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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 09-21-1993MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY SEPTEMBER 21, IM A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chairman David Crain on September 21, 1993 at 7:00 p.m. PRESENT: Chairman David Crain, C:oaunissioners Pauline Miner, and Brian Warhol ABSENT: Commissioners John Edson and Phil Blott STAFF PRESENT: Executive Director Anne EWburt, Housing Spadalist Dale, and Housmg Secretary Denise Hutt APPROVAL OF I ED=S Commissioner Warhol amended the August 10, 1993 minutes under the First Time Homebuyer Program stating that seven applicants are in process of being prequalified. MOTION by Chairman Crain, seconded by Commissioner Warhol to recommend approval of::he August 10, 1993 minutes as amended and the August 17,1993 minutes. Vote. 3 Ayes. MOTION carried unanimously. MOTION by Chairman Crain, seconded by Commissioner Milner to Confirm the appointment of Anne W. Hudburt as Executive Director of the Plymouth Housing and Redevelopment Authority. Roll Call Vote. 3 Ayes. MOTION carried uaaninmudy. Gary Frana of Fran and Sons, Inc. presorted Commissioners a portfolio outlining Fran and Sona' arperienc a Mr. Fran stated the company was founded in 1977. Fran and Sona have constructed 9,000 housing units with over 5,000 units being government assisted projects. A considerable amount were federally fiuuded Section 202 scion housing projects They have worked in cooperation with numerous housing authorities throughout the state. Chairman Crain questioned whether Frana and Sons would be willing to guarantee the alternate bid amounts for a reasonable period of time , i.e. up to 90 days. Mr. Frana replied that the 90 day period should not be a problem, depending on the construction timetable for each bid alternate. Greg Oppegard of Walker Management asked if Frana and Sons would be able to be ready to begin by the first week in October, as per Walker's current timeline. M. Frena responded that the insurance and bonding would only take a natter of days and a rough construction schedule could be prepared within a week. Mr. Fran asked if the building permit is in process. , Jay Nelson of BRW Eli= Architects informed Commissioners that there are several items still to be worked out with City staff. One item being the interpretation of whether interior space in the central common area is considered an atrium or a two story interior. Additional fire and heating ventilation with extra doors could be required should it be classified as an atrium. Mr. Nelson stated that a meeting is scheduled for Thursday with building inspector Bill Torm. Mr. Nelson questioned whether a foundation permit could be issued now. Chairman Crain asked if there was anything the housing authority could do to expedite the Process. Mr. Nelson suggested that Commissioners call City staff to inquire on the status of the appcation. Mr. Nelson stated the Bassett Creek Water Management Commission also needs to provide a permit before construction can start. Chairman Crain questioned if the housing authority has to approve any changes that occur with the plans and specs. Dan Nelson of Best and Flanagan informed the Commission that after approval of the bond resolution, there is no need for full board approval as the Chair and tbe Executive Director have the authorization to approve change orders. Mr. Oppegard asked Frana and Sons for their opinion on the design efficiency and if they noticed any cost saving alternatives. Jerry Rothmeyer, with Fran and Sons, Inc. stated that currently the S48,0000unit cost is typical for construction costs for housing projects in the Twin Cities area now. He believed that something for less money could be accomplished in the "atrium' area, but it would not have the same aesthetic effect. He informed Commissioners that if any ideas surface from subcontractors at a later date, it would be relayed to time HRA. Mr. Oppegard questioned if Frana and Sons had worked with the subcontractors that submitted bids to them. Fran and Sons have worked with most all of the subcontractors that submitted bids. W. Oppegard asked if Walker could get a fisting of subcontractors that Fran and Sons intends to use. Mr. Rothmeyer replied that Frana and Sons have to review each bid see if they were according to plans and specs. He stated that a list could be prepared of the major subcontractors. Mr. Oppegard asked if all subcontractors were union. Mr. Fran responded that most are union. Mr. Oppegard questioned how Frana and Sons know that the subcontratrac tore bids are accurate. He also asked if then was an item that came in "under bid" would the cost savings be passed on to the housing authority. Mr. Fran replied that Frana and Sons would review the bids from the subcontractors to assure they comply with the plans and specs, but then are always gray areas. He stated 1 that since this was an open market bid, the housing authority would not receive a credit if an item comes in under bid. In their experience, it usually goes the other way, in which the contractor would have to absorb the cost if an item goes over budget. Mr. Oppegard asked Frana and Sons if they have any allowances in the bid. Mr. Fran responded that their bid contained only hard costs He stated that Frain antl Sons have a good reputation and are not known to "nickel and dime" a project. Mr. Oppegard questioned how long it would take Frana and Sons to mobilize the site. Mr. Fran understood that it is critical to start quickly. He stated the permit may not be ready by October 1, but if a foundation permit could be issuld, it would be helpful. The site could be mobilized within a week. Mr. Opp%W asked if Fran and Sons initiate a dose out method. He explained that several walk throughs would be taken by Walker, the housing authority, inspectors, and the architects. Mr. From replied that they use a "punch W. He suggested that if feasibl,;, all groups should go through at one time to allow them to consolidate items onto one list. He stated their superintendent normally stays involved with the project and would likely still be onJ site when tenants move in. Mr. Oppegard wanted these items to be brought up at the preconstruction meeting with the subcontractors. Mr. Frana replied that Frana and Sons do not foresee any problems with their subcontractors. Commissioner Milner complimented Franc and Sons as she has heard positive comments regarding their work. MOTION by Chairman Crain, seconded by Commissioner Milner to recommend approval of awarding the bid to Frana and Sons, Inc. for construction of the senior housing project known as Plymouth Towne Square. Roll Call Vote. 3 Ayes. MOTION carried unanimously. SENIOR MOUSING UPDATFJREVIEW OF AIM POLICIES David Grant informed Commissioners that the ground breaking ceemony for Plymouth Towne Square is slated for October 20, 1993 at 10:30 a.m. Mr. Grant stated the Admission and Occupancy Polices is still a drag. He pointed out that key issues yet to be decided are how the subsidy will be netted out to residents; if there are not enough Plymouth residents to 511 building, law does the Commission was to address that issue; and, age 55 should be considered for admittance rather than age 62. David Grant called on Sarah Miller of Walker to give an overview of the Admissions and Occupancy Polices. She stated that the current draft follows a HUD format, but the next draft will be mon "user friendly". She cautioned that the Policy should not be distributed to residents, as it a basically a reference tool for the housing authority and the management leasing staff to use to administer the project. Ms. Miller stated that Walker proposes lowering the admission age requirement from 62 to 55. The income.requiremmemts are set by HUD and normally are revised yearly. Total annual income and income from assets micas any medical expenses am computed to get the adjusted amamal income. The asset limit is set at $10,000. Ms. Miller sunested considering 36 months for claiming assets sold fru less than fair market value rather than HUD's 24 months. Ms. Miller indicated letters would go out to all people on the interest list. They would be given a deadline to return their application. The applications would be sorted by preference and a lottery would be held for each preference.. She suggested that this be done five monthsin advance of project completion. She stated that Walker assumes nine units for very low income, 81 units fbr lower income; and, nine units fn market rate. 0 Mr. Nelson reminded Commissioners that the bond resolution projects 110 percent coverage for debt service. He stated that this project is not subject to any HUD regulations; therefore, the housing authority can set up income, assets, and medical expenses any way it chooses. He stated that the policy can also be revised at any time. Ms. Miller suggested that interim changes to rent portions shr-ild be limited to three per year. only income changes of $40.00 or more per month shoved be reported between re - exams. Mr. Grant informed Commissioners of the Fair Housing Amendment Act of 1989. Should a housing project require an admission age of 62 or older, they can not lease to anyone under age 62. N a married couple leases up and the husband is 62 and the wife is under age 62, when the husband dies, and the spouse is still under age 62, she would have to vacate the unit. Chairman Crain questioned why Walker is proposing three pmare res when the housing authority approved seven preferences at the May 11 meeting. Mr. Grant responded that the vuilication process with seven preferences would be administratively complicated and time consuming. He understood the Commissioners wished to give preference to long time Plymouth residents, and Walker Will revisit this issue and make revisions as per the MRs direction. y Mr. Nelson stated the housing authority could well have difficulty with some of the seven preferences should a discrimination suit be Sled. However, he believed that the 12 month residency requirement with the addition of income limits would not pose a problem. Chairmen Crain commented that he is receptive to the idea of giving preference to a resident that is willing to sell their home to an applicant for the First Time Homebuyer Program. Housing Specialist Dale understood that a similar program was implemented in Brooklyn Park or Brooklyn Center a few years ago. Director Huriburt stated that staff would check into the feasibility of residues selling to Fust Time Homebuyer applicants. W. Grant believed that by capping the subsidy amount, there is the possibility that some applicants would not be accepted if there income is not high enough. Chairman Crain concurred that this may happen, as there would be a limited subsidy amounnt available to help the very low income people. W. Nelson asked if Walker knew where the breaking point in income would be where a very low income person's income is not enough. Mr. Grant responded that if an applicant received social security of 5800/month, their rent portion of 30 percent of income would be approximately 5250/month, but the base rent on a one bedroom one bath unit is 5325/month. Chairman Crain commented that on page 6 of the Admissions and Occupancy Policies under Waiting List, units are not subsidized, rather it is the tenant's rent that is subsidized. Chairman Crain stated that $10,000 is an appropriate asset level. He suggested that the HUD rate may be more appropriate for income derived from assets. Chairman Crain stated that the issue of pets will have to be resolved, but he would prefer that all Commissioners be in attendance before that decision is made. Ms. Mller offered the .HUD definition for pets allowing only cats and dogs under 30 pounds. She recommended an additional $300 deposit be required which could be paid in Director Hwiburt stated that staff will look into pet policies. A question was asked if you had to be married in order to get a two bedroom unit. Chairman Crain stated that a married couple would have a choice of a one or two bedroom unit. Two people such as sisters or friends could get a two bedroom unit, but one person would not be eligible for a two bedroom unit. A question was raised if an applicant got accepted, but could not move in right away, will they be charged for rent. Ms. Miller explained that an applicant retains priority until they have refused a unit for the third time, at which time they would remain on the waiting he, but would go to the bottom of the list. A question was asked if the rents would be raised. Chaimw Ifain stated that rents would probably increase at sometime, but hopefidly slowly. Someone asked if there were any other housing projects in the Twin Cities of this nature. Chairman Crain stated that Dakota County has several housing projects somewhat similar, but this is the only one he knows of funded strictly out of a local tax levy. A question was asked if the rents will be the same on the 81 units for the lower income residents. 0 Chairman Crain explained that currently there are four different rent levels based on number of bedrooms and size of units. The question was asked if an applicant could pick what unit they want after they were Chairman Crain replied that an applicant could pick their unit from the available units. A question was raised if a prospective tenant could pay more than 30 pawn of their income to get the unit they want? Chairman Crain stated he could not answer that now, as it will be a housing authority decision to be made at a subsequent meeting. A comment was made from a Plymouth resident that it was a good idea that the housing authority owns the project so that federal limitations are not imposed on the project. He stated he would like to see long time Plymouth residents have first opportunity to occupy the units. Recess at 9:03 p.m. Reconvene at 9:15 P.M. FQ`Ala RESOLUTION rva. uav BONDS FOR SENIOR -- --- - — — -- Mr. Nelson gave Commissioners a remised resolution naming Frana and Sons, Inc. as the MOTION by Chairman Crain, seconded by Commissioner Mdner authorizing the issuance of the Plymouth Housing and Redevelopment Authority governmental housing project bonds (senior apartments project), Series 1993, in the aggregate principal amount not exceeding $6,000,000 and approving and authorizing the execution of various documents in corn tion therewith. Roll Call Vote. 3 Ayes. MOTION carried unanimously. CDBG FUNDING RFOULSTSS ET MG DATE FOR PUBLIC HEARING Bernie Vrona of The Community Home Progrem stated they provide adult foster care housing. They would like to construct a twinhome on the site located on the northeast corner of Fernbrook Lane and County Road 9. Chairman Crain conmrona that the housing authority would need to use cement 1993 CDBG funds to support this proposal. He stated that a public hearing should be held on October 19, 1993 to reallocate funds. 9 MOTION by Chairman Crain, seconded by Commissioner Warhol to authorize publication ice' of two public hearing notices with hearings to be held on October 19, 1993 for reallocation of 1993 CDBG funds and funding for the 1994 CDBG program. Vote. 3 Ayes. MOTION carried unanimously. Commissioner Milner asked the anticipated cost of the building. Mr. Vrona responded that the cost would be between $200,000 to $250,000. Mr. Nelson asked Mr. Vrona what the funding source was for construction. Mr. Vrona replied that he has prior approval from the City of Minneapolis for a 5,000,000 bond. OTHER BUSDMSS Kristin. Stapleton the Commissioners stating that this was the second year that she has tried to ; w: saes a honx- in Plymouth through the First Time Homebuyers Program. Shr MVa W olustration to Commissioners that this program does not work for lower incoaaee aceta, as the $15,000 maximum financial assistance is not 01104814 and Plymouth does not have enough affordable homes. She Raked who ad the naaxira m financial assistance at 515,000. Chairman Crain responded that the housing authority sets the fimuw l assistance limits. He stated they are faced every year with the dilemma of either offering more assistance and help fewer people, or offering $15,000 and help more people. He commented that this issue could be looked at again. Ms. Stapleton asked how many people the program served last year. Housing Specialist Dale replied that 19 families were assisted with an average amount of 10,000. They had annual incomes from $18,000 to $35,000. Chairman Crain hoped that then may be some affordable Wines available from seniors who sell their homes to move into the senior housing project. PLYMOUTH HOUSING ALLUNCUADVUMORY CO3EME E O MOTION by Chairman Crain, seconded by Commissioner Milner to recommend that Kin M. Bergman, Philip S. Dommer, Brian A. Warhol, Stephen A Ludovissie, and James R Eide to appointed to serve on an advisory committee to the Plymouth HRA to assist in the creation of a 501(c)(3) organization called the Plymouth Housing Alliance for a period of at least one year beginning September 21, 1993. 0 i Roll Call Vote. 3 Ayes. MOTION carried unanimously. MOTION by Chairman Crain, seconded by Commissioner Milner to authorize using no more that $20,000 of Section 8 operating reserve funds for the designated purposes of developing the Rockford Addition site and creation of a non-profit organization. Further, that expenditures over $200 with the exception of administrative costs be approved by the Plymouth HRA. Roll Call Vote. 3 Ayes. MOTION carried unanimously. MOTION by Chairman Crain, seconded by Commissioner Milner directing staff to make application for a construction loan with Norwest Bank with such loan not -to -exceed 60,000 for a period of no more than nine (9) months at a reasonable interest rate. Roll Call Vote. 3 Ayes. MOTION carried unanimously. Meeting Adjourned at 9:46 p.m.