HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 03-26-2009APPROVED MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
March 26, 2009
PRESENT: Chairman Jeff Kulszewicz, Commissioners Steve Ludovissie, Bob Stein, Paul
Caryotakis, and David Miller
STAFF PRESENT: Executive Director Steve Juetten, Housing Program Manager Jim Barnes
and Office Support Representative Chele Kovacevick
OTHERS PRESENT: Karen Henneman & Grace Management Representative Jody
Boedigheimer
1. CALL TO ORDER
Chairman Ludovissie called the Plymouth Housing and Redevelopment Authority meeting to
order at 7:03P.M.
Housing Program Manager Barnes asked the Board to add an agenda item noted as 3D -Change
of meeting dates for May and June HRA meetings.
2. CONSENT AGENDA
A. Approve HRA Meeting Minutes from February 26, 2009.
B. Plymouth Towne Square. Accept monthly housing reports.
C. Vicksburg Crossing. Accept monthly housing reports.
MOTION by Commissioner Ludovissie, seconded by Commissioner Stein to approve the
consent agenda.
Vote. 4 Ayes. MOTION approved unanimously.
3. NEW BUSINESS
A. Plymouth HRA Rehabilitation Program. Request from Karen Henneman.
Executive Director Steve Juetten gave an overview of the March 18, 2009 staff report. He also
presented an addendum of information including an application which was provided by Ms.
Henneman after the meeting packets had been prepared. Ms. Henneman said she had calculated
a different total of her remaining loan. According to her, there remains $2,453 before she
reaches the $30,000 ceiling.
Commissioner Stein asked her to state her address for the record. Ms. Henneman stated she lives
at 17925 24th Avenue North, Plymouth, MN 55427. Chairman Kulaszewicz asked her if she is
able to maintain her property. Ms. Henneman said she has never missed a payment and has no
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unpaid late fees. Commissioner Ludovissie asked her what kind of expenses she charges to her
US Bank credit card. He asked if insurance, utilities, and medical expenses are also paid on that
card. Ms. Henneman replied affirmatively. Chairman Kulaszewicz stated that in effect, her
credit card balance increases monthly by roughly $50. Commissioner Stein asked how long she
has owned the property. Ms. Henneman replied 13 years. She added that she is hesitant to
refinance because of the many fees involved. Commissioner Ludovissie asked what the estimate
is to replace the water heater. Ms. Henneman stated she checked on material prices and found
approximately $600-$700 for the water heater, and the liner is another $1,000 and does not
include any labor costs for installation. She added the power vent will require some
modifications which would likely add additional expense.
Executive Director Juetten remarked that even with the balance available to her, Ms. Henneman
doesn't have enough to finance the cost of this project. He stated Ms. Henneman is going in the
negative on a monthly basis even though she makes it up once a year when she applies her
property tax refund to the balance due on the US Bank card. He added Ms. Henneman is
applying for a $5,000 grant to augment Hennepin County's loan. Executive Director Juetten said
he would only consider the repair of the water heater system and the kitchen sink repair is not on
the table at this time. Chairman Kulaszewicz asked how much it would cost to get the water
heater to an acceptable level of operation. Housing Program Manager Barnes said that an
inspection is done on all subject homes before any money is extended. He added that HRA
guidelines are applied first to see if the applicant is considered qualified before a site visit is
scheduled.
Commissioner Stein asked if loan repayment amounts are reflected in her monthly payments.
Housing Program Manager Barnes replied no, the HRA loans do not require repayment unless
the property is sold or the borrower does not reside in the property. The rehab loan will begin
being forgiven at the end of the 10th year of the loan. He explained that the $1,700 unspent to
date could be applied only to the original scope of work, so that may not be released for the
water heater repair. Instead, that amount could be rolled into a grant, if a grant is extended.
Housing Program Manager Barnes said we would prioritize life and health safety issues to
determine where the monies should be applied.
Commissioner Kulaszewicz asked Ms. Henneman if she is currently working with Hennepin
County on another Minnesota Housing Finance Agency (MHFA) loan. Ms. Henneman
responded affirmatively. Chairman Kulaszewicz asked her how she intended to use those funds.
Executive Director Juetten said she appears to qualify for grant funds if all confirming
documentation is received.
Commissioner Ludovissie stated that he is concerned that there may be some other maintenance -
related issues at the property that the Board may not be aware of. He said we should only be
lending money for a home that meets other minimum housing quality standards (HQS).
Commissioner Stein expressed that he is not interested in making an exception to the $30,000 per
household borrowing limit, but would rather entertain changing the program limits as a whole
instead, if a change is warranted. Executive Director Juetten said that perhaps a home with
30,000 of outside money reinvested into it, with issues still outstanding, may not be worthy of
additional funds.
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Ms. Henneman asked if First Time Home Buyer (FTHB) and Rehabilitation monies are separate
when arriving at the maximum $30,000 limit. Housing Program Manager Barnes replied no, it's
the aggregate of both amounts extended by the Plymouth Housing and Redevelopment Authority
for all of its programs. Commissioner Stein asked if this fund is exhausted completely at the end
of each year. Housing Program Manager Barnes replied that most years the funds are expended.
Ms. Henneman said that she has been given an amount of $600 still available to her according to
Jim Graham with Hennepin County. Commissioner Stein said that issue will need to be worked
out with HRA staff. Housing Program Manager Barnes said the First Time Home Buyer
Program provides for forgiving the balance after 20 years, at a rate of 10% per year. The
Rehabilitation Loans begin to decline by 10% each year after the 10th year. He added that the
next step is to have Ms. Henneman complete all required documentation related to her
application and then a staff person will visit the property to do an assessment and review the
scope of work. Commissioner Ludovissie added that these programs are intended to supplement
the owner's resources, not wholly subsidize a property.
MOTION by Commissioner Stein, seconded by David Miller to have the HRA staff prepare a
memo on the actual dollar amount still outstanding on Ms. Henneman's loan and to explore
whether the $30,000 maximum loan amount should be adjusted or not based on changes in the
market.
Vote. 4 Ayes. Motion approved unanimously.
B. Vicksburg Crossing. Marketing Report.
Grace Management Representative Boedigheimer presented the marketing activity at Vicksburg
Crossing. She stated the 80-82 unit occupancy rate seems to be the ceiling that the property can
not seem to break through. She said that hopefully the Yard and Garden Expo next week will
generate some interest in the property. Grace Management Representative Boedigheimer stated
that one tenant has recently been asked to leave so the unit will be vacant for one month.
Commissioner Ludovissie asked how the ATV was taken from the site. Housing Program
Manager Barnes said he will address that question in item 3C.
Commissioner Stein asked where we are for occupancy in comparison to last year at this time.
Grace Management Representative Boedigheimer said that last year at this time we had moved
from 67 occupied units to79 with a goal of 90 occupied units by year end. Chairman
Kulaszewicz asked if any additional furnishings are needed to show the property. Grace
Management Representative Boedigheimer responded that a desk and chair would be helpful in
showing the model unit and would be very affordable to purchase.
C. Vicksburg Crossing. Consider bids for improvements.
Housing Program Manager Barnes provided an overview of the March 16, 2009 staff report.
Commissioner Miller asked which material will have the longest life expectancy. Housing
Program Manager Barnes said that both contractors said the steel would be the toughest, but the
aluminum product alternative was provided because it was a better visual fit with the current
railing system. Chairman Kulaszewicz noted that these handrails are not required by code, but
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given the age of the residents, it may be a prudent move to have them installed. Chairman
Kulaszewicz recommended that the board go with the lower bid by Loftus with perhaps the
addition of the "X" feature installed at each landing, which tie architecturally into the existing
railing style. Commissioner Ludovissie said he felt the addition of the "X" feature does not
represent a need, but rather a want.
Motion by Chairman Kulaszewicz, seconded by Commissioner Stein to accept the lower bid
provided by Loftus without the additional "X" feature.
Vote. 4 Ayes. .Motion approved unanimously.
According to Housing Program Manager Barnes there has been a second break-in at the property
by an individual wearing a ski mask and stole an ATV owned by the HRA. It was driven out of
the garage and into a nearby dead end street where Housing Program Manager Barnes assumed
there was a trailer or truck waiting to load the vehicle. The Police have no leads, but there is
insurance to cover the loss after the $1,000 deductable is met. A less tempting vehicle will be
purchased to replace it, perhaps a riding mower style with limited speed capacity. Security has
been discussed with Mark Jones of the City of Plymouth Facilities staff. There have been two
options outlined and presented in the attached packet. The insurance adjuster believes the
insurance coverage will cover the cost of repairing the front door which was also damaged in the
break-in. Additional security cameras will be bid to improve on site recording of facility
activity. The Police have also done a security audit and they will provide the results to Housing
Program Manager Barnes when it is complete. Chairman Kulaszewicz asked if option two may
provide a better deterrent rather than option one.
Grace Management Representative Boedigheimer mentioned that the cameras have obviously
not deterred the thieves. Housing Program Manager Barnes wants to provide an atmosphere that
enables residents to feel safe in their building. He also added there is lighting on the building but
all the adjacent businesses shut down and turn some of their lights off after midnight. Grace
Management Representative Boedigheimer said two people have entered the garage on separate
occasions but those incidents were reported promptly to on-site management. She added that
there have been no break-ins at Plymouth Towne Square. Commissioner Ludovissie said that
good hardware is an important deterrent to crime.
Motion by Commissioner Ludovissie, seconded by Commissioner Miller to adopt option one.
Vote. 4 Ayes. Motion approved unanimously.
D. Change meeting dates
Housing Program Manager Barnes requested that the HRA meetings for May and June be moved
to the fourth Wednesday.
Approved unanimously.
4. ADJOURNMENT
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MOTION by Commissioner Ludovissie, seconded by Commissioner Stein to adjourn.
Vote. 4 Ayes. MOTION approved unanimously. The meeting was adjourned at 8:45 p.m.