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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-28-1974AGENDA PLYV" DOUSING ADVISORY COMMITTFE THURSDAY# FEBRUARY 2$, 1974 70,30 P.R. WHERE: Council Chambers Public Works Building 14900 23rd Avenue North Plymouth, Minnescta 55441 1. Call to Order by Chairman - Introduction of Members - Review Committee Charge 2. Working Definitions 3. Review Existing City Housing Policy and "Goals, Objectives and Criteria" 4. federal and State Housing Regulations and Laws S. Review Draft Study Outline 6. Establish Future Meeting Schedule 7.. Adjournment Roger Barnes, Chairman Plymouth Housing Advisory Committee Martin W. Overhiser and Milt Dale, Project Coordinators Attachments: 1) Working Definitions 2) Goals, Objectives and Criteri?. 3) Study Outline PLYMOUTH HOUSING ADVISORY COMMITTEE February 28, 1974 The first meeting of the Plymouth Housing Committee was called to order by Chairman Roger Barnes at 7:40 p.m. in the Council Chambers of the Public Worts Wilding, 14900 23rd Avenue North. MEMBERS- PRESENT: Chai mmn Barnes, Mrs. Ruth Ault, James Eide, Mrs. Barbara Edwards,. Delano Erickson, William Leeper, Ronald RaschkL, G. H. "Gerry" Neils MEMBERS ABSENT: Harold Bakke, William Rova, and Howard Hunt ALSSO PRESENT: Mayor Al Hilde, John Doyle - Housing Staff Metropolitan Council 40 STAFF PRESENT: Martin Overhiser, Milt Dale all .kt,!. dead .by. Chaiman. Introduction of Members - Review Committee Charge Mayor Al Hilde introduced himself and asked that each of %".%he members and the staff present introduce themselves and give a brief background description. Mayor Hilde opened the discussion by mentioning that the lack of housing has created serious problems for a large percentage of our population both locally and on the State and Federal levels. A few years ago only 40-50% of the population could afford to buy a new home, while today this percentage is even less. Reasons for the inability of homeownership are cost increases such as materials, public utilities, labor and other cost factors. Most of the moderate income housing has been built in our core cities.,' The reason Jor this.. Mayor Hilde explained, was that suburban: people have resisted low and moderate income housing into their communities. He cited the following reasons for this resistance: 1) Net tax base hat been a disadvantage and tends to raise the taxes for the rest of the population in the community: He cited Coon. Rapids and several other communities in the Anoka area. 2) Class prejudice. Economic reasons, 1..e., the costof new utilities to serve housing. in the suburbs. 4) Lack of mass transit in the suburbs to allow the poor and elderly ready access to entpioyment or the central city. Political ramifications, i.e., low and moderate income housing is often an unpopular political issue. Mayos Hilde did express the belief that there are benefits a community can receive by having low and moderate income mousing in their community. He listed these benefits as follows: Hosing Advisory &=itt+ a Minutes ,. 2 - l) Yelps society to spread people out, improves provides learning opportunities for children. 2) Provides housing close or convenient to local February 28, 1974 social interaction, and industries and businesses. 3) Allows communities to receive grants from State and Federal governments by giving them a high rating from social planners with such agencies as the Metropolitan Council who otherwise may prevent a community from receiving these grants. Mayor Hilde then stated that he saw three basic problems with getting housing into Plymouth: 1) The economic constraint imposed by the Federal Government which permits the Federal program to allow housing to be built down south where costs are low but prohibits to a large extent quality housing up north where costs are $6-8,000 per house more expensive. 2) No subsidized housing program now exists due to the housing moratorium. 3) A lack of objectivity in attacking the housing problem, i.e., too much passion involved in approaching the housing problem while a real need exists for a more practical approach. Mayor Hilde requested that if the cermittee had any questions at that time he would attempt to answer those questions and then would leave and allow the committee to get on with its committee functions. Roger Barnes stated that as he understood the charge the committee was to address itself to 'how' to get low and mclerate income housing into Plymouth and not 'why' it would be desirable to h..ve such housing. :-,ayor Hilde answered In the affirmative that this was the Council's charge. Jerry Neils stated that it may be possible that the committee would determine that it would be difficult or impossible to provide low and moderate income housing without the subsidized program, but the committee would still be providing a service by making this determination. He added that Plymouth is becoming a sterile community with only professional and technical people residing within the city, and a need for diversity has become apparent. In his discussions with local industry personnel many of their employees live in communities such as New Hope, Brooklyn Canter, Brooklyn Park or further west such as Buffalo, Rockford, etc. Bill Leeper of the committee wanted to know if the City has any tax delinquent land that could be used for a low and/or moderate income housing project. Martin Overhiaer said this is true; some land coull be available. Roger Barnes expressed the opinion that the committee should be very open I.. its approach, and he wisised to go on record to express his desire that everyone should feel free to express their ideas without feeling they may be inappropriate or not knowledgeable. He would like the committee to be informal and felt that individuals should express their ideas freely. One bit of information he would like would be the total dollar increase change in income levels for low and moderate income families since 1965. Housing Advisory Committee Minutes. 3 - February 28, 1914 iiprking Definitions 7 I FSI Martin Overhiser explained those definitions from the proposed City Zoning Ordinance that would be most usedbby the: Committee In executing its charge. Reviewi Cxistin0 City Housing Policy and "Goals., Objectives andl Criteria"_,_ I 71..Y n i .. i.1 1 ii.nr.. Councilman Neils and Planner Overhiser reviewed.with the Housing Committee the Goals, Objectives and Criteria which have been adopted by the Planning Commission and the City Council. The goal "Suitable Housing Environment" was discussed in detail and specifically Objective #2, "Provide and maintain a variety of quality housing for all levels of income". John Doyle of the Metropolitan Council said that a staffpperson is working on a project that would show where people work by househ d and also where they live. This would determine the mobility of residents within the metro- politan area. Roger Barnes requested that the Met Council make available the 235 and 236 housing guidelines and also the Section 23 guidelines that have been referred to by John Doyl:;. He also asked if the feasibility report on a Plymouth H.R.A. had been written. Councilman Neils stated thatit had not been as -the Council was waiting for the Stat, Legislature to act on its H.R.A. legislation. Bill Leeper wanted to know how complex it would be to get a local H.R.A. established. Martin Overhiser stated it would ".quire Council action, and the State statutes spell out how a municipality is to establish such an agency. This information can be made available to the committee. He also said that the State Housing Finance Aid Act would be made available as would information from the Bloomington H.R.A. to enable the committee to research their efforts. Roger Barnes asked about the City of Plymouth's housing code, and does one exist. He asked if it was a maintenance code such as the St. Louis Park housing code. Martin Overhiser said the City follows the state Building code,but does not have a maintenance code. We will obtain a. copy of the St. Louis Park Housing Code for the committee's review. Federal and State Housing Regulations and Laws John Doyle explained that the Met Council is now working on a development framework which is an attempt to put together all the Met Council policies into one package and to straighten out any inconsistencies that one policy may have with another. In his explanation of Federal and State programs and regulations he said that local municipalities have the final decision on regulations; however, funding is primarily through the Federal and State governments. At the present time the State is filling the void left by the rederal moratorium on housing. The present state program allows mortgage money to be available for fdmilies under $13,000 a year annual income at low interest rates, i.e. approximately 6-3/4%. Some grant money is available for rehabilitation housing. However, this program does not assist low and andehate income families. The State Finance Agency does provide this mortgage money which banks presently don't have available. This money is backed by the F.H.A. Housing Advisory Committee Minutes 4 - February 28, 1974 James Dlugosch, the Exetw tive Director for the Minnesota Housing Finance Agency, might be available to come to a committee meeting and explain the program. John Doyle further explained that the Met Council's role is to advocate a low and moderate income housing balance throughout the metropolitan area. He added that housing rehabilitation is as important as new housing. However, these programs for rehabilitation are not as well developed. Jim Eide stated that in his experience as a real estate broker the 235 and 236 programs were so snarled up in red tape that most builders are scared off of involving themselves in using these financing methods. He believed if a system were developed that would not involve so much red tape, many small builders would enter the low and moderate income housing market. Review Draft Study Outline Roger Barnes wanted the committee to determine what makes housing costs con- tinually rise and do we want to expand the study outline list as originally proposed. These categories and variables include: 1) tooing and subdivision regulations 2. Land cost 3 Assessments 4 Housing and subdivision design 5 Construction and financing cost 6 Private development incentives and controls Councilman Neils explatned that the Council was.at a dead end in regard to how the procedures and mechanics of the program can be developed to implement providing those people that need low and moderate income housing with this housing. This in his estimation was the crux of the issue. Martin Overhiser also believed that a problem existed in terms of the second, third and later resales of low and moderate cost housing in terms of whether or not "windfall" profits may not result. Jim Eide expressed the opinion that he has noticed that the cost of a $11':,000 house has, in the space of 2h years, gone up 25% so that these homes are now in the $20,000 and more category. He believed that the scarcity of low and moderate cost housing has driven the cost of what housing in that range exists up'to an inflated value. Roger Barnes wanted the committee to throw out factors that they felt influenced the cost of housing. Fol.lowing is this hist: B1 First ftoor square -footage 2 Individual lot size 3 Density 4 Physical location of property 5 Construction labor cost 6 Raw land cost 7 Utilities and streets 8 Park dedication 9 SAC charge 10 Type of construction 11) Setbacks 12) Design Housing Advisory Committee Minutes 5- february 28, 1974 Continued cost of ownership 14 Property taxes Bill teeoer believed that the committee should attempt to get as much information as possible and should disect this information in advance of breaking off into smaller study groups should that be the intent of the committee.. Therefore, he felt another meeting would be necessary. Councilman Neils indicated that the Housing Committee could request that the City staff provide a cost breakdown for a standard single-family house in terms of such items as utility assessment costs, street assessment costs; building permit costs, etc. and do this for a double bungalow, townhouse and apartment buildings. Roger Barnes wanted to know if the committee members had any suggestions as to what approach the committee should take to satisfy the Council's housing charge. Ronald Raschke wondered if a good approach mould be to allow a ch a glperal gpDroacb 01.mmitt This approach seemed agreeable to all committee mem ers w TO Councilman Nei s suggesting that this information be sent to Chairman a week prior to the next maeti!V March 14L. Roger Be -nes wanted earlier requested data and infon%tion to the committee by Murch 14 or 15. Establish Future Meeting Scheduleiriirrirlr-`rrri - • i Discussion on a future meet 'ng schedule resulted in agreement that the fourth Thursday of each month should be Established as the regular meeting date with as many other study meetings held as necessary to accomplish the Council charge of providing the Council with a recommended detailed Housing Policy Statement on June 14, 1974. The following upcoming meeting dates would be March 21 and 28 at 7:30 p.m. at the Council Chambers. Adjournment at 11:00 p.m. Roge E'6arnes Ziiairman Mart'n Overhi ser snWMi It Dal e. Project Coordinators 0 % -