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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 05-23-2019APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY May 23, 2019 MEMBERS PRESENT: Chairman Michelle Soderberg, Commissioners Jeff Kulaszewicz, and Matthew Plec ABSENT: Commissioners Marty McCarthy and Robert Huddleston STAFF PRESENT: HRA Manager Jim Barnes and Office Support Representative Tina Beckfeld OTHERS PRESENT: Council Member Jim Davis, Jody Boedigheimer of Grace Management, and Megan Sand Carr from Sand Companies 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 p.m. HRA Manager Jim Barnes welcomed and introduced Council Member Jim Davis who will now be serving as the liaison between the HRA and the City Council. 2. PUBLIC FORUM Chair Soderberg opened and closed the Public Forum as there was no one present to speak. 3. CONSENT AGENDA A. Approve HRA Meeting Minutes for April 25, 2019. B. Plymouth Towne Square. Accept Monthly Housing Reports. C. Vicksburg Crossing. Accept Monthly Housing/Marketing Reports. D. HRA Funded Rehabilitation Program. Approve Procedural Guide changes. MOTION by Commissioner Kulaszewicz, seconded by Commissioner Plec, to approve the consent agenda. Vote. 3 Ayes. MOTION passed unanimously. 4. NEW BUSINESS A. HRA First Time Homebuyer Program (FTHB). Procedural Guide Changes. HRA Manager Barnes gave an overview of the staff report. Approved Minutes Plymouth Housing and Redevelopment Authority May 23, 2019 Page 2 Commissioner Kulaszewicz asked for clarification of page two, second paragraph, of staff report 4A regarding the Metropolitan Council current list price of an affordable home purchase price of $234,500 for a family at 80% of the Area Median Income (AMI) – less than half of the median home price in Plymouth. HRA Manager Barnes noted $234,500 is not less than half of the median home price in Plymouth. Commissioner Kulaszewicz asked if the home must be priced at $234,500. HRA Manager Barnes answered the Metropolitan Council purchase price figure was given as a reference to what they believe is affordable. Each buyer’s financial situation varies. The HRA does not put a limit on the price of a home. The HRA relies on the qualifications determined by the first mortgage lender. Council Member Davis asked if the HRA FTHB loan is the total down payment or supplemental. HRA Manager Barnes stated the HRA requires the FTHB to contribute at least $1,000. If the buyer first mortgage requires 3% down payment, the HRA will pay 1.5% and the FTHB the remaining 1.5%. Because of the statutory requirements we also have mortgage principal reduction, which in theory is the down payment. Chairman Soderberg asked what debt was counted in the debt to income ratio (DTI). HRA Manager Barnes replied all debt excluding revolving credit card debt or a loan payment that will be paid off in six to eight months. Commissioner Plec noted that 45% DTI is still lower than the 50% limit used by the Minnesota Housing Finance Agency. Commissioner Kulaszewicz asked if the HRA Executive Director could still grant a waiver increasing the debt to income ratio. HRA Manager Barnes answered yes. Commissioner Kulaszewicz stated the prices of homes continue to rise in Plymouth but incomes cannot keep up. In recent years funds have been transferred out of the FTHB program because they were not being used. HRA Manager Barnes agreed the program has not be fully utilized in recent years, but by making the requested changes staff hopes to see more interest in the program. MOTION by Commissioner Plec, seconded by Commissioner Kulaszewicz to approve Approved Minutes Plymouth Housing and Redevelopment Authority May 23, 2019 Page 3 the proposed changes to the First Time Homebuyer Program Procedural Guidelines. Vote. 3 Ayes. MOTION approved unanimously. 5. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 7:14 p.m.