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HomeMy WebLinkAbout2021 02-08 CCM Study 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 SESSION FEBRUARY 8, 2021 CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Mike Elliott at 6:00 p.m. The meeting was conducted via Zoom. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence - Anderson, and Dan Ryan. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Community Development Director Meg Beekman, City Clerk Barb Suciu, and City Attorney Troy Gilchrist. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Mayor Elliott asked if there were any discussion on tonight's agenda items. City Manager Curt Boganey suggested that Item 6c be moved to Item I Oa due to a Councilmember having a potential conflict of interest. Mayor Elliott agreed and moved item 6c to 10a under Council Consideration items. -None MISCELLANEOUS DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING ALLOCATION DISCUSSION Ms. Beekman stated an estimated $258,000 in CDBG funding will be allocated to Brooklyn Center. In 2020, the City funded the Housing Rehab Program and Down Payment Assistance with CDBG funds. A total of $100,000 was allocated toward the Home Buyer Assistance in 2020. Two down payment loans were closed, with low numbers attributed to the pandemic and a lower number of homes available on the market. The current Housing Study will help determine how these funds should be used. The funding can be rolled over, and the program can be adjusted, and funds reallocated as necessary to support similar but more effective goals. 02/08/21 -1- Ms. Beekman reviewed other potential uses for the funding that have been reviewed with County representatives, including scattered site acquisition/rehab, which could have a limited reach; and small business entrepreneur funding to support job creation, although extensive reporting is required. The County felt that EDA funds would be a better source for entrepreneurial support. Other options for funding include infrastructure improvements, which triggers Federal fair wage standards. Ms. Beekman stated the down payment assistance program could be modified to increase use, by removing the residency requirement but still giving priority to residents; and increasing the maximum assistance amount from $7,500 to $10,000. At a recent Work Session, the City Council suggested modifying the program to include residents who are not first-time home buyers, for which there is no County requirement; and potentially expanding the program to include families of students who attend Brooklyn Center schools. Ms. Beekman stated City Staff recommends moving forward with the same allocations as last year, to fund existing programs, and additional needs may be identified through the Housing Study. She requested City Council input regarding whether there are other program areas that City Staff should research, and whether there is City Council support for a Resolution approving the recommended allocations to be reviewed at the February 22, 2021 meeting, at which a Public Hearing is scheduled. Mayor Elliott asked whether the down payment assistance could be extended to business owners. Ms. Beekman stated the City has the authority to determine eligibility criteria. She added City Staff can look into it. Mayor Elliott stated he supports using the funding for business owners to purchase businesses in Brooklyn Center, and non-resident families of current Brooklyn Center students to purchase homes. He added he would not be in support of expanding it broadly beyond that. He stressed the importance of focusing efforts on who we want to help and providing access to this funding source to people who have not historically had access to home ownership. He noted information on the program should be translated into multiple languages and distributed to apartment complexes. Councilmember Butler asked what happens to the funds that do not get spent, since the program has been moving slowly. Ms. Beekman stated excess funds remain in the program and can be reallocated to other programs, but the County wants to see them allocated and spent. She noted, for the time being, the County is fine with rolling over the funds to the next program year. Councilmember Butler stated she would like to keep the program as it is. She added she supports the two programs that are currently being funded. Mayor Elliott asked whether Councilmember Butler would support expanding eligibility to include families of Brooklyn Center students and small businesses owners. Councilmember Butler stated that is fine if they are buying in Brooklyn Center. Council Member Ryan stated, going way back, there has never been enough funding for these worthy purposes. He added he agrees with other members that the home buying program and 02/08/21 -2- home rehab program are very good and worthy programs. He added, however, there has been limited use of the down payment program, and over 114 residents currently on the wait list for the rehab program. He noted perhaps the City Council should consider shifting more resources to the rehab program, to help more people. He noted the City will be better able to address these issues when the Housing Study is completed. Councilmember Ryan asked Ms. Beekman for clarification regarding income restrictions for the down payment program. Ms. Beekman stated the program is restricted to incomes that are 80% Area Median Income or less. Councilmember Ryan stated the minimum income requirement ensures that the down payment program is allocated to residents who can sustain a mortgage. He added reasonable income restrictions should provide eligibility for whoever would want to apply, including the additional people that have been mentioned. Councilmember Graves stated she is not opposed to expanding down payment assistance to include school families and potentially small businesses, as they would still need to meet income requirements. She added she is also not opposed to adding more funding to the rehab program. She noted the Housing Study will provide a review. Councilmember Lawrence -Anderson stated she supports opening the program up to families of students in the School District and employees. She added there is a great need for the home rehab program. She noted this could be a pilot year to determine whether to continue allocating funds for loan assistance, and whether more funding should be allocated to home rehab. Mayor Elliott asked who is the City Staff contact person for these programs. Ms. Beekman stated the contact person is Deputy Community Development Director Jesse Anderson. Mayor Elliott asked whether there are any comments from community members. Matt Branch stated this is a great topic, as he has a friend who bought a house in Brooklyn Center 2 weeks ago, and she struggled to find information on the down payment assistance program, and could not contact anyone, so ended up going a different route. He added there needs to be more education and public awareness around this program. Zarita Hester stated it seems like it is difficult to find information about this program, which is probably why there are not many applications. She added the City should use a targeted approach, so people know the funds are available. Alfreda Daniels asked whether there is someone at City Hall that people can call to ask questions about the program. She asked whether there is a loan requirement that people must take a class, especially first-time home buyers, as education is very important for people to know how to keep their home. She asked whether the program extends to people with convictions. 02/08/21 -3- Ms. Beekman stated there is no requirement for people to take a class, and that is an excellent idea. She added the City has put on quarterly home buyer classes, and the funding program is advertised at those classes. She noted there is no background check associated with these funding programs. Mayor Elliott asked whether citizenship is an eligibility requirement. Ms. Beekman stated she is not aware of a U.S. citizenship requirement, but she agreed to find out. She added that requirement has not been added by the City. Ms. Hester asked what has been done so far to educate the community about the program. Ms. Beekman stated the programs are advertised on the City website, and they have been added to the City newsletter. A city-wide mailing was sent to all rental units within Brooklyn Center, with an informational brochure, list of community resources and tenant rights, and an advertisement for the program. Rental inspectors carry informational brochures when they are conducting inspections and talking to residents, and they can provide information on a variety of resources, including this program. Mayor Elliott asked how many people it would take to expend the funds. Ms. Beekman stated the individual amount is capped at $7,500 but could be increased to $10,000. There is approximately $135,000 in the fund, with an additional $100,000 to be allocated, so that would support funding for 25-30 households. Alfreda Daniels asked whether this is an annually funded program. Ms. Beekman stated CDBG funds are allocated annually, and the City Council determines how they will be allocated. She added this is the third year of the program. Ms. Daniels stated, when she bought her home, she was told this was a grant, but it is really a loan. Ms. Beekman stated it is a forgivable loan over a 5-year period with no interest, that becomes a grant after a resident stays in the home for 5 years. Mayor Elliott asked whether the home has to be homesteaded. Ms. Beekman confirmed this, adding the home must be occupied by the owner. If the home is sold before the end of the 5-year period, the homeowner would need to pay back whatever amount of the loan is left on the term. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Mayor Elliott closed the Study Session at 6:50 p.m. 02/08/21 -4- STATE OF MINNESOTA) COUNTY OF HENNEPIN) 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 February 8, 2021. 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 March 8, 2021, Regular Session. kwllxll6vt� City Clerk s AL e2 ; i Mayor 02/08/21 -5-