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HomeMy WebLinkAbout1992 05-19 HCM r' 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 19, 1992 CITY HALL CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairman Nicholas Eoloff at 7:00 p.m. ROLL CALL Chairman Nicholas Eoloff, Commissioners Ernie Erickson, Pamela Frantum, Barbara Jensen, John Kalligher, Jon Perkins and Robert Torres. Also present were Council Liaison Phil Cohen and Assistant EDA Coordinator Tom Bublitz. Commissioner Nelson was absent and excused from the meeting. APPROVAL OF AGENDA There was a motion by Commissioner Kalligher and seconded by commissioner Erickson to approve the May 19, 1992 agenda. The motion passed. APPROVAL OF MINUTES MARCH 17, 1992 There was a motion by Commissioner Jensen and seconded by Commissioner Frantum to approve the March 17, 1992 minutes, as submitted. The motion passed. REPORT ON POINT OF SALE /TRUTH IN HOUSING LIABILITY ISSUES The Assistant EDA Coordinator explained he followed up on the Commission's request for information on possible liability issues with regard to enacting a Point Of Sale or Truth In Housing type ordinance. He explained he had contacted Ellen Longfellow, an attorney with the League of Minnesota Cities, and she provided a memorandum entitled, "The Public Duty Doctrine and explained that this is the doctrine governing all municipal inspection and related ordinances. Essentially, the doctrine states that a City would not be liable for inspections if the City only owed a general duty to the person as compared to a private duty. Therefore, if the Point Of Sale or Truth In Housing ordinances are in compliance with the public duty doctrine, then, according to the information from the League of Cities, the ordinances would not create a special or private duty to an individual from the City, resulting in potential lability. The Assistant EDA Coordinator then reviewed a memorandum from Mr. Charles LeFevere the City Attorney, e y y, r gardin the Truth In Housing g Point Of Sale ordinances. g or s. He noted the City Attorney Y 05 -19 -92 -1- explained neither the public duty doctrine nor any other such disclaimer will protect the City from being sued, but he pointed l e out that he believed it would be very unlikely that any such suit would be successful. He also recommended that the City begin by identifying its specific objectives rather than starting with the consideration of a means of meeting such objectives (such as Point Of Sale or Truth In Housing ordinances). He explained once the objectives are identified, it will be possible to determine whether such ordinances are the most expeditious means of accomplishing those objectives. Commissioner Jensen raised the issue of whether charging a fee for inspections creates a private duty relationship. Commissioner Kalligher stated he believed the assessment of a fee would essentially be a private contractual relationship. Commissioner Erickson requested Commissioner Perkins's assessment of the ordinances as a realtor. Commissioner Perkins stated that he does not believe the Point Of Sale or Truth In Housing type ordinances have a significant impact on the housing stock. His feelings were that it is another hurdle for the sellers to go through to sell a home. Commissioner Erickson then inquired whether a Point Of Sale or Truth In Housing type ordinance would be expected to be in place by potential home buyers. Commissioner Perkins explained it was his impression that buyers are not that concerned about whether an ordinance of this nature is in place or not when they purchase a home. Councilmember Cohen suggested preparing a chart showing the strong and weak points of the various ordinances in place in other cities and including the real estate disclosure statement in this comparison. He explained the purpose of this comparison would be to support the recommendation of the Commission, whatever that may be. Commissioner Perkins stated that he believes there are means other than Point Of Sale ordinances which could be pursued and pointed out the comments of the City's Building Official with regarding to instilling community pride in housing. Commissioner Perkins introduced a motion to recommend against the Point Of sale and Truth In Housing type ordinances and to pursue previous recommendations of the Housing Commission with regard to continued code enforcement and neighborhood revitalization efforts. The motion was seconded by Commissioner Frantum. Commissioner Erickson offered an amendment to the motion which would spell out the reasons for the commission's recommendations to be passed along to the Council and made part of the Commission's recommendations. Commissioner Perkins, as initiator of the motion and Commissioner 05 -19 -92 -2- Frantum, as seconder of the motion, accepted Commissioner Erickson's amendment to the motion. The Commission discussed the motion and it was generally believed by Commission members that some specific recommendations should be made with regard to the Commission's decision on the Point Of Sale and Truth In Housing type ordinances. Commissioner Jensen expressed concern that charging a fee links the City to a possible liability for the inspection. She emphasized the importance of educating potential home buyers and stated she agreed with the City Building Official's comments on creating a pride in neighborhoods and housing. Councilmember Cohen raised the issue of how much of the housing stock would actually be affected by a Point Of Sale or Truth In Housing ordinance, that is, how much of the housing stock turns over and in what period of time. Upon a vote being taken on the motion, the following voted in favor: Chairman Eoloff, Commissioners Jensen, Perkins and Frantum. The following voted against: Commissioners Ralligher, Erickson and Torres. The motion passed. JUNE HOUSING COMMISSION MEETING Chairman Eoloff stated he would like to hold a Housing Commission meeting in June to take a tour of various parts of the City with regard to housing activities. Councilmember Cohen stated he would like to see the tour include portions of Brooklyn Boulevard to determine how the plans for the Brooklyn Boulevard Study might affect housing in the area. There was a general consensus of Commission members to hold a June meeting and to conduct a tour of housing and conclude with some type of dinner for Commission members and their families. RESIDENT "EXIT /ENTRANCE" SURVEYS The Assistant EDA Coordinator briefly reviewed a draft of a resident survey he had prepared. Councilmember Cohen stated that he would like to add a question on people's feelings about school districts. Commissioner Erickson requested that information be added to the survey as to why the Housing Commission is conducting the survey. Commissioner Frantum suggested adding a demographic section to the entrance survey to the City. Commissioner Erickson also suggested changing question 12(c) to ask what is the occupation of all adults in the household and not just the head of household. 05 -19 -92 -3- The Assistant EDA Coordinator stated that he would rework the survey and come back to the Commission with another draft for their consideration. INFORMATION REPORTS Minnesota City Participation Program The Assistant EDA Coordinator explained the City of Brooklyn Center will be participating in the Minnesota Housing Finance Agency's Minnesota City Participation Program (MCPP). He explained this program provides mortgage revenue bonds sold by the State of Minnesota to provide sources of mortgage funds for cities participating in the program. He explained there is no direct cost to cities participating in the MCPP other than the costs of promoting, advertising and staff time for facilitating the program. He added that the funds under the MCPP for mortgages will be set aside for individual cities for a six month period at an interest rate of 7.15 The money will be available to qualified first time home buyers with household incomes of $40,800.00 or less. EARLE BROWN NEIGHBORHOOD HOUSING ADVISORY COMMITTEE UPDATE The Assistant EDA Coordinator explained the Earle Brown neighborhood is continuing with various activities, including publication of the Earle Brown Neighborhood Housing Advisory Committee newsletter, and participation in this year's Paint -A- Thon program to be held in August of this year. He pointed out the Earle Brown Committee will be assembling a team to paint a house in the 1992 Metro Paint- A -Thon, organized by the Minneapolis Council of Churches. REMODELING /REDESIGN AND HOMEOWNERS ASSOCIATION PROJECTS The Assistant EDA Coordinator explained he is continuing to work with Mr. Bill Schatzlein and the Brooklyn Center Chamber of Commerce to pursue these two projects. He explained Mr. Schatzlein, through his nonprofit, successfully obtained funding for a similar remodeling/ redesign program in the City of Richfield where he is conducting homeowner workshops on remodeling activities. DISCUSSION: PRESENTATION BY WESTMINSTER CORPORATION PRESIDENT JOSEPH ERRIGO GIVEN AT NOVEMBER, 1991 HOUSING COMMISSION MEETING The Assistant EDA Coordinator referred Commission members to a short memorandum summarizing the presentation of Mr. Errigo, President of Westminster Housing Corporation. He noted that Mr. Errigo pointed out that the overall goal of a nonprofit housing corporation is to preserve housing for low and moderate income persons and briefly reviewed some of Westminster's projects and innovative approaches to preserving low income housing. 05 -19 -92 -4- r Commissioner Torres suggested that creation of a nonprofit in the City of Brooklyn Center may be advantageous and may be another tool that can be used for creation of housing in the City. Commission members briefly discussed the issue of nonprofits and the relative merits of creating a nonprofit in the City and /or taking advantage of existing nonprofit structures. OTHER BUSINESS Chairman Eoloff inquired if there was any other business to be discussed at the meeting. There being none, he entertained a motion to adjourn the meeting. ADJOURNMENT There was a motion by Commissioner Erickson and seconded by Commissioner Jensen to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:30 p.m. Chairperson 05 -19 -92 -5-