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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-30-1987MINUTES OF REGULAR MEETING HOUSING AND REDEVELOPMENT AUTHORITY OF PLYMOUTH, MINNESOTA JULY 30, 1987 A Regular meeting of the Housing and Redevelopment Authority of Plymouth, was called to order by Chairman Mils on the 30th day of July, 1987 at 6:30 p.m. at the City Council Chambers in the City of Plymouth, Minnesota. The following member `he Authority were present: Chairman Neils, COMMC331vner3 Hiltstroh. Amw, Crain, and Ludovissie. Also present were Planning Director Treme,rc, dousing Specialist Dale, City Clerk Brandt and Mark Hendrickson,. Senior Planner for Hennepin County. MIS MOTION was made by Commissioner Gutzman, seconded by Commissioner Ludovissie, to approve the minutes of the June 11, 1987 Regular meeting as submitted. Motion carried, three. ayes. SENIOR CITIZEN HOUSING MARKET STUDY Housing Specialist Dale stated that Judy Marshik, Quality Decisions, Inc., would have the results of the focus group meetings held earlier in the month as part of Stage III, available by August 13 and recommended that the Authority meet then to receive the report. SENIOR CITIZEN HOUSING DOWNTOWN PLYMOUTH SITE Housing Specialist Dale reported that a recent letter from HUD reinforced that they expect the HRA to follow their regulations with regard to the senior housing project. He reviewed the letter which responded to questions raised by the HRA. He has had several developers express unsolicited interest in the site and development in the past weeks. Commissioner Hillstrom joined the meeting at 6:47 p.m. Chairman Neils suggested listing HUD and County criteria for the City Council and asking the Council for their recommendation. He believed that the HRA should consider if now is the time to remove the HUD -imposed constraints on the site by selling it to a City selected developer. The City could then pay back HUD from the proceeds of the sale. Chairman Neils wanted to know what the City paid for the site. Housing specialist Dale stated the City paid $367,298 for the site in July of 1982 and has until September, 1988 to initiate development. The money was accumulated by "saving" allocations from annual Community Development Block Grant programs. HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING ZULY 309 1987 Page Two Commissioner Ludovissie suggested the City request from HUD and the County another extension sn the deadline In hopes that commercial development would materialize in the near future thereby Improving the opportunity for the site's development for senior citizen housing. Commissioner Gutzman stated one option might oe to buy out HUD/County and then sell to a developer. Commissioner Crain arrived at 7:00 p.m. Director Tremere stated several developers have recently surfaced and have shown a strong interest in subsidized senior housing. He noted that neither the County nor HUD probably would want the land, and thus the land would be sold if the City cannot get it developed under CDBG constraints. From staff's perspective, the Council should be given the HRA's recommendations so a decision can be made. He added that HUD is presuming that, if the City decided to continue, they could work out the matter of "affordability" with Hennepin County. Mark Hendrickson, Hennepin County, stated that HUD, through CDBG, has gotten into positions of simulating housing assistance programs. Chairman Neils stated that we still don't know what percentage of income elderly are permitted to pay for rent. If the rent cap of 25% of income no longer prevailed, he believed there was a chance some developer could make a partially subsidized development work. Mr. Hendrickson declared the HUD terms, as stated in their letter of lily 24, 19$7, still apply as long as CDBG funds were used in any way. HUD does not have "rules" for this program, but there are definite guidelines baseO on the law and intent of the CDBG program. Discussion continued on how the rent percentage is arrived at. Chairman Neils asked if it Has okay to have tenants pay 40-50% of their income If they were willing to do so. Mr. Hendrickson stated that the rule is not to only aid moderate income households to the detriment of low income households. Chairman Neils stated the HRA needs to know what criteria applies to tell the developers and asked how the City can find out what the County and HUD will approve. Mr. Hendrickson answered that he will have to see the proposal to give an answer. Commissloner Crain asked if they could tell prospective dewslopers that the annual rent cap would be a firm number based on the Section 8 program formula. is HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING 3ULY 30, 1987 Page Three Mr. Hendrickson answered that he wouldn't use a particular dollar figure but the approach is correct. Commissioner Gutzman stated that maybe the City should assume the figure Is 30-35S of income for the 51% of tenants. He suggested the market study be completed, RFP's be requested from developers, and then a recommendation about tt-e site be forwarded to the City Council. Mr. Hendrickson stated that the entire development must be affordable, not each individual household. Chairman Neils pointed out that the Loans to Lenders program provided that the Initial renters had to income qualify as low to moderate income. There was no percentage of Income setting the rents. Mr. Hendrickson suggested looking at the entire project by household income as to eligibility and not on an individual basis and these questions could be negotiated with the developer. Director Tremere stated he does not want to late• rave the City "second guessed" -by HUD or Hennepin County as to what +3 affordability. Before the HRA commits itself, everything has to be fir, and the agrepement be in writinq with the County and HUD in concurrence. Chairman Neils stated the study will be completed, proposals will be solicited, and criteria developed for a new Request for Proposal. Commissioner Crain wanted to know why the seven county median Income was used and not Hennepin County's median income. Mr. Hendrickson stated it was HUD policy for the CDBG program to utilize the current Section 8 income limits for that particular geographical area which was, by HUD definition, the seven county SMSA. DAYCARE ASSISTANCE PROGRAM, CDBG YEAR XII Associate Planner Dale reported that he had received a letter from Larry Blackstad, Senior Planner with the Office of Planning and Development for Heinepin County, indicating the number of households assisted. He also received a letter from Grace Norris, Community Organizer for the Greater Minneapolis Daycare Association, which explained the expenditure "bulgin". r- HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING DULY 309 1987 Page Four SECTION 8 PROGRAM ADMINISTRATIVE REVIEW Associate Planner Dale reported that 3acque. Cooper, HUD Area Office, has completed her review of the Section 8 operation and indicated we are in compliance and no listing of findings will be written.. NEXT MEETING It was the concensus to have the next meeting August 13. The meeting.adfourned at 8:10 p.m. Secretary