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HomeMy WebLinkAbout1976 02-10 HCMCall to Order Roll Call Approval of Minutes 1-13-76 Metro HRA Rent Assistance Program MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION FEBRUARY 10, 1976 CITY HALL The Brooklyn Center Housing Commission met in regular session and was called to order by Chairman Howard at 735 p.m. Chairman Howard, Commissioners Hastings, Ward, Magnuson, Kohrt, Weitzel and Haroldson. Also present were Councilman Bill Fignar, Director of Planning and Inspection Blair Tremere and Administrative Assistant Ron Warren, Chairman Howard reported that Commissioner Beikler, who is out of town, and Commissioner Plummer, who is ill, would be unable to attend this evening's meeting and were excused. Motion by Commissioner Hastings and seconded by Commissioner Haroldson to approve the minutes of the January 13, 1976 meeting as submitted. The motion passed unanimously® Chairman Howard introduced the first item of business, that being a presentation relating to participation in the Metropolitan Housing and Redevelopment Authority Rent Assistance Program. He stated that the secretary had prepared, for the Commission's consideration, a memorandum outlining the program and also a draft resolution urging the City Council to participate in the program. The Chairman next recognized the secretary who proceeded with a brief review of the Metro HRA Rent Assistance Program. He stated that the Metropolitan Council in 1974 was granted the authority to operate as an HRA in the seven county metropolitan area to act on behalf of, and with the consent of, municipalities to assist in the development of programs designed to meet the housing needs of low and moderate income people. He explained that the Rent' Assistance Program is intended to provide rent subsidies for low and moderate income families and certain individuals for existing housing, where eligible participants pay no more than 25% of their income toward rent. He briefly reviewed the structure of the program, pointing out that the Metro HRA acts as a con- tracting agency with HUD to procure funds for the program. He stated that the Metro HRA handles all dealings with the federal government for the participating municipalities. He briefly explained the particular aspects of the program relating to qualifications for assistance and the process an individual must follow to become eligible. He pointed out that the involvement in the administration of the program varies as to the extent of involvement desired by a particular municipality. He noted that all municipalities are required to inspect rental units that will be lived in by a certified recipient. He stated that the City has been in contact with the Metro HRA staff and has been infoimed that Brooklyn Center would be eligible to participate in the program. He further stated that the Metro HRA is seeking funding for an additional 300 500 units during the second round of the program in 1976. The secretary reported that the staff does not view this program as a panacea capable of solving all low income housing problems, but does see the program as a technique or tool to be used as one means of assisting low and moderate income families through rent assistance. The secretary briefly reviewed some of the undesirable features of the program such as the increased amount of paper work and staff time; the fact that "fair market rents" on which subsidy payments are based, seem low in comparison to what is the "going rate" for standard rental units; and that the program is subject to the Congressional appropriation process, which makes the long range stability of the program somewhat precarious. He noted that the Metro HRA is seeking to have the "fair market rents" adjusted upward by at least 10%. He then proceeded to review the advantages of the program which include: providing needy low and moderate income families and the elderly an opportunity for rent assistance; the scattered site aspect of the program, which is designed to permit an element of choice in housing loca- tion and to avoid concentrations of low income housing; and the fact that all property remains privately owned and on the tax rolls, thus avoiding a possible drain on the municipality for providing services without a source of revenue. The secretary concluded this report by stating thatthe City staff feels the advantages of such a program outweigh the disadvantages and recom- mended that the Commission adopt the proposed resolution urging the City Council to participate in the Metro HRA Rent Assistance Program. Following the presentation, a lengthy discussion ensued relative to particular aspects of admin- istering the program and to the general philoso- phies and concepts of rent assistance. Conunissioner Haroldspn expressed the opinion that with the "fair market rents" as they are, it seems that only a few large rental dwellings, such as Brookdale 10, would qualify as units available for the program. He questioned whether or not this possibility was contrary to the scattered site policy of the Metro HRA. He further questioned whether the City could limit the number of rent assistance participants living in a particular building or complex. The Director of Planning and Inspection responded that Brookdale 10, with its high concentration of one bedroom apartments, would not, in all likelihood, qualify for many family participants because of the occupancy standards of the program which allow no more than two persons of the same sex, except for husband and wife and infants or very young children, to occupy the same bedroom. He further stated that the City could not limit the number of rent assistance recipients in an apartment complex because of the discriminatory aspects of such a limitation. Regarding the scattered site policy of the Metro HRA, the Director of Planning and Inspection explained large concentrations of rent assistance recipients in one complex is not contradictory to this policy which is primarily geared to scattering low and moderate income recipients among different communities in the metropolitan area, and, therefore, hopefully in different rental dwelling complexes. Commissioner Magnuson questioned whether such rent assistance payments would keep recipients from desiring to improve their condition for fear of losing the subsidy. The secretary responded that the program is designed so that -3- 2-10-76 participants pay no more than 25% of their income toward rent. He stated that theoretically a person at the upper level of the assistance program would qualify but only receive a few dollars in assistance payments. He further stated that such a small assistance payment would not seem to deter someone from striving to increase their income and thus lose their assistance payment. Further discussion ensued relative to the Metro HRA °s allocation of subsidized units in partici- pating municipalities. Following the discussion, there was a motion by Commissioner Hastings and seconded by Commissioner Weitzel to adopt the proposed resolution urging the City Council to participate in the Metro HRA Rent Assistance Program. Following the motion and the second, a discussion ensued with Commissioner Kohrt commenting that he felt he did not have enough information on the subject to strongly urge the City Council to participate in the Metro HRA program. He expressed the opinion that not all of the disadvantages f the program have been thoroughly discussed and that he was somewhat confused as to the Metro Council's allocation process. The Director of Planning and Inspection responded that he has current information on the Metro Council's allocation plan for sub- sidized housing. Following further discussion, Commissioner Hastings withdrew her motion and Commissioner Weitzel with- drew her second of the motion. Chairman Howard recommended a recess, after which time the Director of Planning and Inspection could review his data. The Brooklyn Center Housing Commission recessed at 9:10 p.m. and resumed at 9:30 p.m. The Director of Planning and Inspection proceeded with a lengthy review of the Metropolitan Council's allocation plan for subsidized housing, which includes numerical goals for the distribution of subsidized housing in the metropolitan area by municipality. He explained that the allocation plan is for the three year period 1976 ®78, and will apply to all federal and state subsidized housing for low and moderate income persons to be funded in the area. He further explained that the intent of the allocation plan is to broaden the housing choice for low and moderate income persons by encouraging the development of sub- sidized housing in areas which have limited low Recess Continued Deliberation on Metro HRA Rent Assistance Program Amendments to Proposed Resolution and moderate income housing opportunities at present. He stated that Brooklyn Center's allocation has already been determined and, whether or not we participate in this rent assistance program, the Metro Council sees this allocation as our respon- sibility to meet. He next reviewed changes in the allocation plan, priority areas, the designation of community priorities and the municipal goals for communities and their application. He reported that Brooklyn Center is a first priority community, meaning the community has a high degree of available services and facilities that meet criteria such as the degree of urbanization, proximity to the metro centers, the availability of transit services, the availability of jobs and the availability of shopping facilities. He explained that the numerical goal for Brooklyn Center is 1.98% of the total allocation for the metropolitan area, or 238 units for low and moderate income persons for the three year period. Chairman Howard explained that because of another commitment he'must leave the Commission meeting. He stated that he was in favor of urging the City Council to participate in the Metro HRA Rent Assistance Program and also that he had conferred with Commissioner Kohrt and supported the Commis- sioner's proposed amendments to the draft resolu- tion. Chairman Howard left the meeting at 9:50 p.m. and Vice Chairman Hastings assumed the chair. The Director of Planning and Inspection proceeded to explain the Metro Council's process for reviewing housing assistance plans. Commissioner Ward left the meeting at 10:00 p.m. Following conclusion of the Director of Planning and Inspection's review, Commissioner Kohrt introducedibur amendments to the proposed reso- lution. He stated that he recommends the resolu- tion urge the City Council to "consider" partici- pation in the program rather than to urge direct participation. He further recommended qualifying the language of the resolution by noting in the first WHEREAS that the Commission has reviewed "information made available by the City staff"; in the third WHEREAS that the Commission is cognizant of "some of" the disadvantages of the program and in the final WHEREAS that the Commission feels the program may provide the opportunity for such housing" A brief dis- cussion ensued relative to the amendments. Following further discussion, member c,ames Kohrt introduced the following resolution and moved its adoption: HOUSING COMMISSION RESOLUTION NO, 76 -1 RESOLUTION URGING THE CITY COUNCIL TO CONSIDER THE METRO HRA RENT ASSISTANCE PROGRAM FOR BROOKLYN CENTER WHEREAS, the Brooklyn Center Housing Commis- sion has reviewed information made available by the City staff on the Metro HRA Rent Assistance Program; and WHEREAS, said program provides rent sub- sidies to low and moderate income families and to the elderly, the handicapped and disabled individual without the undesirable consequence of concentrating these recipients of assistance in large housing projects; and WHEREAS, the Housing Commission is cognizant of some of the disadvantages of the program such as the increased amount of paper work and staff time needed to administer the program and also that "fair market rents" may, in some cases, not be in line with present rent structures; and WHEREAS, the Housing Commission believes that the advantages of providing an opportunity to assist lower income families and the elderly outweigh the disadvantages of this program; and WHEREAS, the Housing Commission, as an ad- visory commission to the City Council, is charged with the responsibility of recommending programs which will provide quality housing for low and moderate income citizens; and WHEREAS, the Housing Commission believes that prticipation in the Metro HRA Rent Assistance Program may provide the opportunity for such housing. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Housing Commission to urge the City Council of the City of Brooklyn Center to consider 2 =10 °76 -6- Housing Commission Resolution No. 76 ®1 Adjournment participation in the Metro HRA Rent Assistance Program. BE IT FURTHER RESOLVED that copies of this resolution be forwarded to the Mayor and members of the Brooklyn Center City Council. The motion for the adoption of the foregoing resolution was duly seconded by member Dale Magnuson, and upon vote being taken thereon, the following voted in favor thereof: Dolores Hastings, Dale Magnuson, James Kohrt, Patricia Weitzel and Ray Haroldson: and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. Motion by Commissioner Weitzel and seconded by Commissioner Magnuson to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Housing Commission adjourned at 10:25 p.m. Vice Chairman Secretary -7- 2-10-76