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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 03-28-2024APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY MARCH 28, 2024 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Wayne Peterson, James Williams, Joel Spoonheim, Kim Vohs, and Tony Kuechle ABSENT: Commissioner Ronald Kelner STAFF PRESENT: HRA Executive Director Grant Fernelius, Housing Manager Steven Schmidt, Housing Coordinator Shelonda Marie-Alves, Permit Technicians Michelle Bast and Emily Ammentorp OTHERS PRESENT: Mayor Jeffry Wosje, Homes Within Reach Executive Director Brenda Lano-Wolke 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 p.m. 2. PUBLIC FORUM Chair Soderberg opened and closed the Public Forum as there was no one present to speak. 3. APPROVE AGENDA MOTION by Commissioner Williams, seconded by Commissioner Peterson to approve the Agenda. Vote. 6 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approved minutes from February 22, 2024. 4.2. Plymouth Towne Square. Accept Monthly Housing Reports. 4.3. Vicksburg Crossing. Accept Monthly Housing Reports. MOTION by Commissioner Williams, seconded by Commissioner Vohs to approve the Consent Agenda. Vote. 6 Ayes. MOTION passed unanimously. 5. PUBLIC HEARINGS 5.1. Program Year 2024 Community Development Block Grant (CDBG) Annual Action Plan Public Hearing Housing Manager Schmidt gave an overview of the staff report. Commissioner Williams asked for clarification on the allocation. Approved Minutes Plymouth Housing and Redevelopment Authority March 28, 2024 Page 2 Housing Manager Schmidt confirmed that is based on the prior year’s income and does not include the estimated program income. Chair Soderberg opened and closed the Public Hearing as there was no one present to speak. 6. NEW BUSINESS 6.1. Homes Within Reach Presentation HRA Executive Director Fernelius gave an overview of the staff report. Commissioner Peterson asked if the HRA has done other projects over the last 30 years that have not come back or whether this was a unique thing tried in the 90s. HRA Executive Director Fernelius replied it is his understanding that this was a unique, one-off situation. Commissioner Vohs asked the rents at Valor Place. Housing Manager Schmidt replied the rents are about $1,300 or $1,350. Commissioner Williams asked if there is an estimate of the current property values on Garland. HRA Executive Director Fernelius replied he did not have that data as the properties have not been appraised and he did not review the assessment value. Chair Soderberg commented that Zillow shows the value at $400,000. Ms. Lano-Wolke presented information on community land trusts. Commissioner Peterson asked if the organization checks to ensure minimal maintenance is completed on the property. Ms. Lano-Wolke replied they drive by the properties to view the condition and respond to any neighbor complaints. Commissioner Williams asked if approved plans need to be provided for proposed capital improvements and whether those plans need to be approved by the organization. Ms. Lano-Wolke confirmed that is the process, stating this ensures the work is done correctly, and permits are pulled if necessary. She stated this also ensures the home is not over-improved as it would make the home not affordable for the next buyer. Commissioner Williams asked what would occur if someone were to sublease their property. Approved Minutes Plymouth Housing and Redevelopment Authority March 28, 2024 Page 3 Ms. Lano-Wolke replied if someone was renting the property, they would have to resolve the issue to remove the renter. She stated the ground lease is very specific in that renting is not allowed. She continues to review the benefits of shared equity homeownership. She provided more information on the Homes Within Reach currently located in the City of Plymouth. Commissioner Peterson asked if any of the homes are fitted to be accessible, and whether there would be a requirement to keep those homes accessible for the next owner. Ms. Lano-Wolke replied it is not a requirement for the homes to be accessible; some are, and some are not. She stated some homes have been rehabbed to be accessible, and they have worked with other homeowners to install handicap accessible improvements. Commissioner Kuechle asked who completes the underwriting of the income for the new buyer in subsequent sales of the home. Ms. Lano-Wolke replied the organization completes that in-house, following HOME and CDBG guidelines. Commissioner Spoonheim asked and received confirmation that the taxes are based on the total value of the land and home, as would be insurance. He asked for details on the primary funding the organization receives. Ms. Lano-Wolke replied their primary funding is provided by city partners, the Metropolitan Council, Hennepin County, the State of Minnesota, and other grants that may be solicited. She stated the organization also receives some donations. Commissioner Peterson noted donors could provide donations to MN Housing in return for a tax credit. He asked and received confirmation that could be a source of funding for the organization. Ms. Lano-Wolke confirmed that donors can provide donations through that source and specify this use for the funds. Commissioner Vohs commented it was his understanding that if a donation was to be project specific, it would need to be approved through the program. Ms. Lano-Wolke said she has not yet applied for that as it originally seemed the purpose was towards larger rental units. She has since learned that the funds could also be used for all housing purposes. Commissioner Vohs asked if it would be onerous to place a single-family home on the list. Ms. Lano-Wolke replied she is unsure how onerous that process would be but noted that she Approved Minutes Plymouth Housing and Redevelopment Authority March 28, 2024 Page 4 would most likely place the goal of 60 homes on the list rather than one particular home. HRA Executive Director Fernelius informed the HRA that staff is not looking for specific action tonight but is seeking feedback on whether staff should continue to pursue options on a potential land trust partnership. He stated staff could then bring those details back to the HRA for review and a decision. He advised ODC has also expressed interest and therefore could be invited to provide a similar presentation. Commissioner Kuechle commented he agrees with the staff assessment that managing two homes is not a good use of staff resources. He recognized the down payment assistance program and asked what else is available for affordable homeownership. Housing Manager Schmidt reviewed the current available programs of that nature. Commissioner Kuechle stated he likes this idea and the model to keep the home affordable year after year. He stated he would also be comfortable hearing a presentation from ODC. He supported staff continuing to work on this topic. Commissioner Spoonheim echoed that these rentals are not a great use of staff time, and it is important the properties remain affordable. He stated this was one option that looks great, but it would also behoove the HRA to hear more information from similar entities such as ODC or Habitat for Humanity. He noted the main goal is to keep the homes affordable. Commissioner Williams echoed the comments of Commissioner Spoonheim. He stated he would like to review all possible options with a feasibility study comparing the options to ensure they receive the best deal. Chair Soderberg agreed with the previous speakers. She stated there is value in the properties, and she is open to all plans. She wanted to ensure the homes remain affordable and to potentially expand other programing. Commissioner Peterson also agreed. He indicated he would be open to exploring partnerships for other properties in addition to the Garland homes. Commissioner Vohs concurred with the previous comments. He stated perhaps they could have a side-by-side comparison rather than a complete feasibility study in order to compare the options. He said he previously referred clients to Homes Within Reach and only received positive feedback. HRA Executive Director Fernelius commented staff will continue to work with Homes Within Reach and will also follow up with ODC. He specified staff would like to avoid a research project such as a feasibility study, which is why staff reached out to local groups that would be logical partners. He believed this is the path forward and agreed they could schedule presentations in the future to hear more about potential partnerships. He stated staff would like to move on these Approved Minutes Plymouth Housing and Redevelopment Authority March 28, 2024 Page 5 two properties fairly quickly. 7. UPDATES HRA Executive Director Fernelius provided a summary of his written report. 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:08 p.m.