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HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 06-28-1976June 28, 19f8 - I. Roti Call II. Minutes of May 24, 1976 III. New Business A. Section 8 Application and 0*fir Housing Issues I.Y. Adsourn*nt - CITY'OF PLYMOUTH 3025 HARBOR LANE, PLYMOUTH, MINNESOTA 55441 TELEPHONE 1612) 559.2800 0 TE: June 25, 1976 M E . O TO: Housing and Redevelopment Authority Commissioners FROM: Charles E. Di.11eeud, Director of Planning and Community Developmen(by. SUBJECT: Section 8 Application and Other Housing Issues The Board, at its last meeting, directed Staff to prepare an application to HUD for Plymouth to administer a local program for Existing Section 8 leased housing. Out memorandum prior to that meeting briefly expTl Rn—R-the mechanics of the Section 8 program and how a local existing housing program works. On Thursday, June. 17, a City Staff person hand -carried two applications requesting 50 units of existing Section 8 housing for the. City of Plymouth to the HUD office-. One application requested 50 units of "recently completed housing", i.e. apartment units available for occupancy that are six years old or less, and one application was for 50 units of older housing over six years old. The bulk of Plymouth's apartment stock is less than six years old and as HUD provides a higher rental rate allowance for newer construction, it was suggested by HUD representatives that the. City submit the two applications.. It should be noted that if one application is approved, the other would be discarded. Indications are that the City would be notified within three weeks whether or not their application is approved. As a part of the application submittal, the HUD legal office also requires the submittal of an organizational transcript which essentially provides HUD with the "proof" that the City Council followed all the state require- ments in establishing an HRA. The HUD legal office specifies that originals with original signatures be provided which necessitates HRA members sign again the necessary documents. These documents will be available at the June 28 meeting for signing. HUD also requires the submittal of the following: 1) How the Section 8 program will be administered, 2) a budget for the program, 3) equal opportunity assurances and 4) a resolution by the HRA approving Section 8 participation. The first two items may be submitted at a later date should the MRA's application be approved while the latter two items will be available for HRA action at its June 28 meeting. In late May of 1976, the City Staff conducted a telephone survey to determine present rental rates and vacancy rates for all the apartment buildings in Plymouth. Utilizing HUD's Section 8 rental rate schedule plus a 105 allowance factor as per the latest Section 8 regulations, it was determined that approximately 387 units of the 2,082 apartment units in Plymouth would qualify inasmuch as their present rents were below the current Section 8 rental rates for the Hennepin County area. Present vacancy rates in the City, however, are very low and our survey indicates that presently there are only 2 vacant qualifying units in the City. While no survey was conducted to determine h.w many persons currently renting a "qualifying" apartment unit in Plymouth are also within the income range which would make them eligible recipients of . Section 8 assistance, it can be pres;ciined that there may be several persons who may well qualify. This being the case, such persons could stay in their present apartments and receive Section 8 assistance. In several communities with a past track record in this area, as much as 50% of their Section 8 persons were already placed, i.e. they got assistance while staying in their present apartments. Of some surprise to Staff was HUD's apparent receptiveness to Plymouth's application. If the cooperation and positive encouragement of the HUD Staff to date is any indica- tion, our chances for funding directly by HUD may be better than we first concluded. We shall knoww more by the July HRA meeting date. Also of NRA interest is the recent meeting of three HRA Commissioners and Plymouth Staff with Mr. Boland, Mr. Short and three Metro Council Committee Chairpersons. Among other discussions at that meeting, the Metro Council representatives mentioned several approaches to local low/moderate income housing produciton that the Plymouth HRA may wish to consider --when appropriate. A brief description of housing approaches suggested includes: HRA Shared Marketing It was noted that matching eligible renters to eligible Section 8 units has proven to be troublesome. Where Plymouth may have eligible Section 8 units but difficulty in finding eligible families to rent the units, Minneapolis or Bloomington may have the eligible renters but not enough Section 8 units available. It was suggested that the respective HRA's might rigorously "cross market" each other to effectively pool respective supplies and demands. It should be noted that Plymouth Staff has anticipated such a situation and has proposed in our Section 8 application to market available Section 8 contracts outside of Ply- mouth. Our prime interest here, of course, is to reach eligible renters who are employed by Plymouth industry but reside elsewhere. Any help we can receive from anywhere to accomplish this intent will benefit our program. Bloomington's "Add-on Subsidy" A number of area communities have looked at this concept but Bloomington is the only community in which we know it has been executed. Essentially, this approach involves use of local tax dollars to either run a rental subsidy program similar to Section 8 or to use local tax dollars in tandem with Section 8 funds to expand either the sub- sidy-size, ub- sidysize, or the pool of eligible Section 8 units, or both. In the first case, the local community appropriates ad valorem tax dollars to the HRA to pay rent subsidies and administrative costs on a formula similar to that of the Section 8 program. Obviously a lot of "red tape" is overcome, but the cost to the community can be very high --as much as $1,200 per units subsidized per year if Section 8 program formats are paralleled. Of course, the local option would be available to reduce the available size of per unit subsidy. The question would soon be asked by the Metro Council if a local subsidy program at less than Section 8 subsidy sizes would qualify a community as providing "subsidized units". Staff believes we would quickly find that the size of subsidy is an integral component of the definition of "subsidized unit" held by the Metropolitan Council. The second case of "add-on" uses local ad valorem dollars to "fatten" the Section 8 program by increasing the number of units eligible. As the HRA knows, Section 8 subsidies can only be applied to units renting at certain maximum market rental metes. If the pool of eligible units can be artificially expanded, increased program volume is possible. A local HRA may use local dollars to "write down" the rent structure to whatever the Section 8 maximummay be., i.e. for $260 per month but the maximum Section from local fumids may pay the project owner units then become "artificially eligible with success. Housing Rehabilitation suppose apartments in a.local project rent 8 rental rate is $250 per month. The HRA, the extra $10 per unit per month and the or Section. Bloomington has done this Staff is somewhat perplexed by this topic coming up at the subject meeting within the context of meeting subsidized housing goals. We have been firmly advised that rehabili- tated housing units o unt toward the Metropolitan Council's "quota" of sub- sidized unit product o'oio'Toca communities. On the other hand, rehabilitation is a method of enhancing the lower cost housing resource of the community and surely is consistent with the other Metropolitan Council Housing Statement --Policy 31. Upon those limitations,housing rehabilitation, regardless of the technique used, involves grants, loans or direct HRA contracted construction projects to bring existing housing units up to levels of "safe, decent and sanitary" housing. Such levels are established by the prescriptions of local building, electrical and mechanical codes,lus local housing code. The concept does not usually create many housing units Out -Toes upgrade existing units without substantially increa—Ung housing cost to the occupant. The Minnesota Housing Finance Agency operates programs providing local communities low interest loan funds and grant funds to assist property owners in the rehabilitation of substandard properties. It would appear that Plymouth could benefit from a rehabilitation program. There are substandard units in several of our older neighborhoods. Land (or Lot) Write Down Primarily through tax foreclosures, local municipalities often become the owners of scattered land parcels throughout the community. In addition, most municipalities have an inventory of parcels pruchased by it or dedicated to it for street, storm water holding or park purposes that could represent excess or no longer required City ownership. An indirect housing cost subsidy can be realized by City/HRA coopera- tion in making such scattered sites available for construction of housing at a cost significantly discounted from "market". When such a program is well designed to avoid "windfall" profits to land purchasers, a locally "funded" program of subsi- dized housing can be accomplished. We are certain that Plymouth now owns scattered parcels that could act as a resource base for such a program. In summary, it should be understood that there are any number of possible approaches to provision of low -moderate income housing, but few if any to true low -moderate cost housing. The difference must be made up from one r another form of subsidy State, Federal or local tax dollars) applied in most ,y fashion that will reduce the "gap" between income and cost. Staff is hesitant to recommend that the HRA dive" into any production venture until we know our market and can adequately reflect upon alternative strategies (and the cost/benefits of each) by way of our Housing Element scheduled for completion around the first of the year. Our Section 8 appli- cation is certainly a positive move toward "production". Should we not receive approval, joining the Metro HRA still remains an option. ATTACHMENTS: 1. Section 8 Application 2. EO Assurance of Compliance 3. EEO Certification 4. Assurance of Compliance with Civil Rights Act of 1968 6 s _ Q.. JUN 1576 r 22 300 Metro Square. AuUdistg. 7th great and Robert Stet. Saint Pout, Minnesota 55101 t1 Ri2, 227- 9421 May 28, 1976 James G. Willis City Manager City of Plymouth 3025 Harbor Lane Plymouth, Minnesota 55411 RE: Subdivision Feasibility Analysis Application Mission. Hills, ''Plymouth Metropolitan Council Referral File No. 3532. Dear Mr.. Willis: V PIease.refer to the attached explanation of the Metropolitan Coun_-fl's responsibilirl to review Department of Housing and Urban Development Housing applications. The Council has been forwarded such an application for the project ident+fied above. A copy of the. application., which provides further details, is enclosed. Thank you. Sincerely, METROPOUTA COUNCIL Fhn. Boland hatrmsn 1S: es Enclosures cc: Robert Short, Metropolitan Council District 11 a Agency Crested. to Coordinate the Pion dng and Development of the Twin Cities Metropolitan Area Comprising: Moks County 0 Carver County 0 Dakota County 0 Hennepin County 0 Ramsey County 0 seott County 0 Washington County C3 METROPOLITAN COUNCIL Suite 300 Metro Square Building, Saint Paul, Minnesota 55101 227-9421 Feasibility The Metropolitan. Council is required by federal law and regulations to review certain specified applications for fed( loans, grants, or other assistance. One of.the many types of applica:fons which the Council reviews is Department of Housing and Urban Development Applications for Subdivision Feasibility Analysis, Form No. 2250. This application is submitted to the local. area HUD office .by a developer as a preliminary step in securing a guarantee from HUD that a future buyer will be able to receive federal mortgage insurance because the property to be pur- chased will havee been determined to be in accordance with federal. standards. Such applications are forwarded to the,Council by the Minnesota. Area Office of HVD for comment concerning: 1. "....the consistency of the. proposed project with...areawide development plans." 2. "identification of major environmental concerns." The Council must complete such a review and raturn it to the HUD office. within 30 days. The ultimate purpose of this particular notification and review process is to encourage the coordination of federal and federally assisted housing programs with regional planning to facilitate orderly growth of local areas. This project will be reviewed in accordance with procedures of the Office of Manage- ment and Budget which require that the Council notify potentially affected units of government, environmental commissions, and human rights commissions, inform them that such review is taking place, and invite questions or comments. These comments will be incorporated into the review and relayed to HUFD. If you have questions, please call the Metropolitan Council Housing Staff at 227-9421. U. S., OLPARTMENT OF HOUSING ARD URBAN DEVECOPWINT FEDERAL HOMING AOai'iNtS.TRATION e: Mlss4a ::est lfevrlo t tit Cosa -m- F$treetWrew FHA Filet 1Q5$ E_ Myrata Alun_ SuEiivisi Naar: t'issi:+^ ifI* Tract Number: crit or county Stnee Zip Code Phone: Loeoiian. f-nt_Mrle+ Zafthp:y i :spr+..n or r{rro Code jaf r RA f gf t Mco h i„3:tte+'"Ctlort frith 35th Ave. APPLICATION FOR. SUBDIVISION FEASIBILITY ANALYSIS METROPOLfTAN COUNCILAfeasibilityanalysisofthisproposalisrequestedandthefollowingexhibitsweenclosed: REFERRAL E) Location Mop Optional information submitted PILE NO. 35 Preliminary Subdivision Plan Soils Report 0 Topographic data Preliminv, Grading Plan. Signed FHA Form 2010 Other GENERAL 114FORMATION: 1. Sponsor •s 0 Lmnd.Owner [] Option Holder 10. Is Tentative Map approved by Local Authorities.' Q Yes Nos2. Si:e of this Parcel __1t3_< perp 3. Number of Lots.: 04 11. la plat recorded? esYY No r: ` Typical 1.ot Sise:_ 5' xt ' . 1.?.ORO .Ro _ ft. 12. Covenants recorded? Yes Q No S. Adi-..:"t Land tinder Spa sor's Control: Will be identical to previous unit. Jll%"^ Acres Will conform with FHA Data Sheet 40. 6. Other Land Uses: N kk 13. a. Water System: Ej Central (Public or Community) 7. Sfortsor will: Individual development land and build horses; initial plan is to b. Sewerage System: 0 Central Public or Car"munity) start_ homes in to Q Individual price range. 14. Proposed Street Improvements: Q develap land and sell improved lots. Pavement Base -A3 tt1r.•t !101 s K Int -he; produce finished typical building sites at a price of Wearing Sarfoc4i that: -1011 , 2 3-erhez S Q Curb and Gutter Sidewalks linit site grading to minor redistribution with house 15. Urderground electric and telephone? C?9 Yes No foundations in natural soil. Explain under Remarks) construct house foundations on soils engineered cuts 16. Gas EI.Yes No and fills. 17. Will development include co:nasan area? Yes ® No 3. Any Specie! Assessments? LT -]Yes No if yes, Describe facilities and maintenance und.r Remarks) describe under Remarks. 18. Sponsor has El has not previously dealt with this 9. Any Mineral Reservations? Yes M No FHA office. hos dealt with other FHA offices (Explain If yes, describe under Remarks. under Remarks). REMARKSt Ft. 2aahary Ione- improvements are it r..•ecPss: 1: :t;:se.srent of tt%nflil at 8% for 20 r MAY 18 1916 CERTIFICATE Bysubtttittins. this request for site efigibilttr and signing this eettificatren, builder, developer, seller or ether signatory agrees with the Fe3eral Housing Ad• Antnisim6an that pursuant to the requirements of the FHA Regulations, (a) neither it nor anyore authorized to act #tw it will decline to sell, rent or other• witit ewlie available any of the properties or housing in the subdivision to a ptaspective purchaser at tenant tecause of his rote. talar, creed at notional or• tgin. lb) itwitl comply *,;IS start and Ictot laws and ordinances prohibiting drseriminotion;ara (c) failure of refusal to comply with the. requirements a! %other a) & (0) shall Itt a ptope'r bosis for the Corrmissroaer to reject requests far future business with which the sponsof•is identified at to take any other carrec- hr* vxtion he'ray beem oecessatr to carry out the rrgwrevems of the Regulations. T#e umdetsirtdfusther oglee.s, in eansrderation oft the r.iew of rhos prcposcl b)'t•.e FHa, tart crow deposit at downpalment received by the urdersigaed or Go. agent off tke u-tiersigned. to connection with the purchase of o home io ohtn the subdivision described above stall, up -.1 recetpr,. Ee deposited rne:cta•v at in ttutt of In a tipeeiol account which is flat subject to the ctar trs of m; creditors ord where it w:11 be maintained unt.l. it has been disbursed for the benefit of Ow purchaser or otherwise disposed 31 in accordan•e with the terms of the contract of sale. qf;;C \•j''ti'o • i•'L^tsion :!A^t t)n.vrlor-.•e+tt Corp. 5 atrar)(T tiej Yome o/ act-eforment Company/ Dole.- ote; ASP tAS" a Y.t.i7iRt;ttftrt Palettiw crFict. 014.twC .g3i73! It June 182 1975 Vj. Cffy C) P mom Mr. Robert Short Metropolitan Council 300 Metro Square Building Seventh & Robert St. Paul, MR 55101 Dear Bob: Thank you very much for meeting with us yesterday noon to review and discuss Plymouth's relationships with the Ketropolitan Council. We came away from the meeting with good feelings and with high expectation that our relation- ships with the Council will Improve. Bob, I want you to know that Plymouth has a sincere commit- ment to meet our housing assistance plan goals.. As you are aware, the need for such housing to relieve many of the social problems in the area is staggering. We recognize that Plymouth must be a part of the solution to this problem. Again, thank you for taking time from your busy schedule to meet with us. I appreciated your leadership and contribsition to what I believe was a very worthwhile meeting. Sincerely, Al Hilde, J:. Mayor AH:lg cc: Plymouth. Council 9025 MARBOR LANE. pLYMOUTK MINNESOTA 56441,. TELERMONE 1612) SS9.2800 fb JTY O? PLYMOUTR June 182 19,16 Mr. Robert L. Hoffman Metropolitan Council 300 Metro Square Building Seventh & Robert St. Paul, MN 55101 Dear Bob: Thank you for taking time from your very busy, schedule to meet with representatives of Plymouth yesterday noon. I believe the progress we made in the mutual understanding of one another's concerns will enable us all to improve our relationships in the. future. We came away from the greeting with positive feelings and are Indeed hopeful that a new spirit of cooperation exists between ourselves and the Council members. Bob, you. spoke of vatrJ:ius contracts and policies that you have worked with in conjunction with the Bloomington HRA. In order that we m!Zht benefit from your experience, I would certainly appreciate re4eiving a copy of those contracts and policies dealing with land write-down and the construction of lower coat housing. I am particularly interested in how your policies prevent the first owner, or for that matter a subsequent owner, from selling the subsidized home at a big; profit at the expense of the city and thus removing a lower cost house from the market. I am hopeful that Plymouth might locate several lots for such residential construction.. Bob, t have always been grateful for your reasonable, experienced and intelligent approach on the Met Council. Thank you for your continuing interest in. improving communications and cooperation between municipalities and the Metropolitan Council, and parti- cularly with Plymouth. Sincerely, Al Hilde, Jr. Mayor AH: Ig cc: Plymouth Council. 3025 HARBOR LANE. PLYMOUTHi. MINNESOTA 55441. TELEPHONE (612) 5S9 -28M Y Y CITY O WIMOUTR Jute -18, 1976 t.:s . Joan Campbell Metropolitan Council 300 Metra Square Building. Seventh A Rcahert St. Paul,. MN 55101 Dear Joan: ` May I express deep appreciation for you taking time from your busy schedule to meet with us yesterday noon. We came away from the meeting with positive feelings and believe that we have a far better understanding of the goals and. objectives that you have established for housing in the Metropolitan.a:rea and Plymouth in.particu.lar. I am con- fident that we will be able to work far more closely t+i th your commission in the months ahead as we seek to me4t our own housing assistance plan. goals, During the meeting you mentioned the possibility of various HRA's exchanging data on applicants for housing units. I would certainly appreciate receiving any information you may have concerning such an exchange project as I believe It is an excellent idea and one I would like to see our own HRA adopt.. Any information you could send me would be appreciated. Thank you again for your conttibuti.on to a. most productive and encouraging meet-ing. Sincerely,. Al Hilde, Jr. payor AR: I& cc: Plymouth Council 3025 HARBOR LANE; PLYMOUTH. MINNESCTA 55441. TELEPHONE (612) 559-2800 14 CITY O- - PUMOUTt June 18, 1976 Mr. John Boland,. Chairman. Metropolitan Council 300 Metro Square Building Seventh +& Robert St. Paul, NN 55101 Dear John: Your good Will, tact and people -handling abilities cer- tainly came to the fore again 1 cannot adequately ex- press my aopreeiatlon to you for a -,tinging and guiding such a fine meeting last Thursday. With all •f the many headaches you. have,. it is indeed appreciated by myself and our Council that you would take the time to help us improve our communications and relationships with members of the Metropolitan Council. John, I truly believe t:iat the new understandings that we all gained yesterday will enable us all to work together more closely and c:operatively. 1 can assure you that Plymouth will do it:s utmost to continue developing a fine relationship with the Council and also meet our responsi- bilities for reaching important metropolitan goals. Thank you again for your cordiality and assistance. Sincerely, Al Hilde, Jr. Mayor AH:lg cc: Plymouth Council. 3025 HARBOR LANE. PLYMOUTH. MINNESOTA 55441. TELEPHONE 1612! 559 -2600 ROW FN Y h"N C1'01 JUN 1976 's s myd RMO aOO Metro Square Building, 7th Street and Robert Street. Saint Paul, Kinueeo" 6510.1 Area 612.227- 0421 June 21, 19-76 Dear Friend: In late 1975 you received a draft proposal for allocating subsidized housing funds and rehabilitation funds in the metropol+tam area. The Human Resources Committee then held a public meeting to receive comments nn the allocation alternatives, and, subsequently, on January 8, 1976 the: Council adopted the Allocation Plan for Subsidized Housing on an interim basis. Copies of that allocation plan were distributed shortly thereafter. The enclosed Metropolitan Allocation Plan for Rehabilitation Funds is now being considered for adoption on an interim basis. As a result of comments received at the previous public meeting and as. a result of recent action by the Minnesota Legislature, some changes in the Allocation Plan for Rehabilitation Funds have been incorporated into the currently proposed plan. These changes are summarized as follows: 1. The Plan applies on y to the distribution of Minnesota Housing Finance Agency loans and grants. Previous alternatives which distributed federal rehabilitation funds are not included. 2. Thecriteria for determining each community's share of funds ,nly inc udes owner -occupied housing units. Previous criteria which ccnl idered the number of acartment units built before 1939 anc renting for $199 a month or less have been dropped since these units are typically not eligible for state rehabilitation funds. 3. The amount of grant funds available to the region has been set at 2,970,000 by the. Minnesota Housing Finance Agency since the Minnesota Legislature appropriated the funds during the 1.976 Legislative Session. Each community's dollar snare of this :otal is listed rather than the number of grants since the amount of a grant can vary widely up to a maximum of $5,000. It should be noted that the share of loan funds allocated to each community should be viewed as general guidelines or goals for the cosmluni" since the state deals directly with private lending institutions and the.; are no regional or local reviews of the distribution of funds. An Agency Created;* Coordinate the Planning and Development of the Twin Cities Metropoll.ton Area Comprising: Anoka Couaty 0 Carver County 0 Dakota County 0 316ongAn County 0 Ramsay County 0 Scott County 0 Washington County 2 - Conversely, the share of grant funds allocated to each community are more directly influenced by the Council which must review and make recommendations on applications by all local administering entities. These grant funds will be administered by non-profit organizations, or by muricipal, county or multi -county publi:: bodies who can demon- strate a reasonable administrative program for delivering the grants. The Rehabilitation Allocation Plan will be adopted as a part of the revised Housing Policy Plan of the Metropolitan Development Guide after a public hearing later this year. However, the Minnesota Housing Finance Agency expects to receive applications for rehabilita- tion grant funds from administering agencies by July 20, 1976 and will be referring these applications to the Council for review and comment immediately thereafter. Therefore, the Human Resources Committee will he considering this Re- habilitation Allocation Plan for adoption on an interim basis at its meeting..on July 12, 1976. Any comments or suggestions you may have on this revised plan will be considered and should be offered before that meeting date. In an effort to encourage the MHFA Home Improvement. Grant Program through- out the metropolitan area, the Metropolitan Council Housing and Redevelop- ment Authority is available to provide assistance to those communities who may wish to join together in an application for grant funds and who may need help in handling the local administration of the program. An outline of this kind of rehabilitation assistance from Metro HRA is attached for your information. If you'have any questions regarding the Rehabilitation Allocation Plan or the Metro HRA Rehabilitation Assistance Program, please call Phil Katzung at 291-606 or Chuck Ballentine at 291-6381. Sincerely, Joan Campbell, Chairman Human. Resources Committee f ep Attachment L 'l e y T'1 1 O PLYMOUTR June.:23, 1976 mr. Herbert P. Lefler Attorney 1100 First National Bank Building Minneapolis, NN 55402 Dar Herb, we need a "supporting opinion" from your office that the City% HRA.is legally qualified and authorized to participate in Section 8 Programs- osihaveodr rawn application an opinion statement as an.example of what we need. Also for Section 8 units and xi -0. HUD -definition as per their latest guidelines of what constitutes. a Public Housing Agency-.' We need your opinion at your earlierst possible tort; 4once. We alsoneed an HRA ,solution in. appropriate format for the June 28, 1976 HRA meeting approving the Section 8 application. Enclosed is what we Want to say. Yours truly, Milton L. Dale Associate Planner M.0/km. Enclosures 30715 HARBOR LANE, PLYMOUTH, MINNESOTA 55441. TELEPHONE 16121559 -28W