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HomeMy WebLinkAbout1990 05-23 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 MAY 23, 1990 CITY HALL CALL TO ORDER The Brooklyn Center housing commission was called to order at 7:40 p.m. ROLL CALL Commissioners Robert Torres, Ernie Erickson, Reynold Johnson, Pamela Frantum, Neal Nelson, John Kalligher, and Barbara Jensen. Chairman Nicholas Eoloff was absent and excused from this evening's meeting. Also present were City Council liaison Phil Cohen, Councilmember Todd Paulson, EDA Coordinator Brad Hoffman, and Assistant EDA Coordinator Tom Bublitz. Also in attendance at the meeting was Mr. Gene Ranieri, consultant for the Brooklyn Center Housing Implementation Plan. APPROVAL OF MINUTES MAY 8, 1990 There was a motion by Commissioner Erickson and seconded by Commissioner Frantum to approve the May 8, 1990, housing commission minutes as submitted. The motion passed. REVIEW OF EXECUTIVE SUMMARY OF HOUSING IMPLEMENTATION PLAN, Mr. Ranieri began his review of the executive summary by pointing out the unique assets of Brooklyn Center with regard to its commercial and industrial base. He pointed out the City's commercial base ranks 13th in the region, and it is 15th in its industrial ranking relative to other cities in the region. He then reviewed the demographics of the City, pointing out the demographics of the area are changing with both the population and housing maturing. The challenge for the next decade is to continue the City's appeal as a housing market for starter homes for families. The key is to remain an attractive market to the shrinking market of home buyers. It was noted multifamily demographics are also changing and Brooklyn Center has between 700 and 750 housing units occupied by low- and moderate income persons which translates into a 20% share of the City's existing multifamily units occupied by low- and moderate income persons. The next item reviewed in the executive summa was summary the management process section. Mr. Ranieri pointed out the need for the City to now establish a housing team from its City staff which would provide a multidisciplinary approach to solving housing problems. An additional item to be established is a development and redevelopment review process which would address such items as zoning issues and environmental concerns. The 5/23/90 -1- commission discussed this area and concluded this may be an opportunity for the City to rethink its zoning ordinance particularly with regard to the issue of recombination of existing City lots. The next item reviewed was the issue of community awareness and development of City identity. It was pointed out Brooklyn Center's assets include excellent location and a stable community. The report suggests working with the school districts, including establishment of housing maintenance education programs such as -in -home maintenance which could be tied to the overall housing program. Mr. Ranieri pointed out the MHFA has a number 'of programs available to cities but with certain limitations such as restrictions on home purchasing to first -time homebuyers, income limitations,. etc. He noted the MHFA program is also tied to the Federal Mortgage Bond program. Mr. Ranieri pointed out the MHFA was recently criticized by the legislative auditor for not being more involved in multifamily housing. The MHFA now has programs such as ARM for multifamily and also the Purchase Plus program available for buying and rehabbing multifamily units. I Mr. Ranieri next addressed the issue of Shingle Creek Towers and the fact that the building could become a market -rate building in three years. The building is now 236 housing, and if the owners pay off the Federal subsidy, it can become a market -rate rental building. With regard to multifamily housing, Mr. Ranieri explained the City could use the option of Minnesota Statute 273.1316 which provides the option of changing the tax classification of a structure if the units are substandard. The legislation was passed in 1989 and can be implemented now. EDA Coordinator Hoffman pointed out the City is already addressing this State Statute. Additional enforcement items were discussed, including a staff review of Chapter 12 of the City Ordinances, training sessions on Chapter 12, and preparation of a summary of Chapter 12 which could be made available to tenants in Brooklyn Center apartment buildings. Councilmember Cohen stressed the need for additional information in the plan on the potential conversion of Shingle Creek Towers to a market -rate building and the impact of that change on the existing tenants in the building. Councilmember Cohen suggested using examples of other buildings in the area, including the City of Minneapolis that have been converted from subsidized to market -rate buildings. He also emphasized that any other buildings in the City in the same position as Shingle Creek Towers should also be included in the report. 5/23/90 -2- The next item discussed was the assistant EDA coordinator's position. Commissioner Erickson brought up the issue of the amount of time the assistant EDA coordinator would be spending on housing. EDA Coordinator Hoffman explained he is not entirely comfortable with addressing specific job duties in the housing plan. He explained the assistant EDA coordinator's time will be spent 100% in the area of housing and commercial development, pointing out that commercial development and housing programs are interrelated. He expressed a concern that the plan does not dictate a job description. Councilmember Cohen suggested the EDA Coordinator and Mr. Ranieri- work out the wording of the job duties in the plan. The next item addressed by the commission was the issue of community awareness and marketing. Commissioner Frantum suggested the possibility of doing a marketing brochure for the City which could be distributed to realtors. EDA Coordinator Hoffman explained the City has done this in the past, and he would like to revisit this question and consider what form the marketing effort should take. Commissioner Kalligher suggested the marketing effort be oriented to families. Commissioner Torres suggested the City target families that are now living in rental units who may be considering purchasing a home. He emphasized the key element is targeting renters in the City to buy a home in Brooklyn Center. Commissioner Jensen pointed out that there are also potential buyers of single family homes in Brooklyn Center located in rental units in other cities. Mr. Ranieri next reviewed the multifamily housing strategy in the executive summary and explained the negative impact of the 1986 Tax Reform Act on rental owners. He suggested the City work with the Multifamily Housing Association to develop training sessions on existing City Ordinances and other programs such as tenant screening, and State and Federal programs. He emphasized the need for services for multifamily housing as well as bricks and mortar needs. The City would not be a provider of the services but would facilitate service providers. He also emphasized the areas of special needs housing, including housing for the frail elderly and disabled. Commissioner Nelson inquired as to the impact of the new pending Federal legislation regarding handicapped accessibility. Mr. Ranieri said he would look into this item. With regard to the multifamily housing strategy section, Councilmember Cohen suggested we should consider adding a separate section on financing including tax increment financing, essential function bonds, and other financing options to determine what is available and to get the message across of what programs are. available now. He also suggested a change in Section C of the multifamily housing strategy to add the words "if needed" in the second sentence of the paragraph in Section C. 5/23/90 -3- Continuing the discussion of multifamily housing, Commissioner Kalligher expressed concern that the City may have an adequate supply of multifamily housing now and questioned whether the City should have a role in developing new multifamily housing. The commission discussed the issue of the need for additional multifamily housing and if needed, where it could be built and whether the City should or should not assist in its development. The next issue discussed by the commission was the single family housing section of the plan. Mr. Ranieri explained the truth in housing discussion could be- addressed by gathering additional information from other jurisdictions as a starting point for discussion. Mr. Ranieri stated the spot renewal program encompassing as many as six single family homes a year could be ambitious, but presently there are 50 to 60 homes in the City that could be targeted now. EDA Coordinator Hoffman pointed out the decrease in single family rental units from five years ago. He explained there were approximately 450 single family rentals in the City five years ago and presently there are approximately 250. Continuing the review of the single family section, Mr. Ranieri explained the Metropolitan Council has proposed a concept of a homeowner's association for single family neighborhoods. This would include items such as the association purchasing roofing for an entire neighborhood, lawn services, and other services that could be jointly purchased by an association. Commissioner Kalligher suggested adding specific examples of successful operating associations in the plan. Councilmember Cohen brought up the issue of housing values increasing in certain areas of the City. He explained he would like to determine whether certain projects such as the municipal golf course or increased code enforcement have had a positive influence and can be related to these increases in valuation. Also he pointed out the City's action in revoking a rental dwelling license may also have had a positive effect on valuations. The next item reviewed was the financial resources section of the plan. Mr. Ranieri pointed out the EDA is part of the overall City levy and levy limitations. He proposed the option of new funding sources for public improvements and housing including consideration of a housing service fee which could be somewhere in the neighborhood of $5 to $10 per dwelling to fund housing programs. Councilmember Cohen emphasized the importance of developing an overall legislative program. Mr. Ranieri explained the first ring suburbs need to address legislative issues especially in the area of tax increment financing. He emphasized the current 5/23/90 -4- status of tax increment financing and explained the dollars the school districts would receive from the State to make up for assessed value pulled out by tax increment financing would presently be taken out of the City's LGA. In other words, cities would be penalized through their local government aid for encouraging tax increment financing projects. In conclusion of his comments, Mr. Ranieri encouraged the City to also discuss housing issues with the City of Minneapolis and to access the Twin Cities Housing Trust Fund. The commission discussed the need to continue its review of the Housing Implementation Plan in light of the changes reviewed this evening. The next meeting date set for review of the plan including the changes made at this evening's meeting is set for June 5, 1990, at 7:30 p.m. ADJOURNMENT There was a motion by Commissioner Nelson and seconded by Commissioner Torres to adjourn the meeting. The motion passed. The Brooklyn Center housing commission adjourned at 9:35 p.m. Chairman 5/23/90 -5-