HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 01-07-1975HOUSING ADVISORY COMMITTEE
CITY OF PLYMOUTH, MINNESOTA
January 7, 1975
A regular Meeting of the Plymouth Housing Committee arcs called to order by
Chairman Roger Barnes at 8:00 p.m., January 8,. 1975 in the Conference Room of
the City 1411, 3025 harbor Lane.
MEMBERS PR_,ESENT: Chairman Roger Barnes, Mrs. Ruth Ault, and Councilman Howard
Hunt.
MEMBERS ASSENT: James Eide, Mrs. Barbara Edwards, Hilliam Leeper, Jr., Harold
Bakke and Del Erickson.
STAFF AW OTHERS PRESEUT: Phil Katzung, Metro Council Housing Staff; Bill Koski,
Y.A.A.C. Representative; Charles E. Dillerud,
Director, Planning & Community Development; Milton
Dale, Assistant.Planner,
The meeting: was called to order by Chairman €::dimes.
Chairman Barnes explained to the committee that the initial discussion would
center on the Housing and Redevelopment Act as it related to Plymouth. In
addition; Phil Katzung, of the Metro Council Housing Section, was in attendance
to explain to the committee the services that the Metropolitan Council H.R.A.
could offer a contracting municipality.
Preliminary discussion centered on the need for either a local H.R.A. or a housing
committee that would act as a watchdog to be aware of those state and federal
housing programs for which Plymouth might be eligible. Councilman Hunt stated
that if tho City knows what the criteria or ground rules are, they can be first in
line when housing monies are available.
Members discussed what H.U.A.'s definitions of low and moderate income families are
by their standards. Phil Katzung stated that for the Twin City Metro area., those
families earning between 50 percent to 80 percent of the area's median family income
would be.. -considered a moderate income family and those families earning less than
50 percent of the median income for its family size would be a low income family
by H.U.D. definitions. As an example, should the Metro Area's median income for a
two -member fam.4ily be $10,000 per year, then those two -member families earning
between $500 and $8,000 per year would be in the moderate income category while
those earning less than $5,000 per year would be considered low income families.
Mr. Katzung explained that a very low income category was also defined with a low
income ono -person family in the Metro Area yearly income presently estimated at
7,800 (maximum) and very low one-person family income at $4,700 per year (maximum).
Councilman'Hunt stated that he was of the opinion that the four following "givens"
must be accepted: 1 - There is no way Plymouth can provide low/moderate income
housing without a subsidy program; 2 - Plymouth cannot provide any quantity of low/
moderate income housing without "outside" help; 3 - No County money is available;
HOUSING AWISORY COMMITTEE MIf1UTES - 2 - January 7, 1975
4 « The state and federal programs must be tapped if low/moderate income housing
fn Plymouth is to be a reality, i.e.. Plymouth therefore would have to abide by
H.U.il. regulations to be able to qualify for any federal programs.
Mr, aillerud asked if the committee had determined what the income of people work-
ing trithin P1,%enouth was and where these people were living. Ruth Ault stated this had
been attempted but found employers she had contacted were unwilling to give out
this informat o'%.. Chairman Barnes stated that if a survey of employees in Plymout;i
were to be done,it should seek out the answers to the following three questions:
I - what kinds of jobs are there in Plymouth for people; 2 - what are the wages
paid to employees, i.e. a general breakdom by types of employment; 3 - do people
live elsewhere than Plymouth for reasons other than the high cost of housing within
the City.
The committee then discussed in some detail the Housing and Redevelopment Act.
The following areas were noted for committee members for their more detailed study:
Section 462.415, Subd. 5 - Need to provide housing where private. enterprise is
unable to do so.
Section 462.421, Subd. 25 - Definitic-:,.f a :-,)using Development Project.
Section 462.425, Subd. 1 - Preliminary Muricipal Findings and Declarations.
Subd. 2 thru Subd. 7 - Nit':ority of i local H.R.A..;
Tenors of Office;
appointment Procedure.
Section 462.426 thru Suction 462.,29, Subd. 1 - Applicability to the City of
Plymouth.
Section 462.441 - Indicates Powers, Officers, Meetings and Compensation for H.R.A.
members;
Section 462.445 - Powers and Duties of a Local H.R.A.
Section 462.465 - Relates to the need for an H.R.A. to make findings and show a
need for Low Rent Housing and for the Government Body to admin-
ister these findings.
Council approval is required in any contract with the Federal
Government.
Section 462.471 - Relates to rentals and indicates that a municipality cannot
operate a project for revenue profit.
Section 462.501 - Appl"ies to the limit of period of occupancy, which is a period
of four years. Discussion centered on how this time period
operated in practice with Phil Y,atzung indicating that he could
not recall any case where a tenant was actually removed from a
project after four years.
HOUSING ADVISORY COKIITTEE MTt1UTES - 3 - January 7, 1975
Chairman Barnes said that the powers and duties of a local N.R.A., which allowed
them the right of imminent domain was a very important power as was the ability
of an H.R.A. to establish a separate taxing district. However, this is subject
to the consent of tke City Council. An H.R.A. can levy up to a 1/3 mill tax as
the maximum gill levy for H.R.A. activities.
Phil. Katzu.r; was asked how many municipalities within the 7 -county Metropolitan
area .have H.R.A.'s. He stated that presently 26 municipalities of the approx-
mately 150 municipalities eligible to have an H.R.A. do have such authorities.
Columbia Heights his a 100 -unit elderly project underway, which should be ready
within one year. St. Louis Park has a leasing program and an elderly housing
building plannea. Robbinsdale, Hopkins, South St. Paul, Minneaplis and St. Paul
H.R.A.'s have all Seen very active with Bloomington having a small housing assist-
ance program underway. '1e also noted that most all municipalities use the one-
third mill levy financing program. It was the opinion of Councilman Hunt that an
H.R.A. mill levy :n Plymouth would amount to some $30,000 per year and while a
small amount,relatively speaking, it would assist a rental subsidy program within
the City, i.e. such as a project of 20 to 25 rental units. However, Councilman
Hunt emphasized much more monies would be necessary to really provide significant
assistance to Plymouth for low/moderate income housing, _
Mr. Katzung indicated that a lot of local H.R.A.'s have become frustrated because
of the lack of federal funds to get projects going but he was of the opinion that
funding would become available in the near future. Comments were made relative to
block grants" and how a community becomes eligible for this money. Mr. Katzung
stated that some $1 million dollars of block grant money would be available this
year within the seven -county Metropolitan area with H.U.D. selecting the projects
within the municipalities that would receive aid.
Brief discussion ensued on the Section 8 - Leasire Program, and what assistance
this could be to Plymouth. Mr. Katzung stated that to qualify, persons would have
to 5e in H.U.D.'s low and very low income category with any apartment building
where a qualified tenant may want to live having to qualify for H.U.D.'s apartment
rental range. H.U.D. is presently trying to limit the number of apartment units
in a project that would qualify for subsidized rentals to 30 percent or less of the
units in order to mix low, moderate and high income families in one project. At
present, r.o funds have been given out under the new Section 8 urogram with funding
for tew construction estimated to be difficult to obtain under this specific program.
Mr. Katzung then discussed the organization and functions of the Metropolitan
Council N.R.A. He indicated that the N.R.A. consists of an advisory committee
that meets twice a month with Phil Cohen, St. Paul Mayor, as its Chairman. The
committee is not funded but it would levy a mill rate within a community to help
subsidize programs. However, this money would have to be used within the municipality
where the mill levy was raised. He explained some ways that the Metropolitan H.R.A.
would work with a municipality. One would be to act as the municipality's H.R.A. with
the staff of the Metropolitan Council then assisting the community by taking appli-
cations from interested parties, checking out apartment buildings to see that they
meet qualifications and other staff assistance as needed. The Metro H.R.A. could
also provide technical assistance to municipal H.R.A.'s that do not have staffs and
provide assistance on a consultant basis.
HOUSING. ADVISORY C"ITTEE MI11UTES 4- January 7, 1975
He further added that while the Metro H.R.A. may make a variety of housing proposals
to a contracted City, the City is under no obligation to act on such proposals, i.e.
the City Council for that municipality still has the final authorit'• Presently
Stillwater has Pntered into a contractural agreement with the Metro R.A. Comments
were made relative to the fear that some citizens have regarding H.R.A.'s that the
establishment of such an authority will bring in Targe numbers of low income families.
Mr. Katzung indicated that this fear was ungrounded as studies have shown low income
families living in cities prefer to remain in cities as convenience to city services,
i.e. buses, shopping, etc.,is important to them. He also mentioned that in Burns-
ville a 236 project attracted many rural Dakota County residents who wished to move
into a more urban environment. Committee members were further informed by Mr.
Katzung that the Section 8 Leasing Program does require persons eligible for rent
subsidies to find their own housing, i.e, each person who applies and is rated as
eligible gets a certificate and a list of apartments that qualify (as to rental
rates) and then the eligible person selects the apartment and community where ($)he
wishes to live. He noted that the landlord still has the option to refuse renting
the apartment unit. However, under the subsidy program, the landlord is guaranteed
the full rent from the Federal Government. Chairman Barnes wanted to know if and when
a municipality might terminate a contractural agreement with the Metro H.R.A. Mr.
Katzung answered that the contract is set up on a five-year basis after which the
contract is renewable. However., it would be ,necessary for the City should any
low/moderate income housing projects be established during the initial five years
that some H.R.A. Agency be created to continue those programs in existence.
Other questions raised relative to the Metro H.R.A. and a Section 8 rent subsidy
program:
Would there be many apartments in Plymouth that would qualify as low/moderate
income apartments? No way to know until after the Metro-H.R.A. staff did a
survey. However, initial feeling was probably not too many.
How would rent raises by landlords be handled? A ten percent inflation factor
is built into the rent subsidy program by H.U.D.
What happens to that excess money collected by rent payments from certified
renters in the Section 8 Program? M.U.D. places that money in a reserve fund
to provide additional housing.
The next meeting is to be Thursday, January 23rd at 8:0R p.m. at City Hall, with
Mike Auger, State Planning Agency, as speaker.
Meeting was adjourned at 11:45 P.M.
sem""
Wer Baftes, Chairman
Milton Dale, Project- Coordinator