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
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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
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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.
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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.