HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 02-19-2004STAFF REPORTS MEETING OF FEBRUARY_ 19, 2004
CITY OF PLYMOUTH HRA
AGENDA
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
THURSDAY, FEBRUARY 19, 2004 7:00 p.m.
WHERE: Council Chambers
City of Plymouth
3400 Plymouth Boulevard
Plymouth, MN 55447
CONSENT AGENDA
All items listed with an asterisk (*) are considered to be routine by the Housing and
Redevelopment Authority and will be enacted by one motion. There will be no separate discussion
of these items unless a Commissioner, citizen or petitioner so requests, in which event the item will
be removed from the consent agenda and considered in normal sequence on the agenda.
1. CALL TO ORDER - 7:00 P.M.
2. CONSENT AGENDA*
A. Approval of the December 18, 2003 HRA Meeting Minutes and the January 22, 2004
Joint HRA & City Council Meeting Minutes
B. Plymouth Towne Square. Accept Monthly Housing Reports.
3. PUBLIC HEARING
A. 2004 Community Development Block Grant Action Plan.
4. NEW BUSINESS
A. Revision to the Plymouth HRA First Time Homebuyer and Rehabilitation Loan
program guidelines.
B. Reallocation of funds for Kids Care.
C. Quest Development — Potential site for development.
5. ADJOURNMENT
F7-
I'D
MEMORANDUM
To: Anne Hurlburt & Jim Barnes
From: Kathy Boesen, Managing Director, Plymouth Towne Square
Data: January 9, 2004
RE: PTS Monthly Report for December 2009
January Newsletter and January Calendar attached
November financial. statement attached
OccupancylMarksting
December Move Outsllns
309 two bedroom moored in the middle. of December.
December Vacant: Un -leased Apartments-
301 two-bedroom had new carpet and vinyl installed and is ready to rent.
December Vacant. Leased AoadEnents
114 two-bedroom has been rented to a couple from Grand Rapids, MN. Estimated
move in time is the middle of January.
132 two-bedroom has been rented as of the middle of December. They will move in
slowly until their big move -in in Fabruary.
330 one -bedroom is going to be occupied. by a single resident from a two-bedroom
331). Estimated move in is the beginning of January.
The husband of one of our new residents passed away on December 31".
Administrative
Re -verifications and apartment showing continue.
Plarrt.Operatione
Summit Fre Protection was here to do the annual check on the Wet System.
About 45 malfunctioning garbage disposals were replaced in December throughout the
building.
A roof (ceiling leak) has appeared again in apartment 206. This apartrnert is in the '
crook of the buckling where we had roof repairs done and heat tape placid. Mike, the
caretaker, checked the a!tic space above this apartment and did not sae a problem.
The company who did the roof repairs has been called. Another massive leak has
appeared in the Activities Room ceiling. Milan found that water was traveling down the
fresh air intake. All are in the process of being repaired.
The gyporete floor in apartment 902 is breaking apart under the flooring. Our carpet
layers found this problem when they pulled up the old kitchen vinyl to replace it. It is
also breaking up in the living room and the entrance hall to this apartment. After the
holidays all the loose gyperete will be Neared out to get to the sub floor so that an
inspector from the city can assess the problem. We will move this resident to the
vacant apartment. next to her while they work on this apartment..
Resident Services
Two Girl Scout Troupes were here on the Wh and 111° to sing Christmas Carols for the
resident and some Christmas cookies.
Our annual holiday party was on December 9M. This was a catered dinner with roast
pork and beef, along with all the fixings. it was catered by the Lookout Bar and Grill of
Maple Grove. Staff helped with the serving for those who needed help. Tickets were
sold for $3.00 and the remainder of the bill was split between the Resident Fund and
Grace Management. -Special music was provided by one of their favorite entertainers,
Ruth Johnson on the piano. A special gift for everyone was sitting at their place setting
Wang with several gift certificate door prizes at the end of the party. Everyone had a
wonderful time and everyone left with a small gift Gene Grace, Jody Boedigheimer and
her husband Dennis were also guests.
NJ
ASSETSe
m
PLYMOUTH TOWNE SQUARE
BALANCE SHEET
NOVEMBER 30, 2003
CURRENT ASSETS
PETTY CASH
CHECKING — OPERATIONS
SAVINGS—SECURITY DEPOSIT
A/R — TENANTS
INTEREST RECEIVABLE
PREPAID WORKERS COMP
PREPAID PROPERTY INSURANCE.
TOTAL CURRENT ASSETS
FIXED ASSETS
LAND
LAND IMPROVEMENTS
BUILDINGS
FURNITURE & EPUIP—GENERAL
FURNITURE & EQUIP—HSKPG
EQUIPMENT—COMPUTER
ACCUMULATED DEPRECIATION:
A/D FURN &.EQUIP—GENERAL
TOTAL FIXED ASSETS
NON—CURRENT ASSETS
INVESTMENTS—WORKING CAPITL
INVESTMENTS—CAPITAL IMPRV
INVESTMENTS—NEW DEBT SERV
BOND DISCOUNT
BOND ISSUANCE COSTS
UNAMORTIZED START—UP COSTS
UNAMORTIZED ORGANIZ COSTS
ACCI.1M AMORTZ—ORGANIZ COST
NON—CURRENT ASSETS
TOTAL ASSETS
500
19,523
35.,750
5,078
7,600
2,043
2,486
459,247
75,323
5,663,963
2207,399
10,484
7,658
1,904,643)
1,044,464
290,661
86,635
51,113
36,975
2,930
155,166
95,878)
72.,980
4,.51.9,431
1,572,066
6,164,477
G
PLYMOUTH TOWNE SQUARE
BALANCE SHEET
NOVEMBER 30, 2003
LIABILITIESe
CURRENT LIABILITIES
ACCOUNTS PAYABLE TRADE 20,729
ACCRUED INTEREST 12,503
401K WITHHOLDING PAYABLE 135
ACCRUED REAL'ESTATE TAX 23,760
ACCRUED MISCELLANEOUS 3,233
ACCRUED SALARIES/WAGES 22,606
TENANT SECURITY DEPOSITS 33,720
TOTAL CURRENT LIABLITIES 96,686
LONG TERM LIABILITIES
BONDS PAYABLE 4,750,000
TOTAL LONG TERM LIABILITIES 4,750,000
TOTAL LIABLITIES 4,846,686 \
EQUITY=
CONTRIBUTED CAPITAL 1,000,000
RETAINED EARNINGS 271,635
TOTAL EQUITY 1,271,635
CURRENT YEAR INCOME (LOSS) 46,156
TOTAL LIABILITES & EQUITY 6,1.64,477
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LI
ELAINE GEIS
BETTIE ALLISON
JANE MOORE
BEN KELLEY
DENISE PELZ
BILL BURMASTER
HELEN THOMPSON
MARGARET LEDER
DELORES ENGMAN
EVELYN ANDERSON
VNIAN SMITH
JOHN GEIER
MARGARET PEARSON
JANUARY BIRTHDAYS
1
3
6
9
10
10
12
13
15
16
17
21
24
29
Apt.. 118
Apt. 119
Apt. 210
Apt. 308
Apt. 123
Apt. 101
Apt. 232
Apt. 318
Apt. 106
Apt. 325
Apt. 212
Apt. 214
Apt. 116
Apt. 206
ti
HOLIDAY GIVING
Thanks to all of you who gave to the Holiday Giving Project
that was sent to the Home Free Women's Shelter in Plymouth.
You donated over $300!
They were extremely thankftt. Thank you for sharing!
GET-TOGETHER'
There will be not be Get-Together's -for the next few months
because no one has signed up to be in charge.
Sign. up will be on the bulletin board.
HOLIDAY DECORATIONS
Volunteers are needed to take down
the holiday decorations
Meet in the dining room
on Monday, January.-!
th at 9:00 a.m.
2004.1
Welcome to our new residents in 304. Nina and Matvey Portnoy.
The heart in the comer of your rent envelope stands for "Heart and
Memorial Fund." This fund is used to purchase flowers for residents who
have been in the hospital or a memorial for a resident who has passed
away. If you wish to donate cash) please just send it in the envelope
along with your rent check.
The recycling bins in the garage are all labeled for what each one holds.
Waste Management notified us that other trash is being thrown in with the
newspaper. They call this contaminated trash and it has to be hand sorted.
We do not watt to be charged extra for this happening all the time
so please be extremely careful as to what you are throwing in each bin.
i!
Flashlights have been placed inside the phone box in both elevators. Also
there is a list with the office and caretakers numbers. The phone in the
elevators will always work even if the elevator goes down.
i! -
When calling our caretaker Mike, please use the cell phone `,
number — 763-458-4143 to call him.
I
0
O
19
GAMES WORD SEARCH
T N B A C K G A M. M O N A V D S
U M J H P 1 C T 1 O N A R Y T U
M 0 E T R O U B L E N J S T J Z
X S C R A B B L E S F O R U V P-
S C Z B' T S G 0 X L R 1 P N R V
L A R C H E. C K E R S U L O W F
I T N F S J X T Y K B M J N L E
K T R 1 V 1 A L P U R S U i T Y
W E G K U X T D V D E A 1 P I A
B R S C X F T W 1 D Z L Z E W H
U G C S Y S H P F M T Y V S S T
E O P E R A T 1 O N H P T E G Z
F R V X J A G G R C C W U Z 0 E
N I B G M O R Z F U C V A K E E
B E H G Y W G J Z G F R U P S F
D S.•F K C A G N G F S E E Y G R
WORD LIST
BACKGAMMON OPERATION SORRY
CHECKERS PICTIONARY TRIVIAL PURSUIT
CHESS RISK TROUBLE
LIFE SCATTERGORIES UNO
MONOPOLY SCRABBLE YANKEE
b OATMEAL WORD SEARCH
T N A V D S M U F F I N S
E U M J T U M 0 J T J` 0 C
Z K P I Z Z A X S V A 0 0
P Z A 1: B T L S G P 0 0 N
X L N C E R E A L K R V E
L B C 8 R 0 W N I E S U S
W F A R U I I E N C F• S J
X R K E T R S B M J A N E
S K E A W G G P K U X F T
D V D D E A I E P I B S C
X F T W I D Z L R Z E w u
WORD LOT
am a CEREAL o PANCAKE
BREAD 0 CoOlUES 0 PE
BROWNIES 0 CRISP * a=CRUST
oil In * FACIALSCRUB a SCONES
CAKE 9 MUFFINS e SOAP
rW -A
January 2004
Monthly Planner
P"M M Cabnm Creme PWs m /7200001
1 2 3
DegmBe 03 Febrwry 01
i 11 i W1 F R R M T W T P RT 7A0 PM DINGO 8:30 AM Tai Chi Chili 6A0 PM 500 Cuda (Sp.)
1 —= Now Yah Day 4:00 PM Poker
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9:00 AM Chweh 8:30 AM Tai Chi Chih 9:00 AM Dtal•A.111Aa 11:30 AM Tai Chi Chili 10:00 AM Resident 8:30 AM Tei Chi Chili 6:00 PM SW CaM (Set.)
Service 9:00 AM Decorations lirrmmshmi 10:00 AM Bible Study CoR«a 4:00 PM Police
Taken Down 9:30 A ClubMcWsCub 1:30 PM 3/13 Cads DR 7:00 PM BINGO
7.00 PM SCHWBINGO 'S 5:00 PM
7:00 PM DINGO
HAPPY FFrT FOOTCARE
11 12 13 14 15 16 17
9:00 AM Chweh 8:30 AM Tai Chi Chili 9M AM Did-A•RMa 8:30 AM Tai Chi Chih 10:00 AM Resident 8:30 AM Tai Chi Chili 6:00 PM 500 Cards (Sat.)
Serke 7:00 PM DINGO AMhml 10:00 AM Bible Study coffee 4:00 PM Poker
9 30 ASM Club 1:30 PM 3/13 Cads DR 7:00 PM DINGO
SAO PM Cads(Tue.)
18 19 20 21 22 23 24
900 AM Clough 8:30 AM Tai Chi Chili 9A0 AM Dial•A-Ride 8:30 AM Tsi Chi Chih I still PM RESIDENT 8:30 AM Tai Chi Chile 8:30 AM -10:00 AM
Service 3.00 PM SCHWAN% fforemCshop) 10:00 AM Bible Study MEETING 4:00 PM Poker PANCAKE
7:00 PM DINGO 9:30 AM Mena Club 1;30 PM 3/13 Cads DR 7A0 PM DIN00 BREAKFAST
Marlin IAlber King Jr. 5A0 PM Cards(Tue.) NO AM COFP M r` 9:30 AM Blood Praplre
Wrlb Anniversary 6A0 PM 300 Cards (Sat.)
25 26 27 28 29 30 31
9:00 AM Chwgb 8:30 AM Tai Chi Chili 9A0 AM Dial•A•RMe 8:30 AM Tai Chi Chih IOAO AM Resident 8:30 AM Tai Chi Chili 6A0 PM 500 Cada (Sal.)
gawks 7A0 PM DINGO dwalMcW 1000 AM Bible Study 4:00 PM Poker
g:30 ASM Club 1:30 PM 3/13 Corole DR 7A0 PM DINGO
SAO PM Cads(Tue.)
P"M M Cabnm Creme PWs m /7200001
as
MEMORANDUM
To: Anne Hurlburt & Jim Barnes
From: (Kathy Bowen, Managing Director, Plymouth Towne Square
Date: February 12, 2004
RE: PTS Monthly Report for January 2004
February Newsletter and February Calendar attached
December financial statement attached
OccupanaylMarketing
January Move Outsllns
331 two bedroom moved into a one -bedroom (330) at the beginning of January.
114 two bedroom was occupied on January le.
January Vacant Un -leased Apartments
331 two-bedroom has not been rented.
January Vacant. Leased Apartments
301 two bedroom has been rented, the couple will move in during the end of February.
Administrative
Re -verifications and apartment showing continue. We receive about 4-6 applications
each month to add to our wait -list We will investigate advertising costs for the local
papers to encourage additional applications.
Minnesota Certificate of Rant Paid (CRP) fonts were sent out to all residents by the end
of January.
Plant Operations
Power Clean Carpet Cleaners were here on January & to start cleaning the common
areas. hallways and stairways.
Our contract painter painted apartment 331. Cost was $479.25.
Crackad and broken ceramic his in the front entrance was replaced on the le. n
A resident in apartment 302 temporarily moved into apartment 301 while new gyperete
and sub -floor were replaced in her kitchen and hall entrance. Carpet and kitchen vinyl
was also replaced in this apartment. Total cost for carpet and vinyl was $1.840.82.
Two specialists analyzed a sample of the gyperete and they both concurred that the
gyperete was not moist enough when it was mixed. It was then poured onto a dirty
sub -floor. Therefore the gyperete would -not adhere to the dirty floor and became brittle.
Cost to tear out old gyperete. sub floor, haul away and replace with new was $2985.00.
Sullivan Utility Services were here on January 131h to jet 5 drains on the west side of the
garage. Cost $312.50.
Resident Services
January 5d` all the holiday decorations were taken down and packed away. Many
residents helped with this event.
January 12" Josephine's Women's Apparel was here with their winter sale items.
January 2.1" residents served Noon Lunch. Three employees from the City of Plymouth
came to support the resident's monthly fundraiser luncheon. Everyone enjoyed the .
food. .,
Resident Meeting was on the 22nd. Jim Barnes came for the meeting. Birthdays for
December and January were celebrated.
Pancake Breakfast along with Blood Pressure Check was on the 20
0 171 Ll I DR elk
46
V'
February 2004
Monthly Planner
form bs Ca order Crmror Pluson 01lt01700s
3 4 S 6 72
9:00 AM Church 8:30 AM Tai Chi Chip 918 AM Did -A -hide 8:30 AM Tai Chi Chih 1000 AM Residaa 8:30 AM Tai Chi Chih 610 PM SM Cards (Sat.)
Service We PM Med•Sare I 1 1010 AM Bible Study Colfea 4:00 PM Poke'
IRfortualkwal 9:30 AM Mass Club 1:30 PM 3/13 Cards DR 7:00 PM BINGO
SUPER BOWL Me"ISCHWAN'S
510 PM Cards(Tue.)
3-00 PM HAPPY FEET FOOT CARE
7:00 PM BINGO
GROUNDHOG DAY
8 9 10 11 12 13 14
91D AM Cburcb 8:30 AM Tai Chi Chih 9W AM Dial -A -Ride 8:30 AM Tai Chi Chih 10:00 AM Reeideat 8:30 AM Tai Chi Chih MW PM 500 Cards (Sas.)
Service 7:00 PM BINGO 911111MeWINEML9:3030 10:00 AM Bible Study Coffee 4:00 PM Poker
AM Club 1:30 PM 3/13 Cards DR 7:00 PM BINGO
5.00 PM Cards(Tue.)
15 16 17 18 19 20 21
910 AM Church 8:30 AM Tai Chi Chih 9.10 AM dal -A -aide 8:30 AM Tai Chi Chih 10:00 AM Resident 8:30 AM Tai Chi Chip 6:00 PM 500 Cards (Sat.)
Survive 1 s00 PM VALEN- twocervamol 10:00 AM Bible Study Cora 4:0p PM Poker9:3030TINE'S PARTY Clubmen%
T
ClubAMMrns 1:30 PM 3/13 Cards DR 7:00 PM BINGO
7:00 PM BINGO 5:00 PM 5:30 PM CET
U.S. PRESIDENT'S TOGETHER
DAY
22 23 24 25 26 27 28
9A0 AM Cbireh 8:30 AM Tai Chi Chih 2AR AM Dial -A -Ride 8:30 AM Tai Chi Chip 1:00 PM RESIDENT 8:30 AM Tai Chi Chih 8:30 AM -10:00 AM
710 PM BINGO ansmL111112111 10:00 AM Bible Study MEETING 4:00 PM Poker PANCAKE
9:30 AM Meds Club 1:30 PM 3/13 Cards DR 7:00 PM BINGO BREAKFAST
5'00 PM QMWTUC') ASII WEDNESDAY W0 AM COFFEE 9:30 AM Blood Pressure
6:00 PM 300 Cards (Sat.)
29
91D AM Cbumb
Mares
S M TWT F S S M T W T F S
Serviceh s s 13 -1s
s a s s• ss 7 s• so .. u u
11 1! Is 1• Is M 17 I• is I• 17 1s b 70
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form bs Ca order Crmror Pluson 01lt01700s
A. NOTE FROM YOUR CARETAKERS
Just a little reminder...
4d
After washing your car in the garage, please do not sweep
sand down the drain. Sweep it up and dump it in the
trash. We have had trouble with clogged drains and
sweeping dirt into them only aggravates the problem.
DO NOT EVER POUR OIL OR ANY OTHER LIQUID
down the garage drains. We just had our drains
professionally cleaned because they were plugged.
Regular light bulbs can go in the trash.
Do not send glass or newspaper down the trash chute.
Recycle in the garage.
If you do not own a toilet plunger, please purchase one to
keep on hand for those unexpected emergencies.
Sometime it only takes 1 or 2 plunges to clear it.
Please recycle your own laundry containers. Do not leave
them in the laundry rooms.
This is everyone's home, please respect it and the rights of
your neighbor's by helping us take care of it.
J
MARK YOUR CALENDARS FOR
MARCH ST" AT 1:30 P.M.:.
The famous Manityn SeLLens
wiLL be bene!
She is an awavb-winning antist who
sings Bnoaaway, pop, countay ana
gospel music whiLe pLaying the piano.
We one vent' pnivilegeb to have hen
ententain as. Don't miss hen
penj:onmance.
Please feel knee to invite
a/oun j:amiLaf ana fnienbs.
WANTED: SEAMSTRESS
Resident's are you bored with your everyday chores, washing
clothes, ironing, dusting, vacuuming, dishwashing, cooking etc. Well
if you are in need of part time employment and have sewing skills we
have just the job for you. If you are interested in taking over as our
in-house seamstress, please let Kathy know.
I
l
19
A NOTE FROM ETHEL LARSON IN 323
I have enjoyed sewing for others for almost as long as we've
lived here but Tve decided its time to call it quits. I'm
growing older or maybe lazier. Sewing had its perks. I met
lots of people and I never had to wonder what to do each
day. It's been fun!
P.S. I'm still finishing jobs I've promised to do. I'll get there!
THANK YOU ETHEL LARSON!
As many of you know we have been blessed with our very
own in-house seamstress since PTS opened. We want to thank
you Ethel for always being there for us with your needles -
pins -thread -scissors -tape measure and -sewing machine.
We know every stitch was sewn with love •
and we truly have appreciated your talents.
Enjoy your retirement, you deserve it!
t ?p DID YOU KNOW?
r Chuck Pursley *our tax man, will be here again in February, March and April
to do your taxes.' THERE ISNO CHARGE.. Sign-up will be posted on the
L
bulletin board.
r The office always has post cards of PTS for sale - cost is 50¢ each.
For the correct time and temperature call 612-673-9050.
r Correction for the new directory — The new phone number for our new
residents in 114. Vivian and Owen Foss, 559-6317 not 559-6371. Whoops_!
r We sell quarters on Mondays and Fridays from 10:00-12:00 in the dining
room if you need them for you laundry.
LENT
February 25th— April 10th
Lent helps Christians prepare their spirits for Easter, the day
Jesus rose from the dead. Lent begins on Ash Wednesday and
lasts for 40 days because Jesus fasted for 40 days. This is a
time to look inward to examine our lives and souls. Lent is
meant to bring us closer to God and to others.
t-, t t
a 1.1 T a r
YOURE T l•T•+ v y.
Tl.t•.+ PARTY
1
All residents of PTS are invited to a Valentine's Party
1*
v
on Monday, February I So at 1:00 p.m. ow
Refreshments served - Valentine Card exchange
ENTERTAINMENT — David Allen
Tease bring a signed Valentine Card to exchannellll
Kyou bring a card. You can take a card home.
FEBRUARY
PHYZLIS SLATTERY
MEL WYNKOOP
TFIELMA PAINE
MARVEL JOHNSON
MIKE PELZ
JIM GRANGE
SAM HAWKINS
BEVERLY LEACH
EARLLUND
DAVID KATSNELSON
j JEAN VON ARX
JODY WYNKOOP
BIRTHDAYS
1 Apt. 329
6 Apt. 213
7 Apt. 227
8 Apt. 226
10 Apt. 101
11 Apt. 220
1.2 Apt. 132
23 Apt, 105
23 Apt. 221
25 Apt. 218
27 Apt.. 326
28 Apt. 213
PLYMOUTH TOWNE SQUARE
BALANCE SHEET
DECEMBER 31, 2003
ASSETS:
CURRENT ASSETS
PETTY CASH
CHECKING - OPERATIONS
SAVINGS -SECURITY DEPOSIT
A/R - TENANTS
INTEREST RECEIVABLE
PREPAID WORKERS COMP
TOTAL CURRENT ASSETS
FIXED ASSETS
LAND
LAND IMPROVEMENTS
BUILDINGS
FURNITURE & EQUIP -GENERAL
FURNITURE & EC-e.1IP-HSKPG
EQUIPMENT -COMPUTER
ACCUMULATED DEPRECIATION:
A/D FURN & EQUIP -GENERAL
TOTAL FIXED ASSETS
NON-CURRENT ASSETS
INVESTMENTS -WORKING CAPITL
INVESTMENTS -CAPITAL IMPRV
INVCSTMENTS-NEW DEBT SERV
BOND DISCOUNT
BOND ISSUANCE COSTS
UNAMORTIZED START-UP COSTS
UNAMORTIZED ORGANIZ COSTS
ACCUM AMORTZ-ORGANIZ COST
NON-CURRENT ASSETS
TOTAL ASSETS
500
8,000
36,365
4.,963
11,400
1,863
63,091
459,247
75,323
5,663,963
207,399
10,484
7,659
1,922,644)
1,044,464
294,786
114,766
51,113
36,9'75
2,930
155,166
96,151)
4,501,431
1,604,049
6,168,571
PLYMOUTH TOWNE SQUARE
BALANCE SHEET
DECEMBER 31, 2003
LIABILITI.ES:
CURRENT LIABILITIES
ACCOUNTS PAYABLE TRADE 11,715
ACCRUED INTEREST 25,006
401K WITHHOLDING PAYABLE 134
ACCRUED REAL ESTATE TAX 225,920
ACCRUED MISCELLANEOUS 900)
ACCRUED SALARIES/WAGES 695
TENANT SECURITY DEPOSITS 34,581
TOTAL CURRENT LIABLITIES 97,151
LONG TERM LIABILI.TIES
BONDS PAYABLE 4,750,000
TOTAL LONG TERM LIABILITIES 4,750,000
TOTAL LIABLITIES 4,847,151
EQUITY:
CONTRIBUTED CAPITAL 1,000,000
RETAINED EARNINGS 271,634
TOTAL EQUITY 1,2271,634
CURRENT YEAR INCOME (LOSS) 49,786
TOTAL LIABILITES & EQUITY 6,168,571
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TOTAL WIM I mm I.m9 _ 7.IM O,aR 6,051 19,04 ..9,1m - 11,191 5-0u U,w 110% - 169111
rII_
m lll,lm
ILIImI11 r011E IirE
ICOR ZION=
m IC WAS ame imicion 31, 1007
JY FIB M 111 m 7m 691 6m UP RI m9 19 TIo
Wnlnm
OILII100-ELECTOR 1,542 1,109 I'm 1,070 I'm 1,010 2,I33 I'm I,lo 7,w 1,710 JAW 10,101WILITIm-11TO 6 90 191 m 310 In IN In Iq On m NI Ill m I,OmWILITI" 0.171 1,526 1,700 I'm 1,510 1,126 111 511 I'm 1,510 2,557 1,277 4,699
10 & OTILIIIEO 6,111
r0,
47 O,"I Siam 7,101 3,64 ^11111 3,1110 SAN 33,330 1,171
N
6,164 31,011
LIMN!
3L9nmi4e n 711 Is I9 IIO 26 661aEmlmonin111m4ri111
MI9
y.
Il0 177 126 133 177 2,4H
MIL LlEmlm III 6m 35 ....a 111 - 39 .. 364 . In
W
226 14 . Iq 26 3.14
EEMIm 6 I11EmREe
Coll= LAWS 101 103WILEIm6EEm45SUPPLIES116770a55Inm110964wI1641,711IEMIm6I1IIIEM1,191 1,115 7,269 1,199 5,112 1,017 1,761 1,109 2,131 I'm 6,M 1,001 71,640EMMImOIm1lift1617mmmn117IIT302427013,092WICiomm11E76111,106 651 711 2,164 I'm III 640 1,067 111 11,14myIVAM1,147 3,1u 2,7m 11,011 3,571 1,973 110 7,111 7,011 6,In 6,94 x,159ITIS• ITII 101 100 10 009 113 111 111 119 49 157 1,010 in 5,111Rn/ RSIEOm ill 3111 m in In 175 I4 Il0 24 171 1,011EDICmmlIV101flfLAINCMWMIBMI,lm --- 711 1,716 951 116 750 750 111 915 11110 m5 11,316
TOTAL WIM I mm I.m9 _ 7.IM O,aR 6,051 19,04 ..9,1m - 11,191 5-0u U,w 110% - 169111
rII_
m lll,lm
V
1111111" scala
ISE wllElf01
011 m vim 11w LI>Oi111, 7603
1111 R0 w 0" Ica 101 ML 1" 0 0L1 111 IEC m
080E INNO414111/1106
NIM1111ot 11,wo 11,001 II'm AM An 0,110 0,511 11,60, 10,00 m AM 0,w0 7u.m
IIIII1IIAf1a L'14 74 90 711 711 111 110 74 711 14 111 711 3,1A
4L IEIOIO/ MI D,110 0,14 10,54 11,110 1,,14 0.711 0,110 0,710 11,14 11,74 AM 0,110 719,713
11IIs111100i0N013+Innaz.
OAIEII "110 O 0011 100 1,10 2,10 7,120 7,160 1,160 7,160 7,1w 7,160 1,160 7,IY 7,110 1,560 7s,m
tmm9 EYEIIE 17,01 11,651 71,111 12,513 12,107 17,101 0,911 12,101 17.50 11913 17,565 17,93 119,RI
000/0099 05 1RE 1,111 1,150 1,10 0,110 11,0"1 ul
Ism
R1
rIs,70
171 at 121 111 1140101 11.11"
711,711101ALIAIEHIw110919,"0 71."0 101 Is,012 12,9n s%m
10,0"
jNm Is,u1 Is,m muf
MR OIE71116 Ells 11,110 131 Aug 51,10 60,s60 017 01,117
Iwll
11,1" 0,10 0,139 03100 111,14
11AQ90011A11YiR41EMul3,5w 7,011 Nat 601 0,011 0,"1 7,310 I'm 1"11 3,120
V
i
9111 Mflo E m16E
Imes mmE9
091 TR 1E11 E1ew IEtE110 71. 1013
m FO m 91 961 60 la m eD XF ON IEE M
1391 F101 IEORa11Tls
q ITa IIe81YE018
6,01
3,700 3,101
x3,100
997
8,256
0;2
0,311
1,193 1e,1671 11,6911
09IST80/ 41137) 101(17) 10,1251
31,23
a 091Ta IOIOIEI910
17.00) 4,ln) (0,125)
710
11,1251 (0,1371 (4,177) 137,061
AM era FL01
loom
3,316 1310131
muu•
n,20
113 IIE1 M 6 420 EUEeeE3
166,1191
0193-eiwT IF mH n0 111 311 nl 211 316 316 210 310 311 no 211 3,301
11=16Tle1 11,018 loom 0,00 0,00 11,101
IB,311
18,00 11.000
loom
0,00 0,00 loom
x0,310
loom 18,00 346,001
MIL m 112-1119 6 Om 18,210 ll,n0 le,n9 11,311 0,311 I'm 0,119 11.216 11,210 319'M
IIS OOIIIm/Im1191ilmll
1[Lm17 91TIIIIE 9% 13,6311 1,910 19,301 11,163 13,010 17.033 In,1371 10,301 9,311) 1,167 99017) 113,1131
ALfA4116EM19111E 1,131 11711 1,030 Pill 13311 1.691 Il,ln) logo 321 107) 3,319 111 10,063
IIEI0in 7" 1317) 110 11,1111 6,036) ell III WIII 711 Inl 1,86 19011)
11T4 U 11,1331 770 3,999 6,199 3,90 1,913 00393 117,1461 0,29 01121 161117) 600131 1,39/1
OTa 1111E 167/011) 1,00 161110) 6179 (7,93) 11,996 3,110 19,79 110,190) 11,21 17,1231 (611631 11313191 (11,311)
1811111Wool: 001 $MICE ",111 13,10 n.3T3 9,611 33,210 $1,110 19,130 (n,616) now 13,071 11,913 7,991 113,110
00T 6fl19il3/44110 FM (31,90) 133,1131 13!,7631 116,3171 10,0911 (11,911) 119,12) (11,38) (11,00) 111,3111 (19,231 (11,3111 (?71,3191
EI 10311 nN 18TE00) 111191 11,7161 6,01 3,063 17,670 997 M 131,031 loom 1,193 1e,1671 11,6911 19,2131
09IST80/ 41137) 101(17) 10,1251 11,1371 16,1231 17.00) 4,ln) (0,125) 16,007) 11,1251 (0,1371 (4,177) 137,061
AM era FL01 11930) (11,4411
aom• mmn •,•ann
3,316 1310131
muu•
111137
nan•u
16,031
m••m
13,1331 (33,101)
ann ••nun tat•am
Isom 1301331 IIl,Wl 113,1191
aon nu•m ••man
166,1191
0
MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447
DATE: February 11, 2004 for Housing & Redevelopment Authority Meeting of February 19, 2004
TO: Plymouth Housing & Redevelopment Authon' //
FROM: Tit Jones, HRA Specialist throu: !f es, Housing Program Manager and Affitirlburt,
Executive Director
SUBJECT: Public Hearing on Community Development Block Grant (CDBG) Program for 2004 with a
Recommendation to the City Council
The Department of Housing and Urban Development (HUD) has preliminarily allocated 017,000.00 in CDBG
funds to the City of Plymouth for the 2004 program year that will begin on July 1, 2004. This amount is a
57,000.00 decrease from the 2003 program year allocation. In order to determine the funding needs for fiscal
year (FY) 2004, staff evaluated the mid -year progress of FY 2003 CDBG funded activities. The following chart
shows the FY 2003 goals, as submitted to HUD, along with our present progress:
2003 CDBG ACTION PLAN GOALS AND PROGRESS:
Gosh Progress mode through 2003 Budget Egwxded as Bdaece as of
1213112003 0 lL3112003 12/31/2003
Provide 8 Housing Rehabilitation 8 Hawing Rehabilitation 286,196.26 • 91,974.70 5194,221.560
Loans and 4 Small Repair Grams Loans and 2 Small Repair
Grams made
Assist 8 First Time Homebuyers S homebuyers assisted 228,851.24 • S123,778.95 S105,072.290
with deferred loans
Assist 1 - 2 developments with 1 unit completed 548,188.02 • S7,040.00 541,148.020
the developroem of affordable
rental / owner -occupied units
Assist 4 - 5 families with day care 3 households served 11,938.710 S 1,829.30 10,109.41 •
subsidy throush GMDCA
Provide homeownership 103 households served 13,000.00 0.00 13,000.00
programs to 170 households
through CASH
Provide services to 261 renter 137 households served 7,500.00 50.00 57,500.00
households through HOME Line
Provide self-sufficiency 33 households served 59,000.00 5786.40 8,213.60
counseling for 35 households
TRAILS
Provide transportation services to 10 seniors served 53,000.00 0.00 S3,0u0.00
30 seniors through PRISM
Exmess
Assist 60 homeless and near- 10 youth served 4,000.00 50.00 58,000.00
homeless youth through YMCA
Provide services to 23 at -risk IS youth served 53,500.00 0.00 3,500.00
youth through Fairdly H
Assist 4 families through day care 0 households served 54,000.00 50.00 54,000.00
subsidy throw h Kids Care
Administration of CDBG Administration Activities S27,948.50 • S9.502.66 S18,343.940
TOTALS: I S651,022.73*, 234,912.01 5416.110.72•
The budget for these activities includes unexpended funds from FY 2002 andlor program income received to date.
3fi•
Stag' anticipates that the goals of all activities in the 2003 Action Plan will be met prior to June 30, 2004, the
end of the program year. Staff expects that there will be unexpended funds remaining in the TRAILS activity.
The TRAILS activity will have carry over due to these services costing less than budgeted. Any unexpended
funding will be carried over into the 2004 program year budget and will be available for TRAILS.
FUNDING RECONN WNDATIONS FOR CITY PROGRAMS
Over the, past two years, the First Time Homebuyer program has assisted an average of 9 households per year.
The program .maintains a constant waiting list, with 32. households ctmrer dy on the waiting list. The Housing
Rehabilitation program has, averaged 10 loans per year for the past two years. This program also maintains a
constant waiting list, with 10 households currently on the waiting list A subpart of the Housing Rehabilitation
program is the Small Repair Grant program. Thro+igh the Small Repair Grant program the HRA has assisted an
additional 3 households per year over the past two years. Both program generate program iocome from the
repayment of loans. Over the past two years, program intone has averaged 547,795.00 from First Time
Homebuyer and 581,975.06 from Housing Rehabilitation. However, since interest rates have started to go back
up and nwst of our existing clients bad already refinanced, we are expecting that the program income generated
during the 2004 program year will be much lower then the 2003 program year. Thus, staff is anticipating
525,000.00 of program income for both the First Time Homebuyer and the Housing Rehabilitation progarns.
In the FY 2004 budget, staff recommends providing 1125,000.00 to the First Time Homebuyer program and
120,000.00 to the Housing Rehabilitation program. This recommendation is based on the tremendous need for
both program discussed above. In addition, staff proposes to not fund the Affordable Housing Development
activity and provide only 52,000.00 in funding to the TRAILS activity, since staff expects that there will be
unexpended funds remaining in these activities from the 2003 program year going into the 2004 program year.
For the Affordable Housing Development activity, all remaining funds.would be allocated on a first-come first -
serve basis until funds are depleted This procedure would allow the flexibility needed to provide funding to
viable projects as they present themselves instead of having one request deadline per year.
In addition, staff also recommends increasing the fending for administration. CDBG regulations limit the
amount of fundsthat can be spent on administration to no more than 20 percent of the total allocation,
563,000.00 for FY 2004). In the 2001 and 2002 program years, administration was allocated the maximum
amount; however, the expenses totaled only half :he budget. bn.:ine 2003 program year,.no fiords were allocated
for admhustration, so the carry-over could be spin: down. Staff believes that this carryover will be spent down
by the end of tie 2003 program year, so staff is requesting that $25,000.00 be budgeted for the 2004 program
year.
Nig P-9— PMposedAcdWV Esataraatd 2003 tea 20N Fandieg turd Amount
Funds Canted Earimared Reoammeudaaio Amdabie
Oren as 2002 Rvgrvm as
Income
Housing Provide loans to 8 income- 50.00 25,000.00 S 120,000.00 5145,000.00
Rehabilitinim Loan eligible households to
program rehabilitate their home.
Provide 4 small nVair
First Time Provide loam to 8 income- 0.00 25,000.00 125,000-00 15010W.00
Homebuyer loan eligible hanebuyers to assist
Prop= with down payment and
closing costs
W
10)
Batrsbtg AgPosedAedit Fsdarded2003 2004 20NFmdhW ToolAaroaat
Funds Carried F.stbaamed Reeaatmatdas6o Awfloblr
Oar to 2002 hap as
Lacme
Affordable Hoa mg Provide loans andfor grants to 20,000.00 0.00 0.00 520.000.00
Development develop afordabk housing
units.
TRAD.S Provide self-sufficiency 5,000.00 50.00 52.000.00 57.000.00
counseling services to 35
household; receiving Section 8
feat assistance.
CDBG Administration 0.00 50.00 525,000.00 525.000.00
Administration
Totail:1 I S25MMJ SSOMMAJ 5272,000.00 5347.000.00
FUNDING RECOMMENDATIONS FOR PUBLIC SERVICES
CDBG regulations limit the amount of funds that can be spent on "public service activities. Pu.,:ic service
activities are those activities 'which are directed toward improving the community's public services and
facilities" to serve low- and moderate -income clientele. The regulations stipulate that public service funding
may not exceed 15% of the City's total allocation ($317,000.00), plus 15% of the previous year's program
income (5170,824.68). For the 2004 program yen-. Plymouth cannot fined public service activities including the
TRAITS activity in excess of 573,173.70. Staff recommends allocating 52,000.00 to TRAMS and $45,000.00
among the other six public services, which is slightly less than IS% of the 2004 allocation without program
intone. By limiting the public service allocation to 547,000.00; the remaining 2004 program year allocation
will be available to meet the additional priorities of the HRA, which are identified in the HRA's newly adopted
Strategic Plan. These priorities include but are not limited to providing assistance to first time homebuyers
through a HRA sponsored First Time Homebuyer program and assistance to existing homeowners through a
HRA sponsored Housing Rehabilitation program.
Staff mailed out applications soliciting public service proposals to 12 social service agencies and non-profit
organizations. A copy of the solicited agencies/ organizations is attached. The HRA received applications from
six organizations, of which all six are current CDBG recipients. Staff evaluated and ranked the individual
proposals based. on the following criteria:
Program/Project Feasibility: "Project Overall Feasibility" refers to the likelihood that the proposed project
may be completed within the timeline proposed and within reasonable parameters of risk
Organizational Capacity: "Organizational Capacity" refers to the likelihood of the organization being able
to complete the proposed project.
Leverage of Other Funds: "Leverage of Other Funds" refers to the extent to which the proposal
demonstrates the involvement of local partnerships and the extent to which other funds are leveraged;
including contrikutions from philanthropic, public, and private organizations and/or local employers, as well
as in-kind contributions.
A. summary of each application and the staff ranking of the applications is also attached. The total amount of
public service funds .i.. -q+ -sled was $67,000.00. Staff is interested in funding as many of the proposals as
a possible, while allocating, at feasible amount to each activity. Staff is, however, aware that funding is extremely
limited. This process would allow us to fund five agencies at the minimum amount requested and would fund
amily Hope Services at 25.096 of their minimum request. Staff is recommending that funding of S3,000.00 be
provided to Family Hope Service's, instead of their $12,000.00 arinimum request. This recommendation is
based on Family Hope's ranking compared to the other social services, the mission of the HRA and their
previous award levels. In addition, staff also looked at the number of clients served by Family Hope during
previous program years when recommending this award level.
The following tableis a summary of the public service finding requests and the atnotmt of fimdmg recottmtended
by staff-
PINIMSendos Pmp=dAMft Amomtt Mhdnurar Fandhw
AmAMINIM
nada
Requested An~ mmemted
ONDCA Provide childcare assistance through 12,000.00 Not Provided 510,000.00•
scbobnbips do subsidize co"p for 10
bullies.
HOME Lime Provide tmaot bDthee, teaam representation in S101000.00 S7,500.00 57,500.OP
nidations. KNOT organizing to preserve
atfordeble how and rental presentations at
high schools assisting 261 bousebalds.
CASH Provide foreelonue prevee!tion, temamt, mbab, 15,000.00 Not Provided 313,000.00••
pre-purchmandreversembnpFcounseft
to 85 bousebolds.
YMCA Provide counseling, case mamagement, crisis SI01000.00 8,000.00 8,000.00
intervention. atreet based our+xeh. shelter, and
referral services to 60 YOUIL
PRISM. Eller Express Provide operating support for Elder Express 55,000.0n $3.500.00 53,500.00
traaiportation programprovid ag 800 rides to
Plymouth residents.
Family Hope Services Provide weekly support group services and ons- 515,000.00 $12,000.00 53,000.110•••
tome mentoring with 10;20 at -rick
Total: 567,000.00 $31.000.011 S45,000A0
Ile application submitted by GMDCA did not indicate a minimum amount acapmbte. b-tattr=MM mita stu uuu uu;
during program years 2001 and 2002 the average expenses were 510,039.01 per year.
The application submitted by CASH did not indicate a minimum amount acceptable: Staff recommends $13,000.00;
daft program years 2001 and 20M the average expenses were S 1075.00 per year.
The application submitted by Family Hope Services indicated a minimum amount acceptable of 512,000.00. Staff
recommends S3.000.00; during program yeara.2001 and 2002 the average expenses were $4,500.00 per year
1 reconnected that after holding the scheduled publicbearing and considering soy public Comments the
Board review staff's proposed ass for 2004 CDBG fiends and adopt the attached resolution providing a
recommendation to the City Council for adoption of its 2004 CDBG program fhnding.
Attachmemts:
1. Resolution.2004-01
2. List of Applicants Solicited for 2004 CDBG Public Service Applications
3. Smnmary of 2004 CDBG Public Service Funding Applications
4. 2004 CDBG Public Service State Ranking and Ranking Criteria
N Cmmu ity oeret000matwusr, tttw AWAFFataMMANIONCM AMIM M 02-19-WA=
I
HRA RESOLUTION 2004-01
RECOMMENDING THE APPLICATION FOR AND ALLOCATION OF FISCAL YEAR
2004 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
WHEREAS, the City of Plymouth anticipates receiving a Community Development Block Grant
CDBG) funding allocation of $317,000.00 for CDBG fiscal year 2004; and
WHEREAS, on February 19, 2004, the Plymouth Housing and Redevelopment Authority held a duly
constituted public hearing to allow interested.parties to express their opinion; and
WHEREAS, the Housing and Redevelopment Authority of the City of Plymouth has determined the
following to be an appropriate use of Community Development Block Grant funds ir, accordance
with federal guidelines and the City's HUD approved Consolidated Plan;
NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF PLYMOUTH, MINNESOTA, that it recommends
that the Plymouth City Council authorize the City Manager to apply for 2004 Community
Development Block Grant funds totaling $317,000.00 from the U.S. Department of Housing and
Urban Development with the following allocations:
1.. Housing Rehabilitation Gram/Loans 120,000.00
2. First Time Homebuyer Assistance Program 125,000.00
3. Affordable Housing Devclopment Program 0.00
4. Community Action for Suburban Hennepin (CASH) 13.000.00
5. Family Hope Services W.00
6. Greater Minneapolis Day Care Association (GMDCA) 10,000.00
7. HOME Line 7,500.00
8. Northwest Branch YMCA, Point Northwest Program 8,000.00
9. People Responding in Social Ministry (PRISM), Elder Express Program 3,500.00
10. Training & Resources to Attain Long-term Individual Success (TRAILS) 2,000.00
11. Program Administration 25.000.00
Total 317,000.00
BE 1T FURTHER RES( -3 VED, that it is hereby recommended to the City Council that all CDBG
program income may be to cover expenses generated in any existing CDBG program or activity
and not just expenses related to the activity generating the income, unless otherwise reallocated by
the City Council.
BE IT FURTHER RESOLVED, that it is hereby recommended to the City Council that all
unexpended 2003 CDBG funds be allocated to the same program activity in 2004, unless otherwise
reallocated by the City Council.
Adopted by the Plymouth Housing and Redevelopment Authority on February 19, 2004.
A
M
envies Solicited for 2004 CDBG Public Service A
Aueacv: .
Community Action for Suburban Hennepin (CASH)
Family Hope Services.
Greater Minneapolis Day Care Association (GMDCA)
Hammer Residences
HOME Line
Interfaith Outreach and. Community Partners (TOCP)
Kids Care Connection
Mission, Inc.
Northwest Branch YMCA
People Responding In Social Ministry (PRISM)
Resource Center for Fathers & Families
Senior Community Services
110)
Summary of 2004 CDBG Public Service Funding Applications
community Action for Suburban Hennepin (CASHI
CASH proposes to continue its full -cycle homeownership services for residents of Plymouth.
Their services include foreclosure prevention, housing rehabilitation counseling, pre-
purchase homebuyer counseling and reverse mortgage counseling. Staff felt that the merits
of their application were that they provide services that are needed in the City of Plymouth
and are required as part of participating in our First Time Homebuyer program.
Family Hone Services
Family Hope Service's proposes to continue its weekly support group program for at -risk
youth (ages -11 to IS) through the Tree House program. Weekly support groups are held
year-round and allow youth to share openly their questions, struggles, and pressures in a safe
environment supervised by staff. Staff follows -up with the youth through one-to-one
mentoriug contact during the week. Family Hope Service's application demonstrated that
they have operated the program successfully.
Cerner Minneapolis _DM Can Association (GMD AI
GMDCA proposes to serve low- and moderate -income Plymouth families who are on
Hennepin County's waiting list for daycare assistance. This "Scholarship Fund" would cover
50% of the family's co -payment for daycare until the family receives assistance through
Hennepin County. GMDCA believes that an average monthly scholarship of S100.00, which
is paid directly to the daycare provider, will be provided to each family receiving assistance.
This will allow GMDCA to serve more families and spend their allocation in a timelier
maturer.
HOME Line
HOME Line proposes to operate a tenant hotline staffed by four attorneys and volunteer
phone advocates, primarily law students. The hotline receives over 6,900 calls a year and
95% of the callers are low- or moderate -income. They also provide legal representation to
renters faced with eviction as part of their Homeless Prevention program. In addition, the
staff attorneys make presentations on the realities of becoming a renter to area high school
students. HOME Line presented a very strong application. The need and financial feasibility
of theprogram was very defined and showed that the program would have a significant
impact in the City.
Northwest YMCA: POINT Northwest
YMCA proposes to provide services to ,. uth and their families who are experience stress
from family crisis. They provide outreach, crisis intervention, counseling, family
reunification, shelter services, and mediation services to homeless and vulnerable youth
through the POINT Northwest program. This program works collaboratively with the middle
and high schools in Plymouth as well as the Plymouth Police Department. They have
leveraged numerous other resources to support their program. The application and
organizational capacity sections of their application were very clear, and detailed.
Particularly, YMCA has demonstrated efficiency in their beneficiary data reporting.
PRISM proposes to provide "curb to curb" transportation services to residents of Plymouth
and the surrounding communities of Golden Valley, Crystal, New Hope, Robbinsdale, and
Brooklyn Center. The service is designed to meet transportation needs of low-income elderly
and disabled residents of these suburbs. PRISM's application shows a strong organizational
capacity including qualified staff and program success. The application also indicates that
they ba: -e sought numerous resources to fiord this program:
0
V
2004 CDBG Public Service Staff Ranking
Ap karros: GMDCA Horneline PRISMam. ope YMCA
Evaluation Criteria
Program Feasilibity.• 4.00 4.33 3.33 4.33 3.00 3.87
Program needed in Plymouth
Program financially feasible 4.33 5.00 4.00 4A0 3.33 3.87
Program will have signif ceM 4.33 5.00 4.33 4.87 3.00 4.87
imoact
Organizational CepaaTy: SAO 5.00 4.87 5.00 5.00 5.00
Organization has strong 8 expected
000019 cavacky to complete prog.
Organization had capacity to meet 5.00 4.00 3.87 4.00 3.87 4.87
COBG 3 reporthm requirements
Organization has successfully 5.00 5A0 5A0 5.00 5.00 5.00
complated similar D=Fama
Organization has sufficlent, qualified 5.00 5.00 4.87 5.00 4.87 5.00
staff for orwrarn
Leveraging Abifdy: 5.00 3.87 4.33 5.00 4.33 4.87
Leverage of other funds, inarirrd
donations and partnerships
Other.
POINT TOTAL 1 37.81111 37.001 34.00 37.00 32.00 38.35
j
0.
ZOU4 COMO PUDIIC SBNIC® TT Kaming tiniena
5 3 1
Evaluation CAterls
Program FeaslbWy.
Program needed m Plymouth Only service in area and proven client Service may be provided by others but Service provided by others as well
base client base documents need for and minimal client base or no
mu ' le service documented need
Program financially feasible Funding sources documented, Funding sources documented but Funding sources, eommilments, and
indicating axed level of commitment cemamilre ntRime frame not well lime frame for emending not well
and tune trema for emending funds, documented. Percentage of funds= documented. Percentage of Plymouth
Percentage of Plymouth funds - percentage of Pgmnoulh eervlee funds > percentage of Plymouth
percentage of Plymouth service service
Program will have significant hoped Program's anticipated results Program's anticipated results are Program's anticipated results do not
addresses the identified need reasonable to the identified needs address the identified needs
Organizational Capacity.
Organisation has strong A expected Organization has 10+year history and Organization has 5.10 year history Organization has less then 5 year
ongoing capacity to connptete staff dedicated to the program with staff dedicated to the program history or no staff dedicated to the
program program
Organization has capacity to most Organization has procedures in place Orgenlzation has reporting procedures Organization has improper reporting
CDBG and reporting requirements that demonstrate timely and accurate In place that demonstrate adequate procedures and has never worked
reporting and has worked with HUD reporting and has worked with HUD with HUD grants before
grants before indicating and grants before
understanding of HUD grant
requirements
Organization has successfully Organization has operated some Organization has operated similar Organization has not operated similar
completed similar programs program with good audit reports and program with adequate audit reports program and bee not assisted a client
assisted large client base and assisted medium client base base of a similar type
Organization has sufficient, qualified Organization has well trained and Organization has sufficiently trained Organization has inadequate staffing
staff for the program experienced staff and supervisory staff appropriate to the service or for the service and clients
staff appropriate to the service and clients
clients
Leveraging Ability:
Leverege of other funds, in-kind Application identifies leveraged funds. Application identifies leveraged funds. Application identifies no leveraged
donations, and partnerships In kind donations and partnerships in kind donations and partnerships funds, In kind donations or
amounting to at least 2:1 ratio of funds amounting to a match of funds partnerships
requested requested
Other.
vl .-J,
J
4
K
MEMO.
QF PLYMOUTH
3400 PLYMO BOULEVARD, PLYMOUTH, MN 55447
F + o ,
DATE: February 9, 2004 for the Plymouth Housing and Redevelopment
Authority's meeting of February 19, 2004
TO: Plymouth Housing and Redevelopment A rit
FROM: Kristine Aria, HRA Specialist, through Housing Manager and
Anne Hutlburt, Executive Director
SUBJECT: Housing Rehabilitation and First Time Homebuyer Programs Procedural
Guidebook revisions
BACKGROUND:
The Plymouth Housing and Redevelopment Authority (HRA) operates the Housing
Rehabilitation and First Time Homebuyer programs which are funded through
Matmnunity Development Block Grant (CDBG) funds. From time to time, staff reviews
the program policies to ensure consistency and compliance with applicable laws and
regulations. The guidebook was last revised in 2003 and the Board has adopted various
revisions to the program policies. Below is an explanation of some additional changes
being recommended. These changes are mainly administrative revisions, however, there
are some program specific operational changes. Attached are redlined and clean versions
of the Rehab and First Time Homebuyer Guides.
PROPOSED CHANGES 7V THE REHABILITATION LOAN PROGRAM:
1) EaultvContribution:
Currently, if an applicant meets the qualifications for the Rehabilitation loan program,
they can receive up to the $20,000 maximum for their approved improvements without
any contribution of equity that they have in their home. By requiring the homeowner to
contribute to the cost of the rehab work using a portion of the equity they have in their
home, they would share in the costs of the rehab.
The equity requirement would be based on their loan -to -value ratio. if the ratio is below
80%, the HRA would adjust the loan amount based on their ability to contribute. For
example, if a homeowner's property value is $200,000 and they have S 150,000 in
outstanding liens, at 800A loan -to -value the homeowners' ability to contribute to their
rehab project would be $10,000. The HRA would then contribute up to an additional
10,000 if needed. If the homeowner has a loan -to -value of over 80% and they meet all
other criteria for the loan, then they may be qualified to receive the full amount of
20,000 without any equity contribution. The loan -to -value ratio of 800/6 or below was
chosen because we didn't want to use all of the homeowner's equity and lenders are more
apt to provide financing when a homeowner has more than 20% equity. In the cases
A.
where an applicant is denied from at least 2 lenders for private financing, a hardship
request may be made to the HRA and will be reviewed on a case-by-case basis.
This change will allow the HRA to potentially serve more families and also requires the
homeowner to share in the costs if they have equity in their home.
2) Previous Foreclosure Statement:
Additional language was added in the Rehabilitation Guidebook about an applicants'
ineligibility for the program based on a previous foreclosure. The new requirement states
that if a rehabilitation loan applicant had a foreclosure within the previous 5 years, and
the HRA's loan was foreclosed on, the application would be denied. If the applicant has
reestablished their credit rating after the 5 year time period, they may be eligible again
for the HRA's programs.
3) Total Amount of Assistance:
The Plymouth HRA does not currently have a policy for the maximum amount of
outstanding loans an applicant can have at one time. Under this new guideline, an
applicant could not exceed 530,000 in total assistance from HRA resources. This is a
combination of the Rehabilitation loan(s) and/or a First Time Homebuyer loan that is
currently still outstanding to the HRA and does not include loans that have been paid off.
However, if a repair is necessary for emergency or life safety situations, assistance may
be allowed and would be limited to the cost of correcting the issue.
PROPOSED CHANGES M THE FIRST TIME HOMEBUYER LOAN PROGRAM:
1) Change in the Loan Terms:
Currently, the First Time Homebuyer loan is a zero -interest forgivable loan after 30 years
Som the date of the loan, with a declining amount of 109/6 per year after the 20'h year.
The proposed revision is to modify the repayment terms making the loan fully due and
payable upon one of the following occurrences: 1) at the end of 30 years 2) if the home is
sold or the title is transferred 3) if the home ceases for any reason to be the homeowner's
principle place of residence, or 4) if there is a default on the HRA mortgage or any
superior mortgage on the property. However, staff may waive a portion or all of the
repayment if a financial hardship would be caused by this requirement.
2) Previous Foreclosure Statement:
r f An addition to the Guidebook under the fading of "Eligibility Requirements" is
proposed which would disqualify an applicant based on a previous foreclosure within the
past 5 years. If the applicant has re-established their credit after 5 years, they may be
eligible for the Plymouth HRA program. This is consistent with the proposed Rehab
Guide changes (referenced above).
I recommend that the HRA Board of Commissioners adopt the attached resolution
revising the policies of the HRA Housing Rehabilitation and First Time Homebuyer
Loan Program Procedural Guides.
Attachments:
1. Resolution 2004=02
2. HRA Housing Rehabilitation Loan Procedural Guide (Redlined and Clean WO
Versions)
3. HRA First Time Homebuyer Loan Procedural Guide (Redlined and Clean
Versions)
P
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION 2004-2
APPROVING REVISIONS TO THE FIRST TIME HOMEBUYER AND THE HOUSING
REHABILITATION PROCEDURAL GUIDELINES
WHEREAS, the Plymouth Housing and Redevelopment Authority operates a First Time
Homebuyer Program and a Housing Rehabilitation Program funded by Community Development
Block Grant (CDBG) funds; and
WHEREAS, the First Time Homebuyer Program and the Housing Rehabilitation Program are
administered according to the policies of the Procedural Guidelines; and
WHEREAS, stats has revised the Procedural Guidelines to comply with all federal regulations.
and to meet the housing goals of the City of Plymouth and the HRA;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF PLYMOUTH,
MINNESOTA, that the Authority approves the attached revised First Time Homebuyer and
Housing Rehabilitation Procedural Guidelines and rescinds all previous versions.
Adopted by the Plymouth Housing and Redevelopment Authority on February 19, 2004.
IMI
Plymouth HRA
Housing Rehabilitation Program
PROCEDURAL
GUIDELINES
Q
Adopted by the Plymouth Housing & Redevelopment Authority
Revised February 2004
1)
c)
TABLE OF CONTENTS ^
4
Program Overview 4
Program Goals 4
Program Administration 5
Purpose of the Program Guidelines
PROGRAM POLICIES
5
5EMIL
Responsibilities of the Homeowner 5
Responsibilities of the HRA 6
Application to the HRA 7
Eligibility Requirements 8
Eligible .Dwellings 13
Denial of Eligibility 13
Eligible Improvements 13
Improvement Standards 16
Accessibility Improvements 19
Application/ Loan Processing
PART M.. PROGRAM VERIFICATIONS/ DOCUMENTS
20
Pre -Approval Verifications
22
22
Pre -Construction Documents 24
Post -Construction Documents 28
PART IV: PROGRAM RULES 29
Lead Based Paint Hazard Requirements 29
Repayment of Assistance 30
Forgiveness of Indebtedness 30
Subordination Policy 30
Targeted Funding 32
Modification/ Termination of Program 32
Additional Funding Requirements/ Provisions 34
Additional Counseling/ Training. Requirements 35
2
P&MIX
A"MDC A
Definitions
APPENDDC B
Incoule Limits
L-,
PART 1: GENERAL PROGRAM DESCRIP'IYON
Program Overview
Plymouth's Housing Rehabilitation Program is available to low and moderate -income
households to maintain, repair, and. improve their homes. As the Plymouth HRA administers
the program with fiords appropriated from the Community Development Block Grant
Program (CDBG). the program will follow CDBG regulations.
There are two types of housing rehabilitation assistance available to eligible homeowners,
deferred loans and small repairs grants. A limited amount of funds are available for each
program and applications are accepted on a first come first served basis.
The deferred loan program allows applicants to receive up to 520,000.00 in a deferred, zero
interest loan to make eligible home improvements to comply with minimum housing quality
standards. Loans must be 100% repaid if the home is sold, transferred, or no longer
homesteaded within 10 Pers. After 10 years the loan declines 10% a year until it is forgiven
after 20 years.
k small kpair giant allows income qualifying seniors a maximum of 55,000.00 in grant
funds to be used for emergency and small repairs. The purpose of a small repair grant is to
allow the homeowners to complete eligible repairs without completing a full-scale
rehabilitation project and signing a long-term repayment agreement. Applications may be
submitted by ton -profit agencies on behalf of eligible homeowners or directly by
homeowners to the Housing and Redevelopment Authority (NRA).
The overall goal of this Housing Rehabilitation Program is to hiprove the safety, livability,
and the energy efficiency of homes owned by low and moderate -income families within the
City of Plymouth. Additional housing rehabilitation assistance goals have been established
for the City of Plymouth in its Consolidated Plan. According to these goals, for a property to
be counted as meeting the housing rehabilitation standards of the City of Plymouth, the home
must be determined to be substandard and upon completion of rehabilitation meet minimum
Section 8 housing quality standards pursuant to 24 CFR, as follows:
Dwellings improved ander this program shall generally meet the per
regerirements and acceptability criteria set forth in this section except for such
voriadons as are proposed by the NRA and approved by HUD. Local climatic or
geological conditions or local codes are examples, which mayjuste such variations.
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4
Program Administration
This Program will be administered by the Plymouth HRA, which has been given the authority
to administer this Program by the. Plymouth City Council. Funding of this Program is
provided through the Department. of Housing and Urban Development (HUD) as part of the
Community Development Block Grant (CDBG) program. This Program will follow all
applicable CDBG regulations and in the event policies included in this Guidelines conflict
with CDBG regulations, the CDBG regulations will prevail.
Purpose of the Program GaIddines
The purpose of these Guidelines is to establish policies for carrying out the Housing
Rehabilitation Programin a manner consistent with HUD requirements and local goals and
objectives contained in the Consolidated Plan and Annual Action Ptah. The HRA is
responsible fm dying with all changes in HUD regulations pertaining to the CDBG
program. If such changes conflict with these Guidelines, as previously stated. HUD
regulations will have precedence. Applicable regulations include:
24 CFR Part S: General Program Requirements
24 CFR Part 8: Nondiscrimination
24 CFR Part S70: Community Development Block Grant
24 CFR Part 35: Lead -Based Paint Regulations
PART 17: PROGRAM POLICIES
Reapoo:Wflities of the Homeowner
Complete, sign and submit the housing rehabilitation application as well as all additional
required supporting documentation
Inform the HRA about any changes in their application or projrct
Meet program deadlines
Set-up initial mating with HRA staff
Set-up initial inspection with HRA inspector
Review the Scope of Work
Obtain bids and submit the bids to the HRA within 30 days
Make house accessible to contractors
Inform HRA of any issues related to work or changes in the scope
Inform the HRA when contractors have completed work
Sip Completion Certificate when they are satisfied with the work completed
RespomsibMOS of the HRA
Ounesoh and Public Information
The HRA will be responsible for the promotion of the Housing Rehabilitation Program
within its boundaries. The HRA will exercise care in avoiding any advertising or
outreach method that may be deemed to systematically exclude potentially eligible
applicants. Access to program materials will not be denied to any person for any reason.
The HRA will market its own and wha available home rehabilitation, energy reduction
and other home improvement and maintenance programs. Some possible marketing
activities that may be used are:
1. Regular promotions in the. City's newsletter, area newspapers, and cable TV.
2. program advertising (brochureslflyers) of HRA and other available programs at
banks, community centers, businesses that sell homeimprovement items, businesses
with high walk-in traffic, and City Hall.
j. Staff a booth at area remodeling fairs.
The program will include affirnative marketing efforts: The HRA will review its normal
outreach methods firom time -to -time to ensure that the loan program is made available to
persons who otherwise might not apply for assistance.
inspection of Properties
The HRA is responsible for carrying out a minimum of two inspections of each approved
property. Mie first inspection shall be completed after the applicant is determined to be
eligible for the program. During this inspection a property inspection report will be
completed that will list all deficiencies in the dweUh g and will be used to determine
whether sufficient funds are available to render the dwelling reasonably habitable, safe
and energy efficient. During the inspection, the home will also be inspected for lead
based paint hazards and if -squired, a lead risk assessment will be ordered.
The second inspection shall take place after the work is finished to determine that all
work has been completed in a satisfactory manner consistent with these grAclines, the
scope of improvements and the contractors quote.
The HRA may conduct interim inspections of the property as necessary.
Preparation of Scope of Improvements/ Work proposal
The scope of improvements is based on the property inspection report and shall list all of
the.eligible improvements that will be. completed. The HRA shall provide the
homeowner with copies of the scope of improvements. The scope will be prioritized
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based on the urgency of the repairs. The repairs must be completed in the order reflected
on the scope of improvements
11 •
Additional Assistance Programs
To maximize available assistance fiom the Minnesota Housing Finance Agency (NMA)
and other sources, the HRA will work directly with homeowners to assess and facilitate
their eligibility for other assistance. NMA has several programs and other assistance is
often available through the U.S. Department of Energy. Additional Rehabilitation Loan
and/or Grant Programs include:
1. MHFA Programs
a. Rehabilitation Loan Program
b. Fix Up Fund
2. Sustainable Resources Center (SRC)
3. Weatherization Assistance Program
4 Home Energy Loan Program
Application to the HRA .
Normally, a first corse first serve applicant selection process will govern the administration
of the program; however, where an applicant has an immediate safety or health ne4 that
applicant will be given priority.
Each application will be dated upon receipt. The receipt date shall be used as one of the
criteria for ranking of the application. It should be noted that an application is considered
complete when all materials used. to determine eligibility are received by HRA sten.
The HRA shall adhere to the following guidelines:
1. The process must be uniformly applied during the entire funding year.
2. No eligible applicant shall be rejected on the basis of judgments as to personal character
or life-style.
3. Where no funds are available for assistance to applicants, the following procedure shall
be used:
a. Explain to the app&ant that the funding for the current year has been either depleted
or allocated.
b. Inform the applicant of other possible funding sources, including local, state and
federal programs.
c. Setas the applicant a letter indicating that the application has been placed on a waiting
list but that there is no guarantee of future funding. This letter should outline the
other possible avenues of obtaining home improvement funds.
EligibAlly Requirements
Applicants must meet all the requirements set forth in these Procedural Guidelines.
Ownership and Occupancy Requirements
The property must be the applicant's place of residence Por a minimum of nine months in
any twelve-month period. An exception may be made for a disabled person or household
member who cannot move into the home until modifications are made.
The applicant must have a qualifying interest in the property although that interest may be
aggregated with the ownership interest of other individuals occupying the property as
their principal place of residence. A qualifying interest shall consist of -
1. f1. A valid life estate. Such life estate must be recorded and must appear in the records
of the County. or
2. A one third interest in the fee title. Such interest may be subject to a mortgage; or
3. A contract for deed in the property to be improved. Such contract for deed must be
recorded and must appear in the records of the County.
All individuals having an ownership interest in the property to be improved must sign the
Repayment Agreement.
Ownership shall be based on the information recorded in the appropriate County
Recorder's office.
Flie applicant must be current on all mortgage payments, contract for deed payments,
homeowner's association dues and property taxes on the property to be improved. If any
of these payments are delinquent, they must be made current before the application can be
approved for finding. In addition, there shall be no outstanding mechanics liens fled
against the property.
The applicant must be capable of maintaining the home. This includes financial and
physical maintenance of the home. Applicants with significant naancial and/ or physical
maintenance issues will be referred to appropriate service agencies.
Annual Gross Household Income
Applicants must have an annual gross household income at or below 600A of the area
median income for the household size in effect at time of application. An exception to
the 60% income limit may be made for households with extraordinary medical expenses,
or if it is determined to be in the best interest of the community, applicants with gross
household incomes at or below 80% of the area median income for the household size
may be considered.
U
Gross annual income is defined as the gross annual income from all funding sources
haft taxes and withholdings) of all individuals living in the housing unit for at least
nine (9) months of any twelve- mouth period and who do not pay rent.
Non.rocuning types of income should be included as assets rather than income. Items for
inclusion under this category may include a single gift of cash from a person or persons.
cash sales of property, receipt of one-time survivor benefits, etc. A onetime sale of stock .
does not count as income, but rather the proceeds are counted as assets.
Gross annual income includes:
1.:. Salaries (including commissions, bonuses. overtime pay and tips).
2. Any public assistance (including but not limited to welfare, AFDC, SSI. and
unemployment compensation).
3. Alimony and/or child support.
4. Interest and dividends.
S. Pensions and annuities.
6. Rental income.
7. Estate or trust income.
S. Business profit—for self employed individuals (including farmers and child care
providers).
9. Gains from the sale of property.
10. Payment received from properties being sold on contracts for deed.
11. Partnership.
12. Personal and/or business loans.
13. Miscellaneous income (including recurring gifts 5rom a person or persons).
Calculation of Household Income
1. Gross annual income shall be based upon annualized weekly or monthly income as of
the date of verification.
2. In cases where the Was income of the applicants household is extremely low, the
applicant must demonstrate they are able to meet their monthly obligations. The
applicant must produce written verification of the household's monthly expenditures,
clearly itemizing the amount of money and its source, on all obligations, which may
include the following items: mortgage, contract for deed, insurance, loam income,
property taxes,' transportation expenses, charge accounts, health costs. food, utilities,
clothing and entertainment. These expenses shall determine the household
maintenance income.
3.. Any income delamination, which results in a not. loss of income must be considered
as So income. That is, an income loss from one source may 1145 be subtracted from a
separate source of income for the purpose of determining total household gross annual
Jincome.
9
4 Any educational loans, including VA benefits, which are paid dfnealy to the
individtml.must be included as income. Loans or scholarships, which are paid
directly to an educational institution, are not included as income.
S. If a currant pay -stub does not provide conclusive verification of overtime or bonuses,
the loan administrator, through contacting an employer, may read to determine
projected bonus and/or overtime income. The amount of overtime or bonuses may
also be based on prior year's figures or average amounts awarded to other employees
with the same status. The most recent IItS tax return may also be used for these
Purposes,
6. Self-employed persons must submit signed copies of IRS tax returns for the previous
two years. Applications processed before April 15th of any given. year may use the
IRS tax returns from the second and third proceeding years if their return for the first
preceding year is not available. Applications processed after April 15th of any given
year t< mS use the UtS tax returns from the first and second preceding years. The
administering entity will determine gross annual income by averaging the income
fiom the two submitted retums.
7. For self-employed persons, norma, out-of-pocket. business expenses such as office
rents, telephone, etc. are generally deductible items. Property or equipment
depreciation is not deductible and must be added back to establish income for
Program Pte•
Individuals who have been self-employed for less than two years must submit a profit
and loss statement detailing the business income and expenditures. An exception may
be made if the applicant prepares one that it is endorsed by a reputable third party and
includes a declaration that all information contained in the statement is accurate and
complete and that the applicant is aware that any erors or evasions may result in
prosecution If the individual can produce a signed IRS return for one complete year
of self-employment and a profit and loss sta ement for the subsequent period, that will
be acceptable.
8. Income from remtat properties, including rents from 'he property to be improved, shall
be included in tho dross annual income. Expenses allowable for deduction. for rental
purposes include a proportional. share of the mortgage principal and interest payment,
utilities, taxes, insurance, .nd maintenance. In no event shall such deductions exceed
the gra rental income.
9. The Calculation of Gross Annual Income may pUo be based on a temporary condition
such as unemployment or temporary worker's compensation. If unemployment r t
on a malar basis • gross annual income shall include the sum of wages and
unemployment compensation expected to be received by the household over the next
12 months. If workers compensation is peniumert income the insurance company
must verify it.
10
Gross Annual Income may not be based on temporary non-recurring unemployment
of a known duration, such as that due to lay -ori, maternity leave, sabbatical leave, etc.
Rather, income shall be calculated based on the normal annual income of the
temporarily unemployed person At that time, the household must be able to
demonstrate that it is both income eli.-able and capable of meeting its monthly
obligations as outlined.
Application of those who are unemployed for an unknown period of time shall not be
considered until the unemployed household member has exhausted all eligibility for
unemployment compensation and the employer indicates a callback daze is unknown.
10. The .income earned from assets will be combined with income earned from other
sources to determine if the total income is under the appropriate income limit.
11. All applicants must be able to demonstrate that they are current on income tax
payments to the federal government by submitting signed copies of complete federal
tar returns for the two preceding years. Applicantwho are delinquent, but who can
be verified as being current on a repayment schedule, will be regarded as being
eligible in this regard. Applicant who are required to file federal income tax returns
but who have not filed or applicant who are delinquent and are not current on a
repayment schedule are not eligible for program assistance.
Deductions from gross income
The following items must be ac mowledged as income but can be discounted as
qualifying income:
1. .Personal loans, which must be repaid at a later date, (a copy of the loan agreement/
payment schedule must be included i- the file).
2. Alimony cr child support payment to. individuals not residing permanently in the
property to be improved, (a copy of the pertinent section of the divorce decree must
be included in the file).
3. The income of any resident under the age of seventeen.
4. Payment received for the care of foster children.
5. The income of a live-in aide.
6. Educational grant or scholarships, including VA educational benefit, provided that
the recipient is registered for classes in the quarter during which the eligibility
verification occurs or for the quarter immediately following
7. Extraordinary medical expenses. This includes any medical expenses that exceed 3%
of a household's annual income and are recurring in nature. Recurring expenses
include medical insurance, prescriptions, or regular payment for a medical debt that
the homeowner is required to .pay on a monthly basis, and which are expected to
continue indefinitely or for at least the next 12 months. This deduction is allowed in
J
those cases where the applicant's gross annual income exceeds the stated program
income limit of 600/6 of the area median income. If, after the deduction, the
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applicant's income is at or below 6096 of the area median income, the applicant is
eligible.
Asset Determination
Assets may not exceed $25,000 as a factor in determining eligibility for the propam, and
include the cash value of accounts such as money-market accounts, personal savings
accounts, securities, annuities, and certificate of deposits. Typically, it does not include
401K funds, pensions. or other deferred compensation funds.
Equity Contribution
If the applicant's Loan to Value natio is below 8096, they would be requiredto contribute
to the cost of the rehab in an amount equal to the equity available that is greater than
8096.
Example 1:
Value of home from either an appraisal or property assessment $200,000
80% Loan —to -Value $160,000
Total loans against the property -$100,000
Available Equity / Applicant Equity Contribution to the Project =$60,000
In this scenario, the applicant would be ineligible for the Plymouth Rehabilitation Loan
Program because the amount of equity available exceeds the maximum loan amount of
20,000 for the Rehab program.
Example 2:
Value of home from either an appraisal or property assessment. $200;000
80% Loan -to -Value $160,000
Total loans against the property 41501090
Available Equity / Applicant Equity Contribution to the Project =$101000
In this scenario, the applicant wuuld be required to commit $10,000 of their existing
equity towards the Rehab Loan. Plymouths' Rehab loan would be reduced so that the two
sources du not exceed the $20,000 program maximum limit.
Hardship requests shall be made in writing to the Housing Program Manager and will be
reviewed on a case-by-case basis in situations where a homeowner does not qualify from
at least 2 lenders for private financing. If the Housing Program Manager denies a
hardship request, appeals regarding interpretation of the hardship provisions may be made
in writing to the HRA's Executive Director and then to the HRA Board of
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Commissioners, which has the final say in the request. Appeals that clearly do not meet
the hardship requirements will not be considered.
Eligible Dwellings
Pmnertv Tvoe and Location
The property must be 1) located within the city limits of Plymouth; 2) in compliance with all
applicable zoning ordinances; 3) used primarily for residential purposes; and 4) contain no
more than two dwelling units, one of them owner -occupied. Improvements can only be made
to ft owner -occupied unit, unless the improvement serves both units, such as a roof.
However, a condominium or townhouse may be considered eli;,ible provided repairs are done
only within the unit itself
Swaure
The property to be improved must be an. existing and permanent structure. An owner -
occupied mobile home on.a permanent foundation located on land owned by the applicant is
eligible. Trailers or mobile homes located on land not owned by the applicant are not
eligible.
Denial of Eligibility
The HRA will review and verify all applications for eligibility. Those applicants not meeting
the eligibility requirements will be sent a written notice explaining the reason(s) for denial.
and outlining the appeal process as stated below.
Appeals regarding interpretation of eligibility requirements may be made in writing to the
HIitA's Executive Director and then to.the HRA Board of Commissioners. Appeals that
clearly do not meet eligibility requirements will not be considered.
Eligible improvements
Each improvement must be a permanent general improvement. Permanent general
improvements shall include such alterations, renovations, or repairs upon or in connection
with existing structures, which correct defects or deficiencies in the property affecting
directly the safety, habitability or energy consumption of the property. A permanent ger,ral
improvement must be economically viable in terms of a determination that after the
improvement is made:
The structure will have remaining useful life such that the total amount of the repairs
required bringing the house up to Section 8 Housing Quality Standards may be amortized
3
over such life in an economically prudent manner.
V
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The structure will be reasonably livable, safe and habitable. Permanent general —
improvements shall not include materials, fixtures, or landscaping of a type or quality
exceeding that cuswmarily used in the locality for properties of the same general type as
the property improved. However, should the homeowner desire more expensive materials
to be used, the homeowner would pay the cost difference.
No funds shall be used in whole or hi part for the purpose of refinancing or paying off an.
existing indebtedness: All such funds must be used to finance improvements begun after
the execution of a Work Contract prepared by the HRA and signed by the homeowner
and the contractor.
Additions
The HRA may approve special improvements only in the described circumstances
indicotted below:
1. Bedroom additions may be allowed in cages of severe overcrowding. For the purpose
of this program; a dwelling will generally be considered "overcrowded" if there is an
average of more than one person per room (excluding bathroom) in the dwelling, or as
otherwise approved by the HRA.
2. Bathroom additions may be allowed in cases of inadequate indoor bathroom facilities
only if no other space in the structure is appropriate for such facilities
3. In the case of applicants with impaired mobility, request for room additions will be
reviewed in compliance with procedures for loans including accessibility
improvements.
7 =
Demolition of outbuildings is allowed only when such clearance is required by the local
building code. Loan funded improvements cannot otherwise be limited to demolition
only, except in circumstances determined as exceptional by the HRA.
Reconstruction of sidewalks and driveways is allowed only on private property and only
if existing conditions are a clear and imminent safety hazard. Construction of a new
sidewalk or driveway may be allowed at the discretion of the HRA and only as necessary
for accessibility improvement for an elderly or disabled household members.
Exterior finishing (painting or siding) is allowed if there is deterioration of curtent
exterior finishing. Exterior finishing requested solely for cosmetic purposes will not be
approved. Should a determination be made that lead-based paint was used'on the
14
structure; appropriate measures will be taken in accordance with applicable lead based
Paint requirements.
Energy Efficiency
Where property is not reasonably energy efficient, loan finds shall be used to the extent
necessary to increase such efficiency. Energy saving features shall be consistent with the
energy standards promulgated as part of the State building code, but such improvements
need not bring the unit or house into compliance with such energy standards.
Smoke Detectors
Smoke detectors shall be installed in all dwellings being improved with loan funds,
unless detectors are already properly installed. All properties being improved shall
contain adequate smoke detectors following completion of the rehabilitation work. When
interior alterations, repairs or additions requiring a permit occur, or when one or more
sleeping rooms are added or created'in existing dwellings, the individual dwelling unit
shall be prnvided with smoke detectors located as required for new dwellings; the smoke
detectors shall be interconnected and hard wired.
Exceptions: 1) Smoke detectors in existing areas shall not be required to be
interconnected and hard wired where the alterations or repairs do not result in the removal
of interior wall or ceiling finishes exposing the structure, unless there is an attic, crawl
space, or basement available which could provide access for hard wiring and
interconnection without the removal of interior finishes. 2) Repairs to the exterior
surfaces of dwellings are exempt from the requirements of this section.
Power Source: In new construction, the required smoke detectors shall receive their
primary power from the building wiring when such wiring is served from a commercial
source, and when primary power is interrupted, shall receive power from a battery.
Wiring shall be permanent and without a disconnecting switch other than those required
for over current protection. Smoke detectors shall be permitted to be battery operated
when installed in buildings without commercial power or in buildings that undergo
alterations, repairs or additions.
House Numbers
When the house numbers are not present or are not installed to applicable City codes and
ordinances, they shall be installed properly.
Stoves and Refrigerators
The installation, replacement or repair of cook tops, oven ranges and refrigerators are
eligible provided that it is absolutely necessary. Repair or replacement of
washers/dryers/dishwashers is not allowable.
15
Lean funds may be used for the portion of improvements located on the property which
will bring an individual water supply system or an individual sewage disposal system
including septic systems) into compliance with local, state or federal environmental and
sanitary standards. provided no public utility service is available. Payments of applicable
SAC (Sewer availability charges) are an eligible expense.
Water drawn from a valid well must be potable (safe for drinking) and must be free of
sand, grit or other material which might damage the pump or plumbing. Water need 21
be free from minerals that may make it cloudy nor must it be free from odor. NO
FUNDS WILL BE DISBURSED BY THE HRA UNTIL WATER 1S STRUCK. It is an
eligible improvement to connect a house to City water and/or sewer when conditions
affecting the bealth of the residents are present or when required by City Ordinance.
Garages
Work on detached garages is allowed only if the existing condition presents a clear and
imminent safety hazard. Garage door openers will not be considered as M eligible repair
or addition unless the homeowner has a documented physical disability which would
require them to have one.
Improvement Standards
Sanitary" Facilities
Performance Reouirement: The dwelling unit"shall include its own sanitary facilities,
Which are in proper operating condition, can be used in privacy, and are adequate for
personal cleanliness and the disposal of human waste.
Acceatability Criteria: A flush toilet in a separate, private room: a fixed basin with a
sink trap and hot and cold running water,. and a shower or hrb with hot and cold
running Water shall be present in the dwelling unit, all in proper operating condition.
These facilities shall utilize an approved public or private disposal system.
Food Preparation
1. performance .Requirement: The dwelling unit shall contain suitable space and
equipment to store, prepare, and serve foods in a sanitary manner. There shall be
adequate facilities and services for the sanitary disposal of food wastes and refuse,
9ncluding facilities for temporary storage where necessar'.
2. Accxatability Criteria:. The unit shall contain the following equipment in proper
operating condition: an oven, a cooking stove or range; a refrigerator of appropriate
size for the family and a kitchen sink with a sick trap and hot and cold running water.
The sink shall drain into an approved public or private system. Adequate space for
16
the storage, preparation and serving of food shall be provided. There shall be
adequate facilities and services for the sanitary disposal of food wastes and refuge,
icciuding facilities for temporary storage where necessary (e* garbage cep).
Speci and Security
1. performance Reauirerrettt: The dwelling unit shall afford the iomcowner adequate
space and security.
2. Accem—Ml tv Criteria: A living room, kitchen area, and bathroom shall be present,
and the dwelling unit shall contain at least one sleeping err living/sleeping room of
appropriate size for each two persons. Exterior doors and windows accessible from
outside the unit shall be lockable.
Thermal Environment
1. performance Rea uir t: The dwelling unit shall have and be capable of
maintaining a themnal environment healthy for the human body.
2. Aa=tability Criteria: The dwelling unit shall contain safe heating facilities which
are in proper operating condition and can provide adequate heat to each room in the
dwelling unit to ensure a healthy living environment. Unvented room heaters, which
bum gas, oil or kerosene, are unacceptable.
D • Illumination and Electricity
1. performance Reouirements: Each raom shall have adequate natural or artificial
illumination to permit normal indoor activities and to support the health and safety of
occupants. Sufficient electrical outlets shall be provided to permit !ise of essential
electrical appliances. Electric fixtures and wiring must ensure safety Som fire.
L Aceeotability Criteria: Living and sleeping rooms shall include at least one window.
A ceiling or wall type light fixture shall be present and operable in both the bathroom
gad kiln area. At least two electric outlets shall be present and operable in the
living room area, kitchen area, and Bch bedroom area
Succtunr and Materials
1. performance Requirement: The dwelling unit shall be structurally sound so as not to
pose my threat to the health and safety of the occupants and to protect the occupants
fio": the environment.
2. Accentability Criteria: Ceilings, walls, and floors shall not have any serious defects
such as severe bulging nr leaning, large holes, loose surface materials, severe
buckling or noticeable riovement under walking stress, missing parts or other serious
damage. The roof structure shall be firm and the roof shall be weather tight. The
exterior wall structure and exterior wall surface shall not have any serious defects
such as serious Jeanine, buckling, sagging, cracks or holes, loose siding, or other
serious damage resulting in air infiltration or vermin infestation. The condition and
17
equipment of interior and exterior stainyW. halls, porches, walkwam etc. shall be
such as not to present a danger of tripping or falling. In the case of a mobile home,
the home shall be securely .anchored by a tie down device which distributes and
transfers the loads imposed by the unit to appropriate- ground anchors so as to resist -
wind overturning and sliding.
Interior Air Quality
1. Perlbrmarn Requirement: The dwelling unit shall be free of pollutants in the air at
levels that threaten the health of the occupants.
2. Accentability Criteria: The dwelling unit shall be free from dangerous levels of air
pollution from carbon monoxide, sewer gas, fuel gas, dust, and other harmful air
pollutants. Air circulation shall be adequate throughout the unit Bathroom areas
shall have at least one operable window or other adequate exhaust ventilation. Any
room used for sleeping must have at least one operable window.
Water Supply
1, Performance R=t:M em+E: The watersupply shall be five from contamination..
2: Aggal&i1ity Criteria: TM unit shall be served by an approved public or private
sanitary water supply that is sanitary and flee from contamination.
Lead Based Paint D
1. peffamm gcauiwmcrrt: The dwelling unit shall be in compliance with HUD Lead
Based Paint regulations, 24 CFR. Part 35, issued pursuant to the Lead Sawed Paint
Poisoning Prevention Act. 42 U.S.C. 4801 and all successive amendments.
2. 1f the property was constructed prior to 1979, :ue applicant will be furnished the HUD
Lead Based Paint Notice on the hazards of lead based .paint poisoning. Documentation
of receipt of the notice shall be inched in the file.
3. Ability Criteria: Same as Performance Requirement
Access
1. Performance Requirement: The dwelling unit shall be usable and capable of being
maintained without umautbormed use of other private properties, and the building
shall provide an alternate means of egress in case of fire.
2. Accer ability Criteria: The dwelling unit shall be usable and capable of being.
maintained without unauthorized use of other private properties. The building shall
provide an alternate means of egress in case of 5n. (e.g. windows that satisfy
standards f r egress).
r]
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Site and Neighborhood
1,ft&rmam ReguiMMMIThe site and neighborhood shall be reasonably fee from
disturbing noises and reverberations and other bazards to the health, safety, and
general welfare of the occupants.
2.A 4p>gbility Criteria: 'Ihe site and neighborhood shall not be subject to serious
adverse environmental conditions, natural or man made, such as dangerous walks and
steps; instability; flooding; poor drainage; septic tank backups: sewage hazard% mud
slides; abnormal air pollution, smoke or dust; excessive noise, vibration or vehicular
tre@lc; excessive accumulations of trash; vermin or rodent infestation; or fire hazards.
Sanitary Condition
1, pCdOMMM gcaWnm=: The unit and its equipment shall be in sanitary condition.
2. Acceptability Criteria: The unit and its eyuipmeat shall be fee of vermin and rodent
infestation.
Smoke Detectors
1. Performance Reauirememt: The unit shall have at least one battery-operated or hard-
wired smoke detector, in proper operating condition on each level of the unit. Smoke
detectors must be installed in accordance with and meet requirements of ?.'FPA 74
and succeeding standards, if the unit is occupied by beariarimpaired person(a)s
smoke detector must have an alarm system, designed for hearing unpaired p
Accessibility Improvements
M-7
Accessibility improvements may include:
1. Structural Improvements: Construction, installation or modification of ramps.
handrails, kick plates and door widths; repair or replacement of doors; relocation of
doorways; installation of lever -action hardware; construction or expansion of rooms.
2. Exterior Improvements: Construction of exterior ramps, railing, walkways, landings
and porch extensions, site grading and other site improvements.
3. Bathroom Improvements: Installation of elevated water closets, grab bars, shower
stalls, tub seats, hand-held showers, accessible sinks, electrical outlets, medicine
cabinets and other accessories, and modification or expansion of bathroom area to
allow a five-foot turning radius.
4. Kitchen Improvements: Construction, modification or replacement of cupboards or
shelves to provide access to sinks, cook tops, ovens or storage areas; installation of
accessible electrical outlets and switches, lever -action hardware, garbage disposals;
insulation of hot water pipes; modification or expansion of kitchen area to allow for a
19
five-foot turning radius in the workspace, installation of "bury Susan's" in cupboards;
replacement of floor covering in order to improve wheeling surface.
Other Improvements: In exceptional circumstances - installation of central air
conditioning and/or stair glides or electric lifts when the handicapped person's doctor
in writing verifies the need for these improvements.
Improvements that are determined to be ineligible as accessibility improvements may
be funded under :u other provisions of the Procedural Guidelines.
A total loan of S34000.00 will be allowed to households with accessibility needs to
address both accessibility and general improvement needs. Although there is no fixed
limit allowed for accessibility improvements, serious health, safety, and code violations
must be addressed in addition to the accessibility improvements. A prioritisation of the
scope of improvements will be done by the program administrator in conjunction with the
homeowner to allow for the most urgent needs to be met.
A loan application that includes accessibility improvements must include the following:
1. An accessibility improvements inventory, containing a description of the accessibility
improvements to be made shall be included with the inspection report;
2. A letter describing:
n the level and specific type of disability experienced by the handicapped person; and
b. the specific accessibility improvements requested;
3. Quotes fiord contractors;
4. Architectural drawings, if needed;
S. Any other materials requested.
Loans may be made to households with a handicapped person for accessibility
improverneats if the conditions of the Procedural Guidelines have been fully satisfied. To
qualify for accessibility improverrmts the handicapped person must be a permanent
members of the household
Applicetlont Loan Processing
The }IRA's objectives are to encourage necessary improvements whereby -tie structure
will be reasonably livable, safe, habitable and energy efficient.
Anoroval of Armlicetion
2.0
4
1. Upon approval of the application, the HRA will notify the applicant in writing.
2. The Repayment Agreement acccuted by the applicant. and dated price to work
completion will be by the HRA.
Loans shall be processed in a reasonable length of time: in an efficient and accurate
manner. Normally, with the repayment agreement filed, a loan shall be completed within
six (6) months. N completion of the loan is delayed beyond the 6 month period due to
the homeowner's negligence, the HRA, may commit finds to another applicant. In Order
for the negligenthomeowner to receive additional funding, they must meet the progress
schedule set by the HRA.
The. HRA will be responsible for disbursing funds to contractors who have performed
work Payment for work completed will be made after the work is completed, inspected
and all of the required parties have signed a completion certificate. Partial payments may
be made if required by the contractor after an interim inspection and the homeowner hassigneda.c ompletion certificate for that portion of the project. Advance payments may be
7 made at the discretion of HRA staff and written approval from the homeowner when
required for ordering upfront cost item% such as windows or siding, and upon
submission of an invoice of materials ordered by the contractor.
No disbursement of funds shall be made tc a contractor until the HRA is in receipt of:
1. A Completion Certificate signed by the inspector, homeowner, and HRA
administrator; and
2. An original invoice from the contractor for the amount of the work performed; and
3. A properly completed Sworn Construction Statement; and her for the a>Ornmt of4. Igen waivers provided by the contractorlsubcontractor() supe
the work performed; and
S. 'Any suooessfW Clearance Tests, if necessary.
Upon receipt of the above items, payment may be made to the contractor. Payment will
normally be made within 15 business days after the HRA receives the invoice, SS"d
Completion Certificate and the lien waivers
The HRA will disburse fimds to contractors for completed work, in compliance with
JProgram Guidelines. No work shall start on any structure prior to the {nope' completion
21
of a Work Contract referring to specific work items under that particular loan, the
contractor's proofof insurance, license, and w-9 form.
At the discretion of the HRA, an expenditure of funds in excess of the approved amount
may be approved in the event of justifiable overruns in the cost of improvements. The
h.2A must document increases or decreases in the amount according to the following
pi --Aures:
1. The HRA shall inspect the.property to determine if the change is justified.
2. The HRA may authorize changes that meet program eligibility criteria when
necessary, but will not be required to do so. Authorization will be given by the HRA
signing the amendment request certificate. Verbal approval from the homeowner and
contractor will be accepmble as typically they are requesting the. change.
3. In no caseshall the amount of the loan exceed the maximum loan amount, except in
the cases of accessibility loans, lead-based paint issues, or where a serious health or
welfare conditions warrants a greater amount
X11 t ,I 47L7'1Mr
No loan will be considered complete until the following steps have been accomplished:
1. Inspection of the Property - All improvement work, as specified in the rehabilitation
work summary, will be inspected for completeness, conformity to specification and
quality of workmanship. The .HRA will require completion or correction of any item
found lacking. Failure of a contractor to comply with such a request. for completion
or correction of work is considered grounds for withholding payment
2. Recording of the Repayment Agreement — The loan amount identified on the
Repayment Agreement will be the maximum loan r..twunt the homeowner is entitled
Once the Repayment Agreement is executed the agreement will then be recorded by
the HRA with the Registrar of Deeds or the Registrar of Titles prior v, paying any
expenseL
3. Completion Certificate - following the final inspection and successful completion of
work, the homeowner, inspector, and the HRA Administrator will sign a Completion
Certificate prior to any payment being made to a contractor.
Pre -Approval Verifications
22
to
Income _Verification ,
All sources of income listed on the application will be verified by the HRA. The
following is a list of acceptable forms of income verification evidence:
1. Written verification from employers or other it== providers.
2. Copies of four recent checks or cheek stubs, which la include the yeartodate
3. All applicants must submit complete federal ire tax returns for the last two years
unless household income is not taxable.
4. Statements of deposit from banks.
S. Copies of deposit slips indicating the deposits of a particular check.
6. Income derived from rem must be verified by the a= in writing or by examining
copies of checks or rant receipts.
The material used to verify income must not be more than 90 days old at the time of
approval. If the material is move than 90 days old, all income(s) must be re -verified
before an application can be approved.
Asset Verification
All assets listed on the application must be verified by the HRA. The following is the
only acceptable form of asset verification evidence:
1. Written verification from banks, insurance companies or other asset holders; and
2. Copies of bank statements, insivauoe policies, premium notices and the like.
The date of document used in verifying assets must not be more than 90 days previous to
the date of approval. If it is more than 90 days old, assets must be re -verified before an
application can be approved.
The HRA will ensure that the mortgage(s) and/or contract for deed(s) on the property to
be improved are cmrem. If payments are delinquent. the applicant must be given four
weeks to make them current. The date of the document used in verifying the mortgage
and/or contract for deed must not be more than mays previous to the date of approval.
V it is more than 90 days old, the mortgage status must be re -verified before a loan
application can be approved:
Title Verification
1. The following information will be obtained from the County Recorder regading each
a The td name of all owners of record, exactly as they aonear on the title:
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b. Whedw it is Torten or Abstract.
2. Upon obtaining this informntion, the HRA will determine that the applicant
individually or in the aggregate has a qualifying inset in the property consisting. of
at least:
a. A valid life estate. Such life estate must be recorded and must appear in ,the
records of the County; or '
b. A 113 interest in the fee title. Such interest may be subject to a mortgage; Or
c. A contract for deed to the structure being improved.
3. In addition, ft appliciffit(s) must Occupy the property as the principal place of
residence. To consider a property the Odwillil Place of residePce. an individual must:-
a.
ust:
a. Reside in the property at the time of application (except where extraordinary
CiMUMSWMMhave made the property temporarily uninhabitable or in the can of
a disabled person or household member who is unable to move into the property
until needed accessibility modifications are made); and
b. Occupy or intend to occupy the property for at -least 9 months of the year.
4. For the purpose of complying with ownership requirements, the borrower may
aggregate his/her interest in such property with the ownership interest of other
individuals occupying the property as their principal place of residem
Pre -Construction Docnmaans
The application must be filled out completely and signed and dated by the Applicant.
ink dui Data Confidentiaiity
The applieanes rights as a subject of dela are fully described in this form. One form
should be given to the applicant and a signed and dated copy should be included in the
file.
1. This report must include the following items:
GL General condition Of the Structure
h Structural soundness
c. Plumbing Systems including: water supply, waste disposal, fixtures and piping
SYSUM
d. Heatrng systems
e. Electrical systems
E Roof
24
g, Energy efficitel• incl insulation, infiltration, windows, doors and p
ventilation
L General Exterior Conditions
L General hmrior Conditions
t
An explanation should be provided for any deficiency that appears on the inspection t}t
report but does = appear on the rehabilitation work summary for correction
E
The inspection report must be signed and dated by the inspector performing the
2. Major infractions of the City building codes constituting a health and/or safety hazard ;
or seriously diminishing the habitability of the residence will be noted and explained
to the applicanL The applicant will be required, as a condition of funding, to contact
the HRA Building Inspector to establish that repair of these major infractions is
within the scope. of available finding. A copy of the HRA Building Inspector's
written report must be included in the file. If it is determined that the cost of
neces.Qary repairs exceeds the available finding, then the loan approval will be
with& -awn
Scope of m- —W-odk Bmq2W
fisting of all eligible improvements should be kept on file in case the homeowner
requires additional copies. Copies will be sent to the homeowner with a mandatory.
cover letter encouraging the consideration of minority or women -owned contractors and
including information on how to access such contractors. A copy of this letter will also ;
be included in the file. `
The Scope should allow contractors the opportunity to submit alternates or amendments
to work items.
The HRA, in conjunction with the homeowner, determines the work to be done with the
fimds available. If the homeowner disagrees with the HRA's choice of improvements,
items may be waived by the homeowner, in writing, at the discretion of the HRA. The
rehabilitation work summary list includes:
1. The improvements to be done by item, and contractor performiag work and a
breakdown of costs by item and contractor.
2. 'The total cost of the work to be performed shall be listed. The maximum loan. amount
shall not exceed the 19W of:
a, $20,000.00; or
Jb. The actual cost of the work performed
25
EXCEPT when the project involves accessibility or lead based paint improvements,
where themaximum loan amount may be 530,000.00.
3. The HR 4, Executive Director may approve an additional loan amount of $5,000.00 if
the amounts _authorized above are iasufficient to bring the home up to minimum
property standards,
Contractor Proposals
The homeowner must obtain a minimum of two proposals for all of the authorized
improvements before work can begin. A Repayment Agreement must also be signed and
notarized before work start-up. All proposals must conform to the minimum standards of
the specifications. The lowest bid will be accepted unless customer specifies they are
paying the diffaence between the low bid and the high bid.
Work Contract
Work contracts will be completed between the contractor submitting the lowest
acceptable proposal and the homeowner. A copy of each proposal must be included in the
Work Contract. shall be completed within the time frame specified on the Work
Contract. The HRA may grant an extension as needed. If the contractor does not begin
or complete the work within the time frame specified, the work contract may be canceled
and a new contractor selected.
Amendment Request Certificate
This form outlines all changes in the approved loan amount, either additions or
subtractions, by each contractor. It must be signed by the contractor and the homeowner
and approved by the HRA. Every effort will be made to keep amendment requests to a
minimum; however, it is appropriate to use the amendment request as a means of dealing
with unforeseeable circumstances.
Swom Construction Statement
Any firm or individual contracted to perform work on the residence must submit a sworn
construction statement prior to any work taking place on the property. The sworn
construction statement must list all subcontractors and/or suppliers contributing to the
work for which the invoice is being submitted and must be signed by the contractor
holding the Work Contract. The contractor's signature must be notarized: The purpose
of this form is to ensure that the contractor holding the Work Contract is liable for any
Mine to pay subcontractors/suppliers involved in the project.
4
26
dM wledement of Receipt of
The applicant's file will contain a signed and dated receipt from the applicant,
aclmowledgmg that the HUD approved information on the dangers of lead based
poisoning bas been received. Also this acknowledgment states applicant received a blank
copy of a Work Contract. an improvement of work procedures form, a copy of the
Repayment Agreement, an individual data confidentiality statement, an authorization to
release information form and, information on minority and women, owned businesses.
This fotm provides information pertaining to environmental amassment, historical
presevation, Section 8 Housing Quality Standatds, Census tract data, Zoning
classification, household sm% assets, and annual income.
Renavment Aereement
The Repayment Agreement. must be included in the loan package. As specified in the
provisions of the Repayment Agreement, the homeowner shall be required to notify the
HRA immediately upon the sale, transfer, conveyance or cessation of residency of the
Property.
1. The Repayment Agreement provides that in the evert that the. iL-.roved property is
sold, transferred, or otherwise conveyed. by the homeowner within the specified time
period, the homeowner would be required to pay the full amount of the loan within
ter (10) years from the date from the approval date of the application, if the property
ceases to be the homeowner's principal place of residence. Should the homeowner
retain the property longer than 10 yeas but less than 20 years, he/she shall pay an
amount equal to a 10% reduction each year after the I I& year until the 201° year when
the full amount is fa -given. The Repayment Agreement is a lien on the improved
property, in favor of the HRA, as security for the loan amount. In the event of the
death of the homeow,er, this lien may pass to hislher heirs provided they continue to
occupy the property as their prmciple'place of residence.
2. T!e HRA will exercise extreme care in the execution of the Repayment Agreement
document to ensure that the lien is valid. Aay inaccuracy or omission may have a
negative effect on the validity of the lien.
Prior to the approval of the loan package $be HRA MLO arsure that the Repayment
Agreement be properly completed in as much as:
a The property description must be ,exactly as it appears in the property records. If
the applicant owns property other than the property to be improved, only the
description of the property to be improved should be included.
27
f
b. The record names (the names exactly as they appear in the properly records) must 1.
be used by all signatures required.
3. The following is a brief discussion of the signatures required under particular Property
ownership situations:
a. Any JOINT TENANCY — signatures of all joint tenants are requited.
b. property held by ONE SPOUSE — signatures of BOTH spouses are required.
C.. property held in I.hFE ESTATE — signatures of the applicant (life estate holder)
and all of the remaindermen.
d. property being purchased on CONTRACT FOR DEED — signatures of the
applicant and all individuals who are aggregating their interest to meet the
ownership requirement, and the fee title holder (and spouse or others, as
applicable) of the property, and the signatures of any intervening vendea of thea
contract for deed.
e. All required signatures must be notarined, including the "mark" of a signatory
who is unable to write (such a mark must be witnessed by at least two persons
other than the notary). Additional acknowledgments may be added to the
Repayment Agreement form to accommodate any necessary notarizations.
4. The Repayment Agreement will show the maximum loan amount. Should less than !
the maximum loan be needed, the applicant will only be required to repay the actual
amount expended for improvements. An amendment to the Repayment Agreement
will need to be signed upon closure of the file where the exact dollar amount on the eI
original Repayment Agreement is not the actual amount used.
5. The Repayment Agreement and any Amendments to the Agreement shall be filed
with the proper recording office in such a manner as to create a valid lien against the
property. It is the responsibility of the HRA to record the Repayment Agreement.
6. If any loan funds are used for purposes other than an eligible improvement upon an
eligible property or if the homeowner application is found to contain a material
misstatement of fact, the homeowner shall be liable for repayment of all or part of the
originally approved loan funds. In addition, any fraudulent use of funds may subject
the recipient to fires andior imprisonment under the Minnesota Criminal Code.
Post -Construction Documents
invoices must be obtained from each firm or individual contracted to perform work on the
residence (a general contractor can submit invoices on behalf of a subcontractor).
Invoices must be provided for all payments, interim or final. Invoices submitted to the
HRA must be originals and not copies. payments are typically processed the following
Monday providing that the invoice was received by 4:30 pm on Wednesday.
28
Lien Waivers.
A copy of all. lien waivers referred to in the swam construction. statement, plus the lien
waiver from,the contractor holding the Work Contract must be included in the file. The
original lieu waivers, which must be secured before any payment is released, are to be
passed onto the homeowner following closeout of the file.
Comaletion Certificate
The homeowner, inspector, and grant administrator should sign this form when the work.
is completed. If the approval of more than one inspector is required, then copies of the
inspection notice(s) should be attached
Complaint Record
This form should be used to document any complaints brought to the attention of the
HRA, pertinent to the administradon/implementation of the program and the response of
the HRA to the complaint
9 A..I..... Wedgment of Receipt of Post-ConstNCtion Documents
After work has been completed, this form would be sent to the homeowner with
documents such as the lien waivers) and copy of recorded Repayment Agreement. The
homeowner would aclmowledge receipt of the documents and return the form to the HRA
for inclusion in client's file.
PART N: RULES
Lead Based Paint Hazard Requirements
The following procedure will be followed for all homeowners:
A. Discussion of the Lead Based Paint (LBP) requirements will take place at the initial
meeting with HRA staff as well as receipt of the Lead Hazard Information pamphlet
The Certification of Receipt of LBP information will be signed by the applicant and
kept in the applicant's file.
B. The Rehabilitation Inspector will perform a visual assessment during the regular
rehab inspection. The Visual Assessment will identify the presence of any interior
and exterior deteriorating paint. The inspector will document the presence of any
deteriorated paint.
C. if deteriorated paint is found in a home built before 1978 and lead hazard reduction
i work may be needed because painted surfaces will be disturbed during rehab, the
29
appropriate level of lead testing and other action will be initiated. The HRA can also .
assume there is LBP and treat appropriately rather than test.
D. If further evaluation is seeded, the HRA will contract with a certified Risk Assessor
to perform the necessary tests to determine if and where there is a lead hazard risk.
The Assessment report identifies the presence and location of LBP and the arcs that
should be addressed. Costs of hiring a Risk Assessor can be rolled into the Rehab
loan.
E. If LBP is found, the homeowner will be notified of the presence and location of LBP
by the HRA. As a condition of receiving funding, LBP hazards must be addressed
and .lead safe work practices will be required for all rehab work that disturbs painted
surfaces. Appropriate lead hazard reduction measures must also be incorporated into
the Scope of Improvements. Clearance of the unit will also be required. A copy of -the
clearance reports will be given to the homeowner and kept in the homeowner's file.
Repayment of Assistance
Repayment of the defernd payment loan shall occur upon the earliest of:
Sale, transfer, or conveyance of the property
The property ceases for any reason to be the loan applicant's principal place of residence.
At the time of repayment, the HRA will prepare and execute a Satisfaction of Repayment.
The Satisfaction of Repayment will be sent to the Tide Company (if one is involved in the
transaction), who will be responsible for recording the Satisfaction with the County. If a
Title Company is not involved the HRA will cause the Satisfaction to be recorded. At the
request of the homeowner, the HRA will send the homeowner a copy of the Satisfaction a
well as the original Promissory Note indicating it has been satisfied.
Forgiveness of Indebtedness
IrdebaAwss of the principal shall be forgiven at a rate of 10% of the original principal
amount per year commencing at the end of the tenth year of the HRA loan. The loan will be
completely forgiven after the twentieth year. At the time of the forgiveness, the HRA will
prepare and execute a Satisfaction of Repayment. The Satisfaction of Repayment will be
recorded with Hennepin County by the HRA. At the request of the homeowner, the HRA
will send the homeowner a copy of the Satisfaction as well as the original Promissory Note
indicating it has been satisfied
Subordination Policy
A. The following information must be provided before a request for subordination can be
considered:
0
30
1. Current first mortgage balance, interest rate and term
2. Reasons for new financing (or use of proceeds from new financing)
3. Proposed loan amount and interest rate and term
4. Title work for proposed loan
S. Copy of appraisal
6. Most repeat Hennepin County market value of property
7. Information on other loans on property, including balance, rate and term
9. Date HRA loan was filed with County and document number
10. Full name, address, phone number and e-mail address of new lender
11. Good Faith Estimate Som new lender
B. Information provided will be analyzed to determine the approluiateness of subordination
of the HRA's mortgage. All of the following criteria must be met before subordination
can be approved:
1. All current and proposed property Gens equal less than 95% of the appraised value of
the property.
2. The subordination is necessary to refinance the principle balance of existing prior
Hens on the property plus related costs and finance additional eligible home
improvements. Up to 20% of the net proceeds of the loan may be used for other uses.
Loans to finance home improvements will only be subordinated if most of the
improvements are eligible under the Home Rehabilitation Program Guidelines. The
HRA's Executive Director may waive this requirement, without Board action, if the
housing rehabilitation client is able to prove that the proposed refinance would
Taficantly improve their overall long-term financial situation.
3. All eligible improvements identified as needed by HRA under the Housing
Rehabilitation Program Guidelines must be done as part of any proposed financing
before any funds are used for other improvements or consolidation of other debt into
the new financing as a condition of the subordination
4. Subordination must be justifiable as an appropriate use of public funds and in terns .
of the purpose of the original loan to provide assistance to income qualifying persons
without the means to maintain their home.
S. Tbe borrower(s) must correct any errors and omissions relating to their lo9n as a
condition of the HRA granting a subordination request. This requirement would
incline but net be limited to documents that are not signed (but the intent was to have
them signed), documents with clerical errors and/or documents that are missing or
destroyed.
C. if the above criteria are not mat, the HRA will not subordinate its mortgage. The client
will then reed to either obtain financing that is subordinate to the HRA's mortgage or
pay -of the HRA's loan as a condition of the financing.
D. Appeals regarding interpretation of subordination requirements may be made in writing to
the HRA's Executive Director and then to the HRA Board of Commissioners. Requests
Jfor appeal, which clearly do net meet the subordination requirements, will not be
considered.
31
Targeted Funding
The HRA will also set aside a portion of the budgeted rehab funds to be used for Small
Repair Giants. The amount of finds will be set by staff based on anticipated demand for the
program and balance of rehab fund.
Modification and Termination of Program
The Plymouth HRA may amend rhe Procedural Guidelines from time to time by issuance of
revised pages, which shall be effective as of the date of issue, or such later date as the
amendment shall specify: Administrative memoranda may also be issued which discuss
policy interpretations, clarification of procedures and other administrative matters.
Additional Funding Requirements/ Provisions
jiquity Requirement
The lien identified in the Repayment Agreement must be collectable. All existing
mortgages, contracts for deed, and other encumbrances, including the Repayment
A9emren1, must not exceed 100% of the market value of the property. Marketvalue
will be determined by the most recent assessed value of the property. If thehomeowner
has a current appraisal, the appraisal may be used to determine the market value of the
property if necessary to show sufficient equity.
The equity requirement may be waived at the discretion of the HRA Executive Director in
can of emergency repairs.
Previous Rehabilitation Loans
No property shall be eligible for a housing rehabilitation loan if it has been improved with
a Plymouth HRA rehabilitation loan within the 10 -year period immediately preceding the
date on which application for such a loan is made. An exception may be made in
actraordinary circumstances from damage to the property as a result of events beyond the
control of the applicant or relating to health and safety concerns, such as failure of
plumbing, heating or electrical systems, or as determined by HRA staff. In such.
circumsances, provided that funding rs available, the applicant can receive assistance
limited to correcting the damaged orfai A system(s) only. No other eligible work can be
carried out until the full 10 -year period bas elapsed.
Applicants with a previous rehab loan from over 10 years ago will be limited to essential
repairs such as correcting health and safety hazards or repair of major systems, such as
plumbing, electrical, or heating failure. - Until the previous rehabilitation loan is forgiven,
no additional work will be allowed unless it is determined by HRA staff to be essential.
32
w •
Previous Foreclosures
1
Applicants will be determined ineligible for future assistance if they had a previous
Rehabilitation loan from the HRA in "%ch the assistance they received was forfeited due.
to f reclosure of the property within the previous S years. If the foreclosure occurred
over 5 years. firm the date of the new Rehabilitation application and the applicant has re-
established their credit from a reliable first-tier mortgage company, they may be
considered for eligibility to the loan program again.
Total Amount of Assistance
The total amount of assistance received through the Plymouth HRA cannot exceed
S30,000 (unless a prior Plymouth loan had been paid off to the HRA). If the repair is
n. ssaty for the aft or livability of the home, the repairs will be limited to correcting
the problem.
671! 1 l=il 0711 7-71:_
The homeowner must be current on all mortgage payments, Property taxes. income taxes
and bomeownces association dues.
Home Maintenam and Housekeenim
Homeowner must be capable of maintaining the home. Loans will not be approved if the
condition of the home demonstraaa ¢hat the homeowner is not able or willing to properly
maintain a home. This requirement includes housekeeping problemsas well as neglectful
maintenance.
The administering entity will comply with the flood insumace purchase requirements of
Section 102 (a) of the Flood Disaster Protection Act of 1973, Pub. L. 93-234, 87 Statute.
975, approved December 31, 1973. Section 103 (a) requires the purchase of flood
insurance in communities where such insurance is available as a condition for the receipt
of any federal financial assistance for construction or acquisition purposes for use in any
area that has been identified by the Secretary of the Department of Housing and Urban
Development as an area having special flood hazards. The phrase "federal financial
assistance" includes any form of loan, guarantee, insurance payments, rebate, subsidy,
disaster assistance. loan, or any other form of direct or indirect federal assistance.
Each improvement must be made it :: r . ce with all applicable health, fire
prevention, building and housing code:: -Ands. However, no application for a
33
loan shall be denied solely because the improvements will not bring the property into full
compliance with all such codes and standards.
Further, when work is done on any system within the house, upon completion of the work,
that entire system must .meet applicable codes and standards. The entire structure .may still .
contain other systems that are not up to applicable codes and standards, on the condition that
no work wws done on these systems.
Nothing in the Procedural Guide shall be construed in such a manner as to conflict with,
alter, or amend any Federal, State and Local regulations.
1. fbe HRA is legally authorized and constituted to administer the Housing
Rehabilitation Loan ftWam in the State of Minnesota
2. No payments, fees or remuneration of any type whatsoever have been solicited or
received from any applicants or qualified homeowners.
3. After reasonable inspection, the HRA has no knowledge that any improvement
covered by the loan is in violation of any applicable zoning law or regulation.
4. Any employee of the City of Plymouth who is authorized to sign or countersign.
checks, drafts or to certify voLchers shall be covered by a surety bond of not less than
1,000,000; such an enplo)ee must be an authorized signatory as evidenced by a
written instrument of the governing body.
5. The HRA. shall maintain documentation accounting for all funds received through the
collection of liens as prescribed in the Repayment Agreement.
No applicant shall be charged any application, processing, or other fee.
Lwef-71U-f 1LL^- nI" - ,L]
1. To ensure that cost reasonableness standards as outlined in OMB Circular A-87 are
complied with, all proposed work will be described. in a Scope of Improvements (see
page 22) in such detail that competitive bids may be readily obtained. The Scope of
Improvements will specify brand, type, and/or quality of the materials to be used as
appropriate.
2. The HRA. Inspector will use the Scope of Improvements when making inspections to
detennine compliance with the Scope cod City codes.
34
Additional Connuieliag/ Training Requirements
Credit Counseling
Those diems in need of credit counseling willbe referred to Community Action for
Suburban Hennepin (CASH) in Hopkins. CASH is a non-profit 501c (3) community
action agency serving Plymouth and a number of other west suburban communities.
Homeowners who appear eligible for one of MHFA's programs, but who indicate they
have a mortgage delinquency or other credit problems, will first be encouraged to
participate in a credit counseling program.
Ager credit problems have been satisfactorily resolved, the Deferred loan applications
can be forwarded to Hennepin County Housing, Community Works and Transit for
eligibility assessment of MHFA programs.
Applicants for MHFA's Fix -Up Fund and Deferred Loan Program will be referred to a
local lender. All applications rejected for MHFA funding may be eligible for City
assistance according to CDBG guidelines. Homeowners unwilling to pursue counseling
assistance or who are unwilling to resolve existing credit issues independently will find
City finding restricted to certain essential improvements. Funding for these applicants
would be limited to the following repairs in the priority given:
1. Emergency health and safety.
2. Public sewer and water book -up.
3. Major structural work, when: the bone's strtrctrual integrity (i.e. foundation, beams,
walls and roof) is compromised and is in need of prompt repair to prevent fund=
damage or deterioration to the home.
4. Major internal systems (i.e. plumbing, beating, water, electrical) that are fumcdonal
but meed replacement or upgrading under current code requirements.
S. Other code violations
Home Maintenance and Weatherization Training
Clients in need of this training will be urged to attend, as classes are available. Funding
may be restricted to the essential improvements sited above for clients who are unwilling
to attend these or other workshops sponsored by Community Action of Suburban
Hennepin (CASH)..
qtr
Clients in need of counseling will be referred to appropriate human service agencies for
assistance. if the client refusee the referral and staff determines counseling is required in
order to allow the rehab to proceed, no further assistance will be allowed.
35
APPENDIX A•. DEFINMONS .
Accaaibi4q+ Impmv mmts
Improvements to a dwelling; designed to enable a disabled person to fimction
independently in a residential setting, such as provisions for adequate. space for
maneuvering, access and egress, (both in exterior and interior spaces), and. installation
of COPment to facilitate ease of use.
Applicant
An individual or household submitting an application for a loan
Assets
Cash. bank accounts, bonds and cash value of insurance policies, cash vane of
recreational vehicles and any other personal property excluding automobiles, clothing
and furniture.
CASH
Car airy Action ibr Subre ban Hennepin, a non-profit community action agency
serving Plymouth that provides financial counseling services to lower income. .
households. .
MING
The Can mnity DeMbpownr Block Grant Program, an annual entitlement program
provided to the City of Plymouth through the U.S. Department of Housing and Urban
Development (HUD)
CEE
The Center Jbr Energy and Environment, a non-profit agency that administers
Relianfs Weatherizedon Assistance Program.
Date of Loan Approval
The date all required Parties sign the repayment agreement
Disabled Person
A person who has a permanent physical condition which substantially impairs the
ability to function independently in a residential setting, or which substantially limits
the ability to become employed or to participate in the community. A person with a
condition such as chronic emphysema, arthritis, heart disease and other °invisible"
conditions not requiring the use of devices to increase nobility shall not be deemed a
handicapped person, unless a Ikensed ohvaician verities in writian that a particular
condition does substantially limit the ability to frmction independently in a.residential
setting, to become employed or to participate in the community.
L7J
36
Elevated Blood Levd
A lead content of 10 ug/dl (micrograms per deciliter) with a lead content of 20 ug/dl
micrograms per deciliter) in one test triggering an inspection.
Emergency Situation
A condition requiring immediate and urgent attention, which threatens or imperils the
health and/or safety of the applicant household. The written opinion of the City
Building or Housing Inspector detailing a code or safety violation or violations may.
at the discretion of the Housing Specialist, be an acceptable definition of an
emergency situation.
Hennepin County Hoosing,.Commanity Works and Transit
The Hennepin County Housing, Community Works and Transit, a Hennepin County
agency that processes MHFA housing rehabilitation loans.
Household Gross Income
The arcual income of all residents of the applicant's household, as determined in
accordance with these guidelines.
Housing Rehabilitation Deferred Loan
The commitment of funds .m behalf of qualified homeowners for the purpose of
j
making eligible imprmwmeats to eligible properties.
HUD
The United States Department of Housing and Urban Development.
Lead Based Paint
Any paint surface with lead content greater than, or equal t% I mg/emi, 0."6 by
weight, or 5,000 parts per million.
Loan Process
Consists of all applicable documents listed as follows:
Homeowner Application for Deferred Loan
Authorization to Release information
individual Data Confidentiality
I.ead-Based Paint Poisoning Notification (ijneeded)
Federal Income Tax Rehm for the two previous years
Income Verification
Asset Verification
Recent Bank Statements
Mortgage Status Verification (ifneeded
Association Dues Status Verification (ifneeded
Title Verification
Property Inspection Report
Scope of improvements/Work Proposal
37
Contractor Bids
Work Contract
Amendment Request Certificate (ijaredw)
Contractor Bills
Swom Construction Statement
Lim Waivers
Completion Certificate
Data on Individual Loans
Repayment Agreement
MHFA
The Murnesom Housing Finance Agency; a Minnesota Stan agency that administers a
variety of housing rehabilitation loan programs.
Qualified Homeowner (borrower)
An individual or Imusebold meeting do requirements of the Eligible Recipients
section who receives a loan.
Repayment Agreement
A document that places a Gen against borrower properties improved with program
f rads. The precise terms of the lien are spelled out in the Repayment Agreement.
Resident
A person, other than a renter, .living in the household for at least nine months of the
year•
Work Contract
A program document executed by the borrower and the contractor which establishes
t'x urms and conditions under which program funded work will be carried out: The
HRA is NOT a party to the contract.
39
I
APPENDIX & INCOME :,INM
53,400 57,060 60,720
6 7 8
2004 Mssimnm Income Limb
6096 of ares median income edjosted for AonaehoM she as determined byHUD))
Household Size
1 2 3 4 S
32,220 36,840 41.400 -46.020 49,680
J
J
39
i
FIRST TIME HOMEBUYER PROGRAM
GUIDELINES
CITY OF PLYMOUTH
HOUSING AND REDEVELOPMENT AUTHORITY
3400 Plymouth Book%wA Plymouth, NN 55447
Revised Febmwy 2004)
OPPOST "IT
j
TABUS OF CONTENTS
PART L• GENERAL PROGRAM DESCRWMN
progRam Goals
Program Administration
Purpose of the Program Guidelim
PART II: PROGRAM POLICIES
Financial Assistance
Respoosibilities of the First Tier Homebuyer
Responsibilities of the Lada
Responsibilities of the HRA
Application to the HRA
Sumetary of the Application Process
Eligibility RwAkaomts
Denial of Eligibility
Eli jpblc Dwelbngs
Applicant Outreach
Applicant Pool
Scleaion Som the Applicaet Pool
Lader Outreach
PART m: PROGRAM RULES
Dechir ums of Restrictive Covenants
Lead Based Paint Hamid Requvonents
Repayment of Assistance
Loan Forgiveness
Subordination of Mortgages
Targeted Funding
Modification and Taminsli of Program
APPENDIX A
Definitions
APPENDIX B
incase Limits
APPENDIX C
Participating Lades
1. .< is
AL
1
1
l
2
2
3
4
4
S
5
6
6
6
7
7'
7
7
8
8
8
9
9
9
10
10
PART I: GENERAL PROGRAM DESCRIP'T'ION
Programoverview
I
The Plymouth Housing mW Redevelopment Authority (HRA) operates an assistance program for
homeownership funded by the City of Plymouth's Community Development Block Grant
CDBG) Program. The HRA operates this program on behalf of and as the agent of the City of
Plymouth. The First Time Homebuyer Program provides financial assistance for low- anu .
moderate -income Households to become homeowners.
Administration of the First Time Homebuyer Program and the functions and responsibilities of
the HRA stats shall be in compliance with the U.S. Department of Housing and Urban
Development (HUD) CDBG regulations as well as all Federal, State and local nondiscrimination
laws and with the rules and regulations governing Fair Housing and Equal Opportunity in
housing and employment.
The HRA shall not deny any Family or individual the equal opportunity to apply for or receive
assistance under the First Time Homebuyer Program on the basis of race, color, gender, religion,
creed, nationil origin, age, familial or marital status, handicap or disability, sexual or affectional
orientation or reliance on public assistance.
The Plymouth HRA's office is accessible to persons with disabilities. Accessibility for the
hewing impaired is provided by the Minnesota Relay Service and'the City of Plymouth TDD.
Program Goals
The First Time Homebuyer Program has the following two goals:
s. Assist low- and moderate -income families to purchase homes within the City of
Plymouth by providing assistance with down payment, Closing Costs and mortgage
principle reduction.
b. Promote responsible home ownership.
Program Administration
The Program will be administered through the Plymouth HRA. Interested applicants should
contact the Plymouth HRA stats by calling (763) 509-5410 or appearing in person at 3400
Plymouth Boulevard, Plymouth. MN 55447.
i
purpose of the Program GuIdWues
The purpose of these Guidelines is to establish policies for carrying out the First Time
Homebuyer Program in a manner consistent with HUD requirements and local goals and
objectives contained in the Consolidated and Annual Action Plans. The HRA is responsible for
complying with all changes in HUD regulations pertaining to the CDBG program. If such
changes conflict with these Guidelines, HUD regulations will have precedence. Applicable
regulations include:
24 CFR Part S: General Program Requirements
24 CFR Part 8: Nondiscrimination
24 CFR Part 570: ' Community Development Block Grant
24 CFR Part 35: Lead Based Paint Regulations
PART 11: PROGRAM POLICIES
Finanebd Assistance
The HRA provides financial assistance to homebuyers to more readily secure a first mortgage.
The Program assistance may be used to:
Pay up to SO percent of the down payment required by the lender.
Pay up to 100 percent of eligible Closing Costs not to exceed $5,000.00. Borrowers are not
permitted to use HRA funds for interest rate buy downs unless documentation is provided
from the lender that shows the buy down is necessary to secure their primary mortgage.
Reduce the mortgage principal. up to 10% of the purchase price to a maximum of $20,0 V.
Borrowers are expected to contribute at least 28% of their gross qualifying income toward
their monthly payment before Plymouth's financial assistance can be used for reduction of
the mortgage principal.
The financial assistance will be provided at a minimum amount of 53,000.00 and a maximum
ount of $25,000.00. In certain situations, the HRA Executive Director may allow assistance
in excew of the maximum at their discretion. The HRA will make a determination on the
amount of assistance an applicant qualifies for. The HRA will make this determination after
reviewing the applicant's verified income and assets, estimated Closing Costs, purchase
agreement, and lender's recommendations for financial assistance in compliance with uses
described above. Lenders must provide a pre -approval letter indicating the maximum amount of
financing the borrower would qualify for from the first mortgage lender.
The HRA will verify an applicant's income and assets through third party written verifications as
provided by either the lender or as sought by the HRA. The HRA may re -verify income and asset
information provided by the lender. The HRA will calculate the applicant's Gross Annual
Income using pay stubs and recent tax returns or third party verification as defined in Appendix
A to ensure the Family qualifies as a low- or moderate -income Household as required by CDBG
regulations and to determine the maximum amount of assistance.
Financial assistance will be provided at the time of Closing on the property with the following
conditions:
Selected applicants must meet the requirements of this Program and be eligible for the
financial assistance through out the entire application process.
The housing unit to be purchased and the purchase price must be accepted by the HRA as
meeting the intent and requirements of the program.
The financial assistance provided by the HRA is in the form of a no interest deferred payment
loan that is due and payable 30 years from the initial purchase date or when the house is sold,
transferred or no longer the primary place of residence, whichever occurs first.
Thehomebuyers must enter into a second mortgage and execute a promissory note with the
HRA providing for repayment of the indebtedness 30 years from the initial purchase date or
when the house is sold, transferred or no longer the primary place of residence, whichever
occurs first.
Responsibilities of the First Time Homebuyer
The responsibilities of the prospective homebuyers are to:
Complete, sign and return the Application, Authorization for the Release of Information
form, and other certification and verification forms within the time frame specified.
Register and attend the Home Stretch - Home Buyers Workshops offered by Community
Action for Suburban Hennepin (CASH). Classes must have been completed within 12
months prior to Closing. Classes offered through other agencies or realtors may be
substituted with prior approval of the HRA. Applicants must also attend an individual
counseling session with a Housing Counselor at CASH. If CASH recommends that the
applicant is not ready to purchase a home, the HRA may not provide assistance until the
applicant has satisfied staff concerns. The applicant will be provided with a certificate of
attendance. A copy of this certificate should be forwarded to the lender and the HRA.
Select a lender approved by the HRA for participation in the Program.
Complete etre pre -approval process.
Select a real estate agent, if one is desired.
Select a dwelling in Plymouth for purchase that is owner -occupied or vacant and is an
eligible dwelling under the Program.
Provide information throughout the process as required by the lender or HRA.
Execute a purchase agreement.
Execute the lender's mortgage.
Execute the HRA's mortgage and promissory note.
Have the seller execute the HRA's disclosure to seller form.
Close on the property within the time frame specified.
Execute other required forms within the time frame specified or required.
Take occupancy of the dwelling within 30 days after Closing, homestead the property, and
continue to occupy the dwelling as your principal place of residence.
Make principal, interest, property tax and insurance payments as required.
Reimburse the HRA in accordance with the HRA's mortgage and promissory note should the
JFirst Time Homebuyer trigger repayment through sale, moving, transfer of ownership, or
foreclosure within 30 years or default on any other terms of these documents.
RaponsibUitks of the Lender
The lender must:
Verify the prospective homebuyees income and assets to determine that the Family meets the.
requirements of the Program and submit a copy of tha verification to the HRA. These copies
must be submitted to the City at least ten days prior to the applicant signing a purchase
agreement
Compute the mortgage. down payment, mortgage payments and Closing Costs of
Conventional, ARM, Fannie Mae. FHA and where appropriate. VA mortgages to determine
the most. cost-effective andappropriate form of financing for the Fust Time Homebuyer to
use.
Provide a title search and review the documents.
Provide the HRA with a pre -approval letter stating the maximum mortgage amount the
applicant is approved for.
Provide the HRA other verification materials as requested by the HRA.
Process a mortgage consistent with the Program.
Mat all daidlines in a timely fashion, especially those that relate to the Closing. All
documents must. be completed at least 10 days prior to the Closing and be delivered to the
HRA at least seven days before the Closing.
Appraise property to determine the loan -to -value ratio.
RaponaibWdes of the NRA
The responsibilities of the HRA for the Program are to:
Establish Program requirements and administer the Program.
Send eligible applicants the application form, the authorization for release of information
form and other certification and verification forms.
Review the Application and other material for zligibility.
Establish the pool of eligible participants and make selections for participation in accordance
with the selection provisions..
Notify applicants when ineligible.
Direct prospective buyers to register for the CASH homebuyer workshops and provide
information and forms related to the Program.
Provide liaison services involving the prospective buyer, lender and any real estate agent that
might be involved in the transaction.
Review appraisal, purchase agreement, eligibility and mortgage for consistency with the
Program requirements.
Prepare and execute the HRA mortgage and promissory note.
Provide financial assistance amrding to Program guidelines to the applicant at the time of
Closing.
Service the HRA mortgage.
Modify or terminate the Program as may be appropriate or required.
Application to the BRA
R is the responsibility of each applicant to assure tbat'the HRA receives his or her application.
only applications with original signsnres will be accepted. Applications faxed to City Hall will
not be accepted.
At the time of application. applicants must provide the HRA with the following information and
meet the eligibility requirements:
Names of all Family and household members
Address and telephone number
Social Security numbers of all adults
late of birth of all Family members
Number of adults in Family
Number of children in Family
Total Gross Annual income from all sources (i.e. employment, social security income, child
support, etc.) with pay stubs and three years of tax returns as documentation
Assetsmith bank statements as documentation
Employer's name (Company Name)
Address and phone number of each employer
Length of time (in years and months) at present address
Last dove previous addresses
Indication if applicant ever owned a home
Seminary of the Application Proem
The following is a summary of the application process.
The applicant registers for and attends the homebuyer workshop series through Community
Action for Suburban Hemtepin (CASH).
The applicant arranges for and attends a private housing counscling sessior. with Community
Action for Suburban Hennepin (CASH).
The applicant selects a participating lender and applies for mortgage pre -approval.
The .,pplicant completes and submits a First Time Homebuyer application and authorization
for release of information form to the HRA with a mortgage pre -approval letter from the
lender.
The applicant searches for a home in Plymouth.
The applicant enters into a.purchase agreement and contacts the lender.
The lender authorizes appraisal of home.
The lender coniums applicant's mortgage eligibility and approves purchase.
The lender contacts the HRA with supporting documentation.
The HRA arranges for a lead-based paint hazard inspection of the property, if the dwelling
was built prior to 1978.
a The HRA reviews appraisal, purchase agreement good faith estimate, and eligibility
t' verification for consistency with program goals and requirements.
r/ • The.HRA issu-a an approval letter.
The HRA prepares the required closing da=ments
The HRA attends the Closing. At the Closing, the HRA has the borrower sign the required
closing documents and financial assistance is provided. in the form of a second mortgage.
Eligibility Requirements
To be eligible to participate in the Program, the applicant must meet the following requirements
at the time of application and through out the process up until Closing.
Must qualify as a Family, as defined in Appesiffix A.
Must be a U.S. citizen or have legal immigration status.
Must be a First Time Homebuyer, as defined in Appendix A.
Must not have a Gross Annual Income that exceeds the maximum listed in Appendix B based
on Family size. income limits will be revised annually to reflect the current year's CDBG
maximum income limits.
Must not have Gross Assets exceeding S25,000.00, which excludes one automobile.
Must have a minimum of 50 percent of the.down payment, if one is required.
Must meet the requirements of a participating lending institution and qualify for a first
mortga,;e.
Must fulfill the Program obligations in a timely mariner and must remain eligible to
participate based on the program requirements and those of the lender through the time of
Closing.
Must not have a previous loan through the Plymouth HRA that ended in foreclosure or any
other loan that ended in foreclosure within the previous five years.
Must mat the requirements as specified elsewhere in these guidelines.
Deeld of Eligibility
The HRA will review and verify all applications for eligibility. Those applicants not meeting the
eligibility requirements will be sent a written notice explaining the reasons) for denial of
Program participation.
Appeals regarding interpretation of eligibility requirements may be made in writing to the HRA's
Executive. Director and then to the HRA Board of Commissioners. Appeals that clearly do not.
meet eligibility requirements will not be considered.
Eligible Dwellings
To be eligible theproperty must meet the following requirements:
Be located within the City of Plymouth.
Be a single-family dwelling, a townhouse unit, or a condominium unit.
Bea conforming use as defined bythe Plymouth Zoning Ordinance.
Be free of lead-based paint hazards at the time of Closing.
The HRA may require an inspection of the dwelling for compliance with the Plymouth Housing
Code (Uniform Housing Code). The HRA will require an inspection of all dwellings built prior
to 1978 for compliance with HUD's lead-based paint hazard regulations.
Applicant Outreaeb
The HRA will publicize and disseminate information to make lmown the availability of
homeownership assistance on a regular basis through a variety of media and by other suitable
means. The availability of assistance will be communicated to other service providers and
Realtors in the community and advise them of the guidelines so that they can make proper
referrals for the Program. Realtors will be encouraged to provide additional services to eligible
clients to ensure their successful utilization of the program.
Applimt Pool
The applicant pool for the Program shall consist of all those who have completed and returned to
the HRA a Clete application, written verification fionn their lender of pre -approval, and who
are determined by the HRA to be eligible.
SdKd n from the Applicant Pool
As funds are available, applicants will be selected from the applicant pool on a first come, first
serve basis. Eligible applicants will be selected for funding when they or their lender notify the
HRA of the applicant's approved purchase agreement and mortgage. If funding is limited and
more than one applicant is at the purchasing stage, the HRA will provide funding to the applicant
who qualifies for the most preference points.
Preference points have been established to meet the goals of the HRA. Each preference category
is worth one (1) point. The maximum points any one Family could receive are five (S) points.
Families. with the highest point totals will be selected first. In the event of a tie, a drawing or
lottery will be held to rank the applicants within each of the preference categories.
Applicant with dependents underage 18
Live in Plymouth at least 90 days prior to Closing
Head or co-head has primary+, long -tern employment in Plymouth
Currently holding a Plymouth Section 8 Voucher
Never owned a home (versus having owned a home over three years ago)
Selection fiorr the applicant pool is tentative and conditional. Families selected for participation
must fulfill the Program obligations in a timely manner and must remain eligible to participate
based on the program requirements and those of the lender through the time of Closing.
Lender Outreach
The HRA will solicit lender participation as needed. The HRA will review requests fiom lenders
to be approved as a participating lender of the First Time Homebuyer Program. The lenders must
be FHA approved and exhibit a willingness to provide mortgage products to low- and moderate -
income Households.
J
PART HI: PROGRAM RULES
Lenders
The leaders and their representatives listed in Appendix C have agreed to participate in the First
Time Homebuyer Program and have been approved by the HRA. Applicants must contact one of
those participating lenders and mage arrangements for obtai" mortgage pie -approval.
Financial assistance under this Program will not be provided to secure mortgages from any other
lenders.
Declarations of Restrictive Covenants
From time to time, declarations of restrictive covenants may be placed on properties as a
condition of First Time Homebuyer assistance. Declarations of restrictive covenants are placed
on soleal properties to ensure that these properties are owned by low- and moderate -income
houseboWs. Declarations of restrictive covenants may also restrict the resale price of select
housing units in an attempt to keep the units affordable.
Lead Based Paint Hasard Requirements
All applicants purchasing a dwelling built prior to 1978 will be provided with a lead based
paint brochure and must sign a certification of receipt of the brochure.
As a condition of funding, the applicant will be required to purchase a home free of LBP
hazards. Final approval of the property will be dependent on a physical inspection. If the
dwelling was built prior to 1978, this will include a Visual Assessment Por deteriorated paint.
The City's HQS inspector will perform the basic Visual Assessment. Applicants will be
informed that the inspection is only to determine the presence of deteriorated paint and that
they may also want to obtain a complete Home inspection from. a certified Home inspector.
If deteriorated paint is found, a Risk Assessment will be required. The applicant will be
responsible for hiring a certified risk assessor. The HRA can assist the applicant by
providing information on entified Risk Assessors. The applicant must provide s copy of a
clean Risk Assessment report to the HRA before the home is approved for assistance. Ifthe
applicant refuses, the property will not be eligible for assistance. The applicant will need to
find another house that is or will be made LBP risk free in order to qualify for assistance.
If LBP risks are found, stabilization of the defective paint, cleanup and clearance will be
required before funds are approved for assistance. The presence of LBP risks should be
treated like any other defect found during an inspection and may be negotiated between buyer
and seller. Clearance will be required before the home can be safely occupied and will assure
that there are no remaining lead hazards. The applicant will be responsible for obtaining
proper clearance through a certified LBP clearance inspector. The HRA can provide
assistance in locating certified inspectors.
171
Repayment of Assistance
Repayment of the deferred payment loan shall occur upon the earliest of:
Sale, transfer or thirty years from the initial purchase date, when the Mortgage becomes due
and payable.
The property ceases for any reason to be the homebuyers principal place of residence.
Default on the mortgage with the HRA or any superior mortgage on the property.
At the time of repayment, the HILA will prepare and execute a Satisfaction of Mortgage. The
Satisfaction of Mortgage will be sent to the Title Company, who will be responsible for
recording the Satisfaction with the County. At the request of the homeowner, the HRA will send
the homeowner a copy of the Satisfaction as well as the original Promissory Note indicating it
has been satisfied.
Loan Forgiveness
Generally, the HRA will require that all First Time Homebuyer loans be repaid. However, the
HRA may waive repayment if the homeowner can prove n documented financial hardship. This
hardship may include the homeowner not having the resources to pay the HRA's loan back
requires a denial leiter from one or more financial institutions) or the property value declining
since the HRA's loan was taken out
Hardship requests shall be made in writing to the Hoasing Program Manager and will be
reviewed on a case -0y -cage basis. If the Housing Program Manager denies a hardship request,
appals regarding interpretation of the hardship provisions may be made in writing to the HRA's
Executive Director and then to the HRA Board of Commissioners, which has the final say in the
request Appeals that clearly do not mat the hardship requirements will not be considered.
Subordinadn of Mortgages
The HRA may subordinate the First Tune Homebuyer Program loan. The HRA will review and
respond to all requests for subordination within two weeks of the application date. The new
lender must provide the following information before a request for subordination will be
considered.
Proposed loan amount and interest rate.
Reason for new financing and use of proceeds by amount If financing will be used for
home improvements. specific information on the proposed home improvements must be
provided.
Amount of cash out to borrower, if any.
Reason(s) for cash out to borrower, if any.
Good Faith Estimate.
Effective date of current first mortgage, if any.
Current principal balance of first mortgage, if any.
Copy of'appmisal.
Most recentassessor's market value of property.
Types and amounts of any other indebtedness on property.
Date the First Time Homebuyer loan was filed with County and the document number.
9
Housebold's verified income and size.
Full name, address, telephone number and contact person of the new lender.
Date subordination agreement is needed (must be. at least two weeks from the date of the
requestl•
Information provided will be analyzed to determine the appropriateness of subordination of the
HRA's mortgage. The following criteria must be met before subordination of the loan will be
considered.
All current and proposed property liens, including the First Time Homebuyer loan, equal less
than 95 percent of the appraised value of the property.
The subordination is necessary to refinance the principle balance of existing prior liens on the
property plus any costs to finance additional eligible home improvements. At least 80
percent of the "cash out" received from any loan refinance must be used for home -
improvement related expenses, leaving the borrower with the remaining 20 percent to be used
for other expenses or debts. The HRA's Executive Director may waive this requirement,
without Board action, if the first time homebuyer is able to prove that the proposed refinance
would significantly improve their overall long -terra financial situation.
All eligible improvements required by the HRA under the Home Rehabilitation guidelines
must be done as part of any proposed firming before any funds are used for other
improvements or consolidation of other debt into the new financing as a condition of the
subordination.
The uses for the new financing must be justifiable as an appropriate use of public funds to
warrant subordination of the public funding.
The household income of the homeowner must not be greater than 1.25 percent of current
CDBG maximum income guidelines. Current guidelines are approximately 80 percent of
metropolitan median income as determined by HUD.
The borrower(a) must coact any errors and omissions relating to their loan as a condition of
C. HRA granting a subordination request. This requirement would include but not be
limited to documents that are not signed (but the intent was to have them signed). documents
with clerical errors and/or documents that are missing or destroyed.
If the above criteria are not met, the HRA will not subordinate its mortgage. The client can then
obtain financing that is subordinate to the HRA's mortgage, pay off the HRA's loan as a
condition of the new financing, obtain non -mortgage financing, or forgo theadditional financing.
Appeals' regarding interpretation of this Subordination Policy may be made in writing to the
IUWs Executive Director and then to the HRA Board of Commissioners. Appeals that clearly
do not meet. the subordination requirements will not be considered.
Targeted handing
At various times, the HRA may target Program funding for purchases in specific developments.
Applicants purchasing in those developments would receive Program funding prior to all other
applicants.
Modiiteadon and Terminattea of Program
0
The HRA may modify or terminate the Program as it deems appropriate or as required by HUD.
Once the HRA has provided financial assistance and the mortgage executed, financial assistance
10
shall not be rescinded except as provided for in the executed HRA mortgage and promissory
note.
I
APPENDIX A
DEMI IONS
Closloa - The consummation of the real estate transaction. The Closing includes the delivery of
a deed, financial adjustments, the signing. of notes, mortgages, and the disbursement of funds
necessary to complete the sale and loan transaction.
Closloe Costa - Those costs required by the lender to be paid by the buyer for various fem credit
report cost, insurance, etc. at time of Closing on property.
a of — A group of individuals who live or will five under one roof.
First: Time Homebaver - A Family who has not owned a dwelling of any kind within the
preceding three years from the date of application or who has been displaced due to a divorce
situation. (A Family purchasing a dwelling with a Contract for Deed is not eligible to participate
in this Program.)
Gross Annual income - The Gross Annual Income of a Household for the purposes of this
program is as defined for purposes of reporting under Internal Revenue Service Form 1040 for
individual Federal annual income tax purposes as per 24 CFR 570.3 and 26 CFR.
Gross Assets - The current market value of the following minus existing indebtedness:
1. Cash on hand
2. Cash in checking accounts
3. Cash in savings accounts, including accounts held in trust.
4. The cash value of life insurance policies.
5. The current market value of all interest in real estate. Included in this determination is
any land in which any resident of the Household holds title or is selling on contract for
deed. The value of the contract for deed property shall be defined as 100 percent of the
outstandigg balance on the contract at a time twelve months foliowing the date of the -
income and other asset verifications. The dollar amount of the difference between the
outstanding balance at the time of verifications and the outstanding balance twelve
months later shall be included as household income.
6. All other property, exclusive of household furnishings, clothing, and one vehicle. This
section includes, but is not limited to business equipment, boats, snowmobiles,
motorcycles, farm stock and additional vehicles.
7. If the applicant owns a business, in full or in part, and that business is incorporated, then
the business equipment is not an asset. if the business is not incorporated, the business
equipment is then considered a personal asset. The value of the ownership of the
business by the applicant is a personal asset. If the applicant owns less than 100 percent
of the business, written notarized proof of the percent of ownership must be provided by
the applicant to the HRA.
Hou — All persons residing in one housing unit, may include one or more families, a
single person, a married couple, or two or more unrelated persons.
A - The Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota
Low Income Family - A Family whose annual income does not exceed 80 percent of the median
income for the area, as determine by HUD with adjustments for smaller and larger families.
Morbran - The conveyance of an interest in real property given as security for the payment of a
loan.
12
Prompt - The HRA's First Time Homebuyer Program.
ZMEhssory Note - A written instrument containing a promise by the signer to pay an agreed
amount.
Parchase Agreement - An agreement between buyer and seller of real property, setting forth the
price and terms of the sale. Also known as a sales contract.
Redncine be. Mortgage Priaetoal Amount - A method of benefiting the buyer through the use
of a portion or all of the HRA provided financial assistance to lower the mortgage principal
amount. in effect, this assistance acts as a larger downpayment and, helps to reduce the monthly
mortgage payments. The available amount of assistance is up to 100/6 of the purchase price to a
maximum of 520,000. Borrowers are expected to contribute at least 28% of their gross
qualifying income toward their monthly payment before Plymouth financial assistance can be
used for reduction of the mortgage principal.
Second Mortgage - A loan on a property that already has an existing mortgage (the first
mortgage). The second mortgage is subordinate to the first.
Very Low Income Family - A Family whose annual income does not exceed 50 percent of the
median income for the area, as determined by HUD, with adjustments for smaller and larger
families. HUD may establish income limits higher or lower than. 5.0 percent of the. median__
income for the area on the basis of its finding that such variations are necessary because of
unusually high or low Family incomes.
13
APPENDIXB
INCOME LIMITS
2004 Maximum Income Limits
80% of was median income adjusted for household size as determined by HUD)
Household Size
1 2 3 1 4 1 S. 6 7 8
S4USO I MODO 551750 1 157 100 SGVOO S71 575900
14
J
J
MEN
APPENDIXC
PARTICIPATING LENDERS
The following lenders and their representatives are willing to participate in the Plymouth First
Time Homebuyer Program. They have received the Program Guidelines and arefamiliar with
the process. It is the applicant's responsibility to make arrangements for obtaining pre -
qualification or pre -indication of approval and for making an application for a mortgage. A
hater from the leader indicating the amount of the mortgage for which the applicant pre -
qualifies must be provided with each appileatbu- You need to use the same lender when you
go for pre -approval of a mortgage prior to your purchase of a home, so select your lender
carefully.
LENDER
Bell Mortgage.
1000 Shelard Parkway #500
Minneapolis, MN 55426
Bremer Bank
8800 Highway 7
St. Louis Park, MN 55426
First Residential Mortgage
511 Fast Travelers Trail
Burnsville, MN 55337
Irwin Mortgage
5100 Gamble Drive, #470
St. Louis Park. MN 55416
Mortgages Unlimited
1360180" Circle North, Suite 150
Maple Grove, MN 55369
Residential Mortgage Group. Inc.
6465 Waymis Blvd. #720
St. Louis Park MN 55426
Summit Mortgage Corporation
2850 Metro Drive, Suite 708
Bloomington. MN 55425
US Bank
4000 West Broadway
Robbinsdale, MN 55422
is
ONTACT PERSO
Rita Brooks
952)277-3068
Fax(952)S91-9060
Maxine Timm
952)932-6580
Fax(952)935-1101
Jason Stelter
952)736-5575
Gwen Berg
952)546-1520
Fax (952) 546-0359
Todd Holrners
763)416-2649
Fax(763)420-5885
Erin Kline
952) 593-1169 or (952) 417-8462
Fax(952)593-1634
Randy Cullen
952) 853-0222
Fax(952)953-0280
Barb Graham
763)536-5304
Fax (763)536-5342
LENDER
Voyager Mortgage
8 Pine Tree Drive, Suite 150
Arden Hills, MN 55112
Wells Fargo Mortgage
7373 North Kirkwood Court
Maple Gffi-,MN 55369
16
Perry Flasher'
651) 490.5150
Fax(651)490-5905
Brian Warhot
763) 4241400
Fax (763) 4243636
0
I/S.
MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH. MN 55447
DATE: February 10, 2004 for Housing and Redevelopment Authority Meeting of
February 19, 2004
TO: Plymouth Housing and Redevelopment thority
FROM: TrBey Jones, HRA Specialist through1 es, Housing Program Manager and
Anneitrt, Executive Director
SUBJECT: Kids Care Connection
BACKGROUND
In 2003, the City of Plymouth and the Plymouth Housing and Redevelopment Authority (HRA)
allocated 54,000.00 in Community Development Block Grant (CDBG) funds to Kids Care
Connection for daycare assistance. The CDBG regulations allow entitlement communities such
as the City of Plymouth to allocate fifteen percent of their annual CDBG allocation to "public
service" activities. During the 2003 program year, Plymouth allocated 549,000.00 of its annual
CDBG allocation to eight public service activities. Seven of these public service activities were
existing CDBG funded recipients and one, Kids Care Connection, was a new recipient.
CDBG regulations require new public service recipients to meet more stringent requirements then
existing public service recipients. Specifically, to be eligible for funding, new recipients "must be
either a new service or a quantifiable increase in the level of an existing service above that which
has been provided by or on behalf of the general local government". Since Kids Care Connection
was an existing daycare at the time their CDBG application was submitted, they need to increase
the number of low and moderate -income families served or provide an additional service to the
existing low and moderate -income families.
DISCUSSION'
At the time of application Kids Care Connection met the requirement of a new recipient, indicting
in their application that they would be able to serve an additional 4 families with the CDBG
assistance. However, based on recent discussions with Kids Care Connection, it is not feasible for
the daycare to add additional children at this time or in the foreseeable future because of adequate
staffing concerns.
Given these staffing concerns, Kids Cate Connection proposed to use the CDBG funk to provide
a new service to their existing families instead of adding additional families. Specifically, Kids
Care Connection proposed to partially subsidize the copays of their existing low and moderate -
income families back to previous levels (copays increased dramatically in July 2003 because of
cuts m State funding). However, after several conversations with the Department of Housing and
Urban Development (HUD), it was determined that this would. not be an eligible expense for
CDBG funds because it is not providing a "new service" to the existing families, just a different
way two pay for the service.
Since Kids Care Connection is not able to meet the requirements of a. new public service at this
time or in the foreseeable future, staff' proposes that the 54,000.000 allocated to Kids Care
Connection in 2003 CDBG funds be uncommitted and recommitted to the 2003 CDBG funded
Afrordable Housing Development activity. In addition, ahzce Kids Care Connection was
anticipating these funds and had included them as part of their 2003 operating budget, staff
proposes to provide a one-time allocation of $4,000.00 to Kids Care Connection from the HRH's
General Fund.
I recommend that the Plymouth Housing and tledevelopmeot Authority Board of
Commissioners approve the attached resolution, Resolution 2004-03, providing a
recommendation to the City Council that the $4,000.00 in 2003 CDBG funds committed to
Kids Care Connection be uncommitted and recommitted to the 2003 CDBG funded
Affordable Housing Development aed-wity. 1 also recommend that the Phmouth Housing
and Redevelopment Authority Board of Commissioners approve the attached resolution,
Resolution 200044, committing $4,000.00 to Kids Care Connection from the HRH's
General Fund.
ATTACHMENTS'
1. Resolution 2004-03
2. Resolution 2004-04
K+e®.p a.urerwe uouaaa erg a. e..me. a i.w me
HRA RESOLUTION 2004-03
n FUNDING FOR ]KIDS CARE CONNECTION
WHEREAS, the City of Plymouth committed 54,000.00 in 2003 Community Development Block
Grant (CDBG) funds to Kids Care Connection; and
WHEREAS, Kids Care Connection will not be able to meet the requirements for this funding, so
these funds need to be uncommitted and recommitted to another activity.
NOW, THEREFORE, BE IT RESOLVED BY THE. HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF PLYMOUTH, MINNESOTA, that it recommends
to the Plymouth City Council that the 54,000.00 in 2003 CDBG funds committed to Kids Care
mConnectionbeuncommittedandreconi.. ed to the 2003 CDBG funded Affordable Housing
Development activity.
Adopted by the Plymouth Housing and Redevelopment Authority on February 19, 2004.
F]
J
A
i
HRA RESOLUTION 2004-04
FUNDING FOR SIDS CARE CONNECTION
WHEREAS, the City of Plymouth committei 54,000.00 in 2003 Community Development Block
Grant (CDBG) funds to Kids Care Connection; and
WHEREAS, Kids Care Connection will not be able to meet the requirements for this funding, so
these funds need to be uncommitted; and
WHEREAS, Kids Care Connection was anticipating these funds and °Y'uded than as part of their
operating budget and
WHEREAS, the Plymouth Housing and Redevelopment Authority has uncommitted funds in the
HRA's General Fund; and
WHEREAS,.the Plymouth Housing and Redevelopment Authority has determined that funding Kids
Care Connection is an appropriate use of the HRA's General Funds.
c
NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT
AUTHORI'T'Y IN AND FOR THE CITY OF PLYMOUTH, MINNESOTA, that it approves a
one-time allocation of $4,000.00 from the HRH's General Fund to Kids Care Connection.
Adopted by the Plymouth Housing and Redevelopment Authority on February 19, 2004.
DATE: February 11., 2004 for Housing and Redevelopment Authority Meeting of February
19, 2004
TO: Plymouth Housing and Redevelopment Authority
FROM: Tr&y Jones, HRA Specialist through IidfAuB , Housing Program Manager and
Anne Vurlburt, Executive Director
PM
SUBJECT: Quest Affordable Housing Development
BACKGROUND
Two of the key housing issues identified in the City's Comprehensive Plan adds, xs the diversity
and affordability of housing. Since the plan was completed in 2000, the steady increase in land
costs has been the major barrier to meeting these needs. Given the identified housing needs, major
barrier to development and the mission of the HRA, staff is interested in acquiring property for the
construction of an affordable housing development. By the HRA developing an affordable
housing project, it would have much more control over the types of units developed and it would
be able to maintain the affordability of the units through restrictive covenants.
DISCUSSION
in December, Quest .Formed the HRA that they were interested in constructing an affordable
housing development on a.7 -acre parcel of vacant land they owned in Plymouth. Specifically,
this property is located south of Medicine Lake along South Shore Drive. It is currently guided
Living Area 3 (LA 3) which allows 6-12 units per acre and zoned Residential Multi -Family 2
RMF 2). There is a large wetland in the middle of the site. The buildable portion of the
property, which will accommodate 3-4 units, is located on the western edge of the property.
In January, staff met with representatives from Quest and the Builders Outreach Foundation to
discuss possible development options. At this meeting, Quest stated their interest in forming a
joint partnership with the HRA and the Builders Outre-ch Foundation for the development of
this property. Quest also stated at this meeting that they would be looking to the HRA and the
Builders Outreach Foundation to take the lead on the project.
While exact roles have not been finalized yet, Quest indicated that they would be looking to the
HRA for financial. as well as administrative support. Quest is requesting the HRA purchase the
I
r
property Som them for $125,000.00. The HRA would also be asked to complete various
applications for the project, including grant applications and an application to the Builders
Outreach Foundation. Quest indicted that they would be looking to the Builders Outreach
Foundation to serve as the builder for the project. The Builders Outreach Foundation would also
be asked to provide discounted labor and materials to make the homes as affordable as possible.
The fimdmg request could be taken from the Affordable Housing Reserve Account of the HRA's
General Fund At the end of December 2003, the Affordable Housing Reserve Account had
180,484.07 availablein uncommitted finds. The funds in this account are generated through
bond administration fees the HRA receives from various apartment complexes in Plymouth,
including ar annual payment from Fox Forest Apartments of 530,000.00 per year..
It should be noted that at the end of December 2003; the HRA General Fund also had
5443,762.00 available in uncommitted funds. However, if the City approves the HRH's request
to purchase the City owned property at the southwest comer of Schmidt Lake Road and
Northwest Boulevard for the construction of another affordable housing development, funds will
be taken Rom this account for that project.
NEXT STEPS
If the HRA is interested in pursuing the purchase of this property for the construction of an
affordable housing development, there are several steps that will need to be taken. Specifically,
Quest and the HRA will need to execute a purchase agreement for the property. The purchase
agreement would be conditional on the HRA successfully obtaining additional outside funding to
make the project financially feasible. Then, after a purchase agreement is executed, a proposal
will need to be submitted to the Builders Outreach Foundation for assistance with discounted
labor and materials.
I recommend that the Plymouth Housing and Redevelopment Authority Board of
Commissioners contribute 5125,000.00 from the Affordable Housing Reserve Account of
the MRA's General Fuad to the Quest affordable housing development.
ATTACHMENTS
1. Location Map
2. Resolution 2004-05
Mn.y a.ry..nuaa sa ou srus ruouwaao.m emuw.x w..ev.vx.iw.se
LA -3
Location Map
PID# 36-118-22-2240008
Potentfal HRA Development
repN
City of
W+E
Plymouth, Minnesota S
200 0 200 400 Feet
Land Use Guide Plan
C, Commercial
ME CC, City Center
M. CO, Commercial Office
IP, Planned Industrial
LA -1, Living Area 1
LA -2, Living Area 2
j LA -3. Living Area 3
LA -4, Living Area 4
LAR, Living Area- Rural
W P-1, Public/Semi-Public/institutional
W_
A" HRA RESOLUTION 200405
QUEST AFFORDABLE HOUSING DEVELOPMENT ALONG
SOUTH SHORE DRIVE, PID # 36-118-22-22-0008
WHEREAS, the Plymouth HRA. has identified a large and growing demand for
affordable housing units for larger families; and
WHEREAS, the Plymouth HRA is interested in acquiring the Quest property along.
South Shore Drive for the development of an affordable housing project; and
WHEREAS, the Plymouth HRA has uncommitted fiords in the Affordable Housing
Revenue Account of the HRA's General Account.
NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF PLYMOUTH,
MINNESOTA, that the Authority approves the commitment of funds to assist the Quest
affordable housing development in the amount of S 125,000.00.
Adopted by the Plymouth Housing and Redevelopment Authority on February 19, 2004.
1
PLYMOUTH HRA INFORMATION MMMO .
o
February 19, 2004
i. Mayor's Housing Challenge
I Article fiom The Brookings Institution entitled "Rethinking Local Affordable Homing
Strategies: Lessons from 70 Years of Policy and Practice".
3. Willow Creek Apartments
4. SEMAP Certification for FY 12103
j
December 16, 2003
JIM Sam
City of Plymouth HRA
3400 Plymouth Blvd
Pbmwutk Mier SS447--1452
Dear run:
Thank you so much for rapoa 1 to the Mayor's Challenge with your gilt of 3ipmoo
to unerfaith Outreach & Community Partners in support of our housing assistance
Fogta n Mayor Judy Johnson and her dedicated council members and staff are
wonderful friends to IOCP and the many families we serve
Our new fiscal year begao on April 1, 2003. We are facing a most. challenging
philanthropic environment as well as dramatic increases in demand for assistance. In our
last fiscal year we had a 20% increase in the number of households served, from 930 in
FY2002_to 1118 in FY2003. More people needed more help more often. By the middle
of eadi'mook our direct am= budget is usually spent and our can managers have to
delay or deny worthy requests for assistanoe.
This year our Hots ft week campaign goal is to raise 31,000,000!! 1 '!tis is not an
arbitrary number; it is the amount that Interfaith Outreach & Community Partners needs to
support its euustiog emerSen y services program and its efforts to promote long -tem
housing stability for fli m'4es All of the finds that the Mayor's Challenge. Bob Fisher and
Other community sleep -outs raise will be used toward these purposes.
On bebalf of Mayor Johnson, the City Council and employees of the city of Plymouth,
and IOCP, thank you for supporting our efforts to provide safe and affordable housing for
the families of our community. `
Sincerely, -
40M.210,
v.
I.aDoima Hoy, Fareautive Director
Interfaith outreach 6t Community Partners
KKP did not Provide sxW goods or oetmes
inaonsweradon of this girt.
110 Grand Avenue South, Wayma. Minnesota 55391-1872 9521473-2436 Fax 9521473-4337
January 7, 2004
Anne Hurlburt, Executive Director
Plymouth HILA
City of Plymouth
3400 Plymouth Blvd.
Plymouth, MN 55447
Dear Plymouth HRA:
Plymouth Works!
Thank you for rising to the Challenge! We recently closed the books on the Mayor's
Housing Challenge. Together, our community raised neatly $10,000 to go toward
housing programs serving people in Plymouth. About $6,800 of that amount will go to
interfaith Outreach & Community Partners (TOCP). The remaining $2,700 will go to
People Responding In Social Ministry (PRISM.). r'
Thank you so much for your generous contribution of 52,000.00 to this effort. The City
Council was very gratified by our community's enthusiastic support of the Mayor's
Housing Challenge. Not only did people donate money, many people, including some of
the Scouting groups in Plymouth, joined us for the slee"ut . Many others stopped by to
wish us well.
While the nights of November 21 and 22 were a bit cold (and we had our first substantial
snowfall of the season), the atmosphere was festive as our community came together for
a common cause. It is at times like this that we see the caring spirit of Plymouth come to
the forefront
Thanks for being part of the Mayor's Housing Challenge. Without you and others like
you, this would not have been possible.
At Your Service,
WA%M I 1
A. Adl
Mayor. City of Plymouth 749 NO
PLYMOUTH A Bcmuif d tfi m to Live
3000 PLYMOUTH BOULEVARD • PLYMOUTH, MINNESOTA 55447.1482 • TELEPHONE (783) 509-5000
0 www.d.Dbnwud rnn.us
CENTER ON URSAIN ANIS METRO OLIT1.i POLICY
THE BNIDROO KINGS INS- gTUTLIO T
AIND THA- URBAN INSTITUTE
Rethinking Local
Affordable Housing
Strategies:
Lessons from 70 Years of
Policy and Practice
E\ECUTIVE SUMMARY
EJfons to provide of ardabie luousing are oceurring.a: a time of Areae chanee:.Thc'.rer tti+tsibil=-
WeS fur implementing afj'rirdable housing are inereasinglp'sluifiing to -state knil'locul
The market and demographic changes in the country -are complica:ireg the picture, as sprawlmingjobs-huusing paner+ti and do nrov+u revisals in'samc places are crcating'dcnumd for- '.'
aj}urdable housing for workintg fri'milies and immigrants in.both cities and suburbs. To kelp-
state elpstareandlocalleadersdesign,4esh solutions to tadm•s of ordable housing challenges, The
Brookings Institution Center on Urban and.Aletropolitan Pblicpand the Urban Institute %t
joined farce; to e=mine the lessons of seven decades of major policy apprc-+ches and colza
these lessons mean for local reforms. 'Ibis executive summory of the full repor-, funned by the
John S. and James L. Knight Foundation, fends the: past and current efforts to expandrental.'
housing assistance, promote homeownership avid increase ufforduble housing thrut gh land
use regulations have been uneven in their effectiveness in promoting sable families and
heulthy communities. Thefindings suggest guiding principles for local uction, with important `ICautionstoavoidpitfalls.
cross the nation, slate and local guvernmrnt leaders and their partners—in the corpo-
rate. Citic, era! estate, and nonprofit communRies—arc strut ling to identify effective
stus•s to protide affordable housing and homeownership opportunities for Families and
ndividuals at the bottom of [!sr economic ladder. The federal government's rule in
housing policy is shrinking, shiftingmore responsihility unto the shoulders of state and local
actors. And despite the economic: boom and significant innovations in community development
that occurred during the 1990s. the affordable housing crisis intensified in must parts of the
country. The Eliallenges Facing state and local policymakers are further comp;icated by the sub.
urbanization of jobs, changes in household composition and housing needs, and the growing
diserskty of our nation's pupulation..• nd althuugh every cuntmunhy faces serious housing
affordability problems, variations across the country in the existing housing stock, populntiun
growth and demugraphic trends, and economic vitality create stark differences in housing con•
ditimts and trends, tolling for unique, locally crafted responses.
MCe M. ay • T,et B-0—Cs 1-011%recon • Ten Ununn InSulyR • Rtsenety, a,enr
P
Purpose and Approach
cawing on lessons from seven decades of housing policy and practice, this report aims
to help state and local leaders take on the realities of today's affordable housing chal.
lenge. It examines three broad approaches to affordable housing—rental assistance,
homeownership assistance, and regulatory policies --and assesses the effectiveness of
each ip addressing seven goals for affordable housing:
1. Preserve and expand the supply of good -quality housing units.
2. Make existing housing more &fordable and more readily available.
3. Promote racial and economic diversity in residential neighborhoods.
4. Help households build wealth.
S. Strengthen families.
6. Link housing with essential supportive services.
7. Promote balanced metropolitan growth.
Often, the success of affordable housing programs is determined by the extent to which it
achieves a narrow set of objectives, such as the number of new units created or the number of
households with affordable housing cost burdens. Although important, these narrow criteria do
not reflect the array of demands currently being placed on offordable housing programs. Today,
affordable housing policies must help promote healthy families and communities. These seven
goals thus provide a more comprehensive framework by which state and local leaders should
evaluate the effectiveness of past and future affordable housing programs. Although not all
housing programs can meet all seven housing objectives simultaneously, this list enables state
and local leaden to better align the community outcomes they want to achieve with the housing
Policy approaches they adopt.
Summary of Findings and Implications for Local Housing Strategies
AWeral
thougb there are serious gaps to the housing research literature, evidence on the expe-
iente of the past has a lot to offer today s polirytmkees and practitioner. The
ccompanying matrix provides an overview of our kq Findings on the effectiveness of
housing programs in meeting the seven policy goals.
The following synthesizes the most relevant implications of these findings for local leader.
1. Rental assistance programs require deep subsidies if they aro to reach clue needi-
est households; moreover, to be suucccufal, rental assistance programs should avoid
clustering affordable housing in low insceme neighborhoods and include efforts to
raise the incomes of low-income households.
Rental assistance programs—including both subsidised housing production and demand-side
assistance (such as vouchers)—clrrrly pi:v a central role in any housing strategy However, the
effectiveness of rental housing programs is not guaranteed; if poorly targeted or ineffectively
implinnented, they can actually work against the pals of an effective housing policy. Decisions
at the federal level largely determine the resources available for rental housing assistance and
set the broad parameter within which state and Local actors operate. Some state and local gov
emments allocate their own funds to rental housing assistance, but federal programs constitute
by far the lions share of resources available and in communities all across the country, these
resources fall shoe of meeting needs.
Affordability is the central challenge for rental -assistance policy. This means that building
more rental. units is not necessarily the solution to the housing problems facing low-income
renters. S„bsktlsing the rents for existing units is much less costly than building new units, and
can help stabilize a faltering housing market, enable low-income households to compete in o
tight market, provide struggling landlords with sufficient rent revenues to maintain their prop -
0 OWLmou rw3 •'nis Baoouwa iasn mut • Tug Ukum Inarrms • Ruusen Buar
Potential Effects of Housing Programs on PoliF.p Goals '
Boost llmsingAWmanee. Homeownership Asslamnre
Supply-Side Demand-Side Supply-Side Deraaod-Side Supply-Side Lend Use NOW
Production Nouclren Martiper Ibredtt Homeb Ycrs Tax Production Ilepllolipns '
Policies mul Assiv wit e
e
sWesene end Expand Yin-rmld stock hu Somwbet-may bisybv-hot bnpoet b blg4e-4w biped b Nes-pdmry pal of Mind-cocoa Pro.
m
the Supply d Goad• been opasded, Ibougll eoeoursge hudlsds Imdireet bdlrm Ihne prormms i/ penntn Voted supply
Quality Ilomlhl$ mora uvits aced b he to maheeb existing espandhl$ onrner• shnr others limp new
Units produced band"$ oaennpbvl seek a faedsMe eonsnnabn
RAbLe Ilamdng blare in-6m aRardali ity Nn-- dmwy pati Is Yks•-be ingnct s be— bulla$ Ycs idmary $nal of hiyke-lent control
p Aamdrbk and Hire depends an sits and eRardabdur. mecca . balked pmw , 6m d par& an than propaas is gold• aoikrole mnl
aeoddlyAndmiste duration of adn" depends on house, pries Of hwdng uxk aiPmdebdity old aeeea b=rew in tt$M8¢ how sw1ky b fid vand"s
hr salla
7 PmmoicRacial and Rmah-depndson P"'M-aneipbpts Pbamly-•depends all I'mably-irreck*ms Fbsafbly-depends on Mbpd-salaerefmlps .,
Evosomic Diversity where new units are can And mail b loeatiaal rtedlbnns el con And units In e, d anustwh,,&
kv
Val expand eRodable
in Residential Neagh- located, sod W6 is ell- taherle401 1/oad5 bolos diwne nl$In6onhaods..
al
nc,.at,lon
f od No local bonds$ In Wnwo
bwhomds 161= a occupy rbers sway Roon"agbm
1
c Ilelp Ilameholds P,enranjr oat-•IhouO Germany rum-lhou e We-bus depends m Yeo-ba depelds m ceratin depends on Mtied-•soane pro.
salla YYkahL loser lents may led a bane reins may led so Inuw price appmle- house prke apI b- houib price eppwb• pain pro"
Increased feWly arms hwasrcd really mods slut mad ladbWmal .. lila and indbidml, lion end bdisidml wehb•buildln$ oppos
harrower Circum• binpawn eh=um- hurro mer chum• Isehim while ohm '
andira swam stoner do Iles
Slrennphen raminn P nal*-bin Mule W RsuWr-dao Int Yrs-but lest 6n I N Yes-bar lea ImpliesIr Nn--bus las 6gwct if No
y nature otos to hop" units w; are.' un we laterad in laws we located in main me located he
9 conlirn parent' mbar- loealad is distrnrd disuessd ni$Idaw-
r
dhlmsed aneigl16s- dMmwd nei$hbw-
by m atrenplwn new bmhods of Indo hoods pada
roman occmpmg roles db.•
ammar romp?
C' mniR=ation
eLIA Housing with somd1nme- fun Generally no No. prube6ly nor-i nhea '. f?ra,. ly Ino-unins Ijo ,
Essential Sapparthe unbs me designed in sakes we egddcitly. ernkes an arpOrkly
Services conjunction v*b eller• lb kd wish arskareq • Ilnkfd with aatlwanwe
Ike sunwaiae mnicar
passage Balanced nerelwdepromi an ptxmwl -depends as' FJlwkm-depends on L%di&4_heugh peq Rsnly- the location ar Miim mining and
Mesrslpailan Groweh wbera rhe aero Onus redo emidMly to poem! population a ask M. mlplems can units thus far has pe• regukbwy nrorml can
me bulb And anus in nab *p Worland choke Red units In su6ur6an- crelly nal presented is alladablo'
new and close ss job ams and come s job halanced punch; how' development In an •
appatpnhla . opportunitles ever, ne401 hods Jurisdiction. dlou4h .
INNIN bnwbed4m= some do no
Is
erties, and prevent rental units from deteriorating and dropping out of the housing stock In
some circumstances, subsidizing the production of new rental housing units makes sense; But
without deep, longterm subsidies, new rental units will not necessarily be affordable for the
households whose needs are most severe.
Location also plays a critical role in the effectiveness of rental -assistance programs. A grow-
ing body of research now indicates that living in a high -poverty neighborhood can undermine
the well-being of families and children, and that affordable sousing alone cannot revitalize a
distressed neighborhood. Both supply-side and demand-side programs can potentially play a
role in a local rental -assistance strategy that takes location seriously. Using production pro-
grams to expand the availability of affordable rental housing in'healthy neighborhoods (where it
is scarcest) promotes economic and racial diversity and broadens opportunities for low-income
households to live in neighborhoods that offer safety, good schools, quality services. and access
to employment opportunities. At the same time. vouchers and other demand-side programs can
be used to supplement what poor households can afford to pay for morket-rate housing in
neighborhoods of their choice.
2. Homeouvsership among underserved populations brut increased, mostly through
improved access to mortgage credit; efforts to further ezgmosd komeasonership
should proceed cautiously.
The promotion of homeownership has been a major focus of American housing policy, and
although these programs have the potential to yield considerable benefit, they also have serious
shortcomings. Homeownership should be promoted with caution among underserved houw
holds despite the numerous potential benefits it offers them, because not every homeowner will
see all the benefits of homeownership and some may even suffer as a result of malting poor
housing decisions.
Federal programs that expand the availability of mortgage credit and help families overcome
barriers to home buying have done much more to advance homeownership among low- and
moderate -income households than programs that expand the supply of affordable housing. In
this regard, the literature suggests that the most successful initiatives promoting homeowner-
ship. have been federal—rather than local—and mostly in the form of the pressure government
has placed on lenders and secondary market institutions to meet the financing needs of histori-
cally underserved groups.
just as in the context o° rental housing programs, location plays a critical role in the effec-
tiveness of homeownership programs. A homes location will determine whether or not a family
sees its value appreciate, and whether children realize social benefits. And although homeown-
ership promotion may play a role in a larger strategy for revitalizing distressed neighborhoods, it
cannot be the only tool used. The promotion of homeownership in poor and distressed neigh-
borhouds may not have the hoped-for revitalization and stabilization effects and may even prove
costly to the families who purchase there.
Not all households will necessarily benefit from homeownership. Potential first-time home
buyer need to be informed about the risks as well as the benefits associated with homeowner-
ship to that they can make better -informed housing choices. Clearly, there are those for whom
homeownership is not a viable option, and for them, other housing choices should be available
in the community along with assistance in building their income and wealth to prepare for
homeownership. And for those who are ready to buy a home, assistance should go beyond the
home purchase itself, to ensure that new homeowners are able to keep up with their mortgages
and remain in their homes.
3. Land use and other regulatory policies can hum profound effects on the location
and supply of affordable housing.
Regulatory policies arc often neglected as potential tools for affordable housing policy, because
they do not directly subsidize either housing units or households. But state and local regula-
tions have a powerful role in shaping the housing market. Traditional, exclusionary land use and
zoning policies—such as banning multifamily housing and zoning fur large lots—and growth
0 Dammun ars; • Tae Beeomses trarrrvrian • Tae UeeaN harrrere • Rueasca Baur
it .
controls, which impose strict limits on housing supply without accommodating projected
growth, con be big deterrents so building affordable housing, frequently excluding lower income
and minariry households.. On the Ripside, inclusionary —I% programs and well-designed
growth management policies, when enforced, can successfully expand the supply of affordable
housing while beeping administrative costs Irma
Regulatory tools can be of particular importance to localities because, unlike the other pro-
grammatic tools discussed in this report, the federal government plays only a limited role in the
regulation of local housing markets. Thus, local Policymakers enjoy a relative freedom from led.
erg resource constraints and federal POP= rules and definitions (although they may have to
abide by state laws or guidelines). The biggest constraint on the effective use of regulatory tools
may actually be the fragmentation of authority among individual cities and counties. This Free.
mentation makes it difficult to craft regionwide strategies for expanding the availability of
affordable housing, promoting mcial and economic diversity, or promoting balanced growth.
Historically, local land use and development regulations have undermined the goals of afford.
able housing polityt whether intentionally or not. Gettingrid of these exclusionary regulation
works. Even in the absence of a comprehensive regional approach, eliminating (or moderating)
regulatory barriers to affordable housing development can be effective. This does not mean that
all regulations of land use and residential construction should be eliminated. Many regulations
that raiz. %e cost of housing development have legitimate gwls, such as protecting health and
safety or preserving farmland. Local governments need not abandon these goals, but they can
and should reassess their regulatory policies to ensure that they allow for the development of
more affordable rental and homeowner housing.
Although simply eliminating exclusionary regulations on a jurisdiction -by -jurisdiction basis
can be effective, the most optimal er-rorts ate thus* that arc regional in nature. Well-designed
mrLnsl<growth management or land use struegies are those that use a mix of regulatory tools
Increase the supp:y of affordable, multifamily housing and make way for higher densities,
while also advancing other important metropolitan -wide goals, such as open space protection.
transportation c6 -Ace and central -city revitalization. _
Principles for Local Action
tate anal local policymakers, as well as housing advocates, community4med organiza.
tions, and funders, can draw upon the evidence sumnnarcad in the matrix as they plan,
implement, and evaluate their ower solutions to the affordable housing challenges in
their communities. But the lessons of the past also offer a set of principles to guide
local housing policy in the decades that lie ahead. Some of these principles may seem obvious,
butno etbelm are frequently ignored Others run counter to conventional wisdom, but follow-
ing them could avoid some of the more dismal failures for which conventional thinking is
responsible.
Hostsing strategies shonW he sailored to vocal market ccnditiorts.
Housing needs and policy priorities differ from place to piece, due to difFerer !es to housing
market conditions, history, and political realities. Although this report focuses on a compmhen-
sive set of affordable housing goals and .he tools that can be used to achieve them, it does not
make sense to implement the same strataar everywhere. In hot markets, where population is
growing rapidly and housing is in short supply, producing new affordable units may k- v top pri-
orit} But in markets where the overall demand for housing is weak and vacancy rates are high,
new units way norbe needed;. instead, poor households may need assistance in paying for tate
housing that is already available. And just as cities and metropolitan areas differ neighbothoods
within a jurisdiction often have very different housing circumstances and needs.'i'6cs. the best
ustrategies are those that match local corlitions (and polircal malities) and respond to commu
nity input and expectations.
ttacsraas sass - .at sumores lermmirmon • Tu Uum Insnnna • RuLmrn Amar N
M.
Inclusionary
zoning programs
and well-
designed grounh
management•
polities, when
enforced, can
expand tate
supply of c ford-
able housing
while keeping
administrative
tests IOWA"
I-
2. Homing markets are regional, so housing policies should be.
While housing strategies must be tailored to local conditions, they should also be crafted with
today's metropolitan realities in mind. The decentralization of both jobs and residents has been
taking place over the past half centur% but accelerated in the 1990x, solidifying toe dominance
of suburbs and reinforcing the link between city and suburban health in shaping growth and
development patterns in a metropolitan area. Concerns over the fiscal, environmental, and
socioeconomic consequences of sprawl and uneven growth patterns have sparked growing inter-
est in metropolitan solutions. But for the most.part, housing policy discussions remain
striingly local. In an era of population and employment decentralization, the morn oolitan
area—not the individual political jurisdiction—represents the appropriate level at wuich to
think about and act on access to affordable housing. Enabling low-income families to live closer
to employment centers (and stronger schools) in the regional economy not ndy will benefit
those families and their children, but will also help reduce commute times, meet employer
needs for workers, and ameliorate other negative consequences associated with current metro-
politen growth patterns.
3. Incense policy. IS housing poligt
Most affordable housing strategies at the national and local levels are designed to expand the
supply of affordable housing, with programs aimed to stimulate the construction, rehab-1tation,
and renovation of housing that is affordable to low- and moderate -income families. Production is
a necessary component of a responsible affordable housing policy. but the Luk of income
remains the principal barrier to obtaining affordable housing. The U.S. Department of Housing
and Urban Development's (HUD's) annual analysis of worst case housing needs generally finds
that g0 percent of the problem is not horsing inadequacy or overcrowding, but affordability.
Mus, policies that help people increase heir incomes will help address housing hardship as well
State and local leaders are increasingly realizing that they can raise the incomes of working v
Families by enhancing access to such Federal investments as the carried income tax credit
EI'CC), nutrition assistance, health care, and child tate. Some state and local groups have
maldmized the potential of the ERC by conducting outreach prod a-%16 providing support for free
rax preparation services, and helping families use the credit or. a &..away to financial services and
savings. It is estimated that working families apply one third of :heir credits to housing needs.
Other initiatives that help low-income families find and 6--p jobs, build d dlb. and advance eco-
nomically should also be incorporated into strategies Por making housing more affordable.
4. Regulation can be a pornerful housing policy tool.
Often overlooked, state and local regulatory policies offer cost-effective opportunities to make
private housing more available and affordable. Regulations such as sorting policies, land use
restrictions, development fees, subdivision and design requirements, building codes, rent con-
trols, and other regulations help determine whether and where different types of housing can
be developed, how much it costs, and how it is mainta:ned.
lune traditional approx land use and development regulation has resulted in policies that
esplicidy or implicith prevent the development of affordable housing in o jurisdiction,
through restrictive p• a outright bons on multifamily housing or through requirements
for large lot rises, h.. back from the street. and wide sidewalks. While some of these reg-
ulations are ,aluabl :ting other goals, others can be detrimental and, when eliminated,.
have proven to of .o more affordable rental and owner -occupied housing. Moreover,
regulatory strategies t,..e inclusionary zoning and thoughtfFul growth management policies can
create powerful incentives for private developers to produce more affordable housing where it is
needed most.
S. Race inatten.
HistaricaE%, federal affordable housing policies—including Fe•leral Housing Administration
h-imeownership programs and public housing—have contributed to the residential segregation
of our communities. More recently, these progmrns have made some prrgmss in reversing the
Oor.-ruu err • Tnt ::1100ra Inanvnun • T1,s URLV, INg n m • ItUmmm asnr
W
isolation of poor and minority residents from neighborhoods of opportunity. but the long-estab.
lished patterns of segregation persist. Most commumities in the United States remain
profoundly rociakv segregated. I%e 2000 census confirms that nationwide, the residential seg-
regation of blacks from whites retains extreme (declining only slightly wer the past two
decades): segregation levels for Hispanics and Asians, though loser, arc an the rim in many
taetropolitan ares.
Local policymakers may hope to design and implement `colorblind' horning policies, but if
the realities of segregation and ethnic inequalities an ignored, these policies are unlikely to
work as intended. For etampie, a homeownership assistance program may not lead to wealth
accumuLkdon for minority households if segregation and discrimination limit their housing
options to minority neighborhoods where values are not appreciating. Vouchen fail to give low.
income families real choices about where to live if they are eacluded from neighborhoods
beyond the central city. And the successful revitalization of an inner-city neighborhood may lead
to displacement of minority households if no efforts are trade to resolve conflicts between
groups and to actively promote diversity.
6. /trpferweawtion »tatters.
Even the best housing strategy will fail to accomplish its gods if it is not effectively ample.
mented. Ile history of housing policy in the United States is replete with examples of
won4ntandoned programs that produced harmful outcomes because of poor administration.
Before launching new programs, poligYoaken should critically assess the implementing organi-
zations' operational capacity and ability m build effective partnerships: Do they have sufficient
staff and resources? Do they have the skills and experience needed to fulfill their new responsi-
bilities effectively? Is the program designed to provide incentives for effective administrative
performance? Sometimes, strengthening organizational capacity can be the most effective
intervention to improve pokey outcomes. Also, partnerships between organizations with comply
memory strengths can result in effective program implementation although suc:essful.
sustained partnerships also require time and resources.
Implementation agencies must also be held accountable for performance. Clearly defined
performance measures and systematic performance monitoring can strengthen implementation.
Also, Toed policymakers can hold agencies accountable by requiring that performance data be
collected and published on a regular basis, which creates strong incentives for effective per-
formance. Communities can also enter into performance -hosed contexts with public agencies,
private companies. and/or noapeof t oeganiizations, through which payments, bonuses, and or
contract duration arc all explicitly tied to the achievement of measurable performance targets.
Conclusion
Aher decades of ledend housing initiatives that were designed by Washington and
administered by HUD or its predecessors, a palpable shift toward mate and local can-
erol has dominated U.S. thinking about affordable housing poPcIL For mora than a
tide, federal policymakers have essentially devolved responsibility for the design and
impkmenratian of aliordahle housing initiatives to the state and load level. Across the nation.
state and local government leaden are struggling to use the limited resources available to them
in communities that differ significantly in their market conditions, residential patterns, regula-
tory regimes, and local goals.
Despite the changes occurring ir, housing policy and programs, and the new challenges posed
by today's economic and demographic trends, the experience of post housing programs has a lot
to teach us. As the devolution of housing policies continues to unfold, there is gnat potential
for state and local leaden to build upon the experience of the post while bringing fresh thinking
m a new generation of approaches that respond m the diverse needs of our communities and
Jfurther informs the evolving federal roe in housing.
arcereu req -Tug Oeuooees UontvrM - Tar Yew" ttaumnr - Rot wca snap a
Acknowledgements
Both the Brookings Institution Center on Urban and Metropolitan Policy and the Urban.
1
Institute aro deeply grateful to the John S.. and James L. Knight Foundation for its support. ,
of this research project. In partieulm the authors wish to thank Liz Sldaroff and john
Baia at Knight for theirthoughtfuh review and guidance throughout this effort.
The authors also want to pay special thanks to the core research team who made this
muted -year project possible: Karen Destorel Brown at Brookings and Mary Cunningham,
Nosh Sawyer, and Margaret Brown at the Urban Institute. Their :op notch research and
constant attention to all parts of this project have ensured. this project's quality and com-
prehensiveness.
FindN Brookings would also like to thank the Fannie Mae Foundation for its founding
support of the when center and its wort
For More Information:
Bruce Katz
202)797-6285
bkat brooltings.edu .
MargeryAustin7usuet
202) 261-5543.
motumerfui.urban.org
THE BROOKINGS INSTITU'lTON
1775 Massachusetu Avenue, NW - Washington D.C. 20036.2188
Tel.• 202.797.6000 - Fos: 202.797.6004
www.bmoidnp.edu
Ac- g ON URI AN AND Mrmopaurm Poucy
DIRacr aos-;97•6r31 - FAxluiRacr:acs-;97-.,65
www brookings.edulurban
THE URBAN INstrrvm
woo M Staaer, NW WASHINGTON. DC 20037 - Tau (tea) 833-7200
www.urban.org/
I
Crff o> p nKovri
3400 PLYMOUTH- BOULEVARD. P,LYMOUTH,"AN;SWi
DATE: January 21, 2004
TO: Anne Hurlburt, Executive Director
FROM: Denise Hutt, Support Services Manager
SUBJECT: WILLOW CREEK APARTMENTS
Bigos-Willow Creek, LLC,. owner of Willow Creek North and South Apartments has
informed the City of Plymouth that it intends to terminate the Section 8 contract with the
Department of Housing and Urban Development (HUD) that currently provides project -
based assistance. Project -based assistance provides a rent subsidy, based on the tenant's
income as long as the tenant remains in the apartment complex. The Willow Creek
project -based assistance consists of two contracts - one for 24 one -bedroom and two-
bedroom apartments in the Willow Creek South building and 24 two-bedroom apartments
in the Willow Creek North building. The Willow Creek South contract will expire June
27, 2004 and the Willow Creek North contract will expire December 31, 2004.
City staff has contacted our HUD representative regarding Bigos-Willow Creek, LLC's
intent not to renew the contracts for these buildings. HUD staff will be preparing an
application to HUD Washington for "enhanced vouchers" for Housing Conversion
Actions. HUD will offer voucher funding on a one -for -ono replacement basis to make up
for the lens of the affordable housing units in. the community. HUD will be supplying a
list of the 48 affected residents to Plymouth HRA by the end of January. HRA staff will
then send each resident a letter outlining the procedure for tecertifying them.
Approximately 60 days prior to the effective date of the contract expiration, an enhanced
voucher is issued to the family. Plymouth HRA staff is responsible for ensuring that the
family is income eligible, verifications are current, the proposed new unit is eligible, and
the unit has been inspected by the HRA and passes Howing Quality Standards (HQS)
inspection. Families issued vouchers may elect to use the assistance in the same project
and in all cages may choose to move from the property immediately. Families may also
move outside the jurisdiction of Plymouth under the portability provisions of the voucher
program.
Should any vouchers remain unused after issuance to the eligible residents of the
property, the HRA will retain the vouchers and may use them to assist families on the
current waiting list. Currently, Plymouth HRA is serving 394 families (177 Plymouth i
vouchers and 214 portability vouchers) with the Section 8 Housing Choice Voucher '
Program and with this termination of project -based assistance at Willow Creek, 48
vouchers will be added to our existing pro8nim.
Plymouth HRA will receive a one-time $250 special The for each occupied unit covered
by the conversion action at the time the funding increment is added to the housing
authority's Annual Contribution's Contract (ACC) exhibit. This fee is to cover the staff
time that it will take to recertify the affected residents.
N you should have any questions or cotrcems regarding this process, please contact me at
763) 509-5408 or Paula Dom, Housing Technician at (763) 509-5414.
Interoffice Memo
DaW 11=2=4
T&- A" Hurlbut. Executive Diridw
Cc: Dan= HA Support Services Manager
Fraen Paula Dom
M SELWCertification far "1=l
On June 24.3003 HUD published in On Federal Register a final rule Meregulation for Small
Public Housing Agencies: that simplifies and streamlines HUD's regulatory requirements for
small PHAs 00 adff**W the public housing and voucher assistance program Under this
final rule is a reduction in the frequency of performance assessments from annually to having
assessments conducted every other year for snag PHAs (PHAs with less than 250 vouchers).
under the Section 8 Lftugement Assessment Program (SEMAP).
Specific to SEMAP. we could elect to be assessed annually, but we need crty submit
certification biertnially. 9 we did send in a SEMAP Certification to the HUD field office in a
year do we were not scheduled for an assessment under SEMAP. the PHA will be scored
based an the W that it was submitted anyways. PHAs do not ton to formally announce
their Intent to submit owillicalicins more often than biennially.
PHAs with fiscal years ending in the firsi: four quarters following the effective date of the final
rule (July 24,2003) will not be evaluated wxW SEMAP for 10 fiscal year. PHAs with fiscal
years ending September 30. 2003. will be the first group of PHAs exempt from SEMAP.
followed by PHAs with this fiscal year ending December 31. 20M. and so on. We would not
need to subrnk.a SEMAP certification for fecal year ending December 31.2003.
Although the final rule was published in July of 2003. housing authorities were not notified of
this PIH Notice 2003-21 until October of 2003. This notice was delivered to our office while I
was an maternity leave and was OW away. It was M brought to my attention until just
race* to we we not required to process the SEMAP Certification for FY 2003.
After telft with our HUD Representative we will continue to hold our rating of High
Performing Housing Authority for the 2003 year that wedonot have lofile acertification. We
v be required to process a SEMAP Certification for FY 2004. This will be done the first part
of 2005. Whatever rating we receive for the 2004 year will carry us into 2005 as well.
MMAN
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1JZS@004 lrrlarattice Mama SEMM Cs Hfir fn for FY 12103 2
However. Uwe are rot saWed. with Me rating d0 we receive m 2004 we can always submit
a cardliication In 2005 to better our score I need be.
Bosicft we aubrrdt SEMAP Cerltiicat m an the even years ordy. We would only submit a
cerltiicaticn.an odd years to better a score from a previous review.
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