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HomeMy WebLinkAbout1977 10-03 HRAMMINUTES OF THE PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION OCTOBER 3, 1977 CITY HALL Call to Order The Brooklyn Center Housing and Redevelopment Authority met in special session and was called to order by Chairman Philip Cohen at 7:30 p.m. Roll Call Chairman Philip Cohen, Commissioners Maurice Britts, Tony Kuefler and Gene Lhotka. Also present were Acting H£A Director James Merila, Director of Finance Paul Holmlund, Director of Parks and Recreation Gene Hagel, Director of Planning and Inspection Blair Tremere, and Administrative Assistant Ronald Warren. Chairman Cohen reported that Commissioner Fignar had in- fokmed him that he might not be able to attend this evening's meeting and that if he was able he would be late. Invocation Ccmmissioner Britts offered an invocation. Approval of Minutes Motion by Commissioner Britts and seconded by Commissioner 124-77 Kueflerto approve the minutes of the January 24, 1977 Housing and Redevelopment Authority meeting as submitted. Voting in ',favor: Chairman Cohen, Commissioners Britts, Kuefler, and Lhotka. Voting against: none. The motion passed unanimously. HRA Budget The Acting HRA Director introduced the first item of business, Consideration that of consideration of the 1978 HRA budget. He stated that for the last three years the City has levied a one-third mill levy, which is the statutory maximum, and has accumu- lated approximately $112, 000 in HRA funds. He recommended that this levy be authorized for 1978 which it would generate approximately $41,500. He further recommended that the proceeds of this special tax be held in a "Housing and Redevelopment Project Fund`.' for future use. Commissioner Britts commented that in the past there has been discussion about using HRA funds for augmenting other housing programs. He further commented that it had also been mentioned that possibly these HRA funds could not be utilized unless the Brooklyn Center HRA received special authorization from the State Legislature. He requested an update regarding this matter. Chairman Cohen responded that there have been indications that the HRA would need specific authorization to utilize HRA. funds for various projects that might be proposed. He pointed out that it seems apparent that HRA's in other communities have expended funds possibly without the appropriate legisla- ture authorization. He explained that this matter is being discussed by the State Legislature and that he would suggest this matter be further researched and, if the need exists, prepare the necessary draft legislation to seek such authoriza- tion. -1- 10-3-77 In response.to an inquiry by Commissioner Britts, Chairman Cohen stated that by the end of November we should have a better idea of whether or not special legislation would be needed to expend HRA funds on various projects. Chairman Cohen stated that he felt it would be beneficial to hold a joint HRA/Housing Commission meeting to discuss housing needs and programs sometime after the new City Manager is on board. ..Member Maurice Britts introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY BUDGET FOR THE YEAR 1978 PURSUANT TO MSA CHAPTER 462.545, SUBDIVISION 6 The motion for the adoption of the foregoing resolution was duly seconded by member Gene Lhotka, and upon vote being taken thereon, the following voted in favor thereof: Philip Cohen, Maurice Britts, Tony Kuefler, and Gene Lhotka; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. Member Gene Lhotka introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING THE TAX LEVY FOR THE BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY FOR THE YEAR 1978 The motion for the adoption of the foregoing resolution was duly seconded by member Tony Kuefler, and upon vote being taken thereon, the following voted in favor thereof: Philip Cohen, Maurice Britts, Tony Kuefler, and Gene Lhotka; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. The Acting HRA Director introduced the next item of business on the agenda, that of a report on the Section 8 Rent Subsidy Program. He stated that the HRA has been furnished with a report relating to this program and commented that of the 290 eligible applicants that have made application for this program since September, 1976, there are presently 64 that are under contract and receiving rent assistance payments. He added that another 20 eligible applicants will be under contract during the month of October which will raise the total number of rent assistance recipients to 84 in the City of Brooklyn Center. He stated that approximately 70% of all persons receiving rent assistance and living in Brooklyn Center had lived in Brooklyn Center prior to their coming on the program. He reported that the Metro HRA is presently certifying elderly individuals with an annual income of $3,600 a year and, for a family of three, applicants with an annual income of less than $4,500 a year. He gave an example of how the Rent Assistance Program provides subsidies and pointed out that an eligible applicant receiving rent assistance would pay no more than 25% of their income toward their rent with the subsidy accounting for the difference. RESOLUTION NO. 77-7 RESOLUTION NO. 77-8 Section 8 Rent Subsidy Program 10-3-77 -2- A brief discussion ensued relative to the report with Chair- man Cohen commenting that HUD establishes fair market rents for this program and that there is an ongoing battle between the Metro HRA and HUD as to what these fair market rents should be. The Acting HAA Director introduce the next item of business Minnesota Housing on the agenda, that of a report relating to the Minnesota Finance Agency Housing Finance Agency Rehabilitation Grant Program. He Rehabilitation stated that the HRA had been furnished with a report relating Grant Program to this program. He briefly reviewed the report and explained that the purpose of the program was to make money available to eligible lower income homeowners for improvements to their dwellings which would directly affect .the energy efficiency, safety, or habitability of the dwelling, or which would increase the property's compliance with applicable housing codes. He explained that the City of Brooklyn Center had entered into a cooperative grant program contract with the Metro HRA and had received an allocation of State funds in an amount of $15,236 for rehabilitation grants in Brooklyn Center. He further explained that the City had received 15 grant applications and that 9 of these applicants had proved eligible for rehabilitation grant funds. He stated that these applications were reviewed and ranked by the Housing Com- mission using ranking criteria approved by the City Council and that the City Council had endorsed 8 of these grant appli= cations . He noted that An addition to these 8 grant applica- tions one application was received late and processed without review by the' Housing Commission because the City had the opportunity to make use of additional grant money which was available from communities which had not utilized their full allocation of grant funds. The Acting HRA Director reported that the '9 grant applications for rehabilitation projects were approved by the Minnesota Housing Finance Agency and that work on all but one of these properties has been satisfactorily completed. He pointed out that work on the remaining property is progressing satisfacto- rily and is nearly completed at this time. He further reported that the total amount of funds for grants in 1976-77 amounted to $18,312.79. The Acting HRA Director then reported that the City of Brooklyn Center has been allocated $18,229.86 for rehabilitation grants in 1977-78. He explained that criteria for awarding these grants is basically the same as in 1976-77 with a few excep- tions. He reported that the elderly priority has been droppers.. and that the repayment agreement has been extended from 5 years to 7 years. He added that ranking criteria must be approved by the Minnesota Housing Finance Agency before being used by the grant screening committee which was not required during 1976-77. He added that a special priority for improving the accessibility of property for handicapped applicants was added for the upcoming grant program. The Acting HRA Director concluded his report by stating that it is hoped that grant applications for the upcoming Rehabili- tation Grant Program will be taken in October and that already the City has received approximately 17 requests for applica- tions at this time. -3- 10-3-77 A brief discussion ensued relative to the new program criteria, particularly the special priority for improving the accessibility of property for handicapped residents. In response to an inquiry by Commissioner Britts, the Director of Planning and Inspection explained that persons wishing to get further information on the grant program can contact City Hall and their names will be placed on a mailing list for notification once applications are to be accepted. Chairman Cohen commended the staff for their reports on the Section 8 Rent Subsidy Program and the Minnesota Housing Finance Agency Rehabilitation Grant Program. Motion by Commissioner Britts and seconded by Commissioner Lhotka to adjourn the meeting. Voting in favor: Chairman Cohen., Commissioners Britts, Kuefler, and Lhotka. Voting against: none. The motion passed unanimously. The Brooklyn Center Housing and Redevelopment Authority adjourned at 7:58 p.m. r GG~nan Adjournment 10-3-77 -4-