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HomeMy WebLinkAbout1981 07-08 HCM * 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 July 8, 1981 City Hall CALL TO ORDER The Brooklyn Center Housing Commission met in regular session and wat called-to - order by Chairman Phyllis Plummer at 7:30 p.m. ROLL CALL Chairman Plummer, Commissioners Hastings, Turner, Williams, Duenow, and Cohen. Commissioner Cilke was absent from the meeting and was excused. METROPOLITAN HRA MODERATE REHABILITATION PROGRAM Chairman Plummer stated that Mr. Phil Katzen from the Metropolitan HRA will be present this evening to explain the Moderate Rehab Program for Commission members. She stated the approval of the Housing Commission and City Council is necessary if the City of Brooklyn Center is to participate in the program. She pointed out the Moderate Rehab Program is designed for rental units which will be rented to Section 8 qualifiers, adding that the Metropolitan HRA will administer the program in the metro area. She noted the City's involvement in the program would mean providing building inspectors to inspect the rental units. She proceeded to review the eligible repairs and modifications eligible under the program pointing out that they included handicapped accessibility. She stated in order to qualify for the program the owner of the rental unit must agree to accomodate low and moderate income renters who qualify for Section 8. Commissioner Cohen stated it was his understanding there would be no direct 'cost • to the City for the program. Chairman Plummer stated the only cost to the City would be providing building inspectors to inspect the units. Commissioner Cohen stated the program would help strengthen the City's rental licensing program. Commissioner Haroldson arrived at 7:40 p.m. Commissioner Duenow inquired whether the program would be available for the entire metropolitan area. Chairman Plummer stated the program is available but that each City Council must agree to participate in the program in order to make their City eligible. Commissioner Duenow stated she was concerned about the monitoring of under the program the program. Chairman Plummer stated th at P g ram the owner would sign P an agreement that he would rent to Section 8 qualified renters and that the agree- ment would be for a 15 year period. She stated the renter also would be required to sign a contract with the Meteropolitan HRA. Chairman Plummer introduced Mr. Phil Katzen of the Metropolitan Housing and Redevelopment Authority and stated he was here this evening to discuss the details of the Moderate Rehab program with Commission members. Mr. Katzen stated there is no specific deadline set for entering the program but that HUD has indicated the program can include cities as they join. 7-8-81 -1- T Chairman Plummer inquired how long the Moderate Rehab Ch q g program would run. P Mr. Katzen stated the program would provide a seventeen year contract with a maximum of 2 Y ears to rehabilitate the unit or units. He stated the rental assistance contract would run 15 years after the rehabilitation is done. Overall, he pointed out the owner of the would have a 17 year contract with HUD. I Commissioner Duenow inquired if there were any income requirements placed on the owners participating in the program. Mr. Katzen stated there is no income require- ment for the owner and the Metropolitan HRA has made arrangements for the MHFA to provide loans at 11% interest. Commissioner Haroldson inquired whether the owner could sell the unit after it has been rehabilitated. Mr. Katzen stated that the unit could be sold but only with the persmission of the Metro HRA. Commissioner Cohen inquired whether Mr. Katzen could estimate the number of units which would participate in Brooklyn Center. Mr. Katzen stated it of course depends on the interest in the Community and that this is why the Metro HRA is consulting with building inspectors in various cities to reach the owners with eligible property particularily duplexes and fourplexes. Chairman Plummer inquired if there were any more questions that the Commission had for Mr. Katzen, there being none she stated she would entertain a motion from the Commission regarding the program. There was a motion by Commissioner Hastings and seconded by Commissioner Cohen to recommend to the Brooklyn Center City Council that the Council should approve participation for the City of Brooklyn Center in the Metropolitan Housing and Redevelopment Authority Moderate Rehabilitation Program. The motion passed. REVIEW OF ELDERLY HIGHRISE PROJECT Commissioner Cohen reviewed the status of the elderly highra.se:project;- proposed for Brooklyn Center and pointed out the project was proposed jointly by CEAP, the Chamber of Commerce and the City. In the past, he pointed out, elderly housing has .generally been a part of a HUD 202 program which can only be proposed by a non- profit organization. He stated the 202 program is a rental program and cannot be restricted to residents of a particular community. He stated a 202 program must be opened up as per all HUD guidelines and that the HUD 202 program would present a problem with the goals of the committee proposing the elderly highrise for Brooklyn Center. He reviewed the proposed site consisting of 14 acres and pointed out the site would support as many as 144 townhouse units. He stated the housing committee proposal is to combine family units along with housing for the elderly. The tentative proposal he pointed out, would be to build condominimum units which would be owner occupied and that these units would be bought by elderly persons leaving their single family homes. As the elderly people leave the single family homes he stated the program would be able to finance younger families moving into the single family homes vacated by persons buying units in the development. He stated the developers contacted are able to put the whole package together that being to construct the elderly housing and to finance the purchase of the single family homes. Commissioner Cohen proceeded to review the concepts of the program as developed by the housing committee pointing out that one of the next steps if the program is to conduct a needs assessment in the area to determine the specific types of living arrangements desired by potential residents of the project. He stated that an informational meeting for residents of the area proposed for the elderly housing project will be held Tuesday of next week and that the meeting is designed as an informational meeting.. He added that in order to make the project work the City would acquire the property, make all.the necessary improvements to the property through the use of tax increment financing. He added that certain portions of the project must be accomplished by October in order to make the project fea- sible for 1982. After discussion of the project by Commission members Commissioner Cohen stated that he is seeking a consensus of the Housing Commission's feelings on the project. There was a motion by Commissioner Hastings and seconded by Commissioner Turner to approve the initial concept of the elderly housing project and support continuation of the project proposal contingent upon further review by the Housing Commission. The motion passed. ADJOURNMENT There was a motion by Commissioner Haroldson and seconded by Commissioner Turner to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 9:00 p.m. I Chairman 7 -8 -81 -3-