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HomeMy WebLinkAbout1993 07-12 EDAM Special Session MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION JULY 12, 1993 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 9:17 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann. Also present were City Manager Gerald Splinter, Community Development Specialist Tom Bublitz, City Attorney Charlie LeFevere, and Council Secretary Carla Wirth. APPROVAL OF MINUTES JUNE 21. 1993 SPECIAL SESSION There was a motion by Commissioner Rosene and seconded by Commissioner Scott to approve the minutes of the June 21, 1993, EDA meeting as printed. The motion passed unanimously with Commissioners Kalligher and Mann abstaining. JUNE 28. 1993 SPECIAL SESSION There was a motion by Commissioner Scott and seconded by Commissioner Rosene to approve the minutes of the June 28, 1993, EDA meeting as printed. The motion passed unanimously. RESOLUTIONS RESOLUTION NO. 93 -27 Commissioner Celia Scott introduced the following resolution and moved its adoption: RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANT (FILE NO. II -113 [80391) The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Dave Rosene, and the motion passed unanimously. 7/12/93 1 DISCUSSION ITEM HOUSING COMMISSION REPORT AND RECOMMENDATIONS ON HOME REHABILITATION DEFERRED LOAN PROGRAM The C6mmunity Development Specialist reported the Housing Commission discussed three issues raised by the EDA at its April 12, 1993, meeting. He explained the first issue was whether more than one grant should be issued to a particular property. He continued presently there is no prohibition against awarding a second grant to a property providing five years has expired between grant awards. He stated Brooklyn Center is part of the Urban Hennepin County Community Development Block Grant (CDBG) program, and Hennepin County guidelines governing the administration of the deferred loan program do not prohibit the award of second or even more deferred loans as long as five years has expired between the first and second deferred loans. The Community Development Specialist noted of the last 36 deferred loans awarded from 1990 to present, eight were second deferred loans and six of the eight recipients were senior citizens. He added there are currently 70 applicants on a waiting list for the deferred loan program, three of which have previously received deferred loans from the City's program. He reported the Housing Commission recommends no second deferred loans be awarded until there are no applicants on the waiting list and exceptions be made only in extraordinary circumstances related to health and safety concerns or as determined by the program administrator. With regard to the second issue under consideration, the Community Development Specialist stated the Housing Commission discussed the value of the property being improved and whether it was economically prudent to award grants to properties with a low market value. He explained the Hennepin County CDBG program guidelines specify "the structure will have remaining useful life such that the total amount of the repairs required to bring the house up to Section 8 quality standards may be amortized over such life in an economically prudent manner. Generally, the total amount of the required repairs should not exceed 50% of the market value of the property, as indicted in the property tax statement." The Community Development Specialist reported staff recommends a minimum value requirement not be established for homes served by the CDBG program. He stated staff recommends they prepare a cost repair estimate on homes valued at $55,000 or less (as determined by the City Assessor) to determine if the property can be brought up to Section 8 standards with funds available. The Community Development Specialist stated the third issue addressed was the types of improvements and priorities given to improvements such as exterior versus interior improvements. He reported Hennepin County and federal guidelines for this program require the property receiving the deferred loan must be rehabilitated to Section 8 standards to create a safe, healthy, and sanitary living environment. He noted these types of improvements do not directly address aesthetics or appearance issues. He explained staff believes the hierarchy of inspections for health and safety and energy improvements is necessary to comply with the intent of the CDBG program. He added staff can make an effort to dedicate a portion of the deferred loan to exterior improvements whenever 7/12/93 -2- practical and /or the City could consider a separate allocation of EDA/City funds in addition to CDBG funds which could be dedicated to exterior improvements only. The Community Development Specialist stated HUD annually revises the program income limits for the CDBG program, which the Housing Commission recommends be adopted by the City. He further stated they will also consider whether the City's program should be a true loan program rather than a deferred loan or grant program. He explained having a grant program would allow the money to be paid back and reused for another applicant. Commissioner Scott asked if the money received from loans could be used for aesthetic improvements. The Community Development Specialist stated the money would still be restricted since there is not much flexibility when federal dollars are involved. Commissioner Scott pointed out that making more money available through a loan program would result in more crucial improvements being made. Because of this, she thought the waiting list would be reduced and potential for allowing exterior improvements increased. She added siding also provides insulation for the home. The Community Development Specialist reported Hennepin County is currently in the process of reviewing their guidelines and these guidelines are more flexible than HUD regulations. Commissioner Kalligher asked if the City can provide input to HUD and Hennepin County. President Paulson agreed with Commissioner Kalligher's suggestion and asked staff if they could approach Hennepin County and ask them to include exterior improvements. He agreed health safety issues were good public policy but thought exterior improvements visible to the community were also good policy. The City Manager suggested staff approach Hennepin County and HUD with this request and ask for a response. There was a motion by Commissioner Scott and seconded by Commissioner Mann to approve the revised HUD program income limits for the CDBG program as presented in the staff report, and accept the Housing Commission's three recommendations as presented. The motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Kalligher and seconded by Commissioner Scott to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 9:45 p.m. Todd Paulson, President Recorded and transcribed by: Carla Wirth Timesaver Off Site Secretarial 7/12/93 3