HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 11-27-1978AGENDA
PLYM®UT HOUSING AND REDEVELOPMENT AUTHORITY
NOVEMBER 27, 1978
6:30 p.m.
I. Roll Call
11. Request for Fair Market Rent Increase for the Section.48 Program
ill. Request that City Council Lend Operational Funds to the Plymouth HRA
IV. Recall of Plymouth HRA Financial Statement Report
V. Greg Hanson of the Greater Minneapolis Metropolitan Housing Corp-
oration (MC)
VI. AdJournment
CITY OF PLYMOUTH
3025 #4ARBOR LANE., PLYMOUTH., MINNESOTA 55441
TELEPHONE (612) 559.2800
DATE.: November 21, 1978
MEMO
TO: Housing 6 Redevelopment Authority
FROM: Milt Dale
SUBJECT: Request for Fair Market Rent Increase for the Section 6 Program
The Plymouth apartment rents have consistently been above Fair Market
rents as established by HUD for Hennepin County. This fact has hind-
ered the Section 8 Rent Assistance Program in .our City inasmuch as
prospective renters have a difficult time finding eligible rental
units. Last year staff was able to obtain special permission from
HUD to run the Program with rents 10% and 2ft over Fair Market rents.
However in April of 1918 HUD published new Fair Market rents that
were about ;equal to our higher rates. Now with rising utility costs
uping rents even higher, the current Fair Market rents are no longer
practical for Plymouth. Presently Fair Market rents are as follows:
COMPARISON OF VARIOUS MONTHLY RENTS
Non -Elevator Apartment Bldgs. Elevator Apartment Bldgs.
Unit
Size
Fair
Market
10% over
fair Market
20% over
Fair Market
Fair
Market
10% over
Fair Market
20% over
Fair Market
1 OR 218 240 262 242 4266 290
2 OR. 264 290 1 317 291 320 349
3 OR 308 339 370 338 372 406
Presently staff is requesting a 10% rent increase for all `nits. The
Maximum rent increases that HUD will consider is up to 20.x. This great
an increase does not seem Justifiable now. (But the way rents have
been going . . . . ??:: )
Attachments:
1.'Note from Rod Johnson, HUD
2. Letter to Rod Johnson from staff, 11-13-78
3. Plymouth Apartment Survey Resblts, November 1978
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CITY OF
PLYMOUTR
November 13. 1978
00 Rog Johnson
HUD Area Office ACC Contract Number C-4070
6400 France Avenue South Project Number MN 46-E 170-002
Edina, rm Number of Units Assigned 72
Uear Nod,
To document our request for an overall increase in Fair Market rents in the
City of Plymouth i have included as attachments the results of rental surveys
done in.the City in June and November of 2978. It is plainiy evident from
appraising these surveys that if a Section 8 Rent Subsidy Program is to work
In Plymouth some adjustment to present Fair Market rents must be made. Only
152 two bedroom elevator units are presently under Fair Market rents and the
apartment owners of these units anticipate rent increases in January of 197'9,
There is no way the Section 8 Pro ram could operate here in that case. Also
very few vacancies exist in the City. In November of 1978 only 39 vacancies
or a 2% vacancy rate existed in the City.
A primary reason for the high rental rated in Plymouth 1s the relatively re-
cent vintage of the apartments in the City. Over 95% of the rental housing in
MTN, th has been built since 1.967. Hovever, on the other hand only three new
ngs have been built in the last year with most of the units constructed
between seven to eleven years ago. Consequently we are not eligible to utilize
recently completed construction rates to any extent. Many of the apartments
built in Plymouth have amenities such as tennis courts, indoor and outdoor
swimming pools, handball courts, etc. which also increase the rental rates.
while these amenities are not essential or evep necessarily desirable in .all
cases, they are expensive features whose cost most be bourne by all the renters
in the complex -- Section 8 Nrogram not withstanding.
Thank you for your prompt consideration of our request for rental rate increases
above Fair Market rents in the City of Plymouth.
Sincerely,
Milton L. Dale,
Plymouth NRA Enclosures
3026 HARBOR LANE, PLYMOUTH, MINNESOTA. 65441, TELEPHONE (0131659.2800
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CI:TY OF PLYMOUTH
3025 HARBOR LANE, PLYMOUTH, MINNESOTA 55441
TELEPHONE (612) 559.2800
DATE: November 21,. 1978
MEMO
TO: Housing 8'Redevelopment Authority
FFAOM: Milt Dale
SUBJECT: RECALL OF PLYMOUTH HRA FINANCIAL STATEMENTS
Moen and Penttila, the firm that prepared the HRA Financial state-
ment report, is requesting that HRA members return their copies of'
the report to -City Staff. They will then make such corrections and
deletions as; 'is necessary as per HRA Commissioners directive as of
August 28, 1978. The revised reports will then be resubmitted to
the HRA for your approval.
CITY OF PLYMOUTH
3025 HARBOR LANE, PLYMOUTH, MINNESOTA 5544.1
TELEPHONE (612) 559.2800
DATE: November 21, 1978
MEMO
TO: Housing 8 Redevelopment Authority
FROM: Milt Dale
SUBJECT: Greg Hanson of the Greater Minneapolis Metropolitan Housing Corp.(GMMHC)
At Chairman John Spaeth's suggestion, I invited Greg Hanson of the Greater
Minneapolis Metropolitan Housing Corp., a non-profit housing development
corporation, to attend our Monday meeting at 6:45 p.m. He will discuss
what part they have played in assisting non-profit groups to provide more
affordable homes in the metro area. They have been involved in a .number
of projects, ie in rehab of older homes, new construction for homeowner-
ship and new construction of rental dhits. The reason for his attendance
is to give HRA members an opportunity to "pick" the brain of a person
experienced in the affordable housing field as it relates to Plymouth's
situation.
Attachments:
1. Letter from GMMHC, 9-11-78
2. Excerpts from a GMNHC brochure
1'lie forester Mianeqfolls Metropolitan
Houming. Corporntlon
10 South 6th Street, Sam 2102
Ma nespolis, Minnesota 86402
September 11, 1978
Mr. James G. Willis
City manager
3025 harbor Lane
Plymouth, Minnesota 5S441
Dear Mr. Willis:
The Greater Minneapolis Metropolitan Housing Corporation is a.non-
profit housing developpsent corporation. As one of its on-going programs,
the Corporation assists other non-profit organizations, which want to
sponsor the development of rent assisted housing through the HUD Section
8 program. In this role GM1= provides technical assistance in the develop-
ment process and-lutesest-free loans for front-end development costs.-
If
osta.
1'f you know of any neighborhood, church, or civic groups which might
be interested io our program, please contact us. Alternatively, your
needs might be better met by creating a new non-profit corporation as
an affiliate of your Housing and Redevelopment Authority to undertake
such a project. This type of organization was used in Bloomington to
sponsor a project in which we were involved.
Currently, there are bonus Section 8 funds available. The Metropolitan
Councilwill be soliciting development propossle in the near future.
Additionally the Metropolitan Council has received a bonus allocation of
Community Development Block Grant Bunds, which could be sought to write-
down land costs to an afforable level.
I am enclosing our recent annual report, which outlines our
activities.
If you have an interest in discussing this program or if you have
any questions, please contact Greg Hanson, GNMHC's Director of Development,
at 339-0601.
Sincerely,
Charles R. Krusell.
Executive Director
GH/ j4
Enclosure
S. 1
CITY OF
PLYMOUTR
November 13, 1978
c/o Rod Johnson
HUD Area office ACC Contract Number C-4070
b400 France Avenue South Project Number MN 46-E 170-002
Edina, MN Number of Units Assigned 72
Uear Rod,
To document our request for an overall increase in fair MarKet rents in the
City or Plymouth 1 have included as attachments the results of rental surveys
done in the City in June and November of 1978. It is plainly evident from
appraising these surveys that if a Section 8 Rent Subsidy Program is to work
in Plymouth some adjustment to present Fair lUrket rents must be made. Only
1U. -two bedroom elevator units are presently under Fair Market rents and the
apartment owners of these units .anticipate rent increases in January of 1979.
There is no way the Section 8 Program could operate here in that case. Also
very few vacancies exist in the City. In November of 1978 only 39 vacanci s
or a 2% vacancy rate existed in the City.
A primary reason for -the high rental rated in Plymouth is the relatively re-
cent vintage of the apartments in the City. Over 95% of the rental housing in
Plymouth has been built since 1967. Hovever, on the other hand only three new
buildings have been built in the la : year with most of the units constructed
between seven to eleven years ago. Consequently we are not eligible to utilize
recently completed construction rates to any extent. Many of the aparbiients
built in Plymoutn have amenities such as tennis courts, indoor and outdoor
swimming pools, handball courts, etc.. which also increase the rental rates.
While these amenities are not essential or evep necessarily desirable in.all
cases, they are expensive features whose cost must be bourne by all the renters
In the complex -- Section 8 Program not withstanding.
Thank you -for your prompt consideration of our request for rental rate increases
above Fait Market rents in the City of Plymouth.
Sincerelyi,
Milton L. Dale,.
Plymouth HRA Enclosures
3025 HARer i LANE, PLYMOUTH, MINNESOTA 55441, TELEPHONE (612) 559-2800
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