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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 05-11-1993MINUTES PLYMOUTH HOUSING AND REDEVELOPNMWr AUTHORITY MAY 11, IM A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chairman David Crain on May 11, 1993 at 7:00 p.m. PRESENT: Chairman David Crain, Commissioners John Edson (left at 8:05 p.m.), Pauline Milner, and Brian Warhol ABSENT: Commissioner Phil Blott STAFF PRESENT: Executive Director Chuck Dillerud, Housing Specialist Milt Dale, and Secretary Denise Hutt Director Dillerud informed the Commissioners that the City Council, at its May 3, 1993 mooting, approved the concept of an inter -fund loan to the HRA for the development of 99 units of senior citizen housing at the northeast corner of Plymouth Boulevard and 37th Avenue North. Director DRIaW explained there could be a change in state law as to the bonding requirements in the next eight years. He stated Commissioners would have to decide whether to 4xmd 15,000 to $25,000 now in legal costs, or wait and take a chance that the state law does not change. Director Dille!ud stated that be met with Dan Nelson of Best and Flanagan and SpAngstead to discuss the inter --fund financing. He explained that the City Council at its June 7 meeting will adopt a FII faith and credit guarantee, and the HRA will have a special meeting in June to adopt ? -resolution accepting furs faith and credit guarantee. In July, the HRA will authorize iss m. x of bonds for the City to buy. Dhvctor Dillerud cautioned the Commissioners of the issue of rebate (negative arbitrage) and that the bonds would be considered as City bonds; therefore, the City can not -issue over 10,000,000 in bonds in any one year period. Director Hahn and Director Moore are checking into the possibilities of using capital improvement bonds. Director Dillenud informed Commissioners that the architects are continuing on the design and development. He stated that the City Council authorized a "short list" for contractors. 0 r. Commissioner Edson askee if a resolution was necessary. He suggested that a list. of four or five contractors be put together by Walker Management and sent to Commissioners with a comment period. If any Commissioners had concerns, they are to get back to Chuck, otherwise, assume that Waller can go ahead and send out the Request For Proposals. Director Diklerud stated that the Commissioners will hear presentations from the contractors. MORTON by Commissioner Edson, seconded by Commissioner Warhol directing Walker Management to prepare a contractor list consisting of four or five funis, listing experience and why they are on the list, and to circulate the list to the Commissioners for a comment period. Vote. 4 Ayes. MOTION carried unanimously. Cotnmis"sioner Edson voiced his concern with the input allowed at the focus group meetings. He stated that he previously sent a memo to the City Manager requesting investigation of possible facilities for seniors to hold functions separate from the senior housing project, as this facility would not be large enough. Chairman Crain commented that there would be were parking problems at the senior housing project if senior groups were to meet there. Housing Specialist Dale gave an overview of his May S, 1993 memo outlining several topics to be discussed and decided by the Commissioners. Chairman Crain commented that the HRA is not in the business of providing market rate units; therefore, there should be no allocation of market rate units. Commissioner Edson suggested that no more than 10 units be available as market rate units. Housing Specialist Dale recommended that no more than 10 units be available for a 'deep subsidy' for very low income residents. Chairman Crain agreed that up to 10 units be made available for deep subsidy. Commissioner Edson was concerned with imposing income and asset levels. Chairman Crain stated he would rather set an income level. Commissioner Edson stated there should be no asset limitation. In this regard, be would like to see staff prepare a policy and bring it back to the HRA for their consideration. Housing Specialist Dale asked Commissioners if they would like to establish three or four income levels to assure that a pre-set range of income groups be served by the facility. 0 Commissioner Edson replied that it has already been decided to have no more than 10 madoet rate units, and no more than 10 deep subsidy units, while the other units would fall somewhere in between. Commissioners discussed a 'pure' lottery system versus a preference system with a lottery only after all preferenced applicants had been served. Commissioners opted for the preference system. Commissioner Belson suggested that applicants could qualify for one of the . following preferences in terms of priority in renting a unit: Lave in Plymouth ten years or longer (row or previously) and income is less than $29,000 6 points Lave in Plymouth ten years or longer (row or previously) and income is greater than 29,000 — S points. lave in Plymouth one to nine years (now or previously) and income is less than $29,000 — 4 points Live m Plymouth one to nine years (now or previously) and income is greater than 29,000 -- 3 points Son or Daughter now live in Plymouth and income is less than $29,000 -- 2 points Son or daughter now live in Plymouth and income is greater than $29,000 -- 1 point Lave outside of Plymouth — 0 points Chairman Crain also clarified that 62 years of age be set as the minimum age in which to apply. Comments/requests made by seniors in attendance were as follows: frost -free refrigerators with the freezer located on the top; plug -ins for car heaters for the outside pad ft area; windows that pull in to wash; window washing service available for those who can not maintain their windows; need for more laundry rooms; desire for storage lockers to be on each floor; and, how can applicants be notified far enough in advance to allow them to put their house up for sale. Director Dillerud gave an overview of his May 5, 1993 memo. Chairman Crain believed the odds to be very slim for funds becoming available for a Plymouth project and that he did not consider this a good investment of staff time. 0 11" N Philip Eckert, Director of the Hennepin County Office of Planning and Development stated by renewing the Consortium Agreement for a three years period it keeps the options open for companies to approach the City with proposals for projects. There would be no staff time or costs involved should the City taloa an inactive role. Douglas Benson, Planning Supervisor of than Development Planning Unit of Hennepin County's Office of Planning and Development, stated that by declining to ream the agreement might be turning its back on opportunities. MOTION by Chairman Crain, seconded by Commissioner Warhol to recommend renewing the Consortium HOME, Agreement for a period of three years. Vote. 2 Ayes. (Commissioner Milner voting Nay.) MOTION carried on a 2-1 Vote. APPROVAL OF BEM3 S MOTION by Commissioner Miler, seconded by Commissioner Warhol to approve the April 20, 1993 minutes. Vote. 2 Ayes. MOTION carried unanimously. (Chairman Crain abstained.) COBOMEMMrVE HOUSING AIMORDABILWY STRATEGY (CHAS) MOTION by Chairnan Crain, seconded by Commissioner Milner approving a Request For Proposal (RFP) for selection of a consultant to develop a Comprehensive Housing Affordability Strategy (CHAS). Roll Call Vote. 3 Ayes. MOTION carried unanimously. FIRST 3M HOMLBUYM PROGRAM - PROPOSED CHANGES Chairman Crain outlined the issues of the April 9, 1993 memo to be discussed. Commissioner Warhol informed Commissioners that it is against HUD regulation to pay a mortgage company a stipulated fee for each mortgage processed. He did offer to contact a former employee of Norwest who is new working for FBS Mortgage to see if a better working relationship could be obtained. Commissioner Warhol also offered the services of Tim Sweeney of Norwest. Chairman Crain directed Housing Specialist Dale to readvertise for the First Time Homebuyer Program and contact all persons from last year's waiting list. Commissioner Warhol was concerned that providing $25,000 of assistance was too excessive. 0 Chairman Crain agreed that the current level ($15,000) of assistance is more appropriate. Chairman Crain stated the proposed lottery with one point given for each of the following preferences that is applicable to an applicant is acceptable: Family of five or more Live or work in Plymouth School age children attending Plymouth schools Receiving Section 8 Assistance (Plymouth based certificates) Never owned a home (versus having owned a home three years ago or longer) Commissioner Warhol commented that it would be belpful to have some type of prequalification for applicants. It was decided that Commissioner Warhol could provide some guidelines for mortgage preslualifications to Housing Specialist Dale for the initial screening to be done internally. Chairman Crain stated that giving additional financial assistance to wbeelohair handicapped applicants is a necessity, as there are many costs involved in making a home handicapped accessible; but, it would be more appropriate under the Rehabilitation Grant/Loan Program. Chairman Crain stated the name of the program should be First Time Homebuyer Program, as suggested by staff. REHABILITATION GRANTRAAN GUMELEM Chairman Crain commented that the wording on Page 28, Paragraph C was confusing. Housing Specialist Dale replied that he would rewrite the paragraph to state $5,000 over greet accessibility of $10,000 would be allowed for accessibility improvements. MOITON by Chairman Crain, seconded by Commissioner Ward to recommend adoption of the Housing Rehabilitation Grant/Loan Program Guidelines. Roll Call Vote. 3 Ayes. MOTION carried unanimously. PROPOSED CHANGE IN INCOME LIlAM FOR REHABILITATION GRANT/LOAN ffi MOTION by Commissioner Warhol, seconded by Chairman Crain recommending the change of income limits for the City's Housing Rehabilitation Grant/Loan PnWam effective June 1, 1993. Roll Call Vote. 3 Ayes. MOTION carried unanimously. 0 MOTION by Chairman Crain, seconded by Commissioner Warhol inviting the HennepinCountyHousingandRedevelopmentAuthoritytoprovideassistancepursuanttothemin County Community Providers Program. Roll Call Vote. 3 Ayes. MOTION carried unanimously' AM An jtgGEZ= ROAD Housing Specialist Dale informed Commissioners that additional $10,000 is needed from theSection8OperatingReservefortheappraisedvalueofthelotlocatedatthesoutheastcorner of Fernbrool Lm and Rod dbrd Road. Chairman Crain stated that the $10,000 appraisal of the property was too excessive but, because of timing constraints of the housing project proposed for that lot, he authorised the iters to go to the City Council. MEETING ADJOURNED AT 9:35 PAL 0