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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 11-04-1985MINUTES OF REGULAR MEETING HOUSING AND REDEVELOPMENT AUTHORITY OF PLYMOUTH, MINNESOTA NOVEMBER 4, 1985 The regular meetSng of the Housing and Redevelopment Authority of Plymouth, Minnesota was called to order by Chairman Del Erickson on the 4th day of November, 1985 at 6:35 p.m. at the City Council Chambers in the City of Plymouth, Minnesota. The following members of the Authority were present: Chairman Erickson, Commissioners Gerry Hells, Pat Neils, and Rod Hillstrom. Also present were: Assistant City Manager Frank Boyles, Planning Director Blair Tremere, and Housing Specialist Milt Dale. ABSENT Harold Bakke. MINUTES It was moved by Commissioner Hillstrom, seconded by Commissioner Gerry Neils to approve the minutes of the October 17, 1985 meeting as submitted. Motion carried. SENIOR CITIZEN HOUSING SITE DEVELOPMENT REVIEW Mark Hendrickson, Senior Planner with Hennepin County's Department of Planning and Community Development, and Plymouth's representative for CDBG Programs was introduced to assist Cie commissioners in a more thorough understanding of CDBG regulations as they relate to the senior citizen housing site development proposals. Much of the discussion centered on the need to comply with the Section 8 income limit guidelines and Section 8 rent standards of 30 percent of household income. In regards to this question, Mr. Hendrickson indicated that since all HUD Proqrams use Section 8 income limits to distuinguish low and moderate income persons from the rest of the population, it is appropriate to use those limits. Commissioner Gerry Neils stated that, if the project were totally financed through HUD, then Plymouth should comply with all HUD regulations; but in the case of the Plymouth senior citizen site, nearly 95 percent of the project will have to be financed through the private market. He also wanted to know who could do the financing since the federal government has no program to assist Plymouth in this matter. Mr. Hendrickson stated that the City could use general obligation bonds, mortgage revenue bonds ano -other mechanisms to make this project work. He did indicate it was a very diffic•ilt proposition to get financing for projects of this nature at this time. The only funding programs he was aware of were through local government or state government. He stated that Eden Prairie is using a tax increment district to facilitate cash flow for the developer and then reduce the rents down to an affordable level. Commissioner Pat Neils was concerned that a lot of elderly in Plymouth would not be eligible if they sold the home they presently own and assets were added to their social security and/or pension income. She also wondered what percentage of the units had to be affordable to very low income people. Mr. Hendrickson indicated there was no required percentage. HRA Minutes for November 49 1985 Page two Commissioner Del Ericksor wanted to know if 40 percent of income would be allowable for target rents. Mr. Hendrickson stated that while 30 percent of income is the guideline the market will somewhat determine how the units would rent. He said that. 30 percent is the target to use but there is some flexibility. Commissioner Pat Neils also wanted to know if a preference could be given to Plymouth residents. Mr. Hendrickson stated this would not be allowed as that would be a discriminatory action. Commissioner Gerry Neils stated that elderly people of modest Income are often paying, 50 percent of household income for rent; why can't a senior citizen housing project be developed which would allow people to pay that high a percentage? Mr. Hendrickson Indicated that a question could be raised as to whether a project of that nature would be considered "affordable". Chairman Erickson wanted to know if a project could be built with added features such as food, transporation, and other services requiring even up to 70 percent of one's household income for these features as well as for rent. Mr. Hendrickson stated that they would then have to determine what percentage was actually used for rent to determine if the housing was affordable. PUBLIC HEARING FOR CDBG PROGRAM REVISIONS Chairman Erickson called the public hearing to order. There were no people present to address this item. He closed the public hearing. Motion was made by Commissioner Gerry Neils, seconded by Commissioner Hillstrom to adopt HRA Resolution No. 85-12 RECOMMENDING AMENDMENT OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTIVITIES FOR YEAR X RELATIVE TO ACQUISITION AND RE -DEVELOPMENT OF SCATTERED SITE HOUSING. Motion carried on a roll call vote, four ayes. SECTION 8 PROGRAM UPDATE Informational memo by staff accepted by Commissioners with no further discussion. SCATTERED SITE HOME OWNERSHIP PROGRAM UPDATE Informational memo by staff accepted by Commissioners with no further discussion. The meeting adjourned at 7:30 p.m. Secretary