HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 09-21-1989MINUTES OF REGULAR MEETING
HOUSING AND REDEVELOPMENT AUTHORITY OF PLYMGUTH, MINNESOTA
SEPTEMBER 21, 1989
The Regular Meeting of the Wising and Redevelopment Authority was called to
order by Vice Chairman Crain on September 21, 1989 at 6:40 p.m. at the City
Center Council Conference Room in the City of Plymouth, Minnesota.
PRESENT: Vice Chairman Crain, Commissioners Ludovissie, Palmer, and Gutzman
ABSENT: Chairman Neils
STAFF PRESENT: Assistant City Manager Boyles, Housing Specialist Dale, and
City Clerk Rauenhorst
APPROVAL OF MINUTES
NOTION was made by Commissioner Gutzman, seconded by Commissioner Ludovissie,
to approve the minutes of the August 17,. 1989 meeting.
MOTION carried on a Roll Call vote, four ayes.
SECTION 8 PROGRAM PRE -TERMINATION HEARING
Housing Specialist Dale reported that he has attempted to get a response from
a Section 8 certificate holder regarding alleged non-compliance of the Section
8 Program regulations as to income verification. Notice was sent by certified
letter indicating a pre -termination hearing would be held on September 21 and
she would be allowed an opportunity to address the Commission. She has not
re::ponded. She also appears to have moved out of her apartment at Alpinetree
Apartments. Since no response has been received, Housing Specialist Dale
recommended she be removed from the Section 8 Program immediately, and no
further rent payment for the apartment be made after September 30, 1989. He
stated this arrangement is satisfactory to the apartment management.
Vice Chairman Crain opened the pre -termination hearing. He asked if there is
proof she has moved out of the apartment.
Greg Henricks, apartment manager of Alpinetree Apartments, responded that it
Is his belief after entering her apartment that she is living in another
apartment in the building with a boyfriend and no longer in the apartment she
originally leased.
Commissioner Ludovissie asked Mr. Ilenricks if the September rent was paid on
her unit.
Mr. Henricks responded that he received the Section 8 portion of the rent, but
the tenant did not pay her share of the rent. It is his intention to rerent
the apartment as soon as possible. He stated there was no damage to the unit
and he intends to retain her damage deposit which will cover a portion of the
September rent.
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HRA Meetinq
September 21, 1989
Page 2
Commissioner Ludovissie suggested to Mr. Henricks that appropriate legal
procedures be followed if he intends to discontinue the lease. This hearinq
only refers to Section 8 eligibility of the tenant.
No one else appeared for the hearing, and the pre -termination hearing was
closed.
Housing Specialist Dale reported that there is another Section 8 certificate
holder at Alpinetree Apartments whose lease terminates the end of September.
She has been mailed three letters asking for standard income verification and
has not responded. He received information that she had vacated the
apartment.
Greg Henricks, apartment manager of Alpinetree Apartments, stated that it is
his belief that she has vacated the apartw.nt. He reoorted that the tenant's
mother moved into the apartment unit and paid the non -Section 8 portion of the
September rent.
Housing Specialist Dale stated it is his intention to not renew this
Individual's Section 8 eligibility when it expires on September 30..
NOTION was made by Commissioner Gutzman, seconded by Commissioner Palmer, to
terminate the Section 8 contract with the first individual at Alpinetree
Apartments based on the staff recommendation, information piesented by the
apartment manager, and that the tenant did riot respond to the mailed notices
or appear for the pre -termination hearing.
Notion carried on a Roll Call vote, four ayes.
NOTION was made by Vice Chairman Crain, seconded by Commissioner Ludovissie,
to endorse the staff's antion of non -renewal of the Section 8 certificate for
the second tenant at Alpinetree Apartments.
Notion carried, four ayes.
SCATTERED SITE HOUSING OPTIONS FOR COBG YEAR XIV FUNDS
Housing Specialist Dale reminded the Commission that by the end of December,
1989, the City is required to have $23,706 of Year XIV COBC monies expended or
encumbered on a scattered site housing program. He suggested several options:
1) Scattered site housing assistance program based on Eden Prairie experf:ence,
2) Beacon Heights Elementary School site, and 3) Chapman house purchased by
the City for 10th Avenue North right-of-way.
Housing Specialist Dale stated that the 10th Avenue North house is a
single-family residence at 10877 South Shore Drive. The City Engineering
Department required only 10 feet off the front yard of the property facing
South Shore Drive; however, it was economically more feasible to purchase the
entire parcel rather than only the 10 feet needed for right-of-way. The house
is a nonconforming use '!rated in an R-3 District but it is bordered by other
single-family homes. According to the appraiser, the highest and best use for
the property is its present use as a single-family home. The house is slab on
grade, two story, with the main floor having poured concrete walls.
HRA Meeting
September 21, 1989
Page 3
Years XIV and XV COBG money could be used to move the house to another site,
construct a basement, and rehabilitate it as needed. Upon completion of the
work, the house could be sold to a moderate income family meeting Section 8
incq,,ne guidelines. This project would meet zeveral needs. Its removal would
provide a cleared site for the City, the house could be sited in a
neighborhood zoned for single family rather than multi -family dwellings, and
It would provide an eligible family with a home at an affordable price.
Vice Chairman Crain questioned the costs involved of moving a two-story house
with poured concrete walls to another site.
Housing Specialist Dale indicated he has not investigated costs for moving the
house.
Commissioner Gutzman asked if the City desires the house moved from the
current site for a particular reason, such as a proposed development. He
asked if the property could be sold as it currently exists, with the 10 foot
right-of-way removed.
Housing Specialist Hale stated there are a number of options 1) the house
could be moved as previously described; 2) the house could be sold on the
current site to do income qualifying family, or 3) the house and site could be
sold on the open market.
Commissioner Ludovissie noted there are other single-family homes across the
street from this house and uses for this site, other than residential, are
limited.
Vice Chairman Crain stated reluctance to move ahead with the project until the
feasibility is shown. He stated he is not opposed to the concept but would
like a better researched project with cost estimates.
Commissioner Gutzman agreed that complete project costs need to be considered;
otherwise public dollars expended for the project could exceed the public
value.
Commissioner Gutzman asked why Year XIV COBG monies must be used to the
Scattered Site Program or if other programs could be considered.
Housing Specialist Dale responded that the money was designated for the
Scattered Site Program following the COBG public hearing. Another public
hearing could be held to reassign those monies to another program.
Commissioner Cutzman asked if there was still .interest in assisting with costs
for an assessment of the Beacon Heights Elementary School site options.
Commissioner Ludovissie stated he could support spending CABG monies for such
a study only if the City has a specific interest in the site and if School
District 284 participates in the project.
Commissioner Gutzman suggested using the money for a new program to assist
homebuyers. The Eden Prairie Program could be used as a model to save
administrative and start-up costs.
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HRA Meeting
Septemer 21, 1989
Page 4
Vice Chairman Crain stated that of the three options discussed, use of the
funds for this type of program is the most attractive.
MOTION was made by Commissioner Gutzman, seconded by Commissioner Ludovissie,
to utilize the remaining Year XIV CDBG monies in a Scattered Site Housinq
As,.istance Program similar- to the Eden Prairie Program.
Housing Specialist Dale stated that, depending on interest in the program, a
portion of Year XV monies could be used in addition to the $23,706 Year XIV
monies.
The Commission suggested that staff publicize the program and receive
app '-ft" Ons. Based on the interest shown, they can consider whether
de. on of Year XV monies would be appropriate.
Motion carried on a Rell Call vote, four ayes.
1990 HRA FUND BUDGET
Assistant City Manager Boyles presented the Housing and Redevelopment Fund
Budget proposed for 1990 in a combined amount of $614,000. He stated that the
Housing and Redevelopment Budget has been displayed as two components as
previously requested by the Commission. The first deals with program items
related to activities which are the direct responsibility of the HRA, for
which there is no ad valorem support. The second category includes those
expenditures related to contracts between the City Council and Hennepin County
through participation in the CDBG program. This format was established in
1989 and more clearly portrays the respective programs of both activities and
the relationship of the property tax special .levy.
The Commissioners indicated they were very pleased with the new format.
Vice Chairman Crain asked If the data processing allocation contained in the
budget could be explained and whether a like savings can be identified
elsewhere in the budget due to use of computer equipment.
Assistant Manager Boyles stated that the data processing allocation is part of
the computer conversion process. There is no direct like savings contained in
the budget. There may be diseconomies in the first year of operation, with
savings realized in future years.
The Commission discussed the amount of the training line item. Commissioner
Ludovissie stated he would be interested in greater participation in area
workshops in order to meet with other HRA commissioners and share idear,.
Housing Specialist Dale was directed to check on programs offered and report
back when they are available.
Commissioner Cutzman stated he is very pleased with the format and the
break -down between CDBG and Section S. He asked why all legal costs were
charged to Section 8 and none to CDBG.
HRA Meeting:
September 21, 1989
Page 5
Assistant Manager Boyles stated minor corrections may be needed in the
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break -down between CDBG and Section S.
Vice Chairman Crain recommended moving g $500 legal fees from Section 8 t CDBGo
and $500 equipment rental from CDBG to Section 8.
MOTION was made by Vice Chairman Crain, seconded by Commissioner Gutzman, to
adopt RESOLUTION NO. 89-06 ADOPTING A 1990 PLYMOUTH HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET with the amendment noted.
Motion carried on a Roll Call vote, four ayes.
INFORMATION ITEMS
The Commission reviewed a memorandum from Oack Kemp, Secretery of HUD,
Indicating a strong commitment to continuing the Section 8 Rent Assistance
Certificate Program for another five years.
The Commission received a staff response to a previous Commission inquiry that
the percentage of first-time home buyers in Plymouth is approximately 10
percent city-wide.
The Commission received a report on The Minnesota Community Proqram which
Housing Specialist Dale recently attended.
The meeting was adjourned at 7:55 p.m.
City Clerk
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