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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-21-2022APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY July 21, 2022 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Aqueelah Whitfield, James Williams, Wayne Peterson, and Ronald Kelner, ABSENT: Commissioners Lucas Larson, Joel Spoonheim (excused) STAFF PRESENT: HRA Executive Director Danette Parr, Housing & Economic Development Manager Devon Pohlman, and Permit Technician Michelle Bast OTHERS PRESENT: Mayor Jeffry Wosje, Council Member Jim Davis, Jody Boedigheimer of Grace Management, Ed Goldsmith of Outreach Development Corporation 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:32 p.m. following a planned tour of the Plymouth Towne Square building. 2. PUBLIC FORUM Chair Soderberg opened the Public Forum. Ed Goldsmith commented that the HRA owned building, Plymouth Towne Square, has been a well-maintained building over the years since the project was built in 1994. Chair Soderberg said there had been substantial money re-invested in the project over time, including for larger capital need for new windows and siding. Chair Soderberg closed the Public Forum. 3. APPROVE AGENDA MOTION by Commissioner Williams, seconded by Commissioner Kelner to approve the Agenda. Vote. 5 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approve proposed minutes from June 23, 2022. 4.2 Plymouth Towne Square housing report Plymouth Town Square Financials 4.3 Vicksburg Commons housing report Approved Minutes Plymouth Housing and Redevelopment Authority July 21, 2022 Page 2 Vicksburg Commons Financials MOTION by Commissioner Kelner, seconded by Commissioner Williams, to approve the Consent Agenda. Vote. 5 Ayes. MOTION passed unanimously. 5. PUBLIC HEARINGS Chair Soderberg opened and closed the Public Hearing because there was no one there to speak. 6. NEW BUSINESS 6.1. Moderate Income Housing Policy Due Diligence Follow Up Compensation Fee Schedule - Sample Project Compliance Concept Memo Moderate-Income Housing Policy - redline Housing & Economic Development Manager Pohlman gave an overview of the Moderate- Income Housing Policy Due Diligence Follow Up. She also explained the Compensation Fee Schedule sample project example. Council Member Davis asked if the residents will need to verify income every year. Housing & Economic Development Manager Pohlman said this is a choice the City and HRA can make if the policy is adopted and as a compliance contract with a third-party is negotiated. She recommended a regular interval, somewhere between annually and every three years. Council Member Davis asked what documents are used to verify income. Mrs. Boedigheimer stated commonly used documents are tax returns, bank statements, W2, any document that shows earnings. Housing & Economic Development Manager Pohlman said income verification can get complicated, and contracting with a third-party subject-matter expert is recommended. Commissioner Kelner asked how it works for people who have assets they do not draw from every year. He said income could be artificially low. Mrs. Boedigheimer said that for the properties they manage, they provide evidence of retirement earnings and then income is five percent of those earnings. Commissioner Peterson asked if contracted out, would a set-up fee be paid for each new development. Approved Minutes Plymouth Housing and Redevelopment Authority July 21, 2022 Page 3 Housing & Economic Development Manager Pohlman said there is a one-time set up fee to establish each new project in the compliance software system and platform. Chair Soderberg stated we have a limited amount of staff, therefore contracting this out is a good idea for consistency and efficiency, particularly over the long-term affordability requirements. It is good to have compliance managed professionally. Council Member Davis commented it is good to follow industry standards. Housing & Economic Development Manager Pohlman explained the intent behind the redlines on the Moderate-Income Housing Policy. She stated the policy has been shared with the City’s financial advisor as well as the City’s bond council which resulted in additional edits to make the policy more succinct and align required submittals under the policy to other types of Public Financial Assistance that are required such as with TIF. She stated this policy goes into effect when there is direct financial assistance from the City going into a project and emphasized the directional guidance from the joint City Council/HRA Study Session about this policy having a direct tie to when direct financial assistance is provided by the City. Commissioner Kelner asked now that the policy is for moderate-income housing, will there be a separate policy for low-income housing. Chair Soderberg said in the last meeting we affirmed that this specific policy focuses on generating new moderate-income housing as market rate multi-family development comes to this community, which does not preclude future work focusing on more deeply targeted, low-income housing, as part of the overall Strategic Plan work. Commissioner Williams asked if the information from the comments made about previous discussions that were sent out last week were incorporated into the draft policy. Chair Soderberg said the comments, inclusive of the letter from ODC, were circulated to the group. Commissioner Williams asked if the public had a chance to weigh in. He said we might come up with a product that does not satisfy on either end. He asked if public comments were included when drafting the policy. Chair Soderberg said there is a balance between reviewing public comments from diverse stakeholders recognizing that not all comments from all stakeholders can ultimately be incorporated into the final policy recommendation. Chair Soderberg noted that comments were accepted on two policies, one was the Moderate-Income Housing Policy and the other was the Renter Protection Policy, Approved Minutes Plymouth Housing and Redevelopment Authority July 21, 2022 Page 4 highlighting that the two policies are distinct and that we are directionally focused on advancing the Moderate-Income Housing Policy at this time. She said the Renters Protection Policy requires further refinement to go move back to the City Council for further discussion. Mr. Goldsmith said the comments made by ODC did impact the final redlined Moderate Income Housing Policy. He affirmed that policy change often is accomplished incrementally and appreciated that the HRA considered ODC’s input. Housing & Economic Development Manager Pohlman said there were substantive comments from ODC that were contemplated, including whether the policy triggers by direct financial assistance from the City or by broader land use changes. Mr. Goldsmith said ODC recognizes it is the HRA’s role to take information and suggestions and decide what to do with those and how to apply those to a policy. Chair Soderberg, in reference to questions related to the previous circulation of public comments on two proposed draft policies, acknowledged that there was significant staffing transition, however she believed the HRA had reviewed and discussed the comments. HRA Executive Director Parr said that she had been told the public comments were discussed and talked about at a previous HRA meeting. Housing & Economic Development Manager Pohlman discussed one additional proposed redline to the Moderate-Income Housing Policy related to the practicality of having affordable and market units be interchangeable (no difference in finishes or materials of the units) to maximize flexibility when units turn over. Commissioner Kelner said it is better to have all be the same and not inferior. Mr. Goldsmith said it is done both ways and is usually the decision of the developer because some prefer to have dedicated units, others prefer floating subsidy units so that if you are to have 20% of qualifying units those units are spread throughout the building. Housing & Economic Development Manager Pohlman stated that certain funding sources also dictate whether fixed or floating units are required in affordable housing projects. Commissioner Whitfield asked how developers stay in line with having 20% requirements to have affordable housing units when tenants move in and out over time. Housing & Economic Development Manager Pohlman said the compliance contract will monitor the owner’s compliance with maintaining the affordability requirements and Approved Minutes Plymouth Housing and Redevelopment Authority July 21, 2022 Page 5 ensuring that those units are filled by income-qualified tenants. The HRA would also receive a record of the compliance performance if managed by a third-party. Commissioner Whitfield asked what happens when an affordable housing unit is vacated and if someone who pays market rate moves in how is that unit kept affordable. Housing & Economic Development Manager Pohlman responded the affordable housing unit must be filled with someone who income qualifies. Commissioner Kelner said the affordable unit becomes a market rate unit when income increases above the required threshold which allows for some increase in income (up to 140% added). That tenant will get to stay but the next available unit goes to affordable housing. Chair Soderberg requested input to what the next steps are to be. Housing & Economic Development Manager Pohlman suggested that staff could advance the redline document to the City Council for further action after bond counsel adds final language for additional clarity. Chair Soderberg asked if anyone has any questions or comments. Commissioner Kelner asked what is being sent to City Council has been seen by the City’s financial advisor and if their comments have been inputted. Housing & Economic Development Manager Pohlman replied yes but is waiting for final comments with regard to clarity from bond counsel. She said she had a verbal conversation with them today and they indicated there would be no substantial changes. She said they will just further the policy’s clarity. Chair Soderberg asked for a vote to bring the policy to the City Council at an August meeting. Commissioners Whitfield, Peterson, Kelner, and Chair Soderberg voted Aye. Commissioner Williams abstained. Chair Soderberg said the policy will go before the City Council in August with a caveat that there will be consultation after bond counsel comments are added. She added that she will review the final policy in mid-August and pull it if there are any issues. 7. UPDATES 7.1 HRA Updates Approved Minutes Plymouth Housing and Redevelopment Authority July 21, 2022 Page 6 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:39 p.m.