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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 06-21-2001MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY June 21, 2001 PRESENT: Commissioners Tim Bildsoe, Leon Michlitsch, Sandy Hewitt and Steve Ludovissie ABSENT: Chair Susan Henderson, Planning Liaison Kapila Bobra STAFF PRESENT: Executive Director Anne Hurlburt, HRA Specialist Melissa Carnicelli, Office Support Representative Barb Peterson OTHERS PRESENT: West Hennepin Community Builders Representatives Marcos Warner and Ward Krueger 1. CALL TO ORDER A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Commissioner Bildsoe on June 21, 2001, at 7:03 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie, to recommend approval of the May 17 , 2001, meeting minutes. SUPPORTING WEST HENNEPIN COMMUNITY BUILDERS SUPERNOFA APPLICATION TO MINNESOTA HOUSING FINANCE AGENCY HRA Specialist Carnicelli explained that West Hennepin Community Builders is a nonprofit agency that we have worked with in the past. West Hennepin Communit y Builders is considering purchasing a parcel of land on the east side of County Road 101 north of Kreatz Lake and are hoping to build approximately 8-10 twin homes on the site. There is no local funding available to help them so they are requesting our assistance in the form of a letter of support for their application to MHFA for funding for the project. Marcos Warner, representing Community Builders, explained that he just began working with Community Builders this year, but his background includes 20 years of experience with HRA’s and nonprofit organizations. He explained that they have access to some funds that do not need to be paid back affording the buyer a smaller mortgage. He introduced Ward Krueger, who has a background in real estate sales and now works with Community Builders. Mr. Krueger has done land development and builds extensively in Plymouth. Mr. Krueger described the site and stated that it’s a difficult site but makes a good transition from commercial to residential. The homes would be for sale, not rental. They do not have the site control as of yet and cannot proceed with the project until that happens. Commissioner Ludovissie asked how much land was developable. Mr. Krueger stated that it was about 4 acres. They are not asking for an approval tonight, but are requesting a letter from the HRA supporting their application. If the site is not approved for this type of development they will not be buying it. MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe recommending that the HRA Board draft and execute a letter of support for West Hennepin Community Builders’ MHFA SuperRFP application, if Community Builders has site control. Vote. 4 Ayes. Motion adopted unanimously. Plymouth Housing and Redevelopment Authority June 21, 2001 Page 2 3. FOLLOW UP DISCUSSION ON DEVELOPMENT OF METROPOLITAN HOUSING OPPORTUNITIES PROGRAM (MHOP) UNITS Director Hurlburt explained that this topic is in follow up to last month’s presentation on the development of Metropolitan Housing Opportunities Program (MHOP) units from Minnesota Housing Resources. The HRA needs to decide whether they wish to participate in the program and in what capacity. There is currently another project being proposed in Plymouth, Stone Creek Village. They have approval for 14 MHOP units in a 140 apartment project. There are also 6 existing MHOP units in Shenandoah Woods Townhomes making a total of 20 MHOP units in Plymouth at the present time. Another 20 units proposed by Minnesota Housing Resources at scattered sites which would make a total of 40 units. Commissioner Hewitt asked how much control we would have over these units. HRA Specialist Carnicelli stated that would be to the HRA’s discretion. The homes would be purchased from private sellers. Director Hurlburt said we are not recommending that the HRA manage the units but use an arrangement similar to Shenandoah Woods which is privately owned and managed by a management company, and the Annual Contributions Contract (ACC) is held by Minneapolis Public Housing Authority. Commissioner Ludovissie asked if the properties would be exempt from real estate taxes. They would essentially be public housing with a payment in lieu of taxes, which would recognize some local government costs. Discussion was held regarding who would own and manage them. It was agreed that the HRA is not structured to own or manage MHOP units. Commissioner Ludovissie asked if we would have control, what our role would be, and if we would have any say over the management if it were privately owned. It was suggested that the Metropolitan Council would probably be the housing authority to hold the ACC to these units. Commissioner Ludovissie asked if there was a downside. Director Hurlburt stated that it would bring public housing into the city and that might be considered a downside by some. Commissioner Hewitt expressed a concern regarding transportation and availability of social services for the residents. Commissioner Bildsoe asked if 40 of these units would be too large a number for the City. Director Hurlburt indicated she thought 40 units in Plymouth could be absorbed. The time frame was discussed and Director Hurlburt said Minnesota Housing Resources is ready to proceed right now as they need to place units very soon. The HRA would want to know where the homes are located before the purchase takes place, so we make sure they are accessible to transit and close to jobs. Commissioner Ludovissie inquired about penalties if we agree to 20 units but they don’t get used or do not meet their specified time frame. Commissioner Bildsoe expressed that could happen as it will be difficult to find places in Plymouth. Commissioner Bildsoe asked if they had started in other cities. HRA Specialist Carnicelli replied that they have but she is not sure about the success and timing. There would be no penalty to the HRA if the units are not placed within the time frame. It was decided that we should draft a cooperation agreement for appropriate parties to approve. The City Council, Metropolitan Council and HRA would need to agree on the terms. Plymouth Housing and Redevelopment Authority June 21, 2001 Page 3 MOTION by Commissioner Ludovissie, seconded by Commissioner Michlitsch, recommending that the HRA Board of Commissioners support the Minnesota Housing Opportunities Program providing up to twenty homes in scattered sites, accessible to transportation and jobs, with the Metropolitan Council holding the ACC and a nonprofit organization owning the units. Vote. 4 Ayes. Motion adopted unanimously. HRA Specialist Carnicelli added that Minnesota Housing Resources were able to acquire all the units they needed in Woodbury in less than six months. Commissioner Hewitt asked if the applicants would be from the Section 8 waiting list first. Director Hurlburt said 20% of incentive units would be from our waiting list and the rest from the Minneapolis PHA waiting list. Commissioner Bildsoe asked about the length of the lease. Director Hurlburt said that assisted units generally have a twelve month lease. HRA Specialist Carnicelli added Section 8 now allows month to month leases. The HRA board agreed that they would prefer 12 month leases. Commissioner Ludovissie suggested staff have a draft cooperative agreement by the next meeting. 4a. TERMINATION OF CONTRACT WITH WALKER MANAGEMENT, INC. FOR PLYMOUTH TOWNE SQUARE (PTS) Director Hurlburt reported that staff submitted the proposed contract termination to the City Council, which is required by the contract as they are the lender, and the Council gave their consent. MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie, that the HRA Board adopt the resolution terminating its contract with Walker Management, Inc. for Plymouth Towne Square (PTS) effective December 31, 2001. Roll Call Vote. 4 Ayes. Motion adopted unanimously. Commissioner Hewitt inquired as to whether Plymouth Towne Square Manager Melody Burnham had been notified that we would be sending out an RFP for management services at Plymouth Towne Square. Director Hurlburt replied that she had attended the resident meeting at Plymouth Towne Square and spoke with Manager Burnham before the meeting. The residents at the meeting were very supportive of the way things are now but she did receive several calls after the meeting with varied opinions. 4b. REQUEST FOR PROPOSALS (RFP) FOR MANAGEMENT SERVICES AT PLYMOUTH TOWNE SQUARE (PTS) Director Hurlburt reviewed the schedule that will be followed for the RFP and Commissioner Bildsoe stated he thought the list of companies to receive letters would be larger. Director Hurlburt explained that we wanted those experienced with senior housing only. Director Hurlburt said if the Board approved the RFP tonight, a letter could be sent next week to prospective companies. Plymouth Housing and Redevelopment Authority June 21, 2001 Page 4 MOTION by Commissioner Ludovissie, seconded by Commissioner Michlitsch, adopting a motion approving issuance of the RFP for management services for Plymouth Towne Square. Vote. 4 Ayes. Motion passed unanimously. Discussion was held regarding the involvement of Plymouth Towne Square residents in the selection of a management company. Commissioner Bildsoe asked whether this issue could be handled by the Resident Council. Director Hurlburt responded the group may be too large. Commissioner Ludovissie stated he supports resident participation and felt a random group of residents would be possible but they clearly need to understand their role. He suggested using this group as a resource and tap their knowledge as to what they think the needs are. Commissioner Bildsoe stated that economics would also be an important consideration. Director Hurlburt discussed the rent subsidies at Towne Square. A recent analysis found that seventy five percent of tenants are paying more than a third of their income for rent and utilities even though the rents are below market rates. Director Hurlburt said the goal is to have affordable housing for seniors. The subsidy levels have not been looked at since Plymouth Towne Square opened. Residents are paying more for rent than they can afford even though we haven’t raised the rents. We need to look at the level of subsidy and possibly adjust the rents. Director Hurlburt will put together some figures for the next meeting. She said some residents were worried about the rents going up. Commissioner Ludovissie suggested that a new management company might be less expensive in the long run. Commissioner Ludovissie asked if rents were their only concern. Director Hurlburt replied that this seemed to be the primary concern, and that they are concerned about change. Commissioner Ludovissie asked if we will do a five or ten year study. Director Hurlburt said we need to make sure we are putting the right amount into reserves. Hopefully Walker can provide some additional information. By the next meeting Director Hurlburt will prepare an analysis and supply information on costs. Commissioner Hewitt asked about the ice dam issue. Director Hurlburt said City inspectors are beginning to get involved, and that repairs inside units have already been ordered. Commissioner Bildsoe talked about the resident participation and suggested we set a schedule for them. Director Hurlburt said she would let the residents know what our process will be. Commissioner Hewitt suggested letting the residents decide how they want to choose their representation. There should probably be three people and they could be part of the selection process. They will need to be at the August and September board meetings. 4c. PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORT There were no questions regarding the housing report. 5. ADOPTION OF REVISIONS TO THE FIRST TIME HOMEBUYER PROGRAM PROCEDURAL GUIDE HRA Specialist Carnicelli reviewed the Procedural Guide and made revisions, of which many are things we have been doing but had not been included in the guide. One of these inclusions is Plymouth Housing and Redevelopment Authority June 21, 2001 Page 5 that applicant eligibility should include U.S. citizenship or legal immigration status. The second is the additional education requirement to attend classes offered by CASH. HRA Specialist Carnicelli explained the classes. Some selection policies were changed. A preference for applicants with children attending Plymouth schools and five family members would be combined to be a “applicants with dependent children” selection preference. We have separated living and working in Plymouth into two preferences. The other change is in the calculation of financial assistance. This change uses a needs based formula instead of an income and household size schedule. We have been able to leverage more funds recently and the program has been very successful. MOTION by Commissioner Bildsoe, seconded by Commissioner Hewitt, recommending that the HRA Board of Commissioners adopt the attached resolution revising the local policies of the First Time Homebuyer Program Procedural Guide. Roll call Vote. 5 Ayes. Motion adopted unanimously. 6. RESOLUTION APPROVING THE T.R.A.I.L.S. FAMILY SELF-SUFFICIENCY PROGRAM BUDGET AND EXTENSION OF THE PROGRAM AGREEMENT HRA Specialist Carnicelli explained the main purpose of the T.R.A.I.L.S. Family Self- Sufficiency Program is to help participants get off of the Section 8 program. When they finish the program and leave Section 8, they receive the money placed in escrow to use at their discretion. Several Plymouth participants have graduated and used their escrow funds to purchase houses. Commissioner Hewitt asked if we are getting funding from Hennepin County. HRA Specialist Carnicelli replied that we do not. Commissioner Bildsoe asked if we are satisfied with Employment Action Center. HRA Specialist Carnicelli said we are and they are providing services at a fairly low cost. Commissioner Ludovissie asked if they track the participants after they are off the program. HRA Specialist Carnicelli said that from July, 2000 to present, seven Plymouth participants have completed the program, with three participants using their funds to purchase homes. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, recommending that the HRA Board adopt the resolution approving the budget and extension of the program agreement for the T.R.A.I.L.S. Family Self-Sufficiency Program. 7. PROJECT BASED ASSISTANCE ADMINISTRATIVE AND UNIT SELECTION POLICIES HRA Specialist Carnicelli explained Project Based Assistance (PBA). The PBA program allows the HRA to convert up to 20 percent of its Section 8 vouchers from tenant-based assistance to rental assistance available for specific units or projects only. Based on that formula, we have 28 units eligible. We do not plan on advertising at this time but the policy needs to be in place. Director Hurlburt said we could possibly take advantage of this in the fall. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, recommending that the HRA Board of Commissioners adopt the Project Based Assistance Addendum to the Section Plymouth Housing and Redevelopment Authority June 21, 2001 Page 6 8 Administrative Plan and Project Based Assistance Unit Selection Policy, in accordance with applicable HUD regulations. Roll Call Vote. 4 Ayes. Motion adopted unanimously. 8. OTHER BUSINESS Director Hurlburt said our next meeting agenda will include the Plymouth Towne Square issues. Commissioner Bildsoe inquired about the staff opening. Director Hurlburt said she has interviews Friday and Monday for the position. 9. ADJOURNMENT MOTION by Commissioner Ludovissie, seconded by Commissioner Bildsoe to adjourn the meeting. Meeting adjourned at 8:35 p.m.