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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 03-28-197417 a AGEADA PLYWITH HUM ADVISORY COMMITTEE THURSIDAY, MARCH Z8, 19?4 7:30 P.M. I. Call to Order by Chairman WHERE: Council Chambers Public Works Building 14900 23rd Avenue North Plymouth, Minnesota 55441 2. Presentation/Discussion with Representatives from Three Suburban HRA's 3. Distribute Additional Houslog Information by Staff (to Toclude PUD Tour Guide) 4. Work Session on Study Areas S. Adjournme t Roger Barnes, Chairman Plymouth Housing Advisory Committee Martin W. Overhlser and Milt Dale, Project Coordinators 0 PLY140M HOUSING ADVISORY COMMITTEE March 28, 1974 A A resular meeting of the Plymouth Housing Advisory Committee was called to order by Chairman Roger Barnes at 7:35 p.m. in the Council Chambers of the Public Works Building, 14900 23rd Avenue North. MEMBERS PRESENT; Chairman Barnes, Harold Bekke, Mrs. Barbara Edwards, James tide, Howard. Hunt, Delano Erickson, Ronald Raschke MEMBERS ABSENT: Mrs. Ruth Ault, William Leeper, Jr., William Rova ALSO .PRESENT: Sue Hess, St. Louis Park Planoting Dept, and HRA; Dennis Daniels, Director of Bloomington HRA; and Phil Hagedorn, Director of Hopkins HRA STAFF PRESENT: Martin Overhiser, Milt Oale Call to Order by Chairman Chairman Roger Barnes introduced the threeguest speakers to the Committee -- Sue Hess, reprdsenting ft St. Louis Park Planning Department and HRA; Dennis Daniels, Director of Bloomington's HRA; and Phil Hagedorn, Director of the Hopkins HRA. Chairman Barnes stat -,J that the three representatives would give a brief description of their MRA activities and then the Committee would be allowed to ask them questions. Presentation - Discussion with Representatives from Three Suburban HF.A's Sue Hess led the discussion off and explained the apartment leasing program presently in use in St. Louis Park. She mentioned that St. Louis Park got into the leasing program initially on the guarantee that they would build a 230 -unit housing project with HUD funds. She stressed that the leasing program had been very successful in St. Louis Park in that there was no stigma attached as there may be in a. housing project where all families are assasmed to be welfare recipients. Presently, tenants' contribution is 25 percent of the family income with Ms. Hess having interviewed about 200 persons interested in the rent leasing progAam. She stated that on the average 20-25 aersons make application per month, with two months beingthe longest most people will wait to find out 1f an apartment is available. Roger Barnes of the Committee wanted to know if St. Louis Park's housing program was geared to the elderly. Sue Hess indicated that it was to some degree geared to smaller families of one or two children or elderly persons due to the difficulty of finding two and three bedroom apartments, Mr. Csrnes also wanted to know if St. Louis .Park is paying out anf tax monies to supplement the leasing program. Ms. Hess stated that all the funding was by HUD; however, recent HUD requirements state that a municipality should select families that can best afford to pay if the local HRA is in any financial trouble. She also said that other HUD requirements caa cause some difficulties for a municipality, as one requirement states that a municipality 2 should estimate the number of units it would need. After this determination was made. HUD indicated that this estimate w;uld be the maximum number of units allowable. in addition, applicants must show a complete financial statement to justify their eligibility for any rent supplements. She said this nas not caused any problem as, out of 118 families, only one case of an incomplete financial statement was returned. She did state that onee problem in St. Louis Park is getting people into the program as housing units become available. St. Louis Park has been making every attempt to publicize their housing program and, even with this publicity, they do not have a long waiting list. Phil Hagedorn said that in his estimation the elderly housing problem in the Metropolitan area is pretty well in hand. At one time Minneapolis had a waiting list of 3,000 persons. This waiting list is now down to 500 persons and they are accepting nonresidents as well. Hopkins presently has a waiting list of some 60 persons. He also indicated that HUD is changing some of its criteria in regards to applicant eligibility, with length of time on the waiting list not the sole criteria, but other factors also to be considered by the local HRA9 i.e. rent paying ability of applicant, hardship conditions, percentage of income going for housing and whether applicant had been replaced from his housing by public action. Mr. Nagedorn said the challange now is to provide new and better ways to house low and moderate income families. Sue. Hess interjected the comment that the difficulty of finding available three and four bedroom units in existing construction did create a housing vacuum for larger families and in St. Louis Park they are waiting for the construction of their new building to help.alleviate this problem. Councilman Hunt said that Plymouth had been vera interested in getting an elderly housing project in its community, but was considered to be too far away from such things as bus lines and business activities to be eligible. Congressman Frenzel had indicated at that time that it would be 10 to 15 years before Plymouth would be eligible to receive an elderly housing project. Dennis Daniels of Bloomington stated that Plymouth and Bloomington had alot In common as both communities had a considerable amount of open space left in their community. In Bloomington they are presently funding their public housing projects through a mill levy with 16 single family houses under construction by Marvin Anderson Construction Company. These houses are in the'$28-30,000 selling range, no garage, while their estimated value on the open market would be $369000. Chairman Barnes wanted to know if a windfall profit would result when these houses were sold the second time. Mr. Daniels stated that the Bloomington HRA has right of first refusal, which means that the HRA is allowed to be the first purchaser of the home once it goes back on the market. The HRA would then be required to pay the owner the inflationary value of the house plus interest on the investment and improvements, but not the market value as would be the case if the house were put up on the open market. This right of first refusal terminates after a ten-year period; however, at that time the inflated value would not result in any windfall profit for the owner. He also indicated that HRA screens applicants carefully in an attempt to get persons most.in need into public housing. Persons that have their own house now. unless it was a very small inadequate house with a family with a number of children,, would not be considered eligible. Also, families could have no more than $5,000 to assets with the requirement that the applicant must live or work to Bloomington. He stated that the price of land is not included in the selling price of the house, with these lots for the houses scattered throughout the city. In his estimation, the houses were well built and included all appliances except a garbage disposal, had hardwood doors and trim. and should be relatively maintenance free for some. time. Dennis Daniels indicated that the problem now -is one of more than just providing housing for low and moderate intone families. but it also is a problem of providing housing to middle income families as the price "of new housing has skyrocketed to such a high lavel. The average price of a new hmuse in Bloomington has now reached the $50,000 mark. A question was raised by the Committee where. St. Louis Park would be building its new public housing project. Sue Hess said that it would be near the Westwood Shopping Center and it would be a four-story apartment -like structure with Hammel. Green and Abrahamson as architects. This building would be owned by a business group who would receive the rents and pay off the cost of the building over a period of time to be spelled out in their contract. A question arose as to whether the elderly prefer living in high rise apartment complexes where they are somewhat removed from the community and in a surrounding that is definitely project orientated. Phil Hagedorn stated that it has been his experience that the elderly do enjoy the high rise type living and this has been proven in Minneapolis and other communities as well. The convenience of being close to friends without having to leave the building Is an important consideration. for this age group. Dennis Daniels stated that any housing program in a community should be a balanced one with high rises, leasing subsidies, townhouse developments, single family homes and others, all available to a wide range of ho:sing prospects. He also felt that a community should not let the Met Council or HUD dictate housing guidelines. With each community defining its own program and guidelines, it is in a better position to address itself to its particular problems. Bloomington will be in the process of evaluating its total housing needs this summer and would like to work with Plymouth to identify their housing needs as well. Mr. Daniels felt that staff inter- action in this problem would be beneficial to both communities. Councilman Hunt said that Plymouth is attempting to mix housing and economic levels through Planned Unit Developments and feels this is a viable approach. Phil Hagedorn indicated that Hopkins is not comparable to most of the suburban communities in that it is primarily an older town on the fringe of Minneapolis that got caught up by the suburban growth movement. This has created some problems unique to Hopkins and it is probably oni reason they have gotten into senior citizen housing in a bigger way than other suburban communities. Presently they have 76 units of senior citizen housing in a seven -story building turn key) and ten families in a low rise building. These programs f were designed so that rents were expected to pay operating costs; however, this has not been entirely the case. The average monthly rent paid in the public housing program is about $44 per month with one person paying as low as $6 per month for rent. Last year Hopkins needed only $1,300 in subsidy money from HUD to keep its housing program going. At present, no residence requirement is necessary, .but most people have come from Hopkins or the western suburbs. One of Hopkins most successful projects has been an 11-story high—rise on Excelsior Avenue and Sixth Street that has paid for itself primarily with real estate tax gains and supplemented with Federal funds. Hopkins has also worked with Minnetonka in processing an application for federally funded housing, but with the moratorium on housing, there is little chance Minnetonka will be eligible for any new building at this time. He feels the overall public housing picture is rather bleak presently, as with the Federal moratorium, state and local governments do not have the financial resources to make a significant impact in the public housing field. Dennis Daniels stated that in Bloomington it took several years of preparatory work before the first applicant got placed in a subsidized housing unit. He did further indicate that if the Bloomington NRA had started its mill levy in 1960 they would now be in a very advantageous position to finance much more significant housing projects. The mill levy that is in effect at ttis time in Bloomington was started about three years ago and now has an $80,000 surplus. He has found that Bloomington citizens are much in support ofHRA activities with only two or three complaints having been received in his office over the last couple years. A comment by a Committee member in regards to tax delinquent land provided some discussion on this issue with Mr. Daniels stating that he did not believe that a city could use such tax delinquent land for housing as it would probably not be construed by the courts as a use for public interest. However, he did stress that a municipality could well go to the state legis- lature and have special legislation passed that would allow tax forfeited land to be used for public housing. He stated that there are other ways of acquiring land in a municipality to reserve it for tow and moderate cost housing, and presently Bloomington has established a nonprofit land bank with a goal of acquiring some 700 acres for a moa of a variety of housing units for all income levels. Councilman Hunt it;.i=cated that Plymouth has attempted to request that developers provide ten percent of their develop- ments to be geared for low and moderate cost housing. Dennis Daniels questioned whether this approach would be constitutional; however, he did feel that it would be worth trying. Some questions were raised by the Committee in regards to Bloomington's land bank project with Harold Bakke wondering how this project would work over the long haul. He believed that some developers who were on the fringe of the land bank area would be in a poor position competitively than those developers who had land in the land bank. Mr. Daniels said this problem could be overcome by exchanging land so that developers on the fringe could acquire land within the land bank in exchange for land they had outside of this area. However, he did concede that all the problems that could arise have not been worked out and that it would be a difficult task to assemble and develop this project in its entirety, but felt the ultimate objective made such an effort worthwhile. 5- A question from the Committee to Mr. Daniels was what a community should be doing first if they wanted to come to grips with the present housing dilemma. He said that the first thing would be to establish a NRA, then establish a mill levy and to define housing needs. Phil Hayedorn said that rehabitation programs are not presently available through the state financing agency. He did believe that while Hopkins did not use a mill levy system, it was a good tool. However, he felt that each :•or.runity had to make its own decision as to how to provide for public housing. One way that Hopkins used was a tax increment financing program to acquire land. In this manner a housing mix can be achieved with the NRA at present the best tool to perform this function. The question arose as to whether PUD's were a good way of reducing housing costs. Dennis Daniels stated that in Bloomington's experience they were not, and often in that community they were more expensive than normal housing and did nothing to lower housing costs as such. However, he was not opposed to PUD developments and the providing of a good mix of housing types and densities. PUO's, he felt, often worked to the advantage of the developer with the eventual buyer of the home receiving no cost break.. In this regard, Phil Hagedorn said that the Westbrook PUD has worked very well. Dennis Daniels added that developers often just used PUD's so they can increase the density on a givenparcel of land and thereby increase their own profit margin. A discussion ensued regarding the Met Council's policies and its recent formation of a Meet Council HRA. Both Daniels and Hagedorn were in opposition to the Met Council's creation of an area -wide HRA and, in this regard, Mr. Daniels said that in his opinion, local communities should take a strong stand against those Met Council policies that just do not appear to crake sense. He also believed the Met Council had every right to rap communities when they do aot provide the right type of housing programs or when their policies do not appear appropriate. Couir lman Hunt said that in regards o HRA's, most suburban communities would prefer to use established HRA's in other communities through a contractual agreement rather than depend on a Met Council HRA. Both Mr. Daniels and Mr. Hagedorn said that they would be very agreeable to assisting Plymouth in establishing its own NRA. This informa- tion would be made available to the Plymouth City staff at their request. Barb Edwards of the Committee wanted to know if senior citizen projects have to be totally subsidized, as she indicated her mother was living in a project in Minneapolis which did not seem to be totally subsidized. Phil Hagedorn said,"No", that under the old 236 program some -ieople would pay market rent, some paid partial rent, with the rest of the rent being subsidized. Committee discussion then centered on who would compose a local HRA. In Hopkins' case, Mr. Hagedorn stated that there were five members on the Board of Commissioners, none of which are members of the Council, but are appointed by the Council; while in Bloomington, three Council members sit on the HRA Board, with the rest of the members appointed by the Council. Both Hagedorn and Daniels indicated that the HRA and the Council should have a good working relationship if the HRA is going to be effective however, a HRA as presently 6 - established under state statutes does have real powers of its own such as the power of condemnation. This is unlike other appointed commissions in municipali- ties,, Dennis Daniels felt that Plymouth should make a real effort to acquire the Minneapolis .Workhouse property for low and moderate cost housing. This would be done by going to the Mayor of Minneapolis and urging him to provide this property to the City of Plymouth. Some Committee discussion resulted in regards to Daniels'proposition, with a question being raised as to what the utility assessments were on this property. Councilman Hunt stated the assess- ments were $750,000 with the land value estimated at some $2,000400. Committee members were uncertain whether Minneapolis would freely donate such a substantial sum to City of Plymouth . Distribution of Additional Housing,Informatioo.by Staff Martin Overhiser passed out additional housing information relative to the following. items: 1. A Housin Re ort from the Met Council on PUDs (February, 1974). 2* Wusing costs as determined by- William ge , Extension Housing Specialist, 11niversity of Minnesota (December, 1973). 3. Your Housing Alternatives - Getting the Most From your Housing Dollar rIcultural Extension Services University of Minnesota. 4. Balancing _Your Housing Needs and Resources, William Angel, Agricultural Extension Sery ce, University of Minnesota (1972). 5. Tour Guide to Housing in Plymouth, staff report. Discussion took place on the planned tour of housing in Plymouth scheduled for Sat:irday morning at 8:00 a.m. and a show of hands indicated that Councilman Hunt, Chairman Barnes, Jim Eide and Del Erickson would likely be on that tour along with one of the staff members. As well, John Doyle would be in attendance. Work Session Study Areas Chairman Barnes said that as it was getting late in the evening, it would be better to work on which study areas Committee members should be assigned to at another date rather than attempt to do it at this meeting. It was decided that a meeting should be held on Thursday, April 4 at 7:30 p.m. at which time the Committee would concentrate on this one area of assignment to subgroups. Chairman Barnes wanted Committee members to think about which group of the four groupings they would wish to be assigned to. Adjournment at 10:45 p.m. k.. oger Barness Chairman 0 Frartin Overhiser an Milt Dale, Project Coordinators