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HomeMy WebLinkAbout1996 01-16 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 JANUARY 16, 1996 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. II ROLL CALL Chairperson Robert Torres, Vice Chairperson Ernie Erickson, commissioners Todd Cannon, Lloyd Deuel, Henry Yang, and Amy Gonyea. Also present were Council Liaison Kathleen Carmody and Community Development Specialist Tom Bublitz. Commissioner Jonathan Carter was absent and excused from the meeting. APPROVAL OF AGENDA There was a motion by Commissioner Erickson and seconded by Commissioner Deuel to approve the agenda, as submitted. The motion passed. APPROVAL OF MINUTES SEPTEMBER 19, 1995 There was a motion by Commissioner Erickson and seconded by Commissioner Cannon to approve the September 19, 1995, Housing Commission minutes, as submitted. The motion passed. I APPROVAL OF MINUTES OCTOBER 17, 1995 There was a motion by Commissioner Deuel and seconded by Commissioner Erickson to approve the October 17, 1995, Housing Commission minutes, as submitted. The motion passed. Councilmember Carmody introduced Mr. Rex Newman and Mr. Mark Yelich as individuals interested in serving on City commissions. ELECTION OF CHAIRPERSON Chairperson Robert Torres turned the meeting over to Vice Chairperson Ernie Erickson for the purpose of electing a chairperson for 1996. Chairperson Erickson opened the nominations for Housing Commission chair and inquired 1 -16 -96 _1_ whether there were any nominations for the position. Commissioner Cannon nominated current Chair Robert Torres to continue as chair. Vice Chairperson Erickson asked if there were any other nominations from the floor. Doing this three times and hearing no other nominations, he asked for a unanimous ballot for the election of Robert Torres as chairperson of the Housing Commission. There was a motion by Commissioner Cannon and seconded by Commissioner Yang to approve the election of Robert Torres as chairperson of the Housing Commission for 1996 by unanimous ballot. The motion passed with a unanimous vote. DISCUSSION OF HOUSING GOALS Councilmember Carmody reviewed her memorandum dated November 6, 1995, to Housing Commission members in which she set forth four major housing goals for discussion by the commission. The proposed goals were as follows: 1. Provide move -up housing Redevelop areas of land into $100,000 -plus homes Provide a broader variety of apartments, townhomes or condominiums, especially for the senior market 2. Target marginal housing areas for redevelopment g g g P Remove non- conforming residential uses along Brooklyn Boulevard Develop a specific housing plan for the southeast neighborhood that addresses the encroaching deterioration of homes near the Minneapolis border Continue the Community Development Block Grant deferred loan program and the Household Outside Maintenance for the Elderly (H.O.M.E.) program 3. Remove ten percent (10 of apartment housing Complete acquisition and redevelopment of ten acre site north of I -694 and east of 252, including Brookdale Motel and Lyn River Apartments Develop a plan to determine which apartment complexes would be best to remove based on factors such as tax base impact, school district, crime statistics for the complex, management capability, maintenance of the structure, etc. 4. Encourage maintenance and improvement of housing stock Develop a Point of Sale inspection program Restructure or reorganize the code enforcement program to maximize its productivity Reeducate the residents (both multi- family and single family homeowners) as to frequent code violations Educate residents on how to properly maintain their homes to maximize housing value 1 -16 -96 -2- Chairperson Torres commented that the fast two goals have been stated goals of the commission for some time. Commissioner Erickson stated he believes the commission felt move -up housing was in some ways unrealistic due to the lack of available land in the City. In response to Commissioner Erickson, Councilmember Carmody suggested that there may be some available larger parcels in the future for such redevelopment, including an area of property available for purchase from MNDOT which is just west of Highway 252 between 67th and 69th Avenues, the Willow Lane area north of 694 and south of 65th, and possibly along Humboldt Avenue in connection with the Hennepin Community Works Program. Commissioner Erickson stated that move -up housing was an admirable goal, but it also needs the support of financial forces outside the City such as Hennepin County. He pointed out one factor the City lacks is a varied terrain to provide for the kind of housing many people want, such as walkout basements. Also, he pointed out, the City does have relatively high water tables which also creates problems for this type of construction. He added that the City does have some move up housing along the river, but the City is somewhat limited in terms of providing large amounts of areas for move -up housing. Commissioner Erickson suggested that perhaps goals 1 and 4 could be combined and remodeling and additions could be encouraged to get more out of the standard 1,050 square foot rambler that is so prevalent in the City. He stated that by making the existing housing stock more current and competitive this may be a way of addressing the need for move -up housing on the part of City residents who have purchased an entry level home and are now looking for some more options for their home. Councilmember Carmody asked the commission to discuss their interpretation of move -up housing in terms of price range. Commissioner Erickson stated the majority of homes in Brooklyn Center are typically in the $75,000 to $80,000 range and move -up housing could be anything over $100,000. Commissioner Gonyea felt the move -up market was closer to $130,000 to $150,000, but construction of these types of homes may be risky to build as in -fill housing. She suggested the commission focus on what is realistic for the City of Brooklyn Center. The Community Development Specialist pointed out the house going up on the lot at 6601 Bryant, which was sold by the Brooklyn Center EDA, will be in the $110,000 sale price range and that this is a multi- level home with a three -car garage. Commissioner Gonyea stated that she would support goals 2 and 4, but is concemed about the feasibility of goal number 1 to provide move -up housing. Commissioner Erickson stated that removing single- family homes on Brooklyn Boulevard was an old goal of the City, but that there were market factors that did not move this along. Specifically, he pointed out, the market did not move to buy up these homes to convert them to commercial uses. Councilmember Carmody pointed out that everything along Brooklyn Boulevard up to 70th from the freeway will be bought for the widening of Brooklyn Boulevard. 1 -16 -96 -3- Commissioner Gonyea stated one option for housing might be the construction of handicapped housing and there appears to be a good market for this type of housing. She cited a project in Robbinsdale as an example. Councilmember Carmody commented on goal 2, which was to target marginal housing areas for redevelopment, and pointed out an example of this type of housing area would be along 53rd Avenue between Camden and Bryant where a significant amount of lower value housing now exists. Chairperson Torres stated he has a concern about acquiring property and leaving it vacant for extended periods of time. Commissioner Erickson suggested one of the main goals of the Housing Commission should be to encourage the improvement of the existing housing stock. Councilmember Carmody commented that goal 2, targeting marginal housing areas for redevelopment, is also related to code enforcement and the Community Development Department and Police Department are now working together to develop a new approach to code enforcement. There was a motion by Commissioner Gonyea and seconded by Commissioner Erickson to table the discussion on housing goals to the February Housing Commission meeting. The motion passed. Commissioner Erickson suggested that item number 9 be moved up on the agenda since there was a guest present at the meeting to address the item. STAFF REPORT ON POINT OF SALE ORDINANCE The Community Development Specialist reviewed a table he had prepared comparing housing inspection checklists of three different types of ordinances addressing housing inspection. He pointed out the ordinances included St. Louis Park, Crystal and Bloomington and noted, at the commission's request, these were ordinances ranging from the most restrictive (St. Louis Park) to a less restrictive form of Point of Sale in Bloomington. Chairperson Robert Torres recognized Mr. Bill Gerst, Staff Vice President of Public Affairs for the Minneapolis Area Association of Realtors. Mr. Gerst explained his organization supported a Truth in Housing -type ordinance over a code compliance ordinance. He indicated he believes there are sufficient disclosures available now from the owners of property at the time of sale and the FHA inspectors' information. He added his data shows only 3 -5 of homes are for sale each year, and only a small amount of homes would be affected by the ordinance in any given year. Councilmember Carmody inquired as to how many FHA loans per year were done in Brooklyn 1 -16 -96 -4- Center. Mr. Gerst stated 291 home sales were completed in 1995, and of these 163 sold with FHA financing. Commissioner Erickson stated over the past couple of years a number of items have come to the attention of the commission with regard to faulty items on homes purchased by individuals in Brooklyn Center, and the Housing Commission was unanimous that either a Truth in Housing or Point of Sale -type ordinance was necessary. He pointed out the commission was split on which type of ordinance was best for the City, but they unanimously believe some form of inspection program was necessary. Chairperson Torres recognized Mr. Rex Newman, who stated he grew up in St. Louis Park when the Point of Sale ordinance was first adopted. He explained at that time homeowners were excited about the ordinance, but in the span of ten years their mood changed and the ordinance became a negative over time. One of the problems he pointed out was that homeowners were not aware of the extent of the items required to be corrected when they sold their home after a number of years. He also pointed out that consistency in inspections is a problem. He explained homeowners can get inspections on the open market for between $200 and $300. Mr. Gerst commented with either Truth in Housing or a code compliance ordinance the house is inspected and a disclosure is made. Commissioner Gonyea inquired whether it is harder for a Realtor to sell a house in a Point of Sale city. Using Richfield as an example, Mr. Gerst pointed out in that city there are only two inspectors doing Point of Sale inspection and at busy times of the year there are delays caused by the volume of inspections. He pointed out in St. Louis Park the initial inspection is done by a private inspector and follow -up inspections on certain items are done by City staff. Chairperson Torres recognized Mr. Mark Yelich who inquired if there was any evidence that these inspection programs derive any benefit in terms of housing values. He pointed out it appears St. Louis Park can neither prove nor disprove the benefits of the Point of Sale ordinance with regard to improved housing values. The commission continued its discussion on Point of Sale ordinances. The Community Development Specialist explained based on previous discussions of the commission, the commission wanted to see several types of ordinances, from most restrictive to least restrictive. He stated rather than drafting three separate ordinances for review, he would like input from the commission as to the type of ordinance they would like to see at this point, such as a Crystal type ordinance, Bloomington or St. Louis Park ordinance. Chairperson Torres asked commission members to indicate what their preference was with regard to the type of ordinance being considered at the present time. Commissioners Gonyea, Cannon and Yang preferred the Bloomington -type ordinance and commissioners Erickson, Deuel and Torres preferred the Crystal -type ordinance. 1 -16 -96 -5- Commissioner Erickson commented that the commission was again split on the type of ordinance they would prefer to consider and he indicated he was willing to change his preference to support the Bloomington -type ordinance so the commission could break the deadlock and begin to develop an ordinance. There was a motion by Commissioner Cannon and seconded by Commissioner Gonyea to use the City of Bloomington's housing inspection ordinance as a model for developing an ordinance for the City of Brooklyn Center. The motion passed. DISCUSSION REGARDING PRESENTATION FOR FEBRUARY 7, 1996 JOINT COUNCIL AND ADVISORY COMMISSION MEETING Chairperson Torres stated he has a conflict with a class that evening and would not be able to attend the February 7 meeting. Councilmember Carmody reviewed several items she suggested the commission present at the February 7 meeting, including a review of the Metropolitan Livable Communities Act and its impact on the City of Brooklyn Center, a presentation on the housing goals for the City, a presentation on Point of Sale ordinances and examples of what they can do for home buyers, and a presentation on the Hennepin Community Works Program and its potential impact on the City. The commission members discussed the various items to be presented and there was a general consensus that Vice- Chairperson Erickson would coordinate the presentations and that he and Councilmember Carmody and the Community Development Specialist would meet to plan the presentation for February 7. ADJOURNMENT There was a motion by Commissioner Gonyea and seconded by Commissioner Erickson to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 9:10 p.m. Chairperson 1 -16 -96 -6-