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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-26-2018APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY July 26, 2018 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Robert Huddleston, Jeff Kulaszewicz, Marty McCarthy, and Matthew Plec STAFF PRESENT: HRA Manager Jim Barnes, HRA Executive Director Steve Juetten, and Office Support Representative Tina Beckfeld OTHERS PRESENT: Council Member Judy Johnson, Jill (Miller) Bank, and Mr. & Mrs. Daryl Miller 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:02 p.m. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes for May 24, 2018 B. Plymouth Towne Square. Accept the monthly housing report. C. Vicksburg Crossing. Accept the monthly housing report. D. Vicksburg Commons. Approve amended and restated master subordination agreement and Estoppel Certificate. MOTION by Commissioner Kulaszewicz, seconded by Commissioner Plec, to approve the consent agenda. Vote. 5 Ayes. MOTION passed unanimously. 3. NEW BUSINESS A. 5070 Holly Lane North #6. Request to remove restrictive covenants. Housing Program Manager Jim Barnes gave an overview of the staff report. He clarified restrictive covenants are put in place to ensure affordability of the property going forward and reminded the board there is no standard restrictive covenant. Commissioner Kulaszewicz stated historically the board has removed some restrictive covenants. Housing Program Manager Barnes stated yes, restrictive covenants were removed because they met the requirements a waiver or removal based on the policy in place. In Approved Minutes Plymouth Housing and Redevelopment Authority July 26, 2018 Page 2 one instance for extenuating financial circumstances, and two for the market controlling the affordability of those properties. Housing Program Manager Barnes explained that the First Time Home Buyer program is totally independent of the restrictive covenants. Barnes also stated the income requirements are lower for the First Time Home Buyer program. The Board discussed the homeowner’s current situation, market values against terms of the restrictive covenants and how this would affect the sale of the property. HRA Manager Barnes indicated that staff’s opinion is the restrictive covenants would not prohibit buyers from buying at fair market value. Ms. Jill (Miller) Bank thanked the board for allowing her to come before them to state her case. She addressed the board asking for the removal of the restrictive covenants so the property may be sold at fair market value. She reviewed her circumstances as stated in the email to the board dated July 16, 2018. Mr. Daryl Miller, spoke on behalf of his daughter Ms. Bank. Mr. Miller stated that there is a dilemma created by combining the First Time Home Buyer Program with the restrictive covenants. Mr. Miller feels the restrictive covenants unnaturally suppresses the price of the home therefore at time of sale the property gains no appreciation to reinvest in a different property. Mr. Miller noted that he heard today that the HRA has two separate issues. One, to provide assistance needed to get into a property, and two, to provide affordable housing. Based on information provided by Ms. Bank’s realtor, home prices in Plymouth are higher than some neighboring communities making it hard to find affordable housing in Plymouth. Mr. Miller thanked the board for their time. The board expressed their empathy and appreciation to Ms. Bank for coming before the board to provide her input and give clarification. Chairman Soderberg stated the HRA is funded by taxes paid by residents of the city and the HRA’s obligation is for affordable housing at the forefront. When the HRA uses taxpayer money to provide affordable housing it is our obligation to keep that money for affordable housing. Discussion from the board members revolved around the market value price set by the realtor and the market comparison. Council Member Johnson and Commissioner Huddleston gave several examples of two bedroom, two bath townhomes recently sold in the area and felt the price set by the realtor at $260,000 was not what the market would bare. The market analysis provided by the realtor was for a three bedroom, three bath unit which is not accurately comparable. Approved Minutes Plymouth Housing and Redevelopment Authority July 26, 2018 Page 3 Council Member Johnson and Commissioner McCarthy wondered how the program is trapping Ms. Bank into a scenario of failure. Housing Program Manager Barnes stated the HRA does not dictate the sale price of the property. Commissioner Plec asked if the restrictive covenants prohibit the homeowner from making a profit. Housing Program Manager Barnes answered no. Council Member Johnson asked how the realtor determined the value of $260,000 based on recent sales in the area of a comparable value and felt the price is problematic. Ms. Miller stated that the unit was on the market in 2005 and had no offers in 445 days. Housing Program Manager Barnes stated he knew the unit was on the market in 2006 but was unaware that the property was for sale in 2009 noting it was during the depressed housing market. MOTION by Commissioner Kulaszewicz, seconded by Commissioner McCarthy, later rescinded by both, to table the discussion and have the realtor supply a more accurate market comparison; list the property for sale for 60 days to determine interest in the property; and reconvene to discuss. No vote taken. Chairman Soderberg was uncomfortable with the motion of requiring the property to be put on the market for 60 days. Commissioner Huddleston suggested having an appraisal done on the property. Housing Program Manager Barnes stated if the HRA decides to remove the covenants, a condition would be put on the restrictive covenant that it would be removed at closing. Mr. Miller thanked the board again for their time, thoughtful discussion, and listening to their concerns. Council Member Johnson assured Ms. Bank and her parents that the HRA does not want people to be trapped by our programs. Careful review and changes will be made by the board if deemed necessary. MOTION revised by Commissioner Kulaszewicz, seconded by Commissioner McCarthy, to table the discussion to remove the Restrictive Covenants from the property located at 5070 Holly Lane North #6, Plymouth, MN until Ms. Bank’s realtor provides a new market analysis comparing said property to comparable 2 bedroom, 2 bath homes Approved Minutes Plymouth Housing and Redevelopment Authority July 26, 2018 Page 4 recently sold in the area. Once information is provided and reviewed, staff will call a special meeting to resume the discussion. Vote. 5 Ayes. MOTION passed unanimously. B. Vicksburg Crossing. Consider replacement of all original washing machines. Housing Program Manager Barnes gave an overview of the staff report. Commissioner Kulaszewicz asked how old the washing machines are. Housing Program Manager Barnes answered they are original to the building, so they are 11 years old. They are lower-quality washing machines. Commissioner Huddleston asked if the bids included the cost of installation. Housing Program Manager Barnes answered yes. Council Member Johnson asked about a warranty. Housing Program Manager Barnes answered there is a one year warranty. Commissioner Kulaszewicz asked about the life expectancy as is relates to the replacement schedule. Housing Program Manager Barnes stated the replacement schedule will use five to seven years for replacements of the washers. Council Member Johnson asked how many have been replaced already. Housing Program Manager Barnes answered 20. Council Member Johnson asked if the HRA could use Met Council rebate programs. Housing Program Manager Barnes stated the Met Council rebate programs do not apply to commercial applications. Commissioner McCarty asked if there were any rebates available through Xcel or CenterPoint Energy. Housing Program Manager Barnes answered not that he is aware of - staff will look into it. MOTION by Commissioner Huddleston, seconded by Commissioner Plec, to replace 77 washing machine units at Vicksburg Crossing using the low bid of approximately Approved Minutes Plymouth Housing and Redevelopment Authority July 26, 2018 Page 5 $39,705.13 submitted by Lowes Home Improvement Store. Vote. 5 Ayes. MOTION passed unanimously. 4. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:12 P.M.