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.
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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.
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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.
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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.
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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.