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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 06-23-2022APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY June 23, 2022 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Aqueelah Whitfield, James Williams, Wayne Peterson, Ronald Kelner, and Joel Spoonheim ABSENT: Commissioner Lucas Larson STAFF PRESENT: HRA Executive Director Danette Parr, Housing & Economic Development Manager Devon Pohlman, and Permit Technician Michelle Bast OTHERS PRESENT: Ed Goldsmith of Outreach Development Corporation and Hildania Christensen 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:04 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 Whitfield, seconded by Commissioner Williams to approve the Agenda. Vote. 6 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approve proposed minutes from May 17, 2022. MOTION by Commissioner Williams, seconded by Commissioner Whitfield, to approve the Consent Agenda. Vote. 6 Ayes. MOTION passed unanimously. 5. PUBLIC HEARINGS 6. NEW BUSINESS 6.1. May 24 Joint HRA/City Council Study Session Feedback Housing & Economic Development Manager Pohlman gave an overview. She reported that the City Council appeared to support additional work on the Moderate Income Housing Policy and wanted to know more about how ongoing compliance work associated with the policy would be structured. Advancing the policy allows the HRA Board to enact an Approved Minutes Plymouth Housing and Redevelopment Authority June 23, 2022 Page 2 important component of their Strategic Plan. She said at this time, the Council did not provide the direction to move forward with the Tenant Protection Policy. She said staff will work on the compliance matters related to the Moderate Income Housing Policy with potential to revisit the Tenant Protection Policy in the future. Housing & Economic Development Manager Pohlman said during today's meeting she would like to discuss the goals of the Strategic Plan and what is in our capacity to administer this year. She said another topic for tonight's meeting is discussion about CDBG grant management. 6.2 Moderated Income Housing Policy Compliance Concept Memo DRAFT Moderate-Income Housing Policy Chair Soderberg agreed with moving forward with the Moderate Income Housing Policy as an immediate priority. Commissioner Peterson requested the reason for the policy's name change to be explained. He asked if the name was changed to make is more saleable. Housing & Economic Development Manager Pohlman responded the decision was made to name the policy to better reflect the affordability level of units the policy would generate. The policy is designed to serve households with median incomes at 50 to 60 percent of Area Median Income (AMI). Commissioner Williams noted that in the Strategic Plan the incomes at or below 50% are low and asked how either this policy specifically, or other components of the Strategic Plan, will serve low-income households below 50% AMI.. Chair Soderberg replied this policy is not intended to get us to 30% AMI low income; there are other ways to get to low income with additional subsidies. Commissioner Williams said we should be following the Strategic Plan that was developed, including focusing our efforts on serving 30% AMI households. Commissioner Williams asked why the name change is necessary. Housing & Economic Development Manager Pohlman stated often significant additional subsidies through the state, county and other sources are needed to reach 30% AMI rent and income levels. The Moderate Income Housing Policy is trying to create affordable housing at the 50-60% AMI level which can be accomplished by asking market rate developers to make a financial structure work serving a more moderate-income renter. This policy can be an effective tool to add affordability to a community, with additional and more comprehensive strategies needed to secure resources to effectively serve lower- income households. Approved Minutes Plymouth Housing and Redevelopment Authority June 23, 2022 Page 3 Commissioner Kelner stated if developers participate at the ten - 20 percent level this will focus on the moderate income level. Commissioner Peterson said there could be a second policy to support lower-income affordable housing serving households at 30% AMI levels. HRA Executive Director Parr relayed the title was brought forward to describe the policy for what it is. This Moderate Income Housing Policy will help us serve more moderate- income households by working with developers doing market rate multifamily projects. Chair Soderberg added that this policy is one piece of the plan. The Moderate Income Housing Policy will be step one and then we can work to identify projects and affordable housing partners whose mission is to serve low-income households. Commissioner Peterson stated this policy is not a stopping point. We need to draft a policy to submit to the council because we are tying to get to affordable housing. Chair Soderberg asked who is okay with the Moderate Income Housing Policy. Commissioner Williams said we need to take on the hard work to stay with the vision of the Strategic Plan to make the greatest impact. Commissioner Kelner stated our plan can include those at 50 to 60 percent of income levels to encourage developers. And then we can focus on projects, like Cranberry Ridge, to get to the 30 to 40 percent income levels with higher subsidies. Chair Soderberg said the Council has to approve the Moderate Income Housing Policy to have the policy. Our donation to Cranbe1Ty Ridge did not go through the Council. We can do high impact things with our dollars; we can find programs for the target group. A member from the public, Hildania Christensen, asked about the intent of the CDBG program and noted that resources were needed to support homeowners who struggled to make their monthly mortgage payments because of COVID, citing that the state's HomeHelpMN program launched too late to support many homeowners in need. Chair Soderberg requested that that we re-affirm with I-IRA members that we should advance the Moderate-Income Housing policy as proposed to City Council. Housing & Economic Development Manager Pohlman replied yes, we want to bring this to the City Council with additional background on how the ongoing compliance can be sustainably and successfully managed. Commissioner Spoonheim requested it be restated what we are discussing. Draft Minutes Plymouth Housing and Redevelopment Authority June 23, 2022 Page 4 Chair Soderberg replied the City Council supports the Moderate Income Housing Policy with caveats about compliance. The City Council did not appear to support the Renter Protection Policy at this time. Housing & Economic Development Manager Pohlman suggested moving forward with the Moderate Income Housing Policy and additional due diligence related to the compliance aspect of the policy. Commissioner Spoonheim suggested that actual compliance cost be modeled out and presented with the compliance concept when the policy comes back to the City Council. Commissioner Spoonheim also emphasized the need for the Strategic Plan to address strategies for developing and preserving low-income housing. He suggested that having a policy that is clear about our intent to support low-income housing will help the City compete to get more points on housing applications submitted to the State, County or other funders. · Chair Soderberg stated we are not disregarding low income; we are starting to create policies. Hildania Christensen, raised questions pertaining to how the city makes decisions pertaining to the CDBG program. HRA Executive Director Parr reminded the HRA members of the protocol around the public forum. Chair Soderberg proposed to go forward with the Moderate Income Housing Policy and address concerns about administration. Housing & Economic Development Manager Pohlman provided additional background infom1ation pertaining to the proposed compliance concept that would support long-term implementation of the Moderate Income Housing Policy. Compliance can be effectively managed using an affordable housing consultant given limited staff capacity to administer long-term rental compliance, with the potential to pass through relatively modest compliance costs to the developer responsible for long-term adherence to the affordability requirements. Commissioner Williams asked what the cost range is. Housing & Economic Development Manager Pohlman replied it depends on the project size and provided an estimated range of a sampling of compliance costs associated both with ongoing monitoring as well as individual tenant file review. Draft Minutes Plymouth Housing and Redevelopment Authority June 23, 2022 Page 5 Commissioner Kelner said a developer wants to construct market rate unit and needs an incentive to provide housing for moderate income. He said he agrees with charging developers reasonable compliance fees. Commissioner Peterson said it is reasonable to contract with someone who is already managing properties. Housing & Economic Development Manager Pohlman said that experience in affordable housing rental compliance would be a pre-requisite for any potential contracted work given various legal requirements and tenant regulations that need to be considered with affordable housing. Commissioner Spoonheim noted that before the Moderate Income Housing Policy is brought forward for City Council action, staff need to be prepared to respond to the request for additional information about why the policy requires a IO unit threshold to take effect, noting that this precludes smaller developers from the requirement as questioned by one City Council member at the May Study Session. HRA Executive Director Parr noted that our municipal advisory firm was consulted in the development of the 10-unit threshold and that projects with fewer than IO units may not have sufficient margins to make the affordability requirements work, particularly in cases where homeownership is concerned. Housing & Economic Development Manager Pohlman agreed to reach back out to our municipal advisory firm with respect to the ten-unit threshold recommendation. Commission Kelner asked if the levels are federal guidelines. Housing & Economic Development Manager Pohlman said the unit threshold, as proposed, is a common standard for other cities. Chair Soderberg asked what the time frame is for when to go back to the City Council. Housing & Economic Development Manager Pohlman replied late summer to early fall. The policy will go before the HRA Board and then to the Council. Commissioner Spoonheim said public comments on the two proposed housing policies were not previously circulated when staff transitions occurred and requested those be made available. HRA Executive Director Parr said the comments will be shared and a discussion can be had to ensure we are doing this right and we are in agreement. Commissioner Kelner asked if the Dundee development will be market rate. Draft Minutes Plymouth Housing and Redevelopment Authority June 23, 2022 Page 6 HRA Executive Director Parr said yes, and that the developer agreement includes a provision for funding for future affordable housing set at 2% of rents based on stabilized occupancy. When the project is closer to completion, the HRA Board will be consulted on how best to invest that funding stream. Chair Soderberg asked when to propose the Renter Protection Ordinance. Housing & Economic Development Manager Pohlman said after the Moderate Income Housing Policy is passed. Chair Soderberg asked if there were any questions for staff about the Renters Protection Policy. Commissioner Spoonheini said one of the Council Members raised the point that the 90- day notice requirement should be for all tenants regardless of which rate they are paying, noting that the policy could potentially move forward for further review. Chair Soderberg said we will reprioritize what is in the Strategic Plan and discuss that when we meet in July. Commissioner Kelner said it is the desire of the I-IRA Board to help ensure that the Strategic Plan specifically outlines strategies to serve low income households. Housing & Economic Development Manager Pohlman stated the Housing Choice Voucher Program is not called out specifically in the Strategic Plan and that is a critical resource that helps to serve low-income households and is administered by the City. Chair Soderberg said we will target the August meeting for further discussion related to Strategic Plan priorities and will work to advance the Moderate Income Housing Policy in the near tem1 with additional financial modeling to highlight the rational for the ten unit threshold. 6.3 I-IRA Action Items 2022 CDBG Administration Timeline Housing & Economic Development Manager Pohlman provided an overview about the CDBG timeline. She said CDBG administration requires year-round work with the new program year starting on July 1. She noted that the City has three different options for CDBG program administration and briefly outlined those, including pros and cons. Commissioner Kelner said it makes sense to partner with Hennepin County to streamline program administration. Draft Minutes Plymouth Housing and Redevelopment Authority June 23, 2022 Page 7 ,Chair Soderberg asked if staff is ready for a proposal. Housing & Economic Development Manager Pohlman replied not yet, but noted the likely timeline for partnering with Hennepin County would need to be to be soon to start negotiations in January 2023 for a partnership that could become effective with the 2024 program year. Further assessment is needed, and a proposal will be brought back to the HRA. Commissioner Peterson asked if CDBG administration were to move to Hennepin County, would the City of Plymouth retain its CDBG allocation amount? Housing & Economic Development Manager Pohlman said the funds will be reallocated to our formula by HUD. She said if Hennepin County managed it, the administration fee would go to Hennepin County, and public services funding would be combined into one county-wide allocation through the County. Currently Hennepin County has Joint Cooperation Agreements with individual cities to administer rehabilitation for specific amounts to each City, but the County would have discretion to change its administrative approach to the program. She stated managing the CDBG funds is very labor intensive. 7. UPDATES 7.1 Community Development Block Grant (CDBG) Program Updates - The 2022 Program Year Annual Action Plan awaits approval by HUD. 7,.2 Lakeview Commons - The HRA discussed the potential sale of Lakeview Commons, the history of the development of the property, and potential strategies to maintain the long-te1111 affordability of the property as well as the threat of conversion to market-rate units. A member of the public, Ed Goldsmith, provided background on the significant partnerships involved · in the development and ongoing community support at Lakeview Commons, including partnerships with the local school district. 7.3 Upcoming HRA Meeting Dates -The next meeting will be held at Plymouth Towne Square on July 21 at 7 pm. Please note a change in the original meeting date. 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 9:05 p.m.