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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-18-2002MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY July 18, 2002 PRESENT: Commissioners Steve Ludovissie, Tim Bildsoe, and Sandy Hewitt ABSENT: Chair Susan Henderson, and Commissioner Michlitsch STAFF PRESENT: Housing Program Manager Jim Barnes, HRA Specialist Tracy Jones, Office Support Representative Barb Peterson OTHERS PRESENT: None 1. CALL TO ORDER Acting Chair Ludovissie called the Plymouth Housing and Redevelopment Authority meeting to order on July 18, 2002 at 7:04 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Hewitt, seconded by Commissioner Bildsoe, recommending approval of the June 20, 2002 minutes. Vote. 3 Ayes. Motion approved unanimously. 3. CONSENT AGENDA A. Plymouth Towne Square — Accept monthly housing reports. B. Section 8 Program. Approve directing staff to apply for additional Section 8 Mainstream Vouchers. MOTION by Commissioner Bildsoe, seconded by Commissioner Hewitt, approving the Consent Agenda items. Vote. 3 Ayes. Motion adopted unanimously. 4. PUBLIC HEARING A. Reallocation of 2001 and 2002 Community Development Block Grant funds. HRA Specialist Jones explained that the demand for Plymouth's First Time Homebuyer Program and the Housing Rehabilitation Program has risen. She said that as of May 31, 2002, the 2001 Rehabilitation Program had a balance of $903.49 and the FTHB had a balance of $13,386.78. At Plymouth Housing and Redevelopment Authority July 18, 2002 Page 2 the present time there are 10 FTHB applications and 4 Rehab applications on hold until additional funding is received. HRA Specialist Jones stated that the 2001 Affordable Housing Development Program currently has a balance of $235,941.83, which has been carried over from the 2000 CDBG allocation and is earmarked for Stone Creek Village. She said these funds are not going to be used until the fall of 2002 for Stone Creek Village because of financing delays. She said staff would like to reallocate the entire balance of $235,941.83 into the FTHB and the Housing Rehabilitation Program. HRA Specialist Jones stated that when funding is needed for Stone Creek Village, staff is recommending using Tax Increment Housing Assistance Program (TIHAP) funds. She said that Stone Creek Village is eligible for TIHAP funds and that would free up the less restrictive CDBG funds. HRA Specialist Jones stated that staff is asking to reallocate $100,000.00 into the FTHB Program and $135,941.83 into the Housing Rehabilitation Program leaving a zero balance in the 2001 Affordable Housing Development Fund. In addition, staff is recommending the reallocation of $75,000 from the 2002 Affordable Housing Development Fund into the First Time Homebuyer Program as well. There would be no additional reallocation for the Rehabilitation Program from that fund. Commissioner Ludovissie asked about the impact on Stone Creek Village and if there is any reason to believe they would not get funding under TIHAP funds. Housing Manager Barnes replied that the use of TIHAP funds would make it easier for them to proceed as TIHAP funds are less restrictive and they have to abide by Federal guidelines. Commissioner Hewitt asked about the delays. Housing Manager Barnes said they are occurring because of closing costs, etc., not construction delays. Commissioner Hewitt asked if we are concerned about the financial delays. Housing Manager Barnes said they are looking at 15 different sources of funding coming together so it takes more time. He said they're now looking at a start date of October, 2002. Commissioner Ludovissie asked if it would create a problem if the project is delayed longer than October with regard to construction costs. Housing Manager Barnes said that even if it doesn't begin until spring their pricing would remain the same. Acting Chair Ludovissie opened the Public Hearing at 7:10 p.m. No one was present so the public hearing was closed. Commissioner Hewitt asked how the amounts needed were determined for each program. HRA Specialist Jones said there are more FTHB right now than Rehab. The Harvest Hills development would use some FTHB funds. Commissioner Hewitt asked why demand for the Rehabilitation Program is so low right now. Housing Manager Barnes said we assist people who are in the lower income range so we lose a few people there and the other thing is we have not marketed the Rehabilitation Program because of the limitation of dollars. He said staff is looking at other programs to use in conjunction with the Rehabilitation Program. One is through MHFA Plymouth Housing and Redevelopment Authority July 18, 2002 Page 3 and the HRA could be an actual lender. The loan could be used for annual household incomes up to $65,000 and we could fund up to $25,000. Housing Manager Barnes explained how the program would work versus the program we now use. Another idea is to market this with another lender who offers this service. This would eliminate the actual work with the client that M49 • . erel Commissioner Ludovissie suggested doing a small study of where the need is and target those areas. Housing Manager Barnes said there has been a survey done in the past and the Elmhurst area was the prime area for rehab. Housing Manager Barnes said we could also do our own lending. Discussion followed and Commissioner Bildsoe suggested putting this topic on a later agenda for discussion. MOTION by Tim, seconded by Sandy, recommending that the Plymouth and Redevelopment Authority Board of Commissioners approve Resolution 2002-07 recommending the reallocation of funds from the Affordable Housing Development Program into the First Time Homebuyer Program and the Housing Rehabilitation Program, contingent on the Stone Creek Village project receiving Tax Increment Housing Assistance Program (TIHAP) funds. Vote. 3 Ayes. Motion adopted unanimously. 5. NEW BUSINESS 5A. Update on Plymouth Towne Square Resident Rent Recertifications Housing Manager Barnes stated that letters have been sent out to all tenants of Plymouth Towne Square informing them of what their rent amount will be. Housing Manager Barnes said that for the most part the residents understand why we had to make adjustments to the rent structure but he said some calls were received voicing concerns. Housing Manager Barnes explained the new rent structure and said that the $563 maximum rent increase was because one resident has not turned in all their data. He said that the maximum increase overall should be about $300. Commissioner Bildsoe asked if many increases would be over $200. Housing Manager Barnes replied approximately five. Housing Manager Barnes said that after the analysis of the rent changes was finished it looks like Plymouth Towne Square will be in better shape financially than we had anticipated. This change was because some incomes were being calculated incorrectly in the past, an increase in resident income when using 35% of the income and the increase in asset calculation. Commissioner Hewitt asked how many single persons are still in two bedroom units. Housing Manager Barnes replied that only four residents have moved into one -bedroom units. The residents in the two bedroom units are getting a good deal while in those units, because their rent will remain the same when they move to a one bedroom. Plymouth Housing and Redevelopment Authority July 18, 2002 Page 4 Commissioner Hewitt asked whether the vacant two bedroom units have been rented. Housing Manager Barnes said two are rented and they are going to do additional marketing in a wider area. He also said they found that people who applied recently are not ready to move so they will ask that question before accepting applications. Commissioner Hewitt asked if there is a check and balance systems in place at this time so net and gross are not being used interchangeably. Housing Manager Barnes said Plymouth Towne Square Manager Bosen is doing the initial review and Grace Management also looks at the figures. The Board suggested the HRA do periodic checks also. 511. Stone Creek Village Development — Replacement of CDBG funds with Tax Increment Housing Assistance Program (TIHAP) Funds Housing Manager Barnes said that staff is asking to take funds from the reallocation of the CDBG Action Plan and use them for the First Time Homebuyer and Rehabilitation Programs. He said he has been looking at what would be the best use of dollars available to us. Housing Manager Barnes explained the Tax Increment Housing Assistance Program (TIHAP), how it was set up in 2000 and is funded through the excess increment we receive from two existing TIF districts. However, the TIHAP can only be used for multiple units. It's more constrictive than CDBG. Staff is looking at switching funding sources around and making two funding sources active. Housing Manager Barnes explained that there are now active programs open, both First Time Homebuyer and Rehabilitation, so there is a need to switch CDBG out of Stone Creek Village. In changing the $236,000 from TIHAP that will leave a balance of approximately $40,000 in that account until TIF District 7-6 starts making contributions. There will be funds to help multi family housing in the future. Commissioner Hewitt asked if there is a lot of rental housing coming in the future. Housing Manager Barnes said there are 1000 units under construction or beginning in the next few months. This number might increase when Northwest Plymouth opens up in a few years. Commissioner Hewitt asked about the County Road 73 project. Housing Manager Barnes said there is a spot for some townhome development in that area. He said if the transit station is built that would also make a difference. The plan now leaves the strip mall where it is. Housing Manager Barnes said of the 1000 units most are market rate. Only two buildings are offering affordable housing, Stone Creek Village and The Regent at Plymouth. MOTION by Commissioner Hewitt, seconded by Commissioner Bildsoe, recommending that the Plymouth and Redevelopment Authority Board of Commissioners approve Resolution 2002-08 recommending the allocation of $236,000 from the Tax Increment Housing Assistance Program for the Stone Creek Village project. Vote. 3 Ayes. Motion adopted unanimously. Plymouth Housing and Redevelopment Authority July 18, 2002 Page 5 5C. August HRA meeting date change. Housing Manager Barnes explained that we might want to make a change in the next meeting date to coincide with budgets. It was suggested that the meeting be changed to August 29th, as the budgets would not be ready by August 22nd. Commissioner Bildsoe suggested meeting on Monday, August 26th. It was decided that August 26th would be the next meeting date. 5D. Approve Resolution Permitting Hennepin County to participate in the Stone Creek Village development project. Housing Manager Barnes stated that in 2001 Dominium Development received a loan from Hennepin County in the amount of $400,000 to be used for Stone Creek Village. The County requires that the HRA adopt a resolution giving them permission to participate in this project within the City of Plymouth. Housing Manager Barnes said we could adopt a five-year memorandum of understanding so we would not have to do these resolutions on an individual basis. The consensus of the Board was to approve each one as they are received. MOTION by Commissioner Hewitt, seconded by Commissioner Bildsoe, recommending that the Plymouth and Redevelopment Authority Board of Commissioners adopt Resolution 2002-09 allowing the Hennepin County Housing and Redevelopment Authority to participate in the Stone Creek Village project being built by Dominium Development. Vote. 3 Ayes. Motion adopted unanimously. 5. Adjournment Meeting adjourned at 7:55. HRA/Minutes/071802