HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-20-2003MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
February 20, 2003
PRESENT: Commissioners Steve Ludovissie, Leon Michlitsch, Tim Bildsoe and Jenny
Hibbard
ABSENT: Chair Susan Henderson
STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes,
Support Services Manager Denise Hutt, HRA Specialist Tracy Jones, HRA Specialist Kristine
Aritt, Office Support Specialist Barb Peterson
OTHERS PRESENT: Springsted Representative Terri Heaton
1. CALL TO ORDER
Commissioner Ludovissie called the Plymouth Housing and Redevelopment Authority meeting
to order February 20, 2003 at 7:07 p.m.
2. APPROVAL OF MINUTES
MOTION by Commissioner Michlitsch, seconded by Commissioner Hibbard, approving the
January 16, 2003 minutes. Vote. 4 Ayes. Motion approved unanimously.
MOTION by Commissioner Michlitsch, seconded by Commissioner Hibbard, approving the
February 10, 2003 Stakeholders Meeting Minutes. Vote. 4 Ayes. Motion approved
unanimously.
3. CONSENT AGENDA
A. Plymouth Towne Square — Accept monthly housing reports.
B. Approve the Section 8 Management Assessment Program (SEMAP) Certification
Submission.
C. Approve request by Hammer Residences for CDBG funds.
MOTION by Commissioner Michlitsch, seconded by Commissioner Hibbard, approving the
Consent Agenda items. Vote. 4 Ayes. Motion approved unanimously.
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February 20, 2003
Page 2
4. PUBLIC HEARING
A. City of Plymouth. Public hearing on allocation of funds for the 2003 Community
Development Block Grant Program.
HRA Specialist Jones presented an overview of the funding recommendations for the 2003
Community Development Block Grant Program allocation of $325,000.00. She stated that staff
is recommending an allocation of $160,000.00 to Housing Rehabilitation, $80,000.00 to First
Time Homebuyers, $36,000.00 to Affordable Housing Development and no funding to CDBG
Administration (given an anticipated carryover of 2002 funds). She also stated that staff is
recommending a combined allocation of $49,000.00 to be split between eight public services
agencies this year. She stated the amount of funding each agency is projected to receive and
asked for questions or comments.
Commissioner Ludovissie opened the Public Hearing.
Patrick Rowan, representing PRISM, said he would like to clarify their purpose. He stated that
their main function is to provide transportation to medical appointments for seniors, however,
that accounts for less than half of the residents to which they provide transportation. They also
transport residents, other than seniors, to the food shelf at PRISM and to other appointments. He
stated the number of residents they provide transportation for in Plymouth is fairly low, but they
do bring a significant number of people who live in other areas to Plymouth for appointments.
He said they are upgrading their computer system and will be better able to track the number of
riders and destinations in 2003. Commissioner Michlitsch asked how wide an area they cover.
Mr. Rowan said they cover Brooklyn Center, Crystal, Robbinsdale, New Hope, Golden Valley
and Plymouth as far west as 494 and serve approximately15-30 people a day.
Bill O'Meara, representing Community Action for Hennepin County, said they appreciate the
help, especially in the First Time Homebuyer education. He said mortgage foreclosures are up
considerably. He stated that seniors have taken advantage of the Reverse Mortgage Counseling
program. Commissioner Ludovissie asked if the support we provide goes directly to Plymouth.
He replied it does.
Charlie Warner, Executive Director of Homeline, thanked the City for the support they provide.
He said they run a tenant hotline that is staffed by attorneys and law students. It provides an
opportunity for law students to get practical experience working with housing issues. The
service is free and they can handle most any housing situation.
Carla Jacobson represented Greater Minneapolis Day Care Association. She said she does have
some concerns about the low amount of funding they received and feels there might be some
misunderstanding. She said the money goes directly to Plymouth families. She explained how
their program works. She said the proposed $1000 will cause a very minimal impact in
Plymouth. Commissioner Michlitsch asked why they did not request a minimum amount. Ms.
Jacobson replied that if it was on her application she overlooked it. She explained why there was
a delay in spending down the money from prior years. In previous years the waiting list was low
but now the need is greater. Commissioner Ludovissie asked why that will change in 2003. She
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February 20, 2003
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said the number of families will not change but the waiting list will increase. Commissioner
Hibbard asked her to explain why the 2001 allocation amount was not all used. She explained
how the process works and that there is a time lag when they anticipate where the money is
allocated but not spent. Commissioner Ludovissie asked what would happen if they received a
nominal amount of funding this year, use the surplus from previous years and the issue is
readdressed in 2004. Ms. Jacobson replied that none of the families would come off the waiting
list. Commissioner Hibbard asked what an appropriate period of time would be to cycle the
money. Ms. Jacobson replied that it would be eighteen months and that the pattern followed is to
spend a lot of money quickly and then some is held. Then that pattern repeats itself. Housing
Manager Barnes stated that staff has had several discussions with GMDCA staff about the spend -
down issue since November. He also explained the process by which Plymouth's CDBG
allocation may be reduced if the money is not spent in a timely manner.
Judy Reckner, Director of Kids Care Connection, said they are providing daycare assistance for
families similar to those on the list of Greater Minneapolis Day Care. They are families who live
in Plymouth, need childcare and cannot afford the tuition. Commissioner Bildsoe asked how
many families are being served. She said currently they serve 11 children from nine families.
She said they are a small center and will have a total of approximately 35 children. They are
striving to help families so the same infant can be served through kindergarten. The money will
be used to balance the numbers of families served and hopefully increase the number of families
they provide service for. Housing Manager Barnes said when funding a new social service
agency the funding cannot be used to replace other funding. They will need to show an increase
in the service and add additional children to meet the guidelines. Commissioner Ludovissie
asked if they have a waiting list at this time. Ms. Reckner replied that they do. However,
because they are so small, it is difficult to have the right age spots open to fit the children into.
Commissioner Bildsoe asked if the amount of funding requested, which was $5000, versus the
funding received of $4000, was going to create a problem. She explained how their system
works and said she really does not know at this time what it is going to take to grow that
percentage of families. She said she will need to use this money to hold spots open and try to get
children to fill them. Commissioner Bildsoe asked if this might mean she can only add three
children rather than four. She replied it could. Commissioner Ludovissie suggested that since
they are a new organization that this might be a good way to find out exactly what their need is.
Pat Cheyne represented Family Hope Services. She said their organization gives hope to hurting
at risk youth. The service is offered without charge including transportation. She gave an
example of a Plymouth teen they are helping at this time. She said they are very appreciative of
the funds they receive and stated that Plymouth will have their own Treehouse in the near future.
Commissioner Ludovissie asked why they requested more funds this year and what the
additional funds would be used for. She said that because Plymouth does not have a Treehouse
most of Plymouth youth use the New Hope or Minnetonka locations. She said that because there
are two places to maintain the cost is more. Commissioner Ludovissie asked when the Plymouth
Treehouse will be built. She replied it won't be in this fiscal year but they hope to break ground
in the next couple of years. Commissioner Bildsoe explained that they are in the process of
purchasing a site on County Road 101 and also said he didn't remember them requesting a
minimum amount in previous years. Housing Manager Barnes explained that he reworked the
application and instituted the minimal amount necessary to assist with funding recommendations.
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February 20, 2003
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Karen Trondson and Larry Nelson represented the Northwest YMCA. Ms. Trondson said they
have added transitional housing for young people in the Northwest area. She said they have
served three young people from Plymouth with housing needs from the support they received.
They also served 12 young people in the family reunification program this past month. She said
that due to confidentiality they can't always track the exact number of Plymouth youth they
serve but know it's hundreds. Mr. Nelson said they are the only 24 hour crisis line in this area.
He said they appreciate the support Plymouth is giving them. Ms. Trondson said they are in the
process of a campaign to develop a new center at the Northwest YMCA site. Commissioner
Michlitsch asked what age group they serve. Mr. Nelson replied that Point Northwest is ages 10-
21.
Commissioner Ludovissie closed the public hearing.
Commissioner Bildsoe commented about the upcoming budget cuts and said the HRA is trying
to support as many services as they can. Commissioner Hibbard asked for their patience in the
balancing of funds.
Housing Manager Barnes stated that he spoke with Chair Henderson and she had expressed some
comments regarding the allocations. He said that Chair Henderson indicated that she would like
to see a slight reallocation in the social service funding. She felt the TRAILS allocation should
be lowered to their minimum request of $8000 and the additional $1000 moved to Family Hope
Services. Her rationale was that TRAILS was the only agency funded to the maximum and that
Family Hope Services would only be receiving about 35% of their request. Housing Manager
Barnes said TRAILS is an in-house program and over the years we have tended to make sure
they have adequate funds. The 35% looks like a significant amount, however, they did not put a
minimum down.
Commissioner Hibbard asked what else we would do with the $1000 if we only give TRAILS
8000. Support Services Manager Hutt said the minimum was put in because they needed to fill
in an amount. She said they really need the $9000 and explained the program which is run in a
voluntary joint Family self-sufficiency program with the St. Louis Park Housing Authority. She
said the participants are on the program up to five years and when they graduate they can use the
money however they wish. She cited an example that if a tenant isn't working at the time of
enrollment, their tenant portion of the rent could be $200, and if they get a job and their tenant
portion of the rent increases to $400, the difference of $200 is put in an escrow account. Many
of the participants have used their escrow funds to purchase homes. Commissioner Ludovissie
asked if we follow up on their progress. She said that staff doesn't have a follow-up program;
however, there is a TRAILS Program Coordinating Committee which several of TRAILS
participants have served on.
Commissioner Ludovissie said he relies heavily on staff and values their opinion. Commissioner
Michlitsch also concurred that he relies on staff and would like to keep the funding allocations
the same as proposed by staff.
Plymouth Housing and Redevelopment Authority
February 20, 2003
Page 5
MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe to approve the
attached resolution providing a recommendation to the City Council for adoption of its 2003
CDBG program funding.
Vote. 3 Ayes. MOTION approved on a 3-1 vote. (Commissioner Hibbard voted nay.)
Commissioner Hibbard stated she didn't support the Motion because TRAILS was funded to the
maximum and the other requests were not.
5. NEW BUSINESS
A. PLYMOUTH TOWNE SQUARE — Adopt the Resolution Approving the Sale of G.O.
backed Governmental Housing Project Refunding Bonds.
Housing Manager Barnes stated that at the January 2003 HRA Board meeting, the Board
approved the sale of G.O. backed Governmental Housing Project Refunding Bonds for Plymouth
Towne Square. He said the HRA Board selected a level savings solution which would reduce
the interest paid, but the term will remain the same at 20 years. Using this option, it was
estimated the HRA would see a savings of $30,000 per year. He stated that on January 28, 2003,
the City Council reaffirmed their General Obligation pledge for the bonds.
Housing Manager Barnes introduced Terri Heaton from Springsted Inc.
Ms. Heaton explained the bids which were received at Springsted Inc. by 11:00 a.m. on February
20, 2003. They received three bids and the low bid was from RBC Dain Rauscher Inc. with a
true interest rate of 4.0849%. She said that the estimated true interest costs at the time of the
recommendation was roughly 4.375%, with an estimated present value savings of $538,000.
With the lower interest rate the present value savings will be $676,000, which is an additional
138,000 of present value savings. She said that in addition to that benefit, the reserve fund of
163,000, which was funded originally by the HRA in cash, will be released. The Aaa bond
rating was reaffirmed due to a very favorable report for the City of Plymouth from Moody's.
Commissioner Ludovissie stated that this is very good news and thanked Ms. Heaton for
attending.
Housing Manager Barnes stated that the revised Resolution is before the Commissioners and
asked for a recommendation to approve Resolution 03-07.
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch approving
Resolution 03-07 to issue G.O. backed Housing Project Refunding Bonds for Plymouth Towne
Square.
Vote. 4 Ayes. Motion approved unanimously.
Plymouth Housing and Redevelopment Authority
February 20, 2003
Page 6
B. City of Plymouth. Proposed revisions to the First Time Homebuyer Program Procedural
Guide.
HRA Specialist Jones stated that the Plymouth Housing and Redevelopment Authority operates a
First Time Homebuyer Program, which is funded through Community Development Block Grant
Funds, and is reviewed periodically by staff. She said that at this time staff is proposing three
revisions to the Procedural Guide.
HRA Specialist Jones explained the first revision is to increase the maximum loan amount from
20,000 to $25,000. She said by increasing this amount staff is hopeful that existing homes
within the City will remain affordable to buyers at or below 80% of median income.
The second and third revisions would consist of two changes to the loan subordination policy.
She said at the present time all current and proposed property liens must equal less than 90% of
the appraised value of the property. Staff is proposing to raise this amount to 95%. She stated
that currently at least 80% of the cash received from a loan refinance must be used for home -
improvement related expenses. Staff is proposing to lower this amount to 70% leaving the
borrower with 30% to be used for other expenses or debts.
Staff is also proposing a change to the Family and First Time Homebuyer definitions. The
definition of family would be more broad. It would be changed to read "A group of individuals
who live or will live under one roof'. The definition of First Time Homebuyer would include
someone who has been displaced due to a divorce situation.
Commissioner Michlitsch asked if we increase the amount to 95% would we be putting some
people at risk of not getting a loan. Housing Manager Barnes said that they were comparing the
rates to first mortgage products and most are at 95%. Commissioner Ludovissie also stated that
the Board has the option of going back to the 90% at any time.
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to adopt the
revised First Time Homebuyer Procedural Guidelines as outlined in Resolution 2003-06.
Vote. 4 Ayes. Motion approved unanimously.
C. City of Plymouth. Proposed revisions to the Rehabilitation Program Procedural Guide.
HRA Specialist Aritt presented an overview of the Rehab guidelines. She said staff is proposing
to increase the maximum loan amount from a $15,000 to a $20,000 maximum. This is mainly
due to federal regulations concerning rehabilitation of homes with lead-based paint, and the
rising cost of construction.
The second change HRA Specialist Aritt noted was the amount of accessible assets applicants
can have. She said staff is recommending putting a $25,000 cap on assets, excluding their
primary residence and one automobile. Currently, there are no asset limitations.
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February 20, 2003
Page 7
HRA Specialist Aritt stated that staff proposes an increase in the Small Repair Grant from $2,500
to $5,000, due to rising construction costs.
The fourth change is to increase the maximum loan amount for lead-based paint issues from
25,000 to $30,000. As stated earlier work involving the reduction of Lead Paint substantially
increases the total cost of the project.
HRA Specialist Aritt said the final change would be to the Loan Subordination Policy. At the
present time, 80% of the cash received from a loan refinance must be used towards home -
improvement related expenses. Under the proposed change, 70% would have to be used towards
these improvements, leaving the loan recipient a remaining 30% to be used for other expenses or
debts.
Commissioner Ludovissie asked what the recipients typically use the 30% for. Housing
Manager Barnes stated that credit card debt may be paid off or it could be used for a down
payment on a car. Commissioner Ludovissie asked why it would be in our interest to increase
this amount for them to use. Housing Manager Barnes said in dollar amounts it is not very
significant but is one of the largest complaints from our recipients. He said we do take into
consideration that they are not just using their home equity to pay off debts. Commissioner
Hibbard said her concern would be that people were just refinancing to take care of credit card
debt.
Commissioner Michlitsch asked how much lead paint is affecting the rehab loans. Housing
Manager Barnes said that since the lead rule has been in place bids are much higher when they
have to mitigate lead in the house..
Commissioner Ludovissie said he preferred to retain the current loan subordination policy.
MOTION by Commissioner Ludovissie, seconded by Commissioner Hibbard, to adopt the
resolution revising the policies of the HRA Housing Rehabilitation Loan Program Procedural
Guide, including an amendment that maintains the current Loan Subordination Cash Out Policy
of 80%.
Vote. 3 Ayes. MOTION approved on a 3-1 vote. (Commissioner Bildsoe voted nay.)
Commissioner Bildsoe stated he favored changing the loan subordination policy.
D. City of Plymouth. Discuss Stakeholder's Input on Strategic Plan.
Housing Manager Barnes explained that following the February 10th
Stakeholders meeting staff
prepared a matrix detailing the comments received from the attendees and letters received from
those who could not attend. He said the staff recommendations are included next to each
comment. Housing Manager Barnes made suggestions as to how to review this information.
Commissioner Ludovissie also suggested that it could be tabled until all Commissioners are
present. Commissioner Michlitsch asked Housing Manager Barnes if Chair Henderson had
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February 20, 2003
Page 8
made any comments in her absence. Housing Manager Barnes replied she had made four minor
comments. The Commissioners concurred that discussion should be held this evening.
Commissioner Hibbard thanked the staff for putting together the Strategic Plan.
Housing Manager Barnes reviewed Chair Henderson's comments as follows:
12 Add that the HRA authority is limited in certain circumstances.
13 Remove the word "already" in the first sentence of the staffs' response.
19 Housing Manager Barnes said the change to #19 relates to the second bullet in the Vision
Statement. He stated Chair Henderson felt we should delete the end of the sentence which reads
for residents and people who work in the community." Housing Manager Barnes also stated
Chair Henderson would like to have the issue of diversity added to the sentence. Director
Hurlburt suggested it could read "offers a variety of affordable life -cycle housing choices
dispersed throughout the City to meet the needs of a diverse population." The Board agreed with
this change.
Commissioner Ludovissie also thanked the staff for their work on the Strategic Plan.
MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe to approve the
HRA Strategic Plan with proposed changes.
Vote. 4 Ayes. Motion adopted unanimously.
8. ADJOURNMENT
Meeting adjourned at 8:40 p.m.
HRA/Minutes/022003