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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 Jqe s ftawr oa Ss g OLVA91 Op L6, 197A mm vwwwr . acmcbttfam ly ttoustng , r If MW r + i lAnt i VjQ,r ! nywutb 8ectim 8 Ming Pair tit Mft So CUV of Plyowh gent to the attooms c mmol ng =& of zate atm the ,fair cogmt rmt ed3o&" fat Soctloh 0 bay MVION4 the data ad al =mad the p mbum with irr. 1s<le. Zfl that the Most imal y is fas antriozitat by use tuts c! ter ,tA$7Crpr! rests ths vuoOut 100f of their p ogom. Airwe the city does need 3 U 1 to by than 104,v this t pmopascly should be revl+e+w and'r if 'aimpplatop appwad by Y± Division iwo , rates thm Du. (go s st iwftfkd to 090 *c T#hutww that La watth. lhw is a very t?wcoay st*vA=dcn. t am aV39bgro OpIRI 1 11. g !t ®stun s asdan to you.. Am Eoarmd at ca: 5.6a plum= Milt Uals SAM Ci*M SAM Filo 5.6MOOit?S IMM 13,/10/78 18--, NOV 11.78 p jj .. . CIIIJ nil Ilpfi.ih.l{j a, 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 r.if!4./..•L•/i •. 1.I4%Lrt'. ..Mr a•r ._ .•i ` rrra r.•*.ry!•"s •'"' .Mrsr ,.I.•..r..x.::.,. .stir irrwyw: - , ' "",,.. . F. Y Von, [ 7b _ PPY,HDlX ].b r I' r % i• lialns of //1A: t' t, ASUGGESTEDF'O:dMA'r FOR DOCUMENTING NF•.'EDEU INCfdE;A,,;t~S yy IN MAXIMUM RENTS IN SECTION 8 EXISTING MOUSING PROGRAM -•=- t} P A v/ a I . trroprp6l•A,rra WIre Grorars0: `•" i 1,rA. NATURF OF KFOU _ST CURBPill' FAIR IMARrpr RCNTS 1 r itTypeOFVNIYdRrt,Y.g RpQUCSTgp PXnCW47AGg 1NCIMA$/•A tILY,XldT'1ffLi1'MRd t 14t raw,-ii*__ [iaratnr '- Noo Y, braWrOVER I brdrooro raw, f:on.3;leriLsir " r drdrparo" 2. Bodooms NO 6.drowm. - ., :.._ :ALL: • -i1• 74- 1'Kv Knr Nrcix;RrsS TO DATF_._._ _%• NUAIHr,R dr UNITS in ACC _~— ' • T'Yrn or vlrrrd - •-•------.. 1rVM'jr,R OF Cr.RT//IRA`I'r,A/ydUp t / ' riGrAr . l0.brrr;«onro _•"_"•"_ r.mH 7nTA4 y,,:D•droc a ". .. t;._• .- . _ — ... .. _"" - J.=-_,.._... •7rfTIi1,— 1 , . 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' y•+ a HIL _ 'fllt4 i; i•ji)errrylyd VYew_ t rlceuplyd V. x r b•)llt _ " ;' / t at )cur• 1. = w rt RburLatrt" ' _-! d Vacrnt )rcraplp) V r r lcr ay'rd r V.•ant rrrn r ( f L 91y •J r h ... qq/^ % Pr , 1 isd Vsra it I rr_pl.d Vat-rrt i Ir VII .... _ - 1.., ANAKkATIVF,ANlU/.Y.PLANAT1CiVOE'SUK'W"'Irl; _ y '' 1 I' r. r•l ".w•,-• s1.11;1:5 (!'letue ntlu h 71.•unl!•nn,rinnJ . t Ij r I i • ,,, r 4s'tr1. 1 tr 1 J>:'Ti`L,. ;•w a./'r r++.'711.n'.Y!rJI':•' .i!SRi7•r• F1r..Yi .t• ..r-' r '%' • . +•y.rl d 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 Madme is, im ftw4*0 gm 900 is oobmm* loxodo & not& imalyau civulcur x jaymj* swum 0 wxtu* ftL- nwkft a - -I OW Of P4V=tb SWt m thft 4UNtod wtoUl - mvow - I illp tm Of Ito atom aw Vdalaw fair woodat Xo* Aldlodk" *9 smatim 0 bdstiW- I bM x4dMAd do deft Md 4iscuseed the pmhum with mc. 1 416 1 and that tbb veoxmkt =Buy rents in *w mtt,%ft to we to Iatvv " sum pbudw =ms M. . lot at 16to OPPM Nam tie aifw am sot nerd spot i ONXW&" P*ll*Ad 242d# -A by"enijolk, this m g1 l w I dK%ad be sr ia" gnd,, if ftI=PdMmj, annWed by Y= I CW41 tatim dum 3WID. M* xagmt dm 4ppor jWdew to M, am elft"m tmt Is meth.. I& Is a vuy 7,Y docwwAmd Admi.golon- I am uscafto ftommilm tho S*M=f= 140 YOU. 27--j", ltd zWt Ade S. Gil oum b.of Kim S.GH-.(H*U;mm UA"