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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-23-2012APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY February 23, 2012 PRESENT: Chairman Jeff Kulaszewicz, Commissioners Bob Stein and David Miller ABSENT: Commissioners Paul Caryotakis and Jim Willis STAFF PRESENT: Housing Program Manager Jim Barnes, HRA Specialist Kip Berglund, Grace Management Representative Jody Boedigheimer, and Office Support Representative Janice Bergstrom OTHERS PRESENT: Carl Runck 1. CALL TO ORDER Chairman Kulaszewicz called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 p.m. Chairman Kulaszewicz introduced the new HRA Commissioner, Carl Runck, to staff. Housing Program Manager Barnes added Item 4.13. Vicksburg Crossing Bonds to the February 23, 2012 HRA agenda. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from January 26, 2011. B. Plymouth Towne Square. Accept Monthly Housing Reports for January, 2012. C. Vicksburg Crossing. Accept Monthly Housing Reports and Monthly Marketing Reports for January 2012. D. Tax Increment Financing District 1-2. Administrative modification to district parcels. E. Special Meeting. Call for a special meeting on March 13, 2012 at 6:30 p.m. in the Parkers Lake Room to approve the sale of the Vicksburg Crossing Refunding Bonds. MOTION by Commissioner Stein, seconded by Commissioner Miller, to approve the consent agenda. Vote. 3 Ayes. MOTION approved. 3. PUBLIC HEARING A. Community Development Block Grant (CDBG). Consider 2012 CDBG program year allocation with recommendation to City Council. Approved Plymouth Housing and Redevelopment Authority February 23, 2012 Page 2 HRA Specialist Berglund gave an overview of the staff report. Chairman Kulaszewicz asked if the rehab program helps in any way to meet affordability goals for Met Council. Housing Program Manager Barnes said neither the rehab nor First Time Homebuyer programs meet the Met Council requirements as they are looking for new units constructed. Chairman Kulaszewicz opened the public hearing. Chairman Kulaszewicz introduced Courtney Whited, Director of People Responding In Social Ministry (PRISM) Express, 730 Florida Avenue S., Golden Valley MN. Ms. Whited said they are a door-to-door transportation service for area suburbs. There are 12 -passenger buses operating between 8 a.m. and 4 p.m., similar to Metro Mobility buses. Ms. Whited said in 2011 they gave 71,000 one-way rides. Ms. Whited said new software was recently installed that assists in running their program more efficiently. Commissioner Stein asked if they offer weekend buses. Ms. Whited said seniors utilize eight buses for church services on Sundays. She said they also contract with a program called "Families Moving Forward" 365 days a year, which takes a family member to a day care center in the morning, and reverse each evening. Chairman Kulaszewicz introduced Eric Hauge, representing Home Line, which is a free legal hotline for renters in the State of Minnesota. He said they have served Hennepin County and Plymouth for the last twenty years. Mr. Hauge said last year they served 250 renter households in Plymouth. He estimated they prevented 19 evictions and estimated a savings of $38,000 recovered in rental maintenance and returned security deposits by providing free legal advice. Mr. Hauge said the City of Plymouth ranks eighth as the most -served city in terms of renter households. Commissioner Stein asked which city is number one. Mr. Hauge stated Minneapolis and St. Paul are number one and two respectively. Chairman Kulaszewicz introduced Scott Zemke, representing Community Action Partnership of Suburban Hennepin (CAPSH), which offers first time homebuyer education and counseling, energy assistance, foreclosure assistance and reverse mortgage counseling to seniors. Mr. Zemke said they offer free advice to homeowners regarding the rehab program. He said they offer tax programs and free legal clinics. Chairman Kulaszewicz asked if the foreclosure services are in high demand with the current economic conditions. Approved Plymouth Housing and Redevelopment Authority February 23, 2012 Page 3 Mr. Zemke answered affirmatively, and added foreclosures are receding a bit in the outer ring suburbs and are transitioning more to first ring suburbs. He said they did serve 42 households with foreclosure service in 2011. Chairman Kulaszewicz introduced Bruce Taylor, representing Tree House. Mr. Taylor said in 2011 over 1,500 teens were served in the seven Tree House sites; almost 200 were at the Plymouth location at Peace Lutheran Church. He said they work with kids who self -injure, are depressed, are victims of crime, have families in crisis, are sexually active, use drugs and alcohol and may be truant from school. Mr. Taylor gave some history on Tree House which was founded in 1984, and resulted in different programs for kids which include mentoring, small support groups, large groups, growth group plans, and adventure trips - such as boundary water trips, community service and mission trips. He said these are tied together with an opportunity fair for the kids to plan for their future, either with education or vocational goals. Mr. Taylor said in comparison with other teens on reduced school lunches, these teens have a 24% higher graduation rate. He said they also provide transportation to events utilizing a fleet of 28 vans. Chairman Kulaszewicz asked if Tree House provides shelter service. Mr. Taylor said the kids have to go home eventually, so there is no overnight stay. He said they try to give the kids tools to handle what happens in their house. He did indicate that they partner with Bridging Inc. if a youth does need a place to stay outside of their own home. Chairman Kulaszewicz introduced Timothy Morin, Household and Outside Maintenance for Elderly (HOME) Program Coordinator of Senior Community Services, who said they are in their 61 st year of providing services to seniors in suburban Hennepin County. Mr. Morin said the charge for services which include lawn mowing, snow removal, home cleaning, minor repairs, and painting is based on the person's monthly income. He said they utilize a sliding fee scale which is subsidized through CDBG funds and some services are free. Mr. Morin said seasonally there are large scale projects such as leaf clean up, window washing, and basement and garage cleaning, and volunteers are secured for these. Mr. Morin said there have been 25 individuals served in the Plymouth area in the current year. Mr. Morin said they partner with Plymouth and a social worker operates out of the Plymouth Creek Center. Chairman Kulaszewicz introduced Ellen Timmerman -Borer, Director of Development and Communications at Hammer Residences. Ms. Timmerman -Borer said Hammer provides support for adult and kids with disabilities, primarily in single family homes. She said Hammer has 37 homes, 16 of which are in the City of Plymouth. Ms. Timmerman -Borer said the group homes have four to six residents and are staffed 24 hours a day. She said there is a staff of 450 to help the residents live life to the fullest. Ms. Timmerman -Borer said CDBG funds support and ensure the Hammer homes meet the standards of other homes in Plymouth. She said sprinkler systems and accessibility projects have been done, and they are looking to add energy efficient windows in their home on Black Oaks Lane. Chairman Kulaszewicz closed the public hearing. Approved Plymouth Housing and Redevelopment Authority February 23, 2012 Page 4 HRA Specialist Berglund said the YMCA was not able to be represented at the meeting. Commissioner Stein asked why the YMCA funds were cut in half HRA Specialist Berglund explained the YMCA has decreased their overall service numbers compared to what they provided in the past. He said staff is recommending a slight reduction based on the ranking of applicants and numbers reflected in their score. Housing Manager Barnes pointed out that the amount cut in half was actually the YMCA's requested amount. He said this is only a $60.00 reduction compared to last year's. HRA Specialist Berglund added that the YMCA said the reduced funding has hurt their ability to get out in the community and their numbers reflect that. Chairman Kulaszewicz recalled we had to encourage the YMCA to better track Plymouth residents that were served. HRA Specialist Berglund said the difficulty in tracking youth has been their ability to respond to certain questions that are required by HUD. Chairman Kulaszewicz stressed to those present that we really do care about Plymouth city residents and wants Plymouth residents to be included in the statistics. Commissioner Miller asked the main reason Thy Word is not receiving funding. HRA Specialist Berglund said Thy Word submitted an application late in the process and also the application lacked the overall understanding of the CDBG program requirements. He said with the combination of their inability to supply the requested information and the decreased amount we have available for social services, it was decided it would be best to allocate the funds to existing applicants. Housing Program Manager Barnes added Thy Word is a small program and new to the federal funding world; he said staff has offered advice and ideas to them on how to make a solid application. Commissioner Miller and Chairman Kulaszewicz asked why we are not using the full $38,000 allowed. Housing Manager Barnes said we have limited resources and have always gotten direction from the board to ensure funding for in-house programs first. He said it is at the Board's discretion to adjust the funding allocations recommended by staff. Chairman Kulaszewicz noted that the administration fee has stayed constant over the years. Approved Plymouth Housing and Redevelopment Authority February 23, 2012 Page 5 Housing Manager Barnes concurred that number has stayed constant and he explained the administration cost covers the salary for the position that coordinates the program. He said we also bill back time to the Rehabilitation and First Time Homebuyer programs. Commissioner Miller said he would like to see the full complement go to social services, as these are great programs and have served the City of Plymouth very well. He said he does agree that we need to see a bigger uptick in the housing rehab loans as that serves the community more. Commissioner Miller said he is unsure if $3,000 can be trimmed from the housing rehab program budget. Housing Manager Barnes said that could be done, and the rehab program is where funds would come from. He said the First Time Homebuyer program is being funded at zero. Housing Program Manager Barnes said in the past ten years we were able to fund these programs very well as there has always been carry over money and larger allocations. He said funding has gone from $324,000 at one time and is now down to $240,000. Housing Program Manager Barnes stated we are working almost exclusively within our currant allocation at this point so programs are shrinking. Commissioner Miller asked how much carry over we have each year to keep the programs sustainable in future years, particularly for rehab loans. Housing Manager Barnes said we are down to $15,000 in rehab being carried over. He said the unknown we have are repayments for the rehab and the first time homebuyer programs. Housing Program Manager Barnes said there are 180 to 190 loans in each program and if someone moves, they would be required to pay back all or a portion or their loan. Chairman Kulaszewicz said his inclination with the current economic climate is to spend up to the maximum allowed on social services. Commissioner Stein said $3,000 amongst the agencies won't help a lot, but if $3,000 is kept in the rehab program it would be 10% of a potential loan. He said that would be a direct benefit to a Plymouth resident and to the housing stock in Plymouth. Commissioner Stein said he prefers to keep it in the rehab program. Commissioner Miller said he would rather keep the funds in the rehab program to help sustain it with the extra carry over. He said we don't know what will happen to the allocations next year. Housing Program Manager Barnes said if a program is not being utilized as anticipated, the Board can make amendments and adjustments at a later date. Chairman Kulaszewicz said he supports the recommendations. MOTION by Commissioner Stein, seconded by Commissioner Miller, to accept the Community Development Block Grant 2012 Action Plan. Vote. 3 Ayes. MOTION approved. Approved Plymouth Housing and Redevelopment Authority February 23, 2012 Page 6 4. NEW BUSINESS A. SENIOR BULDINGS. Consider proposed changes to the Admissions and Occupancy Handbook and the Lease Agreement. Commissioner Stein asked about the Plymouth Town Square rent calculation percentage being changed from 35% to 37%. Housing Program Manager Barnes explained this is not a change or a raise to the rent calculation, but rather an update of the adopted policy in the handbook. Commissioner Stein said he likes the handbook and said he was concerned about Plymouth Towne Square never having one. Housing Program Manager Barnes said there has been a handbook with policies and procedures since both buildings opened. He said the proposed revisions to the handbook updated rent calculations based on the board's policy adopted in 2011, the increased security deposit from 500 to $750, the increased pet deposit from $100 to $250, and raised the weight limit of pets to ensure small breeds. Commissioner Stein asked why there is a pet weight limit increase. Grace Management Representative Bodigheimer said staff is recommending increasing the 20 - pound weight limit to 25 pounds, which is a more typical of what we are experiencing. She said an exception would be for a service dog. Housing Program Manager Barnes said the lease was updated to conform to Minnesota law, and language was added regarding illegal substances and the smoking policy. He said it is now clear that possession of an illegal substance results in automatic eviction. Chairman Kulaszewicz asked about occupancy standards for a two-bedroom unit at Plymouth Towne Square if there is one occupant, and asked if that applied only to the affordable units. Housing Program Manager Barnes clarified that most of the units are affordable. He said previously the two-bedroom wait list was long and not turning because if one spouse passed away, the other person remained in the unit resulting in "over -housing". The Board made a policy decision that one person living in a two-bedroom would have to move in a reasonable amount of time or would have to pay market rent on the two-bedroom. Chairman Kulaszewicz asked if a person in that situation would go to the top of the list. Housing Manager Barnes answered affirmatively. Approved Plymouth Housing and Redevelopment Authority February 23, 2012 Page 7 Chairman Kulaszewicz asked if this was a difficult policy to enforce. Housing Program Manager Barnes said initially there was some resistance, but not anymore. Commissioner Stein asked about the wait time. Grace Management Representative Boedigheimer said there is approximately a one year wait to move to the one -bedroom. Commissioner Stein said he is not sure if allowing a resident to pay market rate and stay in the two-bedroom is advisable. Grace Management Representative Boedigheimer said the wait list for a two-bedroom is only 28 days. Housing Program Manager Barnes concurred and said financially it is better to have the few who choose to stay pay for the two-bedroom. He said we are not seeing an issue with this now and could change the policy if necessary. Chairman Kulaszewicz said if the goal is to get our money then that is the way to go, but if the goal is to house more people, we would choose the other way. Housing Manager Barnes said it is our responsibility to try to minimize the subsidy that goes into this heavily subsidized building. Commissioner Miller said we would rather take in full market rent than subsidize another tenant. Commissioner Stein asked how many tenants pay full rent. Grace Management Representative Boedigheimer said there are only four tenants paying full market rent. Chairman Kulaszewicz said he is pleased that staff is keeping the handbook and literature updated. MOTION by Commissioner Stein seconded by Commissioner Miller, to accept the Admissions and Occupancy Handbook and the Lease Agreement for Plymouth Town Square and Vicksburg Crossing. Vote. 3 Ayes. MOTION approved. B. Vicksburg Crossing Bonds. Housing Manager Barnes reviewed two options for bond refunding as suggested by Ehlers. He said the original run shows a level savings year to year, but bond payments increase over time. He said in the long range forecast, in 2033 we would be short $600,000 - 700,000. Housing Approved Plymouth Housing and Redevelopment Authority February 23, 2012 Page 8 Program Manager Barnes said the Plymouth Towne Square debt would be satisfied so there would be a resource. He said Ehlers suggested Option #2, which has even bond payments over time and which generates greater savings in the later years. Housing Program Manager Barnes stated at no point would we have to pay more on an annual basis. He said in one year there is a zero savings in the bond run. Chairman Kulaszewicz asked if the total savings is approximately the same. Housing Program Manager Barnes said there would be approximately $100,000 more in savings with Option #2. He said for the next couple years we would recommend a subsidy which would be part of the budget out of the general fund reserve or tax levy. Commissioner Stein said if we can save $100,000, he would support Option #2. Housing Program Manager Barnes added that Commissioner Caryotakis supported Option #2 and Commissioner Willis had reviewed the options and suggested the Board discuss them at this meeting. Commissioner Miller and Chairman Kulaszewicz said they also support Option #2 MOTION by Commissioner Miller, seconded by Commissioner Stein, to approve the recommendation by Ehlers to maintain even bond payments for Vicksburg Crossing. Vote. Ayes. MOTION approved. C. Election of Officers. Chair, Vice -Chair, Secretary Chairman Kulaszewicz recommended tabling the election of officers to the March, 2012 meeting. 5. ADJOURNMENT Commissioner Miller thanked everyone and said he has enjoyed being on the HRA Board and that it was a tough decision to move and resign. Chairman Kulaszewicz thanked Commissioner Miller for his service. MOTION by Chairman Kulaszewicz, without objection to adjourn the meeting at 8:01 p.m. MOTION approved.