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HomeMy WebLinkAbout1996 02-20 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 FEBRUARY 20, 1996 COUNCIL CHAMBERS 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. INTRODUCTIONS Chairperson Torres introduced the new Housing Commission members, Naomi Ische and Rex Newman. Commissioner Ische explained she had graduated from the University of Minnesota housing program and is currently doing work for the City of Minneapolis and had been an intern for the City of Brooklyn Park. Commissioner Newman stated he has lived in Brooklyn Center since 1990 and has been involved in commercial construction of computer rooms related to his present job. t ROLL CALL Chairperson Robert Torres, Vice Chairperson Ernie Erickson, commissioners Todd Cannon, Lloyd Deuel, Henry Yang, Naomi Ische and Rex Newman. Also present were Mayor Myrna Kragness, Councilmembers Debra Hilstrom and Kristen Mann, Council Liaison Kathleen Carmody, City Manager Mike McCauley, Community Development Director Brad Hoffman and Community Development Specialist Tom Bublitz. Commissioner Amy Gonyea was absent and excused from this evening's meeting. Commissioner Jonathan Carter was also absent from this evening's 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 JANUARY 16, 1996 There was a motion by Commissioner Deuel and seconded by Commissioner Erickson to approve the January 16, 1996, Housing Commission minutes, as submitted. The motion passed. REQUEST BY MARK YELICH TO ADDRESS THE HOUSING COMMISSION Chairperson Robert Torres recognized Mr. Mark Yelich for the purpose of addressing the 2 -20 -96 -1- Housing Commission with regard to an item Mr. Yelich wanted to pose to the commission. Mr. Yelich stated he was raised in Brooklyn Center and in 1993 bought a home in Brooklyn Center. He pointed out the great values in homes, convenient location, and excellent park and trail systems which make Brooklyn Center a desirable place to live. He also noted that it is a widely held perception that Brooklyn Center is sliding into a state of decay and some housing values have decreased over three percent in Brooklyn Center. He added there is a perception that Brooklyn Center is a crime- ridden city, and that Brooklyn Center is shown as having a high crime index in comparison to other cities. He noted statistics have shown Brooklyn Center has the highest murder rate in Hennepin County after Minneapolis. In order to address the negative aspects of what is happening in Brooklyn Center, Mr. Yelich suggested perhaps people could be screened on their criminal background history prior to buying homes in Brooklyn Center. He explained he believed it could be accomplished with an ordinance similar to a state law that says that anyone with a Type 1 or Type 2 offense would be screened out. He explained the cost for a background check is between $50 -60. Mr. Yelich stated that this type of ordinance would require a paradigm shift in that it will be assessing people by their behavior as well as income. The City Manager commented that private managers of rental property can do this type of screening, but a citywide prohibition against people with criminal backgrounds purchasing homes probably would not work. He added that employers cannot deny employment based on criminal history unless it can be shown the offense is job related and relevant to the performance of a particular job. Mr. Yelich explained he believes the rental efforts with regard to screening are helpful, but he would like to see it pursued for single family homes to change the image of the City and that this would be a significant help and not a superficial change. He added he would like to pursue, along with the Association of Rental Managers (ARM), the City Council and the Housing Commission, an ordinance that would address the screening of potential homeowners in the City. DISCUSSION REGARDING POINT OF SALE /CODE COMPLIANCE ORDINANCE Chairperson Torres asked the Community Development Specialist to review the history of the commission's consideration of a Point of Sale and Truth in Housing ordinance over the past few years. The Community Development Specialist explained in September 1991, a discussion of Point of Sale and Truth in Housing grew out of the commission's discussion on housing maintenance and code enforcement. At that time, the commission conducted an extensive analysis of Truth in Housing and Point of Sale code compliance ordinances. Their review consisted of reviewing several ordinances in other cities, including St. Louis Park, Richfield, Crystal, New Hope, Minneapolis and St. Paul. He pointed out staff conducted a phone survey to interview city staff in several cities with regard to their experience with Point of Sale or Truth in Housing. The 2 -20 -96 -2- commission also looked at the issue of potential liability for enacting this type of program. He explained the commission also looked at alternatives to Point of Sale and Truth in Housing, including disclosure forms used by Realtors, FHA inspection reports, and the increasing availability of private inspection services. The Community Development Specialist explained in May of 1992, after the commission completed their study and analysis of Point of Sale and Truth in Housing, they recommended against enacting any Point of Sale /Code Compliance or Truth in Housing ordinance in the City of Brooklyn Center. The reasons given by the commission at that time included: The Housing Commission had a concern that payment of a fee for a Point of Sale or Truth in Housing inspection may create a contractual relationship between the City and the homeowner and /or buyer. The Housing Commission found no objective statistical evidence that a Point of Sale or Truth in Housing ordinance leads to improvement of the housing stock more than that which is achieved by a housing maintenance ordinance. ThQ commission also believed Point of Sale and Truth in Housing ordinances rely on inspection of visible areas of homes and are not able to effectively assess all systems within the house. The commission also believed implementation of a Point of Sale or Truth in Housing ordinance would require significant staff time to administer and information from cities with Point of Sale or Truth in Housing ordinances indicated inspection fees cover only a portion of personnel costs required to administer the ordinance. The Community Development Specialist continued his explanation and noted there was significant turnover on the commission after May of 1992, and in September of 1994, new commission members brought up the issue of Point of Sale and Truth in Housing as an information item. Newer members on the commission continued to pursue the Point of Sale and Truth in Housing issue, and the commission again reviewed Point of Sale and Truth in Housing ordinances, although not as in -depth as the initial study. After additional consideration, in May of 1995, the commission voted on whether or not to recommend a Truth in Housing or Point of Sale /Code Compliance ordinance to the Brooklyn Center City Council. The vote was a tie vote, with an equal number of commission members recommending Truth in Housing and a Point of Sale /Code Compliance ordinance. The "tie vote" was forwarded to the City Council to let the Council make a decision as to whether or not a Point of Sale /Code Compliance or Truth in Housing -type ordinance should be enacted. The commission felt some type of ordinance should be enacted. At their July 17, 1995, City Council work session, the Council reviewed the Housing Commission's recommendation and gave direction to staff and the Housing Commission to draft 2 -20 -96 -3- a model Point of Sale /Code Compliance ordinance for Council consideration. The Community Development Specialist then asked the commission members to take the discussion from the point at which the Council directed the Housing Commission to draft a resolution to this evening's meeting. Commissioner Erickson stated, in deliberating the various types of ordinances, the Housing Commission wanted to give some level of confidence to persons buying homes in Brooklyn Center, especially younger first -time home buyers. He pointed out even some members of the Housing Commission have had some problems that surfaced only weeks after their sale closed, and perhaps could have been discovered with a Point of Sale ordinance in effect. Commissioner Erickson stated he believes we have to educate homeowners in the City that we want to pass on quality homes to the next generation of buyers. Chairperson Torres noted Brooklyn Center has a great number of first -time home buyers. He added they can purchase private inspection for between $200 -300, and the Housing Commission contemplated a $100 price range for the Point of Sale inspection. He added potential homeowners are not likely to hire an inspector for the higher $200 -300 price range. The City Manager explained the educational process for homeowners could include a packet of information to homeowners rather than imposing another requirement such as an inspection. Commissioner Cannon explained the goal of the Housing Commission is to see the City on a steady basis with regard to home quality and added he had an FHA inspection done on his house, but the FHA inspection was done only to assess the value for the lender and not as an inspection for the buyer's protection. Commissioner Newman asked how housing code compliance issues are addressed now. The City Manager explained that presently it is a complaint- driven system with regard to single family homes or if something is noticed from the outside of the property. The Community Development Director explained the kind of detail one would get with a Point of Sale ordinance we now get only with rental licensing inspections. He added getting inside an owner occupied single family house is rare in that the city or any governmental agency needs a good reason to go inside an individual's home, and this is not done on a routine basis unless there is some significant problem noticed either outside the property or by a complaint. Councilmember Carmody explained former Housing Commission Member Keith Tuttle was one of the key reasons for re- introducing the Point of Sale ordinance at the Housing Commission. She explained he felt Point of Sale was the only way to address the interior maintenance problems in Housing. 2 -20 -96 -4- The City Manager posed the question as to whether or not the City might be better off directing its resources to correcting items we can see from the outside, which relates to a negative or positive perception of neighborhoods. Councilmember Hilstrom stated she wants to make sure we address compliance of defects in properties, otherwise we will continue to have people buying and selling homes that are defective. She added she does not want to enact a program without teeth in it. Commissioner Newman stated he ran his own house through the Bloomington inspection ordinance over the weekend and felt many parts of the ordinance were arbitrary. He cited an example of a 24" requirement in front of the toilet and added he has 18" with a bearing wall in the way. Councilmember Hilstrom stated she is also concerned about what codes would be enforced by an ordinance. Commissioner Erickson noted in the old days 60 amp services were adequate, but now most homes have higher amperage needs and the ordinance must address safety standards yet allow for accommodating older codes for items which are not safety items. He stated he is concerned people in Brooklyn Center are leaving for move -up housing in different cities. He pointed out those who will be negatively affected by a Point of Sale ordinance will be the sellers who are leaving the City. Commissioner Deuel stated his neighbors feel this a of ordinance i g type an e s generally a good flung. He added one issue is priorities: In other words, the City only has so much staff to deal with problems, including the extremely run down properties and some determination must be made as to what is the chief priority. He added he believes the blighted homes are the highest priority for the City. Councilmember Carmody explained Point of Sale and Truth in Housing are different issues from code enforcement. She pointed out she believes the question to be answered is what direction does the Council and Housing Commission want to go with regard to code enforcement and Point of Sale and Truth in Housing. Councilmember Mann stated if the City does a Point of Sale /Code Compliance ordinance and addresses hazardous items, an item such as a 60 amp service would be marked below standard. She added her concern is that whatever route the City goes with regard to this type of ordinance, we want some end results. Commissioner Erickson expressed a concern in a city such as Brooklyn Park where there is no Point of Sale ordinance, the homeowner would get nothing, but in a city with a Point of Sale ordinance the homeowner would get an inspection report on the property. He added he believes it would be better to have something to give the prospective buyer rather than nothing. 2 -20 -96 -5- Mr. Bill Gerst, representing the Minneapolis Area Association of Realtors, explained it is difficult to distinguish between Truth in Housing and Point of Sale ordinances, since Point of Sale can be both code compliance and disclosure. He explained the terminology is somewhat tricky in these ordinances. He pointed out the most recent ordinances are from the City of Hopkins and Bloomington, which are both somewhat of a compromise between a disclosure and code compliance -type ordinance. With regard to determining which items are hazardous or life threatening, the ordinances need to make a list of those items. As an example, he pointed out, Bloomington started with 60 items and ended up, with only nine items on the hazardous list. With regard to staffing for these types of ordinances, Mr. Gerst pointed out that in Truth in Housing, generally private inspectors are used. In Bloomington, he pointed out, the city has both city staff or private inspectors to do the initial inspection, but if re- inspections must be made, they are done by city staff. The City Manager inquired as to the cost of inspections under this program. Mr. Gerst explained that a Truth in Housing inspection nets between $90 -125 for 45 minutes to a one hour inspection. However, he pointed out, a buyer's inspection on behalf of the buyer is between $200 -300 for a two to three hour inspection plus a report. He explained these inspections are done for buyers by private inspection companies. Councilmember Carmody stated again she would rather have nothing at all in terns of an ordinance rather than only a Truth in Housing ordinance with no code compliance. Councilmember Hilstrom stated she feels code enforcement is a number one priority and would add staff here first. She noted any Point of Sale /Code Compliance ordinance would have to have teeth in it and would have to help avoid deterioration of the housing stock in the City. Councilmember Mann stated she does not see any point to Truth in Housing and that code enforcement is a top priority with the average City resident. She added she would like to see an ordinance proposed by the end of the year. The City Manager stated he thinks any ordinance needs to be adapted to the needs of Brooklyn Center and at the present time he believes a Point of Sale ordinance is not a priority. Councilmember Hilstrom stated part of the problem is an issue of education, and we should educate people while they are living in their home as to the importance of issues in their home before they have to fix it under a Point of Sale ordinance. She added she would also like to encourage not only maintenance items, but value -added improvements in homes. For example, she pointed out, perhaps it could be determined as to what are the top ten remodeling ideas that could add value to homes and these could be promoted. 2 -20 -96 -6- The City Manager stated the Housing Commission could work on starting a list of items or suggestions for home repair and rehab items that would add value to homes. Commissioner Newman asked whether or not the commission should approach the Council with a synopsis or draft ordinance before the end of the year. There was a motion by Commissioner Erickson and seconded by Commissioner Deuel to table to the March meeting the consideration of a Point of Sale /Code Compliance ordinance with the idea that the commission will have a list of hazardous items from staff so the commission can address these items in the ordinance. The motion passed. OTHER BUSINESS Chairperson Torres inquired if there was any other business to be considered by the commission this evening. There being none, he commented he felt it was very informative and helpful to have the Council and staff present to discuss this issue with the Housing Commission. ADJOURNMENT There was a motion by Commissioner Cannon and seconded by Commissioner Yang to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:40 p.m. Chairperson 2-20-96 9 -7