Loading...
HomeMy WebLinkAbout1999 10-19 HCM MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION OCTOBER 19, 1999 CONFERENCE ROOM B CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Erickson at 7 p.m. ROLL CALL Chairperson Ernie Erickson, Commissioners Muhammed Okoya Lawal, Lloyd Deuel, Kathleen Carmody, Michael VonDeLinde, Mark Yelich and Donald Arm. Also in attendance were Councilmember Ed Nelson and Community Development Specialist Tom Bublitz. Commissioners James Lano was absent from the meeting. APPROVAL OF AGENDA There was a motion by Commissioner Arm and seconded by Commissioner Deuel to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES September 21, 1999 There was a motion by Commissioner Carmody and seconded by Commissioner Deuel to approve the minutes of the September 21, 1999 Housing Commission meeting as submitted. The motion passed. CHAIRPERSONS REPORT Chairperson Erickson noted that in light of the guests at this evenings meeting he would move to the next agenda item. HOUSING IMPROVEMENT AREA DISCUSSION It was noted that Mr. Roger Gorman, CEO of Impact Management Services was ill this evening and could not be attendance at the Housing Commission meeting. In his place were representatives from townhouse developments managed by Impact Management including Mr. Brad Bennet of Brookwood Townhomes and Mr. Fred Hous and Cathy Andahl both of Mallard Creek Townhomes. Chairperson Erickson invited the guests to briefly describe the particular needs in their townhouse development. Mr. Brad Bennet of Brookwood Townhomes noted that the townhomes were built approximately 15 years ago with cedar siding. He noted that there is some problem with shrinkage on the siding and the overlap on the existing siding is not enough. He noted that 10 -19 -99 -1- several of the units had been stained and all roofs had been replaced in 1999. His particular need for additional funds is to provide maintenance free siding for the units because of the shrinkage and wear and splitting of the cedar siding. He explained he is looking for low interest financing to provide funds for maintenance free siding. He explained Brookwood has 16 one bedroom units and 16 two bedroom units. In response to a question from the Housing Commission, Mr. Bennet explained the current association dues for Brookwood are $127 per month with 25% of this amount being set aside for reserve and replacement. He explained the cost estimates to reside all of the townhouse units with vinyl siding is between $200,000 and $300,000. Replacement with steel siding would cost even more. In response to a question from Housing Commission members, Mr. Bennet explained that he is aware of only one unit in the complex that is a rental unit and that is a handicap unit. He also noted the association meets approximately six to eight times a year. Commissioner Yelich inquired whether or not Mr. Gorman has run any numbers on the costs of borrowing money at low loan interest rates. Mr. Bennet responded noting that Mr. Gorman thinks Brookwood needs a 3 interest rate in order to complete all the siding work at one time. Commissioner Okoya -Lawal inquired as to the market value of the units. Mr. Bennet explained that he believed the market value of the units were between $70,000 and $80,000 per unit. Commissioner Arm inquired as to the main problem with the cedar siding. Mr. Bennet explained that the association spent $20,000 on the first two buildings alone in staining and repairing them. He noted it appears the overlap was less drastic as the original construction project proceeded. One of the issues brought up by the Housing Commission during the course of the discussion is whether or not the project would have to be formally bid out if public funds were being used to do the repairs. The Community Development Specialist was asked how high the interest rate would be if Brooklyn Center did a loan program for townhomes. He explained the current policy on interest rates for public improvements such as streets, curb and gutter etc. is established at 2 points above the interest rate of the last bond issue usually with a ten year pay back. He noted that in 1999 bonds were sold at a 4% interest rate which meant that loans to do improvement projects would be at 6 In the year 2000, the bond interest rates could be 5 or above so that would mean the interest rate on loans would be between 7 and 8 It was noted that Brooklyn Park has offered a townhouse loan program at 3 The Community Development Specialist noted that he would contact Brooklyn Park city staff and review their loan program and how they arrived at their interest rate. Councilmember Nelson inquired as to the time line for Brookwood's project. Mr. Bennet explained that they would like to complete the job next summer to stop deterioration of the siding. He noted that the windows in the units are in good shape, the driveways are in good shape and that the roofs were replaced in 1999 with complete tear offs for a cost of approximately $100,000. With regard to payback of any loan he noted that the association can raise the townhouse dues by 5 per year without a special election. 10 -19 -99 -2- The Community Development Specialist briefly reviewed the Housing Improvement Area program in the city of New Hope and noted that the City of New Hope added approximately $100,000 in administrative and engineering fees to the $500,000 improvement project in the Sandpiper Cove development. Chairperson Erickson recognized Ms. Cathy Andahl with the Mallard Creek Townhouse Association. Ms. Andahl explained Mallard Creek has 132 units translating to 67 buildings all with brick fronts. She noted that the association has spent $20,000 to $30,000 on painting and has a schedule of repainting the units. She noted that the association is also developing a schedule for the replacement of siding. Mallard Creek also has cedar siding. Ms. Andahl explained the decks on the properties are in acceptable shape and explained the homeowners are responsible for decks since they are an add on to the buildings. With regard to monthly dues, Ms. Andahl noted that the dues are between $120 and $130 per month depending on the size of the unit. She noted one -half of the dues go into the reserve fund. Chairperson Erickson inquired as to the market value of the units. Ms. Andahl explained the smaller units are valued in the upper $70's and the larger units are valued in the mid $90's to $109,000. Chairperson Erickson inquired whether the association had obtained any estimates for the project. Ms. Andahl explained that no formal estimates had been obtained for the siding replacement but to do all the buildings over a six year period would require between $100,000 and $120,000 per year. Ms. Andahl noted that as with the Brookwood development, the Mallard Creek Association is looking for low interest loan money to complete the project. Commissioner Carmody inquired why the associations are requesting 3 loan funds. Ms. Andahl explained that the whole issue driving the association's interest is a low interest loan. She noted that she was also lead to believe that there were federal funds available for this project. Commissioner Arm inquired as to the number of townhouse complexes in the city of Brooklyn Center. The Community Development Specialist distributed a summary of the number of complexes and units noting that there are 13 townhouse complexes in the city with a total of 674+ units. In addition there are approximately 122 condominiums units and an additional 336 rental townhouse units. Ms. Andahl noted that if the association cannot receive a low interest rate they would likely seek funds elsewhere to complete the project. Commissioner Deuel stated he would like additional follow -up on this item and that he wanted to see the townhouse properties in the city maintained. The Commission also requested that Mr. Gorman be invited to the next meeting in November. 10 -19 -99 -3- i There was a motion by Commissioner Arm and seconded by Commissioner Deuel to table discussion of the Housing Improvement Area until the November meeting. The motion passed. OCCUPANCY LIMITS The Community Development Specialist noted he had not completed the survey of other cities regarding residential occupancy limits and he stated that he would complete the survey for the Housing Commission by the November meeting. Commissioner Okoya -Lawal stated that he believes apartment owners are looking for some way to defer the issue of occupancy limits to the Housing Commission. He indicated it was his understanding there is a federal law concerning occupancy limits now and that apartment managers are trying to overturn the law. He noted that families with large numbers of children are finding it difficult to rent properties and that apartment owners and managers are giving preference to individuals, couples or smaller families over large families. The Housing Commission continued its discussion of occupancy limits and generally agreed that the focus of the Council's concern was on single family homes not apartment units. Councilmember Kay Lasman arrived at the meeting at 8:20 p.m. Chairperson Erickson noted that the square footage in many Brooklyn Center apartments is less than in newer apartment buildings built in outlying communities. He noted that this is one reason why apartment rents are less in Brooklyn Center than many outlying communities. Chairperson Erickson continued noting that overall, the apartment units built in Brooklyn Center in the 60's and 70's were significantly smaller than the newer units built particularly in the southern suburbs. Commissioner Carmody expressed concern about enforcing an ordinance relative to occupancy limits noting the example of many families with a large number of children living in single family homes that may technically be in violation of the occupancy code. Commission members inquired of Councilmember Lasman and Councilmember Nelson as to the Council's concern with the occupancy limit regulation. Councilmember Lasman responded that the concern is that the problem appears to be more visible than in the past. The Commission continued it discussion of occupancy limits and there was a consensus to layover the item until the November meeting and look at the survey data to be prepared by the Community Development Specialist. ADJOURNMENT There was a motion by Commissioner Deuel and seconded by Commissioner Carmody to adjo a The motion passed. The Brooklyn Center Housing Commission ,dour at 8:3 m. -Chairperson 10 -19 -99 -4-