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
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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.
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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.
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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.
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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.
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Plymouth Housing and Redevelopment Authority
June 23, 2022
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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.
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June 23, 2022
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,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.