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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 06-20-1996A• MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY JUNE 20, 1996 A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chairman David Crain at 7:00 p.m. on Thursday, June 20, 1996. PRESENT.- Chairman David Crain, Commissioners John Edson, Brian Helniken, Mage McFarland ABSENT: Commissioner Pat Pielitring STAFF PRESENT: Executive Director Anne Hurlburt, HRA Supervisor Ed Goldsmith, Housing Specialist Milt Dale, Housing hum Mary Kay Olson, Housing Intern Gene Klatt, Clerk/Typist Susan Thompson OTHERS PRESENT: Sarah Miller, PTS Manager The order of the agenda as published was deviated from somewhat to accommodate the presence of Sarah Miller, Manager of Plymouth Towne Square. APARTMENT TRANSFER REQUESTS AT PLYMOUTH TOWNE SQUARE Sarah Miller, PTS Manager was present to provide an overview to the Board regarding recent apartment transfer requests and the resulting dilemma in handling these requests as mo provisions or policy guidance are provided in The Admissions and Occupancy Handbook for Plymouth Towne Square. Ms. Miller also proposed that she be given the authority to grant apartment transfers. Current policies do not make allowance for this. Ms. Miller states that .a vacancy for a large one bedroom unit exists due to the death of a resident earlier this mouth. This is a partiadarly desirable unit and much interest has been generated by tenants wishing to transfer to this unit. Sarah asked that she be authorized to offer the vacant large one bedroom unit to a single resident currently living in a two bedroom unit. This resident lost her spouse. Her income has subsequently decreased and the two bedroom unit is financially burdensome for bar. The transfer to a one bedroom unit would more adequately meet her fmancial nee& A second reshdent has also requested transfer to this unit for medical reasons. She is currently living in a handicap unit which has less padded carpet to accommodate the use of a wheelchair the tenant is not disabled). However upon review of the tenant's situation, sufficient cause has not been found to recommend transfer based on a medical preference. Supervisor Goldsmith stated that a formal Apartment Transfer Pblicy will be developed and presorted at the next HRA Board meeting for consideration. Commissioner Edson asked why a $200.00 fee is charged when an apartment transfer is made for financial reasons. Ms. Miller statedthat this is the average cost for cleaning, painting, Plymouth Housing and Redevelopment Authority June 20, 1996 p4p29 supplies, labor, etc. -to prepare a vacated apartment for ne-rental. When a tensor ganafers, an additional vacancy is created. In a voluntary transfer, the mom receives the benefit of the transfer and should reimburse the HRA for these coats. Chairman Crain asked what the impact of this particular move world be upon the tenant. According to Ms. Miller the tenant's portion of the rant will decrease fmnm 39% to 33% of her gross income. The sub_ idy portion will remain at $163.00 (tenant will save $55.00 per month). Commissioner Helmken asked what market rent is for the two bedmom/one bath unit. Ms. Miller reapoded that market value is $690.00 and a new tenam will come in at 525.00 (minimum). This amount may be more depending upon the tenam's income. Executive Director Hurlburt asked V Ms. Miller has checked with other private complexes to see what their policies are. Ms. Miller states that she has indeed done this and has found that 1) transfers are allowed, (2) tenants are charged for the transfer and (3) transfers are made on a "first c me fust served" basis. Council Member Black inquired if a smaller unit was vacated, would those on the waiting list then have this smaller unit available to them. [Yes] Executive Director Hurlburt asked if the tenant currently living in the two bedroom unit would accept the smaller handicap unit. Ms. Miller replied that everyone wants to move into the larger unit which is a very desirable unit due to its location and configuration. Supervisor Goldsmith attempted to summarize the issue by stating, "The issue boils down to do we wish b move voluntarily an individual from a larger two bedroom unit to a smaller unit? We give than this -hake so we can then rent the two bedroom unit to a couple. There is a reason for the HRA to offer an occupancy transfer." Director Hurlburt feels Ms. Miller's recommendation is good. Currently, the only real existing preference is to make two bedrooms available to couples. Director Hurlburt also stated that creation of a policy as we go forward would be beneficial. Chairman Crain reiterated that we will not force anyone to move. Director Huriburt stated that perhaps transfers should only be allowed for those moving from two bedroom to sae bedroom units (no transfer, for those already in a one bedroom unit). Commissioner Edson stated that financial preference should be the consideration. "I don't feel we should say you can never move from a small one bedroom to a larger one bedroom. In general terms it sounds like people would just 'like' to move, but have no real need to move." Commissioner Edson said, "We have only one criteria now." We have no other preferences. This is an economic issue. We take care of people with the economic issues first and take can of those with non -economic issues second." Commissioner Edson said that the subsidy issue needs to be addressed in the overall policy development. 29 Plymwum Housing and Redevelopment Authority inns it, 1996 PAP .30 MOTION by Commissioner Edson, secoeded by Chairman Crain to .approve the r000mnarndstion by Sarah Miller to offer the available large one bedroom unit fust to the single resident who currently occWies a two bedroom unit and has previously requested a transfer to a large one bedroom unit before offering the unit to current residents by date of transfer request. MOTION carried ummimarsly. PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORT Housing Manager Sarah Miller presented the PTS monthly report. She stated PTS has some credit coming from Walker Management which will offset some of the expenses. 30 ' Plymouth Housing and Redevelopment Authority June 20, 1996 Page 31 MIIVUTIS: There was an error noted in the Minutes of the May 16, 1996, meeting. Commissioner Edson was reported incorrectly as being both absent and present. He stated he was not present at that meeting, and the Minutes will be revised to reflect that. MOTION by Chairman Crain, seconded by Commissioner Pelstriog to approve the May 16, 1996, minutes as corrected. MOTION unanimously caned. HOUSING RFII<ABHITATION GRANT/LOAN PROGRAM Housing Specialist Milt Dale presented the Board with an overview of proposed changes to the HRA's Housing Rehabilitation Grant/Lam Program. Mr. Dale acknowledged the work of Housing Intern Mary Kay Olson in researching and drafting the proposed changes. Mr. Dale stated that the essential things the proposed changes hope to accomplish are to (1) maximize funds, (3) e0ze MPHA monies more effectively than in the past in cooperation with local lenders and (3) streamline the approval process and increase the number of clients we are able to serve. Mr. Dale requested conceptual approval of the proposed changes.. Chairman Crain commended Mr. Dale for his efforts and the "very good direction of the program". Chairman Crain expressed strong agreement with the principle of utilizing MFHA funding first and supplementing with City funds if the client's need exceeds the amount available from MFHA. He did, however, express some concerns about changing this from a gmat/ken program to a strictly loan program. Mr. Dale briefly explained the three basic MFHA programs: 1) Grant Lowest income hem owners (up to $12,000 income limit) qualify for the grant program. 2) Grant/Loon Up to $18,000 income clients are handled under a program which combines elements of both grant and loan. 3) Lean Under the low interest ken the loan is in effect until such time as the homeowner pays off the loan. Director Hurlburt asked what happens if upon sale of the home the proceeds are not enough to pay off the loan? Mr. Dale stated that attempts are made to avoid this happening at the time of qualifying the applicant. This situation has not occurred to this point and due to the improvements made properties have been appreciating. Chairman Crain questioned if the program's overall objectives would be hindered by malting the proposed charigos. Under the current program there is just one qualifying income level. 31 Plymouth Housing and Redevelopment Authority June 20, 1996 Page 32 Supervisor Goldsmith stated that it is the intent of these guidelines that the City remain involved. He felt that the proposed changes may result in the preservation of City money for use by other residents. Supervisor Goldsmith also noted that the HRA staff has reviewed other similar programs within the area (Bloomington, Hennepin County). In essence, the view is that the property value will increase until such time as the property is sold. Chairman Crain stated we are not saving money for the City. He felt there was no basis for charging interest for the loans. He is not convinced that the changes are necessary and repeated his concern that consideration need to be given to determine if the proposed changes are consistent with the goals set for the program. Commissioner Edson commented on the difficulty of fulling sources for these funds and expressed his desire that the City be able to continue to offer these programs to qualified citizens. He noted that the federal government requires repayment of other types of grants at a low interest rate (in the event of natural disaster, etc.). Commissioner Edson went on to say that consideration should be giver to requiring repayment of the principle portion. Chairman Crain noted that provisions for the programs have changed dramatically over the yam• Commissioner Edson asked how many people have repaid the program. Mr. Dale responded that approximately 20-25 people have repayment agreements in effect now (does not include those whose loans have been forgiven) and approximately 20 have repaid in the past. In 30- 40% of the cases there is no mortgage to be paid off (particularly in the case of seniors). Director Hurlburt stated that there seemed to be conceptual approval for all items with the exception of the final bullet (regarding repayment ). Mr. Dale felt he had received enough feedback to enable him to make specific guideline revisions. OF HOUSING INTERNS Supervisor Goldsmith introduced Housing Intern Mary Key Olson who has been in the Housing Department for the past seven months. Chairman Crain expressed appreciation on behalf of the Board for Ms. Olson's work. Supervisor Goldsmith also introduced Housing Intern Gene Klatt who has been working as an unpaid volunteer in the department for the past several months. According to Supervisor Goldsmith, both inters have owntributed a great deal to department projects. MANAGEMIM AGREEMENT FOR PLYMOUTH TOWNS SQUARE The Management Agreement between the HRA and Walker Management, Inc. will automatically be extended for an additional one year period at year's end unless specific action 32 Plymouth Housing and Redevelopment Authority June 20, 1996 Page 33 terminating the agreement is taken by July 3, 1996. Walker Management, Inc. wishes to see the agreement renewed. The HRA stats has performed a comparison of Walker's management services with those of similar senior housing complexes. In addition, evaluation of Walker's management performance in a number of areas has #Akan place: 1) Financial Services 2) Administrative Services 3) Quality Improvement 4) Plant Operations S) Community Services SUMMARY OF FINDINGS: Fees: Walker's fees are the lowest and within the standard used in the Twin Cities area. Services: Walker's services are over and above what would be considered standard. Management Conmetencv: Have found Walker's staff to be competent, and they have received high ratings based on resident survey. gereonnel Costs• Walker's personnel costs are considerably less than if the City of Plymouth replaced staff. If City work crews were replaced and contract workers were hired, costs could be similar - The City could manage PTS at costs similar to those of Walker Management; however, this would require greater day -today involvement of HRA executive staff staff . Supervisor Goldsmith stated that the "only downside found in the relationship with Walker k;e been on construction issues" (Walker Development arm). "Working with Walker Management has proven to be a very positive experience, but there is something to be desired with the Walker Development arm." There is continued ditiuoky m getting the siding replaced. The subcontractor states they are not responsible and that this is a design issue. Therefore, they will not replace any additional siding. Management's approach is to contact the geoenal contractor. This is a fairly significant issue which needs to be resolved. An additional issue is a problem with water infiltration into the garage. A portion of the work to correct this was done at no cost to the HRA. Purchase of gutters was authorized by the HRA last year. Supervisor Goldsmith is continuing to address this issue with Walker Development Some other less significant issues also exist. Thoconclusio n was that the services of Walker Management can not be exceeded. Their fees are reasonable. Additional services that they provide are not exceeded by other management compan:a s. Given all these findings and the impact of pursuing outside bids, it was recommended that the hoard allow the Walker Ma:agement Agreement to automatically renew for one additional year. 33 r Plymouth Housing and Redevelopment Authority June 20, 1996 Page 33 Commissioner Hehnken stated he does not believe the City should be in the property management business. In addition, stats time and talents can be better utilized in other areas. Commissioner McFarland was in agreement with Commissioner Hebaken. Commissioner Bdsoo agreed that since Walker has provided good management, we should stay with them. He would like to see a written report on the construction issues for the next meeting. He also suggested that perhaps Walker Management should be invited to come and address the HRA on this issue at the next meeting. Director Huriburt feels this report was very conservative in regard to the financial estimates of City costs to manage the property. Sup, rvisor Goldsmith commented that initially he was skeptical and felt perhaps othersy could manage PTS as well, but after the study he is convinced that Walker Management's services cannot be exceeded. MOTION by Commissioner Hebnken, seconded by Commissioner McFarland to automatically renew the Management Agreement with Walker Management, Inc. For one year after December 31, 1996, by taking no action at this time. MOTION Unanimously carried. PROPOSED PLYMOUTH ECONOMIC DEVELOP1VlOW FUND PROGRAM. GUIDELINES Director Hurlburt preratted the Board with the revisions of the Proposed PBDFP Guidelines. These revisions include the addition of written objectives and crncria. Sedlon IV. PLYMOUTH ECONOMIC DEVELOPNO W FUND POLICIES now includes additional criteria regarding loan size and interest rate. These changes were made to reflect the Board's comments and desires as stated at the Inst meeting. The next step in the process is for the Board to recommend approval to the Council. Chairman Crain suggested that LMI (referred to on page 2, M. PBDF PROGRAM OBJEC77VES AND CRIMMIA) be Mined. He asked that page 2, paragraph 2, sentence 1 be changed to read, "It is anticipated that the PBDF revolving loan fund will initially be funded by...".Finally, he felt that page 7, item 6 should read, "...the City Council may reverse a decision to approve or deny a loan...". Tire next topic of discussion centered on IV. PLYMOUTH ECONOMIC DEVELOPMENT FUND POLICIES, A. BUSINESS BLIGIBELITY: Director Huriburt stated that the infornation under this subheading defines "who" the businesses are that this program is targeting and "what they wish to accomplish". 33 Plymouth Housing and Redevelopment Authority June 20, 1996 Page 35 Commissioner McFarland questioned what would happen if one of the businesses to whom we Ind money fails. Director Hurlburt replied that this is money that is somewhat at risk. Commissioner Edson stated that he was confused by the eligibility requirements and the two bullets referring to statements regarding "credit worthy" versus "not -credit worthy". Director Huriburt said perhaps those two bullets should be deleted. Board members were in agreement with this recommendation and those two statements will be removed. Commissioner Helmken referred to Page 6., V. LOAN APPLICATION AND ADNMMTRA77VE PROCEDURES, A. HRA STAFF DUTIES and inquired if a lot of staff time would be allocated on administration of this process. Director Huriburt respond that due to the nature of the fund and the amount of money available, the "answer is no". Supervisor Goldsmith stated that private institutions will continue to be the primary source of funding with the City of Plymouth provioing a supplemental source of funds. Commissioner Helffdcen referred to Page 8, D. LOAN ADMMSTRATION, 1: "Where does the other 50% of the interest portion of loan payments SO" Director Huriburt answered that the remainder would go into the Revolving Fund. She stated that there are some costs Involved in the grant approval process (perhaps $3,000 45,000). Council Member Black asked if any particular segment of business is be targeted by the Guidelines. Director Hurlburt responded that due to the source of the money we are targeting low to moderate income people. Director Huriburt asked if the Board would like to see one more draft. Commissioners Helmken, Crain, and Edson would like to see the next draft. According to Director Huriburt there is no time Wait as to when this has to go to the City Council. She will make the requested changes right away and put the PEDFP Guidelines on the next agenda. 35 Plymouth Housing and Redevelopmmt Authority June 20, 1.996 Page 35 MHFA CAPACITY BURRING GRANT PROGRAM Supervisor Goldsmith has been notified that the MHFA has $150,000 in state funding available for approximately 15 local capacity building grants Supervisor Goldsmith stated that HRA staff have begurd' preparing an application to examine the relationship of affordable housing in Plymouth. MHFA staff feel it would be a good use of the grant funds. The applications ase highly competitive.. Supervisor Goldsmith mcommends that Board authorize staff to submit an application to the NWA on behalf of the HRA. MOTION by Commissioner Hehnkm to approve, seconded by Commissioner Edson. MOTION unanimously approved. TJLA.L]L,S. SECTION 8 SELF SUFFJCUNCY PROGRAM MONTl1Q.Y REPORT Supervisor Goldsmith stated that the T.R.A.I.L.S. program has met its participation goals for the year (total of 50 participants). 1996.1997 projections call for an estimated 6065 participants. OTHER BUSIIESIS Supervisor Goldsmith proposed that the July meeting of the HRA be rescheduled for Thursday, July 25, 1996 due to scheduling conflicts with the regular July 18th date. After some discussion the Board agreed to moot Thursday, August 1, 1996 (may be able to consolidate the July and August meetings with this schedule). There was also discussion regarding meeting location. Board Members would like to meet in a room other than the Council Chambers unless there is a public hearing. 17h'ec for Hurlburt will secure another meeting room. There were no other items of business. Chairman Crain adjourned the meeting at approximately 9:10 p.m. HRA/NIN/062096 35