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HomeMy WebLinkAbout2022 02-14 CCM STUDY SESSION MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION FEBRUARY 14, 2022 VIA ZOOM CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Mike Elliott at 6:01 p.m. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan were present. Also present were City Manager Reggie Edwards, Community Development Director Meg Beekman, and City Clerk Barb Suciu. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Lawrence-Anderson stated she had questions about Consent Agenda Item 6f. Resolution Approving Lease Agreement with Phu Bia Produce LLC for City-owned property at 1350B Shingle Creek Crossing. She asked if they could move the item under 10. Council Consideration Items to become item 10b. Mayor Elliott confirmed they could move 6f. Resolution Approving Lease Agreement with Phu Bia Produce LLC for City-owned property at 1350B Shingle Creek Crossing to become 10b. Resolution Approving Lease Agreement with Phu Bia Produce LLC for City-owned property at 1350B Shingle Creek Crossing. City Manager Reggie Edwards stated Staff was not prepared to present on Consent Agenda Item 6e. Resolution Declaring a Public Nuisance and Ordering the Removal of Dead Trees at Certain Properties in Brooklyn Center, Minnesota. Mayor Elliott confirmed Consent Agenda Item 6e. Resolution Declaring a Public Nuisance and Ordering the Removal of Dead Trees at Certain Properties in Brooklyn Center, Minnesota could be removed. Councilmember Graves stated there have been updates on the Tenant Protection Ordinance since the last meeting. She noted she was not present at the last Council meeting due to illness. She stated there will be plenty of time to receive feedback from interested parties during Council Consideration Item 10a. An Ordinance Amending Chapter 12 of the City Code of Ordinance Regarding Tenant Protections and Approve a Resolution to allow a Summary Publication of the Ordinance, but she is not sure if the Council will be ready to vote on the item. Councilmember Graves asked if they could table the item after public input. 2/14/22 -1- Mayor Elliott confirmed they could table the item after public comment. He added they could move the item into the Work Session. He agreed they would likely want more time to consider the item after receiving public input. Councilmember Graves stated some parties would like to provide further input after the changes have been made to the Ordinance. Councilmember Lawrence-Anderson noted her appreciation of Councilmember Graves' input. As a matter of process, the Council utilizes advisory commissions on topics. Through their bylaws, the Housing Commission is supposed to provide input on all housing matters. The Housing Commission will be meeting the following night, and the Housing Commission Chairperson has not seen the most updated version of the Ordinance. Councilmember Lawrence-Anderson suggested they receive public input at the current meeting then table the topic. She explained she is the liaison to the Housing Commission and would be attending the meeting the following evening. MISCELLANEOUS COMMON SENSE RETREAT DATES Dr. Edwards stated a few dates have been suggested by Councilmembers for a retreat with Common Sense. He explained he wanted to confirm the dates. The potential dates for the retreat are March 12, May 7, August 6, and November 5, 2022. Mayor Elliott asked if all four dates would be needed for meetings. Dr. Edwards stated there need to be four meetings with Common Sense throughout the year. Mayor Elliott stated the dates work for him. He asked for all of the meetings to be put on the calendar. Councilmember Graves stated she does not see any obvious conflicts, but there is a potential conflict on August 6 for a family camping trip. Councilmember Butler added these dates work for her. Councilmember Ryan stated the dates work for him. He asked if the venue for the meetings would be the Heritage Center. Dr. Edwards stated they are currently planning on meeting at the Heritage Center. Councilmember Lawrence-Anderson noted she has already added the four meeting dates to her calendar. Dr. Edwards added Staff has been trying to keep the Councilmember's calendars updated with notes regarding if events are mandatory or optional. Councilmember Lawrence-Anderson thanked Dr. Edwards for his comment. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS Mayor Elliott suggested they rearrange the order of the items to account for presenters. Dr. Edwards stated only Staff is scheduled to present on the items. 2/14/22 -2- Mayor Elliott stated the first item, Continue Allocation of American Rescue Plan Act Funds, will take the longest. He added there are members of the public that would like to participate in the discussion of the third item,Heritage Center and Minnesota Orchestra Hall Concert. Mayor Elliott suggested starting with the item regarding Community Development Block Grant Funding Allocation Discussion. From there, they could discuss the Heritage Center and Minnesota Orchestra Hall Concert and then the item Continue Allocation of American Rescue Plan Act Funds. COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING ALLOCATION DISCUSSION Dr. Edwards introduced Community Development Director Meg Beekman to give the Staff presentation. Ms. Beekman explained the item is before the Council each year. She stated City Staff is seeking direction from the City Council on the allocation of 2022-2023 Community Development Block Grants (CDBG) funds. CDBG funds are provided by the U.S. Department of Housing and Urban Development (HUD) to help with community development activities that benefit low and moderate-income persons. The funds are primarily intended for brick and mortar improvements, as opposed to public service activities. Hennepin County receives CDBG funds directly from HUD. Brooklyn Center is considered a Direct Allocation City and is a sub-recipient of the funds through Hennepin County. Ms. Beekman stated The Federal Authorizing Statute for the CDBG program requires that each funded CDBG activity meet one of three national objectives: benefiting low-income persons, preventing or eliminating slums or blight, or meeting urgent community needs. At least 70 percent of the CDBG expenditures during the program year be used for activities benefiting low or very low-income persons. Ms. Beekman noted as part of the administration of the CDBG funds, Hennepin County adopts a 5-year funding plan, which further defines the priority needs of the program and clarifies what activities are eligible for funding. Last year Hennepin County adopted a new five-year funding plan. Overall, the priority needs are centered around continuing what's working while shifting the focus to preserving affordability and reducing disparities in housing stability. The priorities include preserving and creating rental opportunities, preserving and creating homeowner opportunities, housing opportunities for homeless populations, supporting education, outreach, and services, encouraging neighborhood revitalization, and stimulating economic development. Ms. Beekman explained because Hennepin County is responsible for the monitoring and reporting of the CDBG funds, the County oversees the use of funds within the consolidated pool. Cities that wish to diverge from the typical use of funds must seek permission from the County. Before 2018, cities were allowed to allocate up to 15 percent of their CDBG funding to public services. While Brooklyn Center regularly did so, other communities chose not to. In addition,the reporting requirements for the funds are onerous, and the County determined that it would be easier to pool the public service allocation and administer the distribution of those funds internally. 2/14/22 -3- Ms. Beekman stated CDBG funding allocations from July 1 to June 30 each year. The 2021-2022 CDBG funding round was allocated by the City Council in February 2021 and is set to run through June 30, 2022. $100,000 of the allocation was used for the Down Payment Assistance Program, and the remainder of the funds were allocated to the Hennepin County Home Rehab Program. These are programs that provide deferred or forgivable loans to low-income homeowners to make needed repairs and maintenance to their homes. Ms. Beekman showed a slide that depicted the County's CDBG 2019 budget allocations. While they do not yet know the exact amount of CDBG allocation for the next cycle, Staff has been advised by Hennepin County to use the estimate of$258,000, based on last year's allocation, to determine the allocation of funds. However, this allocation amount could be adjusted once HUD provides final amounts. Hennepin County receives the lump sum from HUD and determines the allocation among the participating cities based on a formula that takes into account population and need. Ms. Beekman stated one allocation option is the Hennepin County Home Rehab Program. As CDBG funds are the only source of funding to maintain the City's existing single-family housing stock, one option would be to increase the allocation of CDBG funds for this use. 86 percent of Brooklyn Center's housing supply is single-family homes, nearly all of which were constructed before 1975. Many of these homes need maintenance, and for low-income homeowners, the cost can be overly burdensome. Maintaining the City's housing stock through this program not only provides stable homeownership for low-income folks but also maintains an affordable housing stock for new buyers as well. Further, the waitlist for the program had continued togrow, and the Y p g current waitlist is 164. Due to restructuring at Hennepin County, the program can accommodate an increase in application processing. g Ms. Beekman explained another allocation option is the Down Payment Assistance Program. Brooklyn Center allocated $100,000 towards home buyer assistance each year with the 2020 and 2021 CDBG funding. The City has had four down payment loans closed. Due to the pandemic and the low number of homes available on the market, the program has had a slower than an anticipated start. Ms. Beekman added in 2020, the Council made changes to the program to expand eligibility to applicants who work in Brooklyn Center, have a family member who attends school in Brooklyn Center, own a business in Brooklyn Center, or reside in Brooklyn Center. The assistance amount was increased to $10,000. Ms. Beekman noted Staff has increased advertising of this program. Mailers have gone out to all rental properties in the City, there has been outreach to local businesses, as well as information shared with Brooklyn Center Schools. PRG, a nonprofit that helps prepare people for homeownership,has seen a 34 percent increase in calls from Brooklyn Center. However, only two additional loans have closed since then. The number of restrictions on this program due to it being federally funded, combined with the City's restrictions, and the limited supply of homes for sale in Brooklyn Center has continued to eliminate most applicants before they apply. 2/14/22 -4- Ms. Beekman added a review of the MLS listing for Brooklyn Center on January 31, 2022, provided that there were only four single-family homes and one condo actively available for purchase. Currently, the program has $215,000 funds available from 2019, 2020, and 2021 allocations. Ms. Beekman explained the recommendation from Staff is to discontinue the use of CDBG funds for the Down Payment Assistance Program and allocate the entire amount towards the Home Rehab Program due to the high number of applicants on the waiting list. It is recommended that the Down Payment Assistance Program remain in place,but instead be funded with TIF 3 housing funds rather than CDBG. Further, through the housing study that is currently underway, it is possible areas of need or programs may be identified. At that time, Staff may bring forward a request for reallocation of CDBG funding. Ms. Beekman stated based on City Council's direction, a resolution will be prepared and a public hearing will be scheduled for the February 28, 2022, City Council meeting. She added she was available to answer any questions. Councilmember Butler stated she supports the Down Payment Assistance Program, but it is difficult for people to find homes in Brooklyn Center currently. Therefore, she supports the plan as recommended by Staff Councilmember Ryan noted his support of the recommendation. Considering the demand for homes has been driving up the cost of homes, he asked if the income requirements for eligibility for the down payment assistance program are becoming an obstacle. The program is meant to support lower-income folks, but they need to ensure the participants can afford the mortgage. Ms. Beekman explained the income limits are determined by HUD. The idea is that folks do not spend more than 30 percent of their income on a mortgage. It is a balancing act to ensure they are not setting people up for failure. Councilmember Ryan stated Staff could contact HUD to receive feedback on the income limits. He noted his agreement for making the funds more accessible through the Home Rehab Program. Councilmember Graves stated she concurred with the previous comments. She agreed they could reassess the funds after the completion of the housing study. Councilmember Lawrence-Anderson noted her agreement with other Councilmembers' support of the Staffs recommendation. She thanked the staff for their thorough work on the matter. Mayor Elliott asked if they can use the existing funds for the Home Rehab Program then allocate the new funds for the down payment assistance program. It could be a way to use the stale money first. Ms. Beekman stated Staff could speak with Hennepin County about their preference for use of the funds. If the Council intends to continue funding the Down Payment Assistance Program and the Home Rehab Program, then Staff can work with the County to find the most efficient use of funds. Mayor Elliott stated there is no shortage of people trying to help with down payments. If the funds are not being utilized due to the market and the competition with cash buyers, he asked how the 2/14/22 -5- City can use its buying power to help potential new homeowners. He asked for Staff to explore that and return to the Council with their findings. Ms. Beekman confirmed they would look into the concept. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Hearing no objections, Mayor Elliott adjourned the Study Session at 6:40 p.m. STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned,being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. Attached hereto is a full, true, and complete transcript of the minutes of a Study Session of the City Council of the City of Brooklyn Center held on February 14, 2022. 2. That said meeting was held under due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its February 28, 2022, Regular Session. Barbara Suciu, City Clerk Mike Elliott, Mayor 2/14/22 -6-