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
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November 21, 2002
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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.
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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.
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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.
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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
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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.
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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
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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.
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