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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. 0 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. s 0 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 40 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 C_J