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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 03-18-1999MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY March 18, 1999 PRESENT: Chair David Crain, Commissioners, Brian Helmken, Tim Bildsoe, Brad Brown, Judy Johnson ABSENT: None STAFF PRESENT: Housing Supervisor Ed Goldsmith, Director Anne Hurlburt, Senior Clerk/Typist Barb Peterson, Housing Specialist Rebecca Stoen OTHERS PRESENT: Plymouth Towne Square Manager Melody Burnham, Plymouth Resident Cindy Kappedahl, her friend and daughter. 1. CALL TO ORDER A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair Crain on March 18, 1999 at 7:10 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Brown, seconded by Commissioner Johnson, to recommend approval of the February 18, 1999 minutes. Vote. 5 Ayes. Motion adopted unanimously. 3. PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORT PTS Manager Burnham reported that everything is going smoothly at Plymouth Towne Square. The questionnaires which were sent to people on the waiting list are being returned. There was one move out this month and that apartment has already been rented. Commissioner Bildsoe inquired as to how the new caretaker is working out. PTS Manager Burnham said he is doing good and the tenants comments are positive. 4. RESOLUTION TO REVISE HOUSING REHABILITATION LOAN PROGRAM GUIDELINES FOR ACCESSIBILITY IMPROVEMENTS AND MAXIMUM LOAN AMOUNTS Housing Specialist Stoen presented background on the request to raise the rehab loan amount which has not been raised for quite a few years. We would like to increase the amount to $15,000 with a possible $5000 more. The question was asked why we didn't just raise it to $20,000 but Housing Supervisor Goldsmith explained that we would like to use the lower figure in the brochure with the possibility to raise it depending on the amount of work to be done. Commissioner Brown asked what types of repair we look at. Housing Specialist Stoen replied that it's mostly structure and safety concerns. Commissioner Brown asked if fewer people will get help. Rebecca said that would be true. He also asked about the waiting list. There has not Plymouth Housing and Redevelopment Authority March 18, 1999 Page #2 been one in recent years. Program money has been coming in from home sales which has increased the amount of funds available. MOTION by Commissioner Bildsoe, seconded by Commissioner Johnson, adopting HRA Resolution 99-04, authorizing the revision of the housing rehabilitation loan program procedural guidelines for accessibility improvements and maximum loan amounts. Roll Call Vote. 5 Ayes. Resolution 99-04 adopted unanimously. 5. REDEMPTION OF FIRST TIME HOMEBUYER PROPERTY UNDER FORECLOSURE Housing Supervisor Goldsmith explained the circumstances and the history relative to property owned by a first time homebuyer, Cindy Kappedahl, which the City has a third mortgage on. The Housing Association has foreclosed on the property for failure to pay the assessment. The time for the homeowner to redeem the property expired on Tuesday, March 16, 1999. The second mortgage has been extinguished. The HRA filed intent to redeem the property so that the Board would time to review the situation. There is a more serious aspect to the problem. The first mortgage is entering into foreclosure. The HRA would become liable for the $8000 as well as the third mortgage. The HRA would need to put up $13,549 and that would be if the first mortgage was assigned. Potentially the cost could be $78,049. It was asked if anyone has contacted the first mortgage company to negotiate the amount. Commissioner Bildsoe gave a report showing how much the same type units have sold for recently. A similar one sold for $95,000 in January. Housing Supervisor Goldsmith explained that the first issue is getting to work with the previous owner. The monthly payments have not been made. Commissioner Johnson wanted to know how long the monthly assessments have not been made. Ms. Kappedahl has been working with CASH for the last year but they have not been paid from the beginning. She said there had been problems with mortgage payments not getting to the proper company. She did say she made one payment in November. Ms. Kappedahl stated that she did have the money for the assessment but was approximately two hours late delivering it. She said that she is trying to get her credit back on track. Housing Supervisor Goldsmith said the first issue we need to know is if she can retain her mortgage or have it reinstated and then the HRA would need to finance the loan. Commissioner Brown asked Housing Supervisor Goldsmith if he has had any conversation with the mortgage company. He replied that he had not at this point. Ms. Kappedahl has been working with CASH for the last year and has not been able to redeem the situation. Director Hurlburt asked if taxes are up to date. Commissioner Brown asked about utilities. Housing Supervisor Goldsmith said that staff could be allowed to exercise the redemption option and said we should have an inspection done right away. Housing Supervisor Goldsmith said he was not optimistic that this situation would work out. There was discussion about Ms. Kappedahl's financial situation. It has been up and down during the past year. Commissioner Johnson suggested we ask for a longer redemption time but Housing Supervisor Goldsmith did not think we could. Discussion was held regarding use of a contract for deed. The City would then be the owner of the property. Plymouth Housing and Redevelopment Authority March 18, 1999 Page #3 Chair Crain posed the question to the Board asking why we are here. It is to provide help for people to stay in their home. We want it to work but we are not bankers. However, Commissioner Brown said we are about home ownership and we could sell the contract at a discounted fee. MOTION by Chair Crain, seconded by Commissioner Helmken, recommending that the HRA not exercise right to redeem the property. Commissioner Brown asked what the worst scenario would be if we do not redeem the property. The answer is we would lose the money and the family. If we do ask to redeem we could lose the 20,000 if not more. The money to buy it would come from unrestricted funds of the Hra. CDBG or Affordable Housing Funds. Vote. 5 Ayes. Motion adopted unanimously. 6. MOBILE HOME REHABILITATION Housing Specialist Stoen explained there is a need for some mobile home rehab work to be done in Plymouth. There are two very critical situations right now. Chair Crain stated that it is a tough call because it is a non -conforming use. Housing Director Hurlburt said there are state laws that give the owner of the park rights and they could bring in new homes if they wanted. Commissioner Bildsoe asked if we would treat a regular house the same. Housing Director Hurlburt said we always try to help the homeowner. Commissioner Johnson asked if we would be setting a precedent by doing something like this. The tenants are not wanting the work done, it's the housing inspector that does. Commissioner Johnson asked if they can be condemned. The concern was that the owners would face homelessness. Commissioner Bildsoe recommended that they be referred to a social agency. They wanted to know how the inspector got in there. It began through Section 8 when the owner applied for assistance. Most of the trailers are very old. Commissioner Johnson asked if we could replace it. One mobile home has been inspected but not the other. MOTION by Commissioner Helmken , seconded by Commissioner Bildsoe , recommending that the HRA Board do nothing. Vote. 5 Ayes. Motion approved unanimously. 7. GRIEVANCE AND APPLICANT SELECTION PROCEDURES FOR SHENANDOAH WOODS APARTMENTS MOTION by Chair Crain, seconded by Commissioner Bildsoe, adopting HRA Resolution 99-05, Selection and Grievance procedures for metropolitan housing opportunities program units. Roll Call Vote. 5 Ayes. Resolution 99-05 adopted unamimously. Plymouth Housing and Redevelopment Authority March 18, 1999 Page #4 8. RESOLUTION CONSENTING TO TERMINATION OF A PROPERTY MANAGEMENT AGREEMENT AND EXECUTION OF A REPLACEMENT PROPERTY MANAGEMENT AGREEMENT FOR SHENANDOAH WOODS APARTMENTS MOTION by Commissioner Bildsoe, seconded by Commissioner Brown, adopting HRA Resolution 99-06, consenting to termination of a property management agreement and execution of a replacement property management agreement. Roll Call Vote. 5 Ayes. Resolution 99-06 adopted unanimously. 9. JOINT MEETING ON COMPREHENSIVE PLAN Ed stated that this is a very informative meeting Informational information only. 10. RESOLUTION RECOMMENDING CITY PARTICIPATION IN THE HENNEPIN HOUSING CONSORTIUM JOINT COOPERATION AGREEMENT MOTION by Commissioner Bildsoe, seconded by Commissioner Johnson, adopting HRA Resolution 99-07, recommending approval by the Plymouth City Council of a new Hennepin Housing Consortium Joint Cooperation Agreement Roll Call Vote. 5 Ayes. Resolution 99-07 adopted unanimously. 11. HRA STRATEGIC PLAN Commissioner Bildsoe explained that they have been meeting with various groups. They will bring it to the April meeting. Meeting adjourned at 9:50.