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HomeMy WebLinkAbout1995 05-16 HCM 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 MAY 16, 1995 CONFERENCE ROOM B BROOKLYN CENTER CITY HALL CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Robert Torres at 7:00 p.m. ROLL CALL Chairperson Robert Torres, Vice Chairperson Ernie Erickson, Commissioners Vince Opat, Maria Olek, Jack Kelly, Jonathan Carter, Henry Yang and Amy Gonyea. Also present were Council Liaison Kathleen Carmody and Community Development Specialist Tom Bublitz. Commissioner Todd Cannon was absent and excused from the meeting. APPROVAL OF AGENDA There was a motion by Commissioner Opat and seconded by Commissioner Erickson to approve the agenda, as submitted. The motion passed. APPROVAL OF MINUTES MARCH 21, 1995 and APRIL 8, 1995 There was a motion by Commissioner Kelly and seconded by Commissioner Erickson to approve the March 21, 1995, Housing Commission minutes, as submitted. The motion passed. There was a motion by Commissioner Erickson and seconded by Commissioner Kelly to approve the April 8, 1995, Housing Commission minutes, as submitted. The motion passed. DISCUSSION AND COMMISSION RECOMMENDATION ON POINT OF SALE OR TRUTH IN HOUSING ORDINANCE Chairperson Torres inquired of commission members whether they felt comfortable with their understanding of the difference between Point of Sale and Truth in Housing -type ordinances. At the Chair's request, the Community Development Specialist briefly reviewed the primary differences between Point of Sale and Truth in Housing -type ordinances. The commission began its discussion on the Point of Sale ordinance and whether or not the commission should consider bringing required repair items up to the code in place at the time the home was initially built or up to today's building code standards. 5 -16 -95 _1_ i Commissioner Gonyea commented that in her internship with the City of Brooklyn Center's housing inspection staff, she observed a significant amount of "do it yourself" remodeling projects that had been done incorrectly by homeowners and noted that this is one part of housing maintenance that would lend an argument for the enactment of some type of ordinance to correct these types of problems. Commissioner Erickson stated that previously he was in favor of a Truth in Housing -type ordinance, but after listening to Karen Barton address the issue of Point of Sale at the last Housing Commission meeting and reviewing the materials from the City of Crystal's Point of Sale program, he now believes the Point of Sale ordinance has more teeth in it than Truth in Housing. He added that if the City of Brooklyn Center is to compete in the housing market, we need to appeal to first -time buyers which appear now to be approximately 70% of our market. Commissioner Erickson also noted that Truth in Housing may be less controversial from a political standard, but it does not force items to be repaired. Commissioner Erickson speculated that if a Point of Sale ordinance is implemented, the City would likely hear the most protests from persons selling homes, but he noted that the sellers are leaving the City and the buyers are moving in and that Point of Sale would send a message that the City is serious about maintaining housing standards. Commissioner Kelly pointed out the problem is that we may price people out of the housing market in Brooklyn Center by implementing a Point of Sale ordinance. He noted that sellers may have to spend between $5,000- 10,000 to repair items and that this cost would be passed along to the buyer. He pointed out that a Truth in Housing ordinance will inform the buyer of the needed repairs but will not price them out of the market. Councilmember Carmody noted that, according to the data the commission has received from other cities and Karen Barton at the last Housing Commission meeting, most repairs are in the $200 -300 range. Commissioner Kelly stated he believes a Truth in Housing inspection program using private inspectors will result in better inspections than those that would be provided by City inspectors. Also, realtors have a great amount of responsibility and liability under the current system which is also another element to be considered. Commissioner Opat stated that he believes the City does need to do something with regard to housing maintenance, and that people buying homes need to know the truth about the condition of the property and what is in need of repair. Commissioner Gonyea stated that she does not think Truth in Housing is the most advantageous to the buyer and does not think house prices will be reduced accordingly because the potential buyer is now aware of the items that need to be repaired. Commissioner Opat stated that he thinks as long as the information is available to the home buyer or the realtor representing the buyer, there could be an opportunity for negotiation. 5 -16 -95 -2- Also, he pointed out, Point of Sale would take a long time to correct all the problems in the City's housing stock given the turnover of homes. Councilmember Carmody commented that Brooklyn Center's turnover in single family homes is approximately 5 per year so that in five years there would be approximately 25 of the homes addressed with regard to ordinance requirements. Commissioner Yang stated that he believes Truth in Housing may be the most advantageous way to go at this point. Commissioner Carter stated he believes Point of Sale may be the most beneficial choice for an ordinance of this type, but that it would also necessitate the need for more staff, including inspection and clerical staff. The commission continued its discussion of Point of Sale and Truth in Housing ordinances and discussed whether or not the fees for either program would cover the entire cost of administration of the program. Commissioner Opat noted that whatever the City does with regard to these ordinances, there needs to be a consistency in the inspection process which is why he believes the City should have in -house inspectors administering the program. Commissioner Kelly stated that, in his opinion, private inspection companies such as Amerispec and Housemasters are extremely thorough in their inspections. Commissioner Erickson pointed out that it was his understanding that Truth in Housing or Point of Sale inspections must be done when the house goes up for sale. Commissioner Kelly responded by explaining that in his experience it is best to do the inspection prior to putting the house up for sale. He pointed out the Truth in Housing report must be made available in the house when it is on the market. Commissioner Erickson stated that he would like to see the City of Brooklyn Center model an ordinance after Crystal's ordinance. Councilmember Carmody questioned why so many other cities are going to Point of Sale rather than Truth in Housing -type ordinances. The Housing Commission briefly continued its discussion of Point of Sale versus Truth in Housing ordinances, and the advantages of each, and discussions focused on making a recommendation of one over the other to be forwarded to the City Council. There was a motion by Commissioner Erickson and seconded by Commissioner Gonyea to recommend to the City Council that a Point of Sale ordinance be considered for adoption by the City of Brooklyn Center. Voting in favor: Chairperson Torres, i 5 -16 -95 -3- n Commissioners Erickson, Gonyea and Carter. Voting against: Commissioners Kelly, Opat, Olek and Yang. The motion did not pass. Commissioner Kelly inquired whether or not the City Council has had any thoughts on Point of Sale versus Truth in Housing -type ordinances. Councilmember Carmody replied that the mayor had recently talked to Dan Ryan, a realtor in Brooklyn Park and one of the key members of the "Come Home to the Park" campaign, and Mr. Ryan had thought that the City of Hopkins had enacted a good program. The Hopkins program is a Truth in Housing -type ordinance. With regard to other councilmembers, Councilmember Carmody noted that Councilmember Hilstrom had expressed a concern that homes are brought up to current codes, Councilmember Mann expressed a concern over the cost to the homeowner and that she was not able to contact Councilmember Kalligher to get her thoughts on the matter. There was a motion by Co Erickson to recommend that the City Council consider the adoption of a Point of Sale or Truth in Housing ordinance and to ask members of the Housing Commission in favor of Truth in Housing to submit a brief to the City Council and those in favor of Point of Sale also submit a brief and ask the City Council to approve one of the ordinance types. Commissioner Opat stated he agreed with Commissioner Erickson that something needs to be done and we do need to move forward. Commissioner Erickson stated that he was trying to convey in his motion that the commission is divided, but we also want to move forward on this issue. Commissioner Kelly seconded Commissioner Erickson's motion. Chairperson Torres inquired whether there may be some way to combine Point of Sale and Truth in Housing. Commissioner Kelly noted that the City could require hazardous items to be corrected whether or not the house is sold. The commission discussed the motion on the floor and noted that the City Council could send it back to the Housing Commission for a clearer recommendation, but that this recommendation is one that the Housing Commission can give to the City Council right now. Commissioner Opat offered a friendly amendment to Commissioner Erickson's motion to state that repairs on hazardous items in the home be repaired before closing on the house on either a Point of Sale or Truth in Housing ordinance and that the City inspections staff would be responsible for determining the hazardous items. I Commissioner Erickson accepted Commissioner Opat's amendment, but noted that he is still requesting the City Council to choose between Point of Sale and Truth in Housing. 5 -16 -95 -4- AMENDED would be responsible for determining the hazardous items. Commissioner Erickson accepted Commissioner Opat's amendment, but noted that he is still requesting the City Council to choose between Point of Sale and, Truth in Housing. Upon a vote being taken on Commissioner Erickson's motion, as amended by Commissioner Opat, the following commissioners voted in favor: Chairperson Torres, Commissioners Erickson, Opat, Olek, Kelly, Carter and Gonyea. Commissioner Yang abstained from the vote. The motion passed. DISCUSSION AND REVIEW OF APRIL 25, 1995 SOUTHEAST NEIGHBORHOOD MEETING Councilmember Carmody noted that she observed only three Housing Commission members at the April 25 neighborhood meeting. Commissioner Erickson stated he believes the meeting on the 25th went well, and that as County Commissioner Opat pointed out, we are now in "first first hour of the project. Councilmember Carmody noted that County Commissioner Opat called for a show of hands towards the end of the meeting of those that wanted to abandon the project now versus those who wanted to move to the next step in the process, which would be to determine the feasibility of the project. County Commissioner Opat stated that he thought the split in the show of hands was approximately 60% to 40%, with the 60% being in favor of taking the next step. The Community Development Specialist noted that he would keep the commission informed with regard to any upcoming activities related to the Hennepin Community Works Program. DISCUSSION AFFORDABLE HOUSING ISSUES Councilmember Carmody explained that she would like the Housing Commission to review several issues with regard to the City's housing stock and, specifically, some items which address affordable housing in the City. She noted she would like to have information on a tax revenue breakdown on single family versus commercial versus multi family by school district. Another issue she noted was the issue of senior housing, pointing out that there are five housing projects for seniors in the City now, and posed the question of how much senior housing does the City need in the future, adding that she would like to see the Housing Commission work on this and other housing- related issues. Another issue of concern for Councilmember Carmody was the affordable housing conversions, such as Melrose Gates, and what is the effect of these conversions with regard to the current Metropolitan Council plans for affordable housing in the region. 5 -16 -95 _5_ Another issue addressed by Councilmember Carmody was what does the City want to do with the 15 set aside of tax increment financing money for housing which is specifically addressed in the special tax increment legislation passed for Brooklyn Center. The Community Development Specialist pointed out that the 15 set aside is a requirement of the special tax increment legislation created for Brooklyn Center and requires that 15 of any tax increment financing revenues from the new tax increment districts in the City would have to be deposited in a housing fund and used for housing related activities. COMMISSION'S SUMMER SCHEDULE After discussion by commission members, the commission decided to meet through the summer and not take the usual summer recess for June, July and August. ADJOURNMENT There was a motion by Commissioner Kelly and seconded by Commissioner Yang to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:40 p.m. Chairperson 5 -16 -95 -6-