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.
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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.
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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.
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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.
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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
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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.
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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
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