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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 08-23-2018APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY August 23, 2018 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Robert Huddleston, and Marty McCarthy ABSENT: Commissioners Jeff Kulaszewicz and Matthew Plec STAFF PRESENT: Housing Program Manager Jim Barnes and Office Support Representative Tina Beckfeld OTHERS PRESENT: Ms. LaDonna Hoy and Mr. & Mrs. Daryl Miller 1. CALL TO ORDER Chair Michelle Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:19 p.m. 2. PUBLIC FORUM Chair Soderberg opened the public forum. Ms. LaDonna Hoy, representing Interfaith Outreach & Community Partners, PRISM, JCA, and the Housing Justice Center spoke to the HRA members regarding the 2040 Comprehensive Plan. Ms. Hoy stated she was aware the HRA did not have an official role in the adoption of the 2040 Comprehensive Plan but she expressed her appreciation for their role and influence the HRA plays in maintaining a healthy and diverse housing market. Ms. Hoy submitted comments and suggestion to the board encouraging the city to use every opportunity proactively to respond to the housing crisis. Ms. Hoy requested the HRA thoughtfully consider their recommendations and continue to ensure safe, stable housing for Plymouth residents. Housing Program Manager Jim Barnes stated staff will review the submitted recommendations and if changes are made to the 2040 Comprehensive Plan they would be presented at the Planning Commission’s public hearing later this fall. Chair Soderberg thanked Ms. Hoy for her submittal and closed the public form. 3. CONSENT AGENDA A. Approve HRA Meeting Minutes for July 26, 2018. B. Plymouth Towne Square. Accept Monthly Housing report. Approved Minutes Plymouth Housing and Redevelopment Authority August 23, 2018 Page 2 C. Vicksburg Crossing. Accept Monthly Housing report. D. Community Development Block Grant. Approve the 2017 Annual Performance and Evaluation Report (CAPER). Commissioner Huddleston made a correction to the July 26, 2018 minutes noting on page 2, to change the year from 2009 to 2005. The correction will be made to the minutes. MOTION by Commissioner McCarthy, seconded by Commissioner Huddleston, to approve the consent agenda. Vote. 3 Ayes. MOTION passed unanimously. 4. GENERAL BUSINESS A. 5070 Holly Lane North #6. Request to remove restrictive covenants. (Tabled from July 26, 2018 meeting.) Housing Program Manager Barnes added an email from Ms. Bank’s realtor and asked that it be added to the staff report. Housing Program Manager Barnes gave an overview of the staff report. Commissioner Huddleston asked for clarification of the income requirements to qualify with the restrictive covenants. Housing Program Manager Barnes stated a household of 1-4 would qualify with an income of $75,440. Qualifying income for a family of over four would be adjusted higher. Housing Program Manager Barnes said some of the information from the realtor’s email added tonight was inaccurate. Staff will reach out to the realtor to clarify. Commissioner McCarthy questioned what is being asked of the HRA. Housing Program Manager Barnes stated the request is to remove the restrictive covenants from the property. Commissioner Huddleston asked if the HRA had its own appraisal done for comparison. Housing Program Manager Barnes replied staff chose not to engage in a desk review of the appraisal because the appraised value was well within the range of what a buyer with an income of $75,440 could afford. Chair Soderberg went on record stating while Ms. Miller’s situation is unfortunate, she feels the property should remain affordable by keeping the restrictive covenants. Ms. Bank’s could potentially make more money on the sale of the property but Chair Approved Minutes Plymouth Housing and Redevelopment Authority August 23, 2018 Page 3 Soderberg reminded the Millers that she also was able to take advantage of our programs. Removing the restrictive covenants would be setting a very dangerous precedent. Mr. Miller, representing his daughter Ms. Banks, stated the unit is currently listed above the appraised value but is under the price of a recent sale of a comparable property. He feels the fair market value could be $239,900 based on the sale of the comparable property which just sold. Housing Program Manager Barnes stated the HRA is not contesting the fair market value, the appraisal, or the comparable value. Staff believes a buyer could be found to qualify at fair market value with the restrictive covenants in place. Mr. Miller stated their frustration with the unstable situation. He stated his daughter is asking for relief from the restrictive covenants so she can sell her townhouse at a higher price. Mr. Miller pleaded her hardships asking the board to consider that when deciding if they will remove the restrictive covenants. Chair Soderberg asked how much Ms. Bank paid for the townhouse originally. Mr. Miller stated $198,500. Chair Soderberg stated if the townhouse sold at $230,000 that would be a substantial gain, not a hardship. Mr. Miller stated the townhouse was overprice at $198,500 when she bought the property because the realtor took advantage of her by representing both the seller and buyer. He asked who protected Ms. Bank in the First Time Homeowner process. He is asking for a level of fairness in how she is being treated. He feels there is a lack of flexibility in determining fairness in this case. Chair Soderberg said she understands the situation but also stated the HRA cannot right the wrongs of others using our programs. Commissioner Huddleston agreed the HRA cannot address the issue that she may have been taken advantage of by other parties. He also said Ms. Bank benefitted from our programs because she was able to qualify for the initial purchase of the property which she may not have been able to do without the interest free loan from the HRA of $25,000 and $15,000 from Hennepin County. Mrs. Miller asked if the HRA could help identify qualified buyers to help sell the property. Approved Minutes Plymouth Housing and Redevelopment Authority August 23, 2018 Page 4 HRA Manager Barnes answered currently there are not many applicants interested in the First Time Home Buyer programs but staff is willing to share marketing information from the real estate agent to those applicants. Chair Soderberg suggested the realtor reach out to local support agencies and share the marketing information to them. Commissioner McCarthy stated he doesn’t feel the program is failing anyone. Ms. Bank will be making money on this property selling it at the fair market value. The program is designed to help qualified applicants to purchase their first home, not necessarily to make a lot of money on it. Housing Program Manager Barnes reiterated there are two separate issues in play here. The financial assistance programs from the HRA and Hennepin County with their own terms of repayment. The second issue is the program that applied restrictive covenants for affordable housing when the first buyer purchased the property from the developer. There are only five years remaining on the original twenty years. The request is to remove the restrictive covenants from the second program only. Mr. Miller said he was still in a quandary as to how buyers would qualify with the restrictive covenants. MOTION by Chair Soderberg, seconded by Commissioner Huddleston, to deny removal of the Restrictive Covenants from the property located at 5070 Holly Lane North, #6, Plymouth, MN. Roll Call Vote. 3 Ayes (Chair Soderberg, Commissioner McCarty, Commissioner Huddleston), MOTION passed unanimously. B. Garland Lane Property. Discussion. Housing Program Manager Barnes gave an overview of the staff report. MOTION by Commissioner Huddleston, seconded by Chair Soderberg, to table the discussion of the Garland Lane property. Vote. 3 Ayes. MOTION passed unanimously. C. Plymouth Towne Square. Window/siding project – additional architect service (INSPEC). Housing Program Manager Barnes gave an overview of the staff report. MOTION by Commissioner Huddleston, seconded by Chair Soderberg, to approve the request for additional service from Inspec in the amount of $12,000. Vote. 3 Ayes. MOTION passed unanimously. 5. ADJOURNMENT Approved Minutes Plymouth Housing and Redevelopment Authority August 23, 2018 Page 5 MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:20 P.M.