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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-23-2009APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY July 23, 2009 PRESENT: Chairman Jeff Kulaszewicz, Commissioners Steve Ludovissie, Bob Stein and David Miller ABSENT: Commissioner Paul Caryotakis STAFF PRESENT: Housing Program Manager Jim Barnes and Office Support Specialist Laurie Lokken OTHERS PRESENT: Grace Management Representative Jody Boedigheimer 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 June 24, 2009. B. Plymouth Towne Square. Accept monthly housing reports. C. Vicksburg Crossing. Accept monthly housing reports. D. Community Development Block Grant Program. Recommend the City Council approve the submission of the Consolidated Annual Performance and Evaluation Report CAPER) for fiscal year 2008. MOTION by Chairman Kulaszewicz, seconded by Commissioner Ludovissie, to approve the consent agenda. Vote. 4 Ayes. MOTION approved unanimously. 3. NEW BUSINESS A. Vicksburg Crossing. Marketing Report. Grace Management Representative Boedigheimer reported that they have eight available units. One of the units is spoken for and there are two prospects for two more; although one of those prospects is taking a unit that's coming available on the 1St of August. She agreed with Chairman Kulaszewicz that they didn't think they would have this many units leased this fast and that the concerted marketing efforts and the inclusion of the new property manager certainly helped at Vicksburg Crossing. Commissioner Stein asked if you have to have two or more to be over 95% occupancy rate. Housing Program Manager Barnes and Grace Management Approved Plymouth Housing and Redevelopment Authority July 23, 2009 Page 2 Representative Boedigheimer said you need a total of three to be occupied to reach the 95% occupancy level. Grace Management Representative Boedigheimer stated that the majority of units remaining are the E units, which have side-by-side bedrooms. We have now moved the model unit to one of the E -style units to better market that type of unit. Commissioner Ludovissie asked if the floor plan is a problem. Grace Management Representative Boedigheimer said that she doesn't know as they just never lease. They are in the middle, smaller at 1,055 square feet and rent for $1,275. The others are almost 1,200 square feet and rent for $1,325. So for $50 more, you could get over 100 more square feet. Commissioner Stein asked if they would consider remodeling these to make one bedroom/den or a large one bedroom. Grace Management Representative Boedigheimer said that in a lot of ways they are like a one bedroom/den because the second bedroom's door is angled, it has a closet in it and the bathroom is right across the hall. Housing Program Manager Barnes asked if it would be beneficial to change out the door to a glass door to provide more of an office/den type feel. Grace Management Representative Boedigheimer said that unit C2s are of that same design with the glass door and that they stay pretty full. The Board agreed to revisit this idea in the future if leasing is still an issue. Commissioner Ludovissie asked if prospective tenants have ever been asked what they like or dislike about the units they've been shown. Grace Management Representative Boedigheimer said they just have had other options but she doesn't know if they have been formally asked. Housing Program Manager Barnes asked if we could ask current residents what it was that they didn't care for about the E units. Commissioner Ludovissie stated that there must be something that people are not comfortable with. Grace Management Representative Boedigheimer responded to Commissioner Ludovissie that the vacant unit has the second bedroom furnished as an office or den with a desk/chair and comfortable reading chair by the window. They may attempt setting up a dining room table as this unit has enough space for that so that it doesn't feel like the table is right in the living room. Grace Management Representative Boedigheimer responded to Chairman Kulaszewicz that she doesn't think that the other units are underpriced. We have experienced occasional vacancies in the other units, too. Economically, we sold out all the smaller one bedroom units and it may be just a matter of what's left. In 2007 we had four people move out and in 2008, eight people moved out. So far in 2009, six people have moved out. Most vacancies occur due to additional care needs. Chairman Kulaszewicz asked if there could be any advertising that could be cut back. Grace Management Representative Boedigheimer said that we are only advertising once a month in Approved Plymouth Housing and Redevelopment Authority July 23, 2009 Page 3 either the Sun Sailor or the Lakeshore Weekly, so we have cut back a little bit. We run an extra ad if we are doing a special event. Grace Management Representative Boedigheimer agreed with Commissioner Ludovissie that there is still turnover but that we will get there. We keep getting traffic and we just need to keep at it. Our next goal would be to have only one or two unoccupied apartments. She agreed with Chairman Kulaszewicz that the closed ratio is pretty good and that it didn't hurt that we added railing to the sidewalk and worked on the pond area. The residents are a lot happier and they enjoy having projects to do. B. Consider policy for requests to amend or waive restrictive covenants. Housing Program Manager Barnes gave an overview of a draft policy statement for requests to amend or waive restrictive covenants. Commissioner Stein asked if the numbered circumstances were meant to stand alone or in conjunction with each other because if item number two is a stand alone statement, it could allow some owners to sell their home without experiencing undue hardships. Chairman Kulaszewicz asked who would pay for this competitive market analysis. Commissioner Stein responded that it would be done by a realtor and is provided free of charge. Housing Program Manager Barnes said that this policy is intended for people that are in some kind of financial trouble and that item number two could be taken out. Commissioner Miller agreed with Commissioner Stein's suggestion to combine item numbers one and two. Commissioner Stein added that it could state "may request an amendment or waiver of the covenants if two of the following circumstances". Chairman Kulaszewicz said to state "under either of the following circumstances" and asked if the property needed to be in foreclosure first. Commissioner Stein and Housing Program Manager Barnes said no. Housing Program Manager Barnes added that in the previous discussion it seemed to be the Board's preference to try to help before foreclosure; however, the difficulty is getting notice before they are going into foreclosure. Commissioner Ludovissie said that the housing market goes in cycles and our purpose is to try to maintain those restrictive covenants in the long term as best we can. We want to be careful about allowing too easy of "outs" for people but that we don't want to drive them into foreclosure and lose interest or equity. Housing Program Manager Barnes said that knowing that the housing market cycle will reverse itself at some point, our overall goal is to maintain the affordability for the 20 -year period that covenants cover. The Board would be better served to go on a case-by-case basis as we may not get that many requests and it gives people guidance of what would be considered by this Board. Approved Plymouth Housing and Redevelopment Authority July 23, 2009 Page 4 Commissioner Ludovissie said that he thought that was our direction and that we wouldn't be so rigid in our policy that we could address every issue; whereby, case-by-case but at the same time there should be some kind of minimum requirements. Housing Program Manager Barnes said that we could get rid of item number two and combine item numbers one and three to have a single statement: "the HRA Board will consider amendments or waivers to restrictive covenants in circumstances that involve foreclosure of the residence, substantial loss of household income or excessive medical expenses". Commissioner Stein suggested to add "or other extenuating circumstances". Housing Program Manager Barnes said that the majority of these restrictive covenants also have first time homebuyer loans on them, so we would put this policy in the First Time Homebuyer Procedural Guide. It's easier to track in one document rather than a separate policy statement. Housing Program Manager Barnes responded to Commissioner Stein that it would be up to the Board whether it would be handled at staff level, by the HRA Executive Director or handled by the Board. Commissioner Ludovissie added that if handled at the staff level, there is the ability to appeal. Housing Program Manager Barnes said that if it is handled at staff level, we would be able to expedite the requests or have the ability to call a special meeting if there was a timing situation, such as, if they came to us late in foreclosure process or had a buyer that was interested. If that were to be the case, we would have the ability for denials to be appealed to the Board. Chairman Kulaszewicz said that in some other circumstances, such as, if a couple both lost their jobs and it is pretty eminent that it will not be too long a time where they're not making house payments or will be in foreclosure, they could get a buyer right away except that our restrictive covenants are in place and will delay their ability to sell. Housing Program Manager Barnes said to keep in mind that we are trying to be proactive on that. We are sending out flyers to first time homebuyers that talk about resources that are available and about our availability to discuss the various resource documents. Commissioner Stein asked that if they're missing a house payment or two and they realize that foreclosure is coming and they decide to sell and the bank agrees to a short sale, does the bank come to us and do we have to agree to that, too. Chairman Kulaszewicz and Housing Program Manager Barnes said that we do not have a say in it. Housing Program Manager Barnes stated that even if a short sale occurred, we would not necessarily get our money back. Chairman Kulaszewicz suggested to move to strike item number two out and then have general guidelines that one of the following circumstances, either item number one or item number three, should be met and then we wouldn't necessarily need that foreclosure notice. Commissioner Stein asked if having to move for a job and having to sell home first would be considered Approved Plymouth Housing and Redevelopment Authority July 23, 2009 Page 5 extenuating circumstances. Commissioner Miller said that should be looked at on a case-by-case basis. Housing Program Manager Barnes responded to Commissioner Miller that the problem with case-by-case is that you are never going to be able to encompass all the possibilities that could come before us. Commissioner Stein asked for a discussion of what would be handled at the staff level. Housing Program Manager Barnes said that if item numbers one and two are combined, staff would be uncomfortable because it falls that far outside of the guidelines that are sitting out there. It's a policy decision where it's in that gray area and we would not make that decision. We would bring that before the Board. Commissioner Stein said that if that is the case, my preference would be to word this pretty narrowly and then say other conditions that the Board would consider. Commissioner Ludovissie said that it would set up a slight roadblock to some kind of easy out and takes away some of that pressure from staff. Chairman Kulaszewicz instructed Housing Program Manager Barnes to change the policy statement as discussed by striking out item number two and adding to end of item number three that "medical expenses or other extenuating circumstances that could be brought before the Board" and to include this policy in whatever materials they choose. MOTION by Commissioner Stein, seconded by Commissioner Ludovissie, to approve the amended policy statement for requests to amend or waive restrictive covenants. Vote. 4 Ayes. MOTION approved unanimously. C. Cancel the August 27, 2009 Plymouth Housing and Redevelopment Authority meeting. MOTION by Commissioner Miller, seconded by Commissioner Stein, to cancel the August 27, 2009 Plymouth Housing and Redevelopment Authority meeting. Vote. 4 Ayes. MOTION approved unanimously. 4. ADJOURNMENT MOTION by Chair Kulaszewicz to adjourn the meeting at 7:35 p.m. without exception. Vote. 4 Ayes. MOTION approved unanimously.