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HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 12-06-1982AGENDA PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY Regular Meetint.. December 6, 1982 6:30 P.M. i. Roll Call II. Approval of Minutes for September 27, 1982 Meeting III. Section 8 P.mgr-..m Funding Beyond October 1983 IV. Section 8 Management Review Findings - Progress Report V. Section 8 Average Monthly Rent Subsidy Payments, 1977-1982 VI. Housing Rehab Program - Progress Report VII. Additional Housing Programs VIII. Adjournment CITY OF PLYMOUTH 3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447 TELEPHONE (612) 559-2800 DATE: ' December 3, 1982 MEMO TO: FROM: HRA Commissioners Milt Dale SUBJECT: Section 8 Program Funding Beyond October 1983 The current Section 8 Rent Assistance Program Annual Contributions Contract ACC) expires on October 12, 1983. It has been a concern of staff that Section 8 renters and apartment owners be given ample notice as to the future of Section 8 in Plymouth. Since July of 1982 I have attempted to receive a response from the HUD Area Office if there are sufficient funds to continue Section 8 in Plymouth beyond October 1983. The attached letter indicates there are sufficient federal funds set-aside to maintain Section 8 in Plymouth at least through December of 1984. Therefore it will require the Plymouth HRA and the Plymouth City Council to determine whether Plymouth is best served by continuing Section 8 under local administration. Since Section 8 rental leases are for a one year time period, I do urge an early resolution of this matter, since leases written as of November 1, 1982 are not guaranteed to be funded by the federal government beyond the ACC date of October 12, 1983. Attachments: 1. Resolution 2. Letter from Robert B. Gerber, HUD, 10-20-82 HOUSING AND REDEVELOPMENT AUTHORITY CITY OF PLYMOUTH Pursuant to due call and notice thereof,a meeting of the Housing and Redevelopment Authority of the City of Plymouth, Minnesota was held on the day of 19 The following members were present: The following members were a sett: www move3 its adoption: Introduced the Fallowing Resolution and HRA RESOLUTION NO. REQUEST TO THE PLYMOUTH CITY COUNCIL TO CONTINUE LOCAL ADMINISTRATION OF THE SECTION 8 PROGRAM WHEREAS, the Section 8 Existing Rent Assistance Program in Plymouth under local administration has assisted a significant number of lower income persons over the past five years to maintain or to locate their residence in Plymouth; and, WHEREAS, the continuance of the Section 8 Program in Plymouth through December, 1984 under local administration would serve to allow those lower income persons now living in Plymouth to maintain their residence in the community and would afford them the opportunity to contribute to the general well-being and diversity of the City; and, WHEREAS, the City has received, under a letter dated October 20, 1982 from the Department of Housing and Urban Development, confirmation that the City's ACC with HUD, #C-4070, is due for renewal in October 1983 and that sufficient funds remain to allow for the renewal of the contract at least through December 1984; NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Plymouth that the Plymouth City Council be requested to make provision in the 1984 City budget to retain sufficient funds to administer the Section 8 Program locally. The motion for the adoption of the foregoing Resolution was duly seconded by and upon vote being taken thereon, the following vote n avor tereof: f : `05w ng voted against or abstained: whl."- z--:,_n the Resolution was declared duly passed and adopted. wirer www wry CITY OF PLYMOUTH 3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447 TELEPHONE (612) 559-2800 DATE: December 2, 1982 MEMO TO: HRA Commissioners FROM: Miles Dale SUBJECT: Section 8 Management Review Findings - Progress Report In late October of 1982 staff received a letter addressed to Chairman Rod Hillstrom from the local HUD Area Office. The subject of the letter was the clearance of the Section 8 Existing Program Management Review Findings of June 1982. This letter, from Robert B. Gerber, Acting Area Manager, indicates that all eight findings are cleared subject to review by the area office sta`f during a future site visit. In my analysis of the letter I do believe there are several statements that were made that need further clarification. As well, I shall be in touch with the HUD Area Office in regards to my response.to the individual file findings and report to them specific actions taken and the date such action were completed. These file findings relate to six specific Section 8 Renter files that were examined by the HUD Area staff in their June 1982 Management Review. As of this writing I have drafted responses to four of the six tenant file findings. By January 1, 1983 I anticipate to have this item completed and cleared. I will inform the Commissioners of the status of this item at its January 1983 meeting. Attachments: 1. Copy of Letter to Thomas Feeney, 9-22-82 showing current status of corrective action" items. 2. Letter to Thomas Feeney, 10-28-82. October 28, 1982 Mr. Thomas Feeney, Manager HUD Area Office 220 South 2nd Street Minneapolis, MN SS401 Dear Mr. Feeney: 1 CITY C) PLYMOUTR On September 22, 1982 I indicated in a letter to you that a number of items would be done by our office to comply with certain HUD requirements as per earlier Section 8 Management Reviews. One deadline we established was November 1, 1982. herewith is the information earlier indicated would be, at that time, forthcoming: 1. Briefing Packet - enclosed 2. Waiting List - enclosed 3. Memo relating to Section 8 Inspections - enclosed Other items will either: 1. Follow and/or 2. Require a later staff inspection tour by your HUD field office to verify compliance Sincerely, Milt Dale Associate Planner/Plymouth HRA MQ/1g ENCLOSURES (3) P1 YVe)", TL -i r:. 1!. .i7." f'_1 /41 !t'.. .t !It.' `ti . „ rr.I CEJ rots' ai tt' .'1 1 r, CITY OF PLYMOUTH 3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447 TELEPHONE (612) 559-2600 DATE: November 30 1982 MEMOEMO T0: HRA Commissioners FROM: Milt Dale SUBJECT: Section 8 Average Monthly Rent Subsidy Payments It is required by HUD that the Plymouth HRA submit a quarterly Requisition for Partial Payment of Annual Contributions for the Section 8 Program. One item requested on each quarterly submittal is the average monthly rent subsidy payment per unit. It seemed appropriate to chart the rise and fall of the average monthly subsidy payments from the star -c of Section 8 in Plymouth to the present time. Since HUD's request is fur the average monthly housing assistance payment (HAP) per unit as of the date of requisition, the months of the year turned out to be February, May,uugu_tanTWovember. The significance of the chart is the fall of the November, 1982 average sub- sidy amount to $229. A recent HUD rule change as cf August 1, 1982 revised the percentage of adjusted gross income each Section 8 tenant was to pay for his/her share of rent. In the case of current Sect ion 8 tenants, this amount was to be 26% until October 1, 1982, and then 21% until October 1, 1983, then 28%, etc. New Section 8 tenants pay 30% if they have entered the Program after August 1, 1982. It does appear that this change could help to serve as a "brake" to the continual escalation of subsidy payments. Attachment: Chart SECTION 8 AVERAGE MONTHLY RENT SUBSIDY PAYMENTS November 1977 - November 1982 Until September 1, 1982 Section 8 tenants paid 25% of their adjusted income for rent. As of September 1, 1982 tenants paid either 26% or 30% of their income while as of October 1, 1982 tenants paid 27% or 30% of their income. This is what accounts for the significant drop in the average subsidy payment, ie in August 1982 it was a $239 average while in November 1982 it was $229. A 52% increase in average subsidy payments occurred between November 1978 and November 1982. CITY OF PLYMOUTH 3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447 TELEPHONE (612) 559-2800 DATE: ' December 2, 1982 MEMO TO: HRA Commissioners FROM: Milt Dale SUBJECT: Housing Rehab Program - Progress Report Currently the Housing Rehab Program (also known as the Home Improvement Grant Program) is in Year VIII of the CDBG funding program. A total of $34,000 was allocated for this year's activity which began July 1, 1982 and continues through June 30, 1983. During the last three months we have received 12 applications for rehab grants while normally over the same time period we may receive 3 or 4 applications. Since all but one of the applicants is qualified, there appears that this year's funding will not be sufficient to meet the current demand. There are two ways to resolve this dilemma. Since Plymouth serves eligible homeowners on a "first come, first served" basis, those homeowners who have recently submitted applications may have to wait until the start of a new funding cycle in July of 1983. The other alternative, which was done in 1980, would be to reallocate funds from other CDBG project (s) to the Housing Rehab Program. At its last meeting in November, the Plymouth Housing Rehabilitation Committee recommended that the Plymouth HRA be asked if additional funds could be made available for Year VIII. The committee believes they have been very careful in approving only those work items essential to maintaining homes in a safe and energy efficient manner. Attached is a copy of the minutes of the last meeting. (I have deleted out names of grant applicants to protect their con- fidentiality and in accordance with the Minnesota Government Data Practices Act.) Staff estimates that an additional $30,000 may be necessary to provide adequate funding for this Program through June of 1983. Incidentially, the funding for this Program was down $8,653 from what was available the previous year. Also, it seems there is an increased awareness of the need for energy reduction methods to reduce the cost of home heating along with a growing number of eligible homeowners. In checking Year VIII activities, there are two possible sources for additional funds: 2. HRA Commissioners December 3, 1982 Page -3 1. Contingency fund. May 1982 that the allocated.) Created when Hennepin County indicated in City would receive $10,611 more than originally 2. Site acquisition/assisted housing fund. After the recent purchase of a site for future senior citizens housing this summer, a total of $23,916 remained unspent. It should be stressed that some of this money may be required for architectural fees, surveyors fees, etc. prior to site development. Attachments: 1. Minutes of November 16, 1982 Housing Rehab Committee 2. Memo to HRA and City Council, 7-29-82 3. Planning Area 2 - Project Status Report 4. Map, December 1982 MINUTES OF REGULAR MEETING OF THE HOUSING REHABILITATION COMMITTEE OF PLYMOUTH, MINNESOTA November 16, 1982 A regular meeting of the Housing Rehabilitation Committee of Plymouth, Minnesota was held on the 16th day of November, 1982 at 6:30 P.M. at the Plymouth City Center. Committeemembers present were Mark Eckes and Dick Lee. Also present was City staff person Milt Dale and City resident Absent was Committee Chairman Mac McCaughey. The first order of business was the request of for new storm windows, additional insulation, insulation chutes and the completion of his hot water heating system. Mr. 48W indicated that he has aluminum storm windows inside of wood inserts at the present time but they are very leaky and he would like to replace these windows with conventional wood storm windows. Committeemembers asked how many windows there are in his home and he indicated a total of 26 windows. Mr. NN1W stated that he had a hot water heating system with boiler set-up to heat his workshop in his double garage but he has been unable to afford to extend the system to his house. This would require the addition of considerably more hot water pipe, valves and radiators to complete the job. He estimates that if he did the work himself it would cost approximately $2,000. Committeem.,mber Mark Eckes asked how much he pays at the present time to heat his house. Mr. dbjkWa stated that last year his heat bill was over $800 for the year. Committeemember Eckes stated that Mr. 411wlnshould receive two estimates for storm windows and isolation but they would not consider the extension of the hot water heating system since he already has a functioning furnace. Committeemember Eckes believed that the addition of new windows and more insulation would assist the homeowner considerably in lowering the cost of heating his house. Staff presented the committee with a list of housing rehab applicants as of November 15, 1982. There have been approximately 10 new applicants since August of 1982. Staff also presented copies of thank -you letters from . The matter of old business was discussed and staff gave a review of what work has been done since the last committee meeting. Staff indicated that at the 40M 41WAW residence one of the contractors had failed to complete all of the work items in a satisfactory manner. Staff had discussed this matter with the home- owner, a list was drawn up itemizing each work item not completed properly and the cost to complete each item. Since the contractor who started the job has relocated to Montana, a second contractor, Bob Johnson, who also worked on the NVAWhouse was asked by the homeowner to determine what it would cost to complete the unfinished work items. Staff dict discuss this possibility with Mr. Johnson who indicated a willingness to finish the job provided he be paid as per his estimate. Some of the work done previously will have to be redone but it appears the final cost should not exceed the original cost estimates. Staff then related the progress on various other projects. Committeemember Dick Lee did suggest that a less ex- pensive way could be found to reduce the possibility of frozen pipes at the I111111r 4WO residence. This could be done by wrapping the pipes with electric tape and insulation thereby eliminating the need for insulating the walls in that portion of the basement. Staff will look into this possibility with the building inspector. Rehab Minutes Page two New business items were discussed briefly regarding the 4BVMW, JW1010 ander Staff was asked were income eligible. Staff indicated that they were. applications of fJJW if all of these applicants The need for additional funds was discussed with the committee recommending that the Plymouth HRA be asked if additional funds could be made available for the Year VIII Rehab Grant Program considering the increased number of applicants over last year. Also the Committee feels they have been very careful in approving only those work items which were most necessary to maintain homes in a safe and energy efficient manner. Committeemember Eckes believed that -Plymouth has been very judicious in its use of grant funds in comparison with other communities. He stated that his opinion is based on what he has observed as a member of the Hennepin County Citizen Planning Area Advisory Committee. The meeting was adjourned at 8:00 P.M. CITY of PLvMourH 3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA SS447 TELEPHONE (612) 559.2800 MEMO DATE: July 29, 1982 TO: HRA Commissioners and City Council FROM: Milt Dale, Associate Planner SUBJECT: Final Funding Allocation for Year VIII CDBG Program Staff was informed in May that the City of Plymouth would be receiving additional CDBG funds over its earlier announced allocation of $114,806. The final funding amount will be $10,611 more or a total of $125,417 for Year VIII. The Plymouth HRA earlier recommended the following project activity allocation: 1. Site acquisition for assisted housing $80,806 2. Housing rehabilitation grant program 34,000 Hennepin County has placed the additional $10,611 in a contingency fund account which will allow the City to use the funds for whatever eligible activity it deem; appropriate. Staff was informed by Hennepin County that Plymouth was in receipt of more CDBG monies due to a recalculation of the City's population based on the most recent 1980 census results. Attached is a resolution approving the year VIII CDBG Program application. Attachment: Resolution , CITY OF PLYMOUTH 3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447 TELEPHONE (612) 559.2800 DATE: ' December 3, 1982 MEMO TO: HRA Commissioners FROM: Milt Dale SUBJECT: Additional Housing Programs There is every indication that the CDBG (Community Development Block Grant) Program will continue beyond July 1983. Consequently, staff is in the pro- cess of assessing what type of programs would be of benef',t to the City now that the major CDBG funding item, the senior citizen housing site acquisition project, has been accomplished. Over the last few years, about 30 percent of the CDBG "pie" has been alioca:ed to the housing rehab program. This leaves a considerable amount if potential funds for the 1983-1984 CDBG year available for other program activities. HUD's proposeO regulations regarding the use of CDBG funds have been relaxed somewhat Eo -phis may allow the City more flexibility in the use of this money should these regulations be approved. Attached is a copy of a recent NAHRO Monitor relative to this issue. Staff wishes to solicit ideas from the Commissioners as to what projects they would like to see implemented. Attachment: NAHRO Monitor, 9-30-82 1 1' A semi-monthly report on issues in housing and community development published as a NAHRO membership service I SEPTEMBER 30. 1982/VOLUME FOUR/NUMBER EIGHTEEN HOUSE, SENATE PASS APPROPRIATIONS BILLS FOR HUD/INDEPENDENT AGENCIES Both the House and Senate have passed appropriations bills for HUD and 17 in- dependent agencies. By a vote of 343 to 38, the House passed a $47 billion appropriations bill (HR6956) September 15. The Senate's bill, passed September 24 by a vote of 73 to 11, also was for 47 billion. Included in the House bill is .an initial appropriation of $1.35 billion for fis- cal year 1983 operating subsidies, $3.445 billion for community development block grants, and $340 million for urban de- velopment action grants. The bill pro- vides $5.9 billion for HUD programs and 4.6 billion for revenue sharing pro- grams. The bill includes approximately 357 million more than the President re- quested for the programs included in the appropriations bill and $472 million more than the funds appropriated for comparable programs in fiscal year 1982. chusetts) said there would be no more than 9.6 billion in new budget authority for subsidized housing. Although the budget resolution calls for $10.4 billion for assisted housing, Representative Boland has suggested the $9.6 billion figure to avoid exceeding the funding ceiling set by the first budget resolution. The first budget resolution established a ceiling of $56.6 billion for the programs contained in HR6956. Because the legis- lation exceeds funding limitations in other categories, the $9.6 billion figure for assisted housing is needed to keep within the total budget limit. The Senate's bill proposes $3.8 billion in new budget authority for subsidized housing. In addition, the bill includes an amendment sponsored by Senator Daniel Patrick Moynihan (D -New York) that would suspend for 90 days the provisions in- creasing tenant rents from 25 to 30 per- cent. The bill provides an additional 1.25 million for congregate housing for a total of $4.75 million. Finally, the The NAHRO Monitor is an official .publication of the National Association of Housing and Redevelopment Officials. 266 Virginia Avenue, N.W.. bill extends the construction deadline for The House deferred action on assisted housing units eligible for the financial housing programs because Congress had not adjustment factor from October 1 to approved authorizing legislation. 'the January 1, 1983. The joint House and deferred programs include annual contri- Senate conference on this legislation will butions for assisted housing, including determine which, if any, of these pro - Section 8 rent supplemental monies, low- visions are retained in the bill's final rent public housing loans, and Government form. National Mortgage Association special as- sistance funds. While the bill provides CDBG RULES REDUCE EMPHASIS funds for existing contracts under these ON BENEFIT TO NEEDY programs, no budget authority was pro- vided for new contracts for assisted HUD's proposed community development block housing. grant regulations for entitlement commu- nities reflect a decreased emphasis on Chairman of the HUD/Independent Agencies benefits to low -;and moderate -income per - Subcommittee Edward P. Boland (D -Massa- sons. The regulations require CDBG pro - The NAHRO Monitor is an official .publication of the National Association of Housing and Redevelopment Officials. 266 Virginia Avenue, N.W.. 2 N " oJ N, 11, mm- n jects to benefit low- and moderate -income persons, to eliminate slums and blight, or to meet urgent needs. However, the regulations delete emphasis on satisfying the major program objective -- to prin- ipa'lly benefit low- and moderate -income persons. The pi :..used regulations give equal weight to a rh of the three program requirr'ne fts. Thi=; is counter to NAHRO's long standing position that the priority of CDBG programs should indeed be the benefit of low- and moderate - income persons. House housing sub- committee Chairma+. Henry B. Gonzales announced September 29 that he plans to hold hearings on the rules "at the first possible time." The regulations were submitted to the House and Senate banking committees for review in mid-September. They are not expected to be published in the Federal Register until after Septeii;5er 30. RM has requested a waiver of the 30 -day delay before the regulations become ef- fective. If the waiver is denied, the effective date of the regulations could be delayed until February 1983. Because most grantees will already have begun obligating or spending funds from their fiscal year 1982 grants before the new regulations become effective, a tran- rhe NAHRO Mon*r;r (15%'X 6194.9268) is published on the 15th and last day or each month for S3 per year(paid as part of membership dues) by the National Association of Housing and Redevelopment Officials. 2600Virginia Avenue. N.W.. Washington. D.C. 20037: 202%333.2020. President— R. Clayton Jones: Executive Director— Robert W. Mafiin: Director of Publications/Com munications— rerence K. Cooper: Editor— Elli J. Moss: Production Manager—Caroline M. Grills: Administrative Assistant—Saarje M. Scott. Second-class postage paid at Washington. D.C. and additional mailing ofrices. POSTMASTER: Send address changes to NAHRO. 2600 Virginia Avenue. N.W.. Washington. D.C. 20037. sition provision is included. The tran- sition provision states that activities funded from fiscal year 1982 appropri- ations will automatically qualify under the primary objectives set forth in the new regulations. The new regulations also clarify that activities approved by HUD prior to 1982 and carried out with CDBG funds from any preceeding year also will be subject to earlier program benefit regulations. All provisions regarding neighborhood strategy areas have been removed. HUD has revised the requirement that activ- ities which reduce the development cost of certain multifamily housing projects be acceptable only if a majority of the units were available to low- and moder- ate -income persons. The new regulations require that only 20 percent of such units be occupied by lower-income persons. The most significant change in eligible activities concerns the implementation of provisions of the 1981 Housing and Community Development Amendments affect- ing public services. COBG-funded public service activities are now limited to 10 percent of the entitlement grant amount, but no longer have to be con- ducted in areas of concentrated redevel- opment activity. Grantees may also provide, as a result of the 1981 amend- ments, direct assistance to private for- profit entities when the activities are related to an economic development project. Minimal revisions were made to the re- uirements for housing assistance plans HAPs). HUD has changed the times and manner for submission of HAPs to require that they all cover the federal fiscal year and be submitted to HUD for review and approval between September 1 and October 31 each year. Exceptions on sub- mission dates are allowed for new en- titlement grantees. These new grantees must submit an interim HAP. For 1982 only, grantees will be able to submit HAPS until December 31, 1982. Grantees with a three-year HAP goal extending beyond fisca'. rear 1982 must submit a new HAP. Generally, these regulations provide en- titlement communities with greater flex- ibility in administering the program, although the accountability standards and procedures for post -grant review and audit remain to be tested. Further revisions of program management provi- sions are expected. HOUSE PASSES $1 BILLION PUBLIC WORKS JOBS BILL The House passed 223-169 a Labor Depart- ment supplemental appropriations bill HJRes562) that provides $1 billion in fiscal 1982 for approximately 200,000 temporary public works jobs. The amount equals 5 percent of the federal govern- ment's estimated cost of unemployment compensation for fiscal 1982. The funds will be available until December 31. Of the funds appropriated, 85 percent will be reserved for individuals unem- ployed for at least two weeks. Jobs provided under the bill can last no longer than six months and the maximum salary allowed is $5,000. Fifteen per- cent of the funds will be reserved for youth employment and training programs of the Labor Department. Most of the funds, 83 percent, will be allocated to local governments in areas with unemployment rates in excess of the national average for the previous three months. Two percent of the funds will be allocated to jobs for American Indians and the remaining 15 percent 3 would be allocated to areas experiencing large losses of jobs because of plant closings, natural disasters, or sudden or severe "economic dislocation." The bill prohibits the displacement of cur- rently employed workers with the supple- mental funds and the substitution of federal funds for local funds. An identical bill (SJRes245) has been introduced in the Senate. If the bill passes the Senate, President Reagan is expected to veto it. Opponents of the bill state that it does not address the unemployment problem because public serv- ice employment seldom leads to permanent jobs and does not teach marketable skills. HOUSE PUBLIC WORKS SUBCOM2MITTEE HOLDS HEARINGS ON INFRASTRUCTURE. The House Public Works Subcommittee on Economic Development began hearings September 14 on the Federal Capital In- vestment Act of 1982 (HR6591). The hearings focused on policies needed to promote economic development by improving the nation's basic Infrastructure. If passed, the bill would amend the federal budgeting process by requiring the sep- arate identification of expenditures classified as public infrastructure in- vestments, including buildings, roads, dams, and transit systems. As part of the fiscal 1984 budget, the bill would require both special analysis of capital projects and a full capital budget that, in future years, would identify past public infrastructure investments for a more complete picture of the nation's assets. Included would be the cost of building and maintaining public facili- ties and the determination of revenue sources for capital investments. Continued on page 8)