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