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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 09-25-2008MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY September 25, 2008 PRESENT: Chairman Steve Ludovissie, Commissioners Paul Caryotakis, Penny Hatcher, Jeff Kulaszewicz and Bob Stein ABSENT: None STAFF PRESENT: Housing Program Manager Jim Barnes, HRA Specialist Paula Dorn and Office Support Representative Chele Kovacevick 1. CALL TO ORDER Chairman Ludovissie called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 P.M. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from July 24, 2008. B. Plymouth Towne Square. Accept monthly housing reports. C. Vicksburg Crossing. Accept monthly housing reports. MOTION by Jeff Kulaszewicz, seconded by Commissioner Penny Hatcher to approve the consent agenda. Vote. 5 Ayes. MOTION approved unanimously. 3. Public Hearing A. Section 8 Program. Proposed changes to the PHA Administrative Plan HRA Specialist Dorn gave an overview of the September 16, 2008 staff report. Commissioner Hatcher asked about the actual cost of each background check. HRA Specialist Dorn replied there is none because of the relationship with the Plymouth Police Department which provides the background check at no cost to the HRA. Chairman Ludovissie recommended that criminal checks continue to be done in order to prevent future issues as once criminal behavior has begun it is hard to quickly remove a tenant in an effort to maintain the integrity of the property. Commissioner Caryotakis asked what constitutes a “criminal act. HRA Specialist Dorn replied that it is a conviction, not simply a charge. Commissioner Kulaszewicz asked if a person is held by police but no charges are filed, would this constitute engaging in criminal behavior. HRA Specialist Dorn remarked that a lesser charge will not stand in the tenant’s way if it is not violent in nature unless it demonstrates a pattern of activity such as prostitution or alcoholism. This change is to provide clearer definitions in order to administer the program more uniformly. Commissioner Kulaszewicz asked if the City of Plymouth pays for the housing assistance payments to port-in participants. HRA Specialist Dorn clarified that yes, Plymouth Housing and Redevelopment Authority September 25, 2008 Page 2 we could be paying for an absorbed client and we can use this information to refuse portability. Commissioner Stein asked how we are notified that a person is now residing or intends to reside in our jurisdiction. HRA Specialist Dorn said that the client’s paperwork is forwarded to us by the referring PHA from which they came. Commissioner Stein asked what the composition is of the Resident Advisory Board. HRA Specialist Dorn explained that it is comprised of current Section 8 recipients, of various backgrounds, who are asked once a year for input to the HRA. Commissioner Ludovissie asked if there were any more questions before he opens the public hearing. There were none. Commissioner Ludovissie opened and closed the public hearing as no one was present to speak. He asked if there were any questions from the Board before acting on this request for changes to the Administrative Plan. MOTION by Commissioner Caryotakis, seconded by Commissioner Kulaszewicz to approve changes to the 2009 PHA Administrative Plan. Vote. 5 Ayes. MOTION approved unanimously. 4. 4. New Business A. Vicksburg Crossing Review Marketing Plan Grace Management Representative Boedigheimer was not able to attend per Housing Program Manager Barnes, but he asked her if there was anything she wanted to share with the Board. She said that the residents have reacted very favorably to our new property manager. There have been some minor complaints by residents regarding smoking and pets based on some sensitivities. There are now weekend showings to accommodate prospects who are available only during non working hours. On October 4th there is a Plymouth on Parade tie-in event at the site. All folks on the interest list will be invited to attend. Commissioner Kulaszewicz remarked that he is glad to see some inroads being made into area churches, Automobile Club of America AAA) visits to site and the new energy that has been added to the marketing efforts. Chairman Ludovissie said that he also likes the reporting portion of the staff report as it is a good guide to what efforts are taking place at the marketing level. The price points of the rental market was mentioned again by Chairman Ludovissie and expounded on by Housing Program Manager Barnes. Housing Program Manager Barnes said that based on his research and that of Grace Management employee Barb Peterson, he found that there is not a lot of independent senior living care facilities and those that he does see in the west Metro area are at least 15 years old and that is why he believes there is a price difference and Vicksburg Crossing compares very favorably with other communities of comparable age and amenities. There is one project in Coon Rapids that is way below our rent but is an anomaly and not really in our market area. Housing Program Manager Barnes stated he is excited about Grace Management’s Marketing Representative Paquette’s participation. Plymouth Housing and Redevelopment Authority September 25, 2008 Page 3 Commissioner Hatcher remarked that the AAA presentation that she attended at another building was very informative and well attended and she would recommend it as a marketing tool for Vicksburg Crossing. B. HRA Budget Housing Program Manager Barnes gave an overview of the September 8, 2008 staff report. Housing Programs Manager Barnes indicated that the State Legislature had placed levy limits on Cities this year, however there were some exceptions to the limits and the HRA levy was not including in the legislation. Our 2009 HUD award amount to the HRA is expected to be similar to the 2008 award. The HRA tax levy supporting the CDBG budget for overhead items will remain the same as it was in 2008, which is just under $12,000. The Section 8 budget is tough to anticipate because HUD provides a preliminary budget and then often substitutes a revised budget at a later date. The HRA General Fund anticipates an increase in expenses of $27,000 this year because of increased salary and benefit costs and the loss of the Fox Forest Bond fees we have collected for the past 12 years. Housing Program Manager Barnes explained that we received $30,000 per year from Fox Forest in lieu of the apartment having affordable units that were a bond requirement. Chairman Ludovissie asked about salary increases. Housing Program Manager Barnes replied that staff salaries are primarily controlled by the bargaining unit contracts that the City negotiates. All of the HRA’s staff is actually City employees and they work on HRA activities through a cooperation agreement between the HRA and the City. Chairman Ludovissie remarked that the City basically passes along all increased payroll costs of the HRA staff and the City Council has control over the HRA levies. Chairman Ludovissie commented that the HRA levy has been a sensitive point in the past, as people deal with their tax bills. The levy each year must be administrated prudently and essentially there is a loss of $30,000 which was made up in effect by the levy. Housing Program Manager Barnes remarked that employee benefit costs have risen, as well has PERA required contributions. Only Housing Program Manager Barnes’s salary is essentially paid in full from the HRA General Fund. Housing Specialist Schaffer’s salary is paid out of the CDBG budget. Housing Specialist Dorn and Housing Technician Melillo are funded from the Section 8 budget. Commissioner Caryotakis asked if the cost of these employees is similar to the market value of comparable employees in other parts of the City. Commissioner Kulaszewicz remarked that the cost of these employees is not unlike the market value of comparable employees in the other parts of the city. Chairman Ludovissie said that we need to be as conscientious as possible as government is expected to minimize the tax burden to the citizens. Commissioner Kulaszewicz asked how funding of “new projects” would be accomplished. Housing Program Manager Barnes explained tax increment financing (TIF) versus Reserve Fund versus levy methods as finance tools. Commissioner Kulaszewicz asked if there should be an increase in the Reserve Fund as new projects appear on the horizon. Housing Programs Manager Barnes indicated that the current reserve fund has a little over one million dollars of unrestricted funds available for HRA activities, but reminded the board that they may need to use some of those funds to assist with Vicksburg Crossing. Plymouth Housing and Redevelopment Authority September 25, 2008 Page 4 Commissioner Stein asked if the land the city was going to sell to Tree House would be a possible site for an HRA sponsored project. He asked Housing Program Manager Barnes to find out if the land was sold or donated to Tree House. Housing Program Manager Barnes will research the issue and report back to the Board. Commissioner Kulaszewicz asked if rehabilitation funds might also be available to recipients of the first time home buyer program. Housing Program Manager Barnes said that the Rehabilitation and First Time Home Buyer programs may be used together as long as the combined assistance does not exceed $35,000. He also mentioned that there are rehabilitation programs available to Plymouth residents with no income restrictions. He also mentioned an interest rate buy-down program might address needs where more extensive rehabilitation needs to be completed. The majority of the money would come from the private market (banks) and the HRA would pay for the costs to write-down the interest rate. Housing Program Manager Barnes said he does not want the City to be in the development business. Commissioner Stein asked if the two million dollar reserve fund is there to accumulate, for cash flow, cover unanticipated expenses or for some other purpose. Housing Program Manager Barnes said that 1.1 million dollars is in the HRA General fund and is available to the Board to finance projects or cover current obligations. Commissioner Hatcher asked what is considered “older housing stock” in the housing world. Chairman Ludovissie responded by saying it is typically housing that is going through stages that major systems such as roofs, furnaces and windows need to be replaced. He thought this usually is when a house is 20 – 25 years old. He also indicated that some housing stock would be going through this stage for the second or third time. St. Louis Park’s experience has been very successful as it leveraged HRA funds with private funds to bring millions of dollars of improvements to the city of St. Louis Park. Chairman Ludovissie asked for any more questions. MOTION was made by Commissioner Hatcher, seconded by Commissioner Kulaszewicz to approve the 2009 HRA Budget. Vote. 5 Ayes. MOTION approved unanimously. C. Profit And Loss Report – Vicksburg Crossing Chairman Ludovissie added Item 4C in order to discuss the Profit and Loss report on Vicksburg Crossing, which reflected increases of greater than 30-40%. He asked if Grace Management could generate more specific reports. Housing Program Manager Barnes will ask Grace Management Representative Boedigheimer to run a detailed year-to-date report on those items. Also, in regard to the three units which were built with floor plan styles “E” and “F”, Chairman Ludovissie wondered what is causing these two styles to have relatively high vacancy rate and how that can be overcome. Housing Program Manager Barnes said these units are less desirable and perhaps will not lease-up until the “D” units are all leased. Commissioner Ludovissie wanted to know what could be done, relatively inexpensively, to increase the desirability of those units. Perhaps the adjacent CSM property would be willing to screen rooftop units on their building to improve the view from the higher floors. Plymouth Housing and Redevelopment Authority September 25, 2008 Page 5 5. Adjournment Motion made by Chairman Ludovissie, seconded by Commissioner Kulaszewicz to adjourn. The meeting was adjourned at 8:12 P.M.