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HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 04-21-1994PLYMOUTH HRA STAFF REPORTS APRIL, 1994 PLYMOV7N. 0 2i, 1994 AT f'FrV MFMf-M 06NPRama ROOM 1. call to Offt 2. Approval of Match 17, 1994 Minutes 3. Tax Forfeit= Lot Available 4. Senior Housing Project Update 5. Metro Council Housing Activities Survey 6. Community Builders Proposal 7. Information Items a. Family Self -Sufficiency SW"ft Committee b. First 711ne Homebuyers Program C. Rehabilitation Grand) man Program d. Hammer Residences 8. Other Business 9. Adjournment braO417) 0 lo— h: -,: C l'Y 1Gl1NCa;t 111B 8MGBSObBt` . ._ 1. Gil to Order 2. Approval of March 17, 1994 Minutes 3. Tiz Fmfeftm Lot Available 4. Savior Ho miag Project Update S. Melso Council Housing Activities survey 6. Comnmi*y Builders Proposal 7. Information Items a. Family Self4utiicieocy Staet;ng Commkw b. First 71me Homebuyers Program C. Rehabilitation araot/I.oan Program d. Hammet Residences S. Other Business 9. Adjwtnment C "=12b] MIIailrm PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY MARCH 17, 1994 A maering of the Plymouth Housing and Redevelopmam Authority was caped to order by Chairman David Crain on March 17, 1994. PRESENT: Chairman David Crain, Commissioners Brian Warhol, Magic McFarland, and Brian Warhol ABSENT: Commissioner John Edson STAFF PRESENT: Executive Director Anne Huriburt, Housing Specialist Milt Dale, Housing Secretary Denise Hutt, Park and Recreation Director Eric Blank UCITON OF NEW HRA CONMMS LONER Crain welcomed Commissioner Rugh to the Housing and Redevelopment Authority. Stere laudomak President of Plymouth Housing Alliance (pHA) stated the PHA has two main concerns. Orbe concern is space. The board currently uses the City Council Conference Room for their matings, but they would also like an area to store materials, file cabinet, and office W Lud(mmc Whime(i the PHA nada to have a location from which to conduct The other main concern raised by Mr. Ludovissie was personnel. He acknowledge the "Statement of Relationship' .specifically, states the City of Plymouth staff will not be available for staffing support, but the PHA is a board made up of professional people who have hinted time. The PHA has not had the time to recruit volunteers. Mr. Ludovissie projected the PHA would read someone to serve as a director or project administrator, possibly for the next eight to twelve month, at five to ten hours per week. This person would seek volunteer recruitments, help out with the financial aspects, as well as, fimdraising and day -today administration. This would alleviate the band members fiom the on-going tasks and allow them to focus on policy makingdecisions. Mr. Ludovissie stressed that without additional staffing assistance from the City of Plymouth PHA projects would be prolonged. Chairman Crain asked if the PHA was requesting two staff persons, one to take minutes at board matings andone to serve as a director/project administrator. Mr. Ludov ssie replied. one person could serve both fluMons. He suggested Volunteer Coordinator Nancy Anderson could assist and posanbly another staff person. Kim Sargon requested the volunteer coordinator advertise for volunteers for the PHA After the volunteers aro found, there would also be the need for someone to supervise the vchrrneors Mr. Bagman requested the Housing and Redavelopment Authority recommend approval of a resolution to use City staff for the Plymouth Housing Alliance to forward to the City Council for their approval. Commissioner McFarland asked why the Plymouth dousing Alliance did not object to the Statement of Relationship when it was adopted in December. 1993. If it was considered important at that time to incorporate the statement of no City staff to be available for assistance to the PHA, why ash for it now. Mr. Ladovissie responded the issue of available City staff was an oversight. The PHA does want to operate independently. but needs staff assistance on an interim basis. Mr. Bergman stated the main reason for the clause was that no City staff should be used in soliciting donations for the PHA. Director Hurlburt commented staff does not have the available time to commit to the PHA. She vgdained part of the functions of the Community Develops u s t department are to regulate development in the City and City personnel cannot be soliciting money fiom these same developers. She believed staff should not be involved in this effort except to attend matings. City Manager JOIW@Or. statrd the original concern of having staff involved was the conflict of soliciting donations. NP stated the Community Development Department is also very short of staff. Mr. Ludovissie esked if it was possible to just use the services of the vohmtar coordinator. Mr. Barman wondered if the volunteer coordinator could possibly work out something with her other jab whiwt would enable her to work an additional five hours or more per week for the PHA. Chairman Cra-:r asked Mr. Ludovissie to prepare a more specific request outlining their need for City staff assistance. Director Blm* informed Commissioners the volunteer coordinators position a a 20 hour per week position. The volmrteers that Nancy recruits are to work for a City staff person. Director Blank has been contacted by other non-profit groups inquiring aboun obtaining her services also, but her job description prohibits providing such services. If the HRA and City Council wish to modify thejob description guiddhm he behaved something could be worked out. Chairman Cerin was concerned if this erangenment were allowed for the PHA, then the City opens the door for other norm& orgedzW s to make oi-.miler request'. He wanted to know where do you draw the tine. Commissioner Rugh commented this looks like an interim situation for possibly six months. Mr. LadoWsdo added that the purpose of using the volunteerLeer coordinsta is to build a base to recruit volunteers the become committed io the program. There should be a continual growth of volunteers thus alleviating the need of City staff in approrumetely 12 months. Commissioner Rugh asked if this could be sin as an interim step, world it meet the needs of the PHA Mr. LudoWsde replied affirmatively. MOTION by Chairman Crain, seconded by Commissioner Warhol approving recommendation to the City Council that the volunteer coordinators services be provided to the Plymouth housing Alliance to recruiting volunteers. C.omoissioner McFarland asked if this item would go to City Council for approval. Chairman Crain replied the Housing Authority forwards this item to the City Council for their approval. Vote. 4 Ayes. MOTION carried unanimously. Chairman Crain instructed Mr. Ludovissie to provide all information requesting staff nods ahead of time to the City Manager. S1UM ROUSDIG PROJECT UPDATE Chairman Crain asked if the project is behind and if so, what would'be needed to put it back on schedule. Greg Oppgsrd of Walker Management presented Commissioners with an update on Plymouth Town Square. He Rated the project is behind Whodule due to the severe winter weather. Frana and Sons wanted to ask for a deadline extension, but it was agreed to reevaluate the project in Jun to see if an artension would be needed. Mr. Oppegard anticipates if the current pace can condone the project should be back on schedule by Jun If a two week ademaion is needed, it would not have silp icam impact on the occupancy ofthe units. Donna Hasts of Walker Management commented the leasing staff would also need to know by Jun 1 if there is a deadline extension. It should not impact the lease up of units as the management would attend their work day to offer three mown schedules per day instead of the normal two. Crain inquired if the revised drawings for the central core area had been approved. Mr. Oppegard replied they have yet to be approved ofiiddly yet, but thought the revised plana for the antral core area will be an asset to the project. Mr. Oppegerd will also be looking into the coat coarparisoo ofthe revision. Comm isdomer McFarland asked if there was a "slush! 6md available for this acre of needed Mr. Oppegsrd explained there is a five percent contingency clause, but it is Wd ka% goal to get through the project without use of the contingeney fiords. Cunutly, the project is under budget. Ms. Flats introduced Sarah Miller as the new manager for Plymouth Towne Square. bb Miller is a graduate from the University of Minnesota with a degree in housing. Ms. Miller wig be offrced in the Public Safety building starting April 1 until the building is completed. Ms. Flash pointed out the original market plan estimated 16 months of marketing. With over SW names on the "interest list', this marketing is not necessary resulting in a savings in that area. APPROVAL OF FEBRUARY IL 1994 MII1W= MOTION by Conmassioner Warhol, seconded by Commissioner McFarland to recommend approval of the February 15, 1994 mks. Vote. 4 Ayes. MOTION carried umnimously. UREIC RZAROIG FOR FY 1994 CDBG PROGRAM Housing Specialist Dale gave an overview of the March 14, 1994 memo, relating it to the letter from the Depantnnet of Housing and Urban Development (HUD) asking for a "workout plan• showing the draw down of available Community Development Blocr Grant Funds. Staff suggests a.reallocation of $30,000 from the Rehabilitation G=VLoan Propm and $20,000 from the First Time Homebuyer Program to a new activity for accessibility improvements at City parks as requested by the Park and Recreation Department. Chairman Crain opened and dosed the public hearing as there was no one preset to speak on the issue. Chairman Crain asked what the $50,000 is needed for. as $10,000 was already allocated for the Plymouth Park and Recreation Department. Housing Specialist bele explained the previous allocation of $10,000 includes $5,000 for a hard surface material for the east beach park to mak: it handicap accessible to the water and S5,000 for a one-on-one assistance program to assist hanidicapped persons for park programs. The additional $50,000 requested by the Park and Region Departmrt would be used for hard surBaoe areas for playground at other parks. Cheirman Cutin asked if the $50,000 would be used from atryover funds. Housing Specialist Dale replied this is a new activity under the 1994 CDBG allocation and would require trainflirmig 530,000 from the Rehabilitation Cramilean Program and $20,000 from the First Time Homebuyer Program to this new activity. Commissioner McFarland asked what the City's definition is for Fust Time Homebuyer. Housing Specialist Dale responded someone that has not owned a home for at least three years He commented that most of our program participants have never owned a home before, with most of the people in the 20-40 age range. Chairman Crain asked if the First Time Homebuyer draw down on the workout schedule was realistic. Housing Specialist Dale replied the anticipated March and April egmses have not ban drawn down yet, and felt this schedule was realistic. He explained the second round for 1994 will be advertised shortlyif there is financial assistance still available, another round will be offered this summer. Chairman Crain wondered if it is too early to promote this round for the program. Commissioner Warhol stated this is the prima market time and it should be promoted now Comoumioner McFarland questioned if residents know there a a Rebsbilitation Grant/Low Program available. Housing Specialist Dale responded the programs are advertised, but staff anticipates advertising on a more ongoing basis. He suggested the $10,000 maximum great for the Rehabilitation GrantIon Program could be increased to $15,000, .and the First Tame Homebuyer Program financial assistance increased from $15,000 to $20,000. Director Hurlburt asked by raising the financial assistance from $15,000 to $20,000, would it help to qualify more applicants. Commissioner Warhol informed Commissioners the inwest rates are going up and by raising the financial assistance to $20,000, it could offset this increase. Mayor Tierney saaggested additional funds could be used to help applicants with the vgmses they will incur with homeownership. Commissioner Rugh asked where applicants are found for these programs. Housing Specialist Dale responded that letters are am to Plymouth employers, realtors and lenders. Most applicants live or work in Plymouth. The average firmly size is three with an ami al income of 522,000. They usually purchase a house or condo at an average purchase price of 73,000. The average financial assistance is $10,000. Commisdoer McFarland wanted to know how the applicant can use the financial assistance. Housing Specialist bele replied the financial assistance could be used for up to 50% of dowopayorost, reduce the mortgage principal amount, and/or closing coats. Chairmen Crain commented that with seniors noving into Plymouth Towne Square, there should be a spurt of affordable homes on the market, and we should be ready to capitalize on that for the Fust Time Homebuyer Program. Director Hurlburt stated the Housing and Redevelopment Authority may be fired with reallocation of Community Development block Grant fluids several tinea during the year, depending upon the monitoring of the workout plan. Director Blank stated the Park and Recreation Department is requesting an additional $50,000 to update parka due to the Americans with Disabilities Act (ADA) requirenets. He explained that 32 out of 33 City parks are in noncompliance with ADA requirements. The $50,000 requested will allow Plymouth Creek Park to be updated to mat all ADA requirements. This project is anticipated to begin June 1 and the funds should be drawn down by October 1, 1994. Should the HRA reed to expend additional funds, the Park and Recreation has a need for additional financial assistance to mat other ADA requirements. Director Hurlburt asked how long the now deck surfacing lasts. Director Blank replied the sinticing that will be used carries a 10 year warranty. Maya Taney wanted to know if all City parks have to be handicapped accessible. Director Blank responded ADA requirements state you have to provide a •Win" experience for all residents. There will be components in each park to provide that experience. Ca missioner Rugh commented it is important to have universal access. Commissioner Warhol noted draft Resolution 94-04 did not include the Park and Recreation request for $50,000. Housing Specialist Dale responded Resolution 944 will be corrected to include the request by the Park and Recreation Department. MOTION by Conum oner Warhol, seconded by Commiasioner Rugh to recommend mW. k twn of Fetal Year 1994 Commumty Development Block Grant Funds as per draft Resolution 9404. Rol Call Vote. 4 Ayes. MOTION carried unanimously. MOTION by C.or ummoner Warhol, seconded by Conor umoner McFarland to i cmw the First Time Homeh W Program financial assistance from 515,000 to $20,000 and 5urther this added assistance would be available to include all current applicants based on income. Rol Call Vote. 4 Ayes. MOTION carried unanimously. 119918URM AMENDI ZM Dkec w Hudburt gave an overview of the March 14, 1994 memo on the proposed amendments to the 1994 Budget for Fund 234. She explained there are throe separate budgets for housing which include Section 8 - Fund 233, CDBG - Fund 232, and Senior Housing - Fund 234. There is WAII000 funding available from the senior.housing tax Levy to support a much needed position in the housing department. This person would be a supervisor who reports to the Commmmity Development Director • She stated funds ate available for 1994, it looks tight for 1995, but there could be other fiuoding sources available. Chairman Crain asked if the current workload would be alleviated once the Senior Houaingprojectiscompleted. Director Hurlbut replied the senior housing project will not be w time consuming, but there wig atilt be ongoing monitoring with this project. The management services agreement with Walker Management will expire st. the end of 1995, at which time the housing authority may wish to take over the project. She went on to explain the Section 8 program will be going through numerous which will put more burden on staff. With another professional position, it wig allow staff to do mon planning activities. Chairman Crain understood the preasmmm is to expend the CDBG funds, but this request seems mon City related. Dmrector H ft" stated staff will be drawing down on the maximum allocation for administration of CDBG funds. Chairman Crain commented the number of personnel has always been a major issue and he wondered whether this new position would create any problems or issues for the City Council. City Manager Johnson responded the personnel issue was discussed at the last council meeting after Councihncmbers received a copy of the letter send by HUD on more timely expenditure of CDBG funds. He stated with the new position, staff could be more proactive and generate new ideas for spending CDBG funds Chairman Crain stated with the current press= put on suburban aties to provide more affordable housin& this position could be worthwhile. Commissioner McFarland asked if this item needs to be approved by the City Council. City Manager Johnson confirmed the position would need to be approved by the City Council. Mayor Tierney asked what the cost would be for this new position. Diroctor Hudburt replied this position would be in the same fangs as the building official and the planning supervisor at approximately $50,000 per year. Mayne Tierney asked if Community Development Block Grant fiords could be used to help fund this position. Detector Hudburt responded that Community Development Block Chant funds are not possible for use in 1994, but may be an alternative for 1995. MOTION by Chairman Crain, seconded by Commissioner Warhol to reconmmd the Whim of a supervisor for the housing division. Director Hudburt commented there would be a need for an intern through the summer, as a supervisor would not be on staff until at hest July 1. Roll Call Vote. 4 Ayes. MOTION carried unanimously. MEEllm SCEWjH LE Commissioner Rugh stated Monday and Tuesdays are not convenient for him as he is in Chicago on those days. It was the consensus of the board that regular HRA matings will be held on the third Thursdays of the month beginning with the next mating on April 21. Housing Specialist Dale reminded Commisrioners of the Fair Housing Workshop to be held on Tuesday, March 22 at 11:00 a.m. in the City Council Chambers. MEETING ADJOURNED AT 9:25 P.M. 490 CUT OF PLYMOViS 340011tYMOUTH BOIJIBNARD, PL`rMovls, Mlti, 55447< DAT& April 13, 1994 for Housing and Radavelopmeat Authority Meeting of April 21, 1994 TO: Anne Hurlburt, Executive Dba for FROM: Milt Dale, Housing Specialist4k— SUBIBM Met Forfeitom Lot Available The City's Assistant City Manager, Kathy Lieclm, informed City Departments recently that a single family residential lot bad become available through tax forfeiture. The marloot value of the property was shown at $25,000 with special assessments of 188.52. This lot, with the legal description of Lot 26, Block 1 Fina Ridge at Baas Lake, meets all City zoning requivisnents and is in a neighborhood of $130,000 to 190,000 single family residences. Other information on the pared is attached to this memo. I have informed Stove Ludovissie of the Plymouth Housing Alliance of the availability of this rot. Suave indicated be would like to bring the issue of •trading• lots, ie this kit for the lot on Fembnook and County Road 9, before the Housing Alliance for their consideration. The cost of this lot would be minimal and would reduce the total cost of the ProjecIt Significantly. As this is a very suitable kit for building a single family home, I strongly recommend that the EWA request that the City Council take formal action to secure this properly. A resolution to this effect is attached. Attachments: I. Resolution (draft) 2. Location Map 3. Tax Forfeilme Lead Analysis 4. Plat Map showing Lot 26 S. Topography Map showing Lot 26 HBA RESOLUTION " REQUESTING THB PLYMOUTH MY COUNCIL TO TAKE ACTION TO SECURE TAX PORF®TURB IAT 26, BLOCK 1 PINE RIDGE AT BASS LAKE WHEREAS, the Plymouth Housing and RedrmWMeot Audwft has recently become aware that Lot 26, Block I Pine Ridge at Bass Lab has became tax 111 -ed property; and, WXIDMAS, this vacant pannd would be well suited for construction of an affordable single family sesidenoe; am, WHEREAS, the City Council has authority to uodfY Hennepin County dot the City of Plymouth has au iutewt in doe property; NOW, TP MORE, BE 1T HEREBY RESOLVE) BY THE HOUSING AND REDEVELMONT AUTHORITY OF THE C17Y OF PLYMOUTH, MINNESOTA, dot the Plymouth Housing and Redevelop Authority requests that the City Council notifyHeaae& County pflor to June 7, 1994 that the City of Plymouth will accept ownership of the tax forfeited parcel !known as Lot 26, Bloch 1 Pine Ridge at Bass Lab all in Hennepin County. re 71u&cjsb) fi Pi, CD WcAmoN MAP q ... rLs as L MCS a 101 D LEGALLY DECMD DM. If irDFWM A Cov14UIW V usawna JO DLIA PM cur. Down, wD Dn1E 0 AUNNIIIES a0 DDED SOUML CITry OF PMUT1+ ASSESSING DIVISION TAX FORFEIT LAND ANALYSIS 9Ms 03/30/94 IDs 11-118-22-22-0069 SnF00RAFHls Flat Grade ZMAZM: 9.35 SOM 11=1 12.705 ODQ31BI t Approx. 73 x 175 NA R WALUt 425.000 01FAID BFROLAW*. 4188.52 Not Attached UNARR3s No trees - railroad tracks at rear of lot - zoned RI -A 90 RIOOE AT GASB LANE STN A00. MAP , Do 1110.00 scao 4 / VIC bi 0. aft Id! no w ia;I I ed gl Ivi I« ti I " W I I II I I 45 :I 13 I I 2 w 1MIN I mi I I I «I -- I LI 1 No 293.17-A•sl°00'48 J 1T -A• 7: 283. r O IR / i \ <• fie; i1 Ad1.07 v" 125 ,' `:26 =mi' i, 27 i (28 18 1 1-.0 /- I _ b a n: rIdC law J 1 -. INE RAILROAD c r ti0 •' L 7-7 4 Y ..• / ol / IMAF qAA4-1&14 400 ToPa6RAPHY 820.0 - - Yo-- a. Mo w0 934.T +1R83s / — ° 836 - 927.0 / MOD 039 o•: a gSO g34.3 / g' blb 93,g T .01 tV 6 •' sCNoyy 92 1 SENO925,5t ' 2S 26 ,' 27,. 26 x R, Tricks I , sea Ale DATE: April 13, 1994 for Hauling and Redevelopment Authmity Marling of April 21, 1994 TO: Am Hurlburt, Bacutive Director FROM: Milt Dale, Housing Specwist SUBJECT: SSMOR HOUSING PROJBCT UFDATB Reports on the application n taloa process and on construction propm at Plymouth Towne Square have been provided by Walker Management. Sarah Miller and Dome Pinata of WaUoer will be at the April 21 meeting to provide move cunut data. Ong Oppegatd will also be attending. 1. Marro from Sarah Miller, 4/13/94 INTERDEPARTMENTAL MEMO TO: MILT DALE FROM: SARAH DATE: AprH 13, IM RE: PLYMOUTH TOWNE SQUARE UPDATE Per your request. here is the progress to date, for Plymouth Towne Square. As of April 131h: Week of April 4th: Staff mailed out an additional So applications. Total applications out: 600. The office received an average of 60 telephone calls per day. The calls were questions on eligibility and application process, requests for applications, and building questions. The office averaged S walk-ins per day. Walla -ins consisted of dropping off applications and/or wanting staff to review the form for completeness. Volunteers assisted 11 applicants in fdling out the applications.. Weep of April 11th: Staff mailed out an additional 24 applications. Total applications out: 624. 271 applications were received by the April 11th priority deadline. These applications were randomly placed on a waiting list. An additional 25 were received 4/12 & 4/13 and placed on the waiting list in Me order received. The waiting list total consists of 296 applicants. Staff is reviewing applications for eligibility and assigning preferences. 0 Upcoming Procedure: Set up appointments with applicants to verify income and expenses. You can call me at the end of the week if you wish to update your report to the HRA prior to sending it out. Donna and I will be distributing a report to the HRA Board the night of Me meeting with the most up-to-date information and additional statistics. If you have any questions, please call we at X5053. 7. .. 5. -.c'. ,x,i.A A` ' isarny,a .. x,•.,I6?:'.:' :';;: nRr :. N:.:C11Y:OFPLYMO"UTH •. R a...':; e,;,,.:a,^:c,++a,:a.-;i..>z .6.'...ii :<'fy°/{'''*^: < '•.r•h "s ' i'-': .; ti:: 434MIL N. Y,. w.lx K.p_. °{.+•' . .• DATE April 13, 1994 for Housing and Redgvelopougat Authority Marina of April 21, 1994 TO: Ams Au„4N[`, Execulfve Dneetor FROM: Melt Dab, Housing Specialist SUWECT: ME= COUNCIL HOUSING AcnvaimS SURVEY A mooting will be held on Wednesday, April 27, with gxesentives fro® Maple Grove, Plymouth, Brooklyn M. Minoatonka, Champlin, Rogers, the NotWwest Hemrepin Human Sennom Council and the Metropolitan Council to discuss the issue of providing move house g diversity in the suburbs. Through meetings like this, the Metro Council staff hWa to geia ao underat m to3 of who they can do to assist the suburbs to achieve this goal. A emmy form was provided with the letter from Clain Ballentine of the Metro Council. This survey will awe as a curing -board for diawmion at the April 27 meeting. I have ranked the actions I believe the Macro Council could best employ to assist in woridog towards more housing diversity. A 10001011 part Of the survey asks us to rank the five factors or roes that most hinder the development of low and moderate iocome housing in our City. Commissioners are urged to share with City staff at the April 21 meeting Weir cpiniooa on this issue. Staff will coataue to monitor actions taken by Iter Mara Council and state legislature an increasbg affordable housing in do suburbs. Attachments: 1. Later from Chuck Ballentine, Metro Council, 4W94 2. Survey form It Metropolitan Council R E CQ) E rV, s9 Aduerdbm mffim at enottotrt' . soeleW aid ettmha wnenud Issues and sohe m ARR 11 CITY:r- RLYN40LITH COMMUNI,li L%C-VELOPMNT DEPT. April 8,19% Attila Hurburt Community Director Plymouth, MN 35447 Dear Anne: bank you for agroeiog to participate in a discussion on housing issues with Metropolitan comma ruff and tedves of yyoouur communities. The meeting will be held on Wednesday, Ape 27, 9109-a ns, at do ple raw Hall, 9401 Fanbrook lane. We base invited cuff findMaple Grove, Plymouth, Brooklyn Park Minnetooks, Cbampfin, Rogers and Northaat Hennepin Huntana Council to get feedback on kinds of activities you think the Metropolitan Council should undertake or fotau on to help cities provide a more diversified housing stack. We will use the information to help us plan our work activities for the remainder of this year and beyond. Enclosed is a form "'d like to use a a starting point for our discussion. We distributed this at a recent anal Bhreprint forum to meauro opinion; of tical slat std officials about various le Council activities and barriers to providing diverse ho"opportunities. Complete it and bring to the meeting if you hlm and well see that your responses are Included in the survey results. On the 27tk we want to have an informal, in-depth discussion about heats included in the survey, or other idea you may have about how the Council could assist your community in providing a fordsbL: hmulo's or the unity for developing such housing. Idea and suggestions could1 elude research acs a im ldtiog financing tools or program, legislative initiatives and suplicy and This meeting is one of several similar discussions we are schedu" this spring, We also plan to meet with staff and elected officials in a.group of southwest Minneapolis suburbs, dties south and east of St. Paul, and the Housing and Community Development Committee of the Association of Metropolitan Municipalities. We look forward to a good discussion. Chuck Ballentine,•Diiector Office of Focal Arsistanoe ClAft Enclosure Mm Park Came 230 Fat FVth Street St. Pad. Mhuueaw 55101.1634 612 2916359 Fax 2916550 TDD 291-0704 A CE I ROPOMAN COUNCEL HOUSING ACT MES SURVEY 1Le Metropolitan Qoundl has I I g led a number of acdvitim to sift communklef io p mvidisg aside mp of hoodog. We argot to taegt:t our raotaca and eNoo to those aet[vities the communWas thiol ate the molt importaaL We'd Ths your hdp. Please cbeck whedw you ata IrOcal ®overOmeer staff Or Offidd county central dty fully develplied am d9 develoft dty feemteoft city or nud area state or ocher govornmmt level developer housing ads; foup other QUESnON L (BEGINS ON NE ff PAGE) PLFASE RANK FIVE POSSBii1B MEMOPOUMAN OOUNaL AMONS you thick would be mot helpful is aawdog the availsbk7ity of a div mftd affordable hooigg stack. Please reek your Anion To order with a OP for your Sat choice, and so on. R there is some activity you fed we deBnitslr shouldn't be involved in at all. Please isdi ete so nee to that number. Loil3dek pi M said aioop elk devebpem and others to devela. me —iddioe or a odai. z t propose or suppoet a dmw Ii d w =PAV-m 8isaft r4hommmat dw to mgdm replan t of bwemt muss aurtside seem of poverty oonomt -1 Z & Dtau W asadsfr sad Adel rar6baps Qoaued as wog & j LO 4 Ongveaa devebpas and laid a®dals to awrnpmmr acid eaasrsssend MW so, At bfiEft dedgpnsnst n *v p , ar develop a mold review process. L I Bgmd Moro HRA efforts to n hdaktYw ad Mat a pb*w *ps wdw br arfrbm dit migg pmoject4med Sadomi 8 aadf rates allocated to them. 1 b Through the Metro HRA, expand housing ehom for kowdnoeme families bydbbr asaapvuddas aotsmslbW a nd - Vpevt mvlem (a* day are, employment pbegal L eta) to ad" them if they voluotin%, eeloa- from seem of conceoaated povesty to and waban locations. Mab bm bW s toW whish would require that all MUSA oommwdties specify io their compete. . i plem ways to diversity their housing stock said world require aommuoWm to implem s nt the prograous and activities in their plans. Ll, s, eswm W pumas to help central aty reser pet to jobs len suburban empbymeat locatim by famiating more pvbliapeiv e, parmu ips of fmovortafbn praividM eatployea and social seevke agetudu 3 A O rPfmodrq<aav/ osahniasl aobmonar to does soft c Ado to ideodfy local badog melte develop anu mn ed strategies for mm mkng the supply of affordable hou ft and help secure prgect IM Mabe dos m djbr dlim g bs wwak far vubft by working with state jobs and training offs" business and eduatas to better match people with jobs nem where they Hie. 1L Arida mommsl hmbw dams to help cities identity their bordgg needs. 12 Dsxft and coded w dbvddk bmm ft p Wk b* ma *n pa run to support bel effoet: to praimote housio8 diversification and a bnWxl4. 7 13. P*d* Mmure l dggodm hwMW dfqudgw h=AW hawadr bsw d by aoamty or dry HRAs to reduce interest; acts to the faun M& then mddog bousiog units more affordable. (rhe Cmwg is am=* seeking legislative authority for this.) 13 14 Dswsbp a acmmamW steam"ff bides that atabMas a regiond'oommudty worm' for bousiog ant, type said temne bond on regional ne4 and shows how each community compares to the norm. pmovide technical aaistaooe to oommwmktiea to avast tbam in pevidbg dived6ed housing stock, as needed. uOdor (Plem specify) PLEASE TURN OVER FOR THE NEXT QUESnON) PIFASC RANI. THIS TDP 12VZ FACIPIM or hdkmm yw fad m aarm<b Impedbtg de deveJog mmt of kw and modmswQmome homing in 3M 1 L land ooze 2 A sate peopaty tas systm that esaatet local iiscal imeadver for b fp4ort boodog, 3. Paan sooett to sodd se vicat and support sysoemt for low amd modmate imoome bomobolds. 4. Lmk of allordable boudog dwmhq mmt a qm tse st the local lard. A Co EUVcdam cart 6 Lacd( 7. Tim local bumming review p umn S. Comtructim 6naaeiog Baso S. Emkoaamnl nwalsa m M Lack of commitment .by local elected ollieials to providing law and modam iocome b uft 11. Rurldigg.00des Z bduatty Pracdca and 13. Local lead use regulaeioarJaoa. 9 5 14.O mumer bouft ptallm ma - tivhst buys wast' 15. Lei of public fmadn for boudog amittaaoe programa I& Let of Incentives for local aff=dable houmiog efforts (&& tying sate or federal dogm for loed pwbor baoRmotion inipmamem tobousiRg 17. Poor sooert to retvicas and employment bmm of the traosportationllramit . IL Oder (phRm spe*) THANK YOU FOR COAG TM SURVEY. U you wish, tate the tmrvey witb you and mal it to us whin completed. Return envelopes on available. b. DATB: April 15, 1994 for Housing and Redevelopment Authority Meeting of Aped 21, 1994 TO: Anne Hudburt, Executive Director FROM: Milt Dale, Housing Specia4th SUBIBCT. COMMUNITY BUILDERS PROPOSAL Bruce Larson, President of Community Builders, a nos-poolit housing corpontion, is requesting consideration of $40,000 of Community Development Block Great (CDBG) money in 1994 to use in a Lease to Purchase Program. Basically this program is plumed to phase in lower income renters into home ownership. The $40,000 requested would be used to mbabilidto two residences in"City. Mr. Luson's April 8 latter to me explains due program in general while other arpportivo documentation provides further details. My initial response to this program is positive. I believe the approach is sound although untried in Plymouth. I have contacted Bernie Clurej, Projax Coordimror, of the Minneapolis Community Development Agency, who has had experiences with p qp ms of this stature. They have done a similar type program over the rust two years in Minompolis and he is more than satisfied with the results. They have had 14 peophh parocipate and only one drop out. He had anticipated a greater dropout rate. He feels drat good screening of applicants is an essential element to mating due program wort. It is my recommendation that a public hearing be Geld at the May meeting to consider reallocation of CDBG Fiscal Year 1994 funds to this request. I would further recommend the Mowing: 1. That city staff be given the autborhy to review houses up for caosWerldon prior to Purchase. 2. That applicants from the Plymouth First Time Homebuyer Progwm be gamed pnefemm in puechaft those boases rombi>idted with City money. 3. That Cly Builders error into a a*mcWAW coohm wftb the City indicating tlmt if Comaudty Builders fails to base and/or sell pmpades n6dilitamd with City funds to quslUW buyers in a reasonable flee, such properties wcald be sold and fimds returned to the City. 4. That all cooswuhon work comply wdb Davis -Baca mWh memo. S. That environmenW assedmenta would be provided by Communfty Buihhaa, as needed. 1. Besohaion (draft) 2. L w from Broce Lrson, 4/8N 3. Amchmeot A, Program Steps 4. Attachment B, Budget (2 pages) s . Pwra Description (2 paM) 6. Why Community Builders? 7 Lease to Purohase Program S. Mission Smtement 9 Boned Mambas 10. Description of Fannie Mae Lease - Purchase Mortgage Lcans comabklrjab OM %T-AV1lMd with West Naropin Human Services I- WOU April 8, 1994 Mr. Milt Dale, Housing Specialist City of Plymouth 34W Plymouth Boulevard Plymouth, Minnesota 55442 Dear Mr. Dale: Community Builders is a new 501 (c)(3) housing corporation established to increase the supply of long term affordable housing in suburban Hennepin County. Its Board of Directors is composed of people currently living in the western suburbs of the County. It is affiliated with Suburban Alliance, previously known as West Hennepin Human Services Planning Board, a 20 year old community based organization established through a joint powers agreement of its member municipalities including the City of Plymouth. (See enclosure for additional information concerning Community Builders.) As its first project Community Builders has chosen to undertake the Lease to Purchase Program This project was selected by Community Builders because it promotes homeownership. a value hP1d by both individuals and the greater community; it .provides long term affordability and it provides access to homeownership for people who would not otherwise have the opportunity. As pan of this effort we would like to purchase two homes in Plymouth which Comw:unity Builders would acquire, rehabilitate and then lease to two households for two Yam at which time the household would take over ownership of the home. Cot ummity Builders is planning to initially operate the program in four communities, Plymouth. St. Louis Park. Minnetonka and Mound. The goal for the first year of the program is to acquire 8 homes in these communities. During the following years we hope to expand the program to twelve homes a year and work with all 24 communities in the west suburban area. We currently have resolutions from St. Louis Park, Minnetonka and Mound endorsing the program. The Lease to Purchase Program is designed to assist lower income families with incomes from 40% to 6096 of median income who have certain barriers to homeownership such as poor credit rating% lack of downpayment, and poor work history. This group needs support to become successful homeowners. A more detailed description of the program in provided in the attachnem. Homes for the program will be purchased on a scattered site basis throughout the community based on price and condition. The homes will then be rehabilitated to local code requirements and be free of any problems which would jeopardize continued ownership by the new buyer during the first five years. Possible sources include HUD foreclosed property, bank foreclosure% the private market, etc. In no situation will Community Builders compete with 4100 Yemon Avenin South • St. louts Pally M6rKsoM 55416 • (614)940.5533/Fax: (614)90.7460 bouseholds seeking to purchase a home for their personal residence. Participants in the program would be recruited from local service providers. subsidized housing programs and local realtors. We are requesting that the Plymouth Housing and Redevelopment Authority consider assisting our Lease to Purchase Program with Rehabilitation Expenses and Soft Costs for two homes in Plymouth. The budget request is for $40,000 (520,000 per house) Attached is a program description of the FanaieMae Lease -Purchase Mortgage Loan Program4 both a capital budget and programmatic budget for the program, a description of the steps in the program and a narrative description of the Community Builders Lease to Purchase Program. Cornmunity Builders has been invited to apply to TCF for approval as a borrower under their lease/purchase program and are confident of approval. The organization Is also in the process of submitting applications to the Federal Home Loan Bank of Des Moines, the Minnesota Housing Finance Agency and the Hennepin County HOME Program. We have also submitted applications to the. Minneapolis Foundation and NSP Foundation for funding of the training component of the program. We are confident that we will be able to initiate the program during June of 1494 with acquisition and rehabilitation work taking place in July and August and occupancy by the first of September. We are prepared to meet with your representatives and will provide any information yourequest. Thank you for your consideration. Si ety, Bruce E Larson President canumnitv with West Hennepin Munn Services Community )guilders Lease to Purchase Program Project Milestones A. Complete Design of Program - April/May, 1994 Hire Staff - May/June. 1994 C. Initiate Activities to Acquire Housing - June, 1994 D. Conduct First Homebuyers Training Program for 25 Households - June. 1994 E. Identify First Participants to Participate in Lease to Purchase Program - July, 1994 F. Acquire First House (Plymouth) - July, 1994 G. Rehabilitation of First House - August, 1994 Acquire Second House (Plymouth) - August, 1994 H. Start First Homeownership Peer Support Group - August, 1994 1. Place First Lessee in Home - September, 1994 Rehabilitation of Second House - September,. 1994 L Served 75 Households with Homebuyers Training - March. 1995. K Have 8 Lessees in Lease to Purchase Home - June, 1995 4100 VWnon Avenue South 0 St LOUIS Perp, MN1Mote 55416 • (614)940•5533#m (614)949.7480 awl STEP D STEP IV AT rAQ MElfr A COMMUNITY BUILDERS LEASE TO iri3li OMSE PROGRAM PROGRAM STEPS HOUSING DEVELOPMENT OWNERSHIP DEVELOFMIW Community Sunders locates and proceeds with do t{on Commuoily Builders obtains a from the IOWA fflord" Housing and a grant from the HOME Provam Community Builders acquires property talion various undertalms ryrequirements Upon completion of rehabilitation work Community Builders arranges permanent Bm ning through a 30 - year &ed rate FannieMae Lease. Purchase Mortgage Loan The household is recruited to participate in the Homebuyers Training Program MW household in the A The household is determined to be eupie for the Lease to Pmrcbase Pham L The household develops an action plan describing do terms oftheir they mud &M to mese The housshold Fs Mae eLeaa-Pu M e Loan The household enters into a contract for dad with Community Builders which includes terms that the tenant may assume Community Builders first moripp within two Yom provift do household meets the terms negotiated by the household and Community Benders STEP v Daring the two year lease period the household will participate in tha iiomeowoeeship Pear Support Training Program, work to implement the terms of the agreement with community cl and aside a contribution toward the downpaymele'"M v The household msmts the terms of the agreement and assumes Community Sunders Brat mortgage with TCF on the property. The household would pay one-half of the other otplus one -bait the dosing costa. The the downpayment Wo one-half of the closing HoFamilyHousing Fun would d paid from great funds such as the LEASE PURCHASE PROGRAM BUDGET CAPITAL COSTS PER HOUSE ACOUISITION 79,100. REHABILITATION 20.= SOFT COSTS 106000 WEATHEREEATION 3,000 Low Income Weatherization Program SITE CONTROL 900 HOLDING COSTS/LEASE PERIOD TAXES $ S00/YR MORT. PAYMENT 000/YR PROPERTY MGMT. 180/YR PERMANENT FINANCING 76,000 REQUIRED RESERVES FannieMae Requirements ATTACHMENT B TOTAL PROGRAM SOURCE 632.800 PLYMOUTH CDBG 1606000 MHFA 80,000 HOME 2.4,000 LIWBP• 7,200 FAMILY HSG FUND 6,400 BUYER 52AW BUYER 1A40 FOUNDATION 608,000 FANNIEMAE LEASE -PURCHASE) 51000 FAMILY HSG FUND DOWNPAYMENT ASSIST52,000 16,000 FAMILY HSG FUND DOWNPAYMENT 2,000 16,000 BUYER CLOSING COSTS 3AW 27,200 FHLB/AHP DISCOUNT POINTS 1,600 12,800 FHLB/AHP OTHER COSTS HOMEBUYER TRAINING - USE THE TCF HOMEBUYER TRAINING PROGRAM HOMEOWERSHIP SUPPORT & TRAINING - SEE ATTACHED BUDGET ADMINISTRATIVE AND REHAB STAFF COSTS - SEE ATTACHED BUDGET 1994 BUDGET COMMUNITY BUILDERS LEASE/ TOTAL THREE YEAR BUDGET DEVM:P. i PURCHASE OPERATIONS PROGRAM EXPENDITURES PERSONNEL TOTAL SALARIES FRINGE BENEFITS TOTAL FRINGES 20,354.85 $43,585.05 $63,939.90 5,519.06 $10,644.38 $16,163.44 HILEAGE/TRAVEL 200-00 250.00 450.00 OFFICE SUPPLIES/EQUP. 950.00 1,500.00 2,450.00 COUP./MMBETING REP. 2,700.00 1,180.00 3,880.00 TRAINING 5,800.00 5,800.00 CONSULTANTS/CONTRACTED 5,000.00 5,.000.00 LEGAL SERVICES 2,000.00 5,000.00 7,000.00 CHILD CARE 100.00 150.00 250.00 AUDIT/ACCOUNTING SERVICE 500.60 500.00 1,000.00 POSTAGE/PRINT/COPYING 1,850.00 900.00 2,750.00 RENT/SPACE 445.88 1,000.00 1,445.88 PUBLICATIONS/MOBERSHIP 300.00 100.00 400.00 TELEPHONES 255.00 300.00 555.00 GENERAL INSURANCE 200.00 100.00 300.00 TOTAL OTHER 9,500.88 21,780.00 31,280.88 TOTAL EXPENDITURES 35,374.79 76,009.43 111,384.22 REVENUE FOUNDATIONS 33,000.00 x5,000.00 68,000.00 GOVERNMENT GRANTS 25,000.00 25,000.00 CONTRIBUTIONS 0.00 DEVELOPMENT FEES 14,400.00 14,400.00 INTEREST 400.00 500.00 900.00 HERS (In -Riad) 1,974.79 1.,109.43 3,084.22 TOTAL REVENUE 35,374.79 76,009.43 111,384.22 PROGRAM DESCRip'IION: The Lyse to Purchase Program is comprised of two basic components. One is the acquisition ad reltabilitedon of homes to be leased and subsequently purchased by the participating fam7ies. The general citrate® would be to establish a Revolving Fund to minimize the annual search for aegttisition/rehabtltatioa funds to continue the program. Funds would be graata/deierzed loans tied to a period of required affordability Community Builders would set up a fund to receive any proceeds available Brom the sale of the homes at the end of the lease period. They would then be used to purchase another home to be leased and then purchased The housing targeted for this program would be single family and townhomes with two or more bedrooms. The bousittg would be rehabilitated to bring them in line with local code requirements. Eftrt would also be made to ensure that all major systems would be good for ai least on year. Purchases would be done in conformance with local zoning requirements. To beep the cost of the housing affordable for both the program and the new homeowner every effort will be made to keep both the cost of acquisition and rehabilitation to a minimum. The goal is to keep acquisition costs to under 580,000 and rehabilitation costs to less than S20,000 Per house. The program will not compete with private parties interested in purchasing their own homes but will target abandoned and foreclosed properties or those which the owner is having difficulty selling. Slaw= The second component of the program is the service component This is that part of the program which will identify those who participate in the program and will provide support to the lessee and future homebuyer as they proceed through the lease period and complete the purchase of the home. Participants for the Lease to Purchase Program would be recruited from a first time homebuyers training program. This training will cover property selection, financing and ownership responsibilities. Participation will be limited to first time homebuyers with incomes less than the area median income of 549,600. Eligible families who are Lim-msted in pursuing homeownership but not ready and meet the program criteria will be considered for a lease agreement. Others will be referred to other existing programs available in the area. These would include the MHFA First Time Homebuyers Program, special programs by area banks, etc. Homeownership SuoQort Program This servioa wil provide ongoing ananclal counseling and trainin& home maintenance training and access to community resources. This will include the development of a corrective action plan which will die what will need to be accomplished during the lease period to achieve homeoarnenihip. In addition general problem solving sial training will be provided. Listening d2ls, boundary clarification and values clarification exercises will be included as part of this pmfasionally taa7itated support groups for partite will be provided that will: 1.)identify issues which affect the ability of people to continue to participate in the program and carry out their corrective action plans, 2.)allow for additional training, 3.)provide an environment to build sell -esteem and support networks. As the development of the group progresses they will oeoome more responsible for identifying and arranging their own training to meet the needs they have identified. Professional faalhation will be phased out as participants develop their own leadership. Professional group baltation will be provided by paid staff: Much of the training will be provided under contract. Efforts will also be made to use volunteers to do some of the training. LMK ZdM - Features The tenant will be required, during the 2 year lease payment period. to set aside a sum of money which will be used for downpayment, out-of-pocket closing costs, 1st year razes and 1st year insurance payment. This will be identified in the corrective action plan. To enable the lessee to accumulate these funds in a two year, period Community Builders will provide assistance for the monthly lease payment. This monthly tease payment made by the lessee will be equal to the monthly FM on a long term mortgage with a 5% downpayment. In addition Community Builders will provide a 2% downpayment gift. A separate downpayment account will be established for each tenant in a federally insured depository institution in which the tenant's monthly contribution toward the required down payment is deposited. Community Builders will comply with all state and federal statutes governing these accounts. A periodic statement will be provided to the tenant indicating the cumulative balance in the down payment account. WHY COMMUNITY BUILDERS? West Hemepin HumeriSW= Community Builders was established in 1992 by West Hennepin Human Services Planning Board (WHHS). It was established in response to a growing awareness that the high cost of housing was causing more and more people to depend on public services such as food shelves and energy assistance to meet basic needs. This situation had resulted from the withdrawal of federal support for affordable housing programs. Also contributing to this was the elimination of tax incentives for the private sector to invest in rental housing. An approached needed to be developed that not only addressed the lack of affordable housing but enabled people to be more self sufficient and contributing members of the community. The approach was to establish a delivery system for creating affordable housing in suburban Hennepin County. One approach for creating affordable housing delivery system is through the establishment of community based nonprofit housing development corporations. The purpose of these organizations is to provide affordable housing not to generate a profit for the owners of the corporation. And with representation on the Board of Directors the community is assured of input in the development of this housing. This also assures that the housing developed and owned by these corporations remain affordable fora longer period of time and are better able to link with necessary community services to address other problems residents may face. Community Builders is one of these organizations established by a community group whose purpose and mission is to develop affordable housing for families and individuals in suburban Hennepin County. A unique characteristic of this orgsttization is that it is established by suburban communities to serve suburban communities. While Community Builders is a relatively new organizations its ties with the community are longstanding. Through its affiliation with WHHS, an organization established through a joint powers agreement of its 20 member municipalities, it has 20 years of experience in working with in this area. This experience includes a successful collaboration with the City of Hopkins on a Transitional Housing Rehabilitation Grant and.a successful application with the sane city on a. HOPE I Planning Grant for converting public housing to homeownership. It also operates the Conservation/Repair portion of the Energy Assistance Program providing a variety of energy related housing repairs through subcontractors, and administers an emergency home repair program for the City of St. Louis Park funded by the CDBG Program. The commitment to affordable housing for low to moderate income families by the community based Board of Directors of Community Builders combined with the experience and skills of West Hennepin Hunan Services will lead to the successful expansion of affordable housing in suburban Hennepin County. 4101) Vemon Avenue Scuth • St Louis Park, Mhusata 59416 • (614)940.553&TeL. (614)949-7480 yon« LEASE TO PURCHASE PROGRAM Fknxpin Hunan SpNca The Lease to Purchase Program is the first housing effort undertaken by Community Builders. Initially it will be operate in the communities of Minnetonka, Mound and St. Louis Park but will be expanded to additional suburban communities at a later date. Ownership is a key to long term housing affordability. A long term mortgage protects a family from fluctuations in housing costs, and the homestead credit insulates a homeowner still further from major and. unexpected increases in monthly costs. It is also a goal for many communities who believe that homeowners will be long term residents who think of their homes as investments to be protected. The Lease to Purchase Program offers a way for lower income families to move into ownership of existing housing. It is designed to serve those families who need support to become successful homeowners, as well as to serve those communities who would like to stabilize their existing housing stock and expand the market for smaller, older "starter° tomes. Commu ity Builders will establish a Revolving Fund to provide a permanent source of funding for the acquisition and rehabilitation of homes in the area. This fund would receive any proceeds available from the sale of the homes at the end of the lease period and recycle them for future acquisition of homes to be leased and purchased. A key element of the program is its Homeowership Peer Support component. This component will incorporate training, community involvement, and group support to help the lessee/buyer to gain the skills, knowledge, and self-confidence necessary to become a successful homeowner and community member. PROGRAM GOAL:- Increase OAL: Increase the supply of long term affordable housing in suburban Hennepin County for low and moderate income families. STRATEGY: I. Acquire moderate cost housing which will be rehabilitated to meet local code requirements and require minimum maintenance for up to ten years. IL Identify through first time homebuyers training programs low to moderate income families needing additional support to remove barriers preventing their ability topurchaseahome. Ill. Provide ongoing training and support during the lease periud of the progi-drn to pa:tizipating families which will enable t:ivrt to 5-10C.031"111) purc`:asc and maintain a home. 4100 vemon Avenue South • SL Louls Pally AtMtrWWW 55416 • (612)950.5533ffa u (614)949.7410 5'4WM MISSION STATEMENT West Hennepin Human swAces To acquire, improve and preserve decent, safe, affordable housing for very low, low and moderate income individuals and families through the development of model programs which empowet families to participate in the development of these programs and take control of their lives; to educate .both community leaders and the larger community to be responsive to the need for affordable housing; and to develop relationships between housing and human services which increase self-esteem and promote self-determination. WHY: We believe decent, safe, affordable housing provides the necessary stability to a family enabling the family to overcome challenges it may face and tr .ke a contribution to the community. WHO ARE SERVED: This corporation serves very low, and low to moderate income individuals and families. This includes the homeless, elderly, those with special needs, the unemployed, those receiving assistance and the working poor. HOW WE DO IT. Together. Representatives of Community Builders joining with concerned residents of the community including low income families and individuals will work towards the creation of low income affordable housing. This partnership creatingsbe vision for the housing projects will assist Community Builders in ensuring that the mission and goals will be followed. Community Builders staff will collaborate with staff from involved cities, state and federal programs as well as private parties and foundations to make the vision a reality. Working together, the group will maximize the amount of quality, affordable housing available at the least cost to the community. 4100 Vemon Avenue South • St Louis Park„ MMvwwU 55416 • (614)940.5533/FaL. (614)949.7480 awwas BOARD MEMBERS FRANK ALTMAN, CHAIR COMMUNITY REINVESTMr1PT FUND MINNETONKA RESIDENT BRUCE E. LARSON, PRESIDENT WEST.HENNEPIN HUMAN SERVICES ST.LOUIS PARK FLORENCE BOGLE IIVIERCHURCH COMMUNITY ASSO. MINNETONKA RESIDENT GUY DETIEFSEN MINNETONKA RESIDENT JULIE EITIREIM• ST. LOUIS PARK RESIDENT BILL Him, PLYMOUTH RESIDENT LORETHA SUGGS* PLYMOUTH RESIDENT DICK LUNDY ST. LUKES PRESBYTERIAN CHURCH MINNETONKA ADRIAN JOHNSON POINTS WEST REALITY DEEPHAVEN RESIDENT DR. JAMES MCDONOUGH ST. LOUIS PARK RESIDENT MARY PERKINS WEST HENNEPIN COMM. SERVICES HOPKINS RESIDENT JULIE ECKSTROM• MOUND RESIDENT PATTY STRONG WAYZATA RESIDENT THERESA NEALE• PLYMOUTH RESIDENT REPRESENTING LOW INCOME HOUSEHOLDS 41w vemon AM= sous+ • 5t Louts Park, Mbrxsote 55416 • (614)040.5531iffee (614)949.7480 o"w" 1ASn OUbM m P Lmee to loves income families with an option to bay. Fannie Mae parobau SD"w, fuel inroad to queliblog and will permit a our ummpdm families whentboa>reaadyto Tbebuy do become. it group mast charge the a rent that aonsLb of the moa psindpal teeesb tar. and iasmance (m pay. menta on the first mortgage. plus an esfra 4imount that is atmaried fora ssviogs —ant in which uiamtm fwnrnnEach irt scheduled eavbrgs._ no, 1sep o d tbtbtsseirtebiyefter eana Tie aaum don or ales portae of fbe home&say is established when fbe begins renting. aesmtng fie tenants of an afford• able home when they have seen- mnbnted snfficlentfends tae the down L In addition, non- profits ehoald provide home boyar counseling• w_dYusingte 6leader nTie non. financial •b 0 and unenambered reserves to melm principal, tagA tax paya n LO -fie ibspo bo JIira-ininmmdRentallocales4euethetenant will be now SuAlvals. noPurpose iscash s of this financialrequiesm tito- ib4129fioanaaUy Capee bk of MOM timely mortgage pay. Moab in an the tenant stops c. ord end stmalting nwith exp nce in successfully develo or v man - lo me s; fina and coun- and ddemonstrated evidence of local community support for its lease. Lease panchan agreement. Under a leasepnrcbase agreement between the nonprofit and the tenant. the tenant may assume the nonprofith fust mortgage within a e¢hedWed period and upon most- agreed uponagorouudiitons. The lequirchases nego. ttiatedmd signed by theemenonprofit and the tenant. and Fannie Mae assumes no liability or responsibil- ity for the negotiation or provi- sions of the leesepurchase agreement Anont pnegaaf roatbns. Non• proRte ehooldp•eaaali}j tie bn- ent(s) beiose entering into a ljass. oz tonth ability to make timely "rent" of lose pay menti to fienonprofit I dist tie nonproofrit is able toi1ibtib,st Payment. ma PmielNee tiattamto be roqualiiieid tie lender imm& di stely prior to mortgage si sump• tion to mems that ti m its most nor Tim; will s antail now cesd t' reports and odes vasdicatiom necessary to "dorm an acceptable muds, writing and property analysis. lbmw mond dy payment. The monthly payment meds by fie tenant must include an amount o f iicient to mramod all of tie non- hothe np im4Interest. tesesiosnrace, and any other sesealeenb), ae well as an amount to be set aside as a aontn#- budon toward eventual down poly mens The amount of the down Payment contribution must be rut ficient to enable the tenant to make a 5 percent doon-wny ypayment and, infor closing b some s of the knee Period. I. DATR: April 14, 1994 for Housing and i edevdopment Authority Maedgg of April 21, 1944 TO: Aooe Huriburt, Swoutive Director FROM: Milt Dale, Housing SpeciawAc SUBJECT: IIVFORMATJON rIlMS A. FAMELY SKY-SUMC18NCY STBBRING CObIIAMM Denise and I have mut with St. Louis park HRA staff members, Dave Hagen, Cindy Strombmg said Sham Anderson to give direction to due steaft committee as well as attending their first two committee meetings. This committee has over 20 members and both meetings have been well attended. Committee members repreaeot Hennepin Ted mical College, the banking industry. Tergal, community aghadon, Interfaith Outreach and Community Partners, Luodgme Bros., child can providers and west Hennepin Human Services as well as several Section S participauta. Our feet two committee meetings have been primarily educational and informational In nature. we have established a goal for the committee to complete an 'action plan' by July 31, 1994. B. FEW 71M8 HOM®UYBRS PROGRAM it appears the bast way to promote a City program is to publish an article in the Plymouth City newsletter. A short article on page one of the April edition, has resulted in over 160 inquiries for applications. This is easily the best maponae we've had to this program. The deadline for submittal of an application is May 13, so we have yet to determine bow many applicants have gefrwi ret incomes to secure adequate mortiW for pmhasleg housing in the City. C. RMIARMAnON ORAWVLOAN PROGRAM An article on this program alae appwrod In the April Plymouth News. We have received strong hrtatest from reaidems with nearly 20 eegamta for applications as of today. D. HAMMM RBSIMCBS On April 6, Barb Scuums, Planning Supervisor, said I amt with Jon Thompson, Chief bnodve Officer. and Jim Ryberg, Dhaaor of Operations, for Hammer Residences, Inc. as to their need for a now inma diate care facility for mamaUy retarded in Plymouth. This facility would consist of 6 bedrooms and be for older mentally ratatded persons who have bees Hammer diems for a number of yaws. They are hoping to obtain property through a donation from either the City or some non-profit orgon. I believe we have other possible locations should the City/IOtA elect to asst a in this effort. Should the HRA be interested in assisdag Hammer Residences, I can inform Mr. Thompson to appear at our May meeting said wWWa more fully their needs and long ranp Plans. in M jab SUMMARY STATISTICS REPORT DATE! 04/05/94 SELECTION CRITBRIAs ALL TENANTS W= INCLUDED I. BEAD OF HOUSEHOLD COMPOSITION. (0 08 ALL BEADS IS IN PAR8llT MES) A. THERE ARE 157 RUM OF HOUSEHOLD. (MAY BE MORE THAN 1 IN A UNIT.) THERE ARE 157 BDUSBHOLDS. 8. AGE: UNDER 30 30-39 40-49 50-59 60-69 70-79 80(+) NO: 40 68 25 8 4 7 gPCT: 25.5 43.3 15.9 5.1 2.5 4.5 3.2AVERAGEAGE: 38.7 C. SEX: MALE: .22 ( 14.0) FEMALE: 135 ( 86.0) D. SINGLE PARENT HEAD -OF -HOUSEHOLD FAMILIES ASSISTED: MALE: 2 ( 1.3) PEMALB: 112 ( 71.3) E. ELDERLY HEAD -OF -HOUSEHOLD FAMILIES ASSISTED: OBR IBR NO: 0 22 28R 3BR 13 4BR 5+BR PCTs 0.0 14.0 0 8.3 0.0 0 0.0 0 0.0 P. NON -ELDERLY HEAD -OF -HOUSEHOLD FAMILIES ASSISTED: OBR IBR NO: 0 4 2BR 3BR 4BR 5+BR PCr: 0.0 2.5 99 19 63.1 12.1 0 0.0 0 0.0 G. RACE/ETHNICITY: UNITS: 138 ( 87.9) AMER IND/ALASRAN NATIVE: 16 ( 3 ( 10.2) 1.9) ASIAN/PACIF ISLANDER• 0 ( 0.0) HISPANIC: 1 ( 0.6) NON -HISPANIC: 156 ( 99.4) H. MISCELLANEOUS: 62 YRS OR OLDER: 16 ( 10.2) HANDICAPPED: 7 ( 4.5) DISABLED: 15 ( 9.6) FULL-TIME STUDENT (18 +): 14 ( 8.9) NONE OF THE ABOVE: 108 ( 68.8) PHA Manager 3.62 (c) 8644 * City of Plymouth SIAB0IRY STATISTICS RIVORT (Cont)•: Dates 04/05/94 Pages 2 II. ALL MEMBERS COMPOSITION: (PCT IS PCT OF ALL MEMBERS) A. THERE An 396 NEMESES. S. AGE: 0-12 13-17 16-29 30-39 40-49 167 42 48 60 29 42.2 10.6 12.1 20.2 7.3 AVSRAGZ AGB: 22.8 C. SEX: ALL - MALSs 132 ( 33.3) ADULTS - 19JA s 34 ( 8.6) 18 +) D. RACE/ZTENICITY• NHITZ: BLACK: AMER IND/ALASKAN NATIVE: ASIAN/PACIP ISLANDER: OTHER: HISPANIC: 3 ( 0.8) E. MISCELLANEOUS.- 62 ISCELLANEOUS: 62 YRS OR OLDER: ZANDICAPPZD: DISABLED: POLI. -TIME STUDENT (18 0: NONE OF THE ABOVE: 50-59 60-69 70-79 80(+) 10 5 9 6 2.5 1.3 2.3 1.5 FEMALE: 264 ( 66.7) FENWAs 153 ( 38.6) 336 ( 84.8) 51 ( 12.9) 9 ( 2.3) 0 ( 0.0) 0 ( 0.0) NON -HISPANIC: 393 ( 99.2) 20 ( 5.1.) 8 ( 2.0) 21 ( 5.3) 17 ( 4.3) 335 ( 84..6) P. FAMILY SIZE: 1 2 3 4 5 6 7 8 9 10 11(+) NO: 27 52 53 20 4 1 0 0 0 0 0PCT: 17.2 33.1 33.8 12.7 2.5 0.6 0.0 0.0 0.0 0.0 0.0AVERAGEFAMILYSIZB: 2.5 G. RELATIONSHIP CODE: (AVG IS AVG PER HOUSEHOLD) HEAD SPOUSE ADULT UNDER 18 POSTER LIVZ-IN 18+ PT STDNTNO: 157 18 11 208 0 2 0AVG: 1.00 0.11 0.07 1.32 0.00 0.01 0.00 PHA Manager 3.62 (c) 86-94 • City of Plymouth SUMMARY STATISTICS REPORT (coat): III. INCOIS3/BXPBN888: Date: 04./05/94 Page.- A. age: A. INCOME ERBARDONN: INCOME BEFORE ADJUSTMENTS) DSPEN UNDER 2500- 5000- 7500- 10000- 12500- 15000- CH CARE 2500 4999 7499 9999 12499 14999 17499 17500 (0NO: 0 3 84 25 19 6 4 16PCT: 0.0 1.9 53.5 15.1 12,.1 3.8 2.5 10.2AVBRAGSINCOME: 9187 400 AVERAGE INCOME AFTER ADJUSTMBNTB: $ 8159 B. INCOME SOURCES: AVG IS AVERAGE FOR THAT ITEM) P8 SS SI/D G CS IHOLDSWITH: 2 14 112 0 7 0PBRCBNT: 1 1.3 8.9 71.3 0.0 4.5 0.0AVGAMOUNT: 2962 7143 6454 - 0 2954 0 N E M F N UHOLDSWITH: 19 0 0 O 45 1 PERCENT: 12.1 0.0 0.0 0.0 28.7 0.6AVGAMOUNT: 2028 O 0 0 12140 4264 Al HOLDS KITH: 23 PERCENT: 14.6 AVG AMOUNT: 156 C. INCOME CATEGORIES AT MOVB-IN: INCOME CATBGORIBS AT R88XAM: VERY LOW INCOME: 49 ( 31.2) VERY IAN INCOME: 93 59.2) LONER INCOME: 53 ( 33.8) LOWER INCOME: 40 25.5) OVER INCOME: 0 ( 0.0) OVER INCOME: 0 0.0) EXCEPTIONS: LOVER INC FAMILIES REQUIRING LI EXCEPTIONS: 0 D. RUNTS (Averages per Household, except for URP) TOTAL TENENT PAYMENT: 204.0 TAT RBNT0 175.7 HOUSING ASSISTANCE PAYMENT: 405.9 UTILITY REIMBURSEMENT PAYb1W: 4.0 (Avg for only Hshlds with URP) SECURITY DEPOSIT: 144.6 8. BXPBNSES: (AVG IS AVG PER HOUSEHOLD WITH THAT ITW) PHA Manager 3.62 (c) 86-94 * City of Plymouth HANDCP DSPEN ELDERLYMEDICL BOLDS WITH: 16 CH CARE IRA ASSIST DBDUC DEDUC PERCENT: 10.2 16 10.2 0 0 0.0 0.0 122 77.7 36 22.9AVGAMOUNT: 1063 1911. 0 0 814 400 PHA Manager 3.62 (c) 86-94 * City of Plymouth SUMMARY STATISTICS REPORT (coat): Date: 04/05/94 Page.: 41 IV. UNITS/CERTIFICATES/VOUCHERS (PCP is from to- :s. ea file except where A.. UNIT REPORT:' (Calculated only if report includes a single project) UNITS ON FILE: 0 PERCENT 700+ UNITS TOTAL ISSUED/ UTILI- OBR IBR 2BR 3BR 4SR S+BR 1. UNITS IN ACC: 0 0 0 0 O 0 0 0.0) 0.0) 0.0) 0.0) 0.0) 0.0) 2. LEASED: 0 0 0 0 0 0 100.0 0.0) 0.0) 0.0) 0.0) 0.0) 0.0) 3. OUTSTANDING 0 0 0 0 0 0 OR EXTENDED: 0.0) 0.0) 0.0) 0.0) 0.0) 0.0) 4. BALANCE (OVER 0 0 0 0 0 0 UNDER ACC: 0.0) 0.0) 0.0) 0.0) 0.0) C 0.0) B. PROGRAM UTILIZATION: Includes ALL units. Use Rpt 013 for more detail.) D. CDNTRACT RENT UNDER 200 200-299 300-399 PCT OF NUMBER PERCENT 700+ UNITS TOTAL ISSUED/ UTILI- 19 AVAIL. AVAIL. LEASED ZATION SECTION 8 CERT: 23 88..5 157 87.2 SECTION 8 MR: 0 0.0 0 0.0 VOUCHER: 3 11.5 0 0.0 PUBLIC HOUSING 0 0.0 0 0.0 TOTAL: 26 100.0 157 85.8 C. GROSS RENT 0 PCT: 34.4 61.8. 1.9 0.6 UNDER 200 200-299 300-399 400-499 500-599 600-699 700+ NO: 0 0 0 S 58 74 17 PCT: 0.0 0.0 0.0 5.1 36.9 47.1 10.8 AVERAGE GROSS RENT: 608.8 D. CDNTRACT RENT UNDER 200 200-299 300-399 400-499 500-599 600-699 700+ NO: 0 0 0 24 9.9 19 15 PCT: 0.0 0.0 0.0 15.3 63.1 12.1 9.6 AVERAGE CONTRACT RENT: 580.8 E. UTILITY ALLOWANCE UNDER 25 25-49 50-74 75-99 100-124 125-149 150+ NO: 54 97 3 1 2 0 0 PCT: 34.4 61.8. 1.9 0.6 1.3 0.0 0.0 AVERAGE UTILITY ALLOWANCE: 28.1 PER Manager 3.62 (c) 86-94 * City of Plymouth 81SY STATISTICS REPORT (Cont): V. UnoxmG IIQ8ORMATION-. TOTAL A. LEASB-IN-PLACE FAMILIES: 3 Date: 04/05/94 Page: 51 ELDERLY NON -ELDERLY 2 ( 66.7) 1 ( 33.3) B. CERTIFICATB/VOUCEBR SIZE VS ACTUAL UNIT SIZE: ACTUAL SIZE: C. EXCEPTION RENTS FOR CERTIFICATES: OBR ISR 2BR 3BR 4BR S+BR OBR: 0 0 0 0 0 0 CBRTIF/ IBR: 0 26 0 0 0 0 VOUCM R 2BR: 1 0 111 0 0 0 SIZE: 3BR: 0 0 0 19 0 0 4BR: 0 0 0 0 0 0 S+BR: 0 0 0 0 0 0 C. EXCEPTION RENTS FOR CERTIFICATES: D. CUPMRISOM OF GROSS RENT TO FMMRS: OBR IBR 2BR 3BR 4BR S+BR 10$ HXCHPTION AUTHORIZED: 0 1 1 0 0 0 206 EXCEPTION AUTHORIZ9D: 0 0 0 0 0 0 ANNUAL ADJ. FACTOR APPLIED: 0 1 3 0 0 0 CURRENT GR OVER PMR: 0 1 0 0 0 0 1-301r OVER PMR: 0 1 0 0 0 0 10-201k OVER FMR: 0 0 0 0 0 0 MORE THAN 200 OVER FMR: 0 0 0 0 0 0 D. CUPMRISOM OF GROSS RENT TO FMMRS: B- NUMBER OF ASSISTED FAMILIES WHOSE GROSS RENT EXCEEDS PAYMENT STD: OBR IBR 2BR 3BA 4BR S+BR Vti1CHBR: 0 0 0 0 0 0 AVBRAGB t OVER PS: 0.0 0.0 0.0 0.0 0.0 0.0 NUMBER OF ASSISTED FAMILIES WHOSE GROSS RENT EXCEEDS PAYMENT STD: 0 F- NUMBER OF ASSISTED FAMILIES WHO, BECAUSE THEIR GROSS RENT IS LESS THAN PAYMENT STANDARD, RECEIVE A SAVINGS: OBR IBR 2BR 3BR 4BR 5+BR VOUCEDR: 0 0 0 0 0 0 AVERAGE SAVINGS: 0.0 0.0 0.0 0.0 0.0 0.0 NUMBER OF ASSISTED FAMILIES RECEIVING SAVINGS: 0 PHA Kanaapr 7.9.7 Irl as -04 i r4ty nF D1 nwm.H OBR IBR 2BR 3BR 4BR S+BR CURRENT FMRS (AVG): 0 546 716 945 0 0 GR > 1.ixpmR: 0 0 0 0 0 GR > FMR c 1.1xFDRt: 0 0 0 0 0 OR. - PMR: 0 5 1 0 0 GR > .9xFMR c FMR: 0 8 0 0 0 GR c .9xPMMR: 0 4 99 16 0 0 TOTAL: 0 26 112 19 0 0 B- NUMBER OF ASSISTED FAMILIES WHOSE GROSS RENT EXCEEDS PAYMENT STD: OBR IBR 2BR 3BA 4BR S+BR Vti1CHBR: 0 0 0 0 0 0 AVBRAGB t OVER PS: 0.0 0.0 0.0 0.0 0.0 0.0 NUMBER OF ASSISTED FAMILIES WHOSE GROSS RENT EXCEEDS PAYMENT STD: 0 F- NUMBER OF ASSISTED FAMILIES WHO, BECAUSE THEIR GROSS RENT IS LESS THAN PAYMENT STANDARD, RECEIVE A SAVINGS: OBR IBR 2BR 3BR 4BR 5+BR VOUCEDR: 0 0 0 0 0 0 AVERAGE SAVINGS: 0.0 0.0 0.0 0.0 0.0 0.0 NUMBER OF ASSISTED FAMILIES RECEIVING SAVINGS: 0 PHA Kanaapr 7.9.7 Irl as -04 i r4ty nF D1 nwm.H SUNN=Y STATISTICS REPORT (Cont): G. UNIT TYPES: WITH: BLACK: AMER IND/ALASKAN NATIVE: ASIAN/PACIF ISLANDER: OTHER: PHA Manager 3.62 Date: 04/05/94 Page: 6 VOUCHER PUB SOUS 0.00 0.00 ALL OWNERS 34 156 4.59 2 SINGLE FAMILY: 4 ( 11.8) 6 3.9) 0 DUPLEX: 0 c 0.0) 2 1.3) 3 GARDEN: 4 (. 11.8) 146 94.2) SIGSRISE: 0 0.0) TOmmOUSE: 1 0.6) S. HOUSING TYPES: LEASED NOT LEASED IND GROUP RESIDENCE: 0 0 CONGREGATE: 0 0 OWN MRXUFACT./RENT PAD: 0 0 SINGLE ROOM OCCUP: 0 0 SEARED HOUSING: 0 0 FAMILY IN CO-OP: 0 0 MOD HER CONVERTED: 0 0 RENT MMANUFACT.&PAD: 0 0 OTHER SUBSIDY: 0 0 PBC PROGRAM: 0 13 OVERISSUND: 0 0 FLAGGED: 0 0 OTHER: 0 0 I. TURNOVER: CERT NOD RES AVG TIMES USED/LEASED: 0.41 0.00 J. CANCELLATIONS OF CERT/VOUCHER: OVBRINCOiS: 2 50.0) SOUSING NOT LOCATED: 0 0.0) NO LONGER INTERESTED: 0 0.0) OTHER SUBSIDY: 0 0.0) OBLIGATION UNMET: 0 0.0) TERMINATED SNORE 60 DAYS: 0 0.0) OTHER: 2 50.0) X. HAP/LEASS CANCELLATIONS: OWNER UNCOOPERATIVE: 0 0.0) TENANT UNDESIRABLE: 0 0.0) TENANT DECEASED: 0 0.0) NO LONGER IN JURISDICTION: 0 0.0) NO LONGER INTERESTED: 0 0.0) SUBSTANDARD SOUSING: 0 0.0) NO LONGER ELIGIBLE: 0 0.0 SALE OF PROPERTY: 0 0.0) PHA INITIATED: 0 0.0) OTHER: 1 100.0) L. ONNER DATA: THIS REPORT ONNERS W/CONTRACTS: 25 FAMILIES UNDER LEASE: 156 AVG FAMILIES PER OWNER: 6.24 WITH: BLACK: AMER IND/ALASKAN NATIVE: ASIAN/PACIF ISLANDER: OTHER: PHA Manager 3.62 Date: 04/05/94 Page: 6 VOUCHER PUB SOUS 0.00 0.00 ALL OWNERS 34 156 4.59 2 8.0) 4 ( 11.8) 0 c 0.0) 0 ( 0.0) 0 c 0.0) 0 c 0.0) 0 c 0.0) 0 c 0.0) 3 12.0) 4 (. 11.8) c) 86-94 City Of Plymouth m m a a O y Z 3 of F; W lw z Q a o y s Lu z a 3 0 THE ADJACENT DOCUMENT WAS SUPPLIED BY AGENCY NAMED BELOW. DURING THE REGULAR COURSE OF BUSINESS, TO BE FILMED BY ACS/IS ACCORDING TO NATIONAL almaAl1 AR lCrAanA.onc Os Atfrvvuvwrra_+rnn_ nin...r_..._. _............._._. ...