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HomeMy WebLinkAbout2017 09-25 CCM Work SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY/WORK SESSION SEPTEMBER 25, 2017 CITY HALL - COUNCIL CHAMBERS [ItSII]HI]DIl The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson at 6:00 p.m. I tI] U u:w mi Mayor Tim Willson and Councilmembers Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Finance Director Nate Reinhardt, Acting Director of Public Works Mike Marsh, Director of Business and Development Gary Eitel, Planner and Zoning Administrator Ginny McIntosh, Deputy Director of Building and Community Standards Jesse Anderson, City Attorney Troy Gilchrist, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS None. MISCELLANEOUS Councilmember Lawrence-Anderson invited the City Council to participate on October 7, 2017, to help the Housing Commission deliver new neighbor welcome bags from 10 a.m. to 2 p.m. If all the bags are not delivered on October 7, 2017, the second date is scheduled for October 21, 2017. Councilmember Ryan referenced an article, published on the website of ProPublica, entitled "Living Apart: How the Government Betrayed a Landmark Civil Rights Law," which addressed the Fair Housing Act. In response to a City Council question from the last meeting, City Manager Curt Boganey reported the Police Department does have a chip reader and a contract with PUPS to read animal identification chips. Mayor Willson reminded Councilmembers that the Hennepin County Drug and H.O.M.E.S. Court is coming up and asked members to notify him if they would like to attend. I I] K!S1uJfI [I]tI]'LI) 1IiLt,WNUtU1UkU3U I 1U U 09/25/17 -1- I] 1 17.1 H U 1)1 [I1IfIk[SJUNL City Manager Curt Boganey introduced the item and stated it is recommended the City Council consider providing direction to staff regarding actions to take in response to the presentation on August 14, 2017, by the African Career and Education Resource, Inc. (ACER) and Community Action Partnership of Hennepin County (CAPHC) regarding the affordable housing crisis affecting residents throughout our region and specifically Brooklyn Center. He stated the City Council had directed this issue to be discussed at a Work Session. Mr. Boganey described the three strategies raised during the August 14, 2017, presentation as follows: Advanced Notice of Intent to Sell Mr. Boganey explained this strategy would require the owner of an affordable rental apartment complex 'naturally occurring affordable housing' (NOAH) to provide public notice of their plan to sell their apartments. During the advance notice period, affordable housing advocates would have an opportunity to find a buyer that might be willing to retain the property as affordable housing. Just Cause Eviction Mr. Boganey explained this strategy would provide that a landlord could only evict a tenant for just cause, making it difficult for landlords to evict tenants simply to clear the apartment in an effort to raise rents and replace tenants who have consistently met their legal tenant obligations for many years. Ensure Acceptance of Housing Subsidies Mr. Boganey explained the purpose of this strategy is to require landlords accept a Section 8 voucher from a tenant who meets all other tenant acceptance standards. In recent years, some landlords have decided to not rent to Section 8 voucher holders so this proposal would ask the City Council to consider an ordinance prohibiting landlords from refusing tenancy strictly on the basis of how it is paid. Councilmember Ryan noted by current law, accepting Section 8 vouchers is voluntary. Mr. Boganey explained the two types of Section 8 programs, one being site based that is not voluntary and one being non-site based that is voluntary. Councilmember Butler stated her interpretation that the ordinance would not suggest landlords would have to rent to Section 8 renters but rather to take away the ability to discriminate against Section 8 voucher holders. Instead, the decision to rent would have to be based on their rental history or some other valid reason. Councilmember Graves stated that is also how she recalls the conversation but she does not recall all of the specifics. 09/25/17 -2- Mr. Boganey advised if the City Council is interested in pursuing such an ordinance, specific language would need to be drafted for the City Council's review. He stated he and Mayor Willson attended a tour by this interest group during which they explained their proposals, Mr. Boganey explained the proposal is that the sole reason for denying a person a lease cannot be that they receive a Section 8 housing subsidy and if the City did adopt such an ordinance, landlords would be precluded from discriminating against a renter based solely on the source of rent funding. Councilmember Graves stated in some cases, it may not be discrimination but a matter of property owners keeping their heads above water as sometimes payments from the government may not be made on time. She noted also that sometimes people don't pay their rent either but she can understand the concern of landlords if there is a longer waiting time to receive the rent. Mr. Boganey stated when talking with landlords who do not accept Section 8 vouchers, many will say it is because of the extraordinary or unreasonable number of government inspections, red tape, and delay in receiving rents. So, landlords will argue they are not rejecting the tenants but, rather, the Section 8 process. Councilmember Graves stated the presentation had talked about the location of buildings that may be at risk of being sold and turned over, taking away NOAH. She suggested it would be good to look at those locations. Councilmember Graves stated she supports the strategy relating to requiring just cause for eviction, even if there is a new owner, so some protection is provided. Councilmember Graves noted the City is already taking steps to purchase older buildings to preserve affordable housing. Councilmember Ryan stated with a possible Section 8 action by the City Council, he tracked the Minneapolis ordinance that prohibited landlords from refusing to rent to Section 8 voucher holders. He noted that multi-family property owners sued Minneapolis and that case is pending in District Court. Councilmember Ryan stated his concern that it would be better for Brooklyn Center to wait and see how that lawsuit is resolved. City Attorney Troy Gilchrist stated he understands a court decision has not yet been issued on that case and that is a consideration of the City Council if they want to wait until a decision is rendered in the Minneapolis case. However, with appeals it could take several years. Mr. Gilchrist explained that 55 property owners brought the case against the City of Minneapolis. He advised should the City adopt an ordinance and the court decision is contrary, then the City would have to repeal its ordinance or address the issue within the ordinance. Councilmember Ryan stated the City may also have to pay the cost to defend the ordinance and potentially a higher cost if the lawsuit is lost so he would prefer to wait until the Minneapolis case is determined. Mr. Gilchrist stated if impacting someone's constitutional rights, it raises particular concern because of the way the law is set up to protect those rights and significant penalties can be imposed including reimbursing attorney fees and compensatory damages. In this particular 09/25/17 -3- setting, he stated that concern may not be as acute as with other circumstances, but it still needs to be considered. Mayor Willson stated he does not doubt there is an issue in the Metro with oversight of Section 8 housing, but he is not yet in a position to decide whether to look into it as an analysis of clientele has not been conducted and Brooklyn Center apartments and single-family home rentals have not been identified to determine whether any are site specific Section 8 housing. He noted some may be since it was a boon at the time many apartment buildings were constructed. Mayor Willson asked whether there is an issue in Brooklyn Center now and if any residents have stated they have this issue. He noted the City holds monthly rental management meetings and that would be a good opportunity to raise this issue to gain their input. Mayor Willson stated he understands the requirement for just cause for eviction but ACER and CAPHC also want the City to require pre-sale notification so organizations can determine if they can purchase the property to save the affordable housing. He asked whether that would also involve an amendment to the City's licensing requirements, to require City notification prior to a sale. Mayor Willson stated that would also raise a concern about allowing a non-profit to amass rental housing in the City. Mayor Willson stated there has been a lot of conversation about freedom of speech relating to panhandling and there is now a Supreme Court decision on a person that sued because a City Council would not allow them to hold up signs or speak if they were disruptive. He explained it turned out to be a first amendment right and freedom of speech issue and stated his concern in how that may impact City Council meetings. Mayor Willson stated he has been tracking the City of Minneapolis lawsuit as well as issues with multi-family apartment ownership. He agreed Brooklyn Center will need to track that lawsuit and decision, once rendered. Mayor Willson stated the City's housing complaint filed jointly with the cities of Richfield and Brooklyn Park is in Chicago, under review by HUD, and a determination will be made. If that determination supports what the City has been telling them, then the article Councilmember Ryan provided will be germane and make it more palatable to move forward with an ordinance. Mayor Willson stated at this point, he is not sure the three strategies proposed by ACER and CAPHC are the best for Brooklyn Center. He noted the City has a successful rental licensing process that includes agreements that renters are signing and some of this data is already in those agreements. Thus, he would ask whether Brooklyn Center has a problem or if these issues are already covered under current rental licensing process and agreements. Mayor Willson agreed there is a shortage of affordable rental housing in the Metro area but once the court decision is made, he would ask about the future of affordable rental housing if aging buildings are too costly to maintain. He supported providing direction to staff to obtain answers to the City Council's questions and gather additional information before drafting ordinance language. 09/25/17 -4- Councilmember Ryan stated the focus of the discussion could be viewed through two questions, the first being what are the civil rights issues and whether people are being discriminated against by landlords who refuse to accept Section 8 and/or just cause eviction. The other aspect relates to economic equity, which is complex, but maybe by ordinance some improvements can be made that deal with the Section 8 issue or some aspects of just cause eviction, and whether these issues are better approached by State law or local ordinance. He asked the City Attorney to assist with understanding that aspect. Councilmember Ryan stated building owners feel they should be able to decide who they rent to but when a building is sold, depending on the objectives of the new owner, current renters may be subjected to inappropriate demands in having to requalify which, to him, raises the issue of civil discrimination. He felt if the landlord wished to not renew, that may be a different issue and present other parameters in what the City could or could not do. Councilmember Ryan stated he has reservations about this because of the potential of the City facing litigation and while he does not want to preclude the City being notified of a sale, it also deals with market conditions. Mayor Willson stated he is not worried about litigation at this point in time and is confident that information can be gathered and appropriate language crafted for an ordinance. He noted it has been ten years since the State opened the voucher system and now the State has subsequently closed the Section 8 voucher system. Also, fifteen years ago, the apartments were older, run down, and offered poor living conditions. Mayor Willson recounted that the City worked closely with those property owners and new buyers and were able to improve those living conditions through the owners doing a better job of screening and having better security. Property owners also improved the quality of building materials so they were easier to maintain. Mayor Willson stated he would not want property owners to start feeling like the City was running their business. He noted that with one apartment complex, the City filed suit because it was so poorly maintained, had hazardous living conditions, and an absentee landlord. As a result, a new landlord took over and did a good job in management, so the level of crime was reduced and it is now a better place to live. Councilmember Butler stated when this was brought to the City, it was with several other cities but it is important for the City Council to consider what is happening with its own residents and assure anything drafted is the best for Brooklyn Center. She stated why she is passionate with the requirement for just cause evictions and not discriminating solely because a renter uses Section 8 housing vouchers. Mayor Willson stated during the bus trip, other cities were also mentioned but they had no examples of other cities that have actually implemented an ordinance based on their three strategies. Councilmember Ryan agreed with Councilmember Butler that the City Council needs to consider how this affects Brooklyn Center's residents. V..i 1Jul11 1EflI1 II 1L [S]Iiiik1 I] NhWI i] 2DWI I]Ilk,1IJ 'A!i I I :r i nuii ii 09/25/17 -5- Mayor Willson closed the Study Session at 6:45 p.m. I U !EI1iI'i aii DLI IU IY&1 DI'fi IS] Councilmember Ryan moved and Councilmember Butler seconded to reconvene the Study Session at 6:46 p.m. Motion passed unanimously. AFFORDABLE HOUSING POLICIES (continued) Councilmember Ryan stated again his interest in addressing just cause eviction and economic equity issues. He asked what is within the City's means to address the strategies and stated he is skeptical with addressing a regional lack of affordable housing through a local effort. He noted that while there is a lack of affordable housing in the Twin Cities, a lot of Brooklyn Center's housing is already ranked as affordable. He stated at 30% area median income (AMI), the rents would have to be extremely low and in his preliminary investigation of the Metropolitan Council's website, it comes out to hundreds of dollars in what is affordable with a household at 30% AMI when compared to the local market. Councilmember Ryan stated he does not know how the City expects to bridge that. It is a region- wide shortage of affordable housing, and he thinks it should be addressed through significant State and Federal resources. Councilmember Ryan stated the most appropriate response to a regional shortage of affordable housing is to avoid concentration of poverty in central cities and first-tier suburbs. He stated that is the housing complaint directed at HUD and Met Council policies that Brooklyn Center entered jointly with the cities of Richfield and Brooklyn Park and that goes to furthering integration. His concern with going along with a local regulation is that it would do something contrary to that worthy pursuit of not furthering the concentration of poverty in first-tier suburbs. Mayor Willson stated on behalf of the City, he is working with the Blue Line transportation for Brooklyn Center residents and along with that, are jobs in the north part of Brooklyn Park. He noted the City does not have the land mass to bring in a lot of jobs, but Brooklyn Park does so it benefits Brooklyn Center and makes the Blue Line important. Mayor Willson stated there are concentrations of poverty, and the City should do something to raise the economic level of those in the City living in poverty. He noted that giving someone a job helps for a time, but teaching a job skill is the route the City should go. Mayor Willson described the work of the Brooklyn Bridge Alliance to get companies on board for that very reason. Mayor Willson stated the minimum annual wage is $59,000 and Brooklyn Center is at $33,000, a significant difference in his opinion. He commented that looking at one small portion does not suit the City as well because running a City is complex. Mayor Willson stated he would love to improve the City's economic climate, noting some workers are not making a living at the current minimum wage and some are also living on social security. 09/25/17 -6- Mr. Boganey stated he has a good sense of the data points the City Council would like researched and staff will confirm that information and start collecting the data for the City Council's review. Mayor Willson recommended asking the City Attorney to also look at the recent Supreme Court ruling relating to signs and comments made at a public meeting and how that type of disruption has to be allowed in public meetings. He stated it sounded like some public meetings had riotous conditions when work cannot be completed, and asked whether that may have to be the norm. City Attorney Gilchrist stated he is familiar with that legal case as it invalidated the disorderly conduct ruling if it disrupted a meeting. He stated his firm will be discussing that case tomorrow and drafting a recommendation on ordinance language to avoid the problems the State Statute had. Mayor Willson asked him to also address how the chair/mayor with a gavel can rule. The City Council agreed with the Mayor Willson's recommendation. r.& ,jiii,i 11'A I h1 I Mayor Willson adjourned the meeting at 6:58 p.m. 09/25/17 -7- STATE OF MINNESOTA) COUNTY OF HENINEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1.That attached hereto is a full, true, and complete transcript of the minutes of a Study Session of the City Council of the City of Brooklyn Center held on September 25, 2017. 2.That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its October 23, 2017, Regular Session. City Clerk Mayor 09/25/17 -8-