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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 11-21-2002MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY November 21, 2002 PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, Leon Michlitsch, and Sandy Hewitt ABSENT: Commissioner Tim Bildsoe STAFF PRESENT: Community Development Director Anne Hurlburt, Housing Program Manager Jim Barnes, Support Services Manager Denise Hutt, Office Support Representative Barb Peterson OTHERS PRESENT: None CALL TO ORDER Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order on November 21, 2002 at 5:35 p.m. BACKGROUND Chair Henderson noted that the Strategic Plan had been updated in 2000 rather than 1999. STRATEGIC PLANNING PROCESS 1. Overview of Strategic Planning Process Housing Manager Barnes gave an overview of the process to follow for the Strategic Planning session. Various segments include the Mission and Vision Statements, Needs Assessment, Current HRA Programs, Opportunities and Ideas, Identifying Key Priority Areas and Identifying Stakeholders. He explained how a voting process will be used to identify the key priority areas. Once the priority areas are identified, staff will then bring the ideas back in January with a work plan for 2003. 2. Mission and Vision Statement Housing Manager Barnes read the current Mission Statement and the Board did not suggest any changes. Commissioner Hewitt asked if economic development should be included in the Vision Statement. It was decided that Economic Development is included in various aspects of the Mission Statement even though those words are not spelled out. Housing Manager Barnes read the current Vision Statement and spoke about the different aspects of housing contained within the statement. Discussion was held regarding redevelopment of commercial property, which the HRA has not previously done much work with. Director Hurlburt said commercial redevelopment is handled by the City Council. She said that the HRA will probably see more requests to use the HRA's bonding authority for private activities. She Plymouth Housing and Redevelopment Authority November 21, 2002 Page 2 explained the decision to use the HRA versus the City Council for the bonding process, and said it depends on which is the most convenient or most logical body to use. Director Hurlburt said the HRA could act as the initiator of a project. Director Hurlburt explained that when the Vision Statement was first created, it was intended to be a forecast for five years. Chair Henderson commented that there is not a reference to human services in the Vision Statement. Commissioner Hewitt stated that the Council could possibly transfer that area to the HRA. Discussion was held regarding social services. Chair Henderson suggested adding a statement to the Vision Statement regarding social services. Director Hurlburt said it could read, Where the social services necessary to support housing and jobs in the community are available and coordinated". Commissioner Ludovissie felt the Vision Statement should have a limited range of topics. He would like to focus more on specific areas for 2003. Chair Henderson said point #3 should read, "Where the existing housing stock is well maintained", rather than "has been well maintained." Commissioner Hewitt felt that Plymouth Towne Square should be added to the Vision Statement but Chair Henderson suggested it should be under long-term goals. Discussion continued regarding the long-term goals. Director Hurlburt said that formally adopted goals with respect to housing have previously been distributed. She felt that having specific goals for projects such as Plymouth Towne Square is a good idea. Director Hurlburt stated that there was not anything specific to Plymouth Towne Square included in the Comprehensive Plan. 3. Needs Assessment Housing Manager Barnes stated that housing needs are different for different groups. For example, the needs of homeowners vary from those of renters and the needs that seniors have would also be different. Renters Housing Manager Barnes stated that under the category of renters there are currently 183 individuals on the Section 8 wait list who are at or below 30% of median income. Director Hurlburt stated that the number on the waiting list is down from approximately 700 two years ago. She said we have worked through a long waiting list so that 183 is probably fairly low for us. Director Hurlburt explained how the Section 8 wait list works. Housing Manager Barnes said that according to the recent rent survey there are currently 131 apartment vacancies in Plymouth that are considered affordable. He explained the median incomes and how they are based. Commissioner Ludovissie asked whether we are able to give preference to those on the wait list who live or work in Plymouth. Support Services Manager Hutt replied preference can only be given to those that work in Plymouth. She said we can't give preference for living in Plymouth because of Fair Housing Laws. Housing Manager Barnes said that 6% of the individuals on the wait list are elderly and that 10.7% are disabled. Housing Manager Barnes stated that the median rent in Plymouth is $857.00 and Hennepin County is $654.00. There are 1100 units currently under construction, excluding senior rentals, which are market rate rental. Plymouth Housing and Redevelopment Authority November 21, 2002 Page 3 The consensus is that as higher market rate rental units fill up, it may free up less expensive apartments. This could lead to more affordable units becoming available. First Time Homebuyer Housing Manager Barnes explained the First Time Homebuyer program and said there are 20 applications on hold at this time. Director Hurlburt asked what price range they are looking for. Housing Manager Barnes replied $170,0004180,000 if they are using HRA assistance. The medium value of an existing house in Plymouth is $284,000. He explained what size mortgage various size households would be able to afford. Housing Manager Barnes said that some applicants could apply for First Time Homebuyer Programs in other cities as well as Plymouth. He said a benefit of our program is that we offer the use of other financing programs in addition to our own. Existing Homeowners Housing Manager Barnes reviewed the category of existing homeowners. There are currently 8 rehabilitation applications on hold pending completion of program requirements. Director Hurlburt said we have not currently been promoting housing programs. Housing Manager Barnes said that as a part of the housing forum, the HRA is now conducting an education campaign and has begun some advertising. An information item appeared in the August Plymouth News regarding Plymouth Towne Square and another will run in January focusing on the Rehabilitation Program and First Time Homebuyer Program. Other ways of marketing the program are also being looked at. He stated that as a result of homes being sold the loans are being repaid and that provides program income to use for new projects. Director Hurlburt stated that this is an unusual situation for this program as it has been short of funds in the past. Housing Manager Barnes said we now limit the Rehab program to families at median 60% of household income, but we could serve up to 80%. Commissioner Ludovissie asked if some loans are interest free. Housing Manager Barnes replied that they are and forgiven over time. He said new guidelines are coming out in February, which will contain some changes. Housing Manager Barnes said that the median mortgage payment in Plymouth is $1,492.00 and in Hennepin County is $1,166.00. He noted that 40.5% of the existing dwelling units in Plymouth were constructed prior to 1980. Housing Manager Barnes stated that 15.3% of owner -occupied households in Plymouth have mortgage payments at 30% or more of income. Seniors Housing Manager Barnes said that when senior indicators were looked at 7.6% of the Plymouth population were 65 years of age and over and 28% of those were disabled. He said Plymouth has 204 senior rental units currently under construction, with 136 being assisted living units and 68 independent units. Director Hurlburt mentioned that there is a need for various types of senior housing and especially for low-income seniors. She said one need is housing for parents of residents who live in Plymouth. Discussion was held on various types of housing for seniors. Plymouth Housing and Redevelopment Authority November 21, 2002 Page 4 Business Housing Manager Barnes said the HRA has not focused on business. He said the private sector has done an excellent job of keeping jobs supplied in Plymouth. However, there is currently a need for 228 units of workforce housing in Plymouth according to a study by the Family Housing Fund. Director Hurlburt asked what income level workforce income refers to. Housing Manager Barnes replied it was the 30% - 50% level or $15,000450,000 gross income. He said 729 units of workforce housing will be needed in Plymouth over the next five years. Workers Housing Manager Barnes said 16.7% of workers in Plymouth are employed in educational, health or social services related jobs. The median salary for a teacher is $34,002 which means they can afford $850 per month for housing. An overview was given of different categories of workers and how much they can afford for housing. Accessibility Housing Manager Barnes said that in the category of accessibility, 5.8% of the population between 5 and 20 years are disabled, 8.9% between 21 and 64 are disabled, and 28% over 65 years of age are disabled. Other Indicators of Need Housing Manager Barnes asked the Board if there are any other indicators they would like to include. Director Hurlburt suggested that we need to think of the aging of the business properties such as warehouses that have 14' ceilings and now the state of the art ceiling height is more like 21'. They cannot be used efficiently so the HRA may need to be involved to make them usable. Chair Henderson brought up the aging of homes in Plymouth. Director Hurlburt said we have background information such as the 2000 census and City Assessing data. Director Hurlburt said that homelessness in Plymouth has not been discussed. Discussion continued about what role the HRA should play regarding homelessness. Director Hurlburt said this could be on the social service side of our Strategic Plan. Support Services Manager Hutt explained the Section 8 rules as they apply to homeless persons and what services we can provide to them. 4. Current Programs Housing Manager Barnes explained how the existing programs work. He explained that the categories that are listed on the Strategic Plan were followed for existing programs except that the category of Affordable Housing is more detailed. Plymouth Housing and Redevelopment Authority November 21, 2002 Page 5 Human Services On the human service side, we spend the maximum allowed from CDBG, which is 15%. He spoke about the activities which are funded by the HRA. Chair Henderson asked what amounts we allocate to each activity. Housing Manager Barnes said he didn't have the exact figures and will supply this information in the next packet. Chair Henderson asked if we get a lot more requests for funding than we can accomodate. Housing Manager Barnes replied that we have been able to fill most requests, however, most are from agencies that have received funding in the past. Director Hurlburt said we do not have the amount of flexibility we would have if we were using our own tax levy money or the City general fund money. Economic Development Housing Manager Barnes said we currently have a revolving loan fund under Economic Development, which has never been used. It could be used to assist small businesses with loans. He said we have funds available in the amount of $143,000. Commissioner Ludovissie asked if the guidelines are strict. Housing Manager Barnes replied they are very flexible, however, it has to be used as a revolving loan for a small business. Discussion continued on ways to use these funds. Redevelopment Housing Manager Barnes stated that currently there are no redevelopment programs. We are on hold in that area. Director Hurlburt discussed the recent study conducted by the City for the County Road 73 area. She stated the Council decided not to act on the consultant's or staff's recommendations at this time. The Council is content with reviewing redevelopment projects on a case-by-case basis. Affordable Housing Housing Manager Barnes said affordable housing programs are divided into five different categories: First Time Homebuyer, Preservation of Existing Units, Rental, Development of New Units, and Plymouth Towne Square. First Time Homebuyer The First Time Homebuyer Program serves households 80% of median or below, which accounts for $100,000 annually. There are currently 20 applicants on the wait list. We have provided 91 loans totaling $1,165,000 since 1991. Housing Manager Barnes stated that $20,000 is the maximum for a 2nd mortgage and it is a 0% 30 -year term. Preservation Housing Manager Barnes explained the category of Preservation. He said we are only serving owner occupied homes with our rehab program. The rehab program serves households at 60% of median or below, with expenditures of $100,000 annually. Currently there are 8 applicants on Plymouth Housing and Redevelopment Authority November 21, 2002 Page 6 the wait list and 138 loans have been provided since 1988 totaling $971,000. The maximum loan amount is $15,000 for a 2nd mortgage with a 0% 20 -year term. Rental Housing Manager Barnes stated that the rental program includes the Section 8 program and Tax Increment Housing Assistance Program (TIHAP). Section 8 serves renters at 50% of median or below. There are 183 applicants on the wait list and we currently serve 335 households. The TIHAP program is excess funds from existing TIF districts. Two of the districts out of seven are now contributing to this fund. The first district (7-2) we have collected funds from is committed toward the building of Stone Creek Village. The remaining funds are from district (7-6) and will contribute $75,000 per year over the next 6 years. Development Housing Manager Barnes said that there is not a specific program in place for development of new units. Developments receive assistance as they come up and as funds permit. Typical sources include CDBG, TIF, and the Affordable Housing Reserves. Housing Manager Barnes explained that the HRA General Fund budget has a line item of $90,000 for housing development that is available and is going into reserves for 2003. Director Hurlburt said the line item was intended to provide the local match for additional funding. She indicated we could also use the funds to assist a specific project. Plymouth Towne Square Housing Manager Barnes talked about Plymouth Towne Square, which is our largest general fund expenditure. He said the current wait list contains 96 applicants. There are 119 current residents. Recently the policy was changed to hold tenant housing expenses are held to 35% of their income. Plymouth Towne Square has an annual subsidy of $270,000. Director Hurlburt said that staff are looking at refinancing PTS, and are now working with our financial advisors and Bond Counsel. Housing Manager Barnes explained the, "Needs Met By Existing Program", matrix. Director Hurlburt said an "X" should be added under Section 8 for workers. Chair Henderson said a column should be added for developing affordable housing. Housing Manager Barnes questioned whether the need would be for developers, renter, or homebuyer. Discussion continued regarding adding affordable housing to the matrix. 5. Opportunities and Ideas Human Services Housing Manager Barnes stated that no new ideas or opportunities were added to the Human Services category. The list provided is from the existing Strategic Plan. Plymouth Housing and Redevelopment Authority November 21, 2002 Page 7 Economic Development Housing Manager Barnes spoke about the Economic Development category. He said the HRA has to decide if they want to take a passive role where opportunities come from the private sector, or an active role where the HRA would seek out opportunities to work on. Housing Manager Barnes said so far we have left economic development up to the private sector but we could develop a marketing brochure or set up a specific economic development function within the HRA. Housing Manager Barnes said there are a lot of buildings for sale or vacant right now so we may want to monitor that situation. Chair Henderson commented that HRA Commissioners visited companies in the past and that these visits provided good will in the City. Redevelopment Housing Manager Barnes stated that under the Redevelopment topic new ideas would include identifying key areas to target or the HRA could offer commercial rehab loans. He said that redevelopment deals with commercial as well as residential. Chair Henderson asked for clarification on mixed use development as referred to in the current Strategic Plan. Housing Manager Barnes said mixed use is not in the current plan and could be a line of its own. Discussion was held on the need for mixed use development and how the HRA could play a part in it. Director Hurlburt discussed the recent study conducted by the City for the County Road 73 area. She stated the Council decided not to act on the consultants or staffs recommendations at this time. The Council is content with reviewing redevelopment projects on a case-by-case basis. Affordable Housing First Time Homebuyer Housing Manager Barnes said that under Affordable Housing the topic of First Time Homebuyer includes ideas such as increasing funding for existing programs, design 1 st mortgage program using revenue bonds, administer MHFA's — MMP, MCPP, and CASA programs, and administer pre and post homebuyer training programs. A suggestion was made to revise guidelines including increasing second mortgage amounts and changing terms of the mortgage. Preservation Housing Manager Barnes said that under the Preservation topic, which refers to existing units, funding could be increased for the existing program, we could acquire/rehab/sell single family units, design new programs for higher incomes, or administer MHFA's — Fix -Up fund. He explained how the Fix -Up Fund would work. Director Hurlburt asked what the interest rate would be for that type of loan. Housing Manager Barnes replied it is between 6% and 8%. Another idea would be to acquire or rehab an existing multi -family rental complex. Rental Commissioner Ludovissie stated that he did not feel we could do much more under rental. Housing Manager Barnes said this rental is difficult, especially if we don't have an ownership Plymouth Housing and Redevelopment Authority November 21, 2002 Page 8 stake in the building. The only other option would be to provide an annual operating subsidy to a private owner. Chair Henderson suggested we could buy an apartment complex but Director Hurlburt replied that would be considered public housing. Development (New Units) Housing Manager Barnes explained that the development of new units could include acting as developer for new units, including home ownership or rental housing, for seniors or for families. The HRA could assist private developers with gap financing in exchange for affordable units or offer reduced fees or subsidize permits. Other ideas would be to offer flexibility in regulations such as lot size, setbacks, and parking. Chair Henderson asked if we would give them the money to use. Housing Manager Barnes explained that the HRA would give money to the City, which would be put into the budget of the department furnishing the service. Director Hurlburt stated that the sewer and water fund is not set up to subsidize housing so those fees cannot be waived and put the cost on everybody else in the City. Mixed use development or the creation or funding of a Land Trust would also be suggestions to explore. 6. Identify Priorities Housing Manager Barnes explained how the voting process will work. He explained that each Commissioner will receive 25 dots to use for voting. Each category must receive at least one vote, however, more than one vote can be used for an item up to a maximum of five. Not all of the dots need to be used. Director Hurlburt said it is a method used to quickly sort out priorities and see where the priorities fall. It will help to set a pattern and then can be narrowed down at a later time. Commissioners then used their dots to indicate their priorities on the flip charts containing the list of opportunities and ideas. 7. Identify Stakeholders The decision was made to review this segment at the next planning session. 8. Conclusion It was decided that staff would take the information gathered this evening and analyze the opportunities and ideas suggested by the commissioners and report back in December so that discussion could be held to fine tune the areas staff should further research and develop for the January meeting, when the Board will finalize the focus areas for 2003. Staff was also directed to revise the vision statement and present the revisions at the December meeting. 5. ADJOURNMENT MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie, to adjourn the meeting. Meeting adjourned at 9:30 p.m. HRA/Minutes/11/21/02 Plymouth Housing and Redevelopment Authority November 21, 2002 Page 9