Loading...
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. Page 2 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 g( 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 Page 3 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; 0 4 Page 4 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 Y Page 5 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. Page 6 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. U Page 7 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. r U Page 8 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. Page 9 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.) 0 0 Page 10 e 0 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. r Page 1l 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.