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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 09-26-2019APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY September 26, 2019 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Matthew Plec, and Robert Huddleston ABSENT: Commissioner Jeff Kulaszewicz STAFF PRESENT: HRA Executive Director Steve Juetten, HRA Manager Jim Barnes, and Office Support Representative Tina Beckfeld OTHERS PRESENT: Council Member Jim Davis 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 p.m. 2. PUBLIC FORUM Chair Soderberg opened and closed the Public Forum, as there was no one present to speak. 3. APPROVE AGENDA MOTION by Commissioner Plec, seconded by Commissioner Huddleston, to approve the Agenda. Vote. 3 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4A. Approve proposed August 22, 2019 minutes. 4B. Plymouth Towne Square. Accept monthly housing reports. 4C. Vicksburg Crossing. Accept monthly housing Reports. MOTION by Commissioner Plec, seconded by Commissioner Huddleston, to approve the Consent Agenda. Vote. 3 Ayes. MOTION passed unanimously. 5. PUBLIC HEARING 5A. Housing Choice Voucher Program. Proposed changes to the Housing Choice Voucher Administrative Plan, Submission of HUD-50077-CR and 5-Year PHA Plan HRA Executive Director Juetten gave an overview of the staff report. Approved Minutes Plymouth Housing and Redevelopment Authority September 26, 2019 Page 2 Chair Soderberg opened and closed the Public Hearing, as there was no one present to speak. Commissioner Plec asked if the other housing agencies receive PIH Notices. HRA Executive Director Juetten replied yes, they are published on HUD’s website. Chair Soderberg asked about who generated the changes made to Section 17-11 regarding the Project Based Vouchers. HRA Manager Barnes replied most of the changes made in section 17-11 were local HRA decisions. These changes are being recommended because affordable housing funders want to prioritize serving the most vulnerable population. HRA Executive Director Juetten stated developers earn more points when applying for funds through the tax credit program by helping with affordable housing project. MOTION by Commissioner Huddleston, seconded by Commissioner Plec that the HRA Board of Commissioners approves the 5-Year PHA Plan for fiscal year 2020 and the proposed changes to the Administrative Plan to be effective immediately. Also, the HRA Board of Commissioners authorize submission of the 5-Year PHA Plan (HUD-50075-FY); HUD-5077 CR, HUD -5077- ST-HCV-HP (HRA Resolution 2019-04); and, HUD-50077-SL to Housings and Urban Development (HUD) for the fiscal year beginning January 1, 2020. Vote. 3 Ayes. MOTION passed unanimously. 6. NEW BUSINESS 6.A. Consider appeal of Home Rehabilitation and First Time Homebuyer loans subordination request denial. HRA Manager Barnes gave an overview of the staff report. Ms. Kesney McCarthy, 1455 Shadyview Lane N, was in attendance to present her and her husband appeal to the HRA Board. She thanked the HRA for the use of the Plymouth’s First Time Homebuyer Program in 2014 and Plymouth’s Home Rehabilitation program in 2015 and summarized their appeal. Commissioner Plec thanked Ms. McCarthy for her attendance. He asked the board if subordination requests had been requested in the past. HRA Manager Barnes stated typically waivers are granted for financial hardship or medical reasons. Twice a subordination request has been denied for over 125% limit, but only as a secondary reason. The main reason for denial was the applicant wanted to take cash out. Commissioner Plec asked if the mortgage amount could be increased without the subordination. Approved Minutes Plymouth Housing and Redevelopment Authority September 26, 2019 Page 3 Ms. McCarthy stated no because they have to demolish the basement finish and therefore have less square footage for the appraisal which the loan to value is based on. Chair Soderberg stated that she was struggling with granting the subordination because it would set a precedence. She also felt by removing the subordination language the intent of the program would be lost. She asked if staff could do additional research to see if 125% was the norm. Commissioner Plec said while the McCarthy’s are not asking for loan forgiveness, they are asking to change policy that has been in place for over 20 years. Commissioner Huddleston said it is hard to side-step policy for financial considerations when using public money. HRA Executive Director Juetten suggested looking at direction of how to change the policy not necessarily to remove it entirely. Ms. McCarthy asked if there were any questions as to how the money was spent. S he stated it’s worth noting in the five years they have lived in the home the value has doubled. Chair Soderberg said she feels they have done a great job in updating there home.. She stated she is not in favor of granting the subordination but is willing to look at amending the policy if deemed appropriate. Commissioner Plec is in agreement with Chair Soderberg noting he is not willing to go against policy at this time. Commissioner Huddleston stated without a clear hardship case he is also not willing to grant the subordination. Chair Soderberg clarified financial hardship is defined as severe; danger of losing the house or headed for foreclosure. MOTION by Chair Soderberg, seconded by Commissioner Huddleston, to deny the appeal by the McCarthy’s to subordinate their First Time Homebuyer and Home Rehabilitation loans to a new loan offered through Lake Area Mortgage. Vote. 3 Ayes. MOTION approved unanimously. 6.B. HRA Budgets. Review and approve the 2020 and 2021 budgets. HRA Manager Barnes gave an overview of the staff report. Chair Soderberg asked what the previous damage claim program looked like. Approved Minutes Plymouth Housing and Redevelopment Authority September 26, 2019 Page 4 HRA Manager Barnes said it was guided by federal policy and gave flexibility to Housing Authorities. It allowed claims up to $5,000 per unit.. Staff will evaluate what will be incentive enough to entice usage of the program. Chair Soderberg noted when HRA Manager Barnes and she meet with some apartment owners, the first thing they brought up was they no longer had the damage claim program to utilize. She feels it is a potentially interesting and could be a successful program. Council Member Davis asked if the HRA budget is planning for the developers who are potentially building affordable housing in Plymouth. HRA Manager Barnes answered yes. Chair Soderberg wanted clarification on the six remaining project based vouchers. HRA Manager Barnes confirmed Beacon Heights/Cranberry Ridge and the Element; both have been allocated, so they are not included in the six remaining. HRA Manager Barnes stated the HRA is allowed to dedicate project-based vouchers up to 20% of their allocation. Currently we have six left. MOTION by Commissioner Huddleston, seconded by Commissioner Plec, to recommend the City Council approve the 2020 HRA budgets and the 2021 Concept budgets. Vote. 3 Ayes. MOTION approved unanimously. 7. UPDATES HRA Manager provided an update to the Board on the following items.  Strategic Plan  Vacant HRA board seat  Beacon and Sand Companies  Four Seasons Mall  Conversion of 2-bedroom units to 1-bedroom units at Plymouth Towne Square  City Building Permit Fees 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:00 p.m.