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HomeMy WebLinkAbout1975 09-09 HCMCall to Order Roll Call Approval of Minutes 8 -5 -75 Bylaws Apartment Licensing Review 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 SEPTEMBER 9, 1975 CITY HALL The Brooklyn Center Housing Commission met in regular session and was called to order by Chairman Howard at 7:30 p.m. Chairman Howard, Commissioners Ward, Magnuson, Kohrt, Hastings, Weitzel, Haroldson and Be3kier. Also present were Councilman Bill Fignar and Administrative Assistant Ron Warren. The secretary noted that Commissioner Plummer had notified him that she would be approximately ope -half hour late for this evening's meeting. Motion by Commissioner Weitzel and seconded by Commissioner' Hastings to approve the minutes of the August 8, 1975 meeting. The motion passed unanimously. Chairman Howard introduced the first item of business on the agenda, the proposed change to Article IV of the bylaws. He noted that the change constituted a rearrangement of the wording in that Article to clarify the procmdures to be followed regarding attendance at Comrission meetings. Following a brief discussion, there was a motion by Commissioner Hastings and seconded by Commis sioner Weitzel to approve the amendment to Article IV of the bylaws. The motion passed unanimously. The Chairman recognized the secretary who updated the Commission on the City's apartment licensing program. He stated that as of September 8, 1975, the City Council had authorized the issuance of licenses for 57 apartment complexes, 5 single family dwelling units and 1 two family dwelling unit. He further stated that the 57 apartment complexes approved for licenses amounts to approximately 75% of the apartment complexes in the City. He noted that the licensing is proceeding rather smoothly and it is expected that all apartments will be licensed in the near future, possibly as early as the end of October. The secretary then showed the Commission a map indicating the location of apartments that have been approved for licensing. Following the report a brief discussion ensued with the secre- tary answering Commissioners' questions regarding apartment licensing. Commissioner Ward noted that the Central Neighbor- hood Advisory Group had recently been asked to study a rezoning application and make a recommenda- tion to the Planning Commission. He asked the Chairman for an explanation as to the responsi- bilities of these Neighborhood Advisory Groups. The Chairman noted that these groups provide input regarding neighborhood attitudes and opinions relative to planning and housing matters at the request of the Planning Commission. It was further noted that members of the Housing Commis- sion, appointed from various neighborhoods, are members of their respective Neighborhood Advisory Groups. As a point of information, Councilman Fignar passed out'a copy of a le'tter sent to Mayor Cohen from the Minnesota Tenants Union. He stated that the Tenants Union had been previously funded with federal money through the City of Minneapolis. The federal money is no longer available and the City of Minneapolis will only continue the funding of services provided for residents of Minneapolis. He further stated that the Tenants Union has contacted various municipalities seeking approximately $2,000 $3,000 to service tenants in the particular municipalities. Councilman Fignar noted that the City Council had decided not to participate in this funding endeavor because of a Council policy of not funding various interest groups of this nature. He stated that this is not a priority item as the Council sees it and participation in funding such a special interest group could lead to further requests from other interest groups for similar payments. Commissioner. Plummer arrived at 8 :00 p.m. Neighborhood Advisory Groups Minnesota Tenants Union Newspaper Articles Bus Tour Recess MHFA Programs Report Councilman Fignar concluded his presentation by stating that he felt our Housing Maintenance and Occupancy Ordinance, if enforced and implemented in the way it was intended, would correct a great majority of the problems the Minnesota Tenants Union would handle. Commissioner Plummer reported that she had clipped newspaper articles about various housing matters and distributed them for the Commissioners' review. She noted particularly articles relating to rent subsidy grants in Dakota County and home improvement grants in Bloomington. Councilman Fignar noted that the secretary was in the process of preparing a bus tour for observing the housing stock in Brooklyn Center for a Saturday morning during the first part of October. He further noted that the City Council and Planning Commission members would be invited to attend. The Brooklyn Center Housing Commission recessed at 8:20 p.m. and resumed at 8:45 p.m. Chairman Howard recognized Commissioner James Kohrt who proceeded with a lengthy report on the various programs of the Minnesota Housing Finance Agency. Commissioner Kohrt distributed informa- tion furnished by the Minnesota Housing Finance Agency relating to the Home Ownership Loan Program, the Apartment Development Loan Program and the Home Improvement Loan Program. He stated that he plans to stay in contact with the Minnesota Housing Finance Agency and continue to bring to the Commission information of this nature. Commissioner Kohrt began his report by noting briefly some of the history relating to government sponsored home programs. He explained that the federal government became involved in these programs with the intention of hopefully pro- viding a decent home for everyone. He stated that the federal government had poured a lot of money into various programs such as the 235 and 236 housing programs. He noted that recently the federal government has backed off somewhat in their involvement in new housing programs. He further explained that state governments, through such agencies as the Minnesota Housing Finance Agency, are becoming more involved in the planning and implementing of new housing programs. He stated that in the 1940's one out of every four homes in the United States was considered a poverty home. He noted that this figure has been reduced so that now one out of seven homes are considered poverty homes. He further stated that although this is an improvement, it does not meet the goal of providing everyone with a decent place to live. Commissioner Kohrt noted that fiscal policies and economic conditions greatly affect the housing industry and cited the present finance and construction problems as evidence of how the industry is affected. The Commissioner went on to explain that the purpose of the Minnesota Housing Finance Agency is to provide decent, safe and sanitary housing primarily for low and moderate income people. He briefly reviewed three MHFA programs. He explained that the Home Ownership Loan Program enables participating lending institutions such as commercial banks, savings and loans, etc., to provide loans to eligible Minnesota residents at below market interest rates. He stated that the mortgage loans financed by this program must either be insured by the FHA or g _ranteed by the VA, and that the loans will be made at an interest rate of 8% for a maximum term of 30 years. He further stated that to be eligible the applicant's "adjusted gross income" must not exceed $16,000 and the sale price or the appraised value of the home to be purchased must not exceed $36,000 in the metropolitan counties or $34,000 in the non- metropolitan counties. Kohrt concluded his presentation on this program by noting that individuals can obtain further information by con- tacting participating lending institutions listed with MHFA. Commissioner Kohrt next explained the MHFA Apartment Development Loan Program. He stated that this pro- gram is essentially a financing plan in which mort- gage loans are made available for the private con- struction of multi-family housing for low and moderate income persons and families. He noted that the housing developed through this program is privately designed, constructed, owned and managed with loans being granted for up to 90% of development costs. He .oriefly explained some of the eligibilitv require- ments for developers and the type of developments permitted under this program. He further noted that residents of these apartment developments may qualify for other assistance programs such as the Section 8, Housing Assistance Payments Program, which provides rent subsidies for eligible recipients. Commissioner Kohrt concluded his report of thin program by noting that the apartment development program is probably not as vital a program for a developed community such as Brooklyn Center, but is for the newer, un- developed communities. The final MHFA program Commissioner Kohrt reported on was the Home Improvement Loan Program. He stated that it was his opinion that this program can be of great importance to Brooklyn Center residents, particulrlv in light of the recently adopted Housing Maintenance and Occupancy Ordinance. He noted that this program had gotten underway approximately two weeks ago and is designed to make low interest rate home improvement loans available to families through partici- pating banks, savings and loan associations and public bodies. Commissioner Kohrt explained to be eligible for these loans, a property owner must ha\': an annual "adjusted gross income" not _r excess of $16,000 and be a reasonable re,i: risk. He stated that a maximum of $10,30 could be borrowed, that the interest rate 2i these loans would be 7 3/4%, that the maxi, length of the loan could be for 12 yearz,. that a minimum monthly payment of $10 ws expected. He briefly explained what impro ments could be made and what properties were eligible for these loans. He also passed out pamphlets explaining the program to the Com- missioners. Commissioner Kohrt concluded his report by stating that the Minnesota Housing Finance Agency is willing to send speakers to Com- mission meetings to explain in more detail these programs and he suggested the Commis- sion explore this possibility. Following a question and answer session on these various programs, Chairman Howard com- mended Commissioner Kohrt for his excellent presentation. Motion by Commissioner Haroldson and seconded by Commissioner Ward to adjourn the meeting. The motion passed unanimously, The BrooK:lyn. Center Housing Commission adjourned at 9:50 pra. Chairman Adjournment