Loading...
HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-19-2001MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY July 19, 2001 PRESENT: Chair Susan Henderson, Commissioners Tim Bildsoe, Leon Michlitsch, Sandy Hewitt and Steve Ludovissie, Planning Liaison Kapila Bobra ABSENT: None STAFF PRESENT: Executive Director Anne Hurlburt, Office Services Supervisor Denise Hutt, HRA Specialist Melissa Carnicelli, Office Support Representative Barb Peterson OTHERS PRESENT: None 1. CALL TO ORDER A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair Henderson on July 19, 2001, at 7:02 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Michlitsch, seconded by Commissioner Hewitt, to recommend approval of the June 21, 2001, meeting minutes. 3a. Plymouth Towne Square Rents and Rent Subsidies Director Hurlburt explained her report regarding Plymouth Towne Square. Staff are in the process of preparing the budget for 2002, looking at new management for Plymouth Towne Square, and have had a request by the Manager of Plymouth Towne Square for additional very-low income subsidized units. In preparing for these issues, the question was raised of whether the HRA is meeting its original mission of providing affordable housing for seniors. Director Hurlburt suggested that the Board discuss the questions in the report to provide staff with direction on the budget. The subsidy for Plymouth Towne Square is the largest single line item for the HRA’s General Fund budget. Director Hurlburt suggested the Board may wish to hold another discussion regarding the budget before the next HRA meeting as the draft budget is due to be sent to the City Council after our next regular meeting. Director Hurlburt suggested the Board discuss whether an increase in rent is needed and how the rents should be determined. Some tenants are paying more than they can afford for rent and others not enough based on their current income. The current system applies two levels of subsidies, very-low and low income, with minimum rents. Director Hurlburt also suggested the Board talk about the affordability standard and what it should be for Plymouth Towne Square. Another question to discuss is whether or not utilities should be considered when calculating rent as they are for other housing assistance programs. Director Hurlburt stated that the impact on property taxes should be evaluated. Commissioner Ludovissie said we need to look at rents in Plymouth Housing and Redevelopment Authority July 19, 2001 Page 2 relation to taxes and also the amount the HRA needs to put into reserves for future maintenance of the building. There are current reserves but the amount may be more than will be needed in the future. Director Hurlburt said staff can provide different scenarios for evaluating impacts of various rent levels. Commissioner Hewitt inquired about two bedroom apartments and asked if they are always rented to couples. Director Hurlburt said they have always been offered only to couples, but half are now occupied by singles. Commissioner Hewitt also asked if a tenant would be allowed to have a roommate in a two-bedroom apartment. Director Hurlburt said that would be allowed although the occupancy standards would have to be met. Commissioner Bildsoe stated that the Board should look at what the original mission was for Plymouth Towne Square. He felt if the mission is being achieved it is fair for the taxpayers, but if the mission is not being accomplished, then it is not fair for the taxpayer to pay even $1 to subsidize it. Commissioner Ludovissie asked if the HRA’s intent had been to create a deep subsidy for tenant incomes or if it was to accommodate a variety of incomes in general. He suggested the Board look at the community as a whole and not just discount the low or moderate income senior renters; we need to consider the financial burden of the property on the taxpayers. Commissioner Ludovissie expressed that the Board should support programs that serve more than just one sector of the housing need for the community. He stated that the Board should decide how deep a subsidy is needed for, how many people, and what this would do relative to the taxpayers. Commissioner Bildsoe stated we should look at opportunities for both ends of the income spectrum. There was discussion on how the current structure was put into place. The idea was not to subsidize everybody very deeply, but to have a mix of incomes in the building. However, there are a large number of seniors who would now qualify for very-low income subsidies, who only qualified for a low income subsidy at the beginning. Many have incomes that have gone up, but health costs have also risen, and health care costs are deducted from income so their incomes are lower. Their incomes now would qualify them for very-low subsidies. About a year ago Plymouth Towne Square Manager Burnham requested additional very-low income subsidies to be used for the tenants who had been on the waiting list for very-low subsidies. Staff’s review revealed that these tenants may not be the ones who need additional subsidies the most, based on the share of their incomes they pay for housing. Commissioner Ludovissie questioned if the tax levy continued to be a sensitive issue. He suggested that the Board use other financing sources such as Section 8. Commissioner Hewitt concurred. Commissioner Bildsoe suggested that some people should pay closer to market rate if they can afford to do so. Discussion followed as to the management of PTS. Chair Henderson asked how the revenue shows up on the budget report. Commissioner Ludovissie asked why actuals are lower than year to date. Director Hurlburt said the budget numbers reflect a larger subsidy than has been utilized. Commissioner Ludovissie agreed with Commissioner Bildsoe that we should ensure that the Plymouth Housing and Redevelopment Authority July 19, 2001 Page 3 building is well maintained now to avoid heavy taxation in the future. Commissioner Michlitsch stated that we shouldn’t put more into reserves than we need. Director Hurlburt said that Walker Management has not provided us with the backup behind the amount which has been put into maintenance/operating reserves but she may be able to get those figures. There was discussion on whether or not the “full rents” for PTS apartments should be increased? Should rents be set to correspond more closely with the market? If the apartment rents are set higher than the Section 8 limits the units would not qualify for assistance from Section 8. Chair Henderson suggested we need a mission statement. Discussion was held regarding the mission of Plymouth Towne Square. Commissioner Hewitt said the problem is that every person defines affordable housing differently. Director Hurlburt said that our mission is “affordable housing for seniors”. There is a concern that there not be huge changes for the people living there now. Commissioner Ludovissie is more concerned about the direction of Plymouth Towne Square in the future rather than what the Board is dealing with now. Commissioner Ludovissie asked how “aging in place” is working at Plymouth Towne Square. The average age at PTS now is 79 and they need to be able to live independently. Discussion followed regarding independent and assisted living. There was discussion on whether or not the current “minimum rents” should be changed. Should there continue to be two different levels of subsidy (very-low and low income)? Commissioner Hewitt prefers one subsidy at 40%. Director Hurlburt responded that when using 40% some residents would get decreases but most of the rents would go up. At 35% more tenants would see rent decreases. Two bedroom apartments were discussed and if we should require a resident to move into a one bedroom when their spouse dies. Four options were discussed for this situation which were to stay where they are and pay the difference, move into a one bedroom, find a roommate, or move to a different facility. The commissioners all agreed it would be a good idea to have just one subsidy level, rather than very-low & low income subsidies. They also felt that utility costs should be considered in the tenant rent calculation as in Section 8. Heat is included in the Plymouth Towne Square rent but electrical is paid by the tenant. It was suggested that the Board look at how tenant income is calculated and revise the current policy if needed. Director Hurlburt stated the Board needs to decide on a standard for what percent of income is considered an affordable rent. Section 8 uses 30% of monthly income for vouchers. HUD allows people to pay 40% of their monthly income to permit greater choices. Several scenarios using different percentages of tenant incomes to calculate rents were discussed. Discussion was held regarding how to make a transition from what tenants are currently paying to a new plan. Commissioner Bildsoe suggested that Director Hurlburt put additional information together for the next meeting. Director Hurlburt said we need to look at the expense budget and the status of project reserves. Commissioner Ludovissie suggested a five-year plan with capital expenses, Plymouth Housing and Redevelopment Authority July 19, 2001 Page 4 using different scenarios. Director Hurlburt is expecting the management companies to supply some information in their proposals that may be useful. Commissioner Hewitt asked how many management companies have put in a bid so far. Director Hurlburt distributed a list with the names of the companies who toured the facility. Proposals are due July 31, 2001. Director Hurlburt stated that the current HRA opening for the position of Housing Program Manager has been filled by James Barnes. He is currently a Housing Professional with the Minnesota Housing Finance Agency (MHFA). Recommendations: Director Hurlburt suggested having a special session before our next meeting to discuss Plymouth Towne Square and the preliminary 2002 budget. It was decided to meet on August 6 at 7:00 p.m. 3b. Plymouth Towne Square Resident Satisfaction Survey The HRA Board recommended that this report be filed. 3c. Plymouth Towne Square Monthly Housing Report There were no questions regarding this report. 4. AUTHORIZATION TO EXECUTE A COOPERATION AGREEMENT FOR 20 METROPOLITAN HOUSING OPPORTUNITIES UNITS TO BE SITED IN THE CITY OF PLYMOUTH Staff directed the City Attorney to draft a Cooperation Agreement and HRA Specialist Carnicelli asked that the Board adopt the resolution of approval. MOTION by Commissioner Bildsoe, seconded by Commissioner Hewitt, that the HRA Board adopt the resolution authorizing the execution and providing a recommendation to the City Council to authorize the execution of a Cooperation Agreement between the HRA, the City of Plymouth and the Minneapolis Public Housing Authority to acquire 20 Metropolitan Housing Opportunities Program units located on scattered sites. Commissioner Ludovissie asked if the HRA could become much more specific on the criteria for selecting units as we proceed. The Board felt the resolution wording should be changed to include “program units based on criteria that would include, but not be specific to”. Commissioner Ludovissie questioned #3(e) as to why no lien against the MHOP Units or assets of the MPHA or HRA shall attach. HRA Specialist Carnicelli responded that it was based on the agreement for the Shenandoah Woods Apartment MHOP units. Plymouth Housing and Redevelopment Authority July 19, 2001 Page 5 Roll call Vote. 5 Ayes. Motion adopted unanimously. 5. HOUSING CONDITIONS SURVEY AND MARKETING RESULTS OF ELMHURST AND ELMHURST GATEWAY STUDY AREAS HRA Specialist Carnicelli explained the background of the study. A neighbor came to a City Council meeting and suggested looking at this neighborhood for possible redevelopment. Staff did a planning study, and surveys were sent out to residents to gather information on housing conditions in the neighborhood. There was a lot of interest by residents in housing rehabilitation programs but not many were income eligible for HRA programs. Commissioner Hewitt asked if the neighbor who originally asked the question was given the report and it was explained that he had been at the HRA meeting when the discussion was held. The Board recommended that this report be filed. 6. CONSENT TO PROJECT FINANCING BY HENNEPIN COUNTY HRA FOR OPPORTUNITY PARTNERS Opportunity Partners owns property at 10000 51st Avenue N., which is exempt from property taxes. They have submitted a request to Hennepin County to issue tax-exempt revenue bonds to help refinance its conventional mortgage loans for homes located within Hennepin County. The Plymouth HRA’s consent is required. Staff added a condition in the draft resolution that would require execution of an agreement between the Borrower and the City of Plymouth providing for payments in lieu of taxes. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, recommending that the HRA Board adopt a resolution waiving notice and consenting to the financing of a project by the Hennepin County HRA. Roll Call Vote. 5 Ayes. Motion adopted unanimously 7. OTHER BUSINESS A special HRA Board meeting has been set for August 6th at 7:00 p.m. 8. ADJOURNMENT Meeting adjourned at 9:00 p.m.