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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 04-28-2011APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY April 28, 2011 PRESENT: Chairman Jeff Kulaszewicz, Commissioners Paul Caryotakis, Bob Stein and David Miller ABSENT: Commissioner Jim Willis STAFF PRESENT: Housing Program Manager Jim Barnes, Support Services Manager Denise Whalen and Office Support Representative Janice Bergstrom 1. CALL TO ORDER Chairman Kulaszewicz called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 P.M. 2. CONSENT AGENDA Housing Manager Barnes distributed a shortened version of the financials for Plymouth Towne Square and Vicksburg Crossing for the first three months of the year. A. Approve HRA Meeting Minutes from March 24, 2011. B. Plymouth Towne Square. Accept March 2011 housing report. C. Vicksburg Crossing. Accept March 2011 housing report. MOTION by Commissioner Caryotakis, seconded by Commissioner Miller, to approve the consent agenda. Vote. 4 Ayes. MOTION approved unanimously. 3. NEW BUSINESS A. Vicksburg Crossing March 2011 Marketing Report. Housing Manager Barnes reported that all affordable units at Vicksburg Crossing are occupied. He said traffic is picking up and there were 34 calls resulting in 8 appointments. Housing Manager Barnes said the open house on April 12 was a huge success. He added continuing the open house into the evening proves to be more productive than on a weekend. Housing Manager Barnes said it is unknown if people on the sidelines are still trying to sell their homes and are waiting for equity to be realized. Housing Manager Barnes said the maintenance items noted for Plymouth Towne Square are the result of an aging building. Chairman Kulaszewicz asked if advertising continues with the Lakeshore Weekly News and Sun Sailor. Approved Plymouth Housing and Redevelopment Authority April 28, 2011 Page 2 Housing Manager Barnes answered affirmatively. He said Manager Sarah Paquette communicates with senior centers and looks for opportunities to sponsor an event at senior centers in neighboring communities. Housing Manager Barnes said for $250, or half the cost of advertising, we would get our name as the sponsor of the event. Chairman Kulaszewicz asked if advertising money would be better spent on events rather than ads in the paper. Housing Manager Barnes said he would discuss options with Grace Management Representative Bodigheimer. Commissioner Miller asked if Facebook advertising would be more cost effective. Housing Manager Barnes said that medium has not been looked at. Commissioner Miller said adult children would see ads on Facebook but may not look at the Lakeshore or Sun Sailor. He said on Facebook some click -on ads are free, and then information could be shared with parents. Housing Manager Barnes said he would look into the Facebook option. B. Sand Companies Support Services Manager Whalen gave an overview of the staff report to award seven (7) project -based units for the Westview Estates development and authorize execution of HUD - 52531 -A — Agreement to Enter Into Housing Assistance Payments Contract for new construction. Support Services Manager Whalen introduced Neil Fortier and Nikki Sand, representing Sand Companies Chairman Kulaszewicz asked about the funding source for project -based and tenant -based vouchers. Support Services Manager Whalen said the City of Plymouth HRA receives federal funding from Housing and Urban Development (HUD) for 210 vouchers. She said we can choose to take seven of those vouchers and put in Westview Estates as project -based vouchers for a term of at least ten years. Chairman Kulaszewicz asked if we would still get the funding if we did not have those seven vouchers. Approved Plymouth Housing and Redevelopment Authority April 28, 2011 Page 3 Support Services Manager Whalen said we would still retain those seven vouchers, but they would be tenant -based. She explained that we are using 210 vouchers currently, and when we know this project is nearing completion of construction we would begin to hold vouchers as they become available in order to have seven available. Support Services Manager Whalen added that there are on average 14 voucher turnovers per year. She said two recent turnovers occurred because the tenants purchased homes; other vouchers become available due to death of an elderly tenant. Support Services Manager Whalen said the seven vouchers are used whether tenant - based or project -based. Chairman Kulaszewicz asked if the number of vouchers would change from 210 after a census or what would affect a change in this number. Support Services Manager Whalen said the Plymouth HRA started with 87 certificates. Periodically HUD puts out a request for proposal for funding of new vouchers. She said the last time we applied was 8 or 9 years ago and received 15 mainstream vouchers for handicapped and elderly. Chairman Kulaszewicz said one of our mandates is to have more affordable housing and one of the ways to get affordable housing is to get more vouchers. Housing Manager Barnes clarified that it gives a rent subsidy but does not give us points to create a new affordable unit. He said we have not been applying when the request for funding of new vouchers comes out because we don't compete well under the new criteria ranking. Housing Manager Barnes said with the proposed project we are getting 67 affordable units toward our overall goal, and seven are getting additional assistance with project -based vouchers. Chairman Kulaszewicz asked Mr. Fortier if the seven vouchers are affordable anyway, do these seven make this project work. Mr. Fortier answered affirmatively, and said in order for this project to get selected there were points awarded because the City of Plymouth stated they would provide seven project -based units, and then Sand Companies committed for 10 years. Mr. Fortier stated their application would not have been selected without the project -based vouchers. Commissioner Stein asked how a tenant finds a rental unit when project -based. Support Services Manager Whalen said letters would go to persons already on the Section 8 waiting list informing them this project is opening up. They would apply directly at the building. Once accepted and approved we provide assistance based on income just like a tenant -based voucher. They only get assistance as long as they live in that unit. If they move out, we move someone else in from our waiting list. Support Services Manager Whalen added that if other tenant -based vouchers become available we can offer it to someone on a project -based voucher because we are supposed to at some time give them a tenant -based voucher. She said many prefer to keep their project -based voucher as they don't want to move elsewhere. Approved Plymouth Housing and Redevelopment Authority April 28, 2011 Page 4 Commissioner Stein asked if people turn you down because they do not want to live at that building. Support Services Manager Whalen said some decline because they want a tenant -based voucher only. Commissioner Stein asked Mr. Fortier if they have to meet Sand Companies' criteria when they move in. Mr. Fortier answered yes, and said they have to continue to meet our criteria. He said in the cases where a tenant is evicted, they lose their assistance at their building and in the state of Minnesota when there is a violation of lease. Chairman Kulaszewicz asked how frequently someone leaves a project -based voucher for a tenant -based voucher. Support Services Manager Whalen said there were three recent tenant -based vouchers which were issued to tenants who had communicated to us they preferred a tenant -based voucher. Commissioner Stein said the HRA will be losing some CDBG funding; he asked about funding for the Section 8 program. Support Services Manager Whalen said we are 100% funded for housing assistance payments this year. She said a portion of the administrative fees were cut. Chairman Kulaszewicz asked if funds would come from some of our services, such as Tree House. Housing Manager Barnes said those funds could not be used. He said that CDBG will be cut 16.2%, resulting in the funding the HRA board approved in February will be lower. Commissioner Stein asked if funding was decreased for Section 8 housing, would you keep the same number of vouchers but there would be less subsidy. Support Services Manager Whalen stated the housing assistance payments are still 100% and we may have to use the operating reserve for administrative fees. Support Services Manager Whalen said there is $650,000 in the operating reserve which is adequate for 2011, but we do not know what will happen next year. Support Services Manager Whalen said if funding is cut options range from lowering payment standards to tightening the subsidy standards; the last thing we would do is cut anybody from the program. Commissioner Caryotakis asked when the project is scheduled to start. Approved Plymouth Housing and Redevelopment Authority April 28, 2011 Page 5 Mr. Fortier said they have to start by June 301h Housing Manager Barnes clarified there are competing interests from the funding sources. The TIF district requires construction begin by July 1. Housing Manager Barnes said other funding sources want everything approved before construction can start. He said Sand Companies will be moving dirt to meet the Jobs Bill requirement, while we are finalizing details with the funding partners. Housing Manager Barnes said hopefully there will not be any work stoppages. Mr. Fortier said they are getting a "bridge loan" which will help with flexibility and timing to keep them on track. Chairman Kulaszewicz said it is exciting to have some development going on and good for the construction industry. Mr. Fortier said they are excited and this will be an absolutely gorgeous building. He said they are excited to get moving forward and thanked the HRA for the seven project -based units and the 600,000 in assistance. Mr. Fortier said without that, this application would not have been accepted. MOTION by Commissioner Miller, seconded by Commissioner Caryotakis, to award seven (7) project -based units for the Westview Estates development and authorize execution of HUD - 5253 1 -A — Agreement to Enter Into Housing Assistance Payments Contract for new construction. Vote. 4 Ayes. MOTION approved unanimously. 4. ADJOURNMENT MOTION by Commissioner Caryotakis, seconded by Commissioner Miller to adjourn the meeting at 7:31p.m.