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HomeMy WebLinkAbout1993 06-30 HCM I I 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 JUNE 30, 1993 EARLE BROWN HERITAGE CENTER C BARN CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Nicholas Eoloff at 6:00 ROLL CALL Chairperson Nicholas Eoloff, Commissioners Ernie Erickson, Neal Nelson, Pamela Frantum, Kathleen Carmody and Bob Torres. Also present were Council Liaison Barb Kalligher, Mayor Todd Paulson and Community Development Specialist Tom Bublitz. Commission members Jon Perkins, Todd Cannon and John Kalligher were absent and excused from the meeting. APPROVAL OF AGENDA There was a motion by Commissioner Erickson and seconded by Commissioner Carmody to approve the June 30, 1993 agenda. The motion passed. APPROVAL OF MINUTES APRIL 27. 1993 There was a motion by Commissioner Carmody and seconded by Commissioner Erickson to approve the April 27, 1993 Housing Commission minutes, as submitted. The motion passed. REVIEW OF STAFF REPORT ON CITY'S HOME REHABILITATION DEFERRED LOAN PROGRAM The Community Development Specialist introduced the next agenda item and explained the City Council /EDA had directed the City's Housing Commission to review several issues with regard to the City's home rehabilitation deferred loan program. The three issues were as follows: 1. The Housing Commission should review the issue of awarding more than one grant to a particular property. Presently, there is no prohibition against awarding a second grant to a property providing five (5) years has expired between grant awards. 2. The Council /EDA is also concerned with the value of property being approved and is asking the Housing Commission to consider this factor in the potential award of grants. 6 -30 -93 1 3. The Council is also asking the commission to address the types of improvements and the priorities given to improvements, such as exterior improvements versus interior improvements. The Community Development Specialist proceeded to review the staff report on the issues to be reviewed by the Housing Commission and after his review made the following recommendations with regard to the three issues: 1. Staff Recommendation on Issue No. 1 Given the number of applicants on the waiting list, it is recommended that no second deferred loans be awarded until there are no applicants on the waiting list. Exceptions will be made only in extraordinary circumstances related to damage to the property as a result of events beyond the control of the applicant or relating to health and safety concerns, such as failure of plumbing, heating or electrical systems, or as determined by the program administrator. In such circumstances, provided that funding is available, the Borrower, if still eligible, can receive assistance limited to correcting the damaged or failed systems only. No other eligible work can be carried out except in extraordinary circumstances outlined above. It is recommended this policy begin with all new applicants, not including those on the waiting list. 2. Staff Recommendation on Issue No. 2 Staff recommends that a minimum value requirement not be established for homes served by the CDBG program. However, on homes valued at $55,000 or less, as determined by the City Assessor's department, staff will prepare a cost repair estimate to determine if the property can be brought up to Section 8 standards with the funds available. Cost repair estimates imates shall also be made on ro erties where repairs necessary P P r to bring P y rin g the property up to Section 8 standards involve major repairs to the majority of the home's systems, including mechanical plumbing, electrical, p g, windows and doors and exterior, including roof and siding. 3. Staff Recommendation on Issue No. 3 The deferred loan program must address the Section 8 standards when determining the repairs/ rehabilitation needed in the home. Staff believes the hierarchy of for inspections health and safety and d .energy improvements is necessary to comply with the intent of the CDBG program. When doing the inspections for the deferred loan rehabilitation work, inspection staff will make an effort to dedicate a portion of the deferred loan to exterior improvements whenever practical. 6 -30 -93 2 .r. The Community Development Specialist also raised two additional issues with Housing Commission members, including a recommendation to consider a revision of the City's deferred loan program to make the program a true loan program with no deferral of the amount awarded for the improvements. He pointed out other cities in Hennepin County have converted their programs from a grant program to a loan program or from a grant program to a combination grant and loan program, such as the City of Hopkins. An additional recommendation made by the Community Development Specialist was to increase the program income limits for determining eligibility of applicants to comply with current HUD guidelines with regard to income limits. He reviewed the current and proposed income limits which would be based on the May 5, 1993 HUD income limits. The recommended income limits based on household size were as follows: INCOME LIMITS HOUSEHOLD AS PER MAY 5 1993 SIZE HUD INCOME LIMITS 1 $20,820 2 23,820 3 26,760 4 29,760 5 32,160 6 34,500 7 36,900 8 39,300 Chairman Eoloff directed the three issues directed the Housing Commission by the City Council /EDA and noted one of his major concerns was that there is a potential problem with improving properties that may be in such a condition that it is like throwing good money after bad to award a grant. The Community Development Specialist pointed out that the City does have an option to use funds through its scattered site program to acquire properties that are beyond rehabilitation and to recommend demolition of these properties and resale of the lot for single family development. Also he pointed out staff is recommending that any properties valued below $55,000 would have to undergo a more in -depth analysis by Staff and they would prepare a cost estimate to determine if the property can be brought up to Section 8 standards with the funds available. If not, the recommendation for the grant award would not be made. Commissioner Erickson brought up the issue of exterior improvements versus interior improvements in the home, pointing out that in addition to siding and new roofs, exterior improvements also address safety issues such as handrails and steps and more aesthetic issues such as landscaping. Commissioner Erickson also expressed concern that the major interior 6 -30 -93 3 f improvements to major systems in the house, such as mechanical, electrical and plumbing systems, are important to address and are as important as the exterior improvements. The commission members discussed the staff recommendations made in the report, and also discussed the general cost of improvements for rehabilitation, noting that the costs for rehabilitation had increased substantially over the last few years so that it is difficult to accomplish everything that is needed in many of the homes receiving grant awards. There was a motion by Commissioner Erickson and seconded by Commissioner Torres to approve the staff recommendations with regard to the three issues the Housing Commission was instructed to review by the City Council, as contained in the June 25, 1993 staff report on home rehabilitation deferred loan program issues and as reflected in the minutes of the meeting, and to recommend to the City Council /EDA to increase the program income limits for eligibility for deferred loans, as per the recommendations from staff in the June 25, 1993 staff report. The motion passed. There was a motion by Commissioner Erickson and seconded by Commissioner Nelson to table consideration of any conversion of the deferred loan program to a loan /grant program, but to direct staff to bring this issue back to the Housing Commission for consideration when the Housing Commission begins meeting again in the fall of 1993. The motion passed. ADJOURNMENT There was a motion by Commissioner Erickson and seconded by Commissioner Carmody to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 6:40 p.m. Chairperson 6 -30 -93 4