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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-21-1997a PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY July 21, 1997 A meeting of the Plymouth Housing and Redevelopment Aw hority was called to order by Chair David Crain on July 21, 1997. at 7:03 p.m. PRESENT: Chair David Crain, Commissioners Brad Brown, John Edson and Pat F+elstring. ABSENT: Commissioner Brian Helmken. STAFF PRISM: HRA Executive Director Anne Huriburt. HRA Supervisor Ed Goldsmith, HRA Intern Andrea Brennan. OTHERS PRESENT: none. APPROVAL OF MINUTES Motion by Connnissioner Edson, seconded by Chair Crain to recommend approval of -the June 19. 1997 minutes. Vote. 4 Ayes. MOTION carried unanimously. PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORT Supervisor Goldsmith presented the Jure report for Plymouth Towne Square. Chair Crain asked about the situation with the roof Supervisor Goldsmith responded that Walker Management is looking for a solution. Raft informadou from the state building code department indicates that soffit ventilation in buildings with attic sprinklers, such as ITS, may be permitted. Walker is supposed to ga confirmation of this. Supervisor Goldsmith reported that the City finance department has not been keeping Walker Management up to date on imrestrneut earnings. There is $9.400 In investnum earnings to date, which has not been recorded in PTS's records. This amount puts the actual revenues in line with the year to date budget. The finance department will be providing quarterly information to Walker to update investment earnings reports in the future. Commissioner Pelstring asked V the option to terminate is open until September, Supervisor Goldsmith responded affirmatively. APPROVAL OF APPLICATION TO MINNESOTA HOUSING FINANCE AGENCY MHFA) FOR COMMUNITY REHABILITATION FUNDS HRA Supervisor Goldsmith provided an overview of the staff's recent submission of two furdiuwg proposals to the Minnesota Housing Finance Agency (MHFA). He explained that the applications were due on July 16. and therefore had to be submitted without prior approval from the HRA board. The first application is a request for $33.310 to assist in the purchase of Plymouth Housing and Redevelopment Authority July 21. 1997 page 19 two vacant lots in Plymouth for the development of affordable, handicap accessible single family housing. The HRA submitted this application in response to proposals from West Hennepin Community Builders and the Plymouth Housing Alliance that also include assistance from Interfaith Outreach and Community Partners, Community Action for Suburban Hennepin. and Miles Homes. The Housing Alliance book to use $25,000 previously authorized by the HRA, and Community Builders will use $20.000 in previously approved CDBG finds to leverage the MHFA funding. The second application is a request for $25,200 to assist a moderaoe-iocome family to demolish their existing substandard home and rebuild a new single family house on the same site. The total estimated cost of demolition and new construction is $107,000 for a 1,500 square foot dwelling. Staff is also recommending that the HRA offer the family a $10,000 deferred loan 30 years) to assist in the project. This funding provided by the HRA will leverage the MHFA fuming. Motion by Chair Crain, seconded by Commission: Edson to recommend retroactive approval for the submission of toe MHFA applications. Vote. 4 Ayes. MOTION carried unanimously. CITY APPLICATION FOR LIVABLE COMMUNITIR11 . DEMONSTRATION ACCOUNT GRANT FOR THE VILLAGE AT BASSETI' CREEK PROPOSAL HRA Supervisor Goldsmith spoke about the prospect of the City making application to the Metropolitan Council for finding available under the Metropolitan Livable Co nnounitles Demonstration Account. Funding is available for projects that demonstrate creative and innovative models of compact, efficient development by linking land uses and systems in terms of affordable, life -cycle, higher density housing combined with transit and employment. Staff is currently preparing an application that will include not only the proposed Village at Bassett Creek but also the broader surrounding arra. The City is proposing to move the Plymouth MetroLink Park and Ride ttaosit facility presently located on the other side of highway 55 to the parking lot of the shopping center adjacent to the Village at Bassett Creek development. The proposed grant would fund an effort to tit together the housing, commercial area, and transit with trails and walkways as a demonstration of suburban in -fill development. The proposal will go before the City Council at its July 23 meeting. [The City Council authorized submission of the application. It was submitted on August V] Motion by Chair Crain, seconded by Commissioner Edson to recommend to the Plymouth City Council that it take action to apply for Livable Communities Demonstration Account funding for the proposed Village at Bassett Creek development. Vote. 4 Ayes. MOTION carried unanimously. RESOLUTION APPROVING 1998 AND REVISED 1997 HRA BUDGETS Plymouth Housing and Redevelopment Authority July 21, 1997 Page 20 HRA Supervisor Goldsmith delivered a brief overview of the 1998 HRA prrgram budgets. The budgets are currently being processed by City Staff and they are scheduled to be submitted to the City Council by August 6, 1997. The Section 8 Housing Assistance Program has been affected by changes in HUD regulations that have made it easier for landlords to limit their participation in the program. The rental market in Plymouth is comirwally tiglaning, resulting in fewer clients who will be able to find and retain housing eligible for the program. Fewer clients will mean derreased administrative fuming from HUD. This is in addition to an 8 % percent reduction in the Administration Fees paid by HUD to the HRA for ailministration of the Program. We anticipate that the mwemtes will be adequate to cover program expenditures and break even for 1997. 1998 will be significantly different with a pro%ectad deficit of $14,794. A portion of this def h is attributable to the TRAILS allocation of $7,160 for the first six mombs of 1998. Other relatively miner adjustments within the 1998 Program budget include an increase in Postage (increasing from $1,500 to $2,300) and Priming and Publishing (from $630 to $1,300) due to budgeting for increased activity due to the opening of the Section 8 waiting list. Amore significant impact on the 1998 Section 8 Budget is the increase in the City's Data Processing Allocation from $3.664 to $13,020. The HRA General (Levy) Fund - The HRA is authorized under state statute to place a tax levy on property within the City with the approval of the City Council. The proposed 1998 levy of 398.676 is a modest 3.6 percent increase over the 1997 levy of $384.727. This increase is less than the 3.7 percent increase in property values due to new construction in the City or the 6.1 percent increase due to appreciation during 1997. The most significant item in the HRA General Fund budget is the rem subsidies at Plymouth Town Square ($270.000). A new budget item is the addition of Audit costs of $460 to cover the HRA General Fund's portion of the City audit, which had not been previously charged to the HRA. Employee Training is proposed to increase from $S00 to $2,600 to cover the cost of a 4 week Economic Development Finance Professional Certification Program taught by the National Development Council sponsored by the Minnesota Department of Trade and Economic Development. The City's Data Processing Allocation increased from $1,702 to 13.020 to provide additional and significantly upgraded equipment and services. The budget for 1997 also contains $12,000 for contractual services for special studies and activities. 9,871 is allocated to the CDBG Program fund from tax levy funds included in the 1998 budget for City administrative cost allocations that would not be reimbursed with federal funds. Staff have also discussed the possibility for the coming year of creating a new position for the HRA to increase staff capacity. However, the state's adoption of property tax reform legislation is libly to prevent the City from considering this addition. Executive Director Huriburt commented that it is likely that a total of only 2 new positions (in Park Maintenance) will be proposed for the entire City. The possibility of subcontracting out for short term professional services was discussed. Plymouth Housing and Redevelopment Authority July 21, 1997 Page 21 Supervisor Goldsmith remarked that he is projecting a revems: surplus of approximately 30.000 for 1997, creating an available fund balance of approximately $412.000 approximately 260.000 is needed for crib flow during the year. Commissioner Edson questioned the $28,200 increase in the Data Processing Allocations and remarked that he cannot justify it. Supervisor Goldsmith responded that two additional workstations had been added (TRAIIS stats and HRA Intern), for a total of 6. Executive Director Hurlburt added that the 1998 allocation for Data Processing is increasing in every department because the City is purchasing all new software this year for the Finance Department and next year the City is investing in new land management software. The City's computer system is going through a radical transformation - it is completely converting to all new software. and moving cemakung programs from the mainframe Unisys to the City's PC network. Edson commented that Section 8 ought to pay for only the software needed to tun the Program, and shouldn't be paying for Finance software out of the Section 8 budget since it is already paying for accounting services from HABCO. Supervisor Goldsmith commented that Section 8 uses the City finance system for daily activities, including the issuance of checks. HABCO tapes the information generated by the City system to produce the HUD financial reports. Executive Director Hurlburt replied that they presently do not have the allocation formulas but will get the information for the Board. Commissioner Pielstring asked what the percentage of statutory levy authority is. Executive Director Hurlburt replied that it is about 78 percent. S%qm visor Goldsmith added that in 1997 the two separate components of the levy were combined into one, creating a new maximum levy of .0144 percent of the City's tax capacity. Plymouth had not used the second component of the levy (for relocation and publicity). The new combined levy effectively increases the maximum amount that can be levied by the HRA. Commissioner Felstring asked whether the City Council has set any budget objectives. Executive Director Hurlburt replied that the Council has attempted to keep property taxes from going up in actual dollars paid by each homeowner adjusted for inflation since 1993. The growth in commercial and industrial property in the City has made this possible in previous years. This probably won't be possible next year because of the 1997 legislature's property tax reform legislation that has reduced commercial, industrial, and cental classifications relative to homestead classifications. Commissioner Pelstring inquired about the fee charged for the refinancing of tevemaue bonds. Supervisor Goldsmith pointed out that this amount is included in Account 7744, -Grantee award. The fee will only be available during the term of the outstanding bonds. The invent of this fiord is to provide direct assistance for affordable housing. Commissioner Edson inquired about the $12.000 allocation for special studies in the Contractual Services account. Supervisor Goldsmith responded that the HRA has not done much in the way of stud. The account has been used to fund the Hennepin Canty fair housing activities. An additional $1,700 was also used to support the home remodeling fairs 1-1 WE Plymouth Housing and Redevelopment Authority July 21. 1997 Page 22 the HRA participated in. Funds from this allocation were used to pay for publicity for the Northwest Hennepin Remodeling Fair and the St. Louis Park/Minnewnka/Hopkina remodeling fair. Commissioner Edson asked about the discussions with Walker Management about their 1998 budget. Supervisor Goldsmith responded that they haven't yet completed their 1998 budget process. Commissioner Edson asked if a rent increase would be needed for 1998. Supervisor Goldsmith responded that Walker had just started to work on the 1998 budget, but that they would be attempting to avoid a rem increase. Commissioners Edson and Crain voiced concern that replacement reserves and necessary maintenance not be sacrificed in order to avoid a rem increase. Chair Crain remarked that it is easier to raise reins one or two percent a year than five percent every five years. Supervisor Goldsmith responded that the replacement .reserves and maintenance budget would be analyzed to assure that they are adequate. Chair Crain raised the possibility of reevaluating subsidies. 27 people in the building now qualify for a very low income subsidy but are receiving only low income subsidies. Supervisor Goldsmith commented that the 1996 audit showed that the project has been generating cash. The HRA has not addressed the issue of what it wishes to do with this cash. Commissioner Edson suggested the HRA sit on this cash for a while, and use it down the road for subsidies instead of relying entirely on the levy. Commissioner Edson requested more information about the investment income for Plymouth Towne Square ($9.000 doesn't seem high enough for a $700.000 investment). Executive Director Hurlburt said they would get the information from the Finance Department. Executive Director Huriburt indicated that the City Council will hold its first budget meeting on August 76 with the second tentatively scheduled before august 20m with another one on August 2r. Commissioners Edson and Crain said they were not supportive of the budget. They have serious questions about the $28.000 increase in Data Processing. Motion by Commissioner Pelstring to table approval of the resolution approving the revised 1997 budgets and the 1998 budgets pending more detailed information on accounting procedures for investment income. information on computers. Input from Walker Management on rem increases and a maintenance analysis of Plymouth Towne Square Commissioner Brown). Commissioner Edson seconded the motion. Vote. 4 Ayes. MOTION carried unanimously. Motion by Commissioner Pelstring recommending that staff contum to develop additional revenue streams. Commissioner Brown seconded the motion. Vote. 4 Ayes. MOTION carried Plymouth Housing and Redevelopment Authority July 21, 1997 Pap 23 Commissioner Pelstring ruggested that HRA stats investigate opportunities for the HRA to provide the local contribution required for the Village At Bassett Creek Tax Increment Project. TRAQS MONTHLY REPORT HRA Supervisor, Ed Goldsmith presented the monthly outcome repos for th' TRAUB Program for Jun. 1997. OTHER BUSINESS HRA Supervisor Ed Goldsmith announced the reopening of the Section 8 waiting list, outlined two issues that will be brought to the Board at the next meeting before the waiting list is m opened. The first issue is to examine the possibility of re -instituting a preference for residents and persons working in Plymouth. Two years ago the residency preference was eliminated in order to attain a higher rating when applying for additional certifwma. Since then no additional federal funding has been available and there is nn prospect of additional funding in the foreseeable future. Also the State Human Rights Commission has issued a ruling that preferences exclusively for working persons is discriminatory. The second issue relates to reorga du* the pmferenm formerly mandated by the federal government.. These preferences can now be consolidated. Supervisor Goldsmith expressed the feeling among stats that there is merit in keeping the preferences because they are a way to determine need beyond dee income eligibility criteria. A public hearing on these issues will be hell at the HRA's August meeting, as required by HUD regulations. The meeting was adjourned at 8:55pm. S6, CITY OF PLYMOUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447 DATE: August 14,1997 for Housing and Redevelopm,= Authority of August 21,1997 TO: Anne Hurlburt, Execudve Director through Edward Goldsmi Supervisor FROM: Milt Dale, t Housing Specialist SUBJECT: Admission Preference to F:7nouth Towne Square for Occupants of Properties Condemned as Hwardous by the City of Plymouth Earlier this sunnier heavy rains caused considerable damage to the home of an elderly couple who are presently on the waiting list to move into Plymouth Towne Square. The husband (age 86) has lived in Plymouth since 1%1 and his wife (age 64) since 1968. Their home on Medicine lake was built in 1915. According to the City Assessor, the structure is valued rt $39,100 while the land is valued at $50,000. Primary damage to the hc-rse was the loss of most of its north foundation wall when the earth along that portion of their house caved in. A neighbor provided several steel posts to keep the house stable temporarily. However, the Building Department may consider condemning the property if more permanent improvements are not made as soon as possible. The couple is eligible for the City's Housing Rehabilitation Loan program assistance that could cover up to $10,000 of the cost of necessary repairs to their home. However, given the age and condition of the structure additional work would also be needed to meet program requirements. Also, it is likely that upon sale of this property, new owners would demolish the current building and construct a new home. From initial cost estimates, by contractors who have inspected the premises, repairing the north wall alone and adding bracing to the other walls would cost approximately 515,000. Based on this cost, it appears all uderests would be best served if the homeowners could vacate their residence promptly, have it demolished and sell the property. Should the HRA Board wish to assist this couple in relocating to affordable housing in Plymouth, it would require that the HRA Board either provide a waiver for this couple or enact a new policy allowing Plymouth residents in similar circumstances to be put at the top of the waiting list at Plymouth Towne Square for the next available rental unit. Currently, however, there are no vacancies nor have any tenants given notice to move, according to Melody Burnham, apartment manager• Therefore, the couple will rued to vacate their home as soon as possible and live in interim housing until a vacant unit is available at Plymouth Towne Square provided permanent repairs are not made to the foundation walls. Currently. the Admission and Occupancy Handbook for Plymouth Towne Square states: Piynouth Towle Square is open to all Indiwlduds whose Head ofHousehold or Sponse Is at least SS years and older regardless of intone. However, preference will be given to those Individuals whose Head of Household or Sponse is at least 62 years of older, Annual Income falls below the Very Low and Low Intone limits or is o resident of the City ofPlymmith Should an additional preference be approved for individuals living in properties condemned as hazardous, the following should be added to the Admission and Occupancy Handbook for Plymouth Towne Square: A Conation Preference will be given to those eligible applicants who have been ordered by the City of Plymouth to vacate property condemned as hazardous, who do not have other options for affordable permanent housing available to them, in accordance with the other pte&retices enumerated above. Applicants eligible for the Condemnation Preference are to be added to the wa. gag list at any time, regardless of whether the waiting list has been closed to new applicants. Applies= with a Condemnation Preference will be offered the first appropriate apartment that becomes available, according to the date and time of their application to be considered for a Condemnation Preference." I recommend that the BRA Board adopt the atteebed resolution amending the Admission and Occupancy Hamdbook for Plymouth Towne Square to establish a Condemandon Preference for ndnbd n for eligible appRemb who have been ordered to vaeste property coodesened a hmrdoas by the City of Plymouth . Attachments: 1. Draft Resolution 2. August 1, 1997 letter from Fred Moore, Director of Public Works hm%me=U056%MemoS14 HRA RESOLUTION 97-09 AMENDING THE ADMISSION AND OCCUPANCY POLICY FOR PLYMOUTH TOWNE SQUARE TO ESTABLISH A FIRST PRIORITY PREFERENCE FOR ADMISSION FOR ELIGIBLE APPLICANTS WHO HAVE BEEN ORDERED TO VACATE PROPERTY CONDEMNED AS HAZARDOUS BY THE CITY OF PLYMOUTH WHEREAS, the City of Plymouth may condemn property that is considered hazecdous to health and safety and order the occupants of such housing to vacate the premises; and WHEREAS, such action can cause a seven hardship for such persons in finding decent affordable replacement housing; and WHEREAS, such persons may be eligible for housing at Plymouth Towne Square; and WHEREAS, the Plymouth Housing and Redevelopment Authority wishes to assist such persons in obtaining decent affordable replscement housing by extending a preference to such persons who are otherwise eligible for admission to its Plymouth Towne Squaw Apartments; NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FORTHE CITY OF PLYMOUTH, M_ NNESOTA, that the Application process section $:the Admission and Occupancy Handbook for Plymouth Towne Squaw be amended by inserting the following language after the list of five preferences on page 3: A Condemnation preference will be given to those eligible applicants who have been ordered by the City of Plymouth to vacate property condemned as hazardous, who do not have other options for affordable permanent housing available to them, in accordance with the other preferences enumerated above. Applicants eligible for the Condemnation Preference are to be added to the waiting list at any time, regardless of whether the waiting list has been closed to new applicants. Applicants with a Coedemnstion Preference will be offered the first appropriate apartment that becomes available, according to the date and time of their application to be considered fon a Condemnation Preference "