HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-28-2008MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
February 28, 2008
PRESENT: Chairman Steve Ludovissie, Commissioners Jeff Kulaszewicz, Penny Hatcher,
Paul Caryotakis, and Councilmember Bob Stein
STAFF PRESENT: Housing Program Manager Jim Barnes, Housing Specialist Patty Schaffer,
and Office Support Representatives Janice Bergstrom and Chele Kovacevick
Chair Ludovissie called the Plymouth Housing and Redevelopment Authority meeting to order at
7:00 P.M.
Chairman Ludovissie welcomed the new HRA Commissioners.
Housing Manager Barnes said an item regarding a waiver request for the Rehab Grant Program
has been added New Business.
2. CONSENT AGENDA
A. Approve HRA Meeting Minutes from January 28, 2008.
B. Plymouth Towne Square. Accept monthly housing reports.
C. Vicksburg Crossing. Accept monthly housing reports.
Councilmember Stein noted that the City website does not indicate that Vicksburg Crossing is
owned by the City and said it is important to add that information.
MOTION by Commissioner Kulaszewicz, seconded by Commissioner Hatcher, to approve the
consent agenda.
Vote. 5 Ayes. MOTION approved unanimously.
3. PUBLIC HEARING
A. Community Development Block Grant (CDBG). Consider 2008 Action Plan.
Housing Specialist Schaffer gave an overview of the February 5, 2008 staff report.
Chairman Ludovissie opened the public hearing.
Chairman Ludovissie introduced Beth Kodluby, Executive Director for Home Line. Ms.
Kodluby said Home Line is a tenant advocacy hotline which has served Plymouth residents since
1992 by giving needed information to tenants to solve their own rental problems and advise them
of their legal rights. Ms. Kodluby said calls have increased four years in a row and said the
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housing foreclosure issue is impacting renters. She said this is serious because tenants get notice
from the sheriff that they are losing their housing which they have been paying rent for, and have
no idea the landlord is behind in payments. Ms. Kodluby said Home Line operates a housing
program to educate renters before they hit the rental market; she said 60 classes have been
conducted.
Chairman Ludovissie asked about the profile of Home Line's clientele who would be primarily
serviced.
Ms. Kodluby said most callers meet HUD guidelines of low or low income, although there are no
income guidelines for callers. She said the questions are related to 1) repairs, 2) evictions and 3)
security deposit issues.
Councilmember Stein asked how many callers were serviced last year.
Ms. Kodluby responded that in 2006, 200 households were served and there were 120
households served in the first half of 2007. Over the last three years, HOME Line's tenant
hotline has averaged 211 Plymouth callers per year. In 2007 HOME Line expects to assist at
least 215 Plymouth hotline callers, prevent at least 10 evictions in Plymouth, and speak to 5 high
school classes.
Commissioner Caryotakis asked which communities are served by Home Line.
Ms. Kodluby said Home Line serves the entire state with the majority of calls from Minneapolis'
suburbs.
Chairman Ludovissie introduced Ben Bevis, 4203 Boone Avenue N., New Hope MN, Regional
Director for Tree House which serves at risk youth between grades 6 — 12 who are struggling
with social, educational, emotional and family issues. Mr. Bevis said they are currently meeting
at Peace Lutheran Church (C. R. 101 and State Highway 55), and in the last two years have
served 71 teens from the Plymouth area by providing a safe place for them. Mr. Bevis reviewed
the trips, activities and service projects provided by Tree House and said the cost is $1,800 for a
teen to complete the Tree House program.
Commissioner Hatcher asked if these services include life skills and maintaining a house.
Mr. Bevis responded that Tree House staff teaches emphasize character skills, responsibility, and
integrity. He said kids are given the opportunity to participate and plan events, i.e. trips.
Commissioner Hatcher asked if staff works with youth to keep them in school or at their jobs.
Mr. Bevis said their goal is to have these youth be plugged into other organizations, not to be
Tree House dependent.
Chairman Ludovissie introduced Sue Wallace, Grants Coordinator for JVS, a Jewish family and
children service in Minneapolis founded in 1910. Ms. Wallace said services include family and
senior counseling, vocational direction, career development, career counseling services and a
new program for child care assistance. She said the Hennepin County funding is for low to
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February 28, 2008
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moderate income persons who need assistance with educational planning and career counseling
to get off public assistance.
Commissioner Kulaszewicz asked if the requested funds are specific for career counseling.
Ms. Wallace answered affirmatively.
Commissioner Caryotakis asked where the service locations are focused.
Ms. Wallace said the two main locations are Minnetonka and downtown Minneapolis, but JVS
also serves the greater Twin Cities
Commissioner Caryotakis how participants are identified for this program.
Ms. Wallace said persons who are receiving funding through Hennepin County's sliding fee
program are selected. She added that in January there are 102 families in Plymouth using that
program.
Councilmember Stein asked if this is the only service agency providing this service for this
targeted group.
Ms. Wallace responded yes.
Chairman Ludovissie introduced Marcy Harris, representing CAPSH, which serves low to
moderate income persons for the First Time Homebuyer Program, foreclosure prevention, rehab
and reverse mortgages. She said the biggest area of growth has been with foreclosure and they
have added 4 staff. Ms. Harris said HUD reported 300 counseling calls for the year, with 380 for
the first quarter? She said medical emergencies are a main reason people lose housing. Reverse
mortgage requests have been decreasing while FTHB have increased. She said potential first
time homebuyers attend the all day classes and eligibility requirements are stringent.
Chairman Ludovissie asked about potential clients, and if Plymouth would be as likely to use the
programs as inner ring suburbs.
Ms Harris said Plymouth residents could benefit from such programs as mortgage re -negotiations
and the opportunity to work with counsel, such as for budgeting.
Commissioner Kulaszewicz asked about statistics and record keeping.
Ms. Harris said statistics help identify where problems are and statistics are also required by the
City.
Housing Specialist Schaffer added that agencies submit quarterly reports, which the City submits
to HUD to determine where residents are being served and are they meeting goals.
Commissioner Caryotakis asked if financial institutions have been forthcoming in offering
foreclosure assistance.
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Ms. Harris said most notably Bremer Bank has been a good community partner, and some larger
banks are becoming more helpful.
Chairman Ludovissie introduced Elizabeth Johnson, representing PRISM a social service agency
serving Plymouth since 1970. Ms. Johnson said they want to expand the PRISM Express, a
senior ride program to work with low income families also. Ms. Johnson said it is difficult to run
transportation programs due to insurance, liability, gas and increasing demand. She said there
were almost 1,200 rides for Plymouth residents. Ms. Johnson said there were 15,000 medical
rides many coming to West Health
Councilmember Stein asked if there is a charge for the transportation service.
Ms. Johnson said the suggested donation is $5 per ride, and the average donation is $3.50.
Councilmember Stein asked if this service duplicates Dial A Ride.
Housing Manager Barnes responded that the service is the same, and but the need exceeds what
Dial A Ride can handle.
Chairman Ludovissie asked if the ridership in Plymouth is primarily elderly.
Ms. Johnson said the majority are seniors, and there are some low income riders also.
Councilmember Stein asked about the service area and types of services riders use.
Ms. Johnson said Brooklyn Center, Crystal, Robbinsdale, New Hope, Golden Valley and
Plymouth have residents using the service for medical, bank, personal trips, and the beauty shop
with an increasing number of spouse visiting a spouse in a nursing home or hospital. She said
there are calls from children of the aging who have difficulty transporting parents as they have
full time jobs.
Chairman Ludovissie introduced Larry Nelson and Kim O'Grady, YMCA Point Northwest. Mr.
Nelson said they provide services, shelter and housing for runaway youth or youth who might be
homeless or at risk. He said services include 24-hour crisis line, street outreach, short term
shelter, and shelter for older youth who may not be able to go back home. Mr. Nelson said they
work closely with schools and police departments.
Chairman Ludovissie asked about projections for the coming year.
Mr. Nelson said 75-100 is a reasonable estimate. He said the economy is playing a role and that
renters getting displaced causes stress and strain for their kids.
Commissioner Kulaszewicz questioned a previous issue in having a goal and not having statistics
to support.
Housing Specialist Schaffer stated that the YMCA has had a restructuring and now submit
phenomenal records, adding they have already met their goal for 2007.
Councilmember Stein asked where homeless youths are housed.
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Mr. Nelson said licensed, volunteer host homes provide short term housing. A transitional living
program is provided for older kids to get into an apartment where they pay part of the rent and
help to develop independent living skills.
Chairman Ludovissie introduced James Landt, Hammer Residences. Mr. Landt said Hammer
has 31 homes in western suburbs, with 15 located in Plymouth. Mr. Landt said the principle
request is to install a sprinkler system in a house.
Commissioner Kulaszewicz asked if these homes quality as low income housing.
Mr. Landt stated that 98% of Hammer residents are in the low income category.
Chairman Ludovissie closed the public hearing.
Chairman Ludovissie acknowledged that funding has declined over years. He said the HRA staff
works closely with the agencies and he defers a lot of decision making to them.
Commissioner Caryotakis said it is time consuming for recipients and staff to track performance
and assess needs of all the programs.
Councilmember Stein asked why Interfaith Outreach was not funded.
Housing Manager Barnes responded that IFOP did not submit an application. He said they are
funded though the Housing Link 2000 and also receive funding though the City's social service
allocation.
Councilmember Stein said he concurred with Chairman Ludovissie that there is a huge need for
these services and the need is probably going to get worse; he said he assumes staff knows better
how to distribute the funds.
Commissioner Kulaszewicz reiterated staff has done a great job. He said these programs meet a
great need metro wide, and it is important residents of Plymouth are being served.
MOTION by Chairman Ludovissie, seconded by Commissioner Kulaszewicz to approve the
CDBG 2008 action plan.
Vote. 5 Ayes. MOTION approved unanimously.
4. NEW BUSINESS
A. Vicksburg Crossing. Marketing Update.
Housing Manager Barnes reviewed the February 21, 2008 staff report. He said 4 or 5 leases
have been signed, and interest is picking up. Housing Program Manager Barnes said the model
unit would be staged with purchased furniture.
Commissioner Caryotakis asked what is projected for lease up time.
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Housing Manager Barnes said 18 months is projected, and clarified that they did not understand
the impact the for -sale housing market would have on the market rate units. He said recent
seminars have confirmed that the seniors are independent and do not have a need to leave their
single family house. They are not ready to make a reduction in sales prices, have good health
and can wait for the market to rebound. He said 18-24 month stabilization, meaning 95%
occupancy, is now a 3-4 year stabilization period. Housing Program Manager Barnes said if the
current market is still struggling in 2009 they will need to find ways to react and address the debt
service for 2009.
Commissioner Hatcher suggested marketing to parishes with aging populations at churches with
kiosks.
Housing Manager Jim Barnes responded that could be considered.
Commissioner Caryotakis remarked that seniors are reluctant to sell in this market even though
the challenges of home ownership can be burdensome.
Commissioner Hatcher speculated that if a mortgage payment is low or non-existent, some
seniors can afford to let their house sit longer in this slow market.
Chairman Ludovissie said education for seniors discussing selling their home for less in order to
live in an apartment with no home ownership responsibilities and burdens may have some appeal
to seniors.
Housing Manager Barnes said a $15,000 — 20,000 reduction in sale proceeds is an important
portion of their means of supporting themselves in their retirement years; this could be a one year
of income.
Commissioner Caryotakis asked for an estimate on how long it may take to reach stabilization.
Commissioner Kulaszewicz said we are encouraging Grace Management to be aggressive in
their marketing efforts.
Commissioner Caryotakis remarked that to currently allow more affordable housing it would
reduce the amount of rent collected over the long term, but would cut some immediate losses.
Housing Manager Barnes responded that once units are dedicated to affordable status, it can be
very difficult to return them to market rate.
Commissioner Caryotakis speculated that a heavier concentration of affordable units may affect
overall quality of life and general building culture.
Commissioner Kulaszewicz inquired about another open house, as the last one appeared to be
productive.
Housing Manager Barnes said Open Houses are scheduled for April and May, in addition to an
information table at the Yard & Garden Expo.
Councilmember Stein asked if the monument sign indicated that the building was owned by the
Plymouth HRA.
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Housing Manager Barnes responded no.
Councilmember Stein suggested that this was a good marketing strategy and would not give the
perception of a Public Housing facility.
Housing Manager Barnes said he will research this topic. He said Grace Management thought it
might be perceived as a detriment to be owned by a city, however, the focus groups they
conducted indicated City ownership as a positive with reasonable rents and a higher standard of
property maintenance.
Chairman Ludovissie agreed with Councilmember Stein to identify that Vicksburg Crossing is
City owned and operated.
B. HRA Strategic Plan. Discuss update process.
Commissioner Caryotakis found the information interesting and said it would be worthwhile to
review past priorities, the current economic situation, and short term priorities.
Chairman Ludovissie said the citizen interest portion of the survey was helpful, and said he
would support discussion of what would be achievable goals for the HRA Board during the
coming year.
Housing Manager Barnes said the City Manager has asked for an HRA report for City Council,
outlining responsibilities and clarification of how the City and HRA work together.
Discussion followed regarding goals, timing, etc. and it was agreed that the May 29, 2008 and
June 26, 2008 meetings would commence at 6:00 p.m., to allow extra time for discussion of the
HRA Strategic Plan.
C. Future HRA Meeting Dates.
Motion by Chairman Ludovissie, seconded by Commissioner Hatcher, to approve the proposed
HRA meeting dates.
Vote. 5 Ayes. MOTION approved unanimously.
D. Election of Chair, Vice -Chair and Secretary for 2008.
Councilmember Stein nominated Chairman Ludovissie as chairman and Commissioner
Kulaszewicz as vice-chairman. Chairman Ludovissie nominated Councilmember Stein as
secretary.
Vote. 5 Ayes. MOTION approved unanimously.
E. Waiver of Rehab Guidelines
Housing Manager Jim Barnes presented a request of waiver for a Rehab guidelines for a mobile
homeowner whose main water line froze, rendering their bathroom unfit for human occupancy.
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The family income of $27,000 for a family of four exceeded the State guidelines by $3,000. City
of Plymouth rehab guidelines serve households taxed as real property. Housing Program
Manager Barnes said an inspection revealed a well -kept unit that needs a bathroom, water heater,
floors, and windows. He said Interfaith Outreach may participate financially and with some
labor, but the family needs funds for the whole project. Housing Program Manager Barnes asked
if the HRA would waive requirements for this property and said the loan would be filed as a lien
against the mobile home.
Commissioner Kulaszewicz said that there are few qualified rehab applicants applying for the
rehab funds the HRA has available.
Chairman Ludovissie asked the age of the mobile home.
Housing Manager Barnes said it is a 1970 model, under $10,000 in value typically half of the
average value.
Councilmember Stein asked the cost of a new mobile unit.
Housing Program Manager Barnes stated a used mobile home would be $15 — 20,000, new
45,000.
Commissioner Hatcher said she is concerned about setting precedence within the mobile home
park.
Housing Manager Barnes explained that these people are homeless now and this would be a one
time only waiver because of this crisis.
Councilmember Stein said he supports waiving the requirement as this is the type of situation
rehab dollars are meant to be used for; however, he questioned the security of the lien since it
would be on a mobile home which could potentially leave one night.
Housing Manager Barnes said such loans are booked as a loss the year they are issued. He said
these owners have been there 11 years, are stable in the community, and one has a mother living
in Plymouth.
Chairman Ludovissie asked if approval could be structured on a special hardship only to make it
clear that this is a one-time exception. Commissioner Hatcher concurred with this approach.
Housing Manager Barnes said this is the only request which would be considered since the home
is rendered unlivable. If another request comes in we would make it clear that the only reason a
waiver was granted was because the unit had become unlivable.
Councilmember Stein addressed the window upgrade and consequences since the windows are
not required to make it habitable.
Chairman Ludovissie remarked that the intent is good but is concerned about setting a precedent.
Unlivable is a good point but others might be determined to be same/similar condition.
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Commissioner Hatcher remarked that this is a disaster situation when it affects a basic utility, but
she said the windows might not qualify.
Commissioner Kulaszewicz reviewed that we have a rehab program that is funded, and there are
not enough qualified applicants for the funds, if other folks in the mobile home park are
qualified, do we care?
Councilmember Stein restated the fact that it is a mobile piece of equipment and the only tax
base is the park paying real estate taxes.
Housing Manager Barnes added that the mobile home park is an important part of the affordable
home stock.
Commissioner Caryotakis asked if the income limits have been changed to accommodate the
surplus of funds.
Housing Manager Barnes said that could be considered if rehab or first time home buyer
applications continue to languish.
Motion by Chairman Ludovissie, seconded by Commissioner Kulaszewicz. to approve the
waiver of rehab guidelines for a mobile home located at (location).
Chairman Ludovissie restated that this is clearly an identified need that it is a hardship.
Vote. 5 Ayes. MOTION approved unanimously.
61\ 1 I" 190ii'l I OWN I
Motion by Chairman Ludovissie, seconded by Councilmember Stein, to adjourn. The meeting
was adjourned at 9:12 P.M.