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HomeMy WebLinkAbout2024.11.19 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 NOVEMBER 19, 2024 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chair Enger at 7:05 p.m. MEETINGATTENDEES Chair Gretchen Enger Commissioner Laura Freund Commissioner Alyssa Kuglin Commissioner Natalie O'Connor Vice Chair Florence Williams was absent and excused. City Staff present: Associate Planner Krystin Eldridge, Economic Development Manager Ian Alexander. Also present:. Associate Planner Krystin Eldridge pointed out Commissioner Elizabeth Riel resigned from the Commission, and there are two openings available. APPROVAL OFAGENDA This item was addressed after the Approval of Meeting Minutes. APPROVAL OF MEETING MINUTES There was a motion by Commissioner Bauer and seconded by Commissioner Freund to approve the October 15, 2024 minutes as submitted. The motion passed. APPROVAL OFAGENDA There was a motion by Commissioner Bauer and seconded by Commissioner Freund to approve the agenda as submitted. The motion passed. HOUSING TRUST FUND ORDINANCE — LANGUAGE REVIEW Associate Planner Krystin Eldridge noted there was a guest at a previous meeting who explained a Housing Trust Fund. Ms. Eldridge provided additional information on the Fund at a subsequent meeting. The Commission stated they were interested in reviewing potential language for an ordinance. Ms. Eldridge opened the meeting packet and explained the previous meeting's minutes were included in the packet for review. The proposed ordinance in the packet was drafted by an attorney. 11/19/24 -1- The Commission expressed a desire to serve a wider range of income levels. However, the Housing Trust Fund is intended to serve up to 80 percent Area Median Income (AMI). Ms. Eldridge stated an option is to add in a requirement that the Housing Commission review any funding allocations should the Housing Trust Fund come to fruition. Either way, the Housing Commission reviews most items related to housing, so it may be redundant. Ms. Eldridge added there was discussion about annual reports on the Housing Trust Fund. There are annual reporting requirements for the Fund. Ms. Eldridge pointed out the proposed ordinance begins with definitions of various terms related to a Housing Trust Fund and lists the various funding sources that may contribute to the Fund such as allocations from the Economic Development Authority (EDA), private donations, grants, bond proceeds, payment in lieu of participation of housing programs, matching funds, principal and interest from Local Housing Trust Fund repayments, sale of property, local government appropriations, development fees, and Tax Increment Finance (TIF) funds. Ms. Eldridge stated the fourth section details the possible use of the funds including making grants, matching, providing housing services, payment of administrative expenses, financing acquisition, demolition, and disposition of properties for housing projects, financing the construction of public improvements, financing rehabilitation or new construction of housing, and interim financing of public costs for housing projects. Ms. Eldridge noted Commissioner Williams previously expressed concern about all money going to developers. Instead, she would prefer for the funds to benefit existing residents. Ms. Eldridge explained the funds would be used to entice development and support current residents. Economic Development Manager Ian Alexander added Staff is trying to create a structure to use the funds across various projects and to obtain donations or grants. The Fund creates more options for developers and promotes a diverse tax base. He noted he would like to better engage the Housing Commission in his new position. Ms. Eldridge pointed out that the fifth section is regarding administration of the Fund. The EDA, which essentially means the Council, is the entity that administers the Local Housing Trust Fund. There are a couple of Staff members support the aims of the EDA. Chair Enger pointed out that the first paragraph regarding traffic stops and consent searches doesn't belong in the ordinance. Mr. Alexander noted the Fund isn't only for Local Affordable Housing Aid (LAHA) funding. Instead, the Fund can hold multiple funding opportunities. He hopes to collaborate with the Housing Commission regarding the organization of the funds and soliciting money for the funds. Ms. Eldridge explained LAHA is a tax Minnesota is collecting and redistributing to areas in need. Brooklyn Center has only received one payment because it is a newer program. However, the 11/19/24 -2- allocation will increase over time. Mr. Alexander added the City needs to prepare ways to use the money if they want to continue receiving significant funds through LAHA. Chair Enger pointed out "affordable" means a lot of things to different people. The City needs more money for it. There has been an emphasis on those with an income under 80 percent AMI, which doesn't serve all City residents. Overall, the Fund seems to have more benefits than drawbacks. Mr. Alexander noted the City isn't in a great financial situation. They need to create a Fund before they can collect any money. From there, they can create policies. He recently completed a grant application for $20 million related to environmental infrastructure. The money would be attractive to potential developers. Staff looks forward to more creative solutions. Mr. Alexander stated developers prefer to build low-income housing than pass off the project. They don't have a long-term commitment because the opportunity to make money in low-income housing is primarily in the building portion. Chair Enger asked if a Local Housing Trust Fund would have helped with the CLM Homes project. Mr. Alexander explained there were a number of issues with the project. Staff will give recommendations on how to use the Trust Fund. The CLM Homes was not a bad project, but its administration was an issue. Also, the neighbors were unsupportive of the project. Mr. Alexander stated there are lots of opportunities to build new types of housing. For example, he supports row housing. Developers tend to stick to plans they are familiar with. Chair Enger noted the costs to rehabilitate places such as the Sears site or Target site are cost - prohibitive. Mr. Alexander explained the City needs to entice developers by creating funding opportunities for diverse projects. Other cities have lots of poorly done townhouses, but Brooklyn Center can promote better developments. Chair Enger asked if the Housing Commission gets to choose how the funds are used. Ms. Eldridge stated she spoke with Community Development Director Jesse Anderson about the topic. Because there is a time frame on the use of the funds, he doesn't want to put too many restrictions on the money. The City doesn't know what type of money they may receive, but it likely most money would go towards rehabilitation projects at first. Commissioner O'Connor stated the Commission doesn't necessarily have to choose how to use the money before they receive it. The money may come in with its own restrictions, but the Local Housing Trust Fund is a way to receive the funds. Mr. Alexander noted he looks forward to discussing housing and project options with the Commission so they can guide the process. Staff will provide recommendations. Chair Enger stated the Council has the final say on anything within the City. Mr. Alexander stated the Commission can make policies that guide the decisions of the Council. 11/19/24 -3- Ms. Eldridge pointed out the Council relies on the recommendations of Commission and takes their input seriously. Commissioner O'Connor stated Mr. Alexander has a vision that would be unique for the State. She asked if others are supportive of his interests. Mr. Alexander stated the Council wants an enhanced tax base. The Opportunity Site as planned would only increase the tax base by 16 or 18 percent. It is 80 acres, and it has so much potential. It has the potential to even double the existing tax base. The structures need to be set up methodically to ensure there is growth in the tax base. Commissioner O'Connor asked if Mr. Alexander had any input on the proposed ordinance. Mr. Alexander stated the language is geared towards affordable housing. However, the Statute itself allows for more than affordable housing. The ordinance would allow the City to do what it wants to do. Mr. Alexander added he has some ordinances he would like the Housing Commission to review and sign off on. Chair Enger asked if the ordinance is similar to the one in Brooklyn Park. Ms. Eldridge confirmed the language is similar to Brooklyn Park's ordinance. Other cities such as Bloomington and Red Wing use similar language. Commissioner Williams previously brought up unique ideas such as programming to support homeowners in default because many of the existing programs are geared toward potential homeowners and renters. Mr. Alexander noted Minneapolis have some loan programs available to households at or below 30 percent AMI that turn into grants. Brooklyn Center can form its programs more thoughtfully. There is a structure in place for financing, but it isn't of interest to people. He added Brooklyn Center's housing stock was well-built. Commissioner O'Connor noted her support of the measure. Commissioner Freund and Commissioner Kuglin agreed. Chair Enger stated she would like to recommend the ordinance to the Council once the first paragraph is removed. Ms. Eldridge added there are other edits such as three percent for folks who aren't financeable but need rehabilitation money. Commissioner O'Connor pointed out they need to avoid promoting flippers because it isn't usually well done and it eliminates the opportunity for true homeowners to build equity. Ms. Eldridge noted there are over 400 people on the Housing Rehabilitation Program waiting list. Commissioner Williams has previously used the program. Ms. Eldridge added she would make the changes and pass it along to the Council for review. It will likely be a presentation. Chair Enger pointed out that the Local Housing Trust Fund was a 11 / 19/24 4- recommendation from the Urban Land Institute (ULI) study. There was a motion by Commissioner Freund and seconded by Commissioner O'Connor to recommend the City Council adopt the Local Housing Trust Fund ordinance. The motion passed. WEBSITE UPDATES Ms. Eldridge showed the website to the Housing Commission. There was a previous request from Chair Enger to update the website. Councilmember Lawrence -Anderson has also expressed interest in updating the website. Ms. Eldridge explained are a lot of unhoused folks in Brooklyn Center, and there are occasional encampments that require attention from Staff. From time to time, Public Works Department Staff may find a tent or other living situation. She stated she added resources regarding homelessness to the website. Ms. Eldridge noted she also added information about domestic violence shelters and CEAP programming. Ms. Eldridge stated the Tenant Resource Guide is posted but needs some updating. There is a section about housing rights. She finally received access to a certain portion of the website. She requested the Commissioners provide input on necessary updates. Commissioner Kuglin stated the Tenant Resource Center (TRC) has been renamed to Tenant Resource Connection. The website is www.trehennepin.com. Ms. Eldridge stated there is a PDF version of the Tenant Resource Guide. It will need to be edited to reflect new tenant laws and the new name for TRC. Ms. Eldridge noted there is information about the Fix Up Fund and County housing grants. There is information about assessments and property taxes. Commissioner Bauer pointed out the homestead credit increased on the property taxes. Ms. Eldridge added the website includes information about programs supporting seniors. Brooklyn Center has an aging population, and there are organizations that offer housing assistance specifically for seniors. She offered to work, directly with seniors who need housing support. Finally, the website has the contact information for the members of the Housing Commission, information for the Housing Commission meetings, and documents for the Housing Commission meetings. Commissioner O'Connor asked if Chair Enger was part of the Financial Commission. Chair Enger confirmed she was appointed to the Financial Commission earlier in the year. Chair Enger stated the updates were much -needed and well done. CITY COUNCIL LL4ISON REPOR T City Council Liaison Lawrence -Anderson was no present. 11/19/24 -5- OTHER BUSINESS FUTURE DISCUSSION. • SWOTANALYSIS Chair Enger stated she had suggested a SWOT analysis based on a recommendation from the ULI. She asked if Ms. Eldridge believed a SWOT analysis would be beneficial. Ms. Eldridge offered to send the ULI recommendations to the Commission. The ULI does intensive work sessions within a municipality and interviews both community members and Staff. From there, they create short-, medium-, and long-term goals. Chair Enger pointed out the red text reflects projects the City is working on. Chair Enger asked if there has been an Opportunity Site Citizen's Advisory Council. Ms. Eldridge confirmed the Opportunity Site Citizen's Advisory Council had been established; they created a Community Benefits Agreement (CBA). The CBA is essentially a list of values created by community members that a potential developer needs to consider. Ms. Eldridge added there is an Equitable Development Scorecard. She has not reviewed it because there haven't been many new developments during her tenure. The market has changed drastically in recent years. The community expressed interest in affordable housing at the Opportunity Site. The Resurrecting Faith World Ministries' childcare, event center, and entrepreneurial space concepts are part of the CBA. Chair Enger pointed out the document recommends establishing a Housing Trust Fund, and there is a note about the land sale benefiting the Fund. She stated the land was sold for $1. Ms. Eldridge stated the land was not sold. There is an agreement where the developer doesn't need to reimburse the City immediately. Chair Enger stated the recommendation regarding City -owned sites for homeownership development opportunities requires outside developers to show interest in Brooklyn Center for development. Ms. Eldridge stated the recommendation regarding the Tenant Opportunity to Purchase Act is a policy to support tenants receiving the opportunity to buy the home they rent should the residence be listed for sale. Minneapolis recently had a similar policy shot down. Ms. Eldridge noted the recommendation about pursuing land trusts is ongoing. Mr. Anderson has been talking to a land bank. Staff is looking into options for multi -family ownership models. Supporting maintenance of natural -occurring affordable housing (NOAH) properties is ongoing. Commissioner O'Connor asked what a land trust is. Ms. Eldridge stated a land trust is an entity that buys lots for single-family homes and then creates a certain goal for the land. For example, a house maybe built and the purchaser must fall within a certain AMI percentage. The land is being leased for the project which removes it from the speculative market. There is also a cap on the equity. Commissioner O'Connor stated it is unfortunate the market creates conditions that aren't always beneficial to the community. 11/19/24 -6- Ms. Eldridge requested the Commission relay any ideas for programs or policies to her. Commissioner O'Connor stated she is excited about the ideas Mr. Alexander has for projects throughout the City. Ms. Eldridge noted the City expected to be further along on the Opportunity Site by this time. Also, the last housing project reviewed by the Council was shut down because a neighboring property owner emailed the City expressing concern about the proposed project's impact on traffic and space busyness. It was a former bank building that would be converted into housing. It was primarily studios and one -bedrooms. Commissioner O'Connor stated such a proposal wouldn't have enough impact on the area to qualify a denial. Chair Enger pointed out it was a unique situation because it is between residential and office spaces. Ms. Eldridge added there were concerns about making the lobby space ADA-accessible. Staff was working with the applicant and neighbors to find agreeable terms, but it was unsuccessful. Commissioner O'Connor asked if the area would have needed to be rezoned. Ms. Eldridge stated the property is zoned for mixed use, so it could be for residential or office space. The Planning Commission and Council would have needed to approve various projects for the building conversion. Chair Enger pointed out there are a number of sites in Brooklyn Center that need to be redeveloped. Commissioner O'Connor noted Minneapolis charges vacant buildings, both commercial and residential, annual fees. Chair Enger stated the same is true in Brooklyn Center. The Sears building doesn't want to deal with asbestos. Ms. Eldridge explained the fees are to cover Staff time such as ensuring the building remains safe, handling trespassing, and addressing utility issues. They also pay taxes. Commissioner O'Connor asked if anyone had asked the State for funds to remove the asbestos. Ms. Eldridge stated the City has obtained State funding to address the asbestos. However, to access the funds, there needs to be a proj ect proposal that would immediately follow asbestos remediation. Chair Enger pointed out that the site for TransformCo was recently rezoned. Ms. Eldridge stated the site was rezoned, but it won't take effect until July 2025. The owner has until then to bring forth an industrial project. However, the Council is uninterested in industrial projects at the Sears site. Chair Enger noted the market conditions are still not helpful to development. Ms. Eldridge added people were also waiting to see the impact of the election before moving forward with projects. Chair Enger asked if a SWOT analysis would be beneficial for the Housing Commission. Ms. Eldridge stated speaking with each Commissioner about their priorities and then creating a list for 11 /19/24 -7- the Commission to consider would be beneficial. Chair Enger requested the next meeting include an opportunity to brainstorm. Mr. Alexander would be beneficial to the conversation. Chair Enger noted there wasn't a Housing Commission meeting in December 2023. Ms. Eldridge stated the Housing Commission meeting for 2024 would be December 17. Chair Enger asked if it has to be a Tuesday. Ms. Eldridge confirmed it has to be on a Tuesday. Commissioner Freund stated she was available. Commissioner O'Connor stated she was available as well. Chair Enger is unavailable on the date. It was the consensus of the Housing Commission to cancel the December meeting. Commissioner O'Connor asked how the crime rates have been in Brooklyn Center. Chair Enger stated overall crime has decreased while the domestic violence incidents have been up per the Police Chief. Chair Enger suggested the Police Chief meet with the Housing Commission regarding ongoing crime. There is more crime in the business district due to its proximity to the transit hub. A number of the businesses have hired private security. Some businesses have looked to hire the same firm to serve all businesses. There is an increased presence of Metro Transit police. The Brooklyn Center Police Department is understaffed, including the Street Crimes Unit. Commissioner O'Connor noted there seems to be a decrease in panhandling near Cub. Chair Enger stated others would disagree with the assertion. There is an increased panhandling near the bank. Cub has a new manager. Metro Transit police is working to educate community members. Ms. Eldridge stated when code enforcement Staff addresses encampments, they provide resources about shelter and housing options. However, the unhoused people are uninterested in resources. Commissioner O'Connor asked if their disinterest is due to a lack of trust. Commissioner Freund pointed out liaisons are being hired by the Police Department to provide more resources to community members. Chair Enger explained many officers left the Police Department after the incidents involving George Floyd and Duante Wright. The expanded response model launched in August should decrease the need for law enforcement responses. The model is in collaboration with Canopy Roots and Hennepin County. The City has many projects underway, but it requires a lot of money and Brooklyn Center is the poorest City in the State. Chair Enger clarified the embedded social worker in the Police Department handles issues after law enforcement involvement while the pilot program eliminates the need for law enforcement response at the incident. An issue with the Canopy Roots pilot is the exchange of information which may create a delay in resources. The pilot programs will last two or three years. Chair Enger added Brooklyn Center didn't get the SAFER grant, so they are unable to run a full duty crew. The budget allows for two firefighters currently, but two are needed to run the program. 11/19/24 -8- Ms. Eldridge noted there were part-time firefighters, but they couldn't continue in the part-time capacity. Other cities help Brooklyn Center to respond to fires. Commissioner O'Connor stated her property had a firetruck respond quickly. Ms. Eldridge added Mr. Anderson pointed out other cities are supposed to bill Brooklyn Center when they respond to fires within the City, but they don't see many bills. Ms. Eldridge confirmed she would connect with Mr. Anderson to see when he would be available to attend a Housing Commission meeting again. As previously discussed, the December Commission meeting is canceled. ADJOURNMENT There was a motion by Commissioner Freund and seconded by Commissioner O'Connor to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:45 p.m. Chair Pro Tem O'Connor 11 / 19/24 -9-