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HomeMy WebLinkAbout1999 12-21 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 DECEMBER 21, 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 Lloyd Deuel, Kathleen Carmody, Mark Yelich, Donald Arm and James Lano. Also in attendance were Council Liaison Ed Nelson and Community Development Specialist Tom Bublitz. Commissioners Muhammed Okoya -Lawal and Michael VonDeLinde were absent and excused from the meeting. APPROVAL OF AGENDA There was a motion by Commissioner Carmody and seconded by Commissioner Deuel to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES November 16, 1999 There was a motion by Commissioner Carmody and seconded by Commissioner Deuel to approve the minutes of the November 16, 1999 Housing Commission meeting as submitted. The motion passed. CHAIRPERSONS REPORT Chairperson Erickson noted the reappointment of Commissioners Donald Arm and Muhammed Okoya -Lawal to an additional term through December 31, 2002. FOLLOW -UP REPORT ON TOWNHOUSE LOAN PROGRAM DISCUSSION FROM NOVEMBER COMMISSION MEETING The Community Development Specialist distributed a memorandum from Brad Hoffman the City's Community Development Director, regarding townhome rehab loans. Commissioner Lano arrived at 7:08 p.m. Chairperson Erickson commented that the memorandum from the Community Development Director echoes some of the comments of commission members at the October meeting. He noted his recollection of the October meeting was that there was a consensus of the commission 12 -21 -99 -1- that the City should not buy down the interest rate on loans involving a specific group of homeowners. Commissioner Arm commented that he did not know how the City could create a special loan program for townhouses and not help groups such as senior citizens. The Community Development Specialist noted he had talked to two bankers regarding loans for townhomes and summarized his conversations with Norwest and Marquette banks. He noted that Norwest indicated that they had done a loan for siding replacement for a townhouse development at approximately $8,000 per unit. The individual at Norwest explained that the improvement was funded by individual homeowners through a variety of means such as lines of credit, home equity loans and cash savings. The average loan interest rate was approximately 8 In another example, he noted that Marquette Bank indicated they have not done loans for townhouse associations and acknowledged the difficulty in doing so. The representative from Marquette stated that the bank can do individual loans for exterior improvements in a townhouse development but as a practical matter the bank must charge a higher interest rate to cover any delinquencies. He noted the bank cannot offer the loan to the association since the bank cannot foreclose on an association. He noted the representative from Marquette indicated that the bank would probably have to charge an interest rate similar to a lower credit card rate such as 11 or 12 In summary the Community Development Specialist noted that it is quite difficult for townhouse associations to obtain loans but the Norwest example demonstrated that it can be accomplished at a reasonable interest rate although perhaps not for every townhouse association. Commissioner Arm commented on the example of the difference in interest rates for a 3 loan versus a 7% loan on $10,000 for 15 years. He noted that in the Community Development Director's memorandum the difference in monthly payments would be $68.89 for a 3 loan on $10,000 for 15 years and for a 7% interest rate the monthly payment would be $89.36 for a monthly differential of $20.47. The Commission members continued their discussion on the townhouse loan program and the Community Development Director's memorandum. Commissioner Carmody offered a recommendation with regard to the townhouse loan program. The recommendation offered by Commissioner Carmody was as follows: It is the recommendation of the Housing Commission to deny the various townhome associations special low interest loans for capital improvements. The only way the Housing Commission believes such aloan program can be funded is to make it part of a special, low or reduced interest rate loan program for all homeowners (single family or townhome), and to offer it city wide. The Housing Commission finds that cost to be prohibitive. Unless the Council has some more concerns or questions we will forward this recommendation to the townhome associations. 12 -21 -99 -2- Commission members considered the recommendation offered by Commissioner Carmody and Commissioner Arm made a motion to adopt the recommendation offered by Commissioner Carmody. Commissioner Deuel seconded the motion to approve the recommendation. Upon a vote being taken on the recommendation and subsequent motion, the motion passed unanimously. REVIEW BUILDING AND OCCUPANCY ORDINANCE CHAPTER 12 (12- 1001 -12 -1302) Chairperson Erickson noted that Commissioner Yelich had requested this item be placed on the agenda and deferred to Commissioner Yelich to review the item. Commissioner Yelich noted that the Housing Commission had talked at previous meetings regarding a review of Chapter 12. He explained his thought was to start with the enforcement section of the ordinance since no ordinance is effective without a mechanism for enforcement. He added that he believes the Commission should review Chapter 12 in its entirety. Commissioner Yelich briefly noted the current enforcement actions taking place in the City of St. Paul with regard to chronic code violators. He noted that he has driven around the City of Brooklyn Center on occasion and has talked to Police Chief Joel Downer regarding code enforcement who indicated the Police Department is the proper contact for code enforcement issues. Commissioner Yelich then inquired whether there were things the Commission could do to improve the enforcement process particularly in light of the fact that there appear to be a number of repeat offenders with regard to code violations. Chairperson Erickson commented that perhaps the City could create some type of repeat offender category where there may be an increase in the fine for repeat code offenders. Commissioner Carmody stated that she would like to know whether the City Council wants the Housing Commission to work on this issue and pointed out that it would save the Commission time to get direction from the City Council as to whether or not this is a project that Commission should be working on. Councilmember Nelson inquired if there is any way the Commission could help the City to address the chronic properties with regard to code violation. Commissioner Yelich commented with regard to the City Charter, it is appropriate for the Housing Commission to bring forward an issue such as this to the City Council. Commissioner Carmody suggested that the Housing Commission draft some type of letter to the City Council and that perhaps Commissioner Yelich could put his ideas in a letter to be sent to the City Council on behalf of the Housing Commission. Commissioner Yelich noted that he knows the City has made earnest efforts with regard to code enforcement and that even though the City is doing everything under the ordinance with regard to enforcement, he would like the Commission to determine whether there is anything they can do to improve code enforcement. 12 -21 -99 -3- Chairperson Erickson suggested that the Commission could look at the entirety of Chapter 12 not just one section. Commission members continued to discuss the issue of code enforcement and Commissioner Deuel inquired whether the Commission could get more information on the City of St. Paul's efforts. Commissioner Deuel also agreed with Commissioner Carmody to get direction from the City Council. Commissioner Yelich stated that he would prepare a memorandum for next month's meeting. Chairperson Erickson confirmed Commissioner Yelich's effort and directed Commissioner Yelich to prepare a memorandum for the City Council review with regard to the Housing Commission's role in code enforcement. DISCUSSION OF SENIOR HOUSING Chairperson Erickson noted that staff has requested the Housing Commission to look at the issue of senior housing in the City of Brooklyn Center. Commissioner Carmody explained she had talked to the City Manager with regard to the issue of senior housing and explained some of the areas considered for senior housing involved the removal of housing along Brooklyn Boulevard. Commissioner Yelich stated that he would like to the Housing Commission to get involved in the Brooklyn Boulevard redevelopment process. At the request of the Commission the Community Development Specialist clarified the Commission's charge with regard to senior housing and noted that it is staff's desire to have the commission look at the future demographics in the City with regard to the type of senior housing that may be needed whether it be assisted living, apartments or single level townhomes etc. Part of the review could involve actually looking at senior projects in other cities and determining what are the future needs in the City of Brooklyn Center. He also indicated he would try to define more specifically the exact charge of the Housing Commission with regard to it's investigation into senior housing. He then passed out a document titled `Building Toward the Senior Boom" produced by the East Metro Seniors Agenda for Independent Living (SAIL). He explained this documents contains a great deal of information on the future needs for senior housing in the entire metropolitan area. OTHER BUSINESS Chairperson Erickson noted there is currently a vacancy on the Commission and invited commission members to think about anyone in the community they think might be a good candidate for the commission. Commissioner Arm stated that he would like to see the Housing Commission get a tour of the new Police Station at some time in the future. 12 -21 -99 -4- ADJOURNMENT There was a motion by Commissioner Arm and seconded by Commissioner Carmody to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:24 p.m. I a 12 -21 -99 -5-