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.
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February 19, 2004
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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
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February 19, 2004
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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
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February 19, 2004
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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.
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February 19, 2004
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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.
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February 19, 2004
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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
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February 19, 2004
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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