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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 11-16-1993MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY NOVEMBER 1(h 1993 A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Acting Chairman John Edson on November 16, 1993 at 7:00 p.m. PRESENT: Acting Chairman John Edson, Commissioners Pauline Milner and Brian Warhol (arrived at 7:40 p.m.) ABSENT: Chairman David Crain, and Commissioner Phil Blott STAFF PRESENT: Executive Director Anne Huriburt, Housing Specialist Milt Dale, and Housing Secretary Denise Hutt SENLog HOUSING PROJECT UPDATE Jay Nelson of BRW Elness Architects gave an update of the November 15, 1993 statusreportsubmittedbyGregOppegardofWalkerManagementforthePlymouthTowne Square Project. Director Hudburt stated she and Milt have met with Walker regarding the Admissions and Occupancy Policies and should have another draft for Commissioners to review for the December meeting. Director Huriburt asked Mr. Nelson when Commissioners would need to look at exterior colors for the building. Mr. Nelson replied the exterior brick would not so on until Spring. He will provide a display with sample bricks and colors from which Commissioners can make selections. The Commissioners will need to decide on a color for the shingles. The color ranges will be similar to those represented in the drawing that was on display for the ground breaking ceremony. Director Hurlburt reminded Mr. Nelson the Commissioners only meet once a month and to keep her informed if a decision is needed so she can place it on the agenda in a timely manner. c•.ONMgENS1VE HOUSING AFFORDABILITY STRATEGY (CHAS) Housing Specialist Dale stated Thibault Associates has essentially completed his work on the CHAS. Total cost should not exceed $5,400, which is much lower than was originally anticipated. 0 Housing Specialist Dale submitted an activity report from the Minnesota Housing Finance Agency. The report indicated that 26 Plymouth families have been assisted by Minnesota Housing Finance Agency programs during its latest funding year. Housing Specialist Dale explained there has been a decline in dollars expended for the First 1"une Homebuyer Program in 1993, as it is more difficult for buyers to find affordable housing. He informed Commissioners of the possibility of making some changes to enhance the program. Acting Chairman Edson wondered if the proposed changes would be brought forward for Commissioners approval. Housing Specialist Dale responded any proposed changes would be submitted to Commissioners for their approval. He hopes to get started with the 1994.program in January to afford the applicants prime market time in March and April. SECLTON 8 FUNDING RENEWAL Housing Specialist Dale explained that we have not yet received the contracts from HUD to renew our Annual Contributions Contract for 25 certificates that expired October 10, 1993. This means that the Section 8 operating reserve will have to cover housing assistance'payments for October, November, and December. The contracts should be received shortly and will be placed on the December agenda. Acting Chairman Edson asked Assistant Finance Director Jacobson about the possibility of obtaining a more understandable report from the Section 8 fee accountants. Assistant Finance Director Jacobson explained the fee accountants, Hawkins, Ash, Baptie Company (HABCO), follow specific HUD requirements and set up their reports according to those guidelines. He informed Commissioners the City also keeps their own financial records, but the City's year end is December 31, while HUD's year end for Section 8 is June 30. Acting Chairman Edson wondered if the independent auditors look at the quarterly reports and the annual report submitted to HUD and if those reports reconcile with the City's reports. Assistance Finance Director Jacobson assured Commissioners the independent auditors do look at the quarterly reports and the annual report prepared by HABCO and then reconcile with the City's funds. They are reviewed every year. 0 Housing Specialist Dale commented he did send a letter to John Payne with HABCO concerning the feasibility of more detailed or easier to understand formatting. Mr. Kayne indicated they would be willing to do a second report per our format, but their monthly fee would increase. Acting Chairman Edson stated he would like to see the City's format based on a June 30 reconciliation. He suggested stag provide quarterly reports (similar to the budget report) showing income and expenses to :he housing authority. FAMILY SELF SUFFICIENCY PROGRAM UPDATE Housing Specialist Dale commented he met with the representatives from the St. Louis Park Housing Authority to begin the process of establishing a committee for Family Self- Sufficiency. He has received a call from a realtnr interested in serving on the committee. At this point, the HRA is still not committed to the Family Self-Sufficiency Program. FMLIC DARING FOR CDBG FISCAL YEAR 1994 Tun Jordan, Training Coordinator for Hennepin Technical College requested consideration of the use of Community Development Block Grant funds to provide a training center to be located in Plymouth. The training center would provide training for dislocated workers to re-enter the work force, and for unemployed or underemployed persons to qualify for jobs, as we'd as, acting as a service to small and medium size businesses in the area. W. Jordan responded to the concern of Commissioner Edson regarding the possibility of duplication of services provided by Community Education Programs through the school districts. He stated he met with Tun Brandl of the Wayzata School District Community Education Department who has some similar problems with their computer classes in finding enough free lab time to meet the demand. Additionally, they have the need for other classroom space for contmumg programs in General Equivalency Diploma (GED) and English as a Second Language (ESL) programs that may be able to utilize the training center. This partnership would offer fuller service to community residents. Mr. Jordan explained the training center offers an open lab style where participants can work at their own speed. He stated the greatest number of dislocated workers are in the northwest quadrant of Hennepin County, and they have to travel the furthest distance to Peach accessible training facilities. John Edson vv°xd his concern that this training center may interfere with .programs established by Community Education Departments for small businesses. He stated there is no doubt this is a worthy program for the dislocated workers, but stressed we may be providing an unfair advantage over the school districts when we allow Hennepin Technical College to obtain the use of CDBG funds while school districts are faced with very limited fiords and resources. Mr. Jordan s'ressed demand is high for day time training. Most customized training offered through the Community Education Departments are offered only on evenings and weekends. There is not enough space available. He stated the dislocated workers have been serviced, but very poorly. Danelle Wolf, Director of the Small Business Development Center commented the intention is not to duplicate services, but to create partnerships bete yen government agencies and community education services. She does not see the Community Education Departments as their competitor. Acting Chairman Edson asked what areas would be serviced by this proposed training center. W. Jordan replied that once the students get approved for the program, it is their decision as to which training center that' would attend. There will undoubtedly be students from outside of Plymouth. Acting Chairman Edson asked where the additional funding is coming from as the original request was for $150,000 and the proposed resolution states $62,000. Mr. Jordan responded Hennepin County may be able to offer a rent subsidy. After a commitment from the Plymouth Housing and Redevelopment Authority, it is anticipated other cities would allocated CDBG funds. Danelle Wolf of Hennepin Technical Center offered private foundations would also be an avenue for fimding. Acting Chairman Edson commented the CDBG funds would not be disbursed Urdu all funding is secured by Hennepin Technical College. Jun Brandl of Wayzata School District Community Education Department sees an opportunity to move their adult programs to the training center, as it would provide a more neutral location and better fivability for the hours offered.. He looks forward to working with Hennepin Technical College on this venture. Acting Chairman Edson questioned if the training is an individualized precess. Mr. Jordan explained a participant in the training center does not pass until they can demonstrate they can perform spec job related tasks. The training center is set up with a "business" atmosphere. Ellen Leger of Hennepin Technical College stated she will be working with all Community Education Departments to provide participants with a certificate/diploma that would be universal and serve as a "bridge" from the training center to other learning environments' She is currently working with a network computer system called Signet Corporation network learning system) to provide dislocated workers with leammg assessment, testing, and end results. Charlie Warner, Housing Programs Manager for Community Action Suburban Hennepin CASH) presented Commissioners a pamphlet outlining their services. Laura Bond, resident of Kimberly Meadows, expressed her gratitude for the service of Homel* which is provided by Community Action Suburban Hennepin. A tenants' association was formed and is very successful. Barbara Kinney, resident of Plymouth, oecame acquainted with Homeline a year ago. She found it to be accessible and quick to take action. The people working at Homeline are tolerant and communicate at her level of understanding. Mr. Warner informed Commissioners Homeline also works with homeowners that face foreclosure. They do give priority to lower income people, and 70% of the people that we served are from lower income families. MOTION by Acting Chairman Edson, seconded by Commissioner Milner to recommend approval of the allocation of Fiscal Year 1994 Community Block Grant Funds. Roll Call Vote. 3 Ayes. MOTION carried unanimously. APPROVAL OF NMUTES MOTION by Commissioner Milner, seconded by Commissioner Warhol to recommend approval of the October 19, 1993 minutes. Vote. 3 Ayes. MOTION carried unanimously. 1994 ANNUAL BUDGET AND CDBG ADMINISTRATION COSTS Director Hurlburt gave an overview of the November 12, 1993 staff report. In the past, the City has only charged CDBG projects for direct expenses. This included staff salary and fringe benefits, but not the full cost of the City's overhead. Beginning with 1994 the City will be charging all costs using the Indirect Cost Allocation Plan. There is a limit of 20 percent of a community's allocation for overall planning and administration. The CDBG allocation is only $25,000 for 1994, but there are enough carry-over funds available if needed to use for 1994. The housing authority will have to consider other funding alternatives to cover 1995 overall planning and administration costs. Director Hurlburt explained should the total budgeted amount for administration of a CDBG activity not be expended that funding year, it would carry-over to be used for the same activity the next year. The activity would not lose those dollars. She stressed the 20 r percent planning and administration cap relates only to overall administration, not direct costs for specific CDBG activities. Director Hurlburt commented she and Assistance Finance Director Jacobson met with Chairman Crain on Friday, November 12 to explain the budget process. Staff has spent considerable time reviewing the proposed budget figures and she feels confident they are fair estimates. Acting Chairman Edson stated the housing authority needs to meet their obligations without inflating administrative overhead, which takes dollars away that could be used in the activities. Charlie Warner asked if the $500 is not used for administration of the Community Action Suburban Hennepin County, would they receive the carryover. Director Hurlburt replied if an amount is not expended by December 31, 1994 and Community Action Suburban Hennepin County requests funding for 1995, the unexpended 1994 amount would rollover for that project activity in 1995. Director Huriburt pointed out previous budgets did not show carryover of previous years unspent CDBG allocations. The 1994 budgets show all active CDBG activities including carryover. Acting Chairman Edson questioned if the $557,926.83 shown as the September 30, 1993 balance, is an excessive balance by HUD regulations. Director Hurlburt explained HUD regulations allow carryover of one and one-half times a community's annual allocation. The South Shore Park allocation of $140,000 should be expended in early 1994 and will resolve the issue of too much carryover. Director Hurlburt pointed out $50,000 has been budgeted for contingency activities. This allows Commissioners fiumding for a new program or activity that may surface in 1994 without the Finance Department having to change the budget. Director Hurlburt suggested Commissioners revisited the Senior Services Planning activity to clarify its objectives, and determine how the project would relate to planning studies already done by other agencies. Acting Chairman Edson stated Senior Services Planning was originated to have funding available for a program which would enable seniors to stay in their own homes. Director Hurlburt stated there are separate budgets for Section 8 and for Senior Housing. Further, the Section 8 budget now distinguishes between Plymouth's own certificates and certificates ported -in from other communities. The salary expenditure has been reduced slightly due to the increased staff effort that will be placed on several CDBG project, which would reduce the time available for Section S. If salary costs are as projected, the excess monies would be placed into the Section 8 operating reserve. Director Hurlburt went on to explain there were no changes in the Senior Housing budget from the budget provided to the Board in October. The line item for salaries, projected at 3,300, could very well be exceeded. There is no accurate way to estimate the salaries at this time. The $277,400 line item will most likely go into the construction fund to provide the remainder of the HRA's equity in the project. Any remainder will be used to begin to pay vent subsidies as residents begin to occupy apartments. In future years. up to 300,000 will be earmarked to pay rent subsidies. Acting Chairman Edson questioned the line item of contract services for $80,100. Director Hudburt replied it is for the existing contract with Walker Management. Acting Chairman Edson asked if a new activity was proposed would the housing authority be obligated to have a public hearing to reallocate funds. Director Hurlburt responded it is required to hold a public hearing to reallocated CDBG funds when new activities are created. MOTION by Acting Chairman Edson, seconded by Commissioner Warhol to recommend approval of the 1994 Plymouth Housing and Redevelopment Authority budgets. Roll Call Vote. 3 Ayes. MOTION carried unanimously. PLYMOUTH HOUSING ALLIANCE Steve Ludovissie presented some primary concenns/questions of the Plymouth Housing Alliance. Some of his questions were: Is a specific project driving the creation of the Plymouth Housing Alliance or is the Plymouth Housing Alliance being established as a long term vehicle for assisting the housing authority in the promotion of housing opportunities? What is the housing authority's objectives in creating the Plymouth Housing Alliance? What level of involvement does the housing authority want to take in the Plymouth Housing Alliance? What contributions does the housing authority want to make and what commitments or requirements will the Plymouth Housing Alliance be under if they accept the contributions? Has the housing authority made a decision to endorse the creation of the Plymouth Housing Alliance? How should any fimding shortfalls be handled? Acting Chairman Edson reiterated the original concept was for the Plymouth Housing Alliance would be a 501(cx3) non-profit corporation, with a Board of Directors approved by the Housing and Redevelopment Authority and the City Council. The Plymouth Housing Alliance would have Articles of Incorporation and Bylaws. At the time it went to j the City Council, the question of conflict of interest became an issue should City Council a or Housing and Redevelopment Authority members serve on the Plymouth Housing Alliance. At that time, the proposal was withdrawn, and the idea of having the Plymouth Housing Alliance serve as a subcommittee of the HRA was approved. However, Acting Chairman Edson now believes it to be more appropriate for the Plymouth Housing Alliance to be a non-profit 501(cx3) organization. Acting Chairman Edson commented financial commitment would have to be in the form of soliciting donations. It would be the responsibility of the Plymouth Housing Alliance to solicit needed donations. The housing authority has already committed $15,000 fian its First Time Homebuyer Program and purchased the lot for $27,000 and incurred other expenses related to the lot. Mr. Ludovissie explained the donations in the amount of at least $20,000 would have to be secured first before the Plymouth Housing Alliance could enter into a contract for construction of the home. If the $20,000 can not be raised, Mr. Ludovissie though it would not be prudent to move forward with the project. Mr. Ludovissie wanted to know if the Plymouth Housing Alliance would be a separate entity and if the Plymouth Housing and Redevelopment Authority and City Council would give them their endorsement. Acting Chairman Edson stated the housing authority's original intent for the Plymouth Housing Alliance was not for just one project, but it would continue with the possibility of one project per construction season. The reason the City Council and housing authority did not go with Habitat For Humanity was that they would only guarantee one project, and they could not guarantee placement of a Plymouth family in the home. City Councilmember Joy Tierney commented the Plymouth Housing Alliance would be a tremendous asset to the community, but she was concerned that there may not be available lots in Plymouth that are affordable. She suggested the possibility of buying lower priced existing homes and rehabilitating them. Acting Chairman Edson asked Mr. Ludovissie what he felt the Plymouth Housing Alliance needs for commitment from the housing authority. Mr. Ludovissie replied there was a need to arrive at a consensus of the role of the Plymouth Housing Alliance and the role of the Plymouth Housing and Redevelopment Authority. Also, he felt the political support from the Housing and Redevelopment Authority and the City Council is crucial for the Plymouth Housing Alliance to succeed. Acting Chairman Edson directed staff to place the appointment of the Board of Directors for the Plymouth Housing Alliance on the next City Council agenda. He commented that the Plymouth Housing Alliance should start soliciting donations to build up a reserve of 20,000 to $30,000 to allow Lundgren Bros. to begin construction. The $30,000 put in 0 by the housing authority should be recovered by the PI) mouth Housing Alliance to use as seed money for another project. Mr. Ludovissie requested that the Housing and Redevelopment Authc- ;ty look at the issues raised by the Plymouth Housing Alliance and respond to those issues at the December meeting. Acting Chairman Edson directed staff to prepare a statement indicating the Plymouth Housing and Redevelopment Authority would not expect the $30,000 to be returned, but rather be used as seed money for additional projects. He also directed staff to prepare a statement of relationship; affirmation of goals; and, commitment regarding use of proceeds from the land for the Plymouth Housing Alliance. He would like to see this as soon as feasible for the Commissioners to review. Meeting adjourned at 9:34 p.m. M