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
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July 18, 2002
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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
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July 18, 2002
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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.
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July 18, 2002
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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.
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July 18, 2002
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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