago. In 2021, GREATER MSP is leading regional work in the following areas:

• Business expansion, attraction & retention (Business Investment) • Retaining and attracting professional talent (Make It. MSP.) • Independent data, research & analysis related to the economy & competitiveness (Research & Intelligence) • Building the national & global brand image of the Minneapolis Saint Paul region (MSP Storytelling) • Supporting start-up growth and corporate innovation (Forge North) • Growing the region’s food and agriculture sector (MBOLD) • Increasing air service at MSP International Airport (RASP) • Launching this year: Building a racially inclusive talent pipeline (ConnextMSP) GREATER MSP was recognized in 2020 as one of America’s leading economic development efforts by the International Economic Development Council.

Analysis: Dakota County COVID-19 economic impact Dakota County is the largest by population and employment in the MSP region after Hennepin and Ramsey counties, and is home to an important pool of talent in the Greater MSP region. The county contributes 12% of regional population, 10% of regional jobs, and 10% of regional output.

2020 was a challenging year for the entire region as stay-at-home orders to control the spread of COVID-19 quickly and deeply impacted many businesses and workers. GREATER MSP’s Research & Intelligence team closely tracked dozens of real-time metrics throughout the year to better understand the impacts of COVID-19 on employment, travel and movement, business vitality, family vitality. Data and insights on regional impacts are tracked at the MSP Regional Recovery Hub, accessible at www.greatermsp.org/recovery.

Tracking data at the county level is important as you determine your path forward in helping residents and companies weather the immediate crisis of COVID-19 and plan for recovery. The GREATER MSP Research & Intelligence is your partner in tracking and understanding this data. Here are a few key insights we have uncovered on the impacts of COVID-19 on Dakota County in 2020. Overall, Dakota County has experienced a less significant impact on employment from COVID-19, and has rebounded more quickly, than the 7-County MSP region overall:

308

• From Q1 to Q2 2020, 20,161 jobs were lost in Dakota County, a 10.7% drop in employment that occurred primarily from March to April when initial stay-at-home orders took effect. In the 7-County MSP region, 12% of jobs were lost from Q1 to Q2. • The initial impacts of stay-at-home orders impacted hotels and restaurants most deeply in Dakota County. From Q1 to Q2, the Accommodations and Food Services industry sector experienced a 34.3% decline in employment with 5,132 jobs lost. The Accommodations and Food Services sector experienced a 44.8% decline in the 7-County MSP region for the same time period. • Many of the jobs that were lost immediately from stay-at-home orders were able to return as COVID-19 case activity dropped and state restrictions loosened. From Q2 to Q3 2020, 8,110 jobs returned to Dakota County, approximately 40% of the jobs that had been lost in Q2. In the 7-County MSP region 33% of the jobs that had been lost in Q2 returned in Q3. • Data for Q4 was not yet available at the time of this analysis, but we know based on monthly regional data trends that most job losses experienced late in the year were in the Food and Beverage Services industry as restaurants and bars were restricted from in- person services in late November through December.

GREATER MSP supports the County to create jobs & capital investment The GREATER MSP professional staff team is actively engaged with Dakota County and cities throughout Dakota County to grow jobs and attract capital investment.

In 2020, GREATER MSP directly supported one expansion in Dakota County. GREATER MSP staff provided support to Grant Thornton, who represented Ecolab in their evaluation of locations for a new pilot lab and prototyping facility. GREATER MSP was part of a team led by the city of Eagan and MN DEED for Ecolab’s successful Job Creation Fund application and final decision to grow in Eagan. The company committed 14 new jobs and spent $3.9 million to expand capacity at their Eagan facility. This project is an important base for future growth from this new product line.

GREATER MSP also partnered with Dakota County and communities throughout Dakota County to facilitate 8 new project starts. Many of these projects are still considered active and ongoing in Q1 2021. These 8 new projects represents over 2,600 potential new jobs and over $360 million in total capital investment.

GREATER MSP offers a range of tools and supports to private sector clients considering expanding or locating in the MSP region. For example, in Summer 2020 GREATER MSP was contacted by a global site location firm conducting analysis about how higher education and employers were adapting to shifting demands related to COVID-19. These reports influence future decision making for where jobs and capital investment are located in the U.S. GREATER MSP connected the site location firm with Dakota County Workforce Development staff, who then included Inver Hills Community College and Dakota County Technical College to participate in a direct conversation with the site location firm. The site location firm’s report highlighted Dakota County higher education institutions as national best practices. This will increase the visibility and attractiveness of Dakota County communities among national site selectors.

309

The GREATER MSP staff team also supports counties in marketing their economic assets and shaping their economic strategies. To do this, GREATER MSP created and operates a regional “site request broadcast” system to notify all county and city economic development partners of job creation project opportunities as they arise. When a company contacts GREATER MSP expressing interest in considering our region as a possible location for their future growth, GREATER MSP gathers key specifications about the project and sends a communication via email requesting a response from counties and cities that may have a site or building that meets the project requirements. In 2020, GREATER MSP was able to share six site broadcasts with the region. These six project opportunities represent a total of 1,600 new jobs and $290 million in capital investment. Dakota County staff receives these broadcasts along with every city in the county. GREATER MSP has worked with county staff, electric utilities, commercial brokers, and a range of cities – including Farmington, Eagan, Lakeville, Rosemount, and Hastings – to amplify unique building, site and community selling points to site selectors and business through these broadcasts.

Amplifying our region’s story to key audiences is a core focus, and GREATER MSP adjusted to the realities of COVID-19 by continuing to lead out-of-market regional promotion to national site selection consultants and business location decision makers during 2020. GREATER MSP successfully shifted work to digital outreach, creating unique engagement opportunities with domestic and international targets. Examples of this shift includes:

• Leveraging robust internal intelligence and research platforms, GREATER MSP identified 175 high-growth digital health companies and executed custom outreach to company executives. • Working with the Medical Alley Association, GREATER MSP co-developed webinar content for over 50 growing health technology companies in Canada, the United Kingdom, and Austria. • GREATER MSP promoted the region to organizers of national and international virtual conferences: OnRamp AgTech Conference (Omaha), Collision (Toronto), and Web Summit (Portugal). • GREATER MSP continued to engage the national network of site selectors by developing content that leverages key regional announcements, including the launch of MBOLD.

GREATER MSP’s Business Investment team is partnering with groups like the Medical Alley Association, the Minnesota Department of Employment and Economic Development, electric utilities, international consulate partners, and the Minnesota Marketing Partnership to execute digital engagement of domestic (non-Minnesotan) and international companies in 2021. We anticipate that these efforts will result in new market visibility and engagement with over 300 target sector businesses. GREATER MSP is uniquely positioned to share insights into how communities can win in a globally competitive landscape, while cultivating specific opportunities to execute on those strategies. Cities and counties can position themselves to compete and win projects (and the additional tax

310 revenue they bring) by developing competitive sites. This is an area where GREATER MSP would like to work more closely with Dakota County in 2021 and beyond.

GREATER MSP delivers independent research and intelligence GREATER MSP’s independent research capabilities help counties across the region answer pressing questions related to economic development. For the benefit of all public sector entities in the region, GREATER MSP invests in sophisticated economic modeling capabilities and database assets, which would be beyond the ability of most cities or counties to acquire alone. Research and intelligence support provided to Dakota County and cities within the County in 2020 included:

• Worked with Dakota County CDA staff to incorporate county economic development priorities into a regional Comprehensive Economic Development Strategy (called the Regional Economic Framework), which was adopted by the Met Council in August of 2020. The strategy qualifies the region to access U.S. Economic Development Administration funding. • Provided the Dakota County CDA with a database of thousands of small businesses, enabling CDA staff to quickly send information about CARES Act relief funding to businesses in need • Provided the city of Burnsville with a database of small businesses in the city, enabling city staff to quickly send information about CARES Act relief funding to businesses in need • Provided business demographics data to the city of Apple Valley to support the city’s economic development efforts • Provided comparison data of MSP, Austin, and Charlotte to support site development strategies in the city of Apple Valley

Dakota County is encouraged to contact GREATER MSP business investment professionals at any time for assistance with the following:

• Coordinated marketing campaigns to companies • Relationship development/partner introductions • Incentives technical support • Global business visibility through marketing campaigns, market visits, and trade shows • Site request broadcasts, an open call to local partners for sites and buildings that meet active project needs • Regional request for information (RFI)/proposal coordination • Single point of contact for projects that are considering multiple locations in the region Dakota County is encouraged to contact GREATER MSP research & intelligence professionals at any time for assistance with the following:

• Talent analysis for the county or customized geography in vicinity of a site or building • Largest employer lists and existing employer insights for business retention efforts • County and city economy profiles • RFI/proposal data collection and response

311

• Site and building project readiness • Commuter shed/ inflow & outflow of workers • Real estate analysis • Economic impact analysis of new or existing projects • Competitive positioning and strategic industries analysis

GREATER MSP supports the growth of employers & organizations in Dakota County Overcoming challenges such as COVID-19, racial disparities, and climate change will require greater partnership and collaboration across organizations and sectors to ensure our region’s economy and residents recover, and achieve more broadly shared prosperity. As a working Partnership, hundreds of leaders are collaborating through GREATER MSP’s strategic initiatives to create innovative solutions to shared challenges.

The regional talent retention and attraction effort called Make It. MSP. was the first of these “strategic initiatives” in 2016. In 2018 Make It. MSP. was recognized by the International Economic Development Council as the best talent effort in the United States. Today, Make It. MSP. involves over 100 organizations across the region and is producing tools and insights employers rely upon to improve how they retain talent in MSP and attract talent to MSP. The initiative has contributed to the region’s 227% increase in the net migration of 25–34-year-olds from 2014 to 2018. In 2018 there were over 5,600 more 25–34-year-old residents in the region, many of whom live and work in Dakota County.

Based on the success of Make It. MSP., GREATER MSP partners formed other strategic initiatives, including Forge North, ConnextMSP and the Regional Air Services Partnership. Each strategic initiative aligns the capabilities of dozens of our region’s leading companies, universities, agencies and foundations. Leaders work in teams to create innovative solutions to a shared challenge.

Employers in Dakota County as well as county leaders are able to opt-in and take action through these initiatives. More information on some of the opportunities and benefits with each of these initiatives are detailed below.

• Forge North is actively supporting and connecting entrepreneurs (and the organizations that help them grow) throughout the MSP region, including in Dakota County. The Forge North Resource Compass is a digital tool that helps startup firms navigate 600+ resources across the local startup ecosystem to find the right mentor program, investment firm, and more based on their business stage • ConnextMSP was built to connect thousands of BIPOC alumni of local college and career readiness programs to employers in MSP, including in Dakota County. The Connext 360 Alumni Network is the digital platform fostering the connections between alumni and employers. The initiative will launch in 2021.

312

• The Regional Air Services Partnership enhances the globally-competitive air service of the Minneapolis-Saint Paul International Airport by aligning air service offerings with the needs of businesses. In 2019, the Regional Air Services Partnership was responsible for securing new direct flights between MSP airport and Seoul, Mexico City and Dublin. • MBOLD is working to accelerate solutions to the most pressing challenges facing the food and agriculture sectors today, particularly climate change and the growing demand for food. Through MBOLD, organizations are working together on priorities like creating a circular economy for flexible film packaging and improving soil health.

Employers in Dakota County are able to opt-in and be active participants and co-creators in any or all of these initiatives. Together, we have developed answers to the following questions many employers in the county face, including:

• How can our employers retain & attract employees? • How can our employers create more diverse & inclusive workplaces? • How can we help our employers innovate? • How can we support start-ups in our county? • What national and international flights do our employers need to succeed? • How do we create a talent pipeline to meet our future workforce needs?

313