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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-24-2011APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY FEBRUARY 24, 2011 PRESENT: Vice Chair Paul Caryotakis, Commissioners David Miller, Jim Willis and Bob Stein ABSENT: Chairman Jeff Kulaszewicz STAFF PRESENT: Housing Program Manager Jim Barnes, HRA Specialist Kip Berglund and Office Support Representative Janice Bergstrom OTHERS PRESENT: Grace Management Representative Jody Boedigheimer 1. CALL TO ORDER Vice Chair Caryotakis called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 P.M. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from January 27, 2011 B. Plymouth Towne Square. Accept January, 2011 housing report. C. Vicksburg Crossing. Accept January, 2011 housing report. MOTION by Commissioner Willis, seconded by Commissioner Miller, to approve the consent agenda. Vote. 4 Ayes. MOTION approved unanimously. 3. PUBLIC HEARING A. Community Development Block Grant Housing Manager Barnes said the House has passed the continuing Resolution HR -1, and the Senate is negotiating the proposed cuts of $60 billion in Federal programs. He said this would be a 60% cut in the CDBG program. Housing Manager Barnes said we will monitor that and if there is a cut below the $259,392, which is the 2008 allocation amount, we will adjust accordingly to meet the statutory requirements of the Federal program for social services. Housing Manager Barnes introduced HRA Specialist Berglund who gave an overview of the staff report recommending the 2011 CDBG program year allocation. Vice Chair Caryotakis opened the public hearing. Approved Plymouth Housing and Redevelopment Authority February 24, 2011 Page 2 Vice Chair Caryotakis introduced Lisa Stordahl, Director of Development for TreeHouse. Ms. Stordahl said TreeHouse served 186 teens and anticipate serving 250 this year. She said they have been located for two years in Peace Lutheran Church in Plymouth. Ms. Stordahl said services offered to troubled teens include support groups and one on one mentoring. She said 74% of these kids are on free or reduced lunch and 64% are kids in single parent homes. Ms. Stordahl said poverty and adverse behavior go hand in hand. She said they are seeing kids from neighborhoods not typically seen in the past because it takes one year to foreclose on a home. For the first time in their lives these families are at a food shelf, and that takes a toll on kids. Ms. Stordahl said they are now paying rent at Peace Lutheran so their expenses have increased. Commissioner Willis asked if there is a breakdown by school district of the 186 teens served and asked if they are in school. Ms. Stordahl said they are in school and a major goal is to have them graduate. This is tracked by the kids on reduced school lunch (74%). She said in looking at that scale, TreeHouse has a 24% higher percentage graduation rate. She said these are all Plymouth kids. Housing Manager Barnes said there are four school districts in Plymouth, and asked if some go to the New Hope TreeHouse. Ms. Stordahl said the few that go to the New Hope TreeHouse are not included in the numbers provided. Commissioner Willis said he is curious and assumes there would be more kids from the Wayzata School District because of their location. Ms. Stordahl said they do have an issue in proving income levels because they are dealing with kids and she has worked with HUD to prove income in a different way. She said by taking the address of the kids served and showing that they come from a Section 8 or low income complex such as Willow Woods, helps prove that 50% of the kids served meet HUD requirements. Housing Manager Barnes asked to track a breakdown of teens by school district and to supply this information to HRA Specialist Berglund next week. Vice Chair Caryotakis introduced Tim Morin, Program Coordinator for the Home Program for Senior Community Services (SCS). Mr. Morin reviewed the services provided for the City's aging population, which include Senior Coordinator Sara Mittelstaedt who oversees transportation, recreation, health and wellness services. Susan Makela provided outreach services to 130 seniors in 2010 and is staffed by licensed social workers. He said there is no cost for any outreach or social services. Mr. Morin said there is free counseling for Medicare and health insurance, and caregiver connection support. The HOME program provides services to 15 cities which include indoor/outdoor painting, snow removal, and spring and fall yard clean up. Mr. Morin said cost is based on a pay sliding fee scale and is subsidized mainly by CDBG Approved Plymouth Housing and Redevelopment Authority February 24, 2011 Page 3 funding. Mr. Morin concluded that the need has been increasing, and the upcoming baby boomers will cause the numbers to rise. Vice Chair Caryotakis asked how seniors in need are identified. Mr. Morin said 90% of the time there is a referral from other agencies and by word of mouth. He said HOME has existed for 31 years, and said a comprehensive marketing plan will be put in place this year. Commissioner Willis asked if referrals for minor home improvements come from the City of Plymouth, as we have the rehab program available. Mr. Morin said their program is for routine maintenance. He said if there is major renovation that needs a permit or licensed contractor to perform the work, that situation would be referred back to the city or social worker for proper documentation for that project. Vice Chair Caryotakis introduced Tim Nelson representing Hammer Residences. Mr. Nelson gave an overview of Hammer Residence services for people with intellectual and development disabilities. He said 80 people are served in Plymouth and there are 15 homes in Plymouth, two apartment programs in Plymouth and 25 homes in other cities. He said 220 people are served; 80 reside in Plymouth. Mr. Nelson said 440 people are served through non-residential services. Mr. Nelson said some of the funds being requested would be used for window replacement in two of their homes and siding for another home. Commissioner Willis asked if the 40 properties are tax exempt. Mr. Nelson said they are tax exempt, except for the apartment programs. Commissioner Willis asked if Hammer Residences applies for CDBG funds in other communities. Mr. Nelson said they have not. Commissioner Willis asked how the work is paid for in those communities. Mr. Nelson said they are a private non-profit and do fund raising. Vice Chair Caryotakis introduced Tim Madsen, POINT Northwest YMCA, who gave an overview of the youth intervention program which serves about 1,200 youth in the western and northern suburbs, and urban areas of Minneapolis. Mr. Madsen introduced Kim O'Grady, who supervises the services for Plymouth. Ms. O'Grady said the program works with young folks up to age 21 who experience homelessness or risk of homelessness, and provide prevention and intervention 24 hours a day. She said they provide street and community-based outreach, and cited Parkers Lake and Co. Rd. 6 as a primary area in Plymouth. Ms. O'Grady said there is a Approved Plymouth Housing and Redevelopment Authority February 24, 2011 Page 4 crisis line, transitional living program, and provide short, medium and long-term case management depending which portion of the program a person accesses. Commissioner Stein asked where the kids come from who are at the skate park. Ms. O'Grady said the kids at that skate park are primarily kids from the Parkers Lake complex and assume other kids live relatively close. Mr. Madsen said there is an increase in the rise of suburban youth homeless population due to the foreclosure crisis. He said youth 16 plus are considered to be able to make it on their own when a family loses housing. Commissioner Stein asked if their services are based in the New Hope YMCA. Ms. O'Grady said they now office in Northeast Minneapolis. Ms. O'Grady said they routinely visit high schools, and are aware of young groups congregating in locations such as a park or bus stop area. Ms. O'Grady mentioned they have a five-year partnership with PRISM, who offers a no hassle food shelf and can be accessed by any youth in any service area. Commissioner Willis asked if this program predominantly services the eastern side of Plymouth. He noted their services are offered for a similar population as TreeHouse. Ms. O'Grady said it is a similar population but the difference is TreeHouse works with teens primarily in school. She said they see the gambit of 16-17 year olds not in school and not planning to return, and the 18-20 year olds still trying to accomplish school. Commissioner Willis asked if they service primarily the eastern side of Plymouth. Ms. O'Grady stated they service all of Plymouth's school districts. Vice Chair Caryotakis introduced Mike Vraa, managing attorney for Home Line, a tenant hotline for renters. Mr. Vraa said they average 200 calls per year from Plymouth residents. He said they speak 4 — 5 times a year to soon to be renters at the high schools. Mr. Vraa said they have expanded to other municipalities, and other funders see this is work that merits consideration and helps leverage additional funds for work that is worthwhile. Mr. Vraa said he warned people 3-4 years ago about the flood of foreclosures, which has materialized. He said he is now warning people about the upcoming flood of bedbugs. He said the charts indicate Plymouth has not been besieged yet, but they are coming. Mr. Vraa said one day in January he answered the hotline, which gets 50-60 calls a day, and he said he took 8 straight calls on bedbugs. Mr. Vraa said an example would be a tenant asking for legal advice when the landlord treated for bedbugs and then bills the tenant $2,000 for the treatment. Vice Chair Caryotakis introduced Scott Zemke, CAPSH. Mr. Zemke said they work with the homeless, first time homebuyers, foreclosure, rehab, and seniors looking at reverse mortgages. Approved Plymouth Housing and Redevelopment Authority February 24, 2011 Page 5 He said they serve about 100 people per year. He said in the Plymouth area they served 900 people last year with energy assistance to pay utilities and repair or replace furnaces. Vice Chair Caryotakis asked if the volume on foreclosures has changed in the past year. Mr. Zemke said there was an insignificant decrease in Plymouth in 2009, but foresees the foreclosure issue getting worse in 2011. Vice Chair Caryotakis introduced Courtney Whited, Director of PRISM Express. Ms. Whited said they offer a food shelf, auto program, and a dial -a -ride program which serves the area east of I-494. They now provide door to door service. Ms. Whited said when the Met Council restructured itself; they had to diversify where they find funding sources. She said they may not meet their goals, and the rising gas prices are taking a toll as their buses use diesel. Commissioner Stein asked if there is a charge for the rides. Ms. Whited said a $3.00 one-way or $6.00 round-trip amount is suggested. She said the true cost is $10.29. Vice Chair Caryotakis thanked everyone and said their comments add color to our understanding of each program. Vice Chair Caryotakis closed the public hearing. Commissioner Stein asked if there is a reason for the $900 balance and if it is being saved for something. HRA Specialist Berglund said we tried to get as close to the 15% amount as possible. He said by cutting requested amounts by 30%, a balance of $900 remained. HRA Specialist Berglund said this money could be spent on social services. Commissioner Stein asked if we could allocate the $900 to the Spare Key program. Housing Manager Barnes said Spare Key indicated in their application that an average contribution toward one mortgage is $1,200. He said Spare Key would meet the requirements for a new service in the city. Housing Manager Barnes said we could take $300 from the HRA reserve and combine with the $900 to fund them for one unit. Commissioner Stein asked about unspent CDBG funds. Housing Manager Barnes said unspent funds roll to the next program year. Housing Manager Barnes said reports go to Congress each year to show that we spend our money in a timely fashion to ensure continued funding in the program. The spend down ratio is 1.5 times our current allocation. Housing Manager Barnes said if the money is not spent down, a warning Approved Plymouth Housing and Redevelopment Authority February 24, 2011 Page 6 letter is sent the first year, the second year there would be a funding cut, and in the third year there could be a reorganization resulting in giving up our entitlement. MOTION by Commissioner Stein, seconded by Commissioner Miller, to approve the recommendation for the 2011 CDBG program year allocation with the $900 balance and $300 in HRA reserves to be given to the Spare Key request. Commissioner Willis asked where the shortfall would come out of if the Federal Government does not approve the $260,000. Housing Manager Barnes said we will look at all categories, especially the social services because of the statutory 15%. He said the affordable housing, FTHB, and rehab programs would be looked at. Commissioner Willis discussed the $58,000 allocated to Hammer Residences. He said he has no ax to grind against Hammer Residences, and added there are two homes in his neighborhood. Commissioner Willis said they are tax exempt and he questioned if we are doing as much as we can to provide services to tax paying residents who are on hard times, such as seniors who need new windows and siding. He said Housing Manager Barnes pointed out we have a program for loan forgiveness and rehab. Commissioner Willis said we need to be cautious that someone doesn't take the money, put it in the house and then move to Florida or Arizona. Commissioner Willis pointed out that only Plymouth uses CDBG funds to help Hammer with rehabilitating properties and other communities do not. Commissioner Willis said that next year he will be looking for more information to see if there is a better way to help in-place residents in Plymouth. Commissioner Stein concurred and said other cities do not support their units with CDBG funds. They do general fund raising which goes to other cities to do rehab. Commissioner Miller asked if the money we give goes to residents in Plymouth. Commissioner Willis said he is not questioning that the funding goes to Wayzata or other properties. Housing Manager Barnes said Hammer has been funded approximately 15 years in Plymouth. He said when cities create CDBG programs, there are so many options. Housing Manager Barnes said Minnetonka is the only entitlement community, and the rest are part of Hennepin County's consortium who divides up the money which may explain why Hammer may not have been going to other cities as they don't have the same program setup as Plymouth. Commissioner Stein said we should look into that, and added that the amount of money given to Hammer is substantially more than any other program. Housing Manager Barnes said Community Development Director Juetten and he have discussed the spend down issue. He said Approved Plymouth Housing and Redevelopment Authority February 24, 2011 Page 7 there is a time uncertainty issue with rehab projects whereas with Hammer operates differently and will get a contractor in and complete projects in a timely fashion. Vice Chair Caryotakis said this would not be taking money from the social programs but is providing similar benefits. He said if there was demand from our residents for rehab loans he would be concerned, but we have sufficient funds. Housing Manager Barnes said he believes we have estimated the correct allocation amounts. Commissioner Willis said we would have to be more lenient in the way the rehab program is structured in regard to loan forgiveness of 20 years. He said this provides a dis-incentive for someone to fix it up, sell it and then move away. Commissioner Willis said it is advisable to get the house updated before it gets to be a problem. Housing Manager Barnes said some of the leading age clientele become nervous about taking on anything that puts a lien on their home. He said 20 years is not the magic number; ten years or half the life of the improvement project could be used. Commissioner Stein said the council has discussed point of sale inspection to make sure a house is brought up to code. He asked if this is necessary or advisable for our older housing stock. Housing Manager Barnes said they may serve a purpose; however, these inspections focus on certain areas and may miss other areas. He said in the long run it starts to bring housing up to code and it is a revenue generating requirement. Vice Chair Caryotakis said this is a tough requirement in this environment where sellers are not getting a gain off the sale. Commissioner Willis said this makes some public sense as a means by which housing stock can continually be reviewed every time a house turns hands. Commissioner Willis said he thinks it is good public policy but there is "big brother" telling you what to do. The cost could be structured such that it is not a loss, but not try to make money on it. Commissioner Willis said even if the city subsidized the cost of inspections, the value of the tax base would be maintained more stable over time. Commissioner Willis said if $10,000 would be spent on windows, it would not appreciate the value of the home, whereas at the point of sale it would be reflected in a higher sale price. Housing Manager Barnes said in terms of using CDBG funds for repairs or inspection costs, there is a smaller market to work with in Plymouth because we are tied to 80% of median income or below. Housing Manager Barnes referenced advertising for the rehab program and said they could program more dollars into the marketing of the rehab program. There was discussion of working on a house with Habitat for Humanity and the HRA might be interested in partnering on this. Housing Manager Barnes said this would be a 2012 project for Approved Plymouth Housing and Redevelopment Authority February 24, 2011 Page 8 them. Commissioner Stein said if the HRA is looking to buy houses, there is a one -room house being auctioned on Kilmer Lane and would send Housing Manager Barnes information. Vote on amended Motion. 4 Ayes. MOTION approved unanimously. 4. ADJOURNMENT A. Vicksburg Crossing Marketing Report Grace Management Representative Boedigheimer said December is typically the slowest month, but traffic is increasing. She said there are three affordable units available. Commissioner Stein said he did not understand why these three units are available. Grace Management Representative Boedigheimer explained that potential renters go to Plymouth Towne Square, and said they have lost three from our list. Commissioner Willis asked if the wait lists are for each building or if it is an integrated list. Grace Management Representative Boedigheimer said the wait lists are separate because there is a fixed rent at Vicksburg Crossing, and it is higher than Plymouth Towne Square. Grace Management Representative Boedigheimer said there were 2 two-bedroom units available at Plymouth Towne Square and they went through the 20 names on the wait list. She said there are 28 names on the list for Vicksburg Crossing. She said for both buildings there are preferences such as age, income, if you lived in Plymouth or have an immediate family member in Plymouth. Grace Management Representative Bodigheimer added that a person can be on the list without preferences. Commissioner Willis asked the process if a person declines an available unit. Grace Management Representative Bodigheimer said you can decline three times, and then go to the bottom of the list. Commissioner Willis said that is the mistake, one strike and you are out. Housing Manager Barnes said because there are not as many names on the wait list, a person is put at the bottom of the list if they decline three times. Commissioner Stein and Commissioner Willis suggested removing the person from the list assuming there are others who want the unit. If the list reopens, they can reapply. Grace Management Representative Bodigheimer said the list is always open so they can reapply. She said we used to have 120 names on the list. Approved Plymouth Housing and Redevelopment Authority February 24, 2011 Page 9 Commissioner Willis said if people are choosey and picky and can still stay on the list, someone further down the list never gets the chance to take the unit. Grace Management Representative Boedigheimer said it is rare that to start back at the top, and added that they turn 20 units per year. Vice Chair Caryotakis asked if a tenant can be placed on a preference list for a better apartment once they are in a unit. Grace Management Representative Boedigheimer answered affirmatively and said they charge 350 for an internal move at both Vicksburg Crossing and Plymouth Towne Square. Housing Manager Barnes said residents are more apt to say no because they can stay longer as there are more options available and there are more services. Commissioner Stein recommended advertising in the Sun Sailor. Housing Manager Barnes said we do advertise and there will be ads in the next Plymouth Newsletter. Grace Management Representative Boedigheimer said there will be an open house in early April, which has been successful in bringing in traffic in the past. B. Election of Officers. Chair, Vice -Chair, Secretary. The election of officers was tabled to the March HRA meeting when Chairman Jeff Kulaszewicz can be present. 5. ADJOURNMENT MOTION by Vice Chair Caryotakis to adjourn the meeting at 8:36 p.m.