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HomeMy WebLinkAbout2023.07.18 HCMMINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION APRIL 19, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Staff Liaison Jesse Anderson at 7:10 p.m. MEETINGATTENDEES Commissioner Michael Donnelly Commissioner Gretchen Enger Commissioner Jerry Gayflor Commissioner Elizabeth Riel Commissioner Hashep Seka-Nygaard — Not Present - Unexcused Commissioner Florence Williams — Not Present - Excused City Staff present: Staff Liaison Jesse Anderson and City Council Liaison Kris .Lawrence - Anderson. Also present: None. WELCOMEAND INTRODUCTIONS The Commissioners introduced themselves. APPROVAL OFAGENDA This item was not addressed. ELECTIONS — CHAIR Staff Liaison Jesse Anderson gave an overview of the responsibilities of the Chair and Vice Chair. The Chair is a meeting facilitator, and Vice Chair serves in the Chair's absence. The Housing Commission doesn't tend to have many items to vote on except for recommendations to the Council. The Commission also reviews appeals, but there have only been two in the past 14 years. The Commission has also recommended clean-up events to the Council. The Housing Commission meeting is less formal than a City Council meeting. There was a motion by Commissioner Gayflor and seconded by Commissioner Riel to recommend Commissioner Enger as the Chair. Commissioner Enger accepted the nomination. The motion passed. 4/19/23 -1- Councilmember Lawrence -Anderson offered to be a resource for Chair Enger. She noted a number of programs have arisen from ELECTIONS —VICE CHAIR There was a motion by Commissioner Gayflor and seconded by Chair Enger to recommend Commissioner Donnelly as the Chair. Commissioner Donnelly accepted the nomination. The motion passed. SUMMARYOFHOUSING COMMISSION D UTIES This item was addressed during item Elections — Chair after the item Approval of Agenda. ELECTIONS — CHAIR This item was addressed after the item Approval of Agenda. ELECTIONS — VICE CHAIR This item was addressed after the item Elections — Chair which was addressed after the item Approval of Agenda. DISCUSS RENTAL LICENSING ORDINANCE - RENTAL PROGRAM OVERVIEW Staff Liaison Jesse Anderson gave an overview of the rental program. There is a four -tier structure of licensing in Brooklyn Center. A license is required when a unit is not owner -occupied. After a license is granted, there is a required inspection. The tiered structure is performance -based, and each tier has different requirements. A license cannot move up to another tier unless they meet all of the current tiers requirements, have no violations, and successfully complete an inspection in a particular timeline. Mr. Anderson explained system was last modified in 2010, and it is intended to promote quality assurance. Additionally, it is meant to reward landlords for quality rental services and to provide extra attention to lower -performing rentals. Chair Enger asked if all rentals start at the 6-month level and work their way up. Mr. Anderson said that is not the case, and that is part of the discussion at hand. Chair Enger asked for more information on the violations related to police calls. Mr. Anderson explained validated police calls are an example of what can be used to count violations. Different amounts of validated police calls count against license levels in different ways. The validated police calls haven't impacted properties in a while, mostly because those with several validated police calls are already at the 6-month license level. Vice Chair Donnelly stated it is unfair to punish project management companies with large properties based on only a couple of bad actors. Also, there are only two main property management companies in Brooklyn Center. There has to be a way to shut down properties managed by companies with consistent issues. His concerns relate to both tenant protection efforts 4/19/23 -2- and maintenance. Mr. Anderson explained it is uncommon for the property management companies to have several code violations during each six-month period. Vice Chair Donnelly stated the tiered program has to have more consequences for consistently low -performing apartments. Mr. Anderson stated the license doesn't get renewed if they don't pass an inspection. He added there aren't high -quality materials required by the ordinance. For example, the carpet doesn't have to be stain -free or new because those things don't pose a hazard. Similarly, a kitchen cabinet that isn't fixed well is still fixed; craftmanship is not a consideration. Brooklyn Center uses the international property maintenance code. Commissioner Gayflor suggested a property with consistent code violations have repercussions for the management company and/or not renew the license. Mr. Anderson stated the property can obtain their license if they fix the violations before the inspection. Vice Chair Donnelly stated that doesn't seem to be true because the same property continues to receive multiple complaints from tenants. Commissioner Gayflor provided some examples of concerns expressed by property owners. There have been complaints about the dumpsters not being emptied regularly. Mr. Anderson confirmed it is a violation, but the violation is resolved by emptying the dumpster. Commissioner Gayflor stated there are issues with potholes at certain properties. Mr. Anderson stated it is the role of the City to maintain City roads, and they would repair potholes if notified. If it is a private road, it is the responsibility of the property owner. Chair Enger asked how violations are discovered by Staff. Mr. Anderson stated Staff receives complaints from community members and also does regular property inspections. Vice Chair Donnelly asked if Staff has specific numbers on the violations by each property. Mr. Anderson explained the violations are included in each City Council packet. Licenses are handled on a rolling basis, so there are renewals each Council meeting. Vice Chair Donnelly stated the same properties that are having repeated violations are the same ones that are retaliating against tenants and committing other tenant right violations. Councilmember Lawrence -Anderson noted the Council has been considering how long a property can be as a Type IV before they don't receive another renewal. There is another category of tenant protection rights. Councilmember Lawrence -Anderson explained the topic to be discussed based on the current agenda relates to initial licenses. As of right now, an initial license is automatically a Type II license. However, there have been issues with a newer rental property called Sonder House, but they only required inspections every two years. On the other hand, putting a new rental as a Type IV automatically could be cost -prohibitive to promoting new rentals in the City. The Housing Commission is meant to discuss the initial license process. 4/19/23 -3. Mr. Anderson added Staff has been directed by Council to assess additional tenant protection right issues, and that will be relayed to the Housing Commission in the future. Staff is working on collecting survey results regarding the 2022 tenant protection ordinance. Mr. Anderson noted code enforcement and licensing non -renewal can be another discussion. DISCUSS RENTAL LICENSING ORDINANCE - DISCUSS ORDINANCE LANGUAGE RELATING TO INITL4L LICENSE TYPE Mr. Anderson stated new licenses are considered, "Properties that have legally not been required to have a rental license due to new construction or a change from owner -occupied to rental will qualify for a Type II License. Properties found operating without a valid rental license from the City or failing to meet City Code requirements or that have been the subject of enforcement actions such as criminal prosecution or civil penalties for violation of this Chapter, will only qualify for a Type III License." Mr. Anderson explained new rentals cannot receive Type I licenses or a Type IV license. Mr. Anderson noted there are different rules for multi -family new construction. Rental license inspection is done during the Certificate of Occupancy inspection with the Building Official. The Building Official goes into every unit and common area and does an inspection for building code and maintenance code violations. In order for a Certificate of Occupancy to be issues all of the violations need to be corrected. And exception is that exterior items that cannot be completed due to weather or does not impact the interior occupancy of the property. There has been no single- family new construction converted to rental. Mr. Anderson stated Sonder House has 127 units and has a Type II rental license. When they received their license, there were zero violations. Their renewal is due. Sonder Point has 143 units and also has a Type II license. They have not paid for their renewal fee, and when they received their license, there were zero violations. A rental property must submit renewal fee 90 days before the rental expiration date. An expired license doesn't require that the landlord evict the current tenant. Instead, it would not allow them to add a new tenant. Mr. Anderson noted Sanctuary's current license is a Type I, and they have received 27 violations. As of March, they hadn't paid their renewal fee. It is very few violations for a property with 158 units, likely because it is a highly -regulated senior living facility. There were 6 police calls for service, and they don't count domestic violence calls or medical calls. Mr. Anderson added Maranantha has 34 units, and they had 16 violations going into their latest license. They have a Type I license. Maranantha is also a facility for seniors. Mr. Anderson explained the Housing Commission could consider reducing the initial license to a shorter tier. However, after the 1-year period, it is likely that the property will be able to obtain a 3-year license based on property code violations. Alternatively, they could add a new provision to the ordinance that if property management continues to allow the property to have excessive police calls, criminal activity, disturbances in violation of Chapter 12-911, additional requirements can be made to the license such as 24-hour security, security cameras, lighting improvements, speed bumps, parking attendant, and so on. 4/19/23 -4- Councilmember Lawrence -Anderson noted the item was brought to the Council due to issues with Sonder House. She asked if it is legal to have a provision related to quality of life. Another option for the initial license is to grant a 1-year license for the first three years. The City knew Sonder House had some red flags, and the Commission could consider an ordinance that would trigger requirements if the rental is shown to be low -performing. She added it would be difficult to quantify quality of life. Mr. Anderson explained when the ordinance was original adopted, the soundest legal approach was to base the tiers on something like police calls. A certain amount of qualified police calls after a time period during the licensure could trigger additional requirements. Councilmember Lawrence -Anderson suggested using the inspection time to identify problem units. Mr. Anderson stated there is a separate ordinance that handles individual units and is done with a crime prevention specialist. Councilmember Lawrence -Anderson stated once the new crime prevention specialist is hired, they would be willing to discuss that ordinance further with Mr. Anderson. Vice Chair Connelly asked what power a property manager has to remove a problem tenant. For example, if a majority of the police calls are tied to one unit, it is unfair for the property manager to be penalized due to the actions of one tenant. Mr. Anderson stated anyone below Type I licensure is required to use the Crime -Free Housing Addendum where they could terminate a lease if there are certain police interactions. Vice Chair Connelly asked how long it would take for the tenant to leave in that scenario. Mr. Anderson stated the landlord has to provide a 30-day notice before filing the eviction notice, but he wasn't aware of the timeline for the courts to handle the eviction. The timeline likely varies. Chair Enger pointed out code violations are another consideration on top of police calls. New construction properties aren't as well-done in comparison to previous decades. She stated she would like to know what other cities are doing with new construction rental licenses. The six- month check -in after an initial license sounds like a good idea, but there likely won't be too many maintenance violations after only six months. Mr. Anderson agreed maintenance violations wouldn't show up at six months into a new construction. He noted there is a difference between maintenance and code violations. Any time there was a report of a code violation, the City goes out to inspect the property. However, there isn't an inspection related to police calls prior to the end of the two-year license for new construction rentals. Vice Chair Donnelly asked if the City can require rental properties have security cameras and the like before allowing tenants. Mr. Anderson noted Staff and the Council are actually talking about making similar security efforts as a prerequisite for rental properties. Councilmember Lawrence -Anderson pointed out the City doesn't want to discourage any rental properties. However, it is still a consideration. Certain properties may be working to improve their tenants after initially getting the building filled by increasing credit checks, background 4/19/23 -5- checks, and the like. The six-month quality of life check -in could happen to intercept issues with security. From there, the landlord could work with City Staff and law enforcement to create a mitigation plan. Vice Chair Donnelly agreed a six-month check -in on a two-year lease could help prevent future police calls and decrease the burden on the property manager to implement requirements at a lower licensure level down the line. Mr. Anderson stated the City can require a background check, but they can't require what the property manager does with it. The City could require a mitigation plan and include solutions to some of their issues. However, there is a limit to what the City can require, and the City Attorneys would have to look into that for them. Vice Chair Donnelly added it would be beneficial for the property manager to make use of the background check. Councilmember Lawrence -Anderson explained the property managers tend to learn the hard way once they have tenants that aren't paying their rent or are increasing the violation count. If the City gets market -rate housing, there needs to be more provisions in place to prevent another situation like Sonder House. She noted she had a lot of notes and feedback for Sender House when the development was considered by the Council such as playground placement and cameras, but it wasn't enough apparently. Chair Enger asked if the City can require certain security efforts of newly -built rentals such as security personnel and cameras. Mr. Anderson stated the City Council has to be careful about why they deny a project, because there is risk of the City being sued if there is insignificant or poor reasoning. Mr. Anderson stated he will look into an option for a 6-month check -in for new licenses and report back to the Housing Commission with his findings. Vice Chair Donnelly asked if the City can't require a new construction rental have certain security measures, how can they do it after six months. Mr. Anderson stated the City would have a basis after the six -months if there are issues that arise during an inspection. Mr. Anderson stated there is a certain privately -owned site that has started the steps to have multiple housing units intended for veterans. That development could only be considered on the basis of maintenance and code requirements. Chair Enger stated the Council can make certain requests of a property owner, but they don't have to follow through with it. Councilmember Lawrence -Anderson explained the ordinance could have a provision that states there will be a six-month check -in to review service calls and other aspects of an inspection. At that time, the City could require measures be taken by the property manager. Mr. Anderson reiterated he will look into an option for a 6-month check -in for new licenses and report back to the Housing Commission with his findings. 4/19/23 -6- WANGSTAD COMMONS OVERVIEW Staff Liaison Jesse Anderson gave an overview of Wangstad Commons. The development has already been considered by the Planning Commission, and the next step is for the City Council to review the project. The Housing Commission has the opportunity to provide additional comments for Council consideration. Chair Enger asked for the location of the proposed project. Mr. Anderson stated the location is near the Fire Station on 61st Avenue and Brooklyn Boulevard. It is also near the Sanctuary. Mr. Anderson stated the Council is acting on the preliminary and final plat, a site and building plan, a Planned Unit Development (PUD) amendment, rezoning, and a comprehensive plan amendment. He showed images of the proposed site. The City purchased the four lots 2023-2019. There was a previous preliminary development agreement, but the developer did not follow through. Mr. Anderson explained JO Properties proposed a project for 83-88 units of multi -family housing in 2020. In February 2020, the City Council issued letter of support for HC grant application, and EDA issued Preliminary Development Agreement. During May 2020, City Council issued a letter of support for Metropolitan Council grant application. Then the applicant received a grant from Metropolitan Council in June 2020. Mr. Anderson noted a project update is provided to City Council in March 2021, which contemplated further reduced 54-units of multi -family. Revised plans were provided, which outlined expanded green space and community amenities and unit mix is updated to increase likelihood of MHFA funding. In June of 2021, the EDA approved a resolution supporting use of Tax Increment Financing (TIF) an in advance of the developer's application to MHFA. An Option Agreement and term sheet were also approved by resolution and the applicant began community engagement process with LISC. Then in June 2021, the applicant received word from MHFA that initial application was unsuccessful. Mr. Anderson stated the developer resubmitted an application to MHFA in July 2022. In December 2022, the developer received approval of the MHFA LIHTC application for Wangstad Commons project with 54 units. Mr. Anderson stated in 2023, the applicant began regular meetings with City Staff to revise plan sets according to new Unified Development Ordinance (UDO). In March 2023, a Work Session was help to work through certain financing gaps and direction was requested as to options for minimizing financial project gap. Based on the feedback provided, Staff has begun preparing a formal TIF agreement based on revised terms and creation of a new TIF district. Mr. Anderson showed the site and building plan. All 54 of the units will be at affordability bands between 30 and 60 percent Area Median Income (AMI). There will be a mix of two-, three-, and four -bedroom units. There will be around 9 units with three bedrooms and five units with four bedrooms. 4/19/23 -7- Councilmember Lawrence -Anderson pointed out it is difficult to find larger rental properties such as the three- and four -bedrooms. Also, the AMI guidelines will help lower -income families access the larger units. Commissioner Riel asked for more information on the AMI. Councilmember Lawrence -Anderson explained if the AMI is $100,000, the units in the development would have to be less than $60,000 for all units. Affordable units are considered as costing less than 25 percent of one's take-home pay. Deeply affordable units are those 30 percent AMI or lower. The household size also plays into the calculations. Mr. Anderson explained there are also different metrics and applications of the calculations when it comes to the various housing programs in Brooklyn Center and Hennepin County. Vice Chair Donnelly asked if Mr. Anderson has a breakdown of all housing in Brooklyn Center based on AMI percentages. Mr. Anderson stated there are few income -restricted units in the City, but the rest are market -rate housing. There is also naturally -occurring affordable housing (NOAH) in Brooklyn Center. However, he doesn't know everyone's rent prices, so he would be unable to compute City-wide metrics. Mr. Anderson asked for the Commissioners to provide him with any comments they would like to see included in the recommendation to City Council regarding Wangstad Commons. Chair Enger asked for updates on two houses near the Legion. Mr. Anderson explained the developer ran out of funding to complete the project, and he cannot receive funding unless he shows completion of the project. The funder is trying to foreclose the property. The land was previously owned by the Economic Development Authority, and the current owner was supposed to add in parking, landscaping, infrastructure, and the like. Councilmember Lawrence -Anderson asked if the City could buy back the property and put in the necessary infrastructure to then sell it at market value. Mr. Anderson stated there would still be issues with a foreclosure, and it would make more sense for the City to get involved after the foreclosure process is complete, but that will take around one year. Chair Enger pointed out the Opportunity Site's entrepreneurial market has been cut in half. She asked if there were additional updates. Mr. Anderson added there were also supposed to be four residential buildings, two of which were affordable, but there will now only be two buildings, one of which is affordable. Once ground is broken. It will take about two years to build. Vice Chair Donnelly asked if the developer has any concerns about the happenings with Shingle Creek. Mr. Anderson stated the developer doesn't have any concerns with Shingle Creek. The developer recently built a similar project in Columbia Heights that filled up very quickly. The Columbia Heights building is called The Ratio. Councilmember Lawrence -Anderson noted she toured The Ratio, and it is very well-done. CITY COUNCIL LIAISON REPORT 4/19/23 -8- City Council Liaison Lawrence -Anderson suggested she skip the report for the current meeting. The Housing Commission can determine what items she should present to the Housing Commission at the next Housing Commission meeting. OTHER BUSINESS -FUTURE DISCUSSIONITEMS FOR HOUSING COMMISSION There was no other business addressed by the Commission. ADJOURNMENT There was a motion by Commissioner Riel and seconded by Vice Chair Donnelly to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 9:16 p.m. Chair E ger 4/19/23 -9- MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION MAY 16, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Enger at 7:15 p.m. MEETINGATTENDEES Chair Gretchen Enger - Present Vice Chair Michael Donnelly - Present Commissioner Laura Freund - Present Commissioner Jerry Gayflor - Present Commissioner Elizabeth Riel — Excused Commissioner Florence Williams —Absent City Staff present: Staff Liaison Jesse Anderson and City Council Liaison Kris Lawrence - Anderson. Also present: Latrecia Mayo WELCOME AND INTRODUCTION Staff Liaison Jesse Anderson introduced himself and the rest of the members present introduced themselves. APPROVAL OFAGENDA There was a motion by Commissioner Freund and seconded by Chair Enger to approve the agenda as submitted. The motion passed. NEWNEIGHBOR PROGRAM- OVERVIEW Staff Liaison Jesse Anderson gave an overview of the New Neighborhood Program. He showed the Commission the bags handed out and the included materials. The bags are usually delivered in the summer to a list of new residents. NEWNEIGHBOR PROGRAM— 2022 DELIVERYSTATUS Mr. Anderson pointed out there were issues with the 2022 deliveries as there weren't meetings for a while and the Commission was lacking a Chair for several months. He provided a list of highlighted areas that haven't received deliveries through the New Neighbor Program. Mr. Anderson asked for each Commissioner to send him a photo of themselves to put on an identification badge so the Commissioners can deliver the bags with some identification. Ultimately, it is up to the Housing Commission if they want to catch up on 2022 deliveries or start 5/16/23 4- DRAFT fresh with 2023 deliveries. There are usually about 200-300 deliveries each year. It is up to the discretion of the Commission if they want to continue the program. Vice Chair Donnelly stated they could deliver the 2022 bags of the missed neighborhoods and all of the 2023 neighborhoods. Mr. Anderson confirmed he could generate a new list and combine the two. Chair Enger asked how many households were missed from the 5 neighborhoods. Mn Anderson stated he only has a list of neighborhoods and not individual residences. City Council Liaison Lawrence -Anderson stated the program started when she was on the Housing Commission. It started because the City Council hadn't given any directives to the Housing Commission, and City Council Liaison Lawrence -Anderson stated she suggested the program to the Commission. Once she became a Councilmember, Staff took over the responsibility of generating a list. City Council Liaison Lawrence -Anderson suggested each Commissioner take home a bag and determine what is missing or what is outdated. Then they can discuss potential changes at the next meeting. Chair Enger asked if it is too late to deliver to the 2022 homes. City Council Liaison Lawrence - Anderson stated it is the decision of the Housing Commission. City Council Liaison Lawrence -Anderson stated there are materials on Three Rivers Park District, voting, local parks, local restaurants, and more. The Implementation Committee application can be removed. Other options could include garbage removal or contact information for Excel Energy. Commissioner Freund stated she likes the program and would like to continue it. Commissioner Gayflor asked if the bags should be sent out now or wait for material review. Chair Enger stated they should go through the bags and discuss the contents at the next meeting. Mr. Anderson stated the next meeting could be an opportunity to sort through the bag materials and review a newly generated list. After that meeting, he could gather updated materials and choose a time to assemble and distribute bags. City Council Liaison Lawrence -Anderson noted they used to team up in pairs to deliver the bags. One would be a driver and one would get out to deliver the bags. The deliveries usually occur from about 6:00 p.m. until dusk. There are notes the Commissioners can leave with the bag if no one answered the door. Chair Enger asked if the deliveries were made on the weekend or the weekdays. City Council Liaison Lawrence -Anderson stated she preferred to deliver on weekdays, but it is the decision of the Commission. 5/16/23 -2- DRAFT Mr. Anderson stated he would prepare a list that includes sales since April 2022. He asked if he should combine the sales with the outstanding 2022 deliveries. Chair Enger stated she wants to do the missed neighborhoods, but she doesn't want it to be awkward. City Council Liaison Lawrence -Anderson suggested the Commissioners explain they are new to their roles and are catching up on the backlog. Mr. Anderson confirmed he would generate the list of sales since April 2022 and combine it with the outstanding neighborhoods from the 2022 deliveries. Chair Enger asked how the neighborhoods have been divided. Mr. Anderson stated the Commissioners can claim the neighborhoods they want to do on their own time. Alternatively, the Commission can all complete their deliveries on the same night after dividing up the list. CITY COUNCIL LIAISON REPOR T City Council Liaison Lawrence -Anderson asked what the Housing Commission wants her to report on and in how much detail. Staff Liaison Jesse Anderson noted there were surveys collected regarding the tenant protection ordinance that will be provided to Council at an upcoming meeting. Mr. Anderson stated the licenses for new construction rental properties that they discussed previously will be on the upcoming agenda. He just received an email from the attorney regarding the options brought up by the Housing Commission. City Council Liaison Lawrence -Anderson added the Council is looking to create a grant process policy to ensure the grants are in line with City strategies and priorities. Grants help to kickstart programs, pay for one-time projects, and ultimately offset taxpayer dollars. City Council Liaison Lawrence -Anderson stated the traffic enforcement ordinance will return to the Council shortly. It is a recommendation from the Implementation Committee that would restrict the option for law enforcement to pull over vehicles for certain reasons. It is a fairly controversial topic. The Implementation Committee is also working to implement an alternative response program. There are options to fund a Brooklyn Center program or to partner with Hennepin County to collaborate on the program. Vice Chair Donnelly asked for an update on Opportunity Site Phase I and Hwy 252. City Council Liaison Lawrence -Anderson stated the public comment period for Hwy 252 will be ending shortly. The Council has provided comments that reflect their distaste for the impact on local homeownership and the Brooklyn Center tax base. They requested alternative options be considered. Vice Chair Donnelly asked if the tax impact has been calculated. Mr. Anderson stated there have been calculations by Public Works about the loss of property value but not necessarily on the annual tax impact the City would see. 5/16/23 -3- DRAFT City Council Liaison Lawrence -Anderson pointed out the Hwy 252 Task Force has done an exceptional job educating the Council and the community on the impacts of potential projects. Vice Chair Donnelly noted the last update he heard about the Opportunity Site was that some of the residents would no longer be built. Mr. Anderson stated that decision happened back in October 2022 when the term sheet was approved. It is probably a couple of years out for the Council to consider additional development. The goal is still to break ground in 2023. Mr. Anderson stated two units were approved in October 2022 along with a convention center, entrepreneurial market, a daycare, and barber shop. The market became somewhat smaller over time as well. In early 2023, the investment strategy of the developer has had to change because of the high interest rates and the like. Staff showed the Council the potential for a bonding scenario related to tax increment funding. Mr. Anderson noted another change is the ownership of the entrepreneurial market. Alatus would retain ownership. The mission would stay the same, but bonding would decrease by $3 million and put less risk on the City. Mr. Anderson added the hope of the developer is to still break ground in 2023. He explained how Columbia Heights recently used TIF funding to build infrastructure and residences then gave a portion of the building to the City to be used as a City Hall. City Council Liaison Lawrence -Anderson explained the Opportunity Site has had a number of changes over the years, and she is hopeful the project will work out. The market -rate housing will appeal to a different demographic that likely has more discretionary income. Affordable units will be added to the Site down the line. Mr. Anderson added the plan is to have over 600 units that are considered affordable once all of the residential buildings are completed. It depends on if the developer can get additional funding. The first building with almost 300 market -rate units is a two-year build. The first couple of buildings are doing the heavy lifting for infrastructure for future development. Commissioner Gayflor noted St. Paul is still paying for road changes similar to the Hwy 252 project. City Council Liaison Lawrence -Anderson stated the Council is trying to avoid that exact same problem. Vice Chair Donnelly asked if the project can still move forward if both Brooklyn Center and Brooklyn Park reject the idea. City Council Liaison Lawrence -Anderson stated the Council has asked the same question, and the attorney is looking into options. The project wouldn't begin for a few years at the earliest. Commissioner Gayflor asked if MnDOT or the City has more power. Staff Liaison Anderson stated the Council doesn't have a clear answer on that yet. City Council Liaison Lawrence -Anderson pointed out anyone can provide comment to MnDOT regarding the Hwy 252 project while the public comment period is still open. It closes May 26, 5/16/23 -4- DRAFT 2023. Chair Enger asked what the timing is for Wangstad Commons. Mr. Anderson stated Wangstad Commons had a recent site and building plan approval. There will be a TIF agreement returning to the City Council in early June. The goal is to break ground by the end of summer. Vice Chair Donnelly asked if Wangstad Commons is the same site as the project for veterans. Mr. Anderson stated the veterans housing is a separate project. The Council has approved for the developer to seek out grants, so the funding has yet to be secured. Mr. Anderson noted Wangstad beat out Project for Pride in Living (PPL) for the LIHTC funding. Project for Pride in Living is planning to reapply for the funding. City Council Liaison Lawrence - Anderson stated the City has tried to maintain its commitment to PPL while supporting a veterans facility down the line. Chair Enger stated she would be interested in hearing from speaker with Sutterberg and MHA. She added she read through a packet that included short-, mid-, and long-term goals for the City. Mr. Anderson stated the recommendations had been presented to the Council, and he could request the same presenter to speak to the Housing Commission. Chair Enger asked if the recommendation of hiring a Housing Coordinator will happen. Mr. Anderson stated it was in the budget request but it did not make it into the final budget. Chair Enger noted some of the recommendations and resources would be beneficial to be posted on the City website. She asked for Mr. Anderson to forward the packet to all members of the Housing Commission. City Council Liaison Lawrence -Anderson explained the Urban Land Institute did an intensive look at Brooklyn Center, and there is a lot of valuable information within the document. The Housing Commission can dive into the information and make recommendations to the Council. Vice Chair asked if the City has any resources to promote home ownership. Mr. Anderson stated there is a down payment assistance program. The funding source was recently modified. He explained the program to the Commission. Mr. Anderson stated the survey results regarding the tenant protection ordinance will be presented to the Council at the next meeting. The submissions were anonymous and completed by landlords. There is an opportunity to survey tenants down the line as well. OTHER BUSINESS - FUTURE DISCUSSIONITEMS FOR HOUSING COMMISSION City Council Liaison Lawrence -Anderson stated there wasn't a motion to approve the previous minutes. Mr. Anderson stated both sets of minutes can be approved at the next meeting. Mr. Anderson noted the State might adopt a tenant protection ordinance which may be up for discussion in the future. Minneapolis has a seven-day notification period, St. Louis Park has a fourteen -day notification period, and Brooklyn Center has a thirty -day notification period for evictions. 5/16/23 -5- DRAFT Vice Chair Donnelly asked how many people are on the Commission. Mr. Anderson stated six of the seven spots are filled. Two people were absent, one of which was excused and another was unexcused. ADJOURNMENT There was a motion by Commissioner Freund and seconded by Vice Chair Donnelly to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:45 p.m. (-'Ua'w' ?� Chair Enge 5/16/23 -6- DRAFT MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION JUNE 20, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chair Enger at 7:00 p.m. MEETINGATTENDEES Chair Gretchen Enger Vice Chair Michael Donnelly —Excused Commissioner Lori Best-Deyoe — Excused Commissioner Laura Freund Commissioner Jerry Gayflor Commissioner Elizabeth Riel Commissioner Florence Williams City Staff present: Staff Liaison Jesse Anderson and City Council Liaison Kris Lawrence - Anderson. Also present: Nahid, Claudia, Huldah Hiltsley, Matt Branch, Julie B WELCOMEAND INTRODUCTION The Commissioners, Staff, and Council introduced themselves. Staff Liaison Jesse Anderson noted the Commission is now full and there has been a Chair and Vice Chair elected. APPROVAL OFAGENDA There was a motion by Commissioner Freund and seconded by Commissioner Gayflor to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES There was a motion by Commissioner Riel and seconded by Commissioner Gayflor to approve the minutes for the April 18, 2023 and May 16, 2023 Housing Commission meetings. The motion passed. NEW NEIGHBOR PROGRAM Staff Liaison Jesse Anderson noted the Program was not completed in previous years, and he also pulled new numbers to add to the Program. He showed a map with different neighborhoods of Brooklyn Center. 120 residences were not welcomed in previous years, and there are 245 new residences that also need to be welcomed. NEWNEIGHBOR PROGRAM —HOUSING COMMISSIONERS TO PROVIDE FEEDBACK ON PACKETS 6/20/23 -1- Staff Liaison Jesse Anderson asked for feedback from the Commissioners. City Council Liaison Lawrence -Anderson noted the ice cream shop and chicken restaurant are opening soon. Those could be highlighted in the packets. There is also a new food market by the liquor store. Commissioner Freund pointed out a school district map had some outdated language, including the name Earle Brown Heritage Center. City Council Liaison Lawrence -Anderson stated the district lines were recently redrawn for voting. Chair Enger asked for Staff Liaison Jesse Anderson to read off everything currently in the packet. Staff Liaison Jesse Anderson stated the packet includes a new neighbor welcome letter, which needs an update, There is a quick reference guide. Chair Enger stated there is a new reference guide available online. Chair Enger noted it could be beneficial to provide a link rather than an information sheet because the Councilmembers may change. Chair Enger asked what the social media postcard is. Staff Liaison Jesse Anderson stated it has a QR code on it, but he didn't have a copy of it either. Chair Enger pointed out the social media card has an outdated Crime Prevention Specialist on it. Commissioner Riel stated her biggest pet peeve is parking on the streets. Staff Liaison Jesse Anderson stated the packet includes an ordinance post card and parks and trail map. Chair Enger stated the names of some buildings have changed, and the change should be reflected on the parks and trail map. City Council Liaison Lawrence -Anderson stated Three Rivers Park District has their own maps that they could order from their website. Staff Liaison Jesse Anderson noted there is a school district map. Commissioner Freund pointed out a school district map had some outdated language, including the name Earle Brown Heritage Center. Staff Liaison Jesse Anderson stated there is a separate map for school district and voting districts. He made note of changes needed. Chair Enger asked if it makes sense to list the schools in the district on the school district map. Commissioner Gayflor and City Council Liaison Lawrence -Anderson agreed it would be helpful. Staff Liaison Jesse Anderson stated there is a pamphlet on good neighbors. Updates are needed due to code changes and website updates. Staff Liaison Jesse Anderson noted there is information on hiring a contractor, and updates to the website are needed. There is information on home improvements, but there are changes needed to reflect new fence regulations. 6/20/23 -2- Commissioner Williams stated the proper name of the car wash mentioned on the Shingle Creek Crossing info sheet is Pop's Car Wash. Staff Liaison Jesse Anderson made a note to change the name of the car wash. Staff Liaison Jesse Anderson stated the programs postcard doesn't need any updates unless commissioners had other input. It was last updated one year ago, and there haven't been any changes. Chair Enger suggested they add the updated review date to the postcard. Staff Liaison Jesse Anderson noted there is both a post card and a pamphlet that explains when and where people can drop off items for disposal. Both are available online. Staff Liaison Jesse Anderson stated he needs to reach out to the entity that runs the resource fair for confirmation of information. Chair Enger stated she would appreciate more information on the paper. Staff Liaison Jesse Anderson stated there is a form about volunteering for the Charter Commission. Chair Enger noted there is another application form. Staff Liaison Jesse Anderson explained the Charter Commission oversees the Charter but other Commissions are advisory to the Council. There needs to be more information added to the Commission application form. Commissioner Williams stated Jamrnin Wings is closed. Staff Liaison Jesse Anderson stated their plan is to make renovations and reopen. There is also a plan to add a second floor. Staff Liaison Jesse Anderson stated the voter registration form is not something they can change as it is a State form. The Code Red information sheet doesn't need any updates. Chair Enger asked if the packet needs the sticker and the information sheet. Commissioner Williams stated it would be helpful to keep both because folks that aren't as computer -literate might benefit from the packet of information. Commissioner Gayflor agreed the packet should include both items. Staff Liaison Jesse Anderson stated the Implementation Committee application is no longer needed. There is then a page on crime prevention tips that needs updated contact information. Chair Enger asked if there will be another coupon book. Staff Liaison Jesse Anderson stated one needs to be removed as the store is no longer open. He pointed out there are some rules the Housing Commission previously set up regarding what types of coupons can be included in the packet. City Council Liaison Lawrence -Anderson suggested the City post a request for coupons and vendors on social media that could be included in the packet. Chair Enger asked how often the coupons are used. Staff Liaison Jesse Anderson stated he was unsure. Commissioner Gayflor asked if information on CAPI's extension should be added to the packet. Staff Liaison Jesse Anderson stated the project has yet to be approved by Council. 6/20/23 -3- City Council Liaison Lawrence -Anderson explained CAPI is a nonprofit organization that stands for The Center for Asian and Pacific Islanders. She pointed out they serve all cultures and have a variety of services. Staff Liaison Jesse Anderson noted the packet mostly highlights food, shops, and recreation. It should be added to the social services list, however. Chair Enger asked if there should be City newsletters included in the packet. Staff Liaison Jesse Anderson stated that information used to be included, but the information quickly became outdated because the newsletter is quarterly. Chair Enger asked if information on Night to Unite should be included. There are also new businesses in the City. She asked if information on business licensing should be included. Staff Liaison Jesse Anderson stated Brooklyn Center doesn't do business licensing. Commissioner Williams suggested there be information on rental licenses. Staff Liaison Jesse Anderson noted there is a pamphlet that includes some information on rental licenses. City Council Liaison Lawrence -Anderson suggested the quick reference guide include information on how to access the free subscription to the local newspaper. Chair Enger confirmed that information is already included. Commissioner Williams stated the voting registration form doesn't include information on how someone with a criminal history can vote. Staff Liaison Jesse Anderson stated that is a State form that they cannot change. However, the information could be added to the voting district map. Commissioner Williams stated the KMOJ radio station provides a lot of information on resources available to Brooklyn Center folks. Staff Liaison Jesse Anderson stated the radio station could be included on the form that mentions other broadcast resources. NEW NEIGHBOR PROGRAM— 41212023-21112023 (245 NEWNEIGHBOR& NEWNEIGHBOR PROGRAM— 512112021-313112022 (120 NEWNEIGHORS NEW NEIGHBOR PROGRAM — SELECT DELIVER YDATES Staff Liaison Jesse Anderson asked if the Commission wants to discuss dates for delivery. In the past, the Chair would send out a doodle poll to get availability from Commissioners for delivery dates. . Chair Enger asked if August would be appropriate for deliveries. Staff Liaison Jesse Anderson stated it will take a while to update all of the documents and assemble the packets. They could discuss dates at the July meeting instead. Commissioner Williams asked if they each get to choose which area they can deliver to. Staff Liaison Jesse Anderson stated it is up to the Commission. He added the Commission can also decide if they want to deliver as individuals or in pairs. He pointed out some neighborhoods are denser due to undelivered packets from previous years. 6/20/23 -4 Commissioner Williams stated it would make sense for each Commissioner to deliver to their respective districts. Staff Liaison Jesse Anderson stated it is the decision of the Commission. City Council Liaison Lawrence -Anderson suggested the Commission discuss which days of the week work the best for most Commissioners. Weekends can be sacred to some people. Wednesdays is a common evening for folks to be at religious functions. PRESENTATION ONNEW CONSTR UCTION MUL TI FAMIL Y LICENSE AND REPEAT TYPE 4 LICENSE Staff Liaison Jesse Anderson introduced the item. He stated there has been a rental licensing program since the 1970s. Mr. Anderson explained system was last modified in 2010, and it is intended to promote quality assurance. Additionally, it is meant to reward landlords for quality rental services and to provide extra attention to lower -performing rentals. Staff Liaison Jesse Anderson explained there is a four -tier structure of licensing in Brooklyn Center. A license is required when a unit is not owner -occupied. After a license is granted, there is a required inspection. The tiered structure is performance -based, and each tier has different requirements. A license cannot move up to another tier unless they meet all of the current tier's requirements, have no violations, and successfully complete an inspection in a particular timeline. Mr. Anderson noted validated police calls are an example of what can be used to count violations. Mr. Anderson stated the ordinance covers length of license, application, revocation, definition of a valid police call, and tenant protection ordinance. Mr. Anderson stated after the inspection, Staff reviews police service calls. He showed a list of valid calls. Different amounts of validated police calls count against license levels in different ways. The validated police calls haven't impacted properties in a while, mostly because those with several validated police calls are already at the 6-month license level. Commissioner Williams stated the rule impacts the tenant and not the landlord. Mr. Anderson stated it impacts both parties. Commissioner Williams stated the landlord is more likely to evict someone if they are causing multiple police calls. Domestic violence shouldn't be a reason for an eviction. Mr. Anderson stated domestic violence isn't a valid call. Commissioner Williams asked what nuisance calls are. Mr. Anderson stated it is not just a noise complaint. Instead, it is related to more serious offenses such as drugs. Staff Liaison Jesse Anderson stated each license level correlates with a different level of crime- fiee housing requirements. He showed a slide with information on the various licensure tiers. If the property owner doesn't fulfill the requirements, then they are not eligible to move up to a higher license tier. The license repeats as a six-month license if the crime -free housing requirements are not met or if there are a high number of qualified police calls. 6/20/23 -5- Mr. Anderson showed a slide with the distribution of the various license types. The lowest tier is only eight percent of the units in Brooklyn Center. The tiers do not reflect the size of the residence. Staff Liaison Jesse Anderson showed some of the numbers Council used to make changes in 2018. At that time, 44 percent of type four rentals were repeats. 38 percent of the repeats were due to violations. In 2022, there were 76 repeats, 60 percent of which were only due to failing to meet requirements. Staff Liaison Jesse Anderson stated of the type four licenses issued in the 2015-2018 period, 86 percent of them improved from the previous inspection. Since 2018, that percentage has increased. The percentage is lower for 2023, but it is early in the year and Staff has been stricter on rental licensing lately. Mr. Anderson noted the Commission has also been asked to consider new construction licensure. The ordinance is written somewhat weirdly, and the current City Attorney agrees. As it stands, new construction houses can't get higher than a tier one license. Mr. Anderson stated Sonder House has gotten a lot of attention. There are 127 units, and their license expired May 31, 2023. At that time, there were zero violations. They have recently paid the renewal fee. A full inspection was conducted on April 26, 2023 and 168 property maintenance code violations. A majority of the units had few or no violations, and the common areas were well - maintained. Several units had multiple property code violations, which resulted in the large total number. A follow-up inspection is scheduled. Mr. Anderson explained Sonder Point, a senior living facility, hasn't had their initial inspection. The Sanctuary is also a senior living facility. They are in the renewal process. Maranatha is an older rental, and they have done well with inspections over the years. Mr. Anderson noted the City Attorney reviewed some licensure options. The first suggestion was new developments can only qualify for a Type 3 license and require an action plan. This would require the fewest number of changes to the existing City Code and the Rental License Category Criteria Policy. As it stands, new licenses start at Type 2. Type 3 requires an action plan, so this requirement would automatically be in place. The language of the City's form Rental License Plan would have to be tweaked because it assumes that the property has been placed in the Type 3 category for known nuisances and calls. Staff Liaison Jesse Anderson stated the City Attorney had a response to the second option, which was that a new license could quality for a Type 2 license, but it will be reviewed at the one-year mark; if their license changes based on code violations or validated nuisance police calls for service, it would be change to that new license type. This would require a few more additions and changes to the City Code. If the goal is a one-year review, rather than saying that a new license qualifies for Type 2, the City Attorney recommends a one-year provisional/probationary license that will be reviewed at one year, and at that time, placed in the proper category. It may be confusing for a licensee if they think they have a two-year Type 2 license, with everything that comes with that, but it's not really a two-year license. It seems like it would be cleaner to just say it's a one-year license. 6/20/23 -6- Commissioner Williams stated the language is targeting low-income and people of color. Mr. Anderson stated the suggestions were created by the Housing Commission and he was just relaying the response from the City Attorney. Commissioner Williams noted her surprise that the Housing Commission would offer such ideas. Councilmember Lawrence -Anderson stated the goal of the Council is for Brooklyn Center to have high -quality, safe housing. They would hope there are no Type 4 licenses as that shows the housing is low quality and a lot of Staff time is used. The rules target management of the building to provide the best housing to renters. Commissioner Williams agreed she wants the housing options to be well -maintained. However, the police calls for service does not reflect the maintenance of the building. Mr. Anderson stated the police calls for service doesn't have much of an impact on licenses. Commissioner Williams stated the nuisances and the nuances from cops jeopardized the tenants. The Housing Commission is meant to protect the tenants. The wording seems to target the tenants rather than the renters. Commissioner Williams added tenants are going to be able to understand the wording. Chair Enger stated the language on the slides are just responses from the City Attorney. The City Council asked the Housing Commission to come up with some options to alter the licensure process for new rentals. Commissioner Williams asked why the Housing Commission was tasked with creating other options. The new rentals coming into the City are affordable units. Chair Enger stated there isn't a rule in place for how to handle new rentals, and the Council asked for the Housing Commission to help develop a policy on how to address new rentals in the licensure process. City Council Liaison Lawrence -Anderson stated Sonder House is brand new, and the Council was extremely excited about the opportunity for additional affordable housing. However, there have been several issues at Sonder House such as shootings in the parking lot. The Council discussed the issue and thought that the automatic two-year license for new builds may need to be readdressed. Commissioner Williams stated the Council is assuming that new affordable housing will be problematic. Sonder House is near the public transportation hub which likely contributes to the crime issues. City Council Liaison Lawrence -Anderson stated the issues with Sonder House showed the Council that there isn't a method to address the issues because it was treated as an existing rental rather than a new rental. The hope is to be proactive and help landlords fix issues earlier on. Commissioner Williams asked if long-term rentals have had similar issues to Sonder House. City Council Liaison Lawrence -Anderson stated the long-term rentals that are consistently a Type 4 license have similar issues. 6/20/23 -7- Commissioner Williams noted the issue is not with the code enforcement but with the tenants themselves. City Council Liaison Lawrence -Anderson stated that is not necessarily true. Security cameras and security protocols, which are related to code enforcements, are an effort to mitigate crime. Staff Liaison Jesse Anderson added the third option was offering a six-month licensure and requiring a mitigation plan with police calls for service as part of the review. As discussed, six months seems like a pretty short period of time for the initial license period and may not necessarily be representative of a longer period of time. With the mitigation plan requirement, this would effectively be a Type 4 provisional license from the outset and would be particularly restrictive for potential landlords. Of the three options, this is the only one that pose some concerns with regard to the legal impact and a potential claim that it is too restrictive. Commissioner Williams stated the Council is looking for a way to violate new rentals. Chair Enger asked what the next step is. Staff Liaison Jesse Anderson stated the Housing Commission can make a recommendation for him to bring to Council, be it one of the three presented options or a new option. Commissioner Gayflor stated he prefers the option of a one-year license. If there are any issues, then the City could punish them. Mr. Anderson stated it is unlikely that a rental property would score low enough to result in a lower license. The property would likely obtain a three-year license at the one-year mark. Commissioner Williams asked why they don't keep the two-year license for new rentals. Mr. Anderson stated that is up to the Housing Commission. Mr. Anderson stated he doesn't see how the second option would be implemented. Commissioner Williams pointed out the second option still has an emphasis on criminal calls. Chair Enger stated the code violation is the first consideration then police calls for service can be considered. Commissioner Williams stated the language is still putting pressure on the tenants. She stated she would like to see the statistics on rentals that didn't obtain licensure due to police calls. Staff Liaison Jesse Anderson stated Sonder House's aforementioned 168 violations were due to maintenance code issues. Commissioner Williams stated the majority of the units had few or no property code violations, and the common areas were well maintained during the inspection. Several units had multiple property code violations, which caused a large number of property code violations. City Staff informed property management about their willingness to work with Sonder House on an event to engage residents. That means the City's main concern is still the residents. Mr. Anderson stated the event was in response to some tenant's comments to the City regarding poor management practices. For example, tenants have gotten a late rent notice when the rent had been paid or issues with checks. He added he doesn't even have police calls data. 6/20/23 -8- Commissioner Williams stated the building is new, so she doesn't buy the 168 property maintenance code violations. Mr. Anderson stated the building is two years old, and only a few units had multiple property code violations, which caused a large number of property code violations. Commissioner Williams added the policy change would be enacted right before a bunch of affordable housing is supposed to go into Brooklyn Center. Mr. Anderson stated the next three projects are Wangstad for affordable housing and two buildings at the Opportunity Site, the first being around 300 market -rate units and the second also being market -rate units. Chair Enger asked what the next steps are. Mr. Anderson explained the Commission could make a recommendation on the policy that the City Attorney would write up. From there, it would be recommended to the Council. Chair Enger stated the third option of the six-month license doesn't make sense because there wouldn't be much to review at that time. Commissioner Gayflor stated he prefers the second option of a two-year license with a review at the one-year mark. Staff Liaison Jesse Anderson pointed out Staffs recommendation is to set a new license for one- year, in line with option one. The two-year option with a one-year review, Staff would be relying on the cooperation of the landlord rather than requiring an inspection in order for a property owner to get a new license. At the same time, landlords would prefer the two-year license portion of that option. The Commission can also choose another option to recommend. Commissioner Williams noted Staff has already shared which option they want. Chair Enger stated Staff works with licensing daily, so they have insight into what would work best. Commissioner Williams stated making Staff s jobs easier isn't the point of a policy. Commissioner Gayflor stated he prefers option one after hearing more. Commissioner Freund stated she doesn't feel educated enough on the topic. Commissioner Riel noted her agreement. Chair Enger asked what information they would like to feel more educated. Commissioner Freund explained she would like to understand the impetus of the direction from Staff. She asked if it was just Sonder House. Chair Enger stated Council has asked for a policy to address licensure for new construction rentals. City Council Liaison Lawrence -Anderson added the Council wanted to be proactive with the thousand plus units coming into the City in the next couple of years and have a specific policy for new construction rentals. There also doesn't need to be a recommendation to the Council. Chair Enger asked if there is an option to table the item to allow the Cormnissioners to learn more about the topic. 6/20/23 -9- Staff Liaison Jesse Anderson stated the Commission has the option to leave the process as -is with a two-year license to start with. Otherwise, the Commission, if they believe the two-year license is too generous, can provide an alternative recommendation to Council. Commissioner Williams stated the Council didn't previously think the two-year license was generous because it has been the policy for a while. Mr. Anderson pointed out the City has only had about four new build units in the past forty years, all of which were shared in the presentation. Commissioner Freund noted the Council asked for a new policy in pant because residents of Sonder House have complained about the management and other issues with Sonder House. City Council Liaison Lawrence -Anderson confirmed that was an issue that brought Sonder House to the Council's attention, along with criminal concerns. City Council Liaison Lawrence -Anderson suggested Staff look into how neighboring cities handle new build rentals. The Commission does not have to move forward with a policy that evening. Commissioner Freund asked if Sonder House will still get a two-year license. Mr. Anderson stated as it stands, they would qualify for a two-year license. However, they haven't reviewed police calls for service. Chair Enger noted there were also management issues at Sanctuary soon after opening. Commissioner Williams stated the role of the Housing Commission is to discuss licensure not management. The City is still prioritizing crime reports in order to give out licensure, and they are using nuisance calls to violate the landlords. Chair Enger stated only validated nuisance calls are considered in the count. Crimes such as murder and arson are counted but domestic violence and noise complaint calls are not. Commissioner Williams asked Chair Enger if she has heard about any murders or arson at Sonder House. Chair Enger has heard about violence, such as the shootings in the parking lot. Commissioner Williams stated Chair Enger is assuming there are higher level crimes based on the residents that live there, which are primarily people of color. The two-year license should continue because that has been the norm. Instead, the City is targeting low-income people of color. Commissioner Riel stated she still prefers option one. Commissioner Freund stated she is not ready to make a decision. Chair Enger asked for Mr. Anderson to send the PowerPoint to the Commission. CITY COUNCIL LIAISON REPORT City Council Liaison Lawrence -Anderson stated she won't go into depth due to time constraints. Council is working on the budget. Staff is conducting an employee survey, and there is a very broad community survey being handled by a third -party firm. 6/20/23 -10- FUTURE MEETING TOPIC SCHEDULE July 18, 2021 — Presentation on Tenant Protection Data and invite property owners/representatives August 15, 2023 — Presentation on Tenant Protection and invite Tenants & advocacy group September 19, 2023 — ULI Housing Report Presentation OTHER BUSINESS There was no other business addressed by the Commission. ADJOURNMENT There was a motion by Commissioner Riel and seconded by Commissioner Gayflor to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 9:12 p.m. Chair Enger 6/20/23 -11- MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION July 18, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Enger at 7:03 p.m. MEETINGATTENDEES Chair Gretchen Enger Vice Chair Michael Donnelly Commissioner Lori Best-Deyoe Commissioner Laura Freund Commissioner Jerry Gayflor Commissioner Elizabeth Riel — not present Commissioner Florence Williams — (joined via WebEx at 7:12 p.m.) City Staff present: Community Development Director and Staff Liaison Jesse Anderson and City Associate Planner Krystin Eldridge. City Cleric Barb Suciu joined the meeting via WebEx at 7:13 p.m. Also present: Marty McDonough, Director of Government Affairs with Minnesota Multi Housing Association (MHA), City Councilmember Dan Jerzak, and Eric Falkman, COO with Soderberg Apartments. WELCOME AND INTRODUCTION The members of the Commission introduced themselves to one another. Commissioner Best-Deyoe asked if Brooklyn Center is 20 percent rental properties. Staff Liaison Jesse Anderson stated he doesn't know offhand. City Planner Krystin Eldridge noted it was about 40 percent rental properties when she last looked at the statistics. Commissioner Best-Deyoe asked if group homes count in that percentage. Mr. Anderson explained group homes or other rental properties are only counted as a rental if a rental license is needed. If the homeowner also lives on site, there is not a need for a rental license. Commissioner Best-Deyoe noted part of the reason she wanted to join the Housing Commission is because of all of the rentals and group homes on her street. APPROVAL OFAGENDA There was a motion by Chair Enger and seconded by Vice Chair Donnelly to approve the agenda as submitted. The motion passed. 7/18/23 -1- APPROVAL OFMINUTES: APRIL 18, 2023AND M4Y16, 2023 There was a motion by Chair Enger and seconded by Commissioner Gayflor to approve the minutes for the April 18, 2023 and May 16, 2023 Housing Commission meetings The motion passed. NEWNEIGHBOR PROGRAM HOUSING COMMISSIONER TO PROVIDE FEEDBACK ON PACKETS Staff Liaison Jesse Anderson stated the packets are still being put together by Staff. He explained the New Neighbor Program is a hand -delivered bag from a Housing Commissioner to any new residents of Brooklyn Center. There is a hope to deliver in early August, and the deliveries are most successful on weekday evenings. 41212 023-21112 023 (245 NEW NEIGHBORS) None. 5121/ M-313MO22 020 NEW NEIGHBORS) None. SELECT DELIVERYDATES Chair Enger suggested folks discuss availability. Commissioner Florence Williams joined the meeting through WebEx at 7:12 p.m. Mr. Anderson noted the next Housing Commission meeting is August 15, 2023, so the delivery date should be before then. Chair Enger stated she would be unavailable to attend the August 15 meeting. She offered to attend virtually. Mr. Anderson pointed out Commissioners cannot participate virtually anymore. City Clerk Barb Suciu joined the meeting through WebEx at 7:13 p.m. The consensus of the Housing Commission was to deliver some packets on August 8, 2023. They will meet in the parking lot to pick up packets and assign addresses for delivery. The hope is to leave to start deliveries by 6:00 p.m. Chair Enger asked who was available on August 10, 2023 for delivery. Vice Chair Donnelly suggested only delivering once per week and offered the date of August 15, 2023. Mr. Anderson pointed out August 15, 2023 is a Housing Commission meeting with a full agenda. The consensus of the Housing Commission was to deliver more packets on August 16, 2023. They will meet in the parking lot to pick up packets and assign addresses for delivery. The hope is to leave to start deliveries by 6:00 p.m. Chair Enger asked for availability for deliveries on August 22, 2023. Commissioner Best-Deyoe stated people move out of Brooklyn Center so fast it is impossible to get to know neighbors. 7/ 18/23 -2- The consensus of the Housing Commission was to deliver more packets on August 22, 2023. They will meet in the parking lot to pick up packets and assign addresses for delivery. The hope is to leave to start deliveries by 6:00 p.m. PRESENTATION ON NEW CONSTR UCTION MULTI FAMILY LICENSE AND REPEAT TYPE 4 LICENSE Staff Liaison Jesse Anderson gave an overview of the history of discussions on the topic. In January 2023, City Council requested Housing Commission to review Licensing for New Construction Rental Properties. In February 2023, the Housing Commission had an agenda item for New License. There were only 2 Commissioners in attendance and no meeting was held. In March 2023, the Housing Commission had an agenda item for New License. There were only 3 Commissioners in attendance and no meeting was held. In April 2023, the Housing Commission had discussion regarding the Initial Rental License Type. There was direction to staff to have 3 scenarios reviewed by the City Attorney. Then in June 2023, the Housing Commission were provided the feedback from the City Attorney on the 3 scenarios reviewed by the City Attorney. The Commission continued the discussion for the next meeting. Mr. Anderson stated there has been a rental licensing program since the 1970s. Mr. Anderson explained system was last modified in 2010, and it is intended to promote quality assurance. Additionally, it is meant to reward landlords for quality rental services and to provide extra attention to lower -performing rentals. Staff Liaison Jesse Anderson explained there is a four -tier structure of licensing in Brooklyn Center. A license is required when a unit is not owner -occupied. After a license is granted, there is a required inspection. The tiered structure is performance -based, and each tier has different requirements. A license cannot move up to another tier unless they meet all of the current tier's requirements, have no violations, and successfully complete an inspection in a particular timeline. Mr. Anderson stated the ordinance covers length of license, application, revocation, definition of a valid police call, and tenant protection ordinance. Mr. Anderson stated after the inspection, Staff reviews police service calls. He showed a list of valid calls. Different amounts of validated police calls count against license levels in different ways. The validated police calls haven't impacted properties in a while, mostly because those with several validated police calls are already at the 6-month license level. Staff Liaison Jesse Anderson stated each license level correlates with a different level of crime - free housing requirements. He showed a slide with information on the various licensure tiers. If the property owner doesn't fulfill the requirements, then they are not eligible to move up to a higher license tier. The license repeats as a six-month license if the crime -free housing requirements are not met or if there are a high number of qualified police calls. Mr. Anderson showed a slide with the distribution of the various license types. The lowest tier is only eight percent of the units in Brooklyn Center. The tiers do not reflect the size of the residence. 7/18/23 -3- Staff Liaison Jesse Anderson showed some of the numbers Council used to make changes in 2018. At that time, 44 percent of type four rentals were repeats. 38 percent of the repeats were due to violations. In 2022, there were 76 repeats, 60 percent of which were only due to failing to meet requirements. Staff Liaison Jesse Anderson stated of the type four licenses issued in the 2015-2018 period, 86 percent of them improved from the previous inspection. Since 2018, that percentage has increased. The percentage is lower for 2023, but it is early in the year and Staff has been stricter on rental licensing lately. Mr. Anderson noted the Commission has also been asked to consider new construction licensure. The ordinance is written somewhat weirdly, and the current City Attorney agrees. As it stands, new construction houses can't get higher than a tier one license. Mr. Anderson stated Sonder House has gotten a lot of attention. There are 127 units, and their license expired May 31, 2023. At that time, there were zero violations. They have recently paid the renewal fee. A full inspection was conducted on April 26, 2023 and 168 property maintenance code violations. A majority of the units had few or no violations, and the common areas were well - maintained. Several units had multiple property code violations, which resulted in the large total number. A follow-up inspection is scheduled. Mr. Anderson explained Sonder Point, a senior living facility, recently had an inspection and received zero violations. The Sanctuary is also a senior living facility. After two years of operating the facility, there were 27 violations and six police calls for service, neither of which impacted the license type. Maranatha is an older rental, and they have done well with inspections over the years. Most recently, their inspection showed 16 violations and allowed them to maintain their license type. Mr. Anderson noted the City Attorney reviewed some licensure options. The first suggestion was new developments can only qualify for a Type 3 license and require an action plan. This would require the fewest number of changes to the existing City Code and the Rental License Category Criteria Policy. As it stands, new licenses start at Type 2. Type 3 requires an action plan, so this requirement would automatically be in place. The language of the City's form Rental License Plan would have to be tweaked because it assumes that the property has been placed in the Type 3 category for known nuisances and calls. Staff Liaison Jesse Anderson stated the City Attorney had a response to the second option, which was that a new license could quality for a Type 2 license, but it will be reviewed at the one-year mark; if their license changes based on code violations or validated nuisance police calls for service, it would be change to that new license type. This would require a few more additions and changes to the City Code. If the goal is a one-year review, rather than saying that a new license qualifies for Type 2, the City Attorney recommends a one-year provisional/probationary license that will be reviewed at one year, and at that time, placed in the proper category. It may be confusing for a licensee if they think they have a two-year Type 2 license, with everything that comes with that, but it's not really a two-year license. It seems like it would be cleaner to just say it's a one-year license. 7/18/23 -4- City Clerk Barb Suciu noted the audio is going in and out. Staff Liaison Jesse Anderson added the third option was offering a six-month licensure and requiring a mitigation plan with police calls for service as part of the review. As discussed, six months seems like a pretty short period of time for the initial license period and may not necessarily be representative of a longer period of time. With the mitigation plan requirement, this would effectively be a Type 4 provisional license from the outset and would be particularly restrictive for potential landlords. Of the three options, this is the only one that pose some concerns with regard to the legal impact and a potential claim that it is too restrictive. Mr. Anderson noted a fourth option was added to keep current licensing ordinance that provides for a 2-year license maximum for initial rental license at New Construction. Chair Enger explained the goal is to determine which option the Housing Commission would like to recommend to the Council. She asked for each Commissioner to share their opinion to find a consensus. Commissioner Florence Williams asked if she would be able to vote. Mr. Anderson asked Ms. Suciu, but she did not respond. Mr. Anderson stated typically someone cannot vote remotely, but this is just a recommendation to the Council. Commissioner Gayflor stated his initial impression was in support of the first option. However, one year is a little tight for inspection, and he now prefers option two. Commissioner Freund noted she prefers option four. Vice Chair Donnelly agreed that he supports option four. Commissioner Best-Deyoe stated her preference is option two. Chair Enger agreed she prefers option two. Commissioner Williams stated she also prefers option two. There was a motion by Chair Enger and seconded by Commissioner Gayflor to recommend the City Council consider that a new license can qualify for a Type 2 two-year license but will be reviewed at the one-year mark and if their license changes based on code violations or validated nuisance police calls for service, it would be change to that new license type. Commissioner Williams stated the current system isn't working, so the fourth option is pointless. Then the first option is too short of a timeline for a new construction. Mr. Anderson stated it is hard to determine if the current process is working or not. There isn't an evaluation at the one-year mark, which could be helpful to address issues with a poorly performing property. Vice Chair Donnelly asked if there is an example of that. Mr. Anderson stated there is not an example. 7/18/23 -5- Chair Enger stated there has been minimal construction in Brooklyn Center since the 1970s. Part of the reason the Commission is discussing the licensing process is because of the upcoming new development planned in the City. Vice Chair Donnelly asked if the recommendation would impact the first phase of the Opportunity Site. Chair Enger stated Wangstad Commons would be the first building impacted by any licensing changes. Commissioner Williams stated Sonder House is in the process of obtaining new licensure. Mr. Anderson stated they are in the renewal process for the first time. It currently looks like they will obtain a two-year license. Commissioner Williams asked if the recommendation would impact Sonder House. Mr, Anderson stated Sonder House is past the point of first -round licensure, and the recommendation only impacts the first-time licensing. Staff Liaison Jesse Anderson added if the recommendation were implemented, it is unlikely it would impact Wangstad Commons or the Opportunity Site. Vice Chair Donnelly and Commissioner Freund voted against the same. Chair Enger, Commissioner Best-Deyoe and Commissioner Gayflor voted in favor of the motion. Commissioner Williams was in attendance virtually and expressed that she supported the motion. The consensus of the Housing Commission was to recommend the City Council consider that a new license can qualify for a Type 2 two-year license but will be reviewed at the one-year mark and if their license changes based on code violations or validated nuisance police calls for service, it would be change to that new license type. There was a motion by Vice Chair Donnelly and seconded by Commissioner Freund to recommend the City Council consider keeping current licensing ordinance that provides for a 2 year license maximum for initial rental license at New Construction. Chair Enger, Gayflor, and Best-Deyoe voted against the same. Motion failed. Staff Liaison Jesse Anderson noted he would relay details of the discussion to the Council and that Commissioner Williams participated remotely when the recommendation is presented. CITY COUNCIL LIAISON REPORT This item was considered after Future Meeting Topic Schedule — July 18, 2023 — Presentation on Tenant Protection Data and invite property owners/representatives. FUTURE MEETING TOPIC SCHEDULE JULY 18 2023 — PRESENTATION ON TENANT PROTECTION DATA AND INVITE PROPERTY OWNERSIREPRF.SENTATIVES Staff Liaison Jesse Anderson explained there was direction from Council for the Housing Commission to consider the Tenant Protection Ordinance, At a future meeting, tenants and 7/ 18/23 -6- advocacy groups will be invited. Chair Enger pointed out she would be unable to attend the August meeting, but she would like to participate virtually. Mr. Anderson stated he would confer with City Clerk Barb Suciu to determine their options. Staff Liaison Jesse Anderson stated there are two main components to the tenant protection ordinance. First, there is a 30-day pre -eviction notice requirement. Second, there is a requirement that non -renewals have just cause. This establishes requirements that prevents a property owner or property manager from non -renewing an existing tenant's lease without just cause. Options of just cause include the non-payment of rent, material non-compliance, tenant nonrenewal, occupancy by property owner of family member, building demolishing or conversion, rehabilitation or renovation, complying with a govermnent order to vacate, occupancy conditioned on employment. Mr. Anderson explained in 2018-2019, the City first looked at adopting a tenant protection ordinance regarding the sale of an affordable housing property. In conversation with City Council on housing policies, the Council wanted Staff to look at additional tenant protections in 2021. Staff reviewed ordinances and met with staff from the City of St. Paul. Due to the lawsuit against the City of St. Paul, City of Brooklyn Center decided to only bring forward a. few sections for tenant protections. The proposed ordinance was brought to the Housing Commission on October 19, 2021. The Housing Commission heard from housing advocacy groups and numerous tenants throughout the process. Mr. Anderson stated the proposed ordinance was brought to City Council on November 8, 2021 for a discussion and first reading. During the council meeting, staff presented the two proposed tenant protections. It was brought back to City Council at the December 13, 2021 meeting. There was public comment from property owners, tenants, and tenant advocacy organizations. The City Council continued the discussion for the meeting in January 2022. Staff Liaison Jesse Anderson noted during the City Council meeting on February 14, 2022, the Council continued the tenant protection conversation with three proposed changes: adding a provision for landlords to track non -renewals of leases and report theirs to the City when request: reduction of the pre -eviction notice from 30 days to 14 days; and addition a provision that would allow property owners to give a 90-day notice for non -renewal without giving a reason. The Council requested that the proposed changes be reviewed by the Housing Commission. Mr. Anderson stated at the February 28, 2022 City Council Meeting, Staff presented and reported on the February 15, 2022 Housing Commission meeting. The Housing Commission preferred a 30-day pre -eviction notice but would consider a 14-day notice as a good compromise. The Commission was split on the 90-day non -renewal notice without just cause. The Commission agreed that the property owners should be required to document and report non -renewals. Public comment was heard regarding the proposed changes. Council had a discussion about the changes and voted to approve Resolution No. 2022-30 which included the 30-day pre -eviction notice, just 7/ 18/23 -7- cause non -renewal, and tracking and reporting of non -renewals. Mr. Anderson pointed out in January 2023, City Council requested an update on the Tenant Protection Ordinance related to the landlords' non -renewals documentation. Staff sent out a survey to all property owners and managers on April 5, 2023. The survey was sent via GovDelivery and to 350 emails including single family and multifamily owners/managers. Another email was sent on April 24, 2023 directly to large property owners/managers in the City. Staff also directly called managers to request the survey be completed. A total of 27 responses were received. Mr. Anderson summarized the results of the landlord survey. 95 percent of landlord participants stated their property is considered affordable housing. 23 landlords sent out less than 5 evictions while two sent out 6-10 evictions and another two sent out 30-60 evictions. The eviction filings were for a number of reasons. 11 landlords stated evictions were for non-payment of rent, three were for abandonment, and two for lease violations. Mr. Anderson stated there was a question on how long the landlord waiting for an eviction hearing with Hennepin County. 13 landlords did not file an eviction, six waited 5-8 weeks, five waited 0- 4 weeks, and three waiting more than 9 weeks. As for results of the hearing, 10 were issued a write of recovery, five resulted in a mutual termination, and three ended up in mediation. Mr. Anderson added there was a question about how many lease non -renewals were issued in 2022. 18 issued 0-5 non -renewals, four issued 6-10 non -renewals, one issued 11-15 non -renewals, and two issued more than 15 non -renewals. 61.5 percent of non -renewals were for late rent and 38.5 percent were for material lease violations such as property damage, smoking, non -cooperation with pest control, and unsanitary conditions. Mr. Anderson noted 77 percent of landlords stated that the tenant protection ordinance did not impact their decision to issue an eviction. 70 percent of landlords stated that the tenant protection ordinance did not impact their decision to issue a non -renewal. Mr. Anderson added the Council was also interested in the feedback received by Minneapolis and Saint Louis Park after implementing their tenant protections. Both cities have not received or are not aware of any complaints regarding violations of the ordinance. Minneapolis stated that they had originally proposed 30 days based off feedback from their public hearing, but after feedback from the property managers and owners, the City lowered it to 14 days. Saint Louis Park originally proposed 10 or 14 days for a notice, but after the owners opposed the length, they lowered it to seven. Both cities have been unable to determine the effectiveness of the program due to the eviction moratorium. Eric Falkman, COO with Soderberg Apartments, explained they own and manage about 2200 units around the Metro, with about 785 units in Brooklyn Center. The tenant protection ordinance came up in a unique time as they were coming out of COVID-19 restrictions and civil unrest. Currently at the State level, they are working on a comprehensive tenant protection ordinance. Brooklyn Center has some of the most severe tenant protection ordinances in the State. Marty McDonough, Director of Government Affairs with Minnesota Multi housing Association 7/18/23 -8- (MHA), agreed Brooklyn Center has some of the most severe tenant protection ordinances in the State. He stated the Association is comprised of about 2200 members serving over 600,000 renters throughout the State. The membership includes small-scale landlords, apartment management companies, developers, common interest communities, and providers of related products and services. Mr. McDonough pointed out Saint Louis Park was the first City that wanted some sort of protection ordinance for tenants should a rental facility come under new ownership.. From there, other cities followed suit. Mr. McDonough explained something unique about Brooklyn Center was defining affordable units as those under 80 percent area median income (AMI), while every other city has their definition at 60 percent AMI. 80 percent AMI for an efficiency apartment is $1,468 per month, a one - bedroom is $1,574, atwo-bedroom is $1,889, and so on. That definition includes almost all units in Brooklyn Center. The majority of cities chose the definition of 60 percent AMI for consistency as renters may move around or as property owners may operate units in multiple cities. Mr. McDonough stated there is a section of law in Minnesota, called 504B, with extensive information defining the roles and responsibilities of landlords and tenants. Some cities don't even have a rental licensing program. For example, Eagan is just starting a rental license process. Mr. McDonough stated there has been an assumption for quite some time that a tenant is aware of the cost they are agreeing to upon signing a lease and when it is due. However, the ordinance in Brooklyn Center requires the landlord to notify the tenant of their nonpayment at or after the due date before they are able to start any eviction process. It then takes on average six weeks for the case to get a court hearing, during which time the landlord won't be receiving any payment. The issue only compounds on itself from there. Mr. McDonough noted Minneapolis has a 14-day notification period and St. Louis Park has a seven-day notice. However, Brooklyn Center is at a 30-day notice., There is a new Statewide requirement of a 14-day notice since Brooklyn Center created their ordinance. St. Louis Park will likely eliminate their ordinance all together and just abide by the State's requirements. Minneapolis' timeline is the same, but they have different reporting requirements. MHA is working with Minneapolis to get the requirements more in line with the State. Mr. McDonough explained the States requirements have a lookback period of only three years for evictions. Also, pending evictions will no longer be public. There is' an option for tenants to request an inspection of the unit before moving in, and there is a tenant remedies portion to report non -working elements such as air conditioning, refrigerators, or elevators. There are provisions about breaking leases for health issues, required disclosure of any non -optional fees, and 24-hour notice before entry. Mr. McDonough added just cause non -renewals can be dangerous for cities to do. For example, there could be a problem tenant who is causing other tenants to leave, but the reason isn't only the list of just causes. Brooklyn Center is the only City to have..a just cause non -renewal component. 7/18/23 -9- The only other city that has tried is has had it repealed. Mr. Falkman stated his company ('eels the same way. It is ultimately for the ease of the renters because Brooklyn Center has unique rules that don't apply elsewhere. Soderberg Apartments has fielded numerous questions and concerns from tenants trying to move into or out of Brooklyn Center due to the tenant protection ordinance. There ate similar, issues in Saint Louis Park. Overall, Soderberg Apartments has great relationships with tenants, and they want to maintain those relationships. Mr. Falkman shared examples of problem tenants that caused other tenants to leave and couldn't be removed due to just cause. The problems couldn't be substantiated such as smoking or creepy behaviors. An eviction is the last resort for landlords, and non -renewals are a valuable tool to work together with tenants. The ordinance forces landlords to start the eviction process much sooner than they would like because of the additional time constraints. They would prefer to work together with the tenant. Chair Enger asked where they can rind information cited by the presenters. Mr. McDonough agreed the information is difficult to find and was part of a Bill with other random topics such as gun control. Mr. Anderson confirmed he would send out the information on the Bill and how to access it, He noted he previously sent out i lomcLinc's summary of the new regulations. Mr. Falknian added there has been a serious increase in stolen identities in the State, which is another concern for landlords. Councilmember Jerzak agreed there are issues created for the victim of the stolen identity, the neighboring tenants, and the landlords. It is virtually impossible to chase down the criminals, and law enforcement doesn't have the capacity to handle such concerns. Commissioner Gayflor explained Brooklyn Center is unique to most other cities in Minnesota. There may need to be certain regulations to protect its diverse community. She asked why this topic is a priority and how consistency matters. Mr. McDonough stated consistency is important for both landlords and. tenants. Both sides can expect similar processes for applications, inspections, leases; non -renewals, evictions, and the like. It is easier to teach and train employees and also makes it easier for tenants to know their rights. Mr. Falkman noted the discrepancy can cause conflict. He pointed out Brooklyn Center already has one of the strictest rental licensing programs he has ever encountered. The City has strong tools in their licensing to support tenants. landlords may see it as burdensome, but he sees it as a benefit as it raises the standard of housing and prevents bad actors from reciting units in Brooklyn Center. Commissioner Williams asked what the purpose of the presentation is. Chair Enger stated it is educational and the Commission will hear from tenants and tenant advocacy groups in a future meeting. Then there will be a Future discussion to determine if any recommendations should be 7/18/23 -10- made to the Council. Commissioner Laura Freund pointed out 70 to 77 percent of landlords were not impacted by the ordinance, according to the survey. She asked what brought up the topic. Mr. Anderson asked for feedback on the ordinance from the Housing Commission. Mr. Falkman added many housing providers don't understand the ordinance and aren't sure on how to implement it. Chair Enger noted only 27 responses were received from 350 survey requests. The lack of response may also reflect the lack of understanding by landlords. Mr. Falkman stated landlords Nverc solicited for feedback during the process. Landlords didn't even know about the potential ordinance until the second reading. Housing providers in the community feel as though their opinion is unimportant or not valued, and that may have resulted in fewer survey responses. Councilmember Jerzak pointed out part of the process for the ordinance required that there be a survey of landlords after the ordinance Nvas in place for a while. Since the ordinance process began, there is a new Mayor and two new Councilmembers. Also, there weren't any State regulations in place when the ordinance development began. The inspectors have been caught in the middle of the issue as well, and that is not their role. Commissioner Williams stated Brooklyn Center isn't trying to be different and may not have an issue with becoming consistent with the State regulations. There needs to be further discussion before universal claims are made. Commissioner Gayflor stated the lael< of survey responses from landlords show that landlords don't really care. Chair Enger thanked Mr. Falkman and i�/lr. McDonough for their time. Mr. Falkrnan noted he left his card if anyone wanted to speak further. AUGUST 15, 2023 — PRESISNTATION ON TENANT PROTECTION AND INVITE TENANTSANDADVOCACY GROUPS None. SEPTEMBER 19 2023 — ULI IIOUS"[NG RF']'ORT PRISSENTATION None. CITY COUNCIL L.1111SON R[SPORT Chair Enger stated this item will not he addressed as Council Liaison Councilmember Kris Lawrence -Anderson was not present. OTHER BUSINESS Chair Enger showed a document that she found on the City website related to the ULI Housing 7/18/23 -I1- Report. There are short- and long-term ideas of things to implement. She suggested there be a presentation on the topic and why the document was created. Mr. Anderson stated he sent it out previously to the Commission, but he can resend it. The presentation is scheduled for September. Commissioner Best-Deyoe stated the housing market in Brooklyn Center is slowing down. Chair Enger added there is a Council agreement that the Councilmembers follow during their meetings. She explained she put togetlhcr a similar document that could ensure the IIousing Commission is working as a collective and all parties feel equal. She provided a copy of the document to the present Commissioners. Mr. Anderson proposed the item be a discussion topic at a future meeting. Commissioner Freund asked where Chair 1?ngcr found the methodology. Chair Enger stated she learned it from the Council and modeled it alter the Council norms. Councilmember Jerzak noted Commissions tend to have a set of bylaws or code of conduct that the Staff Liaison could provide to the Commission. Mr. Anderson stated the bylaws were provided to each member of the Commission, but review of the. bylaws can be added to the agenda. ADJOURNMENT There was a motion by Commissioner Gaynor and seconded by Commissioner Donnelly to adjourn the meeting. The motion hissed. The Brooklyn Center IIousing Commission adjourned 7/18/23 -12- MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION SEPTEMBER 19, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Enger at 7:42 p.m. MEETINGATTENDEES Chair Gretchen Enger Vice Chair Michael Donnelly (Absent) Commissioner Lori Best-Deyoe Commissioner Laura Freund Commissioner Jerry Gayflor Commissioner Elizabeth Riel (Excused) Commissioner Florence Williams (Absent) City Staff present: Community Development Director and Staff Liaison Jesse Anderson and Associate Planner Krystin Eldrige. Also present: Brian Bosire, ACER; Samuel Spaid, HOME Line; Jessica Szuminski, Housing Justice Center; Pastor Paul Bushey; Trent Grammer, ACER; Crest Resident Khadija Hardin; New Crest Resident; WELCOME AND INTRODUCTION The Commissioners and Staff introduced themselves. APPROVAL OFAGENDA Chair Enger suggested amending the agenda to reflect the accurate date of the October Housing Commission meeting. There was no objection by the rest of the Commission. There was a motion by Commissioner Freund and seconded by Commissioner Gayflor to approve the agenda as amended. The motion passed. APPROVAL OFMINUTES There was a motion by Commissioner Freund and seconded by Commissioner Best-Deyoe to approve the minutes for the July 18, 2023 Housing Commission meeting as submitted. The motion passed. PRESENTATION ON TENANT PROTECTION HISTORY AND FEEDBACK FROM TENANTSAND ADVOCACY GROUPS 9/19/23 -1- Community Development Director and Staff Liaison Jesse Anderson gave an overview of the history of tenant protection in the City. The most recent ordinances require a just cause for non - renewal of a lease and create a 30-day notification requirement for eviction. Mr. Anderson stated the City first considered tenant protection ordinances in 2018 with a 90-day notice of lease changes. In 2021, a Fair Housing Policy was adopted. Following the eviction moratorium and a legal case in St. Paul regarding tenant protection rights, the City began working on the just cause non -renewal and eviction notification timeline. The Housing Commission submitted the proposals for the two items in November 2021. Following that, there were some public hearings and discussions where the Council heard from tenants and landlords. There was some discussion regarding alternative timelines to the 30-day eviction notification and other compromise attempts. Mr. Anderson noted there has been some changes in State legislation that impact tenant protection rights, so the Council requested the Housing Commission review the tenant protection ordinances. BRIANBOSIRE —ACER INC Brian Bosire thanked the Commission for their service to the City. He introduced himself as an organizer and Brooklyn Center resident. He explained social justice includes housing justice. The process for eviction and just cause non -renewals need to include equitable outcomes for both parties. Mr. Bosire pointed out many tenants and landlords are still unaware of the new regulations surrounding non -renewals. The City could be doing more in terms of community education on housing rights. As he has educated residents about the ordinances, the tenants are consistently excited. Mr. Bosire noted some people have concerns about differences in regulations between various cities. However, Brooklyn Center has the opportunity to continue to lead in the Twin Cities. Tenants still cite lack of accountability for landlords. He encouraged the Housing Commission to uphold the tenant protection rights previously based by the Commission. Chair Enger asked which method Mr. Bosire recommends to connect with more people in the community. Mr. Bosire stated the communication channels have to include multiple strategies to meet people where they are at. Some examples include social media, radio, and television. Communication can also be a collaboration with local community organizations, such as ACER. SAMUEL SPAID — HOME LINE Samuel Spaid introduced himself as an attorney with HOME Line, which is a statewide organization that provides free legal advice to tenants among other things. It has been a little over a year since the ordinances were passed, and HOME Line continues to support them. The ordinances allow people to stay in their homes and promote stability. The eviction timeline requirements. allow tenants to seek out legal advice or learn about their options. The protection offered in the just cause requirement for non -renewals is vital to protecting tenants from retaliation or other biased non -renewals. 9/19/23 -2- Mr. Spaid noted several landlords cited Brooklyn Center as having the most severe tenant protection ordinances in the State. The landlords with that belief don't seem to support tenant protections or promoting safe and stable housing. Brooklyn Center should continue to promote safe and stable housing. Mr. Spaid added Brooklyn Center's ordinances are more detailed than the State's upcoming legislation. The legislation also allows for cities to pass their own ordinances to further protect tenants. OTHER GROUPS Trent Grammer, graduate student in public policy partnering with ACER, explained he has been looking at statewide eviction data. There are significant health and educational impacts on people who have experienced evictions. Some research has been done on just cause non -renewals in California, which has shown positive impacts of such policies. Mr. Grammer provided a handout to the Commissioners. The handout showed a summary of eviction trends over time. Causal inference is difficult, but the information is still descriptive of the experiences in Brooklyn Center. Mr. Grammer explained Brooklyn Center and Brooklyn Park are very similar demographically. The two cities had very similar eviction rates up until the end of February 2022. Since then, the Brooklyn Park eviction rates increased while Brooklyn Center's remained flat. Since the time the tenant protection ordinances were adopted, there was a decrease of 2.9 weekly evictions per 10,000 renter -occupied housing units. Mr. Grammer noted the Statewide context for the timing was following the cessation of the eviction moratorium. Most places have had an increase in evictions after the moratorium, but Brooklyn Center's flat statistic is a good indicator that the tenant protection ordinances have been successful. Pastor Paul Bushey agreed a number of local organizations are more than willing to provide educational information regarding tenant protections. He explained he lived in The Crest Apartments for more than a decade. The building's long-term renovation during that time had dire impacts on residents, particularly for disabled tenants. For 35 days, one tenant was told he was unable to use the kitchen nor unpack his things during his apartment's renovation. Brooklyn Center should consider additional tenant protection ordinances. Kadija Hardin noted her agreement with the comments made by Pastor Bushey. In her eight years living at The Crest, there have been eight different managers. She experienced similar issues during apartment renovations as cited by Pastor Bushey. After 7.5 years in one unit, she was forced to move to a new unit. She stayed in her unit for six weeks unable to use her kitchen. Ms. Hardin explained she was the last of the tenants who received reimbursement for food reimbursements, but all tenants were made the same promises. Hotels were provided for two of the 13 floors of the building, and two floors of the building along with five or so residents on her floor received any financial compensation. Later on, management claimed the check recipients where committing a form of fraud. 9/19/23 -3- Ms. Hardin stated The Crest Apartment recently had an afternoon shooting in the parking lot. Nothing was done by management. She stated she doesn't feel safe in her apartment anymore, and management is not doing anything to respond to safety concerns. Ms. Hardin added many tenants are receiving notices that their rent is unpaid, although that is not the case. She has approached management multiple times regarding the issue. She has been fined for random things without explanation or just cause. Jessica Szuminski, attorney with the Housing Justice Center, explained her organization provides advocacy and legal support all over the State. They are attempting to promote similar ordinances in other jurisdictions. The ordinances make the rental process more predictable and creates time for tenants to seek out assistance when faced with an eviction. The ordinances also empower tenants to advocate for better living environments without fear of retaliation. Additionally, long- term housing stability is made available to minority groups by addressing long-standing systemic issues. Since tenants are unable to negotiate leases, it is vital that entities such as Housing Commissions and City Councils advocate for renters in their communities. Ms. Szuminski pointed out the statistics related to decreased evictions are compelling. However, they don't begin to address undocumented forms of evictions. There is a low vacancy rate in the City, so when tenants are displaced, it makes it even harder for them to stay in their home communities. There is also a lack of affordable housing available throughout the Metro. The 30- day eviction notice requirement allows the tenant to look into legal options, financial support opportunities, or find another place to live. Plus, alternatives to evictions save the time and money for both tenants and landlords. On behalf of the Housing Justice Center, she urged the Commission to preserve the ordinances. New Crest Resident explained she is newer to the Brooklyn Center community and lives in the new Crest Apartments. The advertisements and promises made about the building and its amenities are false. Even though the building was new, the elevator was broken the day she moved in and has since been broken multiple times. New Crest Resident noted she is disabled, and it is not physically possible for her to use stairs. Management never shows up to work on time, and some days no one shows up. The fobs are inconsistent, and she has yet to be able to access the promised heated garage. Also, the exercise room is used for nothing but storage. New Crest Resident noted the main manager is difficult to work with and not a people -person. She doesn't answer questions asked by tenants. New Crest Resident explained she needs a help bar near the toilet and in the shower. Her disability advocate did the paperwork with the main manager in July 2023. The manager claimed this never happened. New Crest Resident and her advocate's supervisor met the manager in person. The manager finally acknowledged that she made a mistake, but there are still no help bars installed. New Crest Resident added there is a security guard that is there only to protect the staff from tenants. The main level has random people in it at all hours, which is unsafe. She also shared experiences with a previous apartment in Minneapolis. 9/19/23 -4- Chair Enger thanked the commenters for sharing their experiences with the Commission. NEW NEIGHBOR BAGS Mr. Anderson stated some of the new neighbor bags are ready. He offered for the Commissioners to grab the bags divided by neighborhoods to distribute on their own. Also, some badges are ready. Chair Enger suggested wearing Brooklyn Center shirts to have more success with delivering bags. Mr. Anderson stated he would work with Communications Staff to see if they have available t- shirts. FOLLOW UP OCTOBER 17. 2023 — TYPE IVREPEA T RENTALS, TENANT PR 0 TECTION FOLL 0 W UP Staff Liaison Jesse Anderson explained the meeting will go into more depth on Type IV repeat licenses, and that will be combined with other license categories for the Council to consider. Also, there will be an opportunity to discuss the commentary from the present meeting. Mr. Anderson added the Opportunity Site needs some discussion. The Council has developed an infrastructure guide for the redevelopment, and there is a Master Plan for the site. The planning could be reviewed by the Housing Commission. Alternatively, there could be discussion about another topic of interest for the Commission. For example, there could be a presentation on the new tenant protection legislation beginning in 2024. Chair Enger stated she would like a presentation on new tenant protection legislation beginning in 2024. Mr. Anderson stated HOME Line has good resources on the topic, and they could invite Mr. Spaid to present at that time. There are some strong additions like a required eviction timeline. However, there is nothing about a just cause non -renewal. Mr. Anderson added previous Commissions have considered repercussions for landlords that provide false maintenance charges or deny renters based on their income. NOVEMBER 21, 2023 — THANKSGIVING BREAK? MEET WEEK BEFORE OR AFTER Mr. Anderson stated the date of the meeting also needs to be discussed because of its proximity to Thanksgiving. Chair Enger stated she was available on November 21, 2023 for a meeting. There was a consensus by the Commission to keep the meeting on November 21, 2023. Chair Enger asked what management company handles The Crest Apartments. Mr. Anderson stated Aeon manages The Crest, and they tend to focus on low-income housing. It's a nonprofit, mission -based organization. Staff has worked with the Fire Department regarding the broken elevator. The elevator cable broke sooner than the organization had budgeted for. Since they are a non-profit organization, they have been raising funds to replace the cable. Mr. Anderson added the nonprofit grew immensely in a short amount of time. The goal was to prevent developers fiom turning the buildings into market -value units and to preserve affordable housing. They have good intentions, but they grew too quickly. 9/19/23 -5- ADJOURNMENT There was a motion by Chair Enger and seconded by Commissioner Best Defoe to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 9:02 p.m. 9/19/23 -6- MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION OCTOBER 17, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Enger at 7:10 p.m. MEETINGATTENDEES Chair Gretchen Enger Commissioner Lori Best-Deyoe Commissioner Laura Freund Commissioner Jerry Gayflor Commissioner Florence Williams Vice Chair Michael Donnelly was absent and excused. Commissioner Elizabeth Riel was absent. City Staff present: Community Development Director and Staff Liaison Jesse Anderson, Associate Planner Krystin Eldridge, and City Council Liaison Kris Lawrence -Anderson. Also present: None. APPROVAL OFAGENDA There was a motion by Commissioner Best-Deyoe and seconded by Commissioner Freund to approve the agenda as submitted. The motion passed. APPROVAL OFMINUTES. SEPTEMBER 19, 2023 There was a motion by Commissioner Best-Deyoe and seconded by Commissioner Freund to approve the minutes of the September 19, 2023 meeting as submitted. The motion passed. LANDLORD/TENANT ORDINANCE FEEDBACK DISCUSSION Commissioner Enger summarized the general discussion of the feedback heard from the landlords and tenants regarding the Tenant Protection Ordinance. She mentioned comments made by Marty and Eric fiom the Landlord Housing Commission Meeting; the commenters expressed the difficulty evict troubled tenants with the 30-day notification requirement in place. They added the Ordinance presents burdens to the landlords to manage the different expectations throughout different jurisdictions. Overall, the preference of the landlords is for the City to adopt an Ordinance in -line with the State's recommended 14-day pre -eviction notice timeline. Commissioners expressed confusion about the timeline and process around pre -eviction and actual eviction notices. There were questions about how much time a tenant has when an actual 10/17/23 -1- DRAFT eviction notice is received by a tenant. Chair Enger also relayed a summary of feedback from the session with Crest Residents, Tenant Advocates, and HOME Line. During the meeting, Samuel Spaid, Housing Attorney with HOME Line pointed out how rates of eviction climbed significantly in other cities compared to Brooklyn Center. The Commissioners also asked questions about the meaning of just cause non -renewals. Commissioner Williams explained she works within the shelter system. She stated that many of the shelter habitants list non -renewal of their lease as their reason for needing shelter. Commissioner Williams expressed her support of the 30-day ordinance. City Council Liaison Kris Lawrence -Anderson explained that the undue burden the City places on landlords to evict tenants. She noted if landlords cannot evict problematic tenants, then they may not want to continue supporting the Brooklyn Center rental market. City Council Liaison Lawrence -Anderson stated she supports the option for a 14-day ordinance within Brooklyn Center to promote a business -friendly environment and avoid the burden of vacant buildings in the City. City Council Liaison Kris Lawrence -Anderson noted the hardship of balancing business owner interests and renter interests. There is a wholistic view that needs to be considered when the evaluating City dynamics. Property taxes should also be considered when evaluating these ordinances as well. Commissioner Williams added she is concerned about property taxes as well. She stated she is experiencing the same increases and would prefer to have lower taxes. However, she would prefer tax dollars be used to support the community members rather than landlords. Commissioner Gayflor stated he is unsure about which eviction timeline he supports due to the lack of data for how each timeline impacts renters. Community Development Director and Staff Liaison Jesse Anderson explained the data may be unavailable as it is not information renters nor landlords report. Commissioner Freund noted she is generally in support of the 30-day timeline ordinance because of the power imbalance between renter and landlord. The Commission should consider the social dynamics of discrimination within the system when drafting the Ordinance. She added she would support even stricter tenant protections on landlords. Commissioner Williams and Chair Enger both consider equitable outcomes for both Landlord and Tenant regarding the Tenant Protections Ordinance and Commissioners Williams, Gayflor, and Freund expressed their support of upholding the current Ordinance. 10/17/23 -2- DRAFT There was a motion by Chair Enger and seconded by Commissioner Williams to recommend the City Council uphold the current Tenant Protection Ordinance. The motion passed. 7100 BROOKLYN BOULEVARD — HOUSING PRESENTATION Associate Planner Krystin Eldridge presented the Planning Commission application proposed for 7100 Brooklyn Boulevard, 7100 Brooklyn Boulevard will be a 17-unit multi -family residential property. It would be a conversion from office to residential. It was originally a credit union. In its location to the North -Brooklyn Center United Methodist Church and to the south are office condos. To the West are single family residentials and a stormwater pond directly to the West. Planning Commission was not in support of the project and neighbors surrounding the property were not in support either. Chair Enger asked about feedback from surrounding properties and the minutes and recording from the meeting. She also asked how long the building was vacant and what the prior use was. Ms. Eldridge explained the other business tenants would prefer the business district be maintained and expressed concern about increased traffic. Additionally, the church at the north end of the development requested installation of a fence along the property line. Developers were receptive to installing a fence and noted a fence was already proposed for the project. A simple extension of the fence would appease the church's request. Commissioner Freund and Williams noted their support of more housing and diversity of housing choice within Brooklyn Center. FOLLOW TIP NOVEMBER 21, 2023 — REPEAT RENTALS — TYPE IV Staff Liaison Jesse Anderson stated the following Housing Commission meeting would address repeat rentals. ADJOURNMENT There was a motion by Commissioner Williams and seconded by Commissioner Best-Deyoe to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:45_ p.m. "Ic Chair Enger 10/17/23 -3- DRAFT MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION NOVEMBER 21, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chair Enger at 7:01 p.m. MEETINGATTENDEES Chair Gretchen Enger Vice Chair Michael Donnelly (excused) Commissioner Lori Best-Deyoe Commissioner Laura Freund Commissioner Jerry Gayflor (absent) Commissioner Elizabeth Riel Commissioner Florence Williams (absent) City Staff present: Xiong Thao Housing Supervisor and Associate Planner Krystin Eldridge. Also present: None. APPROVAL OFAGENDA (0:20) There was a motion by Commissioner Enger to approve the agenda as submitted. Associate Planner Krystin Eldridge offered a friendly amendment to the agenda to add two items under Other Business. (1:15) The motion was seconded by Commissioner Freund to approve the agenda as amended. The motion passed. APPROVAL OFMINUTES (1:40) There was a motion by Commissioner Best Defoe and seconded by Freund to approve the October 17, 2023 Housing Commission meeting minutes as submitted. The motion passed. REVIEW REPEAT TYPE 4 LICENSE (2:15) Thao explained the City of Brooklyn Center has had a rental licensing program since the 1970s. In 2010 the City Council adopted modifications to the Ordinance which created a four -tier performance -based system. Then in 2018, the program was modified. Each Category had an increase in one violation to allow for more properties to qualify for a higher license. Monthly updates and ARM Meeting requirements were removed. Thao noted the Rental Ordinance covers rental license requirement and license renewal, rental license types and length, requirements for each license type, license suspension and revocation 11/21/23 -1- process, police calls for service and what is considered a validated nuisance call, crime free housing program requirements, and tenant protections. Thao stated the rental licensing criteria is grouped into single-family and duplexes. He referenced a table that includes the allowed property code violations per unit based on each license type. Police call rates are based on the average number of valid police calls per unit per year. Qualified calls include disorderly conduct and Part I crimes, as defined by the Uniform Crime Reporting System, include homicide, rape, robbery, aggravated assault, burglary, theft, auto theft, and arson. Calls related to domestic violence are not qualified as service calls. He referenced a table that shows the impact on the license category based on validated calls. Thao then referenced a table with rental licensing type requirements with four licensing category types. Each licensing category has a different licensing period, minimum inspection frequencies, crime -flee housing requirements, and action or mitigation plan requirements. Thao stated the topic at hand is a property that would be a repeated type IV license. There are two ways to qualify for a repeat type IV First, it could be related to code violations. When a rental needs its license renewed, there is a complete inspection done to check for code violations. If the code requirements are not met, then the property may have to retain a type IV license. Thao noted the other way to be a repeated type IV license rental is due to mitigation plan requirements. That could be failure to turn in a mitigation plan or not meeting the Crime Prevention Through Environmental Design (CPTED) requirements such as a security assessment and an eight -hour crime -free housing course. Thao referenced a pie chart with active rental licenses by type. 44 percent of licenses in Brooklyn Center are type I. Type II licenses make up 38 percent of the rentals, and type III licenses make up 13 percent of rentals. Lastly, type IV licenses are only eight percent of active rentals in the City. Thao referenced a table titled Type IV License Review. In 2023, there are a total of 125 repeat type IV licenses, whether it be for the second, third, fourth, etc. time. 33 of those were due to code violations only. 92 of the properties did not meet mitigation plan requirements. 21 met mitigation plan requirements but had code violations. 79 percent of previous type IV rentals improved on their inspections. Thao pointed out in 2023, 68 licenses became a second -time type IV license. 39 became a third - time type IV license, 12 became a fourth -time type IV license, 6 became a fifth -time type IV license, and 3 became a sixth -time type IV license. There were several factors impacting the increased repeat type IV licenses such as setbacks from COVID-19 and deferred maintenance due to financial constraints. There was also a lot of new licenses that were applied for, but the owners did not understand how the program works and the additional requirements needed for a type IV license. Thao stated there is a portion of the rental ordinance regarding license suspension, revocation, denial, and non -renewal. In the event that a license is suspended, revoked, or not renewed by the 11/21/23 -2- City Council, it shall be unlawful for the owner or the owner's duly authorized agent to thereafter permit any new occupancies of vacant or thereafter vacated rental units until such time as a valid license may be restored by the City Council. Licenses may be suspended for up to 90 days and may, after the period of suspension, be reinstated subject to compliance with this Chapter and any conditions imposed by the City Council at the time of suspension. Licenses that are revoked will not be reinstated until the owner has applied for and secured a new license and complied with all conditions imposed at the time of revocation. Upon a decision to revoke, deny or not renew a license, no approval of any application for a new license for the same facility will be effective until after the period of time specified in the Council's written decision, which shall not exceed one year. Associate Planner Krystin Eldridge asked if landlords are typically receptive to the process. Thao confirmed landlords tend to be responsive. Ms. Eldridge stated in Minneapolis, renters don't have to pay rent for unlicensed rentals. Thao stated the issue is currently being determined by the courts. Chair Enger asked if it is possible for a landlord to catch up since the inspections are every six months. Thao confirmed it is possible a landlord to get out of the cycle of repeat type IV licenses. The goal of the updates to the licensing process in 2010 was to create a more proactive approach rather than a reactive one. Thao stated the Council wanted the Housing Commission to provide feedback. It will be up to Staff Liaison Jesse Anderson to determine the method of providing feedback. Chair Enger asked what kind of feedback the Council is expecting. Thao explained there isn't a specific direction from Council regarding type of feedback. It is also unclear what the Council will do with the information. (32:55) Commissioner Riel asked how the City collects for Thao stated some property owners will come in and pay their administrative citation. If the citation is unpaid, it will be rolled over to the property taxes. Commissioner Riel asked where the money goes. Thao stated any citations, abatements, utilities, and so on goes entirely to the City. Funds only go to the County for special assessments. Thao pointed out there is also an appeal process available to landlords to object to fines. He shared an example of a recent property owner that went through the appeal process. Staff doesn't recommend abatement in the unpaid citation process because they want the rental to be successful. In the recent appeal, the rental manager was at fault rather than the property owner. Thao added Minneapolis has a similar tiered system related to code violations and severity. Chair Enger noted Staff returns every few weeks to ensure the violations are corrected. Thao confirmed that was correct. The property owner also has the opportunity to notify Staff when they are ready for an inspection. Chair Enger asked if there is a possibility more code violations could be found. Thao stated Staff only focuses on original violations in terms of the impact on the current 11/21/23 -3- licensing application. However, it could count against the licensing application in a fixture application process if the code violations remain. CHAIRPERSON'S REPORT Chair Enger stated she didn't have a report to share. CITY COUNCIL LIAISON REPOR T City Council Liaison Lawrence -Anderson was absent. OTHER BUSINESS FUTURE MEETINGS: DECEMBER 19, 2023 Ms. Eldridge asked if there should be a meeting December 19, 2023. Thao pointed out there is only one Council meeting in December which is focused on the budget. It was the consensus of the Housing Commission to cancel the meeting for December. ULI HOUSING STUDY Thao explained the Urban Land Institute conducted a study regarding housing in Brooklyn Center. It provides an overview of the housing landscape and provides recommendations. Chair Enger noted there are short-, medium-, and long-term suggestions in the study. It would be nice for the Housing Commission to receive a presentation on the study. Ms. Eldridge stated she reached out to ULI to request a presentation early in 2023. The respondent offered a virtual meeting and explained the primary researcher on the project no longer works with ULI. The presentation could be January 16, 2024 or February 20, 2024. Chair Enger stated she would be comfortable with a virtual meeting. She asked if the alternative representative would be aware of what the City has implemented from the recommendations. Ms. Eldridge stated she could speak with Mr. Anderson and Thao to notify ULI what recommendations have been addressed. Ms. Eldridge provided a brief update on Wangstad Commons as ground has been broken for construction. However, most of the progress won't begin until after the cold months. Ms. Eldridge added she welcomes any ideas for meeting topics for her to coordinate in 2024. CIIAIR/VICE CHAIR APPOINTMENT Ms. Eldridge pointed out a new Chair and Vice Chair will be appointed in 2024. She requested Commissioners consider their interest in serving in those roles. Also, Vice Chair Donnelly's tern is coming to an end, but he expressed interest in continuing for another tern. ADJOURNMENT (50:17) There was a motion by Commissioner Enger and seconded by Commissioner Best Defoe to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 7:51 p.m. 11/21/23 -4- i Chair Enger 11/21/23 -5.