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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-19-2004MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY February 19, 2004 PRESENT: Commissioners Susan Henderson, Steve Ludovissie, Leon Michlitsch, Jenny Hibbard and Tim Bildsoe. ABSENT: None STAFF PRESENT: Housing Program Manager Jim Barnes, HRA Specialist Tracy Jones, Housing Technician Paula Dorn, Office Support Representative Barb Peterson. OTHERS PRESENT: Mike Vraa from Home Line, Larry Nelson from YMCA, Scott Zemke from CASH, Brian Houts from Tree House, Patrick Rowan from PRISM, Judy Reckner from Kids Care Connection and Laurie Possin from Greater Minneapolis Daycare. Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order February 19, 2004 at 7:04 p.m. 2. CONSENT AGENDA A. Approval of the December 18, 2003 HRA Meeting Minutes and the January 22, 2004 Joint HRA and City Council Meeting Minutes. B. Plymouth Towne Square - Accept monthly housing reports. MOTION by Commissioner Michlitsch, seconded by Commissioner Hibbard, approving the Consent Agenda items. Vote. 5 Ayes. Motion approved unanimously. Housing Manager Barnes indicated there would be one addition to the agenda. Commissioner Bildsoe wants to have discussion regarding the sale of the Schmidt Lake Road/Northwest Boulevard site by the City. 3. PUBLIC HEARING A. 2004 Community Development Block Grant Action Plan HRA Specialist Jones gave a brief overview of the Community Development Block grant CDBG) Program for 2004. She said HUD has allocated $317,000 for the 2004 program year, which begins on July 1 st. This amount is a decrease of $7,000 from the 2003 allocation. Plymouth Housing and Redevelopment Authority February 19, 2004 Page 2 HRA Specialist Jones stated the goals of all activities in the 2003 Action Plan would be met prior to June 30, 2004. She said staff expects there will be unexpended funds remaining in the TRAILS budget so only $2,000 is being allocated to that activity for 2004. HRA Specialist Jones explained the staff funding recommendations for City programs including First Time Homebuyer, Housing Rehabilitation, Affordable Housing Development and CDBG Administration. She said that over the past two years program income has averaged $47,795 for First Time Homebuyer and $81,975 for Housing Rehabilitation. Staff does not expect this trend to continue and are anticipating only $25,000 of program income for both programs in 2004. Based on the amount of $317,000 staff is recommending $120,000 for the Housing Rehabilitation Loan Program, $125,000 for the First Time Homebuyer Loan Program, $2,000 for TRAILS, and $25,000 for CDBG Administration. She said no funding is being recommended for Affordable Housing Development as that fund has a carry over of $20,000. HRA Specialist Jones said that CDBG regulations limit the amount of funding which can be allocated to public services. Currently, the regulations state the funding needs to be limited to 15% of the total allocation ($317,000), plus 15% of the previous year's program income. She said that staff is recommending funding totaling $47,000 for Social Services, including the TRAILS program. According to HRA Specialist Jones twelve applications were mailed to social service agencies and six agencies returned the applications. The total amount requested was $67,000. Five agencies will be funded at the minimum amount requested and Family Hope Services at 25% of their minimum request based on their ranking compared to the other public services. HRA Specialist Jones stated that funding for GMDCA is $10,000, Home Line $7,500, CASH $13,000, YMCA $8,000, PRISM Elder Express $3,500, and Family Hope Services $3,000. Chair Henderson opened the Public Hearing. Scott Zemke, representing Community Action for Suburban Hennepin County, thanked the City for the ongoing support of their program. He said CASH enjoys the partnership they have with the City. He said they work with first time homebuyers, foreclosure prevention, and reverse mortgage assistance. Larry Nelson, representing YMCA, said he works with Point Northwest, which is part of the Northwest YMCA in New Hope. He said they provide 24-hour crisis intervention for youth and families, with emphasis on run -away youth. They provide temporary shelter for youth, housing for older youth ages 16-20, and street outreach throughout the Northwest Hennepin County area. They work closely with Plymouth schools and with the Plymouth Police Department Commissioner Ludovissie asked how Point Northwest works in terms of time and money spent in Plymouth versus other cities. Mr. Nelson replied the amount is based on the need at the time. He said they served 24 youth and their families from this area last year. Brooklyn Park has the largest number of clients. Mike Vraa represented Home Line, which is a tenant hotline serving tenants with legal questions concerning landlord or tenant issues. He said they have received ongoing funding in Plymouth for three years and appreciate the assistance. Housing Manager Barnes asked him to give the Board an overview of Home Line's other activities. Mr. Vraa replied that Home Line actually Plymouth Housing and Redevelopment Authority February 19, 2004 Page 3 wears two hats. One is the tenant hotline and the other is focused on tenant organizing which has to do with the preservation of subsidized federal housing. One of their primary concerns is to convince owners to continue providing subsidized housing. Brian Houts represented Family Hope Services. He is the Program Director for Treehouse Youth Outreach and stated that they are very grateful for the funding they have received in the past. He said they are committed to long-term relationships with kids and families and gave an example of a family situation that they work with. Mr. Houts asked how it was determined Family Hope Services would receive $3,000 rather than the $12,000 they requested. Housing Manager Barnes said the amount of Federal dollars the City receives fluctuates and this year 7,000 has been cut from the budget by HUD. Staff uses certain criteria based on various factors to score the applicants and then determines funding recommendations based on the applicants ranking. Mr. Houts also said he would like to know what their funding has been in the past. Commissioner Hibbard asked if the funding has to do with the amount of people served in the community. Housing Manager Barnes replied that is part of the criteria used. Mr. Houts said they have plans to build a Treehouse in Plymouth within the next two years and that they work more closely with small numbers of kids rather than large numbers. Commissioner Bildsoe said he was disappointed with the amount of funding recommended, especially since they are building a facility in Plymouth. Pat Rowan represented PRISM Elder Express. He thanked the HRA for their continued funding and said a new demographic has been added to their program. They are now operating a transportation service on Sundays and take seniors to Sunday church services. Chair Henderson thanked them all for coming and closed the public hearing. Commissioner Ludovissie said he feels staff does a good job evaluating each group and he is pleased to be able to help them with financial assistance. MOTION by Commissioner Bildsoe, seconded by Commissioner Hibbard, adopting Resolution 2004-01 recommending that the City Council adopt the 2004 CDBG program funding as recommended by staff. Vote. 5 Ayes. Motion approved unanimously. 4. NEW BUSINESS A. Revision to the Plymouth HRA First Time Homebuyer and Rehabilitation Loan program guidelines Housing Manager Barnes stated that the First Time Homebuyer and Rehabilitation Loan guidebooks were revised in 2003 and staff is recommending additional changes for 2004. The equity contribution is one change being proposed for the Rehabilitation Loan Program. Housing Manager Barnes explained how the loan -to -value ratio works. The homeowner will now be required, if they have more than 20% of equity in their home, to become a partner in the project. Staff is proposing that if the applicant has more than 20% equity in their home they Plymouth Housing and Redevelopment Authority February 19, 2004 Page 4 contribute a portion of that equity up to 20%. Then the HRA will match the dollars up to 20,000. The second change is to the foreclosure statement. There has not been any language regarding applicants who have had a foreclosure in the past and staff felt it should be in writing. The new requirement will state that if an applicant had a foreclosure within the previous five years the applicant would be denied. They may be eligible after the five-year time period if they have re- established their credit rating. The third item relates to the total amount of assistance a resident may receive from the HRA. Staff is proposing to limit the total amount of assistance from all of the HRA programs to 30,000. This will limit the HRA's financial exposure in any one property. For the First Time Homebuyer Loan Program, staff is proposing to change the loan terms. Currently the Program offers a zero -interest loan that is forgivable after 30 years. Staff is proposing that it no longer be a forgivable loan. The loan would need to be paid back at the end of 30 years, if the home is sold or the title is transferred, if the home ceases to be the homeowner's principle place of residence or if there is a default on the HRA mortgage. Housing Manager Barnes stated that this proposal is very consistent with the State of Minnesota's programs. Commissioner Ludovissie asked what happens if the amount of equity in the home is not enough to cover the 1 st mortgage and the HRA's mortgage when they go to sell their home? Housing Manager Barnes said staff has built a provision into the proposal that allows staff to evaluate cases with extenuating circumstances and the Executive Director could make a final decision. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to revise the policies of the HRA Housing Rehabilitation and First Time Homebuyer Loan Program Procedural Guides. Vote. 5 Ayes. Motion approved unanimously. B. Kids Care Connection Housing Manager Barnes explained that Kids Care Connection was a new CDBG Public Service applicant last year. Being new to the CDBG funding, they are held to different standards than an agency that has been a past recipient of CDBG dollars. In 2003, Kids Care Connection proposed to add additional slots for children to their program, and requested $4,000. After budget cuts, which hurt the daycare industry, they asked to revise their application because they couldn't take on new kids. HUD denied the request because Kids Care was not creating a new service nor helping additional people. Housing Manager Barnes said staff feels that Kids Care is doing the right thing in providing childcare so parents can work which makes for more stable families. Housing Manager Barnes said staff looked at other funds that could be used to help Kids Care and honor the commitment. Housing Manager Barnes stated there are some funds available within the 2004 General Fund budget that could be allocated. Staff recommended switching the 4,000 from CDBG funds to the General Fund. Housing Manager Barnes explained that there are two resolutions. The first resolution would uncommit CDBG dollars, and the second resolution would commit the funds from the HRA General Fund. Plymouth Housing and Redevelopment Authority February 19, 2004 Page 5 Chair Henderson asked what would happen to the uncommitted funds. The $4,000 would go back into the CDBG Development account. Chair Henderson asked if the $4,000 could go back into Public Service Activities. Housing Manager Barnes said they could be used for an additional social service. Commissioner Bildsoe suggested committing the $4,000 into the Public Services Activity to be used for Family Hope Services. MOTION by Commissioner Hibbard, seconded by Commissioner Michlitsch, approving Resolution 2004-03, providing a recommendation to the City Council that the $4,000 in 2003 CDBG funds committed to Kids Care Connection be uncommitted and recommitted to the 2003 CDBG funded Public Service Activity to assist Family Hope Services. Vote. 5 Ayes. Motion approved unanimously. Judy Reckner, Director of Kids Care Connection, said she is glad the money will be allocated to someone who can use it appropriately. She said when they got onto the program the intent was to help support families who are on Hennepin County Child Care subsidy who are struggling to make payments. She said Kids Care Connection is very pleased for the help they are receiving and the money will be used for co -pays to assist with tuition for families. The co -pay system is run through Hennepin County but used for children in Plymouth MOTION by Commissioner Bildsoe, seconded by Commissioner Ludovissie, approving Resolution 2004-04, committing $4,000 to Kids Care Connection from the HRA's General Fund. Vote. 5 Ayes. Motion approved unanimously. Laurie Possin from Greater Minneapolis Daycare introduced herself and said they also use scholarship dollars for daycare and would contact Kids Care Connection to possibly partner with them. Housing Manager Barnes told her that the funding amount listed in the report for Greater Minneapolis Daycare was approved. C. Quest Affordable Housing Development Housing Manager Barnes said Quest Development approached staff regarding a .7 -acre parcel of vacant land they owned in Plymouth and were interested in constructing an affordable housing development on the property. The piece of land has a large wetland in the middle of the site. The buildable portion is located on the western edge of the property and would accommodate 3-4 units. Housing Manager Barnes stated that staff met with Quest Development and the Builders Outreach Foundation, which is the charity arm of the Builders Association of the Twin Cities. Housing Manager Barnes stated the reason for the HRA to acquire the property is so that the HRA can place restrictive covenants on the properties. He continued by providing information on how the partnership would be structured and what roles each entity would have. Quest Development is requesting the HRA to preliminarily commit $125,000 to the project and enter into a purchase agreement with them that would commit the HRA to buying the land. Plymouth Housing and Redevelopment Authority February 19, 2004 Page 6 Housing Manager Barnes said $125,000 would come from the Affordable Housing Reserve Account, which has a balance of $180,484.07 available in uncommitted funds. Chair Henderson commented that Quest Development is the company that Commissioner Ludovissie works for. Commissioner Ludovissie stated that he would be abstaining from any voting on this project. He stated that Quest does residential development and commercial development, which he is involved in. Quest began in 1986 and knows the area well and is committed to do more for affordable housing. Commissioner Bildsoe questioned whether the project would be a good investment of HRA dollars and suggested the money could possibly be spent differently. He questioned whether the number of persons served would be in proportion to the dollars spent. Housing Manager Barnes said when these projects come up; staff evaluates more than just the initial funding contribution. Because there would be resale restrictions on the units, there is a strong potential for subsequent owners to be assisted. Commissioner Bildsoe inquired about using the $125,000 to buy down rent for 30 families. Commissioner Hibbard commented about the mission of the HRA. She said that if you can make four homes affordable using $125,000. It would be an achievement in Plymouth. Discussion occurred regarding how to get the most out of the dollars we have. Housing Manager Barnes responded to Commissioner Bildsoe and said if it is used for four homes it is a one-time commitment and gets the project done. If the HRA chooses to use the funds for rental assistance they would only be assisting households for a short time because there is no ongoing funding set- aside for this type of program. Commissioner Bildsoe asked if the $125,000 price for the land could be negotiated. Housing Manager Barnes said staff could discuss this with Quest. Chair Henderson asked if this would be the only investment necessary for this project. Housing Manager Barnes said he doesn't anticipate the HRA contributing more than the $125,000 to the project. Chair Henderson commented that the amount per owner would be equivalent to what is provided by the First Time Homebuyers program. Commissioner Hibbard asked if wording could be added to the motion that indicates the contribution is preliminary. Housing Manager Barnes suggested a change to the motion. MOTION by Commissioner Bildsoe, seconded by Commissioner Hibbard, approving setting aside $125,000 from the Affordable Housing Reserve Account of the HRA's General Fund for the development of the Quest site and request staff to enter into negotiations with Quest Development. Vote. 4 Ayes. Commissioner Ludovissie abstained. Motion approved. 4D. City owned property Housing Manager Barnes stated that the City Council set the public hearing for discussion of the sale of the City owned property at Schmidt Lake Road and Northwest Boulevard for March 9th and staff has been directed to draft an RFP. Commissioner Bildsoe talked about the joint City Council/HRA meeting, on January 22, 2004, reflecting his personal opinion. He felt the outcome Plymouth Housing and Redevelopment Authority February 19, 2004 Page 7 was different than he anticipated and thought the Council members would discuss the proposal following the meeting, which did not happen. Commissioner Bildsoe said he was interested in finding out what the other HRA members opinions were of the meeting. Commissioner Bildsoe also stated that the City is facing issues with funding for road projects and he is not sure that it wouldn't be in the best interest of all persons in the City of Plymouth that the money from the sale of the property be used for road improvements. Chair Henderson also indicated that she felt there was a need for road improvements and selling of the property at full market value was possibly a way the City could fund roads. Commissioner Hibbard feels we should seize the opportunity to provide affordable housing. Chair Henderson said that if there is not a chance we can compete with the RFP's then perhaps we should not try. Commissioner Bildsoe agreed. Chair Henderson asked what would occur at the Public Hearing. Housing Manager Barnes explained how the Public Hearing will work. The City's Charter dictates that whenever City owned real estate is sold a public hearing be held. Residents are being notified beyond the usual 750 ft. area to include neighborhoods to the east and the south. The question at the public hearing will be whether the City should sell the property or not. The second thing that will be brought to the Council will be a draft of the request for proposal to solicit their comments about what type of criteria the Council wants to include in the RFP. Housing Manager Barnes said they want to look at all the opportunities the City may have. Housing Manager Barnes said if the City feels the time is right to sell the property the Council will need to determine what the best use of the money would be. 6. OTHER BUSINESS Commissioner Michlitsch announced that he is retiring at the end of March after serving five years on the HRA Board. 7. ADJOURNMENT Meeting adjourned at 9:00 p.m. PIRA/Minutes/021904