Redevelopment Agency / North Walke Housing Corp

3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 TO: Members, North Walke Housing Corp. FROM: John Igneri, Chairman DATE: January 5, 2022 RE: Regular Meeting Notice ************************************************************************ NORTH WALKE HOUSING COPORATION JANUARY 11, 2022 5:30 P.M. REGULAR MEETING AGENDA The next meeting will be held on TUESDAY, JANUARY 11, 2022 at 5:30 p.m. Due to the ongoing public health situation the meeting will be held as a Zoom virtual meeting via the link provided below. The meeting will also be broadcast on the Norwalk Redevelopment Agency YouTube channel: https://www.youtube.com/channel/UCHMiAZt32k6BnjaKdnUaIug?view_as=subscriber. ZOOM Meeting Link: https://us06web.zoom.us/j/87819590706?pwd=c2dMWnRGcEV2Q0h0Vm5USDdWRjNmQT09 I. CALL TO ORDER II. ROLL CALL III. PUBLIC PARTICIPATION IV. ADMINISTRATION a. Approval Of Minutes i) Approve minutes of the November 9, 2021 regular meeting b. Financials i) Audit (1) Approve North Walke Housing Corporation Audited Financial Statements for Fiscal Year Ended June 30, 2021 to be presented by Auditor, Michael Solakian I. BUSINESS II. NEW BUSINESS III. OLD BUSINESS IV. ADJOURNMENT  3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 CITY OF NORWALK NORTH WALKE HOUSING CORPORATION REGULAR MEETING NOVEMBER 9, 2021 ATTENDANCE: John Igneri, Chair; Kelly Bloom, Lisa Cooper, David Westmoreland OTHERS: Brian Bidolli, Redevelopment Agency Executive Director; Katie O’Leary, Communication Director, Eugenia Lupinski, Director of Finance. CALL TO ORDER Mr. Igneri called the meeting to order at 5:30 p.m. ROLL CALL Mr. Igneri called the roll. A quorum was present. PUBLIC PARTICIPATION There was no one present from the public who wished to address the Board Members at this time. I. ADMINISTRATION 1. APPROVAL OF MINUTES a. Approve Minutes of the September 21, 2021 Regular Meeting. ** MR. WESTMORELAND MOVED THE MINUTES OF THE SEPTEMBER 21, 2021 REGULAR MEETING. ** MS. BLOOM SECONDED. ** THE MOTION TO APPROVE THE MINUTES OF THE SEPTEMBER 21, 2021 REGULAR MEETING AS SUBMITTED PASSED UNANIMOUSLY. 2. FINANCIALS a. Approve North Walke Housing Corporation Statement of Revenues and Expenditures and Balance Sheets for all funds for quarter ending September 30, 2021. City of Norwalk North Walke Housing Corporation Regular Meeting November 9, 2021  3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 Ms. Lupinski stated that for the quarter ending September 30, 2021, the North Walke Fund 400 had $2,885 in revenue and $305 of expenses which resulted in a net surplus of $2,580. The Balance Sheet for this fund had assets of $421,000, and liabilities and net assets of $421,000. The North Walke Revolving Loan Fund 450 had $723 of a net operating surplus which is interest income from notes. This fund has $137,000 in assets, and $137,000 in liabilities and net assets. ** MR. WESTMORELAND MOTIONED TO APPROVE THE NORTH WALKE HOUSING CORPORATION STATEMENT OF REVENUES AND EXPENDITURES AND BALANCE SHEETS FOR ALL FUNDS FOR QUARTER ENDING SEPTEMBER 30, 2021, AS PRESENTED ** MS. BLOOM SECONDED. ** THE MOTION PASSED UNANIMOUSLY. II. BUSINESS III. NEW BUSINESS There was no new business to consider at this time. IV. OLD BUSINESS There was no old business to consider at this time. ADJOURNMENT ** MR. WESTMORELAND MOVED TO ADJOURN. ** MS. COOPER SECONDED. ** THE MOTION PASSED UNANIMOUSLY. The meeting adjourned at 5:33 p.m. Respectfully submitted S. L. Soltes Telesco Secretarial Services City of Norwalk North Walke Housing Corporation Regular Meeting November 9, 2021 Financial Statements and Supplementary Information Years ended June 30, 2021 and 2020  NORTH WALKE HOUSING CORPORATION Table of Contents Years ended June 30, 2021 and 2020 Page Independent Auditor’s Report Statements of Financial Position 1 Statements of Activities 2 Statements of Cash Flows 3 Notes to Financial Statements 4–6  Michael Solakian, CPA 580 Johns Pass Avenue Madeira Beach, FL 33708 USA www.solakiancpa.com Independent Auditor’s Report To the Board of Commissioners North Walke Housing Corporation We have audited the accompanying financial statements of North Walke Housing Corporation (a nonprofit organization) which comprise the statements of financial position as of June 30, 2021 and 2020, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. 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 audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. 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. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of North Walke Housing Corporation as of June 30, 2021 and 2020, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. November 30, 2021 THIS REPORT IS ISSUED WITH THE UNDERSTANDING THAT WHILE IT MAY BE REPRODUCED IN ITS ENTIRETY, EXTRACTS FROM IT OR REFERENCES TO IT SHALL FIRST BE SUBMITTED FOR OUR WRITTEN APPROVAL.  NORTH WALKE HOUSING CORPORATION Statements of Financial Position June 30, 2021 and 2020 Assets 2021 2020 Cash $ 45,036 44,428 Investments 154,471 553,875 Accounts and loans receivable 355,671 113,192 Total assets $ 555,178 711,495 Liabilities and Net Assets Accounts payable $ 145 145 Other liabilities 122,420 282,420 Loans payable 50,722 50,722 Total liabilities 173,287 333,287 Net assets without restrictions 381,891 378,208 Total liabilities and net assets $ 555,178 711,495 See accompanying notes to financial statements. 1  NORTH WALKE HOUSING CORPORATION Statements of Activities Years ended June 30, 2021 and 2020 2021 2020 Revenues: Program income $ 7,650 9,600 Interest income 3,784 5,150 Total revenues 11,434 14,750 Expenses: Program: Project expenses - - Management and general: Professional fees 6,500 6,500 Office and miscellaneous expenses 1,251 1,230 Total expenses 7,751 7,730 Change in net assets 3,683 7,020 Net assets - beginning of year 378,208 371,188 Net assets - end of year $ 381,891 378,208 See accompanying notes to financial statements. 2  NORTH WALKE HOUSING CORPORATION Statements of Cash Flows Years ended June 30, 2021 and 2020 2021 2020 Cash flows from operating activities: Change in net assets $ 3,683 7,020 Adjustments to reconcile changes in net assets to net cash provided by operating activities: Decrease (increase) in: Accounts and loans receivable (242,479) 5,811 Increase (decrease) in: Other liabilities (160,000) (570,000) Net cash used in operating activities (398,796) (557,169) Cash flows from investing activities: Redemption (purchase) of investments 399,404 (202,057) Net cash provided by (used in) investing activities 399,404 (202,057) Net increase (decrease) in cash 608 (759,226) Cash - beginning of year 44,428 803,654 Cash - end of year $ 45,036 44,428 See accompanying notes to financial statements. 3  NORTH WALKE HOUSING CORPORATION Notes to Financial Statements June 30, 2021 and 2020 (1) Reporting Entity The North Walke Housing Corporation (NWHC or Corporation) is a non-stock, nonprofit corporation established in 1987 to act as a community development housing corporation to provide housing opportunities for low-and-moderate income individuals and families in Norwalk, Connecticut. (2) Summary of Significant Accounting Policies Financial Statement Presentation NWHC follows accounting for not-for-profit organizations as outlined in professional standards. Accordingly, it is required to report information regarding its financial position and activities according to two classes of net assets as follows: Net Assets Without Donor Restrictions - Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions - Net assets subject to donor (or grantor) imposed restrictions. Some donor-imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates those resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is, when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. Grants and Contracts Grants and contracts are generally considered to be exchange transactions in which the grantor or contractor requires the performance of specified activities. Entitlement to cost reimbursement grants and contracts is based on the expenditure of funds in accordance with grant restrictions and, therefore, revenue is recognized to the extent of grant expenditures. Entitlement to performance-based grants and contracts are based on the attainment of specific performance goals and, therefore, revenue is recognized to the extent of performance achieved. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and reported revenues and expenses. Actual results could differ from those estimates. (Continued) 4  NORTH WALKE HOUSING CORPORATION Notes to Financial Statements (2) Summary of Significant Accounting Policies (continued) Subsequent Events Subsequent events have been evaluated through November 30, 2021, which is the date the financial statements were available to be issued. Cash and Investments The carrying amount of cash and money market investments at June 30, 2021 and 2020 was approximately $199,500 and $598,300, respectively, as shown in the accompanying statement of financial position. The bank balances of these funds totaled approximately $199,500 and $598,300 as of June 30, 2021 and 2020, respectively, of which $250,000 was covered through the Federal Deposit Insurance Corporation. Income Tax Status NWHC is exempt from federal income taxes pursuant to provisions of Section 501(c) (3) of the Internal Revenue Code and has been classified as “other than a private foundation.” Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by NWHC and recognize a tax liability (or asset) if it has taken an uncertain position that more-likely-than-not would not be sustained upon examination by the applicable taxing authorities. Management has analyzed the tax positions, and has concluded that as of June 30, 2021, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. NWHC is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Management believes it is no longer subject to income tax examinations for years prior to 2018. (3) Related Party Transactions Norwalk Redevelopment Corporation (NRA) owed NWHC approximately $3,000 and $3,900 as of June 30, 2021 and 2020, respectively, which is included in accounts and loans receivable. Certain management and commissioners of the NRA function in the same capacity at the NWHC. (4) Loan Payable During the year ended June 30, 2006, the Corporation obtained approximately $51,000 of loan proceeds payable to Federal Home Loan Bank. The outstanding balance was approximately $51,000 as of June 30, 2021 and 2020. (Continued) 5  NORTH WALKE HOUSING CORPORATION Notes to Financial Statements (5) Adoption and Future Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU and all subsequently issued clarifying ASUs replaced most existing revenue recognition guidance in U.S. generally accepted accounting principles. The Corporation adopted the new standard effective July 1, 2020 using the full retrospective method. The adoption of this ASU did not have a significant impact on the Corporation’s financial statements, and no changes were required to previously reported revenues. In June 2018, the FASB issued ASU No. 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. ASU 2018-08 assists entities in (1) evaluating whether transactions should be accounted for as contributions (nonreciprocal transactions) within the scope of Topic 958, Not-for-Profit Entities, or as exchange (reciprocal) transactions subject to other guidance and (2) determining whether a contribution is conditional. The provisions of ASU 2018-08 are effective for years beginning after December 15, 2019. The Corporation adopted the standard effective July 1, 2020 and it did not have a significant impact on the financial statements, and no changes were required to previously reported revenues. In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires entities to recognize all leased assets as assets on the statement of financial position with a corresponding liability. Entities will also be required to present additional disclosures regarding the nature and extent of leasing activities. ASU 2016-02 is effective for nonpublic entities for periods beginning after December 15, 2021. The Corporation has not yet evaluated the impact of this statement. (6) Liquidity and Availability of Resources The Corporation has approximately $555,000 of financial assets available within one year of the statement of financial position date to meet cash needs for general expenditures consisting of cash and equivalents of $199,000 and accounts and loans receivable of $356,000. None of the financial assets are subject to donor or other contractual restrictions that make them unavailable for general expenditure within one year of the balance sheet date. The Corporation has a goal to maintain financial assets, which consist of cash and equivalents and pledges and other receivables, on hand to meet one year of annual operating expenses, which are, on average, approximately $10,000. The Corporation has a policy to structure its financial assets to be available as its general expenditures, liabilities, and other obligations come due. In addition, as part of its liquidity management, the Corporation invests cash in excess of daily requirements in various short-term investments. (7) Subsequent Events relating to COVID-19 In March 2020, the World Health Organization classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Corporation’s financial condition, liquidity, and future operations, and management is actively monitoring the situation. Given the continuance of the COVID-19 outbreak, the Corporation is not able to estimate the effects on its results of operations, financial condition, or liquidity for 2022. 6 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org TO: Members, Norwalk Redevelopment Agency FROM: John Igneri, Chairman DATE: January 7, 2022 RE: Regular Meeting Notice ************************************************************************ NORWALK REDEVELOPMENT AGENCY JANUARY 11, 2022 5:30 P.M. REGULAR MEETING AGENDA The next meeting of the Norwalk Redevelopment Agency will be held on TUESDAY, JANUARY 11, 2022 at 5:30 p.m. Due to the ongoing public health situation the meeting will be held as a Zoom virtual meeting via the link provided below. The meeting will also be broadcast on the Norwalk Redevelopment Agency YouTube channel: https://www.youtube.com/channel/UCHMiAZt32k6BnjaKdnUaIug?view_as=subscriber. ZOOM Meeting Link: https://us06web.zoom.us/j/87819590706?pwd=c2dMWnRGcEV2Q0h0Vm5USDdWRjNmQT09 I CALL TO ORDER II ROLL CALL III PUBLIC PARTICIPATION IV ADMINISTRATION a) Approval of Minutes i) Approve minutes of the November 9, 2021 regular meeting b) Financials i) Audit (1) Approve Norwalk Redevelopment Agency Audited Financial Statements for Fiscal Year Ended June 30, 2021 to be presented by Auditor, Michael Solakian. ii) Statement of Revenues and Expenditures for Operating Fund 100 for Year-to-Date (1) Approve Norwalk Redevelopment Agency Statement of Revenues and Expenditures for Operating Fund 100 for Year-to-Date November 30, 2021. 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org V BUSINESS a) Urban Core Landscaping & Maintenance Services i) Approve extension of contract with Meticulous Landscaping through June 30, 2022. b) Agency Work Program Update i) Residential Rehabilitation Program ii) Webster St. Lot iii) South Norwalk Train Station Study c) Loan Review i) Approve Residential Rehabilitation Loan for 4 Gwendolyn Street (Owner Hillary Pollard) and authorize Executive Director, Brian T. Bidolli, to execute contracts for value not to exceed $31,000. VI NEW BUSINESS VII OLD BUSINESS VIII ADJOURNMENT  CITY OF NORWALK REDEVELOPMENT AGENCY REGULAR MEETING NOVEMBER 9, 2021 ATTENDANCE: John Igneri, Chair; Kelly Bloom, Lisa Cooper, David Westmoreland OTHERS: Brian Bidolli, Redevelopment Agency Executive Director; Katie O’Leary, Communication Director, Eugenia Lupinski, Director of Finance. CALL TO ORDER Mr. Igneri called the meeting to order at 5:33p.m. ROLL CALL Mr. Igneri called the roll. A quorum was present. PUBLIC PARTICIPATION There was no one present from the public who wished to address the Board Members at this time. I. ADMINISTRATION 1. APPROVAL OF MINUTES a. Approve Minutes of the October 19, 2021 Regular Meeting. The following correction was noted: Page 4, under EXECUTIVE SESSION, please change the following from: ** MR. WESTMORELAND MOVED TO LEAVE EXECUTIVE SESSION. ** MS. BLOOMED SECONDED. ** THE MOTION PASSED UNANIMOUSLY. To: ** MR. WESTMORELAND MOVED TO LEAVE EXECUTIVE SESSION. ** MS. BLOOM SECONDED. ** THE MOTION PASSED UNANIMOUSLY. City of Norwalk, Redevelopment Agency Regular Meeting on November 9, 2021 1 ** MR. WESTMORELAND MOVED THE MINUTES OF THE OCTOBER 19, 2021 MINUTES AS CORRECTED. ** MS. BLOOM SECONDED. ** THE MOTION TO APPROVE THE OCTOBER 19, 2021 MINUTES AS CORRECTED PASSED WITH TWO (2) IN FAVOR (BLOOM AND WESTMORELAND) AND ONE ABSTENTION (COOPER). b) Financials i) Approve Norwalk Redevelopment Agency Statement of Revenues and Expenditures and Balance Sheets for all funds for the quarter ending September 30, 2021. Ms. Lupinski stated that Operating Fund 100 had actual revenue of $321,000 versus the budget of $355,000 which resulted in an unfavorable variance of $34,000. This was due to lower CDBG grant revenue which will be recouped over the remainder of the year. The total actual expenditures for the year was $347,000 versus the budgeted expenses of $367,000, resulting in a favorable variance of $20,000. This was due to favorable variances in personnel expenses ($16,000) and administrative expenses ($4,000). The actual net operating deficit of $26,000 versus the net operating budget deficit of $12,000 has resulted in an unfavorable deficit of $14,000. The balance sheet has $5,150,000 in cash, accounts receivable, due to other funds and property, and $1,650,000 in net loans receivable. There’s $988,000 in deferred revenues which will be earned when expended and $3,483,000 in net assets. She stated that the financial statements for the other funds are also included in the package. There are no major variances except that the CDBG Non-Revolving Loan Fund 300 had an operating deficit of $26,000 which will be reimbursed by CDBG in the next drawdown. ** MR. WESTMORELAND MOTIONED TO APPROVE THE NORWALK REDEVELOPMENT AGENCY STATEMENT OF REVENUES AND EXPENDITURES AND BALANCE SHEETS FOR ALL FUNDS FOR THE QUARTER ENDING SEPTEMBER 30, 2021 AS PRESENTED. ** MS. BLOOM SECONDED. ** THE MOTION PASSED UNANIMOUSLY. BUSINESS a) DECD $3M Waypoint Phase II Public Infrastructure Improvements Grant i) Authorize the Agency’s Executive Director to execute all documents required to implement the DECD $3M Waypoint Phase II Public Infrastructure Improvements Grant. City of Norwalk, Redevelopment Agency Regular Meeting on November 9, 2021 2 Mr. Bidolli said that this was an administrative grant to support the creation of streetscapes. The grant period has been extended but they need a formal resolution with Mr. Bidolli’s authorization. ** MR. WESTMORELAND MOVED TO APPROVE AUTHORIZING THE AGENCY’S EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS REQUIRED TO IMPLEMENT THE DECD $3M WAYPOINT PHASE II PUBLIC INFRASTRUCTURE IMPROVEMENTS GRANT. ** MS. COOPER SECONDED. ** THE MOTION PASSED UNANIMOUSLY. b) GIS Sidewalk Inventory and Design i) Authorize the Agency’s Executive Director to execute all documents and contracts required to implement the GIS Sidewalk Inventory and Design project. Mr. Bidolli said that this project came from the City’s transportation staff and it will allow the City to inventory the city sidewalks. There are CDBG funds involved, and the focus is constructing new sidewalks along Soundview Avenue. Mr. Westmoreland asked if there was a complete inventory database. Mr. Bidolli said that there was data already entered in the database along with ratings for the condition of the sidewalks. They will continue to build out the database. Mr. Westmoreland said that he would be interested in watching some particular areas. Mr. Bidolli said that he would keep Mr. Westmoreland in the loop. A discussion followed about how the funds would be spent. ** MR. WESTMORELAND MOVED TO APPROVE AUTHORIZING THE AGENCY’S EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS AND CONTRACTS REQUIRED TO IMPLEMENT THE GIS SIDEWALK INVENTORY AND DESIGN PROJECT. ** MS. COOPER SECONDED. ** THE MOTION PASSED UNANIMOUSLY. NEW BUSINESS There was no new business to consider at this time. OLD BUSINESS There was no old business to consider at this time. EXECUTIVE SESSION ** MS. BLOOM MOVED TO ENTER INTO EXECUTIVE SESSION. City of Norwalk, Redevelopment Agency Regular Meeting on November 9, 2021 3 ** MR. WESTMORELAND SECONDED. ** THE MOTION PASSED UNANIMOUSLY. The Board Members entered into Executive Session at 5:45 p.m. The Board Members came out of Executive Session at 6:14 p.m. a) Office Lease Update i) Discussion and possible action on VIII (a). ** MR. WESTMORELAND MOVED TO APPROVE TO AUTHORIZE AN INCREASE TO OCCUPANCY BUDGET BY $40,000 AND AUTHORIZE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE LEASE AGREEMENTS AS NEEDED FOR AGENCY OFFICE SPACE. ** MS. COOPER SECONDED. ** THE MOTION PASSED UNANIMOUSLY. b) Discussion and update on litigation titled City of Norwalk and City of Norwalk Redevelopment Agency vs. ILSR Owners, LLC, which is currently pending in the Stamford-Norwalk Judicial District at Stamford. i) Discussion and possible action on VIII (b). ** MS. BLOOM MOTIONED TO APPROVE TO AUTHORIZE OFFER OF COMPROMISE AS PROPOSED REGARDING LITIGATION TITLED CITY OF NORWALK AND CITY OF NORWALK REDEVELOPMENT AGENCY VS. ILSR OWNERS, LLC. ** MS. COOPER SECONDED. ** THE MOTION PASSED UNANIMOUSLY. ADJOURNMENT ** MS. COOPER MOVED TO ADJOURN. ** MR. WESTMORELAND SECONDED. ** THE MOTION PASSED UNANIMOUSLY. The meeting adjourned at 6:14 p.m. Respectfully submitted S. L. Soltes Telesco Secretarial Services City of Norwalk, Redevelopment Agency Regular Meeting on November 9, 2021 4 Government-wide Financial Statements and Single Audit Reports Year ended June 30, 2021  NORWALK REDEVELOPMENT AGENCY Table of Contents Year ended June 30, 2021 Index Independent Auditor’s Report Management’s Discussion and Analysis 1–6 Government-wide Financial Statements: Statement of Net Assets 7 Statement of Activities 8 Fund Financial Statements: Balance Sheet-Governmental Fund Type 9 Statement of Revenues, Expenditures and Changes in Fund Balance-Governmental Funds 10 Notes to the Financial Statements 11–19 Supplementary Information 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 20–21 Schedule of Revenues, Expenditures and Changes in Fund Balances -Budgetary Comparison 22 Federal Single Audit Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance 23–24 Schedule of Expenditures of Federal Awards and Related Notes 25 Schedule of Findings and Questioned Costs – Federal Awards 26  580 Johns Pass Avenue Madeira Beach, FL 33708 USA www.solakiancpa.com Independent Auditor’s Report To the Board of Commissioners Norwalk Redevelopment Agency Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and major fund of Norwalk Redevelopment Agency as of and for the year ended June 30, 2021, 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 opinions on these financial statements based on our audit. 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. 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 opinion. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of Norwalk Redevelopment Agency, as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. THIS REPORT IS ISSUED WITH THE UNDERSTANDING THAT WHILE IT MAY BE REPRODUCED IN ITS ENTIRETY, EXTRACTS FROM IT OR REFERENCES TO IT SHALL FIRST BE SUBMITTED FOR OUR WRITTEN APPROVAL. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 1-6 and 21 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 as a whole. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2021, on our consideration of Norwalk Redevelopment Agency’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 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 Norwalk Redevelopment Agency’s internal control over financial reporting and compliance. November 30, 2021 THIS REPORT IS ISSUED WITH THE UNDERSTANDING THAT WHILE IT MAY BE REPRODUCED IN ITS ENTIRETY, EXTRACTS FROM IT OR REFERENCES TO IT SHALL FIRST BE SUBMITTED FOR OUR WRITTEN APPROVAL.  NORWALK REDEVELOPMENT AGENCY, INC. Management’s Discussion and Analysis June 30, 2021 As management of the Norwalk Redevelopment Agency, Inc. (the “Agency”), we offer readers of the Agency’s financial statements this narrative overview and analysis of the financial activities of the Agency for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Agency’s basic financial statements that follow this section. Financial Highlights – Norwalk Redevelopment Agency The assets of the Norwalk Redevelopment Agency exceeded its liabilities at the close of the most recent fiscal year by $4,178,323 (net assets). There was no increase or decrease in net assets due to a break-even position for the fiscal year ended June 30, 2021. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Agency’s basic financial statements. The Agency’s financial statements are comprised of three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to financial statements. As outlined in GASB 34, this report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Agency’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the Agency’s assets and liabilities, with the difference between the two reported as net position. Over time increases or decreases in net position may serve as a useful indicator of whether the financial position of the Agency is trending up or down. The statement of activities presents information showing how the Agency’s net position changed during the most recent fiscal 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. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both of the government-wide financial statements distinguish functions of the Agency that are principally supported by Federal HUD Community Development Block Grant (CDBG), Connecticut (State) Department of Economic Community Development (DECD), Choice Neighborhood Initiatives (CNI), Agency and City of Norwalk (City) grants (governmental activities). Agency projects are essential to the City so that the City can maintain stable taxes, avoid stagnation, and preserve the City’s AAA bond rating. (Continued) 1  NORWALK REDEVELOPMENT AGENCY, INC. Management’s Discussion and Analysis June 30, 2021 Government-Wide Financial Statements (continued) The governmental activities of the Agency include Non-Revolving Loan Activities funded by the CDBG, Revolving Loan Activities funded by paid-off loans that are invested back into the Norwalk community as new loans, the DECD grants funded by the State, CNI, Agency and City grants which are used for Urban Renewal projects in Norwalk, and the Operating Activities which manage and perform the daily activities in the various programs and projects. In addition to the governmental funds containing special revenue, the government-wide financial statements can be found on pages 7 - 8 of this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Agency, like other redevelopment agencies of local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds of the Agency can be divided into two categories: governmental funds for special revenue, and account groups for general long-term obligations. Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the Agency’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Agency's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The reconciliation usually centers on debt and fixed assets of which the Agency has none. The Agency maintains five (5) individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the governmental fund and account group for general long-term obligations. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 9 - 10 of this report. (Continued) 2  NORWALK REDEVELOPMENT AGENCY, INC. Management’s Discussion and Analysis June 30, 2021 Notes to the financial statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 11 - 19 of this report. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of an agency’s financial position. In the case of the Agency, assets exceeded liabilities by $4,178,323 at the close of the most recent fiscal year. The net position did not increase or decrease due to a break-even operating result for the fiscal year ended June 30, 2021. The largest portion of the Agency’s assets (65%) is made up of cash and investments. Interest earned on cash and investments generate a small portion of the revenue for the Agency’s operating budget. The second largest portion of the Agency’s assets (34%) is made up of accounts and loans receivable. Accounts receivable are due from government entities, and the loan portfolio consists of loans to qualified sub-prime borrowers priced in accordance with HUD guidelines. At the end of the current fiscal year, the Agency is able to report positive balances in net position. Net Position June 30: 2021 2020 Assets Cash and investments $ 6,355,657 $ 7,600,824 Grants and accounts receivable 1,190,434 620,551 Loans receivable, less allowance of $2,061,045 2,170,828 1,374,413 Other assets 56,681 71,184 Total assets 9,773,600 9,666,972 Liabilities and Net Position Accounts payable and accrued expenses 977,704 668,140 Due to governmental agencies and third parties 1,773,673 1,919,709 Deferred revenues and other liabilities 2,843,900 2,900,800 Total liabilities 5,595,277 5,488,649 Net position: Restricted-urban redevelopment 4,178,323 4,178,323 Total net position $ 4,178,323 $ 4,178,323 (Continued) 3  NORWALK REDEVELOPMENT AGENCY, INC. Management’s Discussion and Analysis June 30, 2021 Governmental activities Governmental activities had a no effect on the Agency’s net position of $4,178,323 for the current fiscal year ended June 30, 2021. Change in Net Position Years Ended June 30: 2021 2020 Revenues: Other government grants for City projects $ 1,931,740 $ 4,034,888 Federal grants 1,832,055 1,038,142 Program and other income 105,651 242,767 Investment income 139 21,056 Total revenues 3,869,585 5,336,853 Expenditures: Project outlays 3,869.585 5,490,184 Change in net position - (153,331) Net position - beginning of year 4,178,323 4,331,654 Net position - end of year $ 4,178,323 $ 4,178,323 (Continued) 4  NORWALK REDEVELOPMENT AGENCY, INC. Management’s Discussion and Analysis June 30, 2021 Expenses and Program Revenues – Government-Wide Activities Revenues and expenditures were break even during the fiscal year ended June 30, 2021. Financial Analysis of the Government's Funds As noted earlier, the Agency uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the Agency’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Agency’s financing requirements. In particular, fund balances may serve as a useful measure of a government's net resources available. As of the end of the current fiscal year, the Agency’s governmental funds reported combined ending fund balances of $4,178,323. There was no change in net position for the fiscal year ended June 30, 2021. Governmental Fund Budgetary Highlights There was no difference between the original budget and the final budget. Factors Affecting CDBG Federal Funding The Federal HUD Community Development Block Grant (CDBG) funding has substantially decreased over the years. In the year 2001, the CDBG entitlement grant shared with non-profits was $1,209,000. In the year 2008, the grant had continued its yearly downward spiral to where the CDBG entitlement grant was only approximately $935,100. Over the seven-year period, there was an actual decrease in CDBG dollar funding of approximately $274,000, or 23%. In addition, a 3% Cost of Living increase in federal CDBG funding was never provided which resulted in an additional decrease in CDBG funding of approximately $278,000, or 23%. This resulted in a significant 46% decrease in total real CDBG dollars received over seven years of approximately $551,300. The CDBG entitlement grant of approximately $886,258 shared with non-profits for the fiscal year ending June 30, 2021 is less than the CDBG entitlement grant received in 2008. (Continued) 5  NORWALK REDEVELOPMENT AGENCY, INC. Management’s Discussion and Analysis June 30, 2021 Subsequent Events Relating to COVID-19 On January 30, 2020, the World Health Organization (WHO) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Agency’s financial condition, liquidity, and future operations, and management is actively monitoring the global situation. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Agency is not able to estimate the effects of the outbreak on its results of operations, financial condition, or liquidity for fiscal year 2022. Requests for Information This financial report is designed to provide a general overview of the Agency’s finances for all those with an interest in the finances of the Agency. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director at the Norwalk Redevelopment Agency, 3 Belden Avenue, Norwalk, CT 06850. 6  NORWALK REDEVELOPMENT AGENCY Statement of Net Position June 30, 2021 Governmental Assets Activities Cash $ 722,809 Investments 5,632,848 Grants and accounts receivable 1,190,434 Loans receivable, less allowance of $2,061,045 2,170,828 Other assets 56,681 Total assets $ 9,773,600 Liabilities and Net Position Accounts payable and accrued expenses 977,704 Due to governmental agencies and other third parties 1,773,673 Deferred revenues 1,171,036 Other liabilities 1,672,864 Total liabilities 5,595,277 Restricted for Urban Redevelopment 4,178,323 Total liabilities and net position $ 9,773,600 See accompanying notes to basic financial statements. 7  NORWALK REDEVELOPMENT AGENCY Statement of Activities Year ended June 30, 2021 Net (Expense) Revenue and Changes in Net Assets Primary Government- Program Capital Grants Total Governmental Functions/Programs Expenses Revenues and Contributions Activities Primary government-governmental activities: Operating $ 1,502,997 58,872 1,444,125 - Brookfield development 21,173 21,173 - - Community Development Block Grant (CDBG)-Revolving Loan Fund (RLF) 21,878 21,878 - - CDBG-Non-RLF 1,835,784 3,728 1,832,055 (1) Other programs and City projects 487,753 - 487,615 (138) Total governmental activities $ 3,869,585 105,651 3,763,795 (139) General revenues: Unrestricted investment income 139 Change in net position - Net position-beginning of year 4,178,323 Net position-end of year $ 4,178,323 See accompanying notes to basic financial statements. 8  NORWALK REDEVELOPMENT AGENCY Balance Sheet-Governmental Funds June 30, 2021 Assets Cash $ 722,809 Investments 5,632,848 Grants and accounts receivable 1,190,434 Loans receivable, less allowance of $2,061,045 2,170,828 Other assets 56,681 Total assets $ 9,773,600 Liabilities and Fund Balances Accounts payable and accrued expenses $ 977,704 Due to governmental agencies and third parties 1,773,673 Deferred revenues 1,171,036 Other liabilities 1,672,864 Total liabilities 5,595,277 Fund balances-restricted 4,178,323 Total liabilities and fund balances $ 9,773,600 Reconciliation of governmental fund balances: Total fund balances $ 4,178,323 Reconciling items - Net assets of governmental activities $ 4,178,323 See accompanying notes to basic financial statements. 9  NORWALK REDEVELOPMENT AGENCY Statement of Revenues, Expenditures and Changes in Fund Balance-Governmental Funds Year ended June 30, 2021 Revenues: Other government grants for City projects $ 1,931,740 Federal grants 1,832,055 Program and other income 105,651 Investment income 139 Total revenues 3,869,585 Expenditures: Project outlays 3,869,585 Net changes in fund balances - Fund balances - beginning of year 4,178,323 Fund balances - end of year $ 4,178,323 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balance: Total net change in fund balances-governmental funds - Reconciling items - Change in net position of governmental activities $ - See accompanying notes to basic financial statements. 10  NORWALK REDEVELOPMENT AGENCY Notes to Financial Statements June 30, 2021 (1) Summary of Significant Accounting Policies The Norwalk Redevelopment Agency (Agency), an agent of the City of Norwalk, Connecticut (City) and is defined by the City as an Administrative Department of the municipality. The Agency was established by state statute and City code to oversee the development of the City’s six project areas. The Agency functions autonomously from the City and is managed by a board of five commissioners who are appointed by the Mayor and approved by the Common Council of the City. The Agency prepares its basic financial statements in conformity with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board (GASB) and other authoritative sources identified in Statement on Auditing Standards No. 69; has implemented the financial reporting model, as required by the provisions of GASB Statement No. 34, Basic Financial Statements-and Management’s Discussion and Analysis-for State and Local Governments; and it complies with the requirements of contracts and grants of agencies from which it receives funds. Reporting Entity The Board of Commissioners (Board) is appointed by the Mayor and it has the authority to make decisions, appoint administrators and managers, and significantly influence operations. It also has the primary accountability for fiscal matters. Therefore, the Agency is a financial reporting entity as defined by GASB in its Statement No. 14, "The Financial Reporting Entity." There are no component units included within the reporting entity. Government-wide and Fund Financial Statements The Statement of Net Position and the Statement of Activities are government-wide financial statements. They report information on all of the Agency’s non-fiduciary activities. Governmental activities include programs supported primarily by grants and other intergovernmental revenues. Business-type activities include operations that rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates how other people or entities that participate in programs the Agency operates have shared in the payment of the direct costs. The “Capital grants and contributions" column includes amounts paid by organizations outside the Agency to help meet the operational or capital requirements of a given function. If revenue is not program revenue, it is general revenue used to support all of the Agency's functions. All interfund transactions between governmental funds are eliminated on the government-wide statements. Interfund activities between governmental funds and fiduciary funds would remain on the government-wide Statement of Activities. The fund financial statements provide reports on the financial condition and results of operations for governmental funds. (Continued) 11  NORWALK REDEVELOPMENT AGENCY Notes to Financial Statements (1) Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements use 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 the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements use the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets, current liabilities and fund balances are included on the balance sheet. Operating statements of these funds present net increases and decreases in current assets (i.e., revenues and other financing sources and expenditures and other financing uses). The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available, and it recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable. The expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. The Agency considers all revenues available if they are collectible within 60 days after year end. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are both measurable and available. Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred revenues until related and authorized expenditures have been made. If balances have not been expended by the end of the project period, grantors some times require the Agency to refund all or part of the unused amount. Fund Equity and Net Position The accounts of the Agency are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The fund financial statements in this report consist only of the General Fund due to the nature of the Agency’s activities. (Continued) 12  NORWALK REDEVELOPMENT AGENCY Notes to Financial Statements (1) Summary of Significant Accounting Policies (continued) Fund Equity and Net Position (continued) In the government-wide financial statements, net position is classified in the following categories:  Restricted for Urban Redevelopment– This category represents the balance reported by the Agency which is constrained for specific purposes externally imposed by the U.S. Department of Housing and Urban Development provider for urban redevelopment. When both restricted and unrestricted resources are available for certain expenses, the Agency expends restricted resources first and uses unrestricted resources when the restricted funds are depleted. The Authority adopted the provisions of Governmental Accounting Standards Board Statement #54 (GASB 54) Fund Balance Reporting and Governmental Fund Type which defines the different types of fund balances that the Authority must use for its governmental funds. GASB 54 requires the fund balances to be properly reported within one of the following categories for fund financial reporting purposes:  Nonspendable – fund balance amounts associated with inventories, prepaids, and long- term receivables and payables.  Restricted – fund balance amounts that can be spent only for the specific purposes stipulated by external source providers or enabling legislation.  Committed – fund balance amounts that can be used only for specific purposes determined by a formal action of the highest level of decision-making authority, the Board of Directors.  Assigned – fund balance amounts intended to be used by the Authority for specific purposes but do not meet the criteria to be classified as restricted or committed fund balances.  Unassigned – fund balance amounts remaining for the General Fund that are spendable. The Authority’s committed fund balance reporting is required when funds have been committed at an Authority board meeting. The Authority’s assigned fund balance reporting is required when funds have been assigned by their nature (due to the FAA or for unidentified future capital projects). The Authority’s general policy is to apply expenditures against the applicable fund balances in the following order: nonspendable, assigned, committed, restricted, and unassigned. (Continued) 13  NORWALK REDEVELOPMENT AGENCY Notes to Financial Statements (1) Summary of Significant Accounting Policies (continued) Cash Equivalents and Concentration of Risk The Agency considers cash equivalents to be those investments with original maturities of three months or less. The Agency also maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Agency has not experienced any losses in such accounts, and does not believe it is exposed to any significant credit risk on cash and cash equivalents. Investments Investments, which consist of money market funds, are presented at fair value. Grants and Accounts Receivable and Payable All receivables and payables are reported at their gross value. Receivables are reduced by the estimated portion that is expected to be uncollectible. The Authority establishes an allowance for estimated uncollectible accounts when appropriate. There was no allowance for uncollectible accounts as of June 30, 2021. Loans Receivable Loans receivable, representing the outstanding balance of amounts advanced to individuals or businesses from federal community development grants, are recorded as assets when the advances are disbursed and are reflected net of any applicable uncollectible amounts. Interfund Receivables and Payables Outstanding balances between funds are presented as either due from or due to other funds and are not eliminated in the accompanying financial statements. Program Funds All funds received by the Agency are generally designated for use in the operation of its urban renewal and community development programs. Compensated Absences and Post-Employment Benefits Employees are permitted to accumulate a specified amount of earned but unused sick leave and vacation time, which will be paid to them upon separation from the Agency. These expenditures are recognized in the governmental funds in the current year to the extent they are paid during the year or the vested amount is expected to be paid with available resources. The liability for compensated absences at June 30, 2021 was approximately $163,100. The Agency does not provide any post-employment benefits. (Continued) 14  NORWALK REDEVELOPMENT AGENCY Notes to Financial Statements (1) Summary of Significant Accounting Policies (continued) Budgetary Information Based upon the nature of the operation of the Agency, the Agency is not legally required to adopt a budget. Accordingly, comparative budget analysis has not been presented in these financial statements. Date through Which Subsequent Events Have Been Evaluated Subsequent events have been evaluated through November 30, 2021, which is the date the financial statements were available to be issued. (2) Reconciliation of Government-wide and Fund Financial Statements The Combined Balance Sheet-Governmental Fund Type provides the reconciliation between the fund balance for total governmental funds on the governmental fund balance sheet and the net assets for governmental activities as reported in the government-wide statement of net assets. There were no major reconciling items for 2021. The Combined Statement of Revenues, Expenditures and Changes in Fund Balance- Governmental Funds provides a reconciliation between the net changes in fund balance as shown on the governmental fund statement of revenues, expenditures, and changes in fund balances and the changes in net assets of governmental activities as reported on the government-wide statement of activities. There were no major reconciling items for 2021. (3) Deposits and Investments At June 30, 2021, the carrying amount of the Agency's deposits was approximately $723,000, and their bank balances totaled approximately $1,204,000. The majority of the cash was on deposit with private financial institutions. As of June 30, 2021, the Agency’s deposits with financial institutions were in excess of federal depository insurance limits by approximately $704,000. The Agency’s cash consists of the following amounts at June 30, 2021: Petty cash $ 150 Cash in bank 722,659 Total cash $ 722,809 Custodial credit risk for deposits is the risk that in the event of a bank failure, the Agency’s deposits may not be returned to it, or it will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Agency will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Agency does not have a deposit policy for custodial credit risk. (Continued) 15  NORWALK REDEVELOPMENT AGENCY Notes to Financial Statements (3) Deposits and Investments (continued) The Agency's investments in money market accounts at June 30, 2021 totaled approximately $5,633,000 (of which $250,000 was insured). In the event that a financial institution becomes insolvent and is placed under Federal Deposit Insurance Corporation (FDIC) receivership, this collateral is subject to the FDIC requirements for perfecting security interest under Federal law. In the opinion of the Connecticut State Attorney General, these requirements are met. (4) Receivables, Payables and Deferred Revenue Grants and accounts receivables consist of the following at June 30, 2021: City and federal agencies $ 1,157,276 Other 33,158 Total grants and accounts receivable $ 1,190,434 Due to governmental agencies and other third parties consist of the following at June 30, 2021: Due to developer $ 468,021 Due to Community Development Block Grant (CDBG) 382,583 City and other projects 923,069 Total due to governmental agencies $ 1,773,673 Deferred revenues totaled approximately $1,171,000 as of June 30, 2021. Grant revenues are considered earned when expenditures are incurred and until then are considered deferred revenues. (5) City of Norwalk and Program Funding The Agency receives funding through the City of Norwalk as the City’s administrator of the Community Development Block Grant (CDBG) program. The City’s operating budget also provides funding for salary and benefits of certain Agency staff that perform services directly for the City. The CDBG funding is distributed to U. S. Housing and Urban Development (HUD) qualified programs and services within the City which are recognized as community needs within the City’s Consolidated Plan and are awarded by the Common Council. For the year ended June 30, 2021, the Agency recognized the following revenue: CDBG – Sub Grantee allocation $ 1,569,792 CDBG - Administration 262,263 Other Government Grants for City Projects 1,923,998 Total Non-Agency/CDBG/Sub Grantee Allocations $ 3,756,053 (Continued) 16  NORWALK REDEVELOPMENT AGENCY Notes to Financial Statements (6) Employee Benefit Plan The Agency sponsors a defined contribution pension plan covering substantially all of its employees. The benefits are based on years of service and the accumulation of employer's contribution during years of employment. Contributions and cost are determined at an average of 12 percent of each employee's salary and totaled approximately $83,400 for the fiscal year ended June 30, 2021. (7) Due to/from Related Parties Other assets include net advances due to North Walke Housing Corporation (North Walke) in the amount of approximately $3,000 as of June 30, 2021. North Walke is a separate nonprofit organization, but they are related parties since certain officers and directors of the Agency also serve in the same capacity with North Walke. (8) Federal and State of CT Grants The City awards a portion of its annual CDBG allocation as grants to local organizations through a competitive process and recommended applicants provide various matching funds. Organizations in receipt of these grants received support from an array of public and private sources to provide high quality and innovative programming in service of the community. The Agency worked strategically so that federal funds can attract additional funding and spur private development to meet the needs of the community. A total of approximately $1,840,000 was expended by the Agency on the HUD CDBG program during the year ended June 30, 2021. (9) Risk Management The Agency is exposed to various risks of loss related to torts; theft or damage to, and destruction of assets; errors and omissions for public officials; injuries to employees; and natural disasters. The Agency has obtained insurance coverage to guard against these events which will provide minimum exposure to the Agency should they occur. The Agency continues to carry commercial insurance for all other risks of loss, including business liability coverage. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three years. (10) Commitments and Contingencies Amounts received or receivable from grantor agencies are subject to audit and adjustment by the grantor agencies. Any disallowed costs or claims, including amounts already received by the Agency, could become a liability. In recognition of reasonable cost standards, the Board recently took action to limit the amount of funding and implement cost containment protocols for legal expenses for ongoing litigation matters. (Continued) 17  NORWALK REDEVELOPMENT AGENCY Notes to Financial Statements (10) Commitments and Contingencies (continued) The Agency is involved in various litigation matters. Management and counsel are either unable to determine the effect on the financial statements of these matters as their outcomes are undeterminable as of this report, or the effects are not considered to be material. (11) Implementation of Future GASB Pronouncements The GASB has issued several pronouncements that have effective dates that may impact future financial presentations. Management has not currently determined what, if any, impact implementation of the following statements may have on the financial statements:  Statement No. 87, Leases. The requirements of this statement are effective for fiscal years beginning after June 15, 2021, and all reporting periods thereafter.  Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. The requirements of this statement are effective for reporting periods beginning after December 15, 2020. Earlier application is encouraged.  Statement No. 91, Conduit Debt Obligations. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021. Earlier application is encouraged.  Statement No. 92, Omnibus 2020. The requirements of this Statement are effective as follows: o The requirements related to the effective date of Statement 87 and Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon issuance. o The requirements related to intra-entity transfers of assets and those related to the applicability of Statements 73 and 74 are effective for fiscal years beginning after June 15, 2021. o The requirements related to application of Statement 84 to postemployment benefit arrangements and those related to nonrecurring fair value measurements of assets or liabilities are effective for reporting periods beginning after June 15, 2021. o The requirements related to the measurement of liabilities (and assets, if any) associated with asset retirement obligations in a government acquisition are effective for government acquisitions occurring in reporting periods beginning after June 15, 2021. Earlier application is encouraged and is permitted by topic.  Statement No. 93, Replacement of Interbank Offered Rates. The requirements of this Statement, except for paragraphs 11b, 13, and 14 are effective for reporting periods beginning after June 15, 2020. The requirement in paragraph 11b is effective for reporting periods ending after December 31, 2021. The requirements in paragraphs 13 and 14 are effective for fiscal years periods beginning after June 15, 2021, and all reporting periods thereafter. Earlier application is encouraged. (Continued) 18  NORWALK REDEVELOPMENT AGENCY Notes to Financial Statements (11) Implementation of Future GASB Pronouncements (continued)  Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.  Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The requirements of this Statement are effective immediately.  Statement No. 96, Subscription-Based Information Technology Arrangements. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.  Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. The requirements of this Statement are effective as follows: o The requirements in (1) paragraph 4 of this Statement as it applies to defined contribution pension plans, defined contribution OPEB plans, and other employee benefit plans and (2) paragraph 5 of this Statement are effective immediately. o The requirements in paragraphs 6–9 of this Statement are effective for fiscal years beginning after June 15, 2021. o All other requirements of this Statement are effective for reporting periods beginning after June 15, 2021. Earlier application is encouraged and is permitted by specific requirement as follows: Paragraph 4 of this Statement as it applies to arrangements other than defined contribution pension plans, defined contribution OPEB plans, or other employee benefit plans. Paragraphs 6–9 of this Statement and the supersession of the remaining requirements of Statement 32 (as detailed in paragraph 3 of this Statement). (12) Subsequent Events relating to COVID-19 In March 2020, the World Health Organization classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Agency’s financial condition, liquidity, and future operations, and management is actively monitoring the global situation. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Agency is not able to estimate the effects of the outbreak on its results of operations, financial condition, or liquidity for fiscal year 2022. 19  580 Johns Pass Avenue Madeira Beach, FL 33708 USA www.solakiancpa.com 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 To the Board of Commissioners Norwalk Redevelopment 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 governmental activities, each major fund, and the aggregate remaining fund information of Norwalk Redevelopment Agency (Agency) as of and for the year then ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements, and have issued our report thereon dated November 30, 2021. 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 audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion 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. (Continued) 20 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Agency's financial statements are free of 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. 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 result 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. November 30, 2021 21  NORWALK REDEVELOPMENT AGENCY Schedule of Revenues, Expenditures and Changes in Fund Balance-Budgetary Comparison Year ended June 30, 2021 Actual-Budgetary Basis Budgeted Amounts CDBG Improvement Total Original Final Revenues: Other government grants for City projects $ - 1,931,740 1,931,740 1,931,740 1,931,740 Federal grants 1,832,055 - 1,832,055 1,832,055 1,832,055 Program income 25,606 80,045 105,651 105,651 105,651 Investment income 1 138 139 139 139 Total revenues 1,857,662 2,011,923 3,869,585 3,869,585 3,869,585 Expenditures: Project outlays 1,857,662 2,011,923 3,869,585 3,869,585 3,869,585 Revenues greater (less) than expenditures - - - - - Fund balance - beginning of year 669,877 3,508,446 4,178,323 4,178,323 4,178,323 Fund balances - end of year $ 669,877 3,508,446 4,178,323 4,178,323 4,178,323 See accompanying notes to basic financial statements. 22  580 Johns Pass Avenue Madeira Beach, FL 33708 USA www.solakiancpa.com Independent Auditor’s Report On Compliance For Each Major Program And On Internal Control Over Compliance Required By The Uniform Guidance To the Board of Commissioners Norwalk Redevelopment Agency Report on Compliance for Each Major Federal Program We have audited Norwalk Redevelopment Agency’s (Agency) compliance with the types of compliance requirements described in the 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, 2021. The Agency’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants 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 Principles, 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 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, 2021. (Continued) 23 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. November 30, 2021 24  NORWALK REDEVELOPMENT AGENCY Schedule of Expenditures of Federal Awards Year ended June 30, 2021 Pass-Through Agency CFDA Program Title Number Expenditures U.S. Department of Housing and Urban Development (HUD): Community Development Block Grants- Passed through the City of Norwalk 14.218 $ 1,839,597 Total expenditures of federal awards $ 1,839,597 Notes to the Schedule of Expenditures of Federal Awards Note 1 – Basis of Accounting This schedule is prepared on the same basis of accounting as Norwalk Redevelopment Agency’s (Organization) financial statements. The Organization uses the accrual basis of accounting. Note 2 – Program Costs The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Organization’s portion, may be more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Subrecipients Of the federal expenditures presented in the schedule, Norwalk Redevelopment Agency provided federal awards to subrecipients as follows: Catalog of Amount Federal Domestic Provided to Program Title Assistance Number Subrecipients Housing 14.218 $ 466,439 Public Facilities 14.218 $ 356,791 Public Services 14.218 $ 135,408 25  NORWALK REDEVELOPMENT AGENCY Schedule of Findings and Questioned Costs - Federal Awards Year ended June 30, 2021 Section I – Summary of Auditor’s Results 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 Federal Awards Internal control over major programs: • Material weakness(es) identified? ______ yes X no • Significant deficiency(ies) identified? ______ yes X none reported Type of auditor's report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with Section 200.516 of the Uniform Guidance? ______ yes X no Identification of major programs: CFDA Number(s): 14.218 - HUD Community Development Block Grant Dollar threshold used to distinguish between type A and type B programs: $ 750,000 Auditee qualified as low-risk auditee? __X___ yes no Section II – Financial Statement Findings No findings or questioned costs are reported relating to financial statements audit. Section III– Federal Award Findings and Questioned Costs No findings or questioned costs are reported relating to Federal award programs. 26 Norwalk Redevelopment Labor Contract Extension Estimate for Jan-June 2022 January 1/6/2021 NRA Urns Extra not Contract Billed 1/11/2021 Christmas Remove 1/12/2021 Christmas Remove 1/13/2021 Christmas Remove 1/14/2021 Christmas Remove Dumping Dumping 1/13 Dumping Dumping 1/14 February 2/24/2021 Clean up and ready baskets for pick up 2/24/2021 Clean up and Store Urns until Spring March Work 3/16/2021 Xmas Baskets return 3/19/2021 Clean up on West Ave , Heritage Wall and Maritime Aquarium 3/27/2021 Clean up Highway Ramps and Dump April 4/19/2021 Mowing Weed Whacking Blowing All 4/19/2021 Continue Clean up West Ave Start Weed Edge Trim 4/20/2021 West Ave Weeding/Edging/Mulching All 4/20/2021 Wilton Ave 4/20/2021 Mall Island - billed separately 4/20/2021 Wilton Ave Cross St 4/21/2021 Wilton Ave Cross St 4/26/2021 Mowing Weed Whacking Blowing All May 5/3/2021 Lillian August Clean up and Maintain Island 5/3/2021 Mowing Weed Whacking Blowing All 5/7/2021 Aquarium Island Maint. 5/10/2021 Mowing Weed Whacking Blowing All 5/17/2021 Mowing Weed Whacking Blowing All 5/25/2021 Mowing Weed Whacking Blowing All 5/26/2021 Prep Pots for Plants Patio 5/28/2021 Pocket Park Maintenance 5/31/2021 Mowing Weed Whacking Blowing All June 6/5/2021 Heritage Wall Maintenance 6/7/2021 Mowing Weed Whacking Blowing All 6/7/2021 Heritage Wall Maintenance 6/9/2021 Take Delivery Baskets and 27 Urns 6/11/2021 Setting up Urns 6/12/2021 Placing the Urns at locations 6/14/2021 Mowing Weed Whacking Blowing All 6/21/2021 Mowing Weed Whacking Blowing All 6/24/2021 Maritime Center & City Island Maintenance 6/28/2021 Mowing Weed Whacking Blowing All 6/29/2021 Weed Control 6/28/2021 Sidewalks Wall St From Mid to Late May through June 2022 Watering Estimate based on Average yrs We will include Watering 17 times Contract Extension Cost for Jan-Jun 2022 $44,100.00 Paid Monthly $7,350.00 1/1/2022 $7,350.00 2/1/2022 $7,350.00 3/1/2022 $7,350.00 4/1/2022 $7,350.00 5/1/2022 $7,350.00 6/1/2022 $7,350.00 Total $44,100.00 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org TO: Norwalk Redevelopment Agency Loan Committee FROM: Redevelopment Staff DATE: January 11, 2022 RE: 4 Gwendolyn Street Loan Review ************************************************************************ Loan Overview The property located at 4 Gwendolyn Street, Norwalk, CT 06851 is a 1,400 square foot, single family home built in 1955(See Attachment A ). After purchasing the house in 2018, the owner received a $10,000 emergency loan from the Norwalk Redevelopment Agency to fix a leaking roof. That owner recently refinanced her original mortgage, student loans and other debts, resulting in the repayment and release of the Redevelopment loan written in 2018. The owner is looking to make major improvements to her first floor bathroom and minor improvements to her upstairs bathroom. Depending on bid results, the owner may be willing to increase scope of work and take on additional debt to include first floor bathtub conversion to a shower. Preliminary staff review estimates $15,000 - $20,000 of required work depending on owners decision to replace existing bathtub and price of tile selected as the major fluctuations in pricing. Contractor availability during the pandemic may also contribute to fluctuating prices. Maximum loan affordability is described below in the underwriting structure, as well as for a high end estimate. Location Details The home is located at 4 Gwendolyn Street, Census Tract 435, which is a non-Low Moderate Income Census Tract. The house is occupied by a low income family. Image 1 – Image of Front of House Image 2 – Map of Location 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org Image 3 – First Floor Bathroom Image 4 – Second Floor Bathroom Scope of Work The owner has currently only expressed interest in renovating her two bathrooms. Work includes: First Floor Bathroom • Remove and replace wall and floor tile. • Remove and frame in existing bathroom window (Requires exterior siding work). • Install new vanity and fixtures. • Replace leaking diverter and shower faucets (may require additional plumbing work once shower wall can be opened). • Sheetrock repair and paint. • Potential removal of bathtub and conversion to shower. • Installation of sliding glass shower/bath door. • Potential relocation of HVAC vent currently in inconvenient wall location. Second Floor Bathroom • Minor sheetrock and trim repairs • Repainting of bathroom • Replacement of medicine cabinet/mirror • Towel bar replacement. • Install new vanity lights and bathroom fan. • Install new light switches. 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org Bidding Process for Proposed Loan Due to the timing of the upcoming Agency meeting, approval of the loan is being requested before going out to bid. In the event that pricing comes back higher than expected, items will be eliminated from the scope of work so that the loan values presented are not exceeded. The project will be posted in the Norwalk Hour as a public bid invitation as well as sent to an email list of qualified contractors. Three bids will be required and the owner will be obligated to select the lowest, reasonable bid. A low bid above the owner’s affordability described in our guidelines and underwriting is not expected. Underwriting and Loan Structure The underwriting was conducted using the current Residential Rehabilitation Program’s guidelines. The presented structures are based on our maximum 30 year loan and 2% interest rate. Owner has indicated that she wishes to keep payments as low as possible using the 30 year term, but does anticipate on making additional payments to pay down the loan faster. There are no penalties for early payments. Maximum Amortized Loan: Loan Principal $31,000 Interest rate: 2% Term: 30 Years Monthly Payment: $114 The current guidelines allow for a Combined Loan to Value ratio of 85% and a Debt to Income Ratio of 40%. As structured, the combined loans will meet the guidelines as outlined below: cLTV: 82% (85% maximum allowed DTI Ratio: 40% (40% maximum allowed) High End Estimate Amortized Loan: Loan Principal $20,000 Interest rate: 2% Term: 30 Years Monthly Payment: $74 The current guidelines allow for a Combined Loan to Value ratio of 85% and a Debt to Income Ratio of 40%. As structured, the combined loans will meet the guidelines as outlined below: cLTV: 79.9% (85% maximum allowed DTI Ratio: 39.5% (40% maximum allowed) 3 Belden Avenue, Norwalk, CT 06850 • 203-854-7810 • norwalkredevelopment.org The proposed loans represent underwriting following the current Residential Rehabilitation Program’s underwriting guidelines. The loan will meet guideline criteria as long as loan remains under $31,000. ACTION: Approve Residential Rehabilitation Loan for 4 Gwendolyn Street (Owner Hillary Pollard) and authorize Executive Director, Brian T. Bidolli, to execute contracts for value not to exceed $31,000. Attachments: A: Property Card B: Underwriting Sheet for Maximum Loan C: Underwriting Sheet for High End Estimate Loan D: Additional Photos 4 GWENDOLYN ST Location 4 GWENDOLYN ST Mblu 5/ 3A/ 26/ 0/ Acct# 16150 Owner POLLARD HILLARY Assessment $248,440 Appraisal $354,910 PID 16150 Building Count 1 Current Value Appraisal Valuation Year Improvements Land Total 2018 $183,310 $171,600 $354,910 Assessment Valuation Year Improvements Land Total 2018 $128,320 $120,120 $248,440 Owner of Record Owner POLLARD HILLARY Sale Price $419,000 Co-Owner Certificate Book & Page 8714/339 Address 4 GWENDOLYN ST Sale Date 07/26/2018 Instrument 00 NORWALK, CT 06851-0000 Ownership History Ownership History Owner Sale Price Certificate Book & Page Instrument Sale Date POLLARD HILLARY $419,000 8714/339 00 07/26/2018 YEE ANDREW M & MCPHERSON YEE ANIKA D $355,000 4661-201 4661/201 11/25/2002 BRYAN RODGER W & SUSANNAH C $150,000 3378/13 07/28/1997 MATHER ELSIE $150,000 3378/13 07/28/1997 MATHER WILLIAM F * ELSIE $0 0/0 Building Information Building 1 : Section 1 Year Built: 1955 Living Area: 1,392 Replacement Cost: $241,191 Building Percent Good: 76 Replacement Cost Less Depreciation: $183,310 Building Attributes Field Description Style Cape Cod Model: Residential Grade C Building Photo Stories 1.50 Occupancy 1 Exterior Wall 1 Shaker Vinyl Exterior Wall 2 Roof Structure: Gable Roof Cover Asphalt Shingl Interior Wall 1 Drywall Interior Wall 2 Interior Floor 1 Hardwood Interior Floor 2 (http://images.vgsi.com/photos/NorwalkCTPhotos//00\00\49/65.jpg) Heat Fuel Oil Heat Type Forced Air Building Layout AC Type Central Bedrooms 4 Full Baths 2 Half Baths 0 Extra Fixtures 0 Total Rooms 7 Bath Style Average Kitchen Style Average Extra Kitchens 0 Frame Wood Insulation Typical Bsmt Garage 1 (ParcelSketch.ashx?pid=16150&bid=16150)  Foundation Conc Block Building Sub-Areas (sq ft) Legend FBM Area 528 Gross Living Code Description Area Area FBM Quality 3 BAS First Floor 984 984 Fireplaces 0 FHS Finished Half Story 816 408 # of Heat Systems 1.00 BGR Basement Garage 456 0 Central Vac BSM Basement 528 0 Solar HW RWD Wood Deck 192 0 Electrical Typical 2,976 1,392 Heat Percent 100 Extra Features Extra Features Legend No Data for Extra Features Land Land Use Land Line Valuation Use Code 101 Size (Acres) 0.14 Description Single Family Frontage Zone B Depth Neighborhood 0134 Assessed Value $120,120 Appraised Value $171,600 Outbuildings  Outbuildings Legend No Data for Outbuildings Valuation History Appraisal Valuation Year Improvements Land Total 2020 $183,310 $171,600 $354,910 2019 $183,310 $171,600 $354,910 2018 $183,310 $171,600 $354,910 Assessment Valuation Year Improvements Land Total 2020 $128,320 $120,120 $248,440 2019 $128,320 $120,120 $248,440 2018 $128,320 $120,120 $248,440 (c) 2022 Vision Government Solutions, Inc. All rights reserved. Underwriting Worksheet Date: 1/7/2022 Borrower(s): Photo: Rehab Case #: TBD Hillary Pollard Owner-Occupied Address: # Units: 1 4 Gwendolyn Street Property Value: $515,000 Existing Loans: $391,424 Max Proposed Property Address: Loan: $31,000 Same cLTV: 82.0% Guidelines allow up to 85% A. GROSS MONTHLY INCOME Borrower Co-Borrower Totals 2020 AGI 1 Base 7,195 7,195 $39,724.00 2 Overtime - AGI does not 3 Pension - reflect new job 4 Dividend/Interest - AMI 5 Net Rental (= 75% gross rent) - 61% 6 Other (VA Disability) 500 500 4 Person Family Total Gross Monthly Income: $7,695 $0 $7,695 B. MONTHLY CREDIT LIABILITIES Creditor Type Payment Balance As Agreed: 1 MTT Bank Loan 370 14,388 2 Homedepot Credit 29 1,500 3 USAA Credit 49 2,662 4 5 6 7 8 Total Liabilities: $448 C. MONTHLY HOUSING EXPENSES D. ASSETS Forbearance loans only PITI Current Proposed 1 Savings 1 First Mortgage Payment 1,872 1,872 2 Savings 2 Rent 3 Savings 3 Property Taxes 644 644 4 Checking 4 Homeowner's Insurance 5 Checking 5 Mortgage Insurance - - 6 Retirement 6 Common Charges - - 7 Retirement 7 Proposed Loan(s): 8 Retirement Principal: $31,000.00 9 Other Term: 360 10 Other Interest Rate: 2% 11 Other Payment: $114 12 Other Total Monthly Housing Expense: $ 2,515 2,630 Total Assets: $ - E. MONTHLY EXPENSE RATIOS Current Housing Proposed Housing Housing to Income Ratio: $2,515 32.7% $2,630 34.2% $7,695 $7,695 Debt to Income Ratio: $2,963 38.5% $3,078 40.0% Liabilities & Housing Expenses/Income $7,695 $7,695 Guidelines allow up to 40% for amortized loans (Proposed Housing) & 45% for forbearance loans (Current Housing Costs) F. UNDERWRITING COMMENTS: 689 Credit Score Underwriting example based on maximum principle allowed by guidelines. tjc/my documents/rehab documents/underwriting Rev 5-06 Underwriting Worksheet Date: 1/7/2022 Borrower(s): Photo: Rehab Case #: TBD Hillary Pollard Owner-Occupied Address: # Units: 1 4 Gwendolyn Street Property Value: $515,000 Existing Loans: $391,424 Max Proposed Property Address: Loan: $20,000 Same cLTV: 79.9% Guidelines allow up to 85% A. GROSS MONTHLY INCOME Borrower Co-Borrower Totals 2020 AGI 1 Base 7,195 7,195 $39,724.00 2 Overtime - AGI does not 3 Pension - reflect new job 4 Dividend/Interest - AMI 5 Net Rental (= 75% gross rent) - 61% 6 Other (VA Disability) 500 500 4 Person Family Total Gross Monthly Income: $7,695 $0 $7,695 B. MONTHLY CREDIT LIABILITIES Creditor Type Payment Balance As Agreed: 1 MTT Bank Loan 370 14,388 2 Homedepot Credit 29 1,500 3 USAA Credit 49 2,662 4 5 6 7 8 Total Liabilities: $448 C. MONTHLY HOUSING EXPENSES D. ASSETS Forbearance loans only PITI Current Proposed 1 Savings 1 First Mortgage Payment 1,872 1,872 2 Savings 2 Rent 3 Savings 3 Property Taxes 644 644 4 Checking 4 Homeowner's Insurance 5 Checking 5 Mortgage Insurance - - 6 Retirement 6 Common Charges - - 7 Retirement 7 Proposed Loan(s): 8 Retirement Principal: $20,000.00 9 Other Term: 360 10 Other Interest Rate: 2% 11 Other Payment: $74 12 Other Total Monthly Housing Expense: $ 2,515 2,589 Total Assets: $ - E. MONTHLY EXPENSE RATIOS Current Housing Proposed Housing Housing to Income Ratio: $2,515 32.7% $2,589 33.6% $7,695 $7,695 Debt to Income Ratio: $2,963 38.5% $3,037 39.5% Liabilities & Housing Expenses/Income $7,695 $7,695 Guidelines allow up to 40% for amortized loans (Proposed Housing) & 45% for forbearance loans (Current Housing Costs) F. UNDERWRITING COMMENTS: 689 Credit Score Underwriting example based on High End Estimate tjc/my documents/rehab documents/underwriting Rev 5-06 First Floor Photos Second Floor Photos