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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 06-16-1988MINUTES OF REGULAR MEETING AOUSING AND REDEVELOPMENT AUTHORITY OF PLYNOUTH, MINNESOTA 3UNE 169 1988. The Regular Meeting of the Housing and Redevelopment Authority of Plymouth, was called to order by Chairman Neils on the 16th day of 3une, 1988 at 6:30 p.m. in the Council Conference Room in the City of Plymouth, Minnesota. The following members of the Authority were present: Chairman Neils, Commissioners Gutzman, Crain, Ludovissie and Hillstrom. Also present v ere Executive Director Willis, Planning Director Tremere, Housing Specialist Dale and Clerk Rauenhorst. MINUTES Commissioner Gutzman requested the minutes of the May 5 meeting be amended on on Lines 1 and 2 of Page 2 to read: "St. Paul, Minneapolis, and other Housing Authorttles... " NOTION was made by Commissioner Crain, seconded by Commissioner Ludovissie, to approve the minutes of the May S Regular meeting as amended. Motion carried, four ayes. Commissioner Hillstrom abstained. SECTION 8 PROGRAM Planning Director Tremere presented the HRA Fund Summary of Revenue for years 1988 and 1989. The summary showed $39,148 received in Section 8 administrative fees for the period 7-1-87 to 6-30-88. Administrative fees from the CDBG program were $8,835 for the period 4-1-87 to 3-31-88. Commissioners reviewed the personnel related expenses contained in the HRA 1988 adopted budget. Executive Director Willis explained that the salary amounts were on a pro -rata basis, not direct time spent accounting. Chairman Neils suggeirted it may be worthwhile to explore a period from now to the and of 1986 to equate the pro -rata amounts to direct time spent accounting. Planning Director 'fremere stated that Housing Specialist Dale has been keeping track of his time on an actual time spent basis for some time; however, that data is not directly entered int the City's payroll system. This tracking has been used for budgeting I vvoses. Director Tremere also noted salary costs where the City provide= fit+ at'ditional *tt:bsidy (e.g. Executive Director, Planning Director, City Clerk-) tv4at awe not .wluded in salary expenses. Planning Director Tremere 34 0.0 aiat if number of certificates under Section 8 are relativo-ly eonszent, VW %drSnistrative costs are fairly constant. He presented a copy of the Mang'goF.,it Services Contract, the formal mechanism by which the HRA contracts with the City of Plymouth for services 40 HRA Regular Meeting 3une 16, 1988 Page Two rendered, particularly for the Section 8 Program. The CDBG costs and allocations are included in the HRA fund budget, but in fact, are results of grants applied for by the City Council in its joint powers agreement with Hennepin County. Chairman Hells stated that he would like to see some attempt on a recap basis expressing the complete labor charges and some element of management overhead. This would provide a true tracking of cost from a budgetary standpoint. In response to a. question by Commissioner Ludovissie, Executive Director Willis stated that studies to determine true administrative costs have not been donein other municipalities. Commissioner. Gutzman presented a portion of the Managing Housing Letter dated Hay 1988, which included the statement "GAO also says, after analysis of Section 8 administrative fees paid to 70 housing authorities of various sizes, that most PHAs are reimbursed substantially more than their cost to administer the program .... HUD rules permit surplus administrative funds to be used for any housing related purposes consistent with state or local law." Commissioner Gutzman stated the problem is that we have combined all our revenue sources and that has led, most recently, to the decision not to apply for vouchers. The Section 8 administrative fees from 87 certificates should pay for the entire cost of administering the Section 8 program. If there were a surplus, it could be dedicated to other housing related purposes. He reported that he had contacted five HRAs, and all have a surplus. Commissioner Cutzman stated that for the HRA Commissioners to maintain that we can't apply for more certificates because of further costs" is incorrect. Executive Director Willis stated that at some point if the HRA were to Increase the number of certificates, additional personnel may need to be hired to administer the program. In that case, the increased cost would be correct. Planning Director Tremere stated that traditionally any so-called surplus has gone to subsidize the CDBG or other housing programs, which do not come close to supporting itself. Planning Director Tremere stated that the contract method structure of the HRA Is different than in most other cities. He stated that under the current structure, he could not hire additional personnel without going through the City Council's budgetary process. Commissioner Crain stated that after review of Attachment A to the Management Services Contract, there is no question that the Section 8 Program generates a substantial surplus. In response to questions by the Commission, Planning Director Tremere stated that 100% of the Housing Specialist's salary is charged to the HRA's budget as City policy. HRA Regular Meeting 3une 16, 1988 Page Three Commissioner Ludovissie stated concern over the image that the HRA is a liability, perhaps due to how programs were being administervd in the beginning. Chairman Neils stated that there is the perception that the Section 8 Program Incurs a significant cost to the City. The Commissioners agreed they would like to see good cost substantiation developed for the Section 8 Program so the HRA and City Council have accurate Information. Executive Director Willis stated that staff rtll report back. DEMAND FOR SUBSIDIZED HOUSING Housing Specialist Dale reported that the demand for subsidized housing in Plymouth appears to be down based on number of phone calls and counter visits. The waiting list for Section 8 applications is somewhat decreased to approximately a six month supply. Commissioner Gutzman presented information from the State Planning Agency relative to remands and trends in subsidized housing. He noted three converging problems creating a need for additional subsidized housing: Increased number of poor, loss of federal subsidies, and the Tax Reform Act. HOME IMPROVEMENT GRANT PROGRAM Housing Specialist Dale presented revised procedural guides for the COBC Housing Rehabilitation Grant Program. Important features are as follows: 1. The new guides extend the repayment period from a five year obligation to a ten year obligation. During that ten year period, the entire loan amount Must be repaid at such time that the house is no longer the permanent residence of the homeowner receiving the loan. The loan is not pro rated as the current program allows. 2. After the ten year period has lapsed, the entire loan amount is forgiven. In other words, the "loan" becomes a "grant" after ten years. 3. The maximum amount of the loan is $100000. For those homeowners with a handicapped household member, in need of handicapped accessibility Improvements, an additional $5,000 maximum is allowed. It was noted that the new rules are not direct from HUD but were created at the county level. It was his understanding that the City can propose changes in the guides, provided the county gives written approval. Planning Director Treme:e stated the City could formally notify the County that it wishes to continue the same guides currently used. HRA Regular Meeting Dune lb, 1988 Page Four Commissioner Ludovissie stated that the rec$rculating loan program is an excell nt idea but had concerns that the rules keep changing. Chairman Neils moved, seconded by Commissioner Crain, adoption of a resolution that the Plymouth HRA recommend that the City Council inform Hennepin County that it will continue the Plymouth program as it currently exists. Commissioner Crain moved, seconded by Commissioner Hillstrom, to amend the ration to include changing to a 10 year pro rated grant rather than the current S year arrangement. Vote on the amendment, four ayes. Neils, nay. Notion passed. Notion as amended passed on a Roll Call vote, five ayes. SENIOR CITIZEN HOUSING SITE Executive Director Willis reported that Arkell Development requested tax Increment financing and housing revenue bonds for construction of senior citizen housing at one of two possible sites. The Council is considering the policy of approving such assistance for senior housingon sites other than the Downtown site. Commissioner Cutzman stated that there is a policy decision to be considered: At what affordable rent does the HRA wish to do something? Is it the 300-$500 range? Do we wish to wait for Section 202 subsidy? He stated that rents have to be a factor to be considered. Commissioner Ludovissie noted that certain rents require certain constraints In construction methods. He also stated that the density issue is a major factor with this proposal. Chairman Neils stated his concern that what goes on the proposed senior citizen housing site be consistent with surrounding land uses. In response to a question by Commissioner Cutzman, Housing Specialist Dale reported that this proposal meets the HUD affordability test. Commissioner Cutzman moved, seconded by Commissioner Crain, that the Commission's comments be forwarded to the City Council. Notion passed, five ayes. The meeting adjourned at 8:00 p.m. 4?' - G 3