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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 04-23-2009APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY April 23, 2009 PRESENT: Chairman Jeff Kulaszewicz, Commissioners Steve Ludovisse, 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 1. CALL TO ORDER Chairman Kulaszewicz called the Plymouth Housing and Redevelopment Authority meeting to order at 7:05 P.M. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from March 26, 2009. B. Plymouth Towne Square. Accept monthly housing reports. C. Vicksburg Crossing. Accept monthly housing reports. MOTION by Commissioner Caryotakis, seconded by Commissioner Ludovissie to approve the consent agenda with a correction made to the March 26, 2009 minutes changing Chairman of record to Jeff Kulaszewicz and Commissioner Steve Ludovissie. Vote. 4 Ayes. MOTION approved unanimously. 3. NEW BUSINESS A. HRA First Time Home Buyer and Rehabilitation Programs. Review maximum combined loan/grant amount policy. Housing Program Manager Barnes gave an overview of the First Time Home Buyer and Rehabilitation Loan staff report. There were no objections by Board members to maintain the 30,000 cumulative dollar amount that any one property owner should receive from the HRA. The HRA confirmed that all loans and grants from the HRA shall be included when calculating the total amount provided to any one property owner. Commissioner Caryotakis motioned to accept the recommendation of staff. Ms. Henneman asked if she could participate in the discussion at this point. Commissioner Ludovissie asked her to introduce herself for the record. She did so and briefly explained her history with the HRA staff and its programs. Chairman Kulaszewicz said that we are currently discussing program policy parameters for all participants, not related just to her request before the Board. Executive Director Juetten noted the $30,000 maximum per participant is referenced Approved Plymouth Housing and Redevelopment Authority Minutes April 23, 2009 Page 2 in the program materials. Chairman Kulaszewicz also referred to the $30,000 maximum which is of record and said that this is the only matter before the Board at this time. MOTION by Chairman Kulaszewicz, seconded by Commissioner Miller to accept the staff recommendation and to direct staff to restate this policy in a consistent manner in all program materials. Vote. 4 Ayes. MOTION approved unanimously. Commissioner Miller remarked on the qualification guidelines of the HARP/HASP programs. Commissioner Caryotakis asked Commissioner Miller, in light of the current real estate situation, if the HRA would be required to subordinate its loans to HARP/HASP lenders. No, according to Commissioner Miller, but the borrower may not qualify under that scenario. Housing Program Manager Barnes asked for a motion to direct staff to insert language in the program which addresses subordination when working with those HART/HARP applicants. Executive Director Juetten asked for some clarification on this matter to be brought back to the Board for consideration at a later meeting, as any changes would require approval by the Board. It was discussed and decided that more information is required in order to make a measured and prudent policy decision. Ms. Henneman asked to participate in the discussion in regards to her particular situation. Chairman Kulaszewicz responded that her situation is not the agenda topic under discussion at this time and she will have the opportunity to address her concerns under item 4(A). 4. OLD BUSINESS A. Plymouth HRA Rehab Program. Update on Henneman project. Executive Director Juetten presented an overview of the staff report and an update on the file status. Once the Board accepts or rejects the staff report, the Board must decide if under an exemption, Ms. Henneman might be eligible for an additional Emergency Rehab Grant of up to 5,000 if she can show she is capable of maintaining her home without consistently requiring outside funds in order to perform routine maintenance on an on-going basis. Executive Director Juetten used an example of deferred caulking on windows which may accelerate the need for new windows. Housing Program Manager Barnes said that life safety, heating and cooling systems, energy -efficiency, and lead based paint abatement are priorities of the Rehabilitation program. There has not been a distinction made between capital improvements and emergency repairs. Chairman Kulaszewicz remarked that the goal of the HRA is also to maintain the quality of the housing stock, particularly at the more affordable price points. Commissioner Ludovissie said that the flue liner could be a significant safety issue. Executive Director Juetten said that the flue liner is a priority and had it been identified when the initial inspection was completed in 2000 it would have been included and prioritized within the original scope of work. Commissioner Caryotakis asked if her Hennepin County request covers a different scope of work. Yes, said Ms. Henneman. The exterior of her home is her top priority as well as the water heater, sink, and venting. Chairman Kulaszewic said that he understands there is a net amount of $978.68 on her existing Rehabilitation loan. Executive Director Juetten said she is asking for an additional $5,000 Emergency Rehab Grant which would then reduce the Approved Plymouth Housing and Redevelopment Authority Minutes April 23, 2009 Page 3 amount extended by MHFA, as there would be duplication of work for the flue repair, water heater, sink and faucet. Commissioner Stein asked who coordinates the usage of multiple money sources by an applicant. Housing Program Manager Barnes said that information may not be available unless it is disclosed by the applicant, which it has been by Ms. Henneman. Commissioner Stein asked if the applicant gets to use the funds for anything they wish. Housing Program Manager Barnes responded that the funds must be used for items under the developed scope of work. Housing Program Manager Barnes said this is an unusual situation in that Hennepin County has accepted responsibility for administering this file with Jim Graham being the first line contact for ongoing work. Commissioner Stein asked if the $5,000 being requested is in the form of a grant or a loan. Housing Program Manager Barnes stated we are treating it as a grant request per Ms. Henneman's request. Commissioner Stein suggested that in the future perhaps money for emergency repairs should be considered simply as loan requests with a subsequent application to forgive the loan as a grant, if appropriate. Commissioner Ludovissie inquired if the items presented to the Board by Ms. Henneman were emergency issues and whether they should be considered for emergency grant money. Housing Programs Manager Barnes stated that staff considers a potential system failure as eligible for emergency funds and the applicant must also meet income eligibility requirements. Housing Program Manager Barnes indicated that the water heater had not failed and was not "red tagged" by the utility company. He also stated that the inspection was done about one year ago and if it was an emergency it should have been taken care of when the inspection was completed. Housing Programs Manager Barnes stated that if $5,000 does not cover the entire emergency need, it becomes a loan. He also indicated that applicants, especially seniors, have rejected loan offers because they are only interested in a grant; thereby deciding not to address needed maintenance issues, which subsequently results in a deteriorating structure. Commissioner Ludovissie asked if we are in a position to advance money up to the actual cost of the venting system. Yes, according to Housing Program Manager Barnes, we are but Ms. Henneman does not want a loan, she wants only grant monies. Ms. Henneman explained that her initial request for a loan to paint the house escalated with the discovery of lead based paint. She has been granted the MHFA loan and a scope of work and the bid process can begin in typically short order, according to Housing Program Manager Barnes. Commissioner Stein asked if they are deferred loans. Yes, according to Housing Program Manager Barnes. Commissioner Stein stated that based on the approval by MFHA of the loan, Ms. Henneman is equipped to move forward to meet all her current needs. Commissioner Ludovissie stated that he does not know if Ms. Henneman's request is an emergency, or not. But if it is, the Board should consider the request. One concern of Commissioner Ludovissie was the amount of time that had elapsed since the inspection was completed and that Ms. Henneman has had a considerable amount of time to make any repairs. MOTION by Commissioner Stein, seconded by Commissioner Caryotakis to deny the grant to Ms. Henneman. Vote. 4 Ayes MOTION approved unanimously. Approved Plymouth Housing and Redevelopment Authority Minutes April 23, 2009 Page 4 Housing Program Manager Barnes reported that Hennepin County has granted a reclassification of tax exempt status to the Plymouth HRA for Vicksburg Crossing which may result in an annual savings of $40-50,000 5. ADJOURNMENT MOTION by Chairman Kulaszewicz, without exception, to adjourn. The meeting was adjourned at 8:25 p.m.