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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-25-2010APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY FEBRUARY 25, 2010 PRESENT: Chairman Jeff Kulaszewicz, Commissioners Paul Caryotakis, Steve Ludovissie, David Miller and Bob Stein ABSENT: None STAFF PRESENT: Housing Program Manager Jim Barnes, HRA Specialist Kip Berglund and Office Support Specialist Laurie Lokken OTHERS PRESENT: None 1. CALL TO ORDER Chairman Kulaszewicz called the Plymouth Housing and Redevelopment Authority meeting to order at 7:02 P.M. Housing Program Manager Barnes announced that item 4.1). had been added to the agenda. Housing Program Manager Barnes introduced HRA Specialist Kip Berglund. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from January 28, 2010. B. Plymouth Towne Square. Accept January 2010 housing report. C. Vicksburg Crossing. Accept January 2010 housing report. MOTION by Commissioner Ludovissie, seconded by Commissioner Caryotakis, to approve the consent agenda. Vote. 5 Ayes. MOTION approved unanimously. 3. PUBLIC HEARING A. Community Development Block Grant (CDBG). Consider 2010 Action Plan. HRA Specialist Berglund gave an overview of the staff report. Chairman Kulaszewicz asked about the difference in the 15 percent allocated to public services 53,965 versus the $58,230). HRA Specialist Kip Berglund said that $58,230 included the 2010 estimated award and the previous year's program income. Housing Program Manager Barnes added that $58,230 was the maximum amount we could commit to public services. He said that the public service agencies request an amount of funding based on their needs and what we Approved Plymouth Housing and Redevelopment Authority February 25, 2010 Page 2 believe we will have available, as well as, their historical funding amounts through the CDBG program. He said in a typical year requests are more than we have available to fund. He said that our First Time Homebuyer Program generated a lot more program income from repayment of past loans that had been issued than we had anticipated. He said we typically expect to receive $20,000 or $25,000 in repayments from the First Time Homebuyer and Rehabilitation programs. Chairman Kulaszewicz said there is a lot of federal first time homebuyer money available now and he asked if it would be possible to spend less of our First Time Homebuyer Program money and maybe spend some of that money on some of our other programs. Housing Program Manager Barnes said the City of Plymouth is not eligible to receive the money that is from the federal government in the form of the stimulus programs. He said that the state gets funding but they allocate it to their own special programs. He said we budgeted $125,000 for five loans in the First Time Homebuyer Program and if we reduced that, we would probably end up turning people away. Chairman Kulaszewicz said that demographics probably limit the number of people who would qualify for our First Time Homebuyer Program. Housing Program Manager Barnes said that when budgeting for the Rehabilitation and First Time Homebuyer program funds, we go back through our history and look at what we've done with these programs and try to keep the funding at levels that we believe will be sufficient. Chairman Kulaszewicz opened the public hearing. Chairman Kulaszewicz introduced Lisa Bigelow, representing People Responding In Social Ministry (PRISM). Ms. Bigelow gave an overview of her organization and thanked the Board for their support. Commissioner Miller asked if they had considered providing their services west of 494 to include the City's two senior housing buildings. Ms. Bigelow said that they have been respecting Interfaith Outreach's territory and that they have had discussions with them about working with them and expanding their areas of operation. Chairman Kulaszewicz introduced Nick Cichowicz, representing Community Action Partnership of Suburban Hennepin (CAPSH). Mr. Cichowicz gave an overview of his organization and thanked the Board for their support. Chairman Kulaszewicz introduced Kim O'Grady, representing YMCA Point Northwest Program. Ms. O'Grady gave an overview of their organization. Larry Nelson from Point Northwest added that the City of Plymouth had provided support to their program the past 10 years and thanked the Board for their commitment to the citizens and the young people in the community. Approved Plymouth Housing and Redevelopment Authority February 25, 2010 Page 3 Chairman Kulaszewicz asked where they were located. Ms. O'Grady said that their office is located in the Northeast branch of YMCA located on 24th and Central and that their physical locations in Plymouth are street -based outreach. Chairman Kulaszewicz introduced Lisa Stordahl, representing Tree House. Ms. Stordahl thanked the Board for their support and gave an overview of her organization. Commissioner Stein asked if they have seen increased requests for their services because of the economy. Ms. Stordahl said that there is a definite rise and that at -risk behavior and economy go hand in hand. Chairman Kulaszewicz asked where they are located in Plymouth. Ms. Stordahl said that they are becoming a permanent ministry within Peace Lutheran Church. Chairman Kulaszewicz introduced Tim Nelson, representing Hammer Residences. Mr. Nelson thanked the Board for their past 15 years of support and gave an overview of his organization. Chairman Kulaszewicz asked what contributions are given to Hammer Residences. Housing Program Manager Barnes said it ranges from $15,000 to $45,000. Chairman Kulaszewicz asked if any of those contributions count towards our Metropolitan Council affordable housing goal. Housing Program Manager Barnes said that it hadn't in the past because they typically acquire existing units in the marketplace and renovate them so that they are more accessible to their clientele. He said that Metropolitan Council is looking for 1,000 plus units for the next 10 years that are all brand new construction. He added that homes like Hammer is one of the areas of criteria on our annual housing survey that goes toward the housing score that gets evaluated every year. Chairman Kulaszewicz introduced Deb Taylor, representing Senior Community Services (SCS). Ms. Taylor thanked the Board for the opportunity to come in and she gave an overview of her organization. Chairman Kulaszewicz introduced Beth Kodluboy, representing HOME Line. Ms. Kodluboy gave an overview of her organization. Chairman Kulaszewicz closed the public hearing. Commissioner Caryotakis thanked the organizations for their presentations. He said that it is good to hear about all of the things that are happening in the community and the services that are available through these programs. Commissioner Ludovissie said that some of the organizations had been in the community for 10 to 12 years and had good track records. He added that he appreciated all that is being done in the community. Approved Plymouth Housing and Redevelopment Authority February 25, 2010 Page 4 Chairman Kulaszewicz said that the Board asks that they do the best that they can to provide for the citizens of Plymouth and to report back to the Board. Chairman Kulaszewicz said that the 15 percent maximum had not been reached because these organizations had not collectively asked for that much. Housing Program Manager Barnes said that was correct. Chairman Kulaszewicz asked if it would be possible to give them more than what they asked for and still be within our limits. Housing Program Manager Barnes said that additional money could be set aside but it would require the Board to reduce money in other programs or in other line items for the 2010 funding. Commissioner Stein asked if the difference in the amount allocated for public services for this year from last year was just sitting there in case somebody else came in. Housing Program Manager Barnes said that money had been allocated into one of the other funds. Commissioner Stein asked if all the funds were being utilized. Housing Program Manager Barnes said they were and that none were sitting idle. Commissioner Stein said that it is incredible what these organizations do. He said that there are more and more needs and demands each year and he commends all of them for their services. He said that he wished there was more money to give to all. MOTION by Commissioner Stein, seconded by Chairman Kulaszewicz recommending approval of the application and allocation of Fiscal Year 2010 Community Development Block Grant Funds. Vote. 5 Ayes. MOTION approved unanimously. 4. NEW BUSINESS A. Vicksburg Crossing. January 2010 Marketing Report. Housing Program Manager Barnes said that there had been one deposit down so there were now seven vacant units. He said that the smoke-free notices had been mailed to all the residents at Vicksburg Crossing and were being mailed to Plymouth Towne Square residents this week as well. Commissioner Caryotakis asked if there had been any initial feedback. Housing Program Manager Barnes said that he had received one call. Commissioner Ludovissie said that smokers would move and that would be an unfortunate outcome. Chairman Kulaszewicz said that it had been the Board's decision that there would be fewer people that would move out because of the policy than there would be of people not moving in because of not having a policy. Approved Plymouth Housing and Redevelopment Authority February 25, 2010 Page 5 Housing Program Manager Barnes confirmed for Commissioner Ludovissie that we are looking at breaking 95 percent, so we are getting there. B. First Time Homebuyer Program. Discuss Foreclosure Notice On HRA Assisted Property. Housing Program Manager Barnes said that back in the late 1990s, both the City and the HRA helped develop two handicap accessible units that would be for sale to buyers that were either handicapped or had a family member who was handicapped. He said that the City worked with private developers and with a couple of nonprofit organizations (both of which are no longer in business). He said this was quite unique for a First Time Homebuyer Loan in that there is almost 60,000 and a 90 year term instead of $25,000 for a 30 year term. Housing Program Manager Barnes said that a notice of foreclosure had been received. He said the homebuyer had been before the Board a few times requesting subordinations to refinance her mortgage. Housing Program Manager Barnes asked if the Board would want to act on this or have staff look into it further. He said he did not know if the City would lose their investment. He said the City's investment was about $33,000 or $34,000 through the CDBG affordable housing funds and the remaining amount was from the State of Minnesota Grant and the two nonprofit organizations. He said the loan outstanding is about $170,000 on the first mortgage. Commissioner Ludovissie asked if we knew the current value of the home. Housing Program Manager Barnes said it is about $240,000. He said the sheriff's sale is scheduled for the end of March. Commissioner Ludovissie asked if any City staff had gotten into the home for inspections. Housing Program Manager Barnes said he was not aware of anyone going there. Commissioner Stein asked who else has a loan on the property. Housing Program Manager Barnes said the Credit Union has the first mortgage. Commissioner Miller asked if there were any second mortgages. Housing Program Manager Barnes said the City is in second position and there might be somebody in third position. Chairman Kulaszewicz asked how much the first mortgage was. Housing Program Manager Barnes said it was about $170,000 to $171,000. Commissioner Caryotakis asked if the current owner is just unable to keep up. Housing Program Manager Barnes said he is not sure. He said the City had worked on and off with the homeowner through the years and she has had credit counseling. Commissioner Stein said that seemed to be a pretty expensive home. Housing Program Manager Barnes said that it benefited due to its location and appreciation through the last 10 years. Approved Plymouth Housing and Redevelopment Authority February 25, 2010 Page 6 Housing Program Manager Barnes asked if the Board would be interested in acquiring the property and becoming the landlord or if the Board would want staff to see how far in arrears the mortgage is and then would be interested in rewriting the mortgage so she could continue to live there. Commissioner Ludovissie said that since we have interest in the home, a little preliminary investigation should be done. He said one solution may be to find an alternative housing location for her and do something with the property. Housing Program Manager Barnes said he did not know what that alternative housing solution would be. Commissioner Stein said alternatives should be explored. He said if she couldn't stay in the house, maybe we could find something she could afford but he would like to see if we could maybe acquire it and then sell it. He said not to let it slip away and maybe talk to the Credit Union. Commissioner Caryotakis said he wouldn't want to fund the entire mortgage but if the first mortgage could be reduced to make it more affordable for her. Housing Program Manager Barnes said the problem is that she would have to qualify for a new mortgage and, with her credit, she probably wouldn't be able to qualify. Commissioner Miller asked if the homeowner talked to the Credit Union about restructuring the loan. Housing Program Manager Barnes said she had gone through foreclosure in 2006 and got help through CAPSH. Commissioner Miller suggested that staff look at the property to see what shape the house is in before the Board looks at putting more money into it. Chairman Kulaszewicz added to get an appraisal of the property. He said that he wouldn't be against purchasing the property and working with Hammer Residences or somebody to keep that handicapped accessible. He said he would hate to lose our $60,000 just for lack of an action. Commissioner Ludovissie said that when people have financial problems over the years, they let the property go. He said he was concerned about the exterior and the interior and how much would have to be invested in the property. He said it could get expensive to go in and redo. Chairman Kulaszewicz said the Board directs staff to initiate conversation with the mortgage holders, get more information on the status and value of the property and then get back to the Board prior to the sheriff's sale. C. Election of Chair, Vice -Chair and Secretary for 2010. Chairman Kulaszewicz and Commissioners Caryotakis and Miller volunteered to continue their current positions as Chairman, Vice Chairman and Secretary respectively. Approved Plymouth Housing and Redevelopment Authority February 25, 2010 Page 7 MOTION by Commissioner Stein, seconded by Commissioner Ludovissie, to approve Jeff Kulaszewicz as Chairman, Paul Caryotakis as Vice Chairman and David Miller as Secretary of the Plymouth Housing and Redevelopment Authority for 2010. Vote. 5 Ayes. MOTION approved unanimously. D. Discuss March Meeting Housing Program Manager Barnes stated that there are staff conflicts for the March 25, 2010 HRA meeting. The Board agreed to change the March HRA meeting from the fourth Thursday, March 25, 2010, to the third Thursday, March 18, 2010, at 7:00 p.m. 5. ADJOURNMENT MOTION by Chairman Kulaszewicz, seconded by Commissioner Miller, to adjourn the meeting at 8:15 p.m. Vote. 5 Ayes. MOTION approved unanimously.