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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 10-10-2002MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY October 10, 2002 PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, Leon Michlitsch, and Sandy Hewitt ABSENT: Tim Bildsoe STAFF PRESENT: Housing Program Manager Jim Barnes, Housing Technician Paula Dorn, Office Support Representative Barb Peterson OTHERS PRESENT: Steve Fenlon representing West Lutheran High School, Council Member Scott Harstad, Mari Jo Grace representing Grace Management 1. CALL TO ORDER Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order September 19, 2002 at 7:04 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Hewitt, seconded by Commissioner Michlitsch, approving the amended September 19, 2002 minutes to include a change to the HRA Strategic Plan wording in Paragraph 3, from "Director Hurlburt suggested taking an inventory of what the Board does now and prioritize the opportunities we want to focus on", to "Director Hurlburt suggested taking an inventory of what the HRA Board and staff do now and prioritize the opportunities we want to focus on". Vote. 4 Ayes. Motion approved unanimously. 3. CONSENT AGENDA A. Plymouth Towne Square — Accept monthly housing reports. B. Revised 2002 Section 8 Program Budget. Approve request to accelerate the change of the Housing Eligibility Specialist to full time status. MOTION by Commissioner Hewitt, seconded by Commissioner Michlitsch, approving the Consent Agenda items. Vote. 4 Ayes. Motion adopted unanimously. Housing Manager Barnes added two discussion items to the agenda. They are #5. Land Trusts and #6. Plymouth Towne Square. Plymouth Housing and Redevelopment Authority October 10, 2002 Page 2 4A. REVISION TO THE PROPOSED PUBLIC HOUSING AGENCY ANNUAL PLAN Housing Technician Dorn stated that as a Housing Authority that administers a Section 8 Program, the City of Plymouth is required to use a Public Housing Agency Annual Plan. Housing Technician Dorn said that the Plymouth HRA serves about 335 very low-income families at this time and the number is expected to grow. She stated that the HRA has applied for an additional 25 Fair Share Vouchers and 25 Mainstream Vouchers but has not yet received notification from HUD as to whether the vouchers have been approved. If approved for both awards, it would increase our allocation from 177 vouchers to 227 vouchers. Our allocation that we currently have for Mainstream Vouchers is 30. If we receive the additional award for the 25 Mainstream vouchers it will increase the total of Mainstream Vouchers to 55 overall. These vouchers are used only for elderly handicapped/disabled applicants only. Housing Technician Dorn reported that there is a proposal for one change to the Annual Plan. The proposed change is that a family must report a change to the HRA and add a person (s) to their Section 8 certification and lease if they have a guest in their unit for more than fourteen consecutive days in a year. This is being changed from a (30) day increment to deter unauthorized persons in the home. Housing Technician Dorn stated that prior to the submission of the updated Annual Plan to HUD, a public hearing must be held, members of the resident board must be able to review the plan, and the HRA Board must approve the Plan. She stated that a copy of the letter, which was sent to the resident advisory board, is attached and stated that no comments were received. Housing Technician Dorn also stated that a forty-five day notice was published in the Sun -Sailor for the public hearing to be held on October 10, 2002 and recommended that after holding the public hearing the HRA Board adopt the resolutions approving the update to the Plan. Commissioner Hewitt asked if the waiting list would be opened if the extra fifty vouchers are received. Housing Technician Dorn responded we would take the existing people off the list that we could issue the vouchers to and then hopefully open it again in January or February, 2003. If the HRA does not receive the vouchers we would probably not open the wait list until the fall of 2003. Chair Henderson opened the public hearing. After asking if anyone would like to speak on this issue and hearing none, Chair Henderson closed the public hearing. MOTION by Commissioner Hewitt, seconded by Commissioner Ludovissie, approving HRA Resolution 2002-10 adopting the update to the Public Housing Agency Annual Plan for the fiscal year beginning January 1, 2003, in accordance with applicable HUD regulations and HRA Resolution 2002-11 adopting a revision to Chapter 6, factors related to Total Tenant Payment and Family Share determination of the Section 8 Housing Assistance Program Administrative Plan. Vote. 4 Ayes. Motion adopted unanimously. Plymouth Housing and Redevelopment Authority October 10, 2002 Page 3 4B. West Lutheran High School — Request for the Plymouth HRA to approve issuance of revenue bonds in the amount of $2,100,000. Housing Manager Barnes presented background information about West Lutheran High School. He stated that West Lutheran High School has requested that the HRA issue Industrial Development Revenue Bonds in the principal amount of $1,999,500 to refinance the existing private sector debt they have as a result of constructing the facility in 1996 and additional improvements made in 2001. He said the bonds will be issued for a 20 year term repaid through 240 equal payments. The bonds will have periodic rate adjustments every five years. The initial rate will be 4.5% with a lifetime maximum cap of 7.0%. Housing Manager Barnes stated that the HRA has the authority to issue the bonds, but requires the City Council to authorize the Mayor to sign the documents. He stated there will not be any financial impact or liability for the HRA or the City. The HRA will also receive an application fee and a bond fee of one-eighth of 1 percent of the bond amount at closing. Housing Manager Barnes suggested the HRA place a condition on this issue that it close in the 2002 calendar year so it will not affect the "Bank Qualification" limit of $10 million dollars should the HRA decide to issue additional bonds in 2003. Housing Manager Barnes said staff recommends that following the public hearing, the HRA move to approve the resolutions authorizing the sale and issuance of Industrial Development Bonds, in an amount not to exceed $1,999,500 on behalf of West Lutheran High School and recommend that the City Council authorize the Mayor to execute the required documents. Commissioner Ludovissie asked to clarify the statement that the HRA would not have any liability. Housing Manager Barnes responded that there would be absolutely no liability for the HRA. The good name of the HRA is the only thing that could be potentially damaged. Chair Henderson asked why the amount decreased from $2,100,000 on the agenda and the figure is now $1,999,500. Housing Manager Barnes replied that typically the figure used at the beginning is higher until the all of the final costs and fees are confirmed and the figure has been adjusted to 1,999,500 to reflect the actual amount required. Chair Henderson opened the public hearing. Steve Fenlon, representing West Lutheran High School spoke saying that it is very important the HRA know who is responsible for the loan and who the buyer is. He stated that Anchor Bank would handle the financing and they have been associated with the School in the past. He said that a non-profit organization is not able to issue bonds on its own and needs the help of a government entity. Chair Henderson closed the public hearing. Plymouth Housing and Redevelopment Authority October 10, 2002 Page 4 MOTION by Commissioner Hewitt, seconded by Commissioner Ludovissie, to adopt Resolution 2002-12 giving preliminary approval to a project on behalf of West Lutheran High School and its financing under Minnesota Statutes, Sections 469.152 through 469.165; referring the proposal to the Minnesota Department of Trade and Economic Development for approval; and authorizing preparation of necessary documents and Resolution 2002-13 relating to $1,999,500 Education Facilities Revenue Note (West Lutheran High School Project), Series 2002; approving and authorizing the issuance and sale thereof pursuant to Minnesota Statutes, Sections 469.152 to 469.165, as amended. Vote. 4 Ayes. Motion adopted unanimously. 5A. Land Trusts Commissioner Hewitt gave a brief report about a seminar she attended regarding land trusts, specifically the Rondo Land Trust, presented by Greg Finzell, Executive Director of Rondo Community Land Trust. Commissioner Hewitt proposed that Mr. Fenzel be invited to an HRA meeting to provide the Board with information about land trusts. She said that members of the City Council are also interested in hearing him speak and is requesting that he speak at the strategic planning session, which will be held on November 21, 2002. Commissioner Ludovissie stated that he was in favor of having him speak. Chair Henderson stated it would be a good idea but not in conjunction with the strategic planning session. Commissioner Hewitt suggested we ask him to speak prior to the November 21st meeting if information about land trusts is to be included in the strategic plan. Housing Manager Barnes stated that staff has done some research into land trusts and will be providing the Board with the information they have compiled. Housing Manager Barnes suggested that staff contact Mr. Finzell to see what dates he would be available and then set a time for a presentation. Commissioner Hewitt said that would be okay but that members of the Council would need to know the date as soon as possible so they can plan to attend the HRA planning session. Chair Henderson said that land trusts could be handled as a potential goal for purposes of the planning session. Chair Henderson voiced concern about being able to cover such a large amount of information at the planning session. Housing Manager Barnes explained that he is working on a draft plan for the Strategic Planning Session and will discuss it with Chair Henderson. He reviewed different options that the Board can take and areas that can be addressed such as development, redevelopment, first time homebuyer, rental, economic development and social services. Housing Manager Barnes said that redevelopment will become important in the not too distant future. He spoke about social services and discussion followed. Commissioner Ludovissie voiced a concern about time constraints and being able to accomplish all of the planning in a few hours. It was suggested holding two meetings, one a learning session and then a decision making session. Chair Henderson suggested that the learning process be at the scheduled meeting on November 21st. Commissioner Ludovissie said he preferred two meetings. The consensus of the Board was to do the decision making at the January meeting. Discussion was held on how the meeting would be conducted. Plymouth Housing and Redevelopment Authority October 10, 2002 Page 5 6A. Plymouth Towne Square Housing Manager Barnes stated that Director Hurlburt, City Manager Johnson, Finance Director Hahn and he had a meeting with Springsted regarding Plymouth Towne Square. He said they are considering selling the bonds on the market and explained various options they could implement. Commissioner Ludovissie suggested that the HRA move relatively quickly before the interest rates go up. Housing Manager Barnes said they are waiting for Springsted to complete their analysis before proceeding further. Chair Henderson suggested calling the Board members if action is needed quickly. Chair Henderson requested that the Plymouth Towne Square financial report be placed in the correct sequence for the Board report. Housing Manager Barnes stated that staff will do so. 5. ADJOURNMENT MOTION by Commissioner Michlitsch, seconded by Commissioner Hewitt, to adjourn the meeting. Meeting adjourned at 8:25 p.m. HRA/Minutes/10/10/02