Loading...
HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 08-11-1980AGENDA PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY aa l d* 1980 6:30 pm I. Roll Call II. Approval of Minutes for May 27, 1980 Meeting III. Fair Market Rents Raised For Plymouth's Section 0 Program IV. HUD's Section 8 and Home Improvement Grant "Paper" Requirements V. Housing and Community Development Bonus funds • Review Criteria and Guidelines from the Metro Council V1, Interjurisdictional Mobility for Section 8 Certificate Holders VII. Section 8 Program and HUD Management Review Report VIII. Adjournment CITY OF PLYMOUTH 3400 PLYMOUTH BLVD, PLYMOUTH, MINNESOTA 55441 TELEPHONE (612) 659-280.0 DATE: July 23, 1980 MEM TO: -NRA Commissioners FROM: Milt Dale SUBJECT: Fair Market Rents (FMR) Raised for Plymouth's Seclion 8 Program To help alleviate the problem of rapidly rising rents in Plymouth, the local HUD Area Office has recently approved an increase in the City'S FMR (a rent limit established by HUD for the Section 8 Program) to 10% over FMR for 50% of Plymouth's 72 Section 8 units. The actual dollar amounts (rent plus utility allowance) are as follows: BR Size FMR 101,1 Over FMR, nf' a "— rel/mo. 309750_ . Two 330/mo- 363/mo. Three 380/mo. 418/mo, It is my "pessimistic" opin:)n that this may not be adequate but perhaps a "curb" of this nature is necessary to help prevent, to some degree, complete runaway inflation.. Recently, I read that 40% of Americ4ns..are now eligible for Section 8 rent. ass`_`.nce; indicating that the Section 8 income limits are either too high or that 40% of 0,0:--icans need to make more money! , Attached is a letter from the local HRO Area Office granting Plymouth the authorization to allow higher rents in.50S of the cases. Attachment et rrqm local HUD Area Office, 7/7/80 11 0 M REGION V u OkPARTNMENT OF MOUSING AND URBM DEVELOPMENT MINNEAPOLIS -ST, PAUL AREA OFFM OW FRANCE AVENUE SOUTH. MINNEAPOLIS,. MINNESOTA GNU July 70 1980 IM MCPLV A:Wlp 10s 5.6®V:RFC:.dj 11tk Samea WSUIs 9MCUUvo virector .;j V[ 1g80 nymout& 400sift 6 Redevelopment Authority 3400 ply"000 "Blvd. W11h F1ymCut#x 'l Dl 3:54.41 ,. Dear Ms, W 11is Subject: Plymouth., 0 Section 8/ Fla Based on a review of comparable rents conducted in the plyeoutb market area June 26, 1980, an increase of 10X in the PHR schedule for 36 or Sox of the 72 units is authorized, Sincerely, e- Thomas T. Feeney Area Manger 0 I 0 CITY OF PLYMOUTH 3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55441 TELEPHONE (612) 559.2600 DATE: July 23, 1980 MEMO TO: HRA Commissioners FROM: Milt Dale SUBJECT: HUD's Section 8 and Home Improvement Grant "Paper" Requirements Recent trends with both the Section 8 Program and the CDBG Home improvement Grant Program point toward increased paper -work and greater complexity of administration. As well, HUD is more closely auditing all units of government to force compliance with their regulations. My reason for bringing these matters up, is to keep the Commissioners informed of these trends and what they may portend for the future of these programs in Plymouth in terms of local administration. Presently, the Section Program for one Section 8 tenant requires the following documentation be provided: I. Preliminary Applficbtion (6 pages long) 2. Application for Tenant Eligibility and Recertification (1 legal site) 3. Certificate of Family Participation (1 legal size sheet - 2 copies) 4 :Request for Lease Approval (1 legal size sheet - 3 copies) 5, Section 8 Lease (2.1egal size sheets, both sides - 3 copies) 6. Part I of the Housin,.Assistance Payments Contract (1 legal size. sheet, both sides, 2 copies i. Part 11 of the Housing Assistance Payments Contract (1 legal size sheet, both sides, 2 copies) 8. Computations of Utility Allowance (1 regular sheet - 2 copies) 9. Income Verification Forms {anywhere from 2 to 10 regular size sheets) 10. Dwelling Unit Inspection Report Booklet (12 pages - 2 copies) 11. Rent Reasonableness Documentation (1 regular sheet) 12. Various Correspondence'on: a. Lease Renewal Notification b. Termination from.Program c. Change in Tenant's income 13. Optional Documentation Depending on Circumstances: a. Computation of'Shopping Incentive. Credit b. Addendum to Lease (.1 legal size sheet, 2 sides - 3 copies) c. Important Notice (.1 regular size sheet - 2 copies) d. Claim for Vacancy Loss (2 regular size sheets plus one sheet of instructions) As well, thu local housing authority must submit to HUD various reports: 1. Occupancy Reports a. Report on Program Utilization (4 times a year) b. Family Characteristics (2 times each year 2. Financial Forms S Reports a. quarterly Requisition and Vouchers Por Payment of Required Annual Contributions b. Year -End Settlement Forms I1; Voucher for Payment of Annual Contributions 2 Operatinq Statement jj) Balance Sheet 4) Estimate of Required Annual Contributions Page 2 July 23, 1980 In addition, the Section 8 Program's complexity has increased what with the use of HUD -crated quotas as for very low (30% of Program units); Interjurisdictional mobility arrangements (57 of total unit allocation); annual adjustment increases for rent (1.065/ a year); rent reasonableness; special adjustment factors; exception rents for elevator structures; 50u FMR requirement withh allowance for W over 1107, of FMR; ect. ect. This complexity merely increases the chance for error and increases the number of auditors required to check for error. End result (seems to me) is greater tax -payer cost and a less manageable program. (People stili get helped but there is more time -delay andIncreasedfrustration.) Along the same lines, the HUD sponsored CDBG Home 'npprovement Grant Proaram is also for an increased in paper -shuffling, A case in point was earlier this month when I reimbursement for $8,576.70 from Hennepin County. It was required that I submit the forms: 1. HUD/County Reporting Requirements (8 individual forms - i for each of 8 2. Income Verification Forms (for 8 homeowners) 3. Copies of Invoices (13) 4. Completion Certificates (for 13 projects) 6, Bills from Contractors (13) 6. Summary of Project Disbursement (1) 7. Warrant Request (1) 8, Staff Administrative Time (1) headed requested followinq homeowners) It becomes apparent that either HUD looks with some suspicion on how trust -worthy local units of goverment are in administrating federal programs or they have a severe shortage of payer to shuffled! CITY OF PLYMOUTH 3400 PLYMOUTH BLVD., PLYMOUTH. MiNNESOTA 55441 TELEPHONE (612) 559-2800 VATT: July 23, 1980 TO: ORA Co missioners FROM: Milt Dale MEMO SUZJECT:-dousing and Community development Bonus Funds - Review Criteria and Guidelines From the Metro Council On July 10, 1980 1 attended a meetinwith various other community representatives on the issue of increasing the mobility of low -and moderate -income people from the "center city" into areas of less concentration. Prior to the meeting, the City of Plymouth received a memorandum from Nancy Reeves, Metro Council staff, directed to this issue. This memorandum is attached. No conclusion etas reached at the meeting, but there was strong concensus that the more of an issue was made of attracting "center city-" {Metro's terminology) people into the suburbs, the more local oppositionr, would develop. Representatives from Minneapolis and St. Paul indicated a strong desire to retain "their" center city people - no resolution of this difficulty was advanced by Metro staff. Also, there seems to be no provision for paying an apartment owner for "setting aside" units for center city folk. One point of interest from this meeting relative to Plymouth's Section 8 Program was the fact that Plymouth has a -higher percentage of minority participants (8% as of May 1980) than any other Section 8 Program in the metro area. (What 1 didn't tell the Metro statistician was that a week earlier, 1h percent of Plymouth's minority population left for a more "center city" locationl.) Attachments emarandum from Nancy :Reeves, 6/26/80 2. Section 8 new Construction. Proposals 3. Section 8 -New Construction Bonus Funds - Review 4. Section 8 flow. -Construction $onus Funds = Ranking System S. Subsidized Housing Allocation Plan Communities Robbinsdale St. Louis Park B. COMMUNITIES WITR No FAMILY NEW CONSTRUCTION UNITS Anoka County Career County Dakota County Andover Circle Pines Columbia Heights Hilltop Lexington Spring Lake Park Hennepin County Chanhassen* Victoria Champlin Maple Grove* Crystal Medicine Lake Deephaven 6/13/80 Excelsior SUBSIDIZED HOUSING GreenwocW Mound ALLOCATION PLAN COMMUNITIES A. COMMUNITIES WITH FAMILY NEW CONSTRUCTION UNITS Anoka County Carver County Dakota County Anoka Chaska Apple valley Blaine Waconia Burnsville Coon Rapids Eagan Fridley Hastings Inver Grove Heights Rosemount 8_ennepin.County Ramsey County Scott County Bloomington Maplewood. Belle Plaine Brooklyn Center New Brighton Prior Lake Brooklyn Park Roseville Shakopee Eden Prairie St. -Paul Edina Shoreview Golden Valle; White Bear Lake Hopkins Washington County Long Lake Minneapolis Cottage Grove Minnetonka Forest Lake New Hope Mahtomedi Plymoutb Oakdale Richfield Stillwater Robbinsdale St. Louis Park B. COMMUNITIES WITR No FAMILY NEW CONSTRUCTION UNITS Anoka County Career County Dakota County Andover Circle Pines Columbia Heights Hilltop Lexington Spring Lake Park Hennepin County Chanhassen* Victoria Champlin Maple Grove* Crystal Medicine Lake Deephaven Minnetonka Beach Excelsior Minnetrista GreenwocW Mound Farmington Lakeville Lilydale Mendota Mendota :eights South St. Paul Sunfish Lake West St. Paul Orono Osseo St. Anthony Shorewood* Spring Park Tonka Bay Wayzata Woodland 1 Ramsey -County Scott County Washington County Arden gills*, Jordan r rsacon Heights Savage Landfall. Coo Late Newport Lauderdale Pine Springs s St. Paul Park 1 Ramsey -County Scott County Washington County Arden gills*, Jordan Birchwood. rsacon Heights Savage Landfall. Coo Late Newport Lauderdale Pine Springs Little Canada St. Paul Park Noundsview Nil.lernie North. Oaks Woodbury** North St. Paul vadnsis Heights Nhiu. ' ea ar Twp. Family proposal selected for funding by MHFA in 1990. Family proposal selected for funding by MMA in 1979. CITY CSF PLYMOUTH 3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55441 TE' EPHONE (612) 559-2800 DATE: July 24, 1980 MEMO TO: NAA Commissioners FROM: Milt Oale. SUBJECT: lnterjurisdictional Mobility for Section 8 Certificate Holders Over-the last year,. September 1, 1.979 -August 31, 19808, we havb had an arrangement with several: other housing authorities to exchange Section 8certificates to permit. the mobility of Section 8 certificate holders in the Metro area.. The number of certificate'trensfers in Plymouthss.sltuation, has been limited. In fact, only two families have transfered in and none have transfered out. Since Plymouth's quota is two, we have performed satisfactorily in this instance. The purpose of this am, is to determine if we are willing to continue with the agree- ment as signed last year. A meeting on the matter will be held on July 30, 1980 to garner our input. Attachments New from Anita McCoy, Metro HRA Procedures to Facilitate Certificate Transfers between Cooperating Jurisdictions SIN 3OU Metro Sguare'SoRding.7th Street and Robert Stre©t, Saint Paul. Minnesota 55101 Area 612. LVI-0:159 T0Dakota County. Plymouth, Scott County HRA'so St.Paul PHA FROM: Anita McCoy/Metro HRA SUBJECT: Interjurisdictional Mobility: Renewal of Memorandum of Agreement Over the past eleven months, we have attempted to increase housing opportunities in the Saction 8 Existing Program through the certificate exchange process. The following chart indicates the approx',I-- °:e number of certificate exchanges to date- and the jurisdictions :L. which - they have occurred. rrVAtJeVVVc ni1T nr TOTAL TRANSFERS OUT IAn Agency Croated to Coordinate tho Planning an$ DnvOuprtic nt of the Twin CWOR Metropolitan Arca Comprining. Anahr. County , P Career County 0 Dakota County 6 Hennepin County, 0 Hammy County Scott County 0 WAMIriutjta.r County Dakota Ct HRA Metro HRA Plymouth HRA Scott Ct HRA St.Paul PHA ak•ota Cty HRA 5-8 2-3 7-11 o i 16 tout cost Ct t . au 25-30 12-13 6-33 0 1 13-14 TOTAL TRANSFERS OUT IAn Agency Croated to Coordinate tho Planning an$ DnvOuprtic nt of the Twin CWOR Metropolitan Arca Comprining. Anahr. County , P Career County 0 Dakota County 6 Hennepin County, 0 Hammy County Scott County 0 WAMIriutjta.r County On ,August 31,1980, the Memorandum of Agreement which permits the ex- change of Section 8 Certificates will expire. A -meeting will be held on Wednesday July 30,1980 at Y 00 A.M. in Room A of the Metro HRA offices., 300 Metro Square Building, 7th and Robert Streets, downtown St -Paul. We will discuss Memorandum of Agreement, determine to what extent the goals of the Agreement are being accomplished, decide upon renewal/non renewal of the Agreement and the participation of additional PHA's. Please .arrange to have your agency contact persc.:s.in attendance and baring your record .of certificate exchanges. cc: Bloomington, Minneapolis, St. Louis Park, South St.Paul HRA''s AM/ch CITY OF PLYMOUTH 3400 PLYMOUTH BLVD., PLYMOUTH. MINNESOTA 55441 TELEPHONE (612) 559-2800 DATE:. July 23, 1980 TO: HRA Commisioners FROM: Milt Dale MEMO SUBJECT: Section 8 Program and HUD Management Review Report On June 4, 1980 we received a letter from the local HUD Area Office regarding several matters their office would like corrected or explained -in teras of our Section 8 Program in Plymouth. This letter gave the City 30 days to respond, however., staff was able to get a 30 day extension to enable the City's accountjng consultant to develop an appropriate accounting system. HUD's main concerns ware with the following matters: 1. Development of an accounting system that meets HUD guidelines. 2. Revision of -the Administrative Plan or the practice of the Plan to conform to the way it was initially established. The Administrative Plan calls for the Executive Director to be responsible for the day to day operations of the Section 8 program. In practice, the associate planner handles these matters. A resolution revising the Plan is attached. 3. Development of a Management Service Contract between the HRA and the City. Presently the City's accounting consultant, Moen and Penttila, is developing an accounting system that complies with HUD requirements. The City Manager and other City staff will be meeting with the consultant's representative, Ken Jabe, sometime next week in regards to this matter. As for Point 2 above, I have prepared a resolution'revisi:ng the. Administrative Plan allowing for the associate planner to administer the Section 8 Program's day to day functions.: The lboagement Service Contract needs to be reviewed by the City attorney and then it wf.l1 be ready for HRA and City Council action. Tentatively, a special meeting on the.25th of August may be in order to obtain the Commissioners' approval on this contract prior to its disposition by the Council. Attachments: A. Letter from HUD Area Office, 6/3/80 2. Resolution Revising Administrative Plan 0 M Ar REG N Y DEPARTMENT OF MOUSINGAND URBAN DEVELOPMENT MINNEAPOLIS -ST. PAUL AREA OPPICE 6100 FRANCE. AVENUE SOUTH MINNEAPOLIS. MINNESOTA 65W June 3, 1980 W. James Willis, Executive Director Housing and Redevelopmnt Authority of Plymouth 3400 Plymouth Boulevard Plymouth, Minnesota 55441 Dear Mr. Willis: 1 N N6WLV QEI1LY 10: 5.6HMA: Cr' on. March 11, 1980, a Management Review .Report was sent to your office following a field review conducted February 21, 1980 by members of our staff. This report listed several deficiencies and requested corrective action within thirty days. Mr. Dale has been in contact with meffbers of the Oecnpancy staff and is clearing the program related findings. However, we have not received a response to serious deficiencies which were notedin the Fiscal Management portion of the Review. It is our understanding that the City of Plymouth is providing accounting services for the Section 8 Program through the use of a fund accounting system for all Housing Programs and Activities. This system is not in accordance with HUD requirements. Handbook 7420.6, Chapter 3, requires that a single set of books be maintained for the Section 8 program.. The books of account must at a minimum contain the following records: a. Cash Receipts Register (or Journal) b. Cash Disbi 1.11ents Register (or Journal) c. General Ledger d. Incase Ledger e. Ewe a Ledger f. Journal Vouchers g. Vouch Check h. mousing Assistance Payments Register Mr. Dale's salary and soma or all of the secretary's salary arse currently dwi wad to the housing fund, y,-'- neither work full, time with the Section 8 program. Staff salaries for the Section 8'program must be prorated based an the percentage of total work time e)Tended on the Section 8 program. Other expenditures for the Section 8 program must also be charged to the Section 8 budget. HUD requirements regardLng maintenance of a separate set of books for Section 8 are very specific and must be ad -red to as agreed upon in your original Administrative Plan, and as. required by the Annual contributions Contract. The Administrative Plan also indicates that the Executive Director is to be the program staff person and is to be responsible for all da; to day operations of the program. LY actuality, it appear Haat the Associate Plazz,.^,r thea all of the resp"ibilitfes of the described Executive Director position but does not have the authority originally designated as necessary cc carry out program functions. In view of these conaerro, it is necessary to revise either the Administrative. Flan or actual practice so that both are in agr+ee:ent. Also, it is necessary that the Housing Authority develop a Nenent Services Contract with the City of Plymouth defining the areas and extent of housing management services to be performed by the City for the Section 8 program. Such a contract should be consistent with statutory provisions and with the Annual Contributions Contracts and include definition of accounting procedures, internal fiscal control systems, administrative organization, equal employment opportunity, insurance and procurestent. We suggest that the contract term be for one year to coincide with thL Housing Authority's fiscal year. Please respond within thirty days regarding the three iters I::sted below: 1. Development of an accounting system that meets HUD guidelines, including a proration system for salaries and other costs. If this does not seen feasible, the Authority may elect to hire a fee accountant to handle the Section 8 program. 2. Revision of Administrative Plan. or practice as descriLed above. 3. Development of a Manu Services Contract with the City. if you have questions regarding this matter, please contact Arnold Rasnusssen, Housing Management Officer, at 725-4834. Sincerely, Thomas T. Feeney Am Manager i ATE, August 8. 1980 TO: RRA Commissioners FROM: Milt Dale CITY OF PLYMOUTH TELEPHONE %6121 659-2$00 MEMO sUejEcT: Additional Agenda Items for August 11, 1980 Meeting FINANCING: 11(b) Staff would like to have the Commissioners review the matter of 11(b) financing as it relates to the Plymouth HRA. On November 19, 1979 the issue was before the Commission with the. Commissioners directing staff to investigate this financing proposal in a more det6iled fashion. The City Manager and the Planning Director will be prepared to discuss this financing method and the obligations it imposes at the August 11th meeting. Attached ate minutes from the November 19, 1980 HRA meeting and some of the materials relative to this matter that were submitted by Dominium Group, Inc. NEW SECTION.8 INCOME LIMITS As of July 1, 1.980 the Office of HUD has raised the income limits to qualify a person for persons) for the Section 8 Program by better than 12% over the previous income limits. These income limits are now as follows: No. of Persons Lower Income Very Low Income one 13,200 8.250 two 15,100 9,450 three 17,000 109600 four 18,900 11.800 five 20,050 12,750 six 21,250 13.700 seven 22,400 149650 eight or more 23,600 15,600 1981 HRA BUDGET Attached is the budget for the Plymouth NRA for the fiscal year of 1981. This budget will go on the the City Council for their adoption. Attached is a resolution adoptingthisbudget. 7(, PAbF I 4:ITV OF PLYHOUIN OPERATING BUDGET" FOR THE: YcAR 1981 HOUSING REDEVELOPMENT AWN FOOD ACTtVITY 207 207 1960 EXPENDED 1900. 1981 1901 REVISED AS OF CSITMATED REQUESTED MANAGERS BUDGET 31•31-80 EXPEND. BUDGET BUDGET PCRSONAt. SERVICES 601 REG SALARIES 24,543 9,400 23,912 26,623 26,623 603 WERTIME 500 116 250 250 250 xrM...rwrrr rw-,wrww wr.. r+.+r.+.rr.rr rwr r. rrr a..+.; 00*10YAL PERSONAL. SERVICES 251041 9,526 24#162 261873 26,:87 KATORIA..CS AND SUPPLIES 701 LIFPICE SUPP SO 56 300 347 347 702 PRINT &.PUBLISH 50 0 s0 56 56 703 POSTAGE 260 76 175 223 223 744 XEROX 672 0 672 753 755 731 PHOTOGRAPHY 25 2 60 67 67 TOTAL MATERIALS AND SUPPLIES 1,065 134 1,257 11440 11448 CONTRACTUAL BERVICEE 802 LEGAL 11000 0 0 1000 11000 803 AUDIT 1,,000 0 11800 2,021 2,021 010 OT CONT PRO SER 43,300 111234 43,300 47,850 47,850 816 DUES & SUB 0 25 25 50 50 024 LIABILITY INS 10722 295 i#.72.2 11934 11934. 025 GR LIFE 108 158 0 107 114 114 026 GR NOSP INS 1;037 0. 629 700 700. 027 WORKN.EN$ COMP 1,277 1,277 1,277 1,434 1#414 878 AERA 1,321 O 1#014 2,041 2,041. 929 F2.CA I,472 0 910 1,111 18111 831 LG TERN Oise 197 0 151 212 212 032 DENTAL INS 309 0' 255 277 277 037 RENT PRIV PROP 146,880 63,209 251,194 176034 176#334 018. RENT CITY EQUIP 1,709 302 1,209 11350 11350 099 RES FR CONTING 751000 0 0 0 0 T.OTAL CONTRACTUAL SERVICES 27.5,957 76,342 204,993 236,436 2361436 DFPT TOTALS 302,065 0.6,002 230,412 264,757 264,757 FUND TOTALS 302.065 86,002. 230,412 2641757 264,757 7(, PAbF I BANES ffe"IflAfte CURRENT AD VALOREN NfITOTAL. TAXES RECEIVABLE IWW... REVENUES HRA FUND ADMIRSTP.ATI.V.E FEES 6&C# .a RENT ASSISTANCE CC= 233 LARD Q$tIT6$OVtt COMM DEVEL. BLOC1 GRANT 0*01TOTAL OTHER REVENUES FUND TOTALS PAGE 1 wJ CITY OF PLYMOUTH SUMMARY OF REVENUE FOR THE. YEAR 1981 Wt 1988: REVENUES 1-980 1981 ACTUAL ADOPIED RECEIVED ESTIMATED MANAGERS EVEHuc BUDGES 4•-30-80 REVENUE EBT. REV. 11,073 177305 0 17,303 14,693 16073 17p3Q5 0 17,305 14,693 64,602 0 0 0 0 i.S:8d3 19,63A 0 19,630 237880.. 0 146,830 0. 146,830 76,334 0 750040 0 73,000 0 439306. t.77315 41,3.00 47,850 t20,465 204,760 17015 284,760 250,044 t3t,538 302,045 17,315 Y 302,065 264,757 ---------- PAGE 1 wJ EIPRI FINANCE DIVISIONA603Gov¢mm¢nt CenterMinneapolis,Minnesota 55487 June. 20, 1980 Housing and Redevelopment Authority- City uthorityCityHall 3025 Harbor Lane Plymouth, PIN 55441 Gentlemen: z J4t Because of various concerns, the Hennepin County Board of Commissioners has asked the Department of Property Taxation (formerly the Finance Division) to develop policies for the private sale and conveyance of tax forfeited property. Principle concerns include: 1. The significant inventory of unsold tax forfeited land arising because municipalities have not approved the sale (nearly 1,000 parcels at this date) ; 2. The significant number of private sales and transfers of forfeited parcels to governmental subdivisions, with or without payment. Transfers and sales to governmental units have exceeded the number of parcels offered for sale to the public for several years; 3. The increasing number of purchases by municipalities for resale to private parties. A proposed resolution has been drafted to respond to these concerns and is enclosed for your review. The stays and Means Committee of the County Board will consider the resolution at its July 24 meeting. You are invited to submit written comments on the proposed resolution. Please send your response to me no later man July 11. I will promptly distribute it to the members of the Board. Also advise if an appearance at the July 24 meeting is planned. Applications pending at this time for conveyance or private sale are being forwarded to the County Board for approval. The pending applications are not subject to the proposed resolution. Since y, Ye no T. Hoppe Director of Property Taxation YTH: jg Encl. HENNEPIN COUNTY art equal opporlunNy employer DRAFT DRAFT RESOLUTION NO. The following resolution was offered by WHEREAS, numerous requests havebeen received for private sale or for conveyance of tax forfeited lard without monetary consideration to municipal- ities and other governmental subdivisions of the State, and WHEREAS, no estabiished written policy exists on this matter, BE IT RESOLVED, that it shall be the policy of the Hennepin County Board of '0ommissioners to maximize collections of delinquent property tax by selling tax forfeited land. Further, future tax collections should be. maximized by transferring tax forfeited land to private ownership via pubiic sale whenever possible,thereby returning it to the tax rolls. BE IT FURTHER RESOLVED, that tax forfeited land will not be conveyed to governmental subdivisions unless the current appraised value is paid; however, appiication for conveyance without monetary consideration will be considered by this Board if the land has been offered at public sale and remains unsold for three years or more. BE IT FURTHER RESOLVED, that the acquisition:of tax forfeited land by a governmental subdivision for resale, per se. shall be deemed to be not a public purpose, and private sale will not be authorized unless it can be clearly shown that resale is for a public purpose. However. Housing and Redevelopment Authorities and other gove.io. ntal subdivisions of the state expressly authorized by law to resell, lease or transfer property are excluded from this provision. BE IT FUR.HER RESOLVED, that an application shall be required to request private sale, and the application shall be accompanied by a resolution of the governing body specifying the public purpose or intended public use for which the tax forfeited land is being acquired and the need for the land. An application will not be considered unless received at least ten days prior to the first publication of the notice of public sale of thee subject property. BE IT FURTHER RESOLVED, that the purchase price at private sale may be paid over a three-year period commencing on date of sale if the governmental subdivision has budget or levy limitations that do not permit cash purchase. Interest shall be payable at the rate prescribed by law for sales to the public. BE IT FURTHER RESOLVED, that municipalities are requested not to withhold approval of sale of tax forfeited land except.when they indicate intent to purchase within the period specified=in Minnesota Statutes. Section 292.01. BE IT FURTHER RESOLVED, that on a showing of unusual circumstances and hardship the Board of Commissioners may, by specific resolution. approve a variance to these provisions. DRAFT DRAFT DRAFT COMM METROPOLITAN COUNCIL v -11 's` 300 Metro Square Building, Saint Paul, Minnesota 55101 e.,-1 T MEMORANDUM June 26, 1980 d • ` TO: FROM: A.drey Anderson, Housing Planner SUBJECT: Annual Subsidized Housing Update The Metropolitan Council. is once again updating the "Subsidized Housing.Activity" report through December 1979. This information is important because it is used in the Subsidized Housing Allocation PlRn, housing performance evaluation and in a number of other reviews. Because we want the report to be as accurate as possible,. we are submitting the information gathered for 1979 to each community for their review prior to publication of the report. The information we are submitting to you includes:. 1. Section 8 New Construction proposals approved for funding in 1979. • If we have a name for the project we will include it. We will also indicate the family/elderly distribution of units. 2. Section 8 Existing units funded (or placed under contract) in 1979 (also showing family/elderly distribution). 3. Number of homes funded in 1979 through the Section 235 program. 4. Farmers Home Administration developments. The information we have compiled has been obtained froma joint status report on subsidized housing prepared by the Department of Housing and Urban Development and the Minnesota Housing Finance Agency and reports prepared by the Farmers Home Administration. Please review the attached material, make whatever comments or changes may be necessary, and return to us by July_ 5 _ If you have any questions., please contact me at 291-6380.. THANKS FOR YOUR HELP! ama E." M, SECTION 8 ,'fKP COINSTRUU T ION No. of :mils (F.`E)* Prop ect Name 39 (39/0) Ki m-:jerly :eadc-,,as; lbo SECTION S EXISTING** 235 HOMES FARMERS HOME ADMINISTRATION DEVELOPMENTS No. of units WE) Project Name TOTAL NURBER UF UNITS FUNDED IN 1979 Family/Elderly distribution If a nnalive riuri.ber is indicated, that MeanS that fin January 1, 1980 your copy. pini ty' s total number of existin.,g units under con:Tact was less than *n 1/1/79. FINANCE DIMSION A606 Govemment Center Minneapolis, Minnesota 554$7 HENNEPIN 1i"d 27, 1980 Director Plymouth HRA 3025 Harbor Lane Plymouth, MN 55441 Dear Si r: lilya4z" At the request of Commissioner Robb, a copy of the "Recommended Policy for Transfer of Tax Forfeited Land to Governmental Subdivisions" is forwarded for your information and consideration in conjunction with the proposedresolution sent to..yau under cover tetter dated,June 20, 1.980 from Mr. Vernon Hoppe, Director of Property Taxation. If you have any questions concerning this enclosure, feel free to phone me at 348-5668. Sincerely, Vernon T. Hoppe . Dire r of Property Taxation B Gerald W. Pahl Senior Administrative Assistant jWP: smt HENNEPIN COUNTY an equcs! opportuMty mpbbvef TAX FORFEITED LANG RECOMMENDED POLICY FORTRANSFER TO GOVERNMENTAL SUBO VISIONS Prepared by: DEPARTMENT OF PROPERTY TAXATION June 12, 1980 Policy for Transfer of Tax Forfeited Land to Governmental Subdivisions 1. Back round A. Private Sale 6e'} re' taxi— Forfeited land is sold to the public, governmental subdivisions of the State and State agencies may acquire by two methods. By the first method, the County Board. may sell at private sale at the appraised value as determined by the County Assessor. The tax forfeited land may be sold for any public purpose for which the subdivision is authorized to acquire property. After the initial sale, the property can be later used for another public purpose or resold without restriction.. B. Conveyance wit.'-,vt F:yment Thesec Gd met".: W acquisition, specified in Minnesota Statutrs, Section 282.01, Subdivision 1. is by conveyance by the Commissioner of Revenue without payment for any specified public use. Favorable recommendation by the County Board is required on application to convey. Governmental subdivisions, except Housing and Redevelopment Authorities, must obtain approval of the County Board and the Crainissioner of Revenue if some other public use of the land is desired. If the land is not put to the specified use within five years from conveyance, or if the use is abandoned, the property may revert to. the State. .Because of these restrictions and conditions., subdivisions may oat to purchase at. private sale instead. C. Winsi l rovai to Sell Oefore tax forfeited lire! can be ;old by the County, the municipality in which it is: located ;rust approve the sale; :however, some municipalities have habitually failed to respond to requestsffor approval of sale. By recent corrective legis- lation such non -response constitute; approval after 90 days. However, municipali- ties still have the right to expressly disapprove the sale. 11. Concerns r A. L.aarrge..Inventory_ At this t1me, there are 944 parcels of tax forfeited land which the County cannot. sell because the municipalities have failed to approve the sale or have expressiy disapproved for reasons of zoning considerations, determinations that the land is unbuildable because of small size, irregular shape, drainage problem, etc.; dis- approva'c may also be for possible future acquisition into a park system or for many other reasons. (Refer to exhibit #1 for a breakdown of the number of tax forfeited parcels currently withheld from sale in each municipality.) Because sales of parcels Pverage about 100 each year, this inventory of more than 900 parcels that cannot be advertised for sale is significant. in addition to tije delay in realizinc, tax revenue, the. County nuist incur substantial maintenance costs during the holding period. B. Loss of Tax Revenue. Aiso ofconcernis the large number of requests to convey tax forfeited land to governmental subdivisions, either at private sale or without consideration. (See exhibit b2 for number of requests from each municipality since January 1, 1978.) Free conveyances outnumber private purchases 387 to 70, and the combined toolj exceeds sales to the public for the comparable period. P. Policy/Tax Forfeited Land Page 2 After payment of special asEessments, the proceeds of tax forfeited land sales are j distributed 40% to the County, 20% to the town or city and 40% to the school district) To the extent that the lard is conveyed free of chsroe to a governmentai subdivisiojl, tax .proceeds are diverted from the others. Since most of the c mveyances are to i municipalities or HRAs, the County and school district lose tax revenue. C. Resale to Third Parties There agrowlg practice by a few municipalites to acquire tax forfeited land at private sale to resell to private parties, freqt!ently an adjacent landowner, at a price negotiated between the city and the buyer. This appears to be in violation of the spirit of the law providing for sale to the public at the highest bid. Further unless there are extenuating. circumstances, the resale practice appears to be for a private purppse instead of a public purpose permitted by law. III. Recommended General Policy A. Maximize collections of delinquent property tax by selling tax forfeited property when it is feasible to do so. B. Maximize future tax collections by transferring tax forfeited land to private ownership whenever possible, thereby returning property to the tax rolls. IV. Specific Recommendations A. Discontinue conveyance without :monetary consideration, regardless of use, unless the property has been offered at public sale and remains unsold for three years or more. B. Allow private sales to governmental subdivisions at the current appraised value, subject to conditions and terms that follow. C. Allow no private sale if the rOurpose of acquisition is to resell to a third party unless the acquiring subdivision can clearly show that resale is for a public purpose. In general, acquisition for resale is deemed not to be a public purpose. 0. Allow Housing and Redevelopment Authorities to aceuire ly private sale at the current appraised value, regardless of use. Timely notices of recently forfeited land available for sale will be sent to each H.R.A. in the County. E. Require that applications be submitted for private sales, together with a resolution of the governing body, specifying the -intended public use or purpose and the need for the land. To be considered, app;ications must be received at least ten days prior to the first publication of the notice of public sale. F. Allow '_rmis, riot to exceed three years, if -governmental subdivisions have budget or levy limitations that prohibit cash purchase. Interest should be paid at eight percent per annum, the rate in effect after July 1, 1980. G. Request municipalities not to withhold anpr ,:zl of sale of tax forfeited land except when they indicate intent to purchaac within the period specified in Minnesota Statutes, Section 282.01 (one year). hxuiblt P TAX. FORFEITED LAND wr- %ELD FROM PuBLYC SALE Governmental Subdivision (includes H.R..A.'s) Number of Parcels Bloomington 17 Brooklyn Center 7 Brooklyn Park 15 Champlin 13 Corcoran. 1 Crystal 6 Eden Prairie 16 Edina 26 Golden Valley 62 Greenwood 2 Hassan Township 3 llopktns 14 Independence 4 Long Lake 1 Maple Grove 16 Maple Plain 3 Medicine Lake 1 Medina 101 Minneapolis 103 Minneapolis 11. R. A. 8 Minnetonka 177 Minnetrista 74 Mound 130 New Hope 11 Orono C 38 Osseo 4 Plymouth 15 Richfield 5 Robbinsdale 20 St. Anthony 2 St. Louis Park 21 Shorewood 3 Spring Park 2 Tonka Bag 19 Minnesota State Highway Department 4 TOTAL Parcels Now Withheld From Sale 944 Subdivisions not lioted are not presently withholding land from sale. Prepared by the Department of Property Taxation --- June 8, 1980 Exfiibit 2 RW1ESTS FOR: PRIVATE SALE OR COTdVEYANCE OF TAX FORFEITED LAND (Since January 1, 1978) Gove*ntal Subdivision. Private Sale s, ConvPyances Total Bloomington 9 9 Bloomington H.B.A. 3 3 Brooklyn Center 5 S. Brooklyn Park 14 14 Champlin. 16 16 Crystal 2 2 Crystal R.B..A... - 1 l Dayton 4 4 Deephaven 2 2 Eden Prairie 14 14 B. ina 11 1:1 Excelsior I 1 Golden Valley H.R.A. 31 37 Greenfield 1 1 Hopkins 1 I Independence 3 3 Maple Grove 8 8 Maple Plain 1 1 Medina 1.9 19 Minneapolis 1 8 9 Minneapolis H.R.A. 19 14 33 Minnetonka 76 76 Mound 13 68 81 New Hope 1 1 Orono 3 18 21 Osseo 9 9 Plymouth 34 34 Robbinsdale 3 3 St. Bonifacius 3 3 St. Louis Park 19 19 Spring Park 1 1 Tonka. Bay 8 8 Wayzata 3 3 Woodland 2 2 Hennepin County Park Reserve District 1 1 Hennepin County Public Works 1 1 TOPAZ Parcels, Since 1-1-78 70 387 457 Subdivisions not listed have not had any requests for private sat or conveyances during this period. Prepared by the Department of Property Taxation --- June 8, 1980 4W itt 11 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON. OX - 20410; lowf OPPIC6 OP TME ASSISTANT SQCR.ETAAV POR MOUSING — PEOSRAL 140usING COMINIss10NElt JUL 3 - MEMORANDUM FOR: See List Below 1111i vA IN AiPLV TEE Subject.: Approval of Revised Income Limits Based on 1980 Mediad FamilyIncomes Transmitted herewith are revised income limits for "lower income families" and "very low income families" pursuant to Section 8 of the U. S. Housing Act of 1937, and for families eligible for assistance under Sections 221(d)(3), 235 and 236 of the National Housing Act. These revised income limits as set forth by dollar amount. and family size in the attached state lists are hereby approved. with an effective date of July 11, 1980. In accordance with established policy, the income limits for "lower income families" pursuant to Section 8 of the U. S. Housing Act and income limits for families eligible for assistance under Section 236 of the National Housing Act have been computed for the four -person family on the basis of taking the higher of (1) 80 perc,:rt of the Secretary -determined median family income for the area or (2) in the case of Standard Metropolitan Statistical Areas (SMSAs), 80 percentof the applicable Census Region median family income or, in the case of non -SMSA counties, 80 percent of the applicable non -SMSA Census Region median family income. Income limits for families eligible for assistance under Sections 221(d)(3) and 235 of the National Housing Act have been computed in a similar manner with the four - person limit based on 9S percent of median family income. In accordance with statutory definitions, the income limits for "verylowincomefamilies" pursuant. to Section 8 of the U. S. Housing Act have been computed on the basis of taking 50 percent of the Secretary -determined. median family income for the area. Since there is no statutory authorityformodificationoftheincomelimitsfor "very low income families", the alternate use of the Census Region median family incomes is not employed in these income limit calculations. These current income limit revisions include approval of Section 235 income limits for selected areas based on recent Field Office requests submitted in accordance with the procedures established by Notice H 76-128. These procedures have been modified to reflect the decrease in the Section235interestratefrom5percentto4percent, and the allowance of a 2- 3600 band of eligibility instead of the origi,,ai $1200 band or the $2400 band approved in July 1979. All future Field 01'fice proposals for approval of Section 2.35 income licit based on these procedures are to incor orate the use of the $3600 band of eligibility. The newly approved incone limits for _ach of the five designated pro- gramsare identified by asterisks on tht computer produced state lists which are attached for each Field Office. the effective date of July 1, 1980 is. shown as 800701 in the computer pr'n:t-out format. HUD Field Offices are resrarsiole fcr maintaining complete and up to date records of all current income limit ceilings established for areas within their jurisdiction. Notice of all income limit revisions should be promptly distributed to program participants, and field offices should be prepared to make income limits available to the public upon request. If you have any questions concerning these new income limit approvals or the procedures for requesting special revisions, please contact Vince St. Clair of the Headquarters Economic and Market Analysis Division whose Dhone number is 755-5816.. t wredeq B. Simons Assistant Secretary Attachments Addressees: Regional Administrators Regional Economists V Area Managers Area Economists a DEPARTMENT OF MOUSING AND uRoi;.•it QEVELOPWMT MINNEAPOLIS -ST. PAUL AREA OFFICE 6100 FRANCE AVENUE SOUTH MINNEAPOLIS, MINNESOTA 55= RECIOX V July 7, 198E Mr. fames W1111e Executive Director Plymouth Housing 6 Redevelopment Authority 3400 Plymouth Blvd. Plymouth,. 0 55441. Dear Mr. Willis Subject: Plymouth, MH section Si FM11 in 06PLT Rassa ra- 5.6HDV:RFC:dj S a g 0 Based on a review of comparable rente conducted in the plymouth market area June 26, 1980, an increase of 10% in the PMR schedule for 36 or 50X of the 72 units is authorised. sincerely,; Thomas T. Feeney Area Manager DEPARTMENT OF PROPERTY TAXATION A606 Govemment Center Minneopoft, Minne.*oto 55487 HENNEM July 179. 1980 Plymouth Housing and Redevelopment Authority 3025 Harbor Lane Plymouth, MN 55441 gentlemen: have received a number of responses and comments concerning the proposed oolicy for private sale and conveyance of tax forfeited property to governmental subdivisions. To allow adequate time for thorough evaluation of the responses, the proposed resolution 'has been removed from the July 24, 1980 agenda of the County Board. Board action on the proposal has been suspended until further notice. in some instances, it may be of value for our staff to meet with local officials on this issue. Such meeting., we think, would be beneficial to all concerned.. Yoe will be notified well in advance of rescheduling of this matter before the County Board.. Thank you for your cooperation in this effort. Since y, ernon T. Hoppe Director of Property Taxation VTH:jmg HENNEPIN COUNTY an equal oppoftft emooM