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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 04-16-1992MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY APRIL 16, 1992 A meeting of the Plymouth Housing and Redevelcpment Authority was called to order by Chairman Crain in the City Center Council Chambers on Aprii 16, 1992. At 6:30 p.m. PRESENT: Chairman Crain, Commissioners Edson, Ricker, Blott, and Milner ABSENT: Mone STAFF PRESENT: Community Development Director Dillerud, Housing Specialist Dale, and Senior Clerk/Typist Hutt APPROVAL OF MINUTES: MOTION by Commissioner Edson, seconded by Commissioner Milner to approve the Larch 19, 1992 minutes. rm carried. 5 Ayes. Sft'?OP. HOUSING PROJECT - ATTORNEY'S REVIEW: jttar:.ay Dan Nelson of Best & Flanagan stated that he was with Holmes and ven for 12 years and has had extensive involvement in Senior Housing oject for Washington County and Dakota County. Mr. Nelson reviewed the April 9, 1992 memorandum listing the advantages and disadvantages of alternative project ownership scenarios. Commissioner Edson asked if the HRA sells essential Function Bonds, are they separate from the City's bank qualified bonds as to annual limitations on volume. Mr. Nelson stated that there is a 10 million dollar ceiling on the annual volume of this type of bond that banks may acquire. He stated that purchasers are usually mutual fund companies, not banks, however. Commissioner Edson asked if they are backed by a levy. Mr. Nelson stated it is not a general obligation of the City and therefore some form of additional security - beyond the project cash flow - would be required - such as some or all of the HRA levy proceeds. This is because the HRA itself has no resources to back the bonds. Other forms of security could be "operating deficit guarantee" or a "general obligation pledge" by the City to back the HRA bonds - over and above the project cash flow. Mr. Nelson recommended a project pro -forma showing a positive cash flow, with subsidies set up to assist lower income seminars as a separate program - internal subsidy". This would result in higher "published" rents but respond to the HRA goal of affordability. Director Dillerud asked Mr. Nelson if he has a standard Request For Proposal available covering consulting services for a senior housing project. 0 Mr. Nelson stated one could be crafted alternative project ownership scenarios. He cautionedthat the firm hired as consultant should not be permitted to also do architectural or construction work on the project. Mr. Nelson also reviewed the April 3, 1992 memorandum regarding the age, income and residency issues. He stated that it is not necessary to have income limits, but that it may be a good idea to set up some guidelines. Chairman Crain stated that it is the HRA's intention to have this project benefit lower income seniors, and to stay away from market rent senior housing. It %vuld be deemed by Plymouth residents as an inappropriate use of tax dollars for the Housing Authority to compete with private industry. Both Commissioner Edson and Chairman Crain voiced their concern for the finding in the attorney memo that the HRA may not set preferences based on duration of residency. Mr. Nelson stated that the Commission could target marketing of the project to lower income senior Plymouth residents first. He stated that residency can be a preference, but not the duration of residency. Mr. Nelson stated that the Commission could state appl cants have to be a resident of Plymouth at time of application. Commissioner Milner asked how the Commission determined subsidy. Chairman Crain stated that has not been decided yet. Director Dillerud asked if there could be a fixed percentage of units for people who are subsidized. Mr. Nelson responded that you can have a certain percentage at a certain income limit; and, another percentage of units at a different income limit. Mr. Nelson stated that a Housing Project Plan is a prerequisite to issuing bonds, and that is the time for stating income limits, residency, and other preferences. Chairman Crain called a recess at 8:15 p.m., reconvened at 8:25 p.m. Chairman Crain asked the Commission what the next step should be. Commissioner Edson suggested that they proceed with the resolution recommending the senior housing project move forward, but that they first should have a joint meeting with the City Council to give them background information. Chairman Crain agreed that the Commission should meet with councilmembers before the resolution goes before the City Council. Commissioner Edson stated at the next City Council meeting he would get a date and time for them to meet. SCATTERED SITE HOMEOVNERSNIP PROGRAM: Bill Thibault of Thibault Associates gave an overview of the Model Plans for the Scattered Site Homeownership Program. 0 Director Dillerud suggested that the Commissioners look over the Model Plans so they can later suggest what they would like to go with in future years. Chairman Crain and Director Dillerud complimented Mr. Thibault on his work. Director Dillerud noted that Mr. Thibault's contract on Scattered Site Homeownership was completed. SECTION 8 PROGRAM: Director Dillerud stated that HUD representatives could not attend the meeting, but would like to attend the May meeting. Chairman Crain stated that this item should be postponed until the May meeting. SECTION 8 OPERATING RESERVE: Director Dillerud gave an overview of the March 6, 1992 memorandum regarding the available reserve funds. Commissioner Edson stated he would like to see a program targeted for seniors to provide assistance that would allow them to stay in their homes. Housing Specialist Dale stated that the existing Rehabilitation Grant/Loan Program is mainly used by seniors for fixing up their homes. Chairman Crain stated they could look at a program for services such as lawn mowing, screens, windows and upkeep of their homes. Director Dillerud stated he would look into this and see if would qualify under the "housing assistance" guidelines. Commissioner Milner asked if there was an income limit. Director Dillerud stated not yet, but they could set income guideline similar to the Rebabilitation Grant/Loan Program. INFORMATION ITEMS: Director Dillerud explained the "surplus" line items of the Financial Report: Unreserved Surplus" -- is the total monies through the Section 8 Program from the beginning. Res Surplus - Oper Reserves" -- is the amount we have to use from accumulated administrative budget surplus. Res Surplus - Project ACC" -- is the accumulated surpluses of rental subsidies over the life of our Section 8 Annual Contribution Contracts. These funds are held by HUD in Washington, and are not available to us. Cum HUD Contribution" -- is the total amount HUD has contributed to the Program, which includes income generated by the PHA administrative fees, interest earned and ACC subsidy payment. Meeting dates were discussed by the Commission and staff and it was decided that meetings would now be held on the third Tuesday of the month at 6:30 p.m. Meeting Adjourned at p.m.