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
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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.
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