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HomeMy WebLinkAbout1993 02-16 HCM t AMENDED 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 FEBRUARY 16, 1993 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 Jon Kalligher, Jon Perkins, Neal Nelson and Robert Torres. Also present were Jody Brandvold and Dolores Hastings, members of the Earle Brown Neighborhood Housing Advisory Committee and Community Development Specialist Tom Bublitz. Commissioners Ernie Erickson and Pamela Frantum were absent and excused from the meeting. Also absent and excused from the meeting was Council Liaison Barbara Kalligher, who was attending a Council meeting. APPROVAL OF AGENDA There was a motion by Commissioner Kalligher and seconded by Commissioner Nelson to approve the February 16, 1993 agenda. The motion passed. APPROVAL OF MINUTES FEBRUARY 3, 1993 There was a motion by Commissioner Kalligher and seconded by Commissioner Nelson to approve the February 3, 1993 minutes, as submitted. The motion passed. RESOLUTION REGARDING HOUSING COMMISSION RECOMMENDATIONS ON BUFFERING AND SCREENING OPTIONS FOR BROOKLYN BOULEVARD REDEVELOPMENT Community Development Specialist noted that this was a follow -up item from the February 3, 1993 Housing Commission meeting. He explained he had assembled the commission's comments and recommendations on the screening options for Brooklyn Boulevard into a resolution for consideration this evening. After review of the resolution by commission members, Commissioner Kalligher recommended that paragraph 1 be changed to read as follows: 11 1. The commission generally supports the buffering and screening options contained in the task force report, but with certain precautions and restrictions to insure adequate protection of single- family neighborhoods and residences abutting the commercial uses along Brooklyn 2 -16 -93 1 l Boulevard." There was a motion by Commissioner Ralligher and seconded by Commissioner Nelson to approve the resolution, as amended. The motion passed. PRESENTATION ON CITY'S RENTAL TO OWNER CONVERSION PROGRAM Community Development Specialist introduced Ms. Vicki Murray, vice president of marketing with Thompson Associates, Inc. He explained Ms. Murray has been working with the City to design and implement the rental to owner conversion program and is here this evening to review the elements of the program with commission members. Ms. Murray explained the purpose of the rental to owner conversion program is to provide an economic incentive for first time home buyers to purchase and rehabilitate certain single family rental properties in a specified target area in the southeast neighborhood. Ms. Murray explained the boundaries of the target area for the program are 57th Avenue on the north, 53rd Avenue on the south, Logan Avenue on the west and the Mississippi River on the east. She explained there are between 35 -40 absentee owned single- family properties in this area. The purpose of the conversion program is to attract renters already in the neighborhood to purchase these properties. She explained she has been working with the Minnesota Housing Finance Agency, lenders and local realtors to develop the program. Ms. Murray explained one of the key features of the program is the rehabilitation grant of up to $5,000 which would assist with the purchase and rehabilitation of the nonhomestead property. She explained up to three percent (3%) of the $5,000 amount could be used towards the down payment on the property. She explained the repayment of this grant would be in the form of community service and would be repaid at the rate of approximately $20.00 an hour over a two -year period. She noted that St. Paul and Minneapolis have similar programs involving community service, and St. Paul pays $15.00 an hour and Minneapolis pays $20.00 an hour. Ms. Murray explained that any additional rehabilitation work needed on the property over and above the $5,000 could be done with the assistance of the Minnesota Housing Finance Agency through its Purchase Plus Program. She explained she has contacted the MHFA and they have agreed to originate the loans from their office. Eligible items to be included under the $5,000 grant would be those items that must be repaired first, as noted by the FHA appraiser. These items normally include energy and code related items. Ms. Murray explained that in addition to the $5,000 for the rehab grant, borrowers who qualify to receive the rehab grant may also qualify for a closing cost grant of $1,500. This grant may be used towards payment of eligible closing costs. 2 -16 -93 2 Commission Member Jon Perkins expressed a concern that with the amount of grants offered in this program as incentives, people may not have a good incentive to stay in the property if they have no personal equity. Ms. Murray stated that she believed it is relatively expensive to walk away from a mortgage and also noted that this is a pilot program and if the original program does not work as desired, we can make changes. Ms. Murray continued in her explanation of the program and explained that the income limits for the program would be set at eighty percent (80 of median, which is the amount currently set for participation in the Minnesota Housing Finance Agency's first time home buyer program. This would mean that the adjusted gross income could not exceed $40,800 for potential borrowers. Buyers participating in the program will be encouraged to use the Minnesota City Participation Program, which is the City's first time home buyer program and /or the Purchase Plus Program, which is the rehab /refinance program offered by the state of Minnesota. Another requirement of the program is that the individual buying the property must be a first -time home buyer. Commissioner Perkins expressed a concern that, by limiting the target area, the supply and demand of housing available under the program will dictate the prices of the properties and that it may drive up home prices. Commission members continued to discuss the rental to owner conversion program. There was a general consensus among commission members to support the concept of the rental to owner conversion program as a pilot project. There was a motion by Commissioner Ralligher and seconded by Commissioner Torres to support the rental to owner conversion program concept and recommend that the Brooklyn Center City Council consider adoption of the program. ADJOURNMENT There was a motion by Commissioner Nelson and seconded by Commissioner Ralligher to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:15 p.m. Chairperson 2 -16 -93 3