HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 01-28-1980a
A4EN.0A
PLYMOUTH HOUSING AND REDEVELOPMT AUTHORITY
January 28, 1980
5;30 p.m.
I. 901 call
1.i. Minutes of January 8th, 1980 Pretermination Hearing for
Deborah Radtke's Section 8 Certificate
M. Nomination and Appointment of a. Chairman
IV. Nomination and Appointment of a Vice -Chairman
V. Nomination and Appointment of a Secretary -Treasurer
Vt. Memorandum from City Attorney's Office
re: Deborah Radtke's Pretermination Hearing
VII. Allegations Against a Section 8 Renter
VIII., Proposed Changes in the Regulations for Admissions and
Occupancy to the Section 8 Program
IX, HUD Changes in the Section 8 Program
X. Title Search on Rehab Applicant's Property
X1. AdJournment.
CITY OF PLYMOUTH
3400 PLYMOUTH BLVD.. PLYMOUTH, MINNESOTA 55441
TELEPHONE (612) 559-2800
DATE: January 22, 1980
MEMO
TO: HRA Commissioners
FROM: Milt Dale
SUBJECT: Agenda Topics for January 28, 1980 Meeting
NOMINATION 8 APPOINTMENT OF OFFICERS
According to the Plymouth HRA Bylaws, the annual meeting of the Authority shall
be the fourth Monday of January at which time the nomination and appointment
of the officers of the Authority shall be made. Since the resignation of
John Spaeth from the Authority and the expiration of the term of office for
Gerry Neils, these vacancies must be filled as well. Presently the positions
are as follows:
EXPIRATION DATE
COMMISSIONER OFFICE DATE APPOINTED LENGTH OF TERM OF TERM
Howard Hunt Vice -Chairman Jan. 1978 5 Years Jan. 1983
Gerald Neils Secretary -Treasurer Jan. 1976 4 Years Jan. 1980
Harold Bakke - Jan.. 1977 5 Years Jan. 1982
Rodney Hillstrom Jan. 1979 5 Years Jan. 1984
The office of Chairman is to run for the length of the term of office while the
other offices are to be appointed annually.
PRETERMINATION HEARIIIG OF JAN. §t1l
On Jan. 8, 1980, the Plymouth HRA held a pretermination hearing for Deborah Radtke.
The issue was whether just cause existed to terminate Deborah Radtke's certificate
of Family Participation from the Plymouth Section 8 Proqram. Ms. Radtke's attorney,
Ann Bortsch of Minneapolis Legal Aid, contended that the allegations by the At The
Lake management were not all proveable and that the Section 8 Program obligated
a certificate holder in only three specific particulars, ie (1) to provide income
information records; (2) permit inspection of the dwelling unit; and (3) to give
30 days notice to the HRA of an intent to vacate the unit.
The HRA's assistant attorney, Herbert Lefler III, has prepared a memorandum for
the commissioners consideration. Basically it states that in his review of this
case, the Plymouth HRA does have grounds, in addition to the three specific obligations
as listed above, to terminate a. Section 8 Certificate. Consequently, it is up
to the Commissioners to decide if the terms of the lease were violated as alleged
and if so, should Ms. Radtke's Section 8 Certificate be taken away. Minutes relative
to the hearing are attached. A response to Mr. Lefler's memo from Deborah Radtke's
attorney is forth coming on Friday, January 25th. A decision on this case should
be made at the January 28th meeting.
Agenda Topics
Page 2:
ALLEGATIONS AGAINST MARTHA KNIGHT, A SECTION 8 RENTER
Recently the apartment management at Village Square Apartments has informed me
that one of our Sect{ -=h 8 renters, Martha Knight, appears to have two of her
brothers living with r:r. In response to this compliant, the apartment manager
and I visited Ms. Knight's apartment on January 21, 1980, bit were not pormitted
entrance by her brother, Mike Knight. When I questioned him about his place
of residence,he stated he did not live in his sister's apartment. Later that
day I called his employer and was told that Mike Knight had given his address
as 3301 North County Road 18, the address of Village Square Apartments. Last
September the apartment manager had also informed me that it appeared Ms. Knight
had long-term "guests" in violation of her lease. I then wrote her a letter
September 27, 1979) indicating the steps she should take regardinn auests and
warning her of the consequences of any violation of the lease and any provisions
of the Section 8 Program.
It is Staff's opinion that sufficient cause exists to hold a pretermination hearing
on this matter. The renewal of Ms. Knight's lease and certificate comes up on
February 29th so prompt consideration of this matter is encouraae4. It is my
recommendation that a time and date be set at the meeting of Janaury 28th for a
pretermination hearino for Martha Knight's participation in Plymouth's Section
8 Program,
PROPOSED CHANGES IN PLYMOUTH'S SECTION 8 ADMISSION & OCCUPANCY POLICIES
Prior to the January 8th.pretermination hearing, staff prepared a memo (dated
December 20, 1979) regarding the pretermination hearing and suggested changes to
Plymouth's Section 8 Admission and Occupancy Policies. This memo was mailed to
Nancy Bratrud of the local HUD area office for her review & comment. Basically,
she was of the opinion that the proposed.cf--ts;*as to our Section 8 policies could
be simplified somewhat. She did not believe we needed a grievance board such
as a public housing agency that owned and managed public housing might require.
Consequently, I have made several modifications to the material submitted in
the December 20th, 1979 mono with the intent of keeping the process as simple
as possible. These changes are as follows:
Section I (p. 2 & 3 of memo) Delete paragraph 4. (HUD will not
let this one stay!)
Section VII & XIV (pp 3-7 of memo) Delete all of this in favor
of a more simplified hearing process
Section IV (p.8 of memo) Retain
Section VI.E (p.8 of memo) Add the following:
Any attempt to willfully defraud the agency or
U.S. Government will result in the agency referring
the Case to the Inspector General's Office for their
investigation and disposition."
Section VI.F (p.8 of memo) Change "first month" to "second month"
04
Agenda Topics
Page 3
Attachment A - HUD occupancy specialist Clancy 8ratrud believed
this to bo excellent and it should be given to each new Section
8 renter when they come on the Program.
Attachment 6 - This letter has been rewritten to emphasize that
the HAA does not have the authority to prevent evictions. This
is the perogative of the landlord and the courts.
Attachment C - This was rated as "very good" by HUD and is recommended
to be retained with some modifications.
It is my recommendation that Section VII and. XIV be replaced by a more simplified
hearing process. However, the exact format and structure of the hearing panel
needs to be discussed more thoroughly. Therefore it is my recommendation that
a sub committee of the Plymouth HRA be appointed to spend one or two meetings
discussing the followinq:
1. The composition of the pretermination hearing panel.
2. The process to be followed from the eviction notice
and/or charge of a Section b violation by a tenant
to the disposition of the case.
3. The role of the HRA staff in handling allegations.
It is my opinion that several cases of this nature may need to be processed every
year. (However, I would like to be proven wrong!) The need to have a smooth
orderly consistent process for each hearing is evident, consequenty spendtno the
time "early in the game" to develop a rirkable process for "problem" Section 8
cases is advised.
HUD CHANGES IN THE SECTION 8 PROGRAM
On.January 11th, 1980, I attended a HUD sponsored workshop on a new "wrinkle" in
the Section 8 Rent Assistance Program. This is a New Rent Adjustment Policy
recently initiated by HUD in Washington. This Rent Adjustment Policy requires
that all Housinq Authorities employ the use of a special Annual Adjustment Factor
and/or Fair Market Rents (FMR) as specified by HUD. As you know, Fair Market
Rents initially were conceived by HUD to provide an upper rent limit for
apartments rented under the Section b Program.
Now, however, HUD has determined that other "devices" are necessary to keep
rents reasonable, hence, the Annual Adjustment Factor. This factor is applied
to all lease renewals where the contract was initially entered into after
January 29, 1979, to determine if the rent increase by the landlord is reasonable
by HUD standards!). This is done by multiplying the Annual Adjustment Factor
for out area this is 1.065 or .a 6.5% increase in rent) by the gross rent (minus
the utility allowance) to determine rent acceptance. Where the rent is not
acceptable, either the landlord must reduce his rent accordingly or the tenant
must move out.
When applying the Annual Adjustment Factor to Plymouth, staff has determined
that many current Section 8 renters would likely be forced to move. Presently
the vacancy rate is so low in Plymouth (less than 15 as of. January 1980) that few
apartment owners would lower rents to retain a Section 8 tenant. There is
no monetary incentive to do so along with the fact that once other apartment
renters knew that Section 8 retrters paid less total rent, all other renters
would want a rent "break".
Agenda topics
J$ge 4
To '"Stave off" a problem of this nature, HUD has provided the mechanism for a
HRA to request a revision in the Annual Adjustment factor for designated areas..
As such, I have written.a letter to the HUD Area Office in Edina requesting
that Plymouth be accorded a revision in its Annual Adjustment Factor to reflect
the increased cost. of heating fuels, salaries and other operating expenses
now paid by apartment owners over what was paid by them a year ago. Attached
is a latter I recently submitted to Nancy Bartrud of the HUD area office.
TITLE: SEARCH ON REHAB APPr?CANT'-S FAOPERTY
At the last Housing Rehabilitation Committee in January, the matter of requiring
a title search for each applicant's property was discussed. Staff had brought
to the Committee an application where two other parties were involved in the
ownership of'tne property besides the applicant. On the recommendation of the
City Attorney, a title search was conducted for this property. As well, the
City Attorney raised the issue that all applicants for this Program should
have their titles cleared prior to the final approval of their grant application.
It was the Rehab Committee's opinion that a title search was an unnecessary
expense and should not be required in every case, however they turther
recommended that staff take the issue up before the NRA for their determination.
In.my discussion of the issue with Mark Elmberg of the Hennepin County Staff,
he.indi.cated that a title search by the City Attorney would not be. necessary..
In their experience, out of some 75 applications they have needed an attorney's
opinion only twice. Staff would recommend that only where several parties were
involved in the property ownership, would an attorney's opinion be required.
Attachments
1. Minutes of January 8, 1980 Pretermination Hearing
2. Memorandum from Herbert Lefler, III (1-17-80)
3. Letter to Martha Knight (9-27-79)
4. Letter to Martha Knight (1-22-79)
S. Letter to Nancy Bratrud (1-16-80) with Attachments
6.: Map of low and Moderate Income Housing in Plymouth (as of 1-2280)
January 9., 1980
Nancy 6ratrt4d
HUD Occupacry Specialist
hUD Area Office
6400 Franca; Ave. South
Edina,
Dear Nancy,
Enclosed is a memo I recently prepared for the Plymouth HRA. Would you be able
to determine if my suggested. changes to Plymouth's Section 8 Regulations Establishin
Admission 6 Occupancy Policies are appropriate? Basically they follow procedures
present y in use by the metro -Council HRA. One added. "touch" ft on Page 3 of my
memo, ie under Section 1.8.4. (also circled in red). Would thi: point be VV
with your office? Also, has the HUD legal staff cleared the Metro HRA's Admission
6 Occupancy Policies?
Thank you much for your help in this matter.
Sincerely,
1411t Dale
Plymouth HRA
Enclosure
3400 PLYMOUTH BOULEVARD, PLYMOUTH. MINNESOTA 55441, TELEPHONE (612) 559.2800
t1J16
January 16, 1980
Nancy Bratrud, Housing
Department of HUD
6400 France Ave. South
Edina, NN 55435
Dear Nancy,
CITY Cir
PLYMOUTF.
Occupancy Specialist
This letter is in regards to the memorandum from Lawrence Simons and Donna Shalala
re: The Revised Existina Housing FMR and New Rent Adjustment Policy. First, I
must stress that the Section 8 Program as it relates to Section 8 renters now renting
in Plymouth is in serious jeopardy if Plymouth is required to use the annual adjust-
ment factor of 1.065. We therefore are submitting a request that the annual adjustment
factor for Plymouth be increased to reflect the situation in Plymouth, re the
abnormally high apartment operating costs over last. year.
Enclosed are rent surveys done for all apartments in. Plymouth where Section 8
reenters are presently on lease. (No attempt was made to survey apartments
where apartment owners have consistently refused to enter into a Section 8
contract or where rents have been far in excess of FMR. The apartments
surveyed constitute 85% of all rental apartment units in Plymouth.) Please note
that for all one bedroom apartments units the annual adjustment factor of 1.065
would permit only 18 units to rt eligible while for two bedroom units some 83 units
would be eligble (all 83 units are in one apartment project however) and some
40 units would potentially be eligible among three bedroom units.
In staff's opinion, based on the survey results enclosed, it will be necessary
for Plymouth to have an annual adjustment factor of 1.165 to continue: operating
the Section 8 Program in our community.
Your serious consideration of our request is solicitated.
Sincerely,
1,
Milt Dale
Plymouth NRA
wk
Enclosure
3400 PLYMOUTH BOULEVARD, PLY4MYTH, MINNESOTA 5544 t, TELEPHONE (61215%2600
Y
Ont 89 APARTMENTS. RENTAL RATES' IN PLYMGI]TM
Per Month RAte) Pementaoe
SWVEY GATES increase from
wifter of Jan. 1979 to
Apartment Project .One BR 0.1ts_ Jew 1979 June 1979 Jan._ 1980 Jan, 1980
1. The Place 1 42 245 2.70 290 18.4%
2. Mel l'.ngion I 18 255 260 270 5..9
3. Plymouth Colony ; 30 240 270 285 18.7
4. Manor Royal 78 280 29.S 3'15 16.1.
S. Village Square 77 245 265 290 18.4
6. Fox Meadows , 53 245 260 26S 8.2
Fox Meadows I 53 25.5 280 260 9.8
7. At The lake 108 2SO 265 280 12.0
B. Lancaster TOlage 1. 64: 255 255 280 9.8
9:. Plyrouth Terrace 43 240 250 264 6.3
10. Four Seawns Estates 48 250 265 275 10.0
11. four Seasons. Villa 48 21S 2.30 250 16.3
Four Seasons Villa 95 230 250 275 19.6
12. Countryside Estates 12 230 250 265 15.2
Countryside Estates 24 240 260 273 14.6
Total Units OR
TWO 81 tPARTMENTS. RENTAL RAZES IN PLYMOUTH
Per Mrnth Rete) Percentage
SURVEY OATES increase from
Noftr of Jan. 1979 to•
Apartment Project tub BR Units Jan. 1979 June 1979 Jan. 1980 Jan. 3980
1. The Place T056" S29S 3.15 14.5%
The Place 96 290 310 330 13.8
2. Wellington 14 290 315 315 8.6
Wellington 7 295 325 325 10.2
3. Plymouth Colony 12 285 315 330
Plymouth Colony i 71 299 320 335 1.5.5
Plyrouth Colony ' 12 295 325 340 15.3
4. Manor Royal j It 340 335 375 10.3
Martyr Royal 42 350 345 385 10.0
S. Village Square 1 76 280 300 325 16.1
Village Square 4 24 300 320 350 16.7
6.. Fox Meadows 83 305 305 315 3.3
Fox Meadows 83 315 d'sS 350 11.1
7. At The Lake 48 2'90 305 32C 10.3
At The Lake 24 300 315 330 10.0
At The Lake 6 310 325 335 8.1
8.. Lancaster Village 64 290 290 320 10.3
9.. Plymouth. Terrace 41 270 296 300
Plymouth. Terrace 12 285 290 320 12'.3
10. Four Seasons Estates X48 290 305 315 8.6
11. Four Seasons Villa 30 245 260 290 18.4
Four Seasons Villa 67 PS5 290 320 2S.S
12. Countryside Estates 12 260 285 300 15.4
Countryside Estates k4 270 29S 310 14.8
Total Units Fiv
THREE. BR APARTMENTS, RENTAL RATES IN PLYMOUTH
Per Mohth Rate) Percentage
SURNY DATES Increase from
Number of Jan. 1.979 to
A
i_
Proiect. Th1 a Units, Jan. 1979 J+ae1974 Jan... 1980 Jan., 1980,...
1. Plymouth Colony t 1 $305 MIA $360 18.0%
2. Fox Meadows 20 395 $385 385 2.6
Fox Meadows 20 410 410 425 3.7
3. At The Lake 6 330 355 360 9.1
Total Units
OTHER APARTMENTS. IM PLYMOUTH NOT ON THE
SECTION 8. PROGRAM
A&artment Project Number of BR dnits Rental Rate As of Jan. 1980
1. South Shore
I OR Units: 6 No rental rate information
2 OR Units: 11 available. Ownei will not
2. Village Arms participate in the Section 8
1 OR Units: 8 Program at this time.
2 BR Units: 14 e
3. Sunrise Bay Estates
1 OR Units: 3.5 $325 to $360
2 OR Units: 46 $425 to $460
4. Oakwood:
1 BR Units: 44 $325
2 BR Uoits: 63 $380 to $415
S. Willow Creek
Efficiency. 21 $215 This., apartment. hss its am
1 BR Units: 39 $215 new construction Sect. 8 Program
2 8R Units: 60 $335
Totals
1 BR Units: 132
2 BR Units: 194
326
January 29, 1980
Nancy Bratrud
HUD Occupancy Specialist
HUD Area Office
6400 France Ave. South
Edina, MN 55424
Dear Nancy:
Jaw ,^
I ..reyo. } _
I thought you might he interested in knowing what is happening
in our Section 8 Program out in Plymouth; so I have enclosed the
minutes and related attorney memos from a recent pretermination
hearir- On the meeting of January 28th, 1980 the Plymouth HRA
did di.,ct our attorney to prepare findings and conclusions to
terminate Ms. Radtke's certificate.
Sincerely.,:
iJx, -VX
Milt Dale
Plymouth HRA
Enclosures
wk
A
TPA4
34x3 FLYNICUTH BOULEVA.P.O, PLYMOUTH, MINilESOTA 55441. TELEPHONE (6121559.2600
January 29, 1980 #4
Diane Omiel
Housing Management Branch
HUD Area Office
6400 France. Ave. South.
Edina, MN 56424
Dear Diane:
Recently an auditing firm was selected. by the Plymouth NRA to conduct
an audit of our Section 8 Program as per HUD regulations. This firm
shall also prepare HUH forms 52681, 52682 and 52595 for fiscal years
June 30, 1978 and June 30, 1979. These forms should be completed
within the next two weeks, i^ by February 8th.
Sincervely,
6-
Milt Jale
Plymouth HRA
wk
a. PLY ."R',;Tri F&CU VAAD. PLYMOUTH, !'f':::f-SOTA 55441. TE..EPMONE (02) 50-2i'