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
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July 19, 2001
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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
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July 19, 2001
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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,
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July 19, 2001
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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.
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July 19, 2001
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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.