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HomeMy WebLinkAbout1975 11-12 HCMa Call to Order Roll Call Approval of Minutes 10-7-75 Introduction of Guest Speaker Presentation by Mr. Rollie Comstock 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 NOVEMBER 12, 1975 CITY HALL The Brooklyn Center Housing Commission met regular session and was called to order by Chairman Howard at 7:40 p.m. Chairman Howard, Commissioners Plummer, Magnuson, Hastings, Weitzel and Haroldson. Also present were members of the Brooklyn Center Chapter of the League of Women voters, Rollie Comstock, Councilman Bill Fignar, and Administrative Assistant Ron Warren. Excused from this evening's meeting were Com- missioners Beikler and Kohrt; absent from this evening's meeting was Commissioner Ward. Motion by Commissioner Hastings and seconded by Commissioner Haroldson to approve the minute of the October 7, 1975 meeting. The motion passed unanimously. Acknowledgement of Chairman Howard stated that it was a pleasure to League of Women have members of the League of Women Voters present Voters for this evening's meeting. He commented that the Housing Commission was indebted to the League for the help their Ad Hoc Committee had given the Commission in reviewing the Housing Maintenance and Occupancy Ordinance, prior to its adoption. Chairman Howard then proceeded to introduce Mr. Rollie Comstock, Vice President of Communi- cations for Northern States Power Company and a member of the Governor's Commission on Minnesota's Future. He noted some of Mr. Comstock's achieve- ments and expertise in housing matters, and explained that he would be addressing the Commis- sion on present and future housing problems in Minnesota. Mr. Comstock began his presentation by explaining that the Governor's Commission on Minnesota's Future was established in 1972 to, in essence, "eyeball Minnesota's future", one area being housing. He stated that his presentation is based on a discussion of the findings presented in the Commission's report entitled Housing in Minnesota, An Analysis of Housing, Present and Future in Minnesota. He hoped that by his presentation he could share the scope and extent of the housing problem in Minnesota. Comstock cautioned the Housing Commission that these conclusions are intended to give perspectives relative to the State as a whole and in some respects to the Twin Cities area, but that they have not been refined to necessarily meet the particular needs of Brooklyn Center. He stated that the first finding expressed by the Commission on minnesota's Future was that perhaps as early as 1978 or 1979, Minnesota will face a severe housing shortage which may continue for the next twenty or more years. This finding is based upon the present age structure of the population of Minnesota. Mr. Comstock reported that Minnesota will need an average of approximately 45,000 units each year for the next ten years to meet the demands for housing in that period. He noted that this is three times higher than the current rate of produc- tion and some thirty per cent above the largest number of units ever produced in one year in Minnesota. He further noted that along with the shortage in housing construction, the costs for producing new housing are escalating faster than consumer buying power. He stated that a majority of Minnesota families will discover that they are unable to find new housing that they can reasonably afford. The second finding of the Commission was that housing opportunities will be more limited and difficult for most citizens than they were during the last three decades. Comstock stated that in Minnesota the traditional desire or preference among the public is for large separate one-family homes. He further stated that economic conditions will force a large portion of people to turn to used homes, apartments or other types of multiple dwellings for shelter, not because of their desire for such housing but because it may be the only type of housing they will be able to afford. The Commission's third finding was that Minnesota will be unable to afford the immense public expen- ditures that will be required to make housing as accessible to the average citizen as it has been since World War II. Mr. Comstock noted that the anticipated competing social claims for limited public funds and the past experience of governmental 11-12-75 -2- housing programs along with the enormous costs, makes it irrational to expect to duplicate housing opportunities of the past thirty years. He further noted that State policy should concede that proportionately fewer Minnesotans will own their own h mes and proportionately more will live in multiple dwellings. Comstock stated that one of the Commission's policy recommenda- tions to the Governor was to declare a moratorium on any further property tax relief programs for homeowners until the present tax structure can be re-evaluated and weighed against other public policy objectives. The fourth finding expressed by the Commission was that the State government's ability to signifi- cantly alter the broad trends in housing is clearly limited, but the State can fix on a specific target population for active aid in housing. He reported that the specific target for direct State housing aid should be the especially needy subgroups within the popula- tion, such as the poor, the aged, and Indians He further reported that these programs should be slanted heavily toward the providing of multiple dwelling units and away from single family homes in order to stretch scarce housing dollars. The fifth Commission finding was that the State can, at best, only attempt to ameliorate impending severe housing shortages. Mr. Comstock stated that the Legislature and local governments can only hope to ease the housing supply/cost crunch through indirect action for those whose incomes are average or above average. He further stated that the scope of such indirect action should be limited to that necessary to enable political acceptance of housing and programs for the severely economically disadvantaged. Finding number six of the Commission was that Minnesota now has a scant housing surplus. To exemplify this Mr. Comstock reported that today's useable housing inventory is essentially filled, particularly in the case of single family homes. He further reported that the State's vacancy rate is very low by national standards, with only about three per cent of all housing units vacant, with about three-quarters of these vacant units being multiple dwelling units. Comstock stated that a higher vacancy rate of three per cent for single family homes and six per cent for multi- dwelling units is deemed desirable because of the mobility traditionally required by most Americans. -3- 11-12-75 Tne Commission's seventh finding was that the preservation of the existing viable housing stock will be important in mitigating the housing/ supply crunch of the next twenty years. Comstock noted that maintenance and restoration of the existing housing stock will require State aid. The alternative of such maintenance and restoration programs would be that we would lose more of our existing housing stock than necessary and to attempt, at a much greater cost, to replace it with new units would be difficult if not impossible. He further noted that present building codes and property tax policies tend to discourage rehabili- tation and should be re-evaluated. The eighth Commission finding was that the bulk of Minnesota's current housing programs, carried out primarily by the Housing Finance Agency, do not appear to reach low income families. Mr. Comstock stated that the programs appear to be useful to the near poor and lower middle income groups, but not to the residents with incomes below the poverty level. He further stated that this is primarily due to the fact that the very poor simply do not enter that portion of the market to which existing MHFA programs are directed. The ninth finding expressed by the Commission was that Minnesota tax policies, based on a desire to encourage home ownership and alleviate high resi- dential property taxes, offer large monetary advantages for home ownership in one family home occupancy. Comstock exclaimed that from a housing standpoint, such incentives will become increasingly counterproductive as market forces move the State toward increasing proportions of multiple dwelling units and units that are rented rather than owned. He stated that this was another reason why the Commission recommended declaring a moratorium on any further property tax relief programs for home- owners until the present tax structure can be re-evaluated. Finding number ten of the Commission was that Minnesota lacks a centralized, comprehensive source of housing information and analysis. Comstock stated that the State needs improved data collection due to sharp changes in the housing picture since the 1970 census. He further stated that the need to anticipate future problems demands more information and more analysis, obtainable only by careful monitoring. He noted that this capability could be housed in the Minnesota Housing Finance Agency or in the State Planning Agency. 11-12-75 -4- Ad ..r The eleventh Commission finding was that the scope of the housing problem inpacts unevenly within various geographical regions in the State, thus, necessitating State housing programs be geographically sensitive. Mr. Comstock noted that analysis of the data available indicates wide variations within the State as to the scope and extent of housing problems. He stated that the Metro area characteristics vary from the rest of the State, and that even within a given region often there will be significant differences from county to county. He further stated that it will be important, but extremely difficult, to develop housing programs which reflect these regional variations. Following Mr. Comstock's presentation he answered questions from members of the Housing Commission and people in the audience. Chairman Howard thanked Mr. Comstock for his excellent presentation on a subject very pertinent to the Housing Commission. Motion by Commissioner Magnuson and seconded by Commissioner Plummer to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Housing Commission adjourned at 9:20 p.m. Chairman -5- 11-12-75