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.
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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
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August 23, 2018
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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.
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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
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MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:20 P.M.