HomeMy WebLinkAboutHousing & Redevelopment Authority Resolution 11HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF PLYMOUTH
Pursuant to due call and notice thereof, a regular meeting of the Housing
and Redeveioplient Authority of Plymouth, Minnesota was held on the 23rd day
of May , 1977 . The following members were present:Ac ing a_rman Spaeth
wiing members were absent:
Commissioner Neils introduced the following Resolution and moved
is adoption:
HRA Resolution No. 11
ADOPTION OF THE CITY O; PLYMOUTH'S HOME IMPROVEMENT
GRANT PROGRAM GUIDELINES AND ELIGIBILITY REQUIREMENTS
WHEREAS, the HRA of the City of Plymouth wishes to maintain the City's housing
stock in a sound, energy-efficient and habitable conditi.5ii; and
WHEREAS, the lack of an adequate income and/or advanced age prevents certain
homeowners from making necessary repairs or energy -reduction improvements to
their homes; and
WHEREAS, the City of Plymouth has CORS monies available to assist in meeting
a variety of community needs;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE PLYMOUTH HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF PLYMOUTH, MINNESOTA that it adopt the Home Improvement
Grant Program Guidelines and Eligibility Requirements adop*--d oy the Plymouth
Housing Rehabilitation Committee on May 18, 1977 as amer/jed by the Authority
and attached hereto.
The motion fo• the adoption of the foregoing Resolution was duly seconded by
Commissioner Vasiliou and upon vote being taken thereon, the
following voted in favor th-L-reof: Actinq Chairman Spaeth, Commissioners
Bakke, Neil: and Vasiliou
The following voted against or abstained: None
Whereupon the Resolution was declared duly passed and adopted.
CITY OF PLYMOUTH
HOME IMPROVEMENT GRANT PROGRAM
GUIDELINES AND ELIGIBILITY REQUIREMENTS
Adopted by the Plymouth Housing Rehabilitation Committee
May 18, 1977
Adopted by the Plymouth HRA - May 23, 1977
I. Eligible Properties
Grant Funds shall be used to enable Recipients to improve properties which meet the
following criteria:
A. The property to be improved must not be in violation of applicable zoning
ordinances.
B. The property must be located within the City of Plymouth, must be used
primarily for residential purposes, and must contain no more than two
dwelling units, one of them owner -occupied.
C. Grant Funds must be used to finance only improvements upon or in connection
with existing structures.
D. The property to be improved must be a permanent structure; mobile homes or
traiiers are not eligible.
itE. No property shall be eligible for a Plymouth Home Improvement Grant if
has been improved by such a Grant within the five-year period next preceding
the date on which application for su,J-- Grant is made, except in extra-
ordinary circumstances relating ?:c dap;age to the property as a result of
events beyond the control of the applicant or to failure of plumbing, heating
or electrical systems as determine) by the City of Plymouth; or should a
previous recipient have a need for additional improvements and no other
qualified persons apply, the previous recipient would be considered for a
grant; or if a previous recipient of a Minnesota Housing Finance Agency grant
proves eligible, the they will be considered for the City's program.
F. Properties being improved must constitute a permitted use or be subject to
a conditional or special use permit under the applicable zoning ordinances
including municipal, urban renewal, and development district plans, which
use or permit must not be impaired by the contemplated improvements.
G. The property to be improved with Grant Funds must be reasonably efficient
with respect to energy consumption. Where the property is not reasonably
efficient with respect to er.ergy consumption, Grant Funds must be used,
to the extent necessary, to increase such efficiency. Energy-saving features
shall include, bui not be limited to, installation or upgrading of ceiling,
wall, floor and duct insulation; storm windows and doors; and caulking and
weatherstripping, which are consistent with the energy standards as
promulgated as part of the State Building Code; provided that the improve•
ments need not bring the housing into fullcompliance with such energy
standards.
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I!. Eligible Improvements
Improvements made with Grant Funds shall satisfy the following requirements:
A. Each improvement must be a Permanent General Improvement. Permanent General
Improvements shall include such alterations, renovations, or repairs upon
or in connection with existing structures, which correct defects or deficiencies
in the property affecting directly the safety, habitability or energy con3ump-
tion of ttee property. A Permanent General Improvement must be economically
viable in terms of a determination that after the improvement is made, (i) the
structure will have a remaining useful life such that the amount of the Home
Improvementrant may be amortized over such life in an economically prudent
manner, and
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ii) the structure will be reasonably livable, safe and habitab e.
Permanent General Improvements shall not include materials, fixtures, or land-
scaping of a type or quality exceeding that customarily used in the locality
for properties of the same general type as the property improved.
B. Each improvement must be made in compliance with all applicable health, fire
prevention, building and housing codes and standards; provided, however, that
no application for a Grant for property occupied by the owner shall be denied
solely because the improvements will not bring such property into full compliance
with all such codes and standards.
C. Grant Funds will not be used for the payment, wholly, or in part, of assessments
for public improvements where such improvements are required to make the residence
habitable. Such Funds may be used for that portion of improvements located on
the property which will bring an individual water supply system or an individual
sewage disposal system (including septic systems) into compliance with local,
state or federal environmental and sanitary standards provided no public utility
service is available.
0. No Grant Funds shall be used in whole or in part for the purpose of refinancing
or paying off an existing indebtedness. All such Funds must be used to finance
improvements begun after application for such funds.
E. All contracts covering all or any portion of an improvement must contain City
approved warranty of workmanship and materials.
III. Eligible Recipients
A. The Recipients must individually or in the aggregate have at least (i) a life
estate, or (ii) a one-third interest in the fee title, or (iii) a one-third
interest as purchaser in a contract for deed with respect to the structure to
be improved and must occupy such property as their principal place or residence.
B. All individuals occupying the structure to be improved as their principal place
of residence and having an ownership interest in such structure must join in
the application.
C. Recipients must have an annual "Adjusted Gross Income" not in excess of $9,500
as calculated in the Homeowner Application for Grant). Howe7er, the following
priority rating by income level will be followed:
Order of Spending
1. MHFA Grant Money 1. Under $5,000/year 1. $5,000 maximum grant
2. City Grant Money 2. Between $5,000-9,500/year 2. $5,000 maximum grant
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D. Gross annual income for persons having fixed incomes shall be based upon
annualized weekly or monthly income as of the date of application. For
persons other than those on fixed income, annual income is the anticipated
annual earnings of the applicant as of the date of application.
Gross annual income includes salary, commissions, social security, bonuses,
dividends; tips, gains on sales of securities, annuities, pensions, farm
rental, partnership, estate or trust income, and miscellaneous income.
Adjusted Gross Income" for a person who is only temporarily earning $9,500 or
less is to be projected on what that person can reasonably be expected to
earn when normal circumstances resume at a reasonably certain date in the
coming year. Anticipated annual income cannot be based on a temporary condi-
tion such an unemployment, if it is deemed to be of a short-term or non-
recurring nature.
Projected bonus and/or overtime will be determined by the City through can-
tacting an employer. The amount may be based on prior years' figures or
average amounts awarded to other employees with the same status. The most
recent IRS tax return may also be used for these purposes.
Self-employed persons may be asked to submit IRS tax returns for the pre-
vious :wo years. The City of Plymouth may determine gross annual income
by averaging the income of the last two years. Normal out-of-pocket busi
expenses such as office rent, telephone, etc. are generally e uct b +, i
Property or equipment depreciation is not deductible.
Income from rental properties shall be included in Gross Income. Expenses
allowable for deduction for rental purposes include mortgage interest pay-
ments utilities- taxes insurance, and maintenance. Tn no event shalT such
deductions exceed gross rental income.
Adjusted Gross Income" is defined as follows: "Adjusted Income" Means gross
annual income, from all sources before taxes or withholding, Cr all members
of the family living in a housing unit (including individual non -related adults),
after deducting the following:
I. The income of any family member (other than head of household or spouse)
who is under eighteen years of age or is a full-time student;
2. The first 1300.00 of the income of a secondary wage earner who is the
spouse of the head of household;
3. An amount equal to 5 per cent of the income of the head of household and
spouse (or, in the case of an elderly family, 10 per cent of such income);
4. An amount equal to $500.00 for each member of the family residing in the
household (other than the head of household or spouse) who is under eighteen
years of age or who is eighteen years of age or older but has no income
included in family income for purposes of this section;
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5. Non-recurring income, as determined by the Administering City Staff;
6. Extraordinary medical or other expenses as the Administering City
Staff shall approve for exclusion; and
7, An amount equal to the sum received by the head of household or
spouse from, or under the direction of, any public or private non-
profit child -placing agency for the care and maintenance of one or
more persons who are under eighteen years of age and were placed in
the household by such Agency.
EXAMPLES OF FAMILY ADJUSTED GROSS INCOME
EXAMPLE I (Elderly)
Gross Income
Head of household earnings $10,200.00
Dividends 65.00
Interest (tax exempt bonds) 110.00
UA Disability 1,140.00
TOTAL GROSS INCOME $11,515.00
Allowable Deductions
10% of income $1,151.50
Medical expenses, approved by
the City Staff 1,240.00
TOTAL DEDUCTIONS $2,391.50
ADJUSTED GROSS INCOME
EXAMPLr 11 _(ramj ly of Eight Z
Gross Income
Head of house0ld :arnings 91500.00
Spouse's income 3,800.00
Income from daughter, may;, 1 7 500.00
Interest from savings 60.00
TOTAL GROSS INCOME 13,860.00
9,123.50
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Allowable Deductions
5% of income of head of household
and spouse ($13,300) C65.00
First $300 of spouse's income 300.00
Income from daughter, age 17 500.00
Daughter, age 17 500.00
Daughter, age 14 500.00
Daughter, age 11 500.00
Son, age 6 500.00
Daughter, age 4 500.00
Son, age 2 500.00
TOTAL DEDUCTIONS T-4,465.00
ADJUSTED GROSS INCOME 9,395.00
ipient's Asset Limit: The gross assets of the Recipient, excluding the
esidential property to be improved, shall viot exceed $25,000 (as calculated
n the Homeowner Application for Grant).
F. "Gross Assets" for purposes of the Home Improvement Grant Program shall be
the sum of the following: (i) cash on hand or in checking or savings accounts;
ii) securities or U. S. Savings Bonds; (iii) the market value of all interests
in real estate, exclusive of the structure to be improved and a parcel of
real property of not more than two acres on which such structure is located;
iv) cash value of life insurance policies; and (v) all other property, ex-
clusive of household furnishings, clothing, and one automobile.
IV. Grant Applications
The City of Plymouth shall obtain the following documents to be included in the Grant
Submission Package for the Housing Rehabilitation Committee's review and approval:
A. Homeowner Application for Grant. This Application shall be completed in full
and signed by the Applicant.
B. Improvements Certificate. This Certificate shall be completed and signed by
the Applicant as well as the contractor(s), if any, who will perform the
improvement work. The Warranty on workmanship and materials is contained in
this document.
C. When work is to be under the Homeowner Labor Arrangement, a Work Program
Agreement must be included.
D. Repayment Agreement. The City of Plymouth should prepare this Agreement for
execution and submission to the following extent:
1. The record names of the Applicant -Grant Recirients :,hould be obtained
from the county real estate records and inse.•ted below the signature
lines on page 2.
2. The legal description should similarly be ebta teed and inserted on page 1.
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3. The signatures of the Applicant -Grant Recipients should be obtained
and notarized. In the event the Applicant is other than a fee owner of
the pi•operty to be improved, i.e., a contract vendee or owner, of a
life estate (see Section M. A. above), the record names of the fee
owners must be ascertained and placed with the Applicant's name(s)
on the Agreement, and their signatures obtained and notarized, in
addition to the Applicant -Grant Recipient's signatures. All date lines,
other than those in the notary's acknowledgements, should be left open.
The Repayment Agreement shall be filed with the proper recgrding office,
i.e. the Register of Deeds or Registrar of Titles for Hennepin County
in such manner as to create a valid lien against the property, on all
properties improved with Grant Funds, provided that the creation of such
a lien is permitted by l,aw. It is the responsibility of the City of
Plymouth to record this Agreement with the proper recording office,
after the improvements are completed and prior to final disbursement of
the Funds.
E. Eviderce of verfication of income and property ownership. The City of Plymouth
shall verify the applicant's current annual income through contacting the
employers, reviewing wage receipts or tax returns, or by any other means
consistent with normal and prudent verification practices. The City of
Plymouth shall also verify that the applicant meets the property ownership
requirements as specified in Section III of these Grant Guidelines. The
Hennepin County Register of Deeds, Registrar of Titles, or Assessor's Office
may be consulted to verify the status of title to the property to be improved.
F. Other documents (such as work writeups) if applicable.
V. General Conditions Relating to Grants
A. The City of Plymouth shall have full responsibility for Program implementa-
tion, including public information, reviewing and screening applicants,
choosing recipients, and assuring that work will be satisfactorily completed.
B. The ,a*nt4prgceeds) of a Grant shall not exceed the lesse 0.00
or (ii) the actua he work perform should the recipient
require additional improveme 0.00 in value, the City would pro-
vide up to an ,000 on a matching for each $1.00
y the recipient would provide $1.00.
C. Other sources of funds, including private len
public sources, may be combined with Grant Fu
ments, and the amount of funds received from
reduce the permissible amount of the Grant.
ness or ability to apply for a loan from any
conditions, to be used in conjunction with or
not, under any circumstances, be a condition
ders and local, state or federal
nds to complete eligible improve -
such other sources shall not
However, an applicant's willing -
source, regardless of terms and
to supplement Grant Funds shall
for a Gr;:nt.
D. No application, processing, or other fees shall be charged to an applicant.
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E. The City of Plymouth shall make on-site inspections of the property
to be improved (i) before such application is epproved, and (ii)
after work has been completed and before contractor(s) has been
paid in full.
F. Each Grant shall be subject to an Agreement for Repayment which
provides that in the event that the property upon which the improve-
ment is located is sold, transferred, or otherwise conveyed by the
Grant Recipient within five (5) years from the date on which the
last Grant Fends to such Recipient were disbursed, or in the event
that such property ceases to be the Recipient's principal place of
residence within five (5) years from the date the last Grant Funds
were so disbursed, then the Recipient shall repay (and the City of
Plymouth shall have a lien to the extent permitted by law on the
property as security for such repayment) all or a portion of such
Grant Funds in accordance with the following schedule:
Period of Time After Grant Within
Which Sale, Transfer, Conveyance,
or Cessation of Residency Occurs Percent Repayment
Prior to end of 12th full month 100%
After end of 12th full month
until end of 24th full month 80%
After end of 24th full month
until end of 36th full month b0%
After end of 36th full month
until end of 48th full month 40%
After end of 48th full month
until end of 60th full month 20%
After end of 60th full month No repayment
G. If any Grant Funds are used for purposes other than an eligible
improvement upon eligible property or if the Recipient's Application
is found to contain a material misstatement of fact, the Recipient
shall be liable for repayment of all or part of the originally
approved Grant Funds in accordance with the remedies contained in
the Improvements Certificate. In addition, any fraudulent use of
funds may subject the Recipient to fines and/or imprisonment under
the Minnesota Criminal Code.
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VI. Homeowner Labor Agreement
An eligible Recipient may elect to do some or all of the improvement work himself,
or to supply sone or all of the necessary labor through an agent acting on his
behalf, neither of whom receives compensation for his services from the proceeds
of the Grant. In either case, the individual performing the work shall be referred
to in these Grant Guidelines as the "Performer".
The City of Plymouth shall honor the Homeowner Labor Agreement provided the
Recipient follows these procedures:
A. The Grant Application shall be processed as under Section IV
requesting funds to cover material costs and whatever labor
costs would be required to comple-%e the improvements using paid
contractors, rather than the Performer.
B. The City of Plymouth shall be satisfied as to the Performer's
skill and ability to perform specified work by the designated
date.
C. The City of Plymouth and Performer shall sign a Work Program
Agreement which shall be part of the Grant Submission Package.
D. The City of Plymouth shall set aside as a "Labor Contingency
Fund" the amount of Grant Funds which it estimates would be
required to complete the improvements using paid contractors.
The sum total of the Labor Contingency Fund and the portion of
the Grant forwarded to the recipient for material costs must
not exceed $2,000.
E. Proceeds for materials shall be disbursed as needed directly to
materialmen and suppliers by the City of Plymouth. All ordering
of necessary materials and supplies shall be the responsibility
of the Performer.
F. An interim inspection and a final inspection shall be made on
the date(s) specified in the Work Program Agreement. If the
City of Plymouth determines work has been completed satisfactorily,
it shall execute a Completion Certificate.
G. If at the time of the interim inspection the City of Plymouth
determines, in its discretion, that work cannot be completed
satisfactorily by the date specified in the Work Program Agree-
ment, or if at the time of the final inspection work has not
been comE.eted satisfactorily, then the City of Plymouth shall be
responsible for retaining contractors to complete the work.
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VI1. Selection a
A. Tnh, City of Plymouth Housing Rehabilitation Committee shall abide
by the following criteria in selection of recipients for Grant
Funds whereby applicants with the highest point totals will be
considered over those with lower point totals:
1. Elderly (over 62 years old at time of application)
a. 80 .years old or older - 20 points
b. 75-79 years old or older - 16 points
c. 70-74 years old or older - 12 points
d. 62-69 years old or older - 8 points
2. Widow or widower 20 points
3. Adjusted Gross Annut-1 Income
a. $5,000* - $5,499 - 20 points
b. $5,500 - $5,999 - 16 points
c. $6,000 - $6,499 - 12 points
d. $6,500 - $7,500 - 8 points
4. Insulation and weather-stripping related requests.
a. No insulation - 20 points
b. 2" or less in ceiling - 10 points
5. Improvements needed to make the home safe and habitable - 20 points
Applicants with an income under $5,000/year will be eligible for
the M.H.F.A. Grant Program.
B. Applications will be accepted as follows:
1. Applicants must submit their request ;for a Rehabilitation Grant
on the City of Plymouth or M.H.F.A. Grant Application form. It
should be submitted to the Plymouth FORA, City Hall, 3400 Plymouth
Boulevard, Plymouth, MN, 55447. All applications should also
include those ea.- -nts as outlined in Section IV.
2. Applications will be reviewed by City staff as received and be
forwarded to the City's Housing Rehabilitation Committee for
their review and selection of recipients. Requests of an
emergency nature will be handled by staff as quickly as possible
and would be reviewed by staff and the Chairman of the Rehabil-
itation Committee. (See Section VIII. B.)
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3. Deadlines for applications will be September 1 and December 1
of each year.
4. After the deadline the Housing Rehabilitation Committee will
review and select grant recipients using the criteria as in
Section VII. This selection process will take place on the
third Wednesday of the month following the deadline date, i.e.
the third Wednesday of September and the third Wednesday of
December.
5. The decision of the Housing Rehabilitation Grant Committee will
be final, however, appeals may be made to the City HRA in those
cases where applicants believe they were not treated equitably.
VIII. Miscellaneous
A. Inspections of Property
1. It is not the intent of the Rehabilitation Grant Program to
conduct inspections to find violations of the City Building
Codes. However, major infractions that constitute a health
and/or safety hazard or seriously diminish 'the habitability
of the residenc.,:, will be noted and explained to the homeowner.
If the homeowner is determined to be eligible for a grant,
serious infractions will be remedied at that time. Should
the homeowner not be eligible for grant monies, the homeowner
will be informed of the infraction by the City Building Department
and a period of time will be established during which the infrac-
tion would be remedied.
2. Irsiectioris will normally be conducted by the staff adminis-
trator of the program and not by a member of the City Building
Department.
B. Criteria for Emergency Funding
Staff will consider those grant requests as emergency requests
where:
a. The dwelling unit contains defects or deficiencies which,
if left uncorrected, would render the unit immediately
uninhabitable or contain serious health or safety hazards.
b. The defects or deficienciesare the direct result of
natural causes such as floods, droughts, tornados, fires
blizzards and storms or mechanical failures such as burst
pipes and furnace break -downs.
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2. Where no funds are available for assistance to eligible
homeowners the following procedure shall be used:
a. Upon notification by the .homeowner of an emergency
situation, administrating staff and a member of the
City Building Department will inspect the property at
the invitation of the homeowner.
b. Staff will note in a written form those defects or
deficiencies of an .-amergency nature and contact
appropriate tradespersons to obtain a cost estimate
to make necessary improvements.
c. Administrating staff will transmit this information
to the Chairman of the Housing Rehabilitation Committee
for his review.
d. Administrating staff will forward the comments of the
homeowner, Building Inspector- and Housing Rehabilitation
Committee Chairman to at least two members of the
Plymouth HRA.
e. Administrating staff will prepare a memo regarding the
emergency request including all related comments to beissubmittedtotheCityCouncilattheearliestpossible
meeting. This memo and attachments shall include the
following minimum information:
1) Nature of the emergency
2) Eligibility of the homeowner
3) Homeowner Application for Grant
4) Repayment Agreement (or assurances Repayment Agreement
has been signed)
5) Cost estimates from tradespersons to make the necessary
improvements
6) Recommendations of the Administrating Staff, Cite
Building Inspector, Chairman of the Housing Rehabil-
itation Committee and the contacted HRA members.
3. The City Council will have the option upon review of an emergency
grant request to:
a. Refer the request to the Minnesota Housing Finance Agency for
an emergency grant;
b. Make an appropriation to the applicant from such fund as deemed
appropriate; or
c. Deny the request.
HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF PLYMOUT14
Pursuant to due call and notice thereof, a regular meeting of the Housing
and Redevelopment Authority of Plymouth, Minnesota was geld on the 25th day
of July , 1977 . The following members were present:
Hilda. Commissioners Bakke Neils and S a t
T e following members were absent: Commissioner vasillou
Commissioner Neils introduced the following Resolution and moved
is adoption:
NRA Resolution No. 15
AUTHORIZING ANNUAL CONTRIBUTIONS CONTRACT
FOR SECTION 8 RENT ASSISTANCE PROGRAM
WHEREAS, the Housing and Redevelopment Authority of the City of Plymouth has made
application for 50 units of Section R Existing Housing for the purpose of providing
low and moderate income persons with suitable housing; and
WHEREAS, the HUD Local Area Office has approved the Plymouth Housing and Redevelopment
Authority Section 8 application; and
WHEREAS, the HUD Local Area Office has submitted to the Plymouth HRA the Annual
Contributions Contract for the Plymouth HRA's commissioners' acceptance;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF
THE CITY OF PLYMOUTH, MINNESOTA that the chairman of the HRA of the City of Plymouth,
Minnesota be authorized to execute the Annual Contributions Contract as attached
hereto.
The motion for the adoption of the foregoing Resolution was duly seconded by
Commissioner Spaeth , and upon vote being taken thereon, the
following voted in favor thereof: Chairman Hilde, Commissioners Neils,
Bakke and Spaeth
The following voted against orabstained: None.
Whereupon the Resolution was declared duly passed and adopted.